Tuesday, December 31, 2019

Financial Statement Analysis For Blackmore Company Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1504 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? To get an understanding of Blackmore Company financial position, and what need to be done to improve its performance, some financial ratios were calculated. The liquidity ratios calculated include the current, quick asset, cash and working capital ratio. On management of debt, total debt to total asset, debt to equity, long term debt, and time interest earned and cash ratios. Don’t waste time! Our writers will create an original "Financial Statement Analysis For Blackmore Company Finance Essay" essay for you Create order The activity ratio include inventory, receivable, total asset and working capital turnover. Profit margin, return on asset and equity ratio were calculated as measure of profitability, were calculated. Finally on market value measures, price earning, market share price to book value ratios together with dividend yield and payout were calculated. The conclusion and recommendations were based on the results of the financial ratio. Introduction Financial ratio is the mathematical relationship between two or more element of a companys financial statement. Ratio analyses are applied in the financial statement to analyze the success, failure and progress of the business. This analysis enables the business owners or manager to know the trends in the business and compare its performance and condition with the average performance of similar business in the same industry (Financial Ratio Analysis, 2010). The external users of the financial ratio include the creditors, suppliers, customers, stockholders and investors. Ratios are classified according to the information they provide. The most frequently used ratios are Liquidity ratio, which provide information about a firms ability to meet its short term obligations. Activity ratios indicate how efficiently the firm utilizes its asset. Financial leverage ratio provides an indication of the long-term solvency of the firm. The success of the firm in generating profit is measured using profitability ratio. Certain problem while using the ratio is comparison between companies or industries can be difficult due to difference in worldwide standards. Although ratios are not meaningful on a standalone basis they are useful when compared with the company historical performance. This historical data do not provide direct looking information, (Financial Ratio, 2010).One cant predict future performance based solely on these ratios since circumstance such as competitive pressure and economic condition can change quickly. Lastly, is that ratio are subject to the limitation of the accounting methods. Different accounting choices may result in different ratio values. Liquidity ratio Liquidity ratio measures the company ability to pay its short term obligation. The greater the coverage of liquid asset to short term obligation the better as it is clear sign that the company can pay its debt in future. Company with low coverage will raise a red flag for investor as it may be a sign that the company will have difficulty meeting its running operation and obligation. Current ratio is one of the best known measures of financial strength and the general accepted ratio is 2:1 Quick ratio a liquidity ratio is one of the best measure of liquidity (Financial ratio analysis, 2010) which concentrate on liquid asset after you have removed inventories .A ratio of 1;1 is considered satisfactory unless majority of this liquid asset is account receivables. In all the 3 years of Blackmore Company the ratio is below the accepted level. If revenue disappear the company could not meet its current obligation Working capital is more of a measure of cash flow than ratio (Financial Ratio Analysis, 2010).The result of this calculation must be positive number. Bankers look at net working capital to determine the company ability to weather financial crisis as loans is tied on this working capital. In the year 2008 the ratio was at its lowest and this shows the company cant survive during financial crisis as it will not raise loan from banks. DEBT MANAGEMENT /SOLVENCY RATIO Solvency ratio indicates the extent to which the business is reliant to debt finance. Total debt ratio, compares company total debt to its asset which is used to gain a general idea as to the amount of leverage being used by the company (Engel, 1996). In the year 2007 55% of total asset was debt financed, 83% in 2008 and in 2009 is expected to be 44%.The high percentage in year 2008 shows high leverage and weak