Best Buy Failure in China (International Business) Essay

In the world today, there are many companies getting involved in international business, and developing to become a multinational company. Why do these firms want to take the multinational route? One of the dominant frameworks to explain the existence of these multinational companies is the Ownership-Location-Internalisation (OLI) paradigm (Dunning & Lundan 2008). Running an international business is different from running a domestic business. International business requires you to recognise and understand the cultural differences between countries. Failing to recognise and understand this difference could possibly lead to many difficulties, or worse still, failure. In this essay, I will be discussing the difficulties that Best Buy Co. Inc. faced, and its eventual failure due to the lack of understanding of the cultural differences in its host country, China. The rise of China has matured into hope for the entire consumer electronics industry. The country’s 1.3 billion consumers and their fast increasing buying power have transformed China into the world’s largest consumer electronics market, a market opportunity that multinational giants cannot afford to neglect (Chen & He 2005). As such, Best Buy was just one of the many multinational companies that tried to enter the Chinese market. Best Buy Co. Inc. Best Buy is a multinational retailer of consumer electronics from the United States and operates in the United Kingdom, Canada, Turkey, Mexico, China as well as its home country. Started as the Sound of Music in 1966 as an audio specialty store by Richard M. Schulze, it was later changed to Best Buy Co., Inc. by the board of directors in 1983 and is now the leading consumer electronics retailer in the United States (Pederson 2004). Best Buy sells consumer electronics as well as a wide selection of related merchandise such as music, mobile phones, computers, computer software, DVDs, Blu-ray discs, video games, digital cameras, video cameras as well as home appliances. The multinational used a two-track approach to enter the Chinese market. The consumer electronics giant first opened a sourcing office in Shanghai in 2005 and began its efforts to expand into the Chinese market in May 2006 by foreign acquisition. The multinational invested $108 million to obtain a majority stake in China’s fourth largest consumer electronics retailer, Jiangsu Five Star Appliance (Bloomberg 2006). Soon after in December 2006, the company used the greenfield mode of entry and opened its first â€Å"Best Buy† store that followed their own US business model, in Shanghai’s busy Xujiahui shopping district. By imposing a US business model, Best Buy intended to convince fastidious Chinese customers with helpful and dependable service in clean, pleasant outlets. The chairman and general manager of Best Buy China, Lu Weiming declared that they were confident with the store model they had, which will differentiate them from competitors and consequently help them win the consumers’ heart (Kurtenbach 2006). The company later opened another eight stores, which increased the total number of â€Å"Best Buy† stores in China to nine. Problem Identification According to the China Daily on March 21, 2011, Jiangsu Five Star Appliance continued to expand. However, Best Buy’s expansion was slow and was not running as smoothly as anticipated. â€Å"The multinational brought in a Western business model and it failed to sufficiently attract the Chinese clients and customers,† said Chen Can, a senior analyst from Analysys International (China Daily 2011). Best Buy’s business model in the US, where the brand markets itself as delivering a better service than competitors, did not go well in China. After being in the Chinese market for five years, the company only managed to open nine stores, capturing less than one per cent of the Chinese market as according to analysts. Failing to catch on in the Asian country, the company decided in February, 2011, to close its headquarters along with all its nine stores (Birchall, Strauss & Waldmeir 2011). Causes of the problem Even though the company opened a sourcing office in 2005, the multinational still had a lot to learn about the Chinese and the way they did business. â€Å"The lesson we learned is that we got too far ahead of the Chinese consumer in how business is done in China,† said Brian Dunn, Best Buy’s Chief Executive (Groth 2011). He said the company’s mistake had been to open big box stores with fixed prices that were staffed entirely by Best Buy’s blue-shirted employees (Jopson & Waldmeir 2011). Clearly, Best Buy entered the Chinese market in 2006 with a lack of knowledge of the local consumer’s culture. International strategy is a strategy where the firm uses the core competency, which it developed at home, as its main competitive weapon in the foreign market (Sumantra & Nitin 1993). This is the strategy which Best Buy used. The company did not enter China with the intention to hire local talent who knew how to be successful in China. Rather, it entered the country intending to create talent that knew how to be successful in the United States (Adam 2011). When the multinational first entered the Chinese market, many people hoped that it would successfully replace the prevailing, yet widely criticised Chinese business model that focused on price-centred competition (Ni 2011). Imposing their core competency in the US model, the company offered â€Å"a concept ahead of the consumer,† said retail analyst Paul French of Access Asia which was based in Shanghai (Macleod 2011). Best Buy provides a premium shopping experience for its consumers, to which the Chinese consumers were ultimately not willing to pay for (Jopson 2011). Consumers in China are generally different from consumers in the United States. Wei and Salil (2010) stated that the Chinese consumers have a higher cognitive age perception, lower levels of physical health status and lower life satisfaction levels as compared to their American counterparts. Eastman et. al. (1997) conducted a study and found that there were statistically significant differences between the two, such that Chinese consumers were more materialistic than those in the United States. Eastman’s research was later backed up by Schmitt’s (1999) studies. In addition, Schmitt found that the Chinese consumers were more brand conscious and would go shopping with brands as a key influencing factor. The cross-cultural study above is just one of the reasons as to why Best Buy failed to attract consumers in China. For instance, the company’s store in China generally divides up electronics and other large-ticket items by category (Birchall, Strauss & Waldmeir 2011). However, the Chinese are inclined to put more faith in brand names than consumers in the US do. Due to this reliance on brands as a deciding factor, the Chinese consumer would generally prefer items in the store to be categorised according to their make rather than function. Another cause of the company’s failure in attracting Chinese customers lies in the fact that all sales staff in the store were the company’s direct employees who donned the ubiquitous blue Best Buy uniform. This was a stark difference to the scene in typical Chinese outlets, where consumers were accustomed to subsections of electronics stores being manned by the manufacturer’s own employees, who were also able to offer specialist knowledge (Jopson 2011). At the same time, Best Buy’s market research showed that Chinese consumers liked to try out new products. While this was true, what eventually happened was that the Chinese shoppers would first go to Best Buy to try out products, before promptly marching across the street to one of the other Chinese retailers and buying the said product for less (Adam 2011). This was partly due to the pricing in Best Buy stores, which was based on a fixed-price policy (Jopson 2011) and only served to push the Chinese consumer even further away. As stated by Montlake (2006), bargaining is a way of life in China. Chinese consumers like bargaining and they are used to negotiating with the salesperson to get a discount, which was not an option in Best Buy. Not only is bargaining not an option, the prices at Best Buy were also set at a premium as it followed the company’s US model of offering high-quality service and a better shopping experience to consumers, such as the opportunity to try products before making a purchase. However, that did not seem to suit the immature Chinese market very well (Ni 2011). Purchasing decisions made by Chinese consumers are determined by price and not service (Birchall, Strauss & Waldmeir 2011). At the same time, Chinese consumers had the perception that Gome and Suning, two of Best Buy’s biggest competitors, were able to under cut Best Buy’s prices significantly (Adam 2011). Chinese consumers care more about price than service (D’Altorio 2011). The Chinese do not penny-pinch and save because they like to, but because they have to. They voluntarily tax themselves so as to protect against the absence of a welfare safety net. If a Chinese consumer gets old, he will need that money to survive, since state pensions remain inadequate. As his parents age, he will need to support his elders, especially since he is likely to be their only child, a result of the country’s one child policy. This reality is what perpetuates and engenders the low-cost, bargain basement Chinese retail environment (French 2007). To top it off, Best Buy’s choice of a Chinese name left many consumers pondering over its decision. A country steeped in traditions and superstitions, many Chinese consumers commented that the company’s Chinese name, â€Å"Bai Si Mai†, was a bad one as it literally meant â€Å"to buy after thinking 100 times† (Ni 2011). Overall, the company’s business model, like its Chinese name, showed a lack of understanding for the Chinese culture. It tried too hard to educate Chinese consumers about high-end service value when lower prices were typically the only value that motivated them to make quick decisions. The consumer electronics giant’s overconfidence in transforming the Chinese consumer philosophy finally hurt its performance in the Chinese market. Maintaining only a small market presence in China, Best Buy not only failed to please its consumers, but its suppliers too, who did not receive many orders from the company (Ni 2011). Proposed Solutions There are huge cross-cultural differences between the US and China. Therefore, one change I will make if I was Best Buy is to take up a multi-domestic strategy instead of the international strategy adopted by the company. Multi-domestic strategies involve a high degree of customisation to the local market place (Hout, Porter & Rudden 1982). This is important, noting the huge cultural gap between the China and the US. Hill, Hwang and Chan (1990) also stated that a multi-domestic strategy is based on the belief that national markets differ widely with regard to consumer preferences and taste, competitive conditions, operating conditions and social structures. According to organisational capabilities theory, in order to leverage its competitive advantages in the foreign market, an enterprise must understand its business environments and adapt its operation modes to the host country (Xu, Hu & Fan 2011). This is also in line with the multi-domestic strategy, to which Anne-Wil (2002) has highlighted the need of multi-domestic companies to deal with markets where products tailored to local circumstances are required; and to be able to do so, companies need to be well aware of the local market and be well-integrated into it. This can be easier achieved by acquiring an existing company that possesses a knowledgeable work force and good connections in the local market. As such, the mode of entry decided upon by a multinational is a critical and strategic decision. To support the multi-domestic strategy and aligning with conditions in China, I will still first enter the Chinese market using foreign acquisition. Foreign acquisition involves having to invest in a local firm and in this case, I will be investing in Jiangsu Five Star Appliance. Acquiring Jiangsu Five Star Appliance will create access to local resources as well as knowledge of the Chinese retail environment within a much shorter span of time (Cristina & Garcia-Canal 2004). Acquisition is also a more effective way of exploiting foreign resources and markets as compared to joint ventures or licensing, as supported by the transaction cost theory (Hennart 2010). Tapping on the knowledge and expertise of Jiangsu Five Star Appliance, I will then use the greenfield method, which is the setting up of a new company legally independent from parents, to set up a Best Buy store in China (Cristina & Garcia-Canal 2004). By using a multi-domestic strategy, the management seen in the greenfield approach will be more similar to that of acquisitions (Anne-Wil 2002). The consequent Best Buy outlets will then be managed and accustomed to the Chinese market. For instance, as most Chinese consumers shop by brands, the store will therefore be segregated by brands rather than product category. Sections of the store will also be rented out to brand manufacturers and their designated areas will be staffed with their own sales team, so that consumers can receive specialised knowledge as well as bargain for a lower price. The store will not be carpeted or provide services like allowing consumers to test out the product before purchase. This is to prevent the Chinese consumers from having the perception that the store is pricier as compared to competitors, especially since China is a highly price-conscious market. As French (2007) aptly stated, â€Å"win on price and you win, period†. It is therefore of utmost importance to have a lower price as compared to competitors. In order to provide lower prices, I will acquire the real estate, instead of renting or leasing the property like my two biggest competitors Gome and Suning do. This will provide me with a great advantage as I can lower rental prices for the manufacturers, who can then pass the accumulated savings down to the Chinese consumers. Noting the Chinese aversion to inauspicious names, I will also conduct sufficient research and preparation into choosing a Chinese name for the store before its opening. Instead of using a direct sound conversion of the brand name like â€Å"Bai Si Mai†, I will translate the brand name by meaning instead, such as â€Å"Zui Hao Mai†. This literally means â€Å"best buy†, and doubles up as a call that encourages consumers not to miss out on a deal. Conclusion In conclusion, China is a huge and growing market with tonnes of opportunities that multinationals cannot afford to neglect. However, there is a huge cultural divide between China and countries from the west like the United States. Entering the Chinese market will require multinationals to recognise and understand the cultural difference between their homeland and the Chinese market. Best Buy failed in China due to a lack of knowledge and understanding of cross-cultural differences. Although the company chose the correct mode of entry by first using foreign acquisition followed by the greenfield approach, it failed because it adopted an international strategy thinking that Chinese consumers will welcome the same offerings that reflect its core competency in the US — value-added service. Thinking it could import its success in the US to China by focusing on the same areas, Best Buy’s targeted service approach failed to take off in a climate governed by financial sensitivity. While focusing on providing consumers with a great shopping experience, the company failed to consider a fundamental portion of the retail environment — price, which affects Chinese consumers much more than service. To improve on this situation, I would first enter the Chinese market through foreign acquisition, so that I may gain access to knowledge about the culture in China before starting on the greenfield route. However, instead of using an international strategy, I will opt for the multi-domestic strategy by adapting my operations towards the needs of Chinese consumers. This would circumvent the issues that led to the company’s downfall in China. Due to the country’s rich traditions, its people are habitual and tend to shy away from the unfamiliar. Should Best Buy have chosen to use a multi-domestic strategy, it would have realised the need to customise its offerings in accordance to local tastes and might have gone on to capture a larger share of China’s consumer electronics market. Reference List Adam, M. 2011, ‘Bye-Bye, Best Buy (China): You had it coming’, Adam Minter of Shanghai Scrap, 22 February, Viewed 22 August 2012, Anne-Wil, H. 2002, â€Å"Acquisitions versus Greenfield investments: International strategy and management of entry modes†, Strategic Management Journal, vol. 23, no. 3, pp. 211-227. Birchall, J., Strauss, D. & Waldmeir, P. 2011, Best Buy brand shuts up shop in China and Turkey, London (UK), United Kingdom, London (UK). Bloomberg 2006, Best Buy chain on road to China, Tulsa, Okla., Tulsa, Okla. Chen, X. & He, Z. 2005, ‘Understanding the Structure of China’s Consumer Electronics Market: An Empirical Investigation of Its Consumer Segments’, Multinational Business Review, vol. 13, no. 2, pp. 43-61, viewed 15 August 2012, Proquest database. China Daily 2011, ‘Best Buy seeks the best way to survive’, China Daily, 21 March, (Business section), Viewed 20 August 2012, Cristina, L.D. & Garcia-Canal, E. 2004, â€Å"The Choice Between Joint Ventures and Acquisitions in Foreign Direct Investments: The Role of Partial Acquisitions and Accrued Experience†, Thunderbird International Business Review, vol. 46, no. 1, pp. 39-58. D’Altorio, T. 2011, ‘How the Chinese Consumer Defeated Best Buy’, Investment U Research, 10 March, Viewed 22 August 2012, Reference List Dunning, J.H. & Lundan, S.M. 2008, â€Å"Institutions and the OLI paradigm of the multinational enterprise†, Asia Pacific Journal of Management, vol. 25, no. 4, pp. 573-593. Eastman, J.K., Fredenberger, B., Campbell, D. & Calvert, S., ‘The Relationship Between Status Consumption and Materialism: A Cross-Cultural Comparison Of Chinese, Mexican, And American Students.’, Journal of Marketing Theory & Practice, Winter97, vol. 5, no. 1, pp. 52. French, P. 2007, ‘When the Best Buy Is No Buy’, The Wall Street Journal Asia, 07 August, United States, Hong Kong. Groth, A. 2011, ‘Why Best Buy’s Overseas Strategy is Failing’, Business Insider, 04 November, Viewed 22 August 2012. . Hennart, J. 2010, â€Å"Transaction Cost Theory and International Business†, Journal of Retailing, vol. 86, no. 3, pp. 257-269. Hill, C.W., Hwang, P. & Chan, K.W. 1990, â€Å"An Eclectic Theory of the Choice of International Entry Mode†, Strategic Management Journal (1986-1998), vol. 11, no. 2, pp. 117-117. Hout, T., Porter, M. E., Rudden, E. 1982, ‘How Global Companies Win Out’, Harvard Business Review, viewed 25 August 2012, . Jopson, B. 2011, ‘Best Buy seeks ways to return brand to China’, FT.com Jopson, B. & Waldmeir, P., 2011, Best Buy seeks ways to return brand to China, London (UK), United Kingdom, London (UK) Reference List Kurtenbach, E. 2006, Best Buy opens store in China — Top U.S. electronics retailer to offer wide array, better service, Memphis, Tenn., United States, Memphis, Tenn. MacLeod, C. 2011, Best Buy, Home Depot find China market a tough sell, McLean, Va., United States, McLean, Va. Montlake S. 2006, ‘China’s newest shopping craze: ‘team buying’ ; More and more consumers meet online before banding together at stores to bargain down prices’, The Christian Science Monitor, Boston, Mass., United States. Ni, V. 2011, Best Buy’s Withdrawal: American Morals Fail to Transcend Chinese Consumer Market, Asia Briefing Ltd., viewed 20 August 201. < http://www.china-briefing.com/news/2011/03/02/best-buys-withdrawal-american-morals-fail-to-transcend-chinese-consumer-market.html>. Pederson, J.P. 2004, International directory of company histories, St. James Press. Schmitt, B. H. 1999, ‘Consumer Segmentation in China’, In Marketing Issues in Transitional Economies, Rajeev Batra eds. Norwood, MA: Kluwer Academic Publishers. Sumantra, G. & Nitin, N., ‘Horses for courses: Organizational forms for multicultural corporations’, Sloan Management Review, pp. 27, 31. Wei, Y. & Salil, T., 2010, ‘Materialism of Mature Consumers in China and USA: A Cross-Cultural Study’, Journal of International Business and Cultural Studies, vol. 2, pp. 1-14, viewed 15 August 2012, ProQuest Central. Xu, Y., Hu, S. & Fan, X. 2011, â€Å"Entry mode choice of Chinese enterprises: The impacts of country risk, cultural distance and their interactions†, Frontiers of Business Research in China, vol. 5, no. 1, pp. 63-78.

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Quantative problem solving - Essay Example On the other hand, Carol recommends the Exer-Trim program of the XYZ Fitness Club which offers a daily pass and use of gym and other health facilities worth $2.56 inclusive of supplements at a fixed annual cost of $307. As a challenge to herself, Tanya has to decide on the option that would enable her to lose weight and save money on the first 60 days prior to their out-of-the-country vacation. A. Analyze the cost of each option algebraically – Each cost equation may be written in the slope-intercept form y = mx + b, Assuming that the value of the daily set meal under the U-Light program is not subject to change, then Tanya would have to pay a constant rate of $5.13 if she chooses to diet without workout and agree to cover the $145-annual fee. Hence, the cost of enrolment for the U-Light package may be set, depending on the number of days (t) signed up for, as: C(t) = 5.13*t + 145 (in which the slope (m) is the rate $5.13 charge per day and the y-intercept (b) assumes the fixe d cost of $145 (on a yearly basis)). Considering the Exer-Trim program, nevertheless, Tanya has the alternative of visiting the XYZ club for an extensive workout that can make her thoroughly fit even in the absence of restricting diet on food. She just needs to pay a uniform daily rate of $2.56 that comes with fixed settlement of $307 for supplementary items such that, depending also on the number of days (t) enrolled for, it would cost her: C(t) = 2.56*t + 307 (in which the slope (m) is the rate $2.56 charge per day and the y-intercept (b) is given by the fixed cost of $307 (on a yearly basis)) C(t) stands for ‘cost in dollars’ whereas ‘t’ represents the number of days (diet and exercise) and to find solution where the values of C(t) and t are the same for both schemes, equate 5.13*t + 145 = 2.56*t + 307 which becomes 2.57*t = 162 (on combining like terms) ---? t ? 63.035 days (upon division of each side by 2.57) Then, substituting this value of ‘tâ €™ into one of the original equations: C(63.035) = 5.13*(63.035) + 145 ---? C(63.035) ? $468.37 This means that the solution is approximately at: B. Depict the real-world problem on a single graph – Sketch of the Graph: Total Workout or Diet Meal Cost (per package) C(t) t-days (diet or exercise) C. Discuss a decision-making process that is based on both mathematical reasoning and non-financial, or situational, considerations. After solving the system of equations and sketching each linear graph on the xy-plane, Tanya can now decide according to the following outcomes: At t > 63.035 days, it would cost Tanya too much to go on a south beach diet with U-Light program whereas at t < 63.035 days, it is rather expensive to go after extensive workout with Exer-Trim program. Since Tanya’s priority is to save money for the first 60 days of her weight loss scheme, she must then opt for the U-Light program and go on south beach diet that merely includes one pass to the gym. T he graph shows that she can save more for the Bali-getaway if she agrees to pay $5.13 a day for a south beach diet meal with fixed annual service charge of $145. In that case, she would

Discription Essay Example | Topics and Well Written Essays - 500 words - 1

Discription - Essay Example The pumping of the heart is controlled by the Sino atrial (SA) node that is located in the posterior wall of the right atrium(Heart 1995). 2. The valves: there are two types of valves the Atrioventricular valves (located in the middle of the heart between the ventricle and the atria) of two types the tricuspid on the right and mitral/cuspid on the left and the Semilunar valves of two types pulmonary and the aortic valve. The functions of the valve is too prevent the backflow of blood to the chambers. 3. The vessels: There are four main vessels in the heart; the vena cava divided into superior and inferior, the pulmonary artery, the pulmonary vein and the aorta. The functions of veins is to covey blood from and to the heart. The heart is divided into four chambers: the top two chambers are known as the atriums and the bottom two chambers are called ventricles. Importantly, the atriums both contract at the same time same as the two ventricles(Heart 1995). First and foremost, deoxygenated blood enters the heart via the superior and the inferior vena cava into the right atrium. The right atrium contracts and forces the blood to rush into the right ventricle through the tricuspid valve. Consequently, when the right ventricle contracts, the deoxygenated blood is pumped into both lungs through the pulmonary arterypast the semi lunar valves(Heart 1995). The process continuesas the blood is returned from the lungs via the pulmonary veins wherethe oxygenated blood is delivered to the left atrium. When the atrium contracts the blood is rushed through the valves into the left ventricle, thestrongest and most muscular portion of the heart.When the left ventricle contracts, blood is rushed through the aort a: he aorta is the main artery leaving the heart (Lewis 1925). Through this process, oxygenated blood is now taken throughout

Product Design in Cyberspace Case Study Example | Topics and Well Written Essays - 500 words

Product Design in Cyberspace - Case Study Example Games are being made on subjects that include but are not limited to sex, rape, murder, robbery, fight, theft, insult and humiliation. This paper discusses whether or not video game designers should make games that are too violent for innocent minds. It has been observed that children who have a habit or liking for playing games spend a major portion of their day playing them. This can fundamentally be attributed to the task oriented nature of the games. A vast majority of games are about striving to achieve a certain goal. Having achieved which, the player is taken to the next level. Unless all the levels are cleared, the player would keep struggling hard. The complex plots require the children to put in their maximum effort. In an attempt to conceive the game strategy and achieve the goal, children tend to memorize the plot of the game and in their subconscious, they tend to approve all that is conveyed to them through the game. This can be estimated from the fact that the abbrevia ted language children use to communicate with one another in the virtual world reflects in the speech they deliver in the real world as well. However, this is only one aspect in which the children are affected that most of us are aware of simply because it is so obvious. There are more harsh realities that many of us do not know because they do not show up as obviously as language does.

Corporate Strategy Essay Example | Topics and Well Written Essays - 250 words

Corporate Strategy - Essay Example The announcement of the merger led to a fall in the stock price of Bank of America, while an increase in the stock price of Merrill Lynch. Interestingly, an acquisition would lead to a halt in the 94 year old independence of Merrill Lynch and on the other hand Bank of America would pass the largest bank, namely Citigroup in their asset size. (www.uk.reuters.com) Moreover this strategic acquisition of Merrill Lynch would also give the Bank a dominant position in the arena of wealth management as well as give the largest retail brokerage. (www.uk.reuters.com) Top officials claimed that with the acquisition, the company would reach a position which it would ideally take ten years to reach. One of the biggest roadblocks which Bank of America faced was that it bagged a huge amount of loss which Merrill Lynch had in its kitty. Apart from that while their retail brokerage would prove to be immensely profitable, the position could be a bit difficult where financial services companies were co ncerned. The acquisition was completed in the year 2009. The acquisition of both the companies has led to several constructive results as their synergies came together. In 2010, the bank saw the highest revenues in comparison to any other investment bank in the areas of asset backed securities and leveraged loans.

Obamacare, Patient Protection and Affordable Care Act Essay

Obamacare, Patient Protection and Affordable Care Act - Essay Example One of the benefits accruing from the Act is with regards to the fact that it offers an extension of Medicaid’s eligibility in 26 states for up to 138% for the poverty level in the federal hence making it possible for most of Americans to have access to health care. Whether a citizen gets a health insurance coverage for themselves or whether it is done by their employees, the Act abolishes actions that leave citizens without insurance covers when they need them the most. No person gets left out based on their gender or even color. No canceling of policies Unlike before, an insurer cannot come forward and cancel a policy the moment one falls sick on claims that one had made a mistake when taking out the policy. The act of canceling is what is referred to a recession. If an applicant made an honest mistake while taking out the policy, their policy cannot, later on, be canceled on that very ground the instance they fall ill. Appeals When someone feels aggrieved by a decision that an insurance company has reached regarding their policy, they have a right to go ahead and apply for an appeal. The applicant makes the said appeal to a neutral or rather an independent reviewer who checks into their application and delivers a sound verdict in that regard. The response given by the independent reviewer is delivered within 72 hours when the medical condition is urgent in nature. No limited insurances Treatment for some illnesses can consume a lot of time and finances hence accumulating big medical bills.

The Influence of Information Literacy on Scholarship, Practice, and Leadership Essay Example for Free

The Influence of Information Literacy on Scholarship, Practice, and Leadership Essay Information Literacy is a crucial portion of the scholarship, practice, and leadership model. Information Literacy that is utilized in a clinical setting by Physicians, Physician Assistants, and Nursing staff help to determine the type of care that is provided to patients. â€Å"Information competence is a basis for long-life learning competence and is necessary in any way of learning† (Tursheva, 2009, p. 127). As a scholar, practitioner, and leader, one must possess the knowledge and the ability to access various types of information. At the VA Hospital medical staff must all be knowledgeable of software that allows them to access the numerous amounts of patient data the assists them daily in performing their medical duties. Access to the internet or taking a trip to the local library is an everyday occurrence in the life of a medical student. Because of their career choice, they are constantly on a quest for new and vital information. We live in an information society. All individuals have the opportunity to enhance their way of thinking and change their lives personally or professionally. â€Å"Often information competence is defined as a skill of searching, evaluating, using, and distributing all kinds of information, which is developed during our whole life† (Tursheva, 2009, p. 127). Throughout hospitals in today’s society, there are medical libraries and journals available for medical students to use to broaden their knowledge as it relates to providing the proper treatment for their patients. Medical students serve as scholars. They continue to look for new and improved ways to enhance their knowledge in the medical field. The information they obtain is crucial for their development. Information literacy must continue throughout their careers. â€Å"Information literacy is not remedial, it is foundational† (Badke, 2009, p. 49). See more: how to write a scholarship essay for study abroad In a clinical setting, medical information changes on a daily basis. Physicians serve as practitioners in the medical community. They provide key information to medical students, residents, as well as nursing staff that help with their growth and development. Simons, Morgan, and Davidson (2012) stated, â€Å"in order for physicians to practice medicine successfully and become learners for life, they need to know how to search and manage the medical information they discover within their patient-centered context.† As a practitioner, physicians understand that these skills are necessary in order for their medical students and other medical staff becomes experts in their chosen field. As a scholar and leader in the area of medicine, it is imperative to understand how to work as a team to provide the best possible care to patients. â€Å"Educators are responding to complexities of today’s medical knowledge by developing educational programs based on current learning theories, such as enactivism, where learning takes place within teams that are actively engaged in clinical environments† (Davidson, Morgan, Simons, 2012, p. 291). This results in more patients that can place their trust in physicians and nurses who know how to work together as a team. Leaders provide an opportunity for students to grow. Upon entering college medical students are unaware of the importance of information literacy. They fail to understand the purpose that it will serve in their everyday lives. According to Russell (2009), â€Å"today’s students don’t have a clear understanding of what it means to obtain scholarly information that is useful† (p. 92). Staff physicians at the VA Hospital serve as leaders. They are solely responsible for the medical knowledge they provide medical students and residents. Because medical information is constantly changing, as leaders, they have to be prepared to adapt. â€Å"This learning must include access to evidence-based medical literature to make informed decisions, thus making information literacy a central activity of the team responsible for the care of patients† (Davidson, Morgan, Simons, 2012, p. 291). At the VA Hospital medical literature is readily available on all of the computers as well as a plethora of other information sources for the medical residents to make the best decisions regarding patient care. Information literacy provides the opportunity to access a variety of information utilizing different sources. This information provides needed knowledge to support ideas. Information literacy skills allow the adaptation to changing environments which serves as a support tool for better decision making in everyday life.

Coal Workers Pneumoconiosis (CWP) Research Plan

Coal Workers Pneumoconiosis (CWP) Research Plan MOHAMMAD FAISAL Collection of Data A.1. What were the objectives of the study? What was the association of interest? The objectives of the study were to examine the association of the prevalence of coal workers pneumoconiosis (CWP) in the USA and different contributing factors such as level of dust exposure, mine size, low seam mining and other factors. Also the regional differences in CWP were compared. The association of interest is between CWP and various contributing factors and also between different MSHA district regions. It was a cross-sectional study. A.2. What was the primary outcome (usually a disease, health condition, or other dependent variable) of interest? Briefly explain how the outcome was measured. The primary outcomes were observed and predicted prevalence in CWP prevalence in miners who participated in this study. Attfield and Morring Exposure response model was utilized to measure the predicted prevalence in CWP and the Chi-square test was used to compare the predicted and observed prevalences in CWP in miners. Radiographs were used to determine the presence of lung parenchymal abnormalities that are consistent with pneumoconiosis obtained from CWHSP. A.3. What was the primary exposure (actual exposure such as chemical, other risk factor, or other independent variable) of interest? Briefly explain how exposure was measured. The primary exposures were level of dust exposure concentration, mine size, tenure, seam height. These data were collected from CWHSP, approved by the NIOSH Human Subjects Review Board. Coal mine dust concentration and seam height data were obtained from MSIS. A.4. What type of study was conducted (study design)? This was a cross sectional study, which was done with a large number of participants from survey data. A.5. Describe the process of subject selection.   Define the source population for this study, if possible. The study participants were 12,408 underground coal miners from the MSHA districts. Participation in this CWHSP study were voluntary and study participants were 16 years and older. Due to small number of participants and different type of coal type (anthracite rather than bituminous), MSHA district 1 participants were excluded. The source population was all the underground coal miners in MSHA districts in USA. A.6. Selection bias: What are possible sources in this study? Examples: in a case-control study, how were the study subjects included? In a cohort study, is there loss to follow-up?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The study participants (underground coal miners) in this CWHSP study were stratified by MSHA districts. Since stratified analyses are important in this study, the probability of being selected in a specific stratum might be different from another stratum and thus a selection bias might have happened. A.7. Information bias: What are some of the sources of information (measurement) error, for either the exposure or outcome measurement? Are these differential with respect to the exposure or outcome of interest? For exposure measurement, the investigators analyzed the self reported tenure in mining to derive the cumulative exposures. Also current exposures were examined for CWP which may not establish temporal relationship due to lack of allowance for lag time. A.8. Confounding: Did the authors consider potential confounders in the design of the study? The authors considered the following confounders: miner age and coal rank because the effect of respirable coal mine dust can be modified by the rank of the coal.   Ã‚  Ã‚   B. Analysis of Data B.1. What methods were used to control confounding? Were these sufficient (as far as you can tell)? As mentioned in the report the investigators incorporated all of the above mentioned covariates in their exposure-response statistical models to control for confounding. No detailed description is found about controlling the confounders. B.2. What measure of association (e.g. odds ratio, risk ratio, rate difference, etc.) was reported in the study? Was this appropriate? The authors reported the prevalence of the CWP and prevalence ratio between different MSHA district regions in this study. Since this is a survey based study, prevalence ratio is appropriate. B.3. How was the uncertainty of the measure of association (effect of random error or statistical significance) reported in this study? Are the conclusions of the study consistent with the uncertainty of the measure of association? The authors did not report 95% confidence intervals to report the uncertainty of the measure. However they reported the range of measured dust concentration level, worked hours per miners and tenure median. The prevalence ratio was statistically significant (p

Critique of Utilitarianism Theory

Critique of Utilitarianism Theory Utilitarianism as an independent ethical position only arose in the eighteenth century however fundamental utilitarian ideas can be found in the thoughts of philosophers such as Aristotle. It is a philosophical theory of morality or how one should act which has historical roots within the liberal tradition. The aim of utilitarianism is to make decisions on the basis of a calculation of consequences. As a moral theory, There are however many critiques of utilitarianism which vary as they have different reasons and different targets due to the fact utilitarianism isnt a single coherent theory but a cluster of related theories which have developed throughout the years. In this essay I will be explaining some of the problems with utilitarianism as a theory and discussing whether these problems are insurmountable, for which I think they are. As a theory, utilitarianism is usually thought to start with Jeremy Bentham, however, similar ideas were evident in the writings of David Hume in An Enquiry Concerning the Principles of Morals (1)and Francis Hutchinson, whom David Hume studied under, in his An Inquiry into the Original of Our Ideas of Beauty and Virtue (2). Utilitarianism tells us an act is moral insofar as it creates the greatest good for the greatest number. It tells us to take the amount of happiness distributed between sentient beings and look at which distribution is going to maximise the amount of happiness. It gives a systematic answer. Throughout the past two centuries utilitarianism has been very influential within practical disciplines of politics and economics. As a result, utilitarianism has had an influence modern life, particularly public policy. What could be more important when making political deliberations than aiming to make peoples lives better and less unhappy? One of the first utilitarian theorisers, Jeremy Bentham, is famously credited for being the founder of the doctrine. Bentham defined utility as instrumental to happiness. He believes that all judgements of good and bad can be based on pleasure and pain. He is seen as an advocate of psychological hedonism. In his famous introduction of An Introduction to the Principles of Morals and Legislation (1979), Bentham states Nature has placed man under the governance of two sovereign masters, pain and pleasure. Therefore, pain and pleasure provide the basis for his moral theory of what we ought to do. Initially, he began his career by studying law and then moved on to moral ethics in order to advise legislators. He was primarily interested in improving the law and his goal for the legislator was the utilitarian principle or the greatest happiness principle. Therefore, his advice was not initially aimed for individuals and their life choices but for the legislator. Although Bentham sees pleasu re as the key of explaining how human beings act, he relies more often on the concept of pain when constructing his legal theory. While he does endorse act-utilitarianism, his sanction-based theory of obligation is more applicable to the legal system he was so interested in improving. John Stuart Mill is also one of the most well-known utilitarian thinkers and defenders of the theory. His celebrated thoughts can be found in his famous essay: Utilitarianism. Mill observes something of a crisis in moral thinking. Philosophical thinkers have been unable to come to a consensus on the principle of what constitutes right and wrong. Mill argues that having such a foundation is necessary to legitimise morality. This is why the theory of utilitarianism is so important. Jeremy Bentham and John Stuart Mill categorise and measure utility and pleasure in different ways. Bentham uses the hedonic calculus which decides the value of pleasure by seven measures of quantity: duration, intensity, certainty or uncertainty, remoteness or propinquity, fecundity, extent and purity. Bentham is well-known for his treating of all pleasures as of equal value. By this he means not that all pleasures are of exactly equal, but that the legislator who his work on utilitarianism is aimed at should not be valuing one pleasure above another. John Stuart Mill however saw pleasures in two categories higher and lower pleasures. A criticism of John Stuart Mills utilitarianism, and the first problem with the theory that I shall be addressing, is his categorisation of higher and lower pleasures. The difference between these pleasures is founded on sort and not degree, therefore this makes comparison of the consequence of actions far more difficult to calculate. Higher and lower pleasures cannot be measure or compared as they are of a different kind. How would Mills version of utilitarianism be applied in situations in which bother higher and lower pleasures are involved in the calculation? In relation to John Stuart Mills classification of higher and lower pleasures, a common criticism of simple versions of the theory such as Benthams utilitarianism is that they reduce the subtleties of human life to a stark calculation of animal-like pleasures, with no concern for how these pleasures are produced. This gave utilitarianism a bad name and it was often mocked as a doctrine only worthy of swine. (philosophy of the classics, mill utilitarianism). John Stuart Mill defends utilitarianism from such criticism with his version which differs from Jeremy Benthams simple version: Mills differentiation between higher and lower pleasures puts forward that intellectual pleasures are intrinsically more valuable that physical pleasures. Bentham however treats all pleasures as equal to each other. So, when utilitarianism is described as a doctrine worthy only of swine, Mill argues that it is better to be a dissatisfied human being than a satisfied pig; and better to be a dissatisfied So crates than a satisfied fool. His defence is that human beings are capable of intellectual pleasures as well as physical ones, whereas pigs cannot enjoy intellectual pleasures. In his view, humans who have experienced intellectual pleasures will prefer them to lower, physical ones. Those who still are lead astray by lower physical ones are falling for immediate sensual gratification, even though they know full well that higher, intellectual pleasures are more worthwhile. John Stuart Mils idea of higher and lower pleasures has been viewed as flawed in itself. It has been criticised as a self-serving idea. For example, an intellectual will view his preferred enjoyments as a higher, more important pleasure. Therefore, as an intellectual, it could be argued that Mill himself is biased towards what constitutes as higher and lower pleasures. A further and harsh criticism of utilitarianism is that the theory would justify slavery. This is as long as the slaves were happy or the overall happiness gained by the beneficiaries of the slavery was calculated as than the slaves unhappiness. Bentham fiercely denies this to be the case, as he argues that the choices of human beings give the best inclination of what makes humans happy, and slavery by definition is never a choice and therefore slaves can never be said to be happy. Bentham is also well known for his application of utilitarianism as the greatest happiness for the greatest number. This can subsequently be translated to mean that utilitarianism sacrifices the unfortunate few the powerful many. Therefore it has been argued by some that regarding the slavery example mentioned previously; if the vast economic benefits of slavery outweighed the unhappiness of the slaves then slavery is still favoured by utilitarianism. Bentham argues against this however as he claims the greatest happiness for the greatest number should be applied in a way that the interest of the powerless many should be more important than the interests of the powerful few. Another fundamental criticism of utilitarianism is that it ignores justice. A classic example of this criticism was given by H. J. McCloskey McCloskey, H.J. (1957) An Examination of Restricted Utilitarianism in The Philosophical Review, Vol. 66, No. 4 (Oct., 1957), pp. 466-485. If framing an innocent man for a crime that would reduce the further riots and pain that looking for the real guilty person would incur, utilitarian theory would suggest that this would be the optimal choice as although an innocent man will suffer, for a greater number of people less pain will be caused, incurring in a calculation of more pleasure overall. Therefore, if the sole aim of utilitarian theory is to maximise pleasure and reduce pain for the greater number, justice will be ignored in situations such as this example. Bentham however argues that it is a serious misrepresentation to say that utilitarians would be willing to ignore justice and punish an innocent man in the name of the greater good. ADD t o benthams defence. Another problem with utilitarianism is the impracticality of calculating the utility of actions in real time. The calculation of utility is said to be self-defeating as by the time the best utilitarian course of action has been calculated and decided, the opportunity to take this action may well have passed. How can one calculate which of all possible actions will maximise the most happiness overall. What if one is in a dilemma and has a decision to make quickly? In high pressure situations, one usually does not have time to sit down and make exact calculations regarding which decision will bring about the most happiness and minimise pain. Mill deflected this objection with the response that humans learn general moral principle though experience that can later be relied on in such situations. Exact calculations are not necessary for each situation in life as this would be impractical. In chapter 2 of his essay Utilitarianism, Mill replies to such criticism: In such circumstances, one should follow common-sense moral rules, which summarize lots of human experience, and tend to guide us toward actions that promote general happiness and away from actions that tend to dampen it. Also, one can cultivate habits and train individual character, so that people become disposed to act in ways that are happiness-promoting. I feel his reply is valid as utilitarianism as a theory is still in use when making decisions in ordinary situations without exact calculations. It is logical to assume common sense moral rules as guidance when making decisions without needing to apply exact calculations. A further problem of John Stuart Mills utilitarianism is that strict application of some utilitarian principles can result in unpalatable consequences. This has been argued by many of utilitarianism critics and there are plentiful examples of scenarios where consequences of utilitarianism being applied leads to unacceptable consequences. A great difficulty with utilitarianism is that for one to truly take on a core principle such as the greatest happiness for the greatest number, is very demanding. Everything action an individual undertakes would become a moral obligation to help a greater number of people. It requires the actor to be impartial regarding his own happiness and desires and focus neutrally on the happiness of others over one sown. as between his own happiness and that of others, utilitarianism requires him to be as strictly impartial as a disinterested and benevolent spectator. (jsmill utilitarianism chapter 2) What makes this so demanding is the excessive amount of strangers in need of help and the indefinite opportunities there are to make sacrifices to maximise their happiness. This is also a problem as there is no differentiation between helping your friends and family before complete strangers. For example, choosing to work excessively and earn as much money as possible to help those in poverty wou ld be the correct utilitarian choice as it does the most good for the most people. We would become charitable cogs and ignore our human nature to have personal leisure time for example and engage with our individual wants and needs. This ties in with the criticism of utilitarianism that it ignores individuality and individual rights which is a main topic of criticism. As a theory, utilitarianism cannot respect the rights of individuals mill defends. Taking into account John Stuart Mills defence, I personally do not think that utilitarianism looks at individuals as unique and groups people together without regard for their individuality. One would become a martyr for greater happiness, disregarding ones own, apparently less important wants, needs and desires. Utilitarian thinkers argue that the world would in fact be a much better place if we did live by principle. I disagree and feel that in this sense utilitarianism is overly demanding and has a lack of respect for individual righ ts. This is a key problem with the theory that I do not believe is insurmountable as it would deter individuals from engaging with the theory. Act-utilitarianism is too demanding Therefore critics of utilitarian argue this overly demanding theory would leave one with a life of hardship and austerity. Bernard Williams is an infamous critic of utilitarian theory. He states that we need a sense of integrity and commitments to justify any morality. He effectively argues that utilitarianism misses moral agency. His example of this problem with utilitarianism is the differentiation between an act and the consequence. It is hard to justify that the action rather than a possibly terrible consequence is what makes an action immoral. Too much egoistic weight is placed on personal actions. For example, the action of shooting someone with a gun rather than the victim dying is what is wrong with such a scenario for a utilitarian. Williams argues that we do not judge actions by their consequences and this notion of utilitarianism should be rejected no matter how plausible it may seem. Williams believes this way of judgement removes what it is to be human from the scenario. Moral decision should preserve our psychological identity and integrity. John Stuart Millss proof of utilitarianism has also come under constant criticism. His answer the question why maximise happiness? is controversial. Mills claim is that happiness is pursued as an end in itself and is the aim of all human activity. If someone claims that they pursue virtue as an end in itself, Mill argues that this is just an ingredient in their life of happiness and just a means leading to the same end: happiness, pleasure and the avoidance of pain. Virtue is just part of their happiness. So for Mill, the question of why maximise happiness? is in fact a question of why happiness is desirable. His analogous answer to this is that The only way we can prove an object is visible is by demonstrating that people can actually see it. Therefore the evidence that happiness is desirable is that people desire it. This evidence of proof has come under much criticism as it is argued by Henry Sidgwick that itis based on a bad argument. First of all he criticises the comparison of what is desirable and what is visible. Visible means can be seen however desirable doesnt actually translate to can be desired. In fact it is more correctly translated to mean should be desired. This weakness of John Stuart Mills analogy makes it hard to compare what people do desire to what people should desire. Therefore, his proof of happiness being desirable is based fully on bad argument. As the fundamental aim of utilitarianism is the maximise happiness, the fact that Mill has difficulty proving that happiness is what the people desire is a fundamental problem with the theory that I do not feel can be ignored. It is also argued that if John Stuart Mill had given a correct analogy, his argument would have lead to a selfish version of utilitarianism compared to the utilitarian approach that the greatest happiness for the greatest number its aim. In Mills example, individuals wanting their own personal happiness will add up to an aggregate happiness. Therefore, it is argued he needs a far stronger argument than his given analogy to prove that general happiness is what all people should aim for. It is clear that utilitarianism, although often considered a simple theory which declares that the morally right action in any circumstances is the one which is most likely to maximise happiness, is actually a very complex cluster of related theories which have developed rapidly since the 18th century. Throughout this time many features of utilitarianism have come under constant criticism and as a normative theory it has been widely accused of being unworkable. I do believe that utilitarianism has flaws which John Stuart Mill as the theorys key defender has been unable to explain adequately. A lot of Mills utilitarianism is defendable such as how he deals with the objection that the calculations are impractical. However some of his answers to criticism do not persuade me that the problems with utilitarianism are surmountable. I sympathise with the criticism that utilitarianism is overly demanding and following rule utilitarianism strictly would lead to a life of austerity and self-de nial. As a moral basis for some decision making I think utilitarianism could have use in society today, however, as moral theory I do not think that it upholds and the problems within it are insurmountable. The criticisms I have mention in this essay are not exhaustive.

Lies My Teacher Told Me by James Loewen Essay -- Lies Teacher Told Loe

James Loewen wrote the book ?Lies My Teacher Told ME? to help the students of the United States become aware of their true history. This book attempts to show how and why American history has been taught the way it has without regard for the truth. Mr. Loewen had compared twelve different history textbooks they are: The Great Republic, The American Way, Land of Promise, Rise of the American Nation, Challenge of Freedom, American Adventures, Discovering American History, The American Tradition, Life and Liberty, The United States ? A History of the Republic, Triumph of the American Nation and The American Pageant. Loewen has argued his cases for Heroification, Euorcentrism and the first settlers, and Racism in our history. He has done this knowing fully that most people do not want to know the harsh realities of our nations past. The United States has tried to maintain a positive image throughout history. Unfortunately, it has many skeletons in its closet that need to come out to heal this great nation on many levels. If the public at large new the real role of racism in our nations infancy and how men tried to pursue their way of thinking as opposed to what is good for the country they would be ashamed at what the United States has stood for in the past. Heroification is a degenerative process that makes people into heroes regardless of any type of character flaw they may possess. It appears that Mr. Loewen?s greatest concern about heroification does not revolve around who gets chosen for the history books but what actually happens to them after they do. He cites two examples of people that had led colored lives but in our textbooks show them as people we should strive to become like. These two people are Helen Keller and President Woodrow Wilson. (Lies?19) Mr. Loewen feels that heroification has distorted the lives of Keller and Wilson and that we can no longer think straight about them. He does not just think this of these two but many other people throughout history. When it comes to Keller we think of someone who, throughout her entire life has struggled to overcome her disabilities. I feel that no one would dispute this but in reality Miss Keller was a radical Socialist for most of her life. This in itself is not so bad but her condemnation of the country into which she was born to and lived in could be considered treasonous. (Lies?20) President W... ...ime of the author rather then accurate historical facts. (Lies?293) Textbooks are being written this way and history is being taught this way to show people how they should act and strive to be. This relays to the student what is deemed acceptable to everyone and what is not. When it comes to a student remembering historical lessons they normally do not remember what is being taught to them unless they are moved by it. (Lies?301) So what is the result to a society where our students are being taught this way? The number one result is that students do not know the true history of their country nor do they remember what they were taught in class. This is a sad conclusion but Mr. Loewen feels it is an accurate one given responses to questions he has asked his students throughout the years. What can we do to change this and reeducate the people out there? Sadly I feel nothing can be done for those of us out there who are not truly aware of this misinformed way of teaching. But, our c hildren need not be sheltered from our true history, rather they should learn all that has happened so we can prevent the atrocities from reoccurring again. (Lies My Teacher Told Me ? James Loewen)

Steinbecks Experience and Its Reflection in His Work Essay -- Literar

A plethora of emotions triggers a person's motivation to write. Whether it is disappointment, fear, bliss, or pure excitement, feelings produce an overwhelming sensation. The response to these feelings can rise from a person's environment, relationships, interests or current struggles. However, emotional madness can be simmered down through a practice of writing (Science 20). Clinical trials indicate that writing about deep or traumatic experiences can clear the mind of all the â€Å"confining† stresses and emotional suffocation (Bolarius 2). In detail, a new brain imaging study, conducted by UCLA psychologists, reveals how â€Å"verbalizing† feelings can cause a sense of peace and prove to be a â€Å"cathartic† exercise (Science 20). In fact, writing down emotions born from experiences provides an opportunity in the documentation for posterity. In the same way, John Steinbeck, the author of Nobel Prize winning literary work, has marked milestones in the h istory of literature, leaving insightful and evocative images in the hearts of millions and for future generations. Steinbeck's work has drawn influence from several events in his life. David Bender, author of the Literary Companion, writes that any â€Å"serious† work from Steinbeck â€Å"must begin in his western home of the Salinas Valley† (Bender 13). Steinbeck's strong relationships and time growing up in the West were tremendous influences in his novels The Grapes of Wrath and The Pearl, as well as his short story â€Å"The Chrysanthemums.† Most writers of the first half of the century focused on the characterizations of men and their motivations (Hughes 154). However, Steinbeck differed in this approach; he continuously wrote works that shined a heroic light on women. The relationships he ... ...ichigan Department of Education, 2002. Hughes, R.S. John Steinbeck. Study Of Fiction. San Diego: Twayne Publishers BOSTON, 1989. 218. Guthrie, John. "Cedar Street Times." cedarstreettimes.com. Cedar Street Times, n.d. Web. 3 May 2012. Millichap, Joseph R. "Biography Of John Steinbeck." Critical Insights: The Grapes of Wrath. 14- 19. Salem Press, 2010. Literary Reference Center. Web. 3 May 2012 Plimpton, George. "Journal of a Novel." Viking Press. N.p., 1969. Web. 3 May 2012. john-steinbeck>. Timmerman, John H. "The Wine Of God's Wrath: The Grapes Of Wrath." Critical Insights: The Grapes of Wrath. 235-266. Salem Press, 2010. Literary Reference Center.. 7 May 2012.

Summary of Finding Forrester :: essays research papers

Does anyone really like to be stereotyped? Does anyone want to be looked at and automatically judged just because of the way they look, by their skin color, their hair type, or even the type of clothing they wear? Finding Forrester is a film that in my opinion perpetuates stereotypes. The entire film is based on significantly different racial opinions, opinions of different writing styles and stereotyping of different people in general. Race is a huge issue in the film and many stereotypes are made. Jamal Wallace is introduced in the film as a typical black teenage male who goes to a low class school in the Bronx and really excels on the court as a basketball player. He always plays basketball with his friends in a parking lot. Jamal is dared to go into the apartment of a recluse who watches them play through binoculars. Jamal is caught and, running away in fright Not too many people thought of him as being anything more than that, due to the fact that Jamal makes mediocre grades in his school in the Bronx, he does just enough to get by and to maintain a â€Å"C† average. Jamal did not push himself any harder in the classroom than he needed to. Jamal’s passion is writing, He meets a famous old writer named William Forrester through a dare, who has been watching him when he plays basketball at the parking lots. Little do they know when they first meet what a great difference they would each eventually make for each other. William is the first to help Jamal by helping him in his writing. Jamal is a great writer but just doesn’t know it yet. William helps Jamal find himself in his writing, and Jamal prospers into quite a good writer. The help didn’t really stop there either. Jamal would tell William all about his day and Does anyone really like to be stereotyped? Does anyone want to be looked at and automatically judged just because of the way they look, by their skin color, their hair type, or even the type of clothing they wear? Finding Forrester is a film that in my opinion perpetuates stereotypes. The entire film is based on significantly different racial opinions, opinions of different writing styles and stereotyping of different people in general. Race is a huge issue in the film and many stereotypes are made.

History, but goes deeper to touch on matters

It is not customary for there to be exchanges between us concerning my growing interest in art and my consequent enrollment in an art school. I however hope not to offend you, not by sharing what has become so intimately entwined with my heart.I’m not going to amuse you by attempting a funny portrait of you, but discuss a classic that I recently encountered, and that does not only touch your favorite subject, Â  History, but goes deeper to touch on matters of humanity, of war and the fight against such atrocities as happened on the Third of May, 1808. I have been careful enough, dear, to attach a photo of the portrait for you.Franscisco Goya, the artist who created this masterpiece is considered a key figure in the word of paintings. On this painting he created the background of a dark early morning, in which a Church stood.Goya tells of the dark evil that surrounded the mass execution that occurred that morning, an atrocity against humble and innocent human beings. This is i mplied by the presence of a church, and demonstrated by one of the victims in the middle ground.Talking of the middle ground, you have seen the desperate faces of the victims displayed against the light from a lamp. You must, as well as I did, wonder about the genius that Goya was: What is this source of light? How can it exist in front of such seemingly horrible executioners? He crafted it so carefully that we do not have to see the faces of the executioners!After all, he must have wanted us to focus on the victims who suffer the violence, not the perpetrators, therefore raising that humane part of us to protect the harmless of the society who’ve been pitted against the armed ruthless dictators of the world.The foreground is very dramatic. The firing soldiers are killing one victim after another in cold blood. Goya must have been very skilled in his conception of principles of design, especially how he has used light to communicate his message, yet all this is done on a canv as, just (106*137 inches) Fairly large for a painting, but the depth of meaning it carries cannot be exhausted, not by time or space.I have hereby just given you a glimpse of what art we study in school and the thoughts that cross my mind as I engage the books.

Should Compulsory Military Service Be Abolished?

Should compulsory military service be abolished ? (ARGUMENTATIVE ESSAY) The problem of compulsory military service has always been a controversial issue. Some people strongly support this idea while others are definitely against it. Although it has been claimed that the military service should be compulsory because of its benefits to governments, compulsory military service shouldn’t be abolished because of its limitations to citizens. It is commonly maintained that compulsory military service affects government’s economy in positive way, yet military service is cheaper than mandotary in long-term.Supporters of compulsory military service believe that mandotary military service is a must for countries to develop their economy. The choices of developing countries could be a good example for benefits of compulsory military service. Developing countries mostly prefer compulsory military service to grow their economy. Portugal is one of the these countries. Since Portugal m oved on to free military service there is a rapidly increase in civilian wages. However United States shows that countries can have both powerful economy and strong military power despite using free military service.According to Chapman, the cost of a volunteer is more expensive than full-time soldiers. (2002) Another argument widely claimed against abolishing compulsory military service is based on the assumption that young people could improve themselves physically and psychologically, pn the other hand it may cause harmful consequences on many sensitive young men. Proponents of compulsory military service claim that personality of young men would be developed during military service.They think that military service would make young men disciplined and principled. Laar stated â€Å"During the course of compulsory military service, a number of skills required for civilian life are acquired. † (2011) According to Kelty, Kleykamp and Segal, military service is an experience th at turns youth to adults. (2010) Nevertheless, compulsory military service may cause permanent problems in young people’s character and their lives. Forcing sensitive young men to strict the rules may lead to terrible damage to their psyche or even suicide.Citizens aren’t free to choose how they live in the countries using mandotary military service. They would be forced to something against their plans and they can’t live their lives how they wish. Other frequently heard arguments in support of compulsory military service is its necessity to protect national security against threats, yet it is unnecessary to maintain large armies because the strength of the country doesn’t depend on the manpower of an army; it is related to skills and knowledge of experts who are specially educated.A common claim is that compulsory military service is necessary to protect national security against threats. They think that the increased number of soldiers helps to fight a gainst terrorizm. It can frighten enemies to have a great number of soldiers. However, maintaining large permanent armies is not essential in our age because technology is developed. Nucleer weapons are one of the high-tech weapons and they can be operated by a small force.Professional soldiers are specially educated to operate complicated missles of an intercontinental range so the number of the soldiers is not so important. For exapmle Turkey is one of the countries that have increased number of soldiers but they can’t eliminate terrorizm in many years. In conclusion, best opinion would be forming smaller professional armies consisting of young men who like military life and who can easily adopt to hard conditions. Everyone should be granted freedom of choice and not forced to do something against his plans or nature.

Pricing Strategies of Hyundai

1 March 2006 Immediate Release Hyundai Launches Family Pricing Strategy and Standardises Parts Prices The cost of owning and servicing a Hyundai has never been cheaper for Kiwi motorists from this week. Hyundai Automotive New Zealand has announced a revolutionary new parts policy that will see genuine part prices across Hyundai’s model range standardised, and in many cases becoming considerably cheaper. Known as the Family Pricing Strategy, the policy sees the price of regular maintenance genuine Hyundai parts standardised across models, and is the first step toward standardised service costs. Surveys by Hyundai revealed the company already had competitively priced genuine parts, having similar prices to the aftermarket competitors and in many cases beating them. Hyundai New Zealand Aftermarket Manager Peter Tolley said getting the company’s spare parts aligned across the model range was the first part of the company’s strategy to keep ownership costs as low as possible for all Hyundai vehicles. It would also ensure customers have the reassurance of genuine Hyundai parts which come with a 12 month, 20,000km warranty. The â€Å"grey†parts market is a worldwide problem for the motor industry because many parts are substandard and unsafe. To combat this Hyundai Motor Company has been keen to get involved in this local initiative. â€Å"Working closely with Hyundai Motor Company and its suppliers has meant that we are able to offer some substantial reductions in pricing to benefit the New Zealand consumer,† stated Mr Tolley. â€Å"We expected customers to benefit from some substantial parts savings, particularly on the larger vehicles such as Terracan, Santa Fe and the new Grandeur† said Mr Tolley. You will see genuine components like front brake pads drop from anything up to $253 each down to $85 under the Family Pricing Strategy. Simple components like oil filters on our petrol engines will drop from up to $38 down to $15. 75. These savings are genuine, long term and will lead into very competitive servicing costs for our customers. † Mr Tolley said Hyundai was going to g reater lengths than any other vehicle manufacturer with this new pricing strategy. Low ownership costs with Hyundai were already almost a given, due to the extremely high level of quality and reliability in new Hyundai vehicles, said Peter Tolley. Surveys such as the prestigious JD Power Vehicle Quality survey rated the Hyundai Sonata as one of the world’s top three reliable cars in 2005. The US based Total Quality Index survey confirmed the Hyundai Tucson as the world’s highest quality small SUV for 2005. The results come from polling a massive 40,000 buyers of models throughout the USA. With results like this backed up by competitive parts pricing, New Zealanders can be sure they will see Hyundai as an extremely good value, high quality, low cost vehicle for many years to come. † â€Å"Putting it simply, we are confident that over a complete ownership cycle, no car will show a better â€Å"complete cost of ownership† than a Hyundai. † This has already been shown to be the case with Hyundai’s Getz, which in 2005, won the Be st Small Car Award in the annual Australia’s Best Cars awards scoring the top ‘well above average’ ranking for among other things, Pricing, Running & Repair Costs and Warranty.

The Grafton Group Project

Student Names: Stephen Bray B00037534 Johnny GeraghtyB00020240 Alan LennonB00020051 Emmet Toft B00015911 [pic] Module Name:Strategic Management 2 Lecturer:Mr Liam Bolger Submission Date:29th April, 2010 Word Count:10,413 Table of Contents Background of the company:2 History of the company:3 The Environment7 PESTEL analysis7 Political7 Economic7 Sociocultural8 Ireland population by Age 20069 Technology10 Environment10 Legal10 Key drivers for change10 The Industry11 Porters Five Forces analysis11 Substitute products/services12 Bargaining power of buyers12 Bargaining power of suppliers12 Rivalry/Competition13 Opportunities and Threats14 Opportunities identified15 Threats identified16 Financial Information Analysis17 Analysis of Financial Reports18 Liquidity Ratios18 Profitability Ratios20 Net Profit Margin per Segment20 Earnings per share (EPS)21 Analysis:23 Liquidity:23 Profitability:24 Debt:24 Return on Investment:24 Borrowings:25 problems with accessing credit. 25 Share Price26 Source http:investor/graftongroupplc. com27 Liquidity: Excellent27 Financial Strength:Excellent27 Profitability: Fair27 Growth: 027 Source www. corporateinformation. com27 Outlook for the Future28 Rationalisation measures:29 Plans for 2010:29 Opportunities 2010:29 Group Strengths30 Weaknesses31 Strategic Capability31 Critical Success factors for customers (a sample of but not limited to):33 Corporate Governance35 Grafton Group’s Compliance with the Combined Code36 The Board – who reports to whom? 37 Directors’ Independence and Board Balance38 Performance of the Board39 Corporate Social Responsibility – CSR and Ethics39 Shareholder and Stakeholder Expectations and Influences41 Culture of Organisations and Grafton Group43 Strategic Direction and Corporate level strategy44 Corporate Parent44 The corporate parent as a Synergy manager45 Strategic Drift46 International Strategy48 Table Pre-Merger48 Table Post-Merger50 Traditional reasons for Merger failure51 Through a possible merger Grafton may:52 Strategic Directions53 Market Consolidation54 Market Diversity (Related)55 International strategy – Travis Perkins and Grafton merger? 56 Bibliography59 Plagiarism Disclaimer:60 Background of the company: Grafton Group plc is an independent, profit growth oriented company with operations primarily in the UK and also in Ireland. The Group has strong national and regional positions in the merchanting, DIY retailing and mortar markets. The Group aims to achieve above average returns for shareholders. Grafton’s strategy is to build on strong positions in businesses serving the UK and Irish construction sectors, to develop in related markets, and to grow in businesses with which it is familiar. In Great Britain, Grafton is the fourth largest merchanting business trading from 430 locations comprising 219 Builders Merchanting branches trading principally under the Buildbase and Jackson brands and 211 Plumbers Merchanting branches trading mainly under the Plumbase brand. EuroMix is the market leader in the UK dry mortar market where it trades from a network of nine manufacturing plants in England and Scotland. In Northern Ireland, MacNaughton Blair is one of the leading builder’s merchants in the province where it trades from 20 locations. In the Republic of Ireland, the Group is the largest builders and plumber’s merchanting business trading nationally from 62 branches under the Chadwicks and Heiton Buckley brands. The Group is the market leader in DIY retailing in the Republic of Ireland, trading nationally from 41 stores and is also engaged in the manufacture of mortar, plastics and windows in the Republic of Ireland. Today, in Ireland, Grafton is the largest builders and plumbers merchants and the clear market leader in DIY retailing. In the UK the Group’s merchanting operation is the 4th largest in the market. 2005 turnover was â‚ ¬2. 6 billion and Profit after Tax amounted to â‚ ¬166 million. History of the company: Grafton’s origins date back to 1902 and since then the Chadwick family have played a central role in the development of the business. 1909 William Thomas Chadwick establishes his first business called Chadwicks (Dublin) Limited to supply builders merchants and major building contractors with Irish and imported cement and plaster. Today Chadwicks is the 2nd largest builders and plumbers merchanting brand in Ireland, trading from 31 branches nationally. 1930 William Chadwick acquires control of a small firm engaged in the manufacture of concrete blocks and roof tiles, which his company was supplying with cement. In 1931 Concrete Products of Ireland was registered as a private limited company. Today it is called CPI Limited and is a leading manufacturer of dry mortar in the Irish market. William Chadwick, the Group’s founder, dies at the end of the Second World War, leaving the business to his two sons – Terence and Finton Chadwick. 1965 Concrete Products of Ireland becomes a public company and purchases Chadwicks (Dublin) Limited from the Chadwick family. At the same time Marley Limited increases its holding to 51%. Marley’s relationship with Concrete Products of Ireland dates back to the end of the Second World War when Marley acquired a minority shareholding. 985 Mr. Michael Chadwick is appointed Executive Chairman. 1987 Marley plc decides to concentrate on the manufacture of building materials and as a consequence sold its controlling shareholding in the Group. The Marley shareholding was placed with institutional investors and the Group’s management. The Group opens its first DIY retailing store in the Irish market. 1988 The Group changes i ts name to Grafton Group plc and makes its first UK acquisition, a small heating and plumbing business which gives the Group familiarity with the large UK merchanting market. 990 The Group acquires MacNaughton Blair a long-established and well-known Belfast-based builders merchants. Also during the year Grafton acquires Joseph Kelly & Son (1994) Limited in Dublin, a builders merchanting business which was to become very well placed to serve the needs of the building trade in the centre of Dublin. 1994 The Group’s expands significantly in the UK with the acquisition of Bradley’s and Lumley & Hunt plumbing and heating operations. Total sales in Britain and Northern Ireland increase by 53%, representing 21% of Group turnover. 995 Grafton acquires P. P. S. Mortars – a silo mortar plant based in Glasgow. This business adopts the EuroMix silo mortar business model and technology, which has been successfully developed by CPI, the Group’s Irish concrete products business. Today EuroMix is the leading UK mortar manufacturer with eight plants. 1996 The Group continues its strategic development in the UK with its first acquisition of a builder’s merchanting business – R. J. Johnson, based in Oxford. 1997 The Group continues to acquire in the UK adding a further 14 locations through six small but significant acquisitions and achieves critical mass in its UK operations. This is the Group’s tenth year as an independent public company; a decade of considerable achievement in which sales increased 18% annually and earnings per share grew at an annualised rate of 29%. 1998 UK builders’ merchanting operations expand substantially with the acquisition of British Dredging plc, the first time an Irish company acquires a listed UK plc. This business operates a total of 23 locations incorporating 17 builders’ merchants and six plumber’s merchants. The builder’s merchanting operation is integrated under the Buildbase brand, which was established in 1997 as the trading name for the Group’s UK builder’s merchanting operation. During that year the Group makes another six acquisitions adding a further 19 locations, including the London based Deben Builders Merchants business with 10 branches and A R Hendricks Limited, a heavy side builders merchant trading from five branches. 1999 The Group continues its bolt-on acquisition programme adding a 16 more locations, through eight acquisitions in the UK. Throughout the nineties the Group continues with the expansion of its Irish merchanting and DIY retailing operations and consolidates its position as market leader in both sectors. 2000/2001 During these years, the Group continues apace with its bolt-on acquisition strategy. A total of 24 acquisitions were made during the period, many single branch operations that add value through infilling the Group’s overall network of locations in the UK. 002 This is a record year with a total of 15 acquisitions adding a further 39 branches to the UK merchanting network. These acquisitions included five small chains: Lakes in Derby, BMB in Barnsley, and PDM in Edinburgh, Aizlewoods in Rotherham and JKS Heating and Plumbing Supplies in Manchester. 2003 The Group undertakes its largest ever acquisition thus far – Jackson Building Centres in England adding 18 branches – and makes another significant acquisition with Plumbline, Scotland’s largest independent plumbers merchants with 17 locations. Overall it was a busy year with a further seven bolt-on acquisitions completed, giving a total of nine acquisitions for 2003. Grafton now has 137 plumbers’ merchanting branches trading under the Plumbase brand and 139 builders’ merchanting branches trading principally under the Buildbase and Jackson brands. 2004 The Group completes its 100th acquisition since 1998, averaging more than one per month. A total of 19 acquisitions are completed during the year, another record year for development. Grafton reaches agreement to acquire Heiton Group plc, subject to regulatory approval. 005 In January Grafton completes the acquisition of Heiton Group plc. This business includes, inter alia, the No. 1 builder’s merchanting operation and the No. 2 DIY retailing brand in Ireland and is a good strategic fit with Grafton’s existing operations and consolidates its position as the leading player in the Irish market. Overall Heiton has over 50 trading locations (six in the UK), an average of 1,900 employees and a turnover in excess of â‚ ¬500 million. We can see from this chronological list of their history that Grafton Group expanded greatly from the mid 90’s to 2005. Their growth in the UK market was surged on the back of an economic building boom in Ireland. They now have a much greater market and consumer base to compete in but also face a vastly changed environment. The Environment PESTEL analysis Political †¢ Taxation policy – corporation tax remains at 12. 5% in Ireland. Grafton Group is resident in the state and is liable to Corporation Tax on its worldwide profits. The corporation tax rate in the UK is 21% which is a huge source of competitive advantage for Grafton versus its UK competitors. Government stability – the current Irish government is in place till 2012. The UK is in the build up to a general election which could see a change in the current government and policies. †¢ Government policies towards â€Å"green† initiatives – grant towards homeowners to improve insulation, grants for solar panels and etc. Economic †¢ The UK and Irish economies are in recession leading to a sharp fall in dem and. Consumer confidence has fallen and housing related spending has reduced. †¢ The number of house completions in Ireland is 17,000 units in 2009 which is a fifth of the output during its peak in 2006. Ireland’s stock of empty homes surged 30pc to 345,000 houses in the three years through 2009 as the decade-long property boom collapsed. †¢ Sterling exchange rate weaknesses could lead to lower reported Group earnings on translation of the results of the UK business into euro at the average rate of exchange for the year. †¢ Low Interest rates – the cost of loan repayments is low and for the foreseeable future they should remain constant. †¢ The availability of credit and money is very strict and very few banks are willing to give loans to cash strapped businesses. Unemployment rate in Ireland has increased dramatically, Jan 2008 4. 8% versus Jan 2010 13. 4%. Unemployment rate in the UK has increased but not as dramatic, Jan 2008 5% versus Jan 2010 8 %. Sociocultural †¢ Declining employment and incomes for individuals. †¢ Higher personal taxes – introduction of income levy, the doubling of health and PRSI levies. †¢ A nation of savers, People are now saving more than before and consumer spending has decreased as a result. †¢ An increasing age demographic in Ireland who will require a home in the future. Ireland population by Age 2006 | |Age Group | |Males | |Females | |Persons | | | |0-14 | |443,044 | |421,405 | |864,449 | | | |15-24 | |321,007 | |311,725 | |632,732 | | | |25-44 | |681,988 | |663,885 | |1,345,873 | | | |45-64 | |468,037 | |460,831 | |928,868 | | | |65 years and over | |207,095 | 260,831 | |467,926 | | | |Total | |2,121,171 | |2,118,677 | |4,239,848 | | | | | | | | | |UK population grows to 61. million | | | | | |[pic] | | | | | | | |Technology | |Improvements in technology have led to better supply chain and logistics management. | |Bar-coding of products has impro ved inventory management. |Environment | |Organisations need to be socially responsible with their business activities; negative publicity can have a detrimental effect on| |consumer’s perception. | |A growing consumer awareness of greener behaviour and products associated with having a better impact on the environment. | |Legal | |Health and safety regulations have increased the demand for health and safety products and packaging. | | |Key drivers for change | |These are environmental factors that are likely to have a high impact on the success or failure of an organisation. There is a | |huge level of uncertainty in the current environment but an area we have identified as key is the energy efficient sector. The | |government have introduced policies and measures to address climate change. This initiative has arisen from a UN conference on | |energy for development, which is demanding countries to change their ways for the improvement towards a greener global | |environme nt. There will be a greater demand from consumers to meet those measures and therefore Grafton must satisfy this growing| |demand with energy saving products. | | | | | | | | |The Industry | |Porters Five Forces analysis | |Potential competitors | There is the potential for new entrants in the form of small independent hardware suppliers which are strategically located to entice consumers, ex. A small hardware shop beside the local shopping centre. As we can see from the below graphic many of their outlets are strategically located in and around the big cities as there is a much greater consumer base, ex. Dublin, London, Birmingham. [pic] There is a huge capital requirement required to compete with the Grafton group brands within Ireland and their closest competitors are B&Q (20% market share) and Hombase (17% market share). The location of DIY retailing outlets is interesting as during the boom many of our local towns have seen the emergence of industrial retail parks. In Navan 4 years ago Woodies located in a newly developed retail park just off the N3, before that there was Chadwick’s and a number of small independent outlets in the town. Grafton group have 63% of market share in Ireland, as a result the power of competitive response is very strong in Ireland. However in the UK they are fourth with 10% of market share with Travis Perkins (15%), Jewson (18%) and Wolseley (19%) and as a result their competitive position is much more demanding as they have 3 competitors who are in stronger market position. Substitute products/services We believe the only substitute threat is hire companies, they offer equipment and tools to consumers on a rental basis i. e. per hr, day, week and etc. In the current climate price is a key factor in peoples decisions, therefore consumers may opt to hire equipment for tasks rather than spending vast amounts on equipment that might only be used infrequently. Bargaining power of buyers Grafton’s consumers are powerful because, †¢ Buyers can switch suppliers at no cost. †¢ Buyers purchase from multiple sellers at once, they opt for suppliers conveniently located to the project. Buyers are shopping round for the best value. Bargaining power of suppliers The Grafton procurement process has improved f urther with new internal appointments to lead heavy side and light side purchasing. There was an increased focus on reducing the supplier base and developing closer alliances with key suppliers. This has resulted in greater leverage being achieved from the Group's purchasing scale and improved purchasing terms. The volume of products sourced directly through the warehouse facility in Shanghai continued to increase providing a new sourcing option for the Group's businesses to procure quality products at competitive prices. We can see from the above that the power rests with Grafton; suppliers are keen to meet the demands of their customer as they have a strong foothold in both the UK and Irish marketplace. Rivalry/Competition In Ireland their competitive position is very strong and through consolidation and job cuts they will be better placed than most building supply firms especially the many small independents that are under serious financial strain as the economic property boom which they depended on is long gone. Many independents face closure and Grafton group and its brands will be best placed to take advantage when the economy recovers over the coming years. Competitive rivals are organisations with similar products and services aimed at the same customer groups. When we look at one of Grafton’s brands Woodies DIY and their offerings, we see that they are competing with many different retailers. They offer a product range which caters for all your interior and exterior requirements, ex. Bag of cement, paint, timber, kettles, toasters, lighting, TVs, etc. They compete in a very fragmented industry but what many people don’t realise is Grafton is the parent company and all these separate brands from the consumers perspective competing with one another doesn’t matter as all profits go into the one organisation. Grafton is competing with any organisation who offers interior and exterior household products, ex. B&Q, Homebase (part of Home retail group), Argos (part of Home retail group), Power City, Harvey Norman, etc. From our experiences with Woodies they differentiate themselves from the competition as they offer a complete range of products from their store which means you can get all your needs in the one store. However if you look at the UK operating margin history it was roughly 6/7% over the past ten years versus Irish operating margin history of 11-13%. This means that competition is much stronger in the UK and they must price more competitively in the UK. Opportunities and Threats We can see from the below graphic that their decision to expand its operations in the mid 90s to the UK has been extremely successful with 68% of their turnover coming from the UK. Grafton must now look to the UK with a population of 61 million versus Ireland 4. 2 million as their primary source for turnover and opportunity. [pic] Turnover breakdown Ireland Merchanting |370,167 |19% | |DIY Retailing |247,784 |12% | |Manufacturing |19,891 |1% | |Total |637,842 |32% | In the UK their operation consists mainly of b uilders and plumbers merchanting. THE MARKET ATTRACTIVENESS – BUSINESS POSITION MATRIX (GE and McKinsey Company Model) |HIGH MARKET ATTRACTIVENESS |MEDIUM MARKET ATTRACTIVENESS |LOW MARKET ATTRACTIVENESS | |HIGH BUSINESS | | | | |POSITION | | | | |MEDIUM BUSINESS | | | | |POSITION | | | | |LOW BUSINESS POSITION| | | | Invest Grow = Green Selective Investment = Yellow Harvest/Divest = Red The G. E. Matrix is an extremely useful tool to assist an organisation in exploring its Business Position based on its competitive position and the attractiveness of the markets under the organisation’s consideration Opportunities identified †¢ Demographics – In Ireland 1. 5 million are under the age of 24 and in the UK roughly 15 million are under the age of 30. These people will require a home over the next 5 – 10 yrs and therefore there will be a demand for housing and renovations to suit individual tastes. †¢ Worldwide government energy initiatives – consumers are encouraged to buy more energy efficient products. †¢ Cost reduction – with demand in decline it important that Grafton mange their costs, ex. Supplier costs, staffing, acquisitions etc. Competitors – independents are finding the financial strain to difficult and are been forced to close their operations. Economic recovery will see Grafton best placed in the market. †¢ Markets – economists both here and abroad are saying there is a bottoming out of the recession. This should bring about a stable market place. †¢ Debtors – if debtors are managed tightly it can have a significant effect on cash flow and bad debts can be reduced to a minimum. †¢ Credit – if debtors aren’t paying on time then Grafton need to look at extending credit terms with their suppliers. We think this very possible as the power is very much with Grafton and not the suppliers. Threats identified We believe the biggest threat to Grafton Group is the level of spending available for construction related projects. The demand for building materials continues to fall in Ireland and signs of improvement are slowly beginning to show in the UK. â€Å"The construction industry has now declined for the 34th month in a row, but the rate of contraction is slowing, according to the latest Ulster Bank Purchasing Managers' Index. † â€Å"Though it's great to see the UK construction sector turn the corner after two years of relentless contraction, it's still very early days,† said David Noble, chief executive officer at the Chartered Institute of Purchasing and Supply. There is now a reliance on the public sector for new work and if they don’t provide the funding for new projects then construction suppliers could be in for a difficult few years. Private investment is very unlikely in the current environment with consumer confidence very low and economic conditions unstable. Financial Information Analysis 2009 2008 Revenueâ‚ ¬1. 98bn â‚ ¬2. 67bn Adjusted operating profitâ‚ ¬26. 2m â‚ ¬118. 6m Operating profit per income statement â‚ ¬4. 9m â‚ ¬99. 2m Profit before tax â‚ ¬13. 6m â‚ ¬64. 1m Free cash flow 171m â‚ ¬212m EBITDA â‚ ¬74. 1m â‚ ¬172. 9m Adjusted earnings per share5. 4c 32. 2c Basic earnings per share 5. 8c 25. 1c Dividend/share purchase 5. 0c 15. 0c Net debt â‚ ¬322m â‚ ¬435m Gearing 35% 50% Analysis of Financial Reports The following is an analysis of the financial reports of Grafton Group plc. We will try to illustrate the current financial situation the group is in compared to previous years and also attempt to analysis the outlook for the future. Grafton’s presence in the construction and raw materials market means they have been very much affected by the economic downturn, in particular the significant slowdown in the construction market and the housing market in both the UK and Ireland. I will use liquidity, profitability, debt and other ratios deemed appropriate as tools to help analyse and diagnose the financial health of the group. I will use a year on year comparison in order to determine the direction in which the group is going and identify any trends. Liquidity Ratios Current Ratio (current assets : current liabilities) 20082009 920,482: â‚ ¬601,987â‚ ¬891,364 : â‚ ¬550,793 1. 53: 11. 62:1 Acid Test Ratio (Current assets less stock : current liabilities) 20082009 â‚ ¬920482 -â‚ ¬331124 : â‚ ¬601987â‚ ¬891364-â‚ ¬265748 : â‚ ¬550 793 1 : 0. 981. 14 : 1 Cash at Bank and Short term deposits (at end of year) 20082009 â‚ ¬301,984â‚ ¬224,834 Profitability Ratios Net Profit Margin (â‚ ¬000’s) 20082009 â‚ ¬64116 / â‚ ¬2672984â‚ ¬13580 / 1979766 2. 4%0. 68% Net Profit Margin per Segment Merchanting 20082009 â‚ ¬2284,484 / â‚ ¬121,921â‚ ¬1686,933 / â‚ ¬39305 5. 33 %2. 33 % Retailing 20082009 â‚ ¬303,071 / â‚ ¬11,790â‚ ¬247,784 / â‚ ¬3274 3. 89 %1. 3 % Manufacturing 20082009 â‚ ¬95621 / (â‚ ¬3159)â‚ ¬50985 / (â‚ ¬5060) -3. 3%-9. 9% Earnings per share (EPS) 20082009 32. 2c5. 4c Gearing 20082009 50%35% New borrowings v old borrowings 20082009 â‚ ¬91. 944 : â‚ ¬579,333â‚ ¬73679 : â‚ ¬536789 1 : 6. 31 : 7. 29 Short term v Long Term finance 20082009 â‚ ¬119,874 : â‚ ¬579,332 â‚ ¬103174 : â‚ ¬536,789 1 : 4. 831 : 5. 2 Analysis: Liquidity: The group has improved its current ratio year on year from 2008 to 2009, this is mainly due to a decrease in current liabilities. This is an encouraging trend for the group. The acid test ratio also shows improvement from 2008 to 2009, this is both a reflection of the improved current ratio and also the work done to try and reduce inventory holding, and reduce cash flow tied up therein and other associated costs. Cash flow was enhanced greatly by tighter management of inventory, debtors, disposal of assets (sale of freehold land, exhibiting the importance of having a strong portfolio of assets) The cash at bank and on short term deposit has been increased year on year from 2008 to 2009 by approximately 34% this is quite encouraging especially in the current environment (and not due to borrowings), as the adage goes â€Å"profit is food, cash is oxygen†. It is fair to say the group has slightly improved its liquidity situation and is more able to meet its outgoings as they fall due. Against the economic backdrop it is quite a good performance and evidence the group are handling the downturn well in a strategic sense. Profitability: Profitability is the biggest challenge facing Grafton due to the economic downturn and slowdown in the construction and housing markets. Net profit fell dramatically from 2008 to 2009 from â‚ ¬64 million to â‚ ¬13. 5 million, this was quite dramatic. Despite being worrying it was not unexpected, with the focus for the year on debt and cost reduction (and reducing capital expenditure and working capital). Merchanting, Retailing and Manufacturing all dropped considerably in profit terms. Margins were also decreased across all operations. Merchanting still remains the highest source of revenue for Grafton (%85 of group turnover in 2008 and 2009, suggesting strong competencies here). The loss in manufacturing outweighs the profit made in retailing, it is the profit made in the merchanting division that the real profit pool for Grafton. (divesting in manufacturing division may need to be considered, bar where synergies exist with other divisions, i. e. mortar manufacturing) As a result earnings per share have fallen dramatically from 32. 2c to 5. 4c, Debt: Through measures taken during the year to reduce gearing, Grafton were able to reduce an already modest gearing of 41 % in 2008 to 35 % in 2009. This is an excellent achievement in the circumstances (and exhibits a strong leadership in Strategic choices, direction, and fit). The net debt was reduced by â‚ ¬113. 1 from â‚ ¬435. 6 million in 2008 to â‚ ¬322. 5million in 2009. The groups current bank facilities are subject to a minimum net assets requirement (â‚ ¬301,984 cash at bank end2009, up from â‚ ¬224,834 end 2008, leaving the Group in a strong cash position). Return on Investment: Return on investment is down considerably from 2008 to 2009 10. 12% to 2. 19%, as profits dipped quite considerably resulting in the dramatic slump. Again this is worrying but not unexpected as the Group were attempting rationalization and consolidation (strong market share results exhibit some success in this regard) Borrowings: The ratio of new to old finance borrowings and ratio of short term to long term finance borrowing both improve year on year (1:6. 3 to 1:7. 29 and 1:4. 83 to 1:5. 2 respectively). Again this shows strong evidence of reducing debt and decreased borrowing. It is fair to say that Grafton is currently In a very challenging operating environment with the downturn In markets seriously affecting their profitability, dividends, and returns. But the Group finds themselves in an improved liquidity position, as well as considerably reducing their gearing, they also greatly increased their cash at bank negating greatly problems with accessing credit. Share Price Irish Stock Exchange Date: 29/04/2010 | Currency: EUR | Code: GRF_u. I |Current Price |3. 52 |Day High |3. 55 |Bid |3. 50 | |Last Closing Price |3. 50 |Day Low |3. 47 |Ask |3. 4 | |Change |0. 02 |Day Open |3. 47 |Year High |3. 59 | |   |   |Volume |28,045 |Year Low |2. 30 | Source http:investor/graftongroupplc. com The latest share price info as at 29/4/10 is encouraging as it shows strong recovery from a year low of 2. 30 to 3. 52 (a year high of 3. 59 has been achieved. The highest share price achieved was nearly 23 in early 2007 which illustrates the decline in the industry, and p uts the company’s current performance into context. The Corporate information. om Wright quality ratings rates Grafton’s investment quality as BBD0 which translates as: Liquidity:Excellent Financial Strength:Excellent Profitability:Fair Growth:0 Source www. corporateinformation. com Outlook for the Future The UK economy has moved out of recession in late 2009 which is encouraging news for Grafton as 68% of its turnover comes from this source. The amount of new house sales and builds are on the increase from a very low level starting which is very encouraging as the merchanting division is Grafton’s real profit pool. The Merchanting market has remained structurally sound despite the downturn and can expect a growth rate above normal trends that Grafton are well positioned to take advantage of. The Irish economy remains in recession but is expected to return to growth by the middle of the year boosted by global growth and improved export conditions. A weak employment situation, low consumer confidence and tight credit conditions make the market conditions in Ireland even more challenging, coupled with the massive drop in new house builds as housing over supply is still a problem. Further rationalisation measures and/or closures in the Irish operations should be considered. Group turnover stabilised from H1 2009 to H2 2009 which is encouraging. The cost reductions and integration benefits in the Merchanting divisions improved profitability in H2 2009. The rationalisation achieved and the increased activity expected form the UK new Housing market means that Grafton are well placed to take advantage of the recovering markets this year. Rationalisation measures: †¢ Employee base reduced in both Ireland and UK †¢ Cost reduction initiatives progressed with significant results †¢ 18 locations consolidated or closed and 10 new locations added †¢ Credit terms from suppliers renegotiated †¢ Improved inventory management †¢ Debtors managed tightly with significant cash generation †¢ Costs rationalized by â‚ ¬80 million in 2009 Plans for 2010: †¢ Further rationalisation costs will be incurred in 2010 Wider product range yielding margin growth †¢ Emphasis on overhead control and working capital management †¢ Attempt to obtain full benefits of integration Opportunities 2010: †¢ Reduced cost base †¢ Market share gains †¢ Competitors failing †¢ Irish Construction close to b ottoming out †¢ Signs of recovery in markets †¢ Positive Demographics †¢ Government Renewable energy initiatives Group Strengths †¢ Highly cash generative streamlined businesses †¢ Significant cash deposits ensures liquidity †¢ No P Banking Covenants -protection from exchange fluctuations now in banking agreements †¢ Strong balance sheet –modest gearing 35% †¢ No material refinancing required before 2011 68% of turnover in UK (increased mortgage lending, & housing sector activity in UK) †¢ Prominent market positions in the UK and Ireland –market share circa 10% and 20% respectively (satisfactory market share performance) †¢ Motivated management teams †¢ Proven strategic record, past experience of managing down cycles †¢ Spread risk †¢ Economies of scope amongst SBU’s †¢ Synergies across SBU’s †¢ Vertical integration achieving efficiencies in merchanting division †¢ Benefits de rived from lower cost base, integration, scale related and Procurement efficiencies †¢ Trading stabilised in second half of 2009 †¢ Trading outlook beginning to improve following period of significant uncertainty †¢ Tight financial control across group Weaknesses †¢ Poor performance in Ireland operations †¢ General economic downturn †¢ Housing market collapse †¢ Sharp Industry downturn Slowdown in Irish construction & housing industry (brought group turnover down 26% to 1. 98bn †¢ Very slow new housing Market in Ireland †¢ Consumer confidence in Ireland hitting retail sales †¢ Continued contraction expected in Irish economy †¢ Manufacturing operations making a loss †¢ Over reliance on Merchanting operations Strategic Capability â€Å"The ability to perform at the level required to survive and prosper. It is underpinned by the resources and competences of the organisation† Johnson, Scholes & Whittington It is clear that Grafton have the threshold competences to meet customer’s minimum requirements, and also the threshold competences to provide the same as they continue to exist (and are in a decent position to go forward). But what are Grafton’s core competencies, (activities and processes that are difficult for competition to imitate), what are their unique resources (difficult for competition to imitate or obtain). And what are the critical success factors for Grafton’s customers (the product features especially valued by customers and therefore the company must excel at). As 85% of Grafton’s turnover comes from their merchanting division this is where we will focus. Some of Grafton’s Brands, Sbu’s and subsidiaries in Merchanting include: Ireland: Heiton Buckley Chadwicks Cork Builders providers Telfords Heiton steel UK: Buildbase Jackson Building Centres Macnaughton Blair Selco Builders Warehouses Plumbase (plumbing) CPI Euromix (mortar) Critical Success factors for customers (a sample of but not limited to): Quality service and products Reliable products services Speed of service National Distribution Online ordering / catalogue. Product knowledge and advice available Simple pricing Self service capabilities â€Å"One stop shop† capabilities Wide selection / availability of products hire services Prompt & accurate delivery of products/services Strong partnership team working capabilities Trade deals/initiatives (bulk buying, relationship development) Unique resources (a sample of but not limited to): Wide network of branches Vertically integrated operations Very experienced management team Backed by strong corporate parent Financial resources (over 300 million in cash) Experience of managing previous downturns Strong Brand equity, profile and Goodwill Ability to leverage position as largest mortar manufacturer National Distribution Network (Civil & Lintels) Core Competences (a sample of but not limited to): Corporate parenting Synergy managing Proven vertical integration abilities Cross SBU linkages Co-ordination of multiple and diverse activities Excellent Financial management First class customer service Mortar manufacturing (no 1 in market) Strong Management at SBU level Strong Value chain Strong Value network Strategic Marketing Autonomy at SBU level Market Development Product development and category management National and local distribution competences The above are some examples of the critical success factors Grafton Group need to excel at for customers, and some of the unique resources and core competences that help them to meet those CSF’s. By building those resources and capabilities that help Grafton deliver value for its customers and help obtain competitive advantage. Corporate Governance What is Corporate Governance? â€Å"Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society. † (Sir Adrian Cadbury, UK, Commission Report: Corporate Governance 1992) Ireland’s recent history of corporate governance has been highlighted with the governments bank NAMA, National Asset Management Agency. Builders, bankers and the senior public servants who failed to regulate these sectors are perceived to be getting off scot-free from the crisis they caused. â€Å"Sean Barrett – Irish Times 2nd September 2009 / Page 14 Brian Lenihan has taken action that is costing taxpayers billions of euro that would have not have be en required if Corporate Governance and common sense regulation was adhered to. The bank regulators, a supposed independent body, did not adhere to procedures and turned a â€Å"blind eye† to what was practiced over the last 20 years. â€Å"The state ownership policy should fully recognise the state-owned enterprises’ responsibilities towards stakeholders and request that they report on their relations with stakeholders. Guidelines on Corporate Governance of State-Owned Enterprises, Page 37 (2005) Making the right decisions with all the information without compromising the integrity of the organisation. [pic] Corporate Cartoons, Grinning Plannet Grafton Group’s Compliance with the Combined Code The Board is committed to maintaining high standards of Corporate Governance. The Board is accountable to the Company’s shareholders and this statement describes how it applies the principles of good governance set out in the 2006 FRC Combined Code on Corporate Go vernance which is appended to the Listing Rules of the Irish and London Stock Exchanges. The Board – who reports to whom? The Board of Directors is made up of nine members at 31 December 2008 comprising the Executive Chairman, three other executive Directors and five non-executive Directors. Mr. Anthony Collins, Deputy Chairman, is Senior Independent Director. The Board believes that it has the skills, knowledge and experience required by the scale, geographic spread and complexity of the Group’s operations. The Board routinely meets seven times a year and additionally as required by time critical business needs. There is also contact with the Board between meetings as required in order to progress the Group’s business. The Board takes the major decisions while allowing management sufficient scope to run the business within a centralised reporting framework. The Board has a formal schedule of matters specifically reserved for its decision. This covers the key areas of the Group’s business including financial statements, budgets, acquisitions, major items of capital expenditure and the strategic development of the Group. The Board’s responsibilities also include ensuring that appropriate management, development and succession plans are in place; reviewing the environmental and health and safety performance of the Group; approving the appointment of Directors and the Company Secretary; approving policies relating to Directors’ remuneration and severance and ensuring that satisfactory dialogue takes place with shareholders. The Directors have access to the advice and services of the Company Secretary who is responsible for advising the Board through the Chairman on governance matters. The Company’s Articles of Association and Schedule of Matters reserved for the Board for decision provide that the appointment or removal of the Company Secretary is a matter for the full Board. Directors have full and timely access to all relevant information in a form appropriate to enable them to discharge their duties. Reports and papers are circulated to Directors in preparation for Board and committee meetings. The non-executive Directors, together with the executive Directors, also receive monthly management accounts, various reports and other information to enable them to review the performance of the Group on an ongoing basis. The Board continues to hold the view that there are compelling commercial benefits to the Group and its shareholders in combining the roles of Chairman and Chief Executive and the holding of the combined roles by Mr. Michael Chadwick. The combination of the roles is balanced from a governance point of view by the strong input of the five independent non-executive Directors on the Board and the Board’s committee structure. Directors’ Independence and Board Balance It is Board policy that the Board should include a balance of executive and non-executive Directors such that no individual or small group of individuals can dominate the Board’s decision making. Five non-executive Directors, Mr. Anthony E. Collins, Ms. Gillian Bowler, Mr. Richard W. Jewson, Mr. Roderick Ryan and Mr. Peter S. Wood are considered by the Board to be independent of management and free from any relationship which could materially interfere with the exercise of their independent judgement. The Board has therefore determined all five Directors to be independent. Mr. Collins was appointed to the Board in 1988 and both Ms. Bowler and Mr. Jewson were appointed to the Board in 1995. The length of their service on the Board exceeds nine years and the 2006 FRC Combined Code provides that an explanation be made to shareholders concerning their continued independence. The Board considers that the integrity and independence of these Directors is beyond doubt. All three Directors are financially independent of the Company and have other significant commercial and professional commitments. The Company’s Articles of Association provide that one third of the Directors retire by rotation each year and that each Director seek re-election at the Annual General Meeting every three years. New Directors are subject to election by shareholders at the next Annual General Meeting following their appointment. It is Board Policy that non-executive Directors are normally appointed for an initial period of three years, which is then reviewed. It is also Board Policy that a non-executive Director who has served on the Board for more than nine years will retire annually and will offer him/ her for re-election in any case where it is proposed to exceed nine years. The overall composition and balance of the Board is kept under review. To allow corporate governance to drop in standards allows too many possible problems arise. Directors making short term decisions for their own benefit cannot be tolerated and without strong non-Executive Directors organisations have suffered. E. g. Enron, Independent News and Media. Performance of the Board Grafton Group’s long standing non Executive Directors have been re-elected at many AGMs which proves the confidence of their value to shareholders. At the beginning of the year their share price of building up to their financial report for 2010. When we were given Grafton Group as our project the share price was â‚ ¬2. 70, week of April 12 it is trading at â‚ ¬3. 40/share, an increase of 25%. Their board are doing a good job and have processes in place that do not allow any maverick activities. They tick all the boxes of operating independently of management. Insider dealing is not evident, â€Å"interlocking† does not exist similar to Jim Flavin, member of both Fyffes and DCC. The CEO of Woodies and Atlantic Homecare is Ray Coleman. Some would argue the same CEO of both could lead to conflict but as both have different strategies it make business sense for this to be the case. Corporate Social Responsibility – CSR and Ethics â€Å"The Grafton Group recognises the importance of conducting its business in a socially responsible manner. This is demonstrated in the way we deal with our employees, customers, suppliers and the communities in which we do business. The Group considers that corporate social responsibility is an integral element of good business management. Grafton Group Website â€Å"Business only contributes fully to a society if it is efficient, profitable and socially responsible† – Cannon (1992, p. 33) â€Å"Few trends would so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their shareholders as they possibly can†- Milton Friedman (1962) Grafton Group’s CSR is centred on the following areas. ? The Environment – Reduction of waste that impacts on environment, affiliation to Irish and UK environmental specialists. e. g. Biffpack in UK ? Health and Safety – Adherence to best practice for employees, customers and visitors to their stores Human Resources – Acknowledge the importance of employees to achieve success, reward them accordingly and become number one choice of employment in their field ? Community – Recognise the responsibility to the communities in which they are located, support local charities e. g. donated tools and equipment to Goal following Haiti earthquake in 2009 Grafton Group, we feel, is what all corporations do – tick the box of CSR! Very few Financial Reports had any reference to CSR until l ast 10-20 years. To make them stand out on CSR issues as Ben and Jerry’s Ice Cream or The Body Shop do, they would have to incorporate it into their overall business strategy. Would this give them a competitive advantage over their business rival? Would CSR promotion become part of their strategy? Our view is that a company in the industry it serves will be dictated by their consumers as to how important CSR really is. In Grafton Group’s case this will not happen. Their stance on CSR is Laissez Faire to Enlightened Self-Interest. The emphasis is mainly on their shareholder short term orientation i. e. highest profit as possible and adhere to the law at all time. They may worry about how they are perceived such as pension fund investors. They are definitely not a Shaper of Society where they influence society in a better light and not always driven by super profit making e. g. Paul Newman food investment and Niall Mellon Trust. Shareholder and Stakeholder Expectations and Influences The difference in both shareholder and stakeholder expectations is determined largely on the performance of The Grafton Group, history of performance, market in which it trades, promises made and promises previously delivered on. Since they began trading Grafton Group has consistently made profit and grown which has given shareholders a return on their investment. The collapse of the building trade in Ireland and UK has meant a large fall in share price but due to the market’s performance no shareholder could have expected anything else. Bob de Wit and Ron Meyer, 1998 describes the value perspective of shareholders and stakeholders and how, if any, interlink. In summary the difference is that shareholder’s perspectives have an ends, i. e. make a profit and value of company increases. Stakeholder’s perspectives have and ends and a means where profit is a want but not at the cost of something that would be considered unethical. The power that a board such as Grafton Group must withstand can determine whether shareholders or stakeholders have more of an influence on decisions than is healthy. â€Å"Power is the ability of individuals or groups to persuade, induce, or coerce others into following certain course of action. † Johnson, Scholes and Whittington, P160 If an organisation succumbs to the power of an outside influence their control is diluted. Some people within organisations, by right, have more power than other, e. g. the formal power a CEO enjoys. ? Legitimate Power: Power of the position, CEO ? Reward Power: e. g. Manager deciding who gets overtime Coercive Power: who decides on who gets the bad jobs to perform e. g. â€Å" if you do not do this you will not get the other†, bullying style ? Expert Power: This is more a personal power that a knowledge based professional may exercise ? Referent Power: This explains the influential power someone can exhort through charisma or personality traits e. g. Richard Branson of Virgin Group Johnson, Scholes and Whittington, P161 It is interesting that the brand power Woodies and Atlantic Homecare enjoy in the home DIY market sector is a symbol of power for both shareholders and stakeholders. Stakeholder mapping is an interesting way to determine the power and level of interest certain groups have in organisations. | |LEVEL of INTEREST | |LOW HIGH | | |A |B | |LOW |Minimal Effort |Keep Informed | |POWER | | | |HIGH | | | | |C |D | | |Keep Satisfied |Key Players | The level of interest within Grafton group lies mainly with employees, shareholders and Board of Directors. The Key Players are the Board of Directors and Shareholders as they have a vote as to who by and how the company is run. Stakeholders such as government are low in power and would have a low level of interest. Some of the manufacturing Grafton Group are involved in may require them to be socially responsible to the community in which they are located and must keep them informed of any changes that may affect them. They would have a high level of interest but a low form of power. Culture of Organisations and Grafton Group The culture of organisations is largely shaped by the founding fathers. For example Lever Bros. Ltd has a long tradition with social responsibility before it was known as CSR. William Heskeath Lever first established Port Sunlight village to improve the living conditions and well-being of employees of the Port Sunlight Soap factory. This created a culture of CSR which is maintained today. Similarly with the Grafton Group, CEO Michael Chadwick, has been with Grafton Group since he was 23 years of age. The culture of the company is largely a result of his business philosophies and strategies. We asked for an interview but we were declined, we asked for a list of questions to be answered if we sent them to his secretary and this too was declined so it is difficult to get an insight into his business philosophy. The Grafton Group do not apologise for being shareholder oriented in terms of profits in the form of dividends or company value increase. They have not allowed themselves be affected by the current economic climate and do not show any forms of strategic drift. Strategic drift is where organisational strategies develop incrementally on the basis of cultural influences and do not keep up pace with the changing environment in which they trade. Grafton have reacted to the downturn of their business and do not wait for changes to be made as reactionary. Henry Mintzberg has noted that â€Å"strategy is a pattern in a stream of decisions†. If decisions are made as a reaction to their environment it can be too late. Grafton Group’s Board of Directors is long serving and successful, due to this fact they have created a culture of expectancy for shareholders and for themselves to delivery. This behaviour filters through to line managers and front of customer staff (boundary spanners) to achieve success. The success of the past and alignment to environmental change has created a winning culture. They have created a theme around their strategy and have not deviated from it. They operate in Ireland and the UK in markets they understand and do not expand outside these industries. This helps succession planning for managers moving from business units to gain more experience keeping within the core competencies of the Grafton Group. Strategic Direction and Corporate level strategy Strategic Vision is a detailed future oriented vision of the strategic direction that a company is planning to take going forward, that takes into account the competences and capabilities that it both has and needs to achieve to achieve its vision. â€Å" A strategic vision is a road-map of a company’s future, providing specifics about technology and customer focus, the geographic and product markets to be pursued, the capabilities it plans to develop, and the kind of company that management is trying to create† (Thompson & Strickland 2001, P6). According to Johnson, Scholes and Whittington 2008, the â€Å"Exploring Corporate strategy model is made up of the corporate culture, business ethics, CSR, the strategic position, the strategy in action and strategic choices. Strategic choices encompasses some of the following areas of an organisation †¢ Business Level Choices †¢ International Choices †¢ Evaluation †¢ Innovation †¢ Corporate Level Choices Corporate Parent As we know the Grafton group encompasses many different brands, which is their cash generating and highly profitable business units. Throughout Grafton’s history they have managed to acquire many related business all in an effort to strengthen the group as a whole. Through this vertical integration Grafton have offered themselves many advantages and increased their competitive strength. Grafton’s strategic development has continued to grow with major acquisitions made both in Ireland and the UK such as 1990 – Macnaughton Blair, a Belfast based builders merchant †¢ 1994 – Bradleys and Lumley & Hunt plumbing and heating †¢ 1995 – P. P. S Mortars, silo plant based in Glasgow †¢ 1998 – British Dredging. Grafton were the first ever Irish company to acquire a British plc †¢ 2000-2002 – A total of 39 acquisitions were made, building the groups strength further in Ireland and the UK †¢ 2003 – Jackson Building Centres in England adding 18 branches and plumbline, Scotland’s largest independent plumber merchants. †¢ 2004 – The Grafton group officially makes its 100th acquisition †¢ 2005 – Grafton acquires Heiton Buckley. (www. graftonplc. com) As we can see here, Grafton has had a very strong acquisition based strategy to vertically integrate with all the suppliers and related business in an effort to grow in strength and position and to make themselves a real presence in the Irish and UK markets. However it’s all well and good to acquire all these other business, but what is the point in having them unless you can use them to your advantage. This is Grafton’s role and responsibility as the now corporate parent to all these acquisitions, to turn them from simply business units into strategic business units that will benefit the group as a whole and strategically fit. The corporate parent as a Synergy manager A corporate Parent identifying factors are a large corporate office with a main emphasis on facilitating cooperation across its SBU’s with a continued focus on cost reduction, scale related benefits, closer integration, branch consolidation and brand synergies. As a corporate parent to its SBU’s, Grafton group seeks to enhance value across its business units by managing and instilling synergies across its business units. The backward, forward and horizontal integration of its suppliers of raw materials and competitors has afforded Grafton a strategic advantage. In order to promote synergy management across its strategic business units, Grafton group tries to create the synergies by thinking holistically and viewing the SBU’s as interlinked with a common purpose between such as; ? DIY retailing – Woodies and Atlantic Homecare ? Manufacturing – CPI Euromix, MFP and Wright windows Merchanting – Heiton Buckley, Chadwicks, Cork builders providers and Telford The main point to remember is that the business units should benefit from the corporate parent by the co-operation between them that’s afforded by the corporate centre Grafton Group. A more streamlined UK merchanting business incorporating the Buildbase, Plumbase and Jacksons brands and specialist merchanting businesses is enabling a deeper integration of the overall business. The new structure will result in significant synergies beyond the rationalisation measures already implemented. These arise particularly in procurement, accounting and other central services. A single management team is now in place for all brands operating from a single head office location. Costs continue to be more aligned with sales and the management team works closely with the Group Chief Operating Officer in driving cost reduction, branch consolidation and brand synergies while leveraging scale-related benefits. With regard to synergy management the following questions should be answered: ? Is there common purpose between business units – YES ? Does parent try to achieve co-operation between business units – YES ? Provide central services and resources – YES In 2009 one of Grafton’s management priorities was â€Å"To unlock latent synergies in downturn†. (Grafton Financial results 2009 PP) Strategic Drift This is the tendency for strategies to develop incrementally on the basis of historical and cultural influences but fail to keep pace with a changing environment. (Liam Bolger, lecture notes 2009). Strategic drift is certainly not something that Grafton can be accused of as they react quickly to the economical downturn to keep themselves competitive, especially within the domestic market of Ireland where there core strength lies. Grafton Group has reduced their overall debt from â‚ ¬584 million (2005) down to â‚ ¬322 million (2009). The majority of this occurred in the last 2 years with a reduction of â‚ ¬228 million or 41% (Grafton Group plc final results 2009) Employee base reduced in both Ireland and UK Cost reduction initiatives progressed with significant results †¢ 18 locations consolidated /closed and 10 new locations added †¢ Credit terms from suppliers renegotiated †¢ Debtors managed tightly with significant cash generation †¢ Costs rationalised in 2009 by â‚ ¬80 million Further plans to manage through 2010: †¢ Further rationalisation costs to be incur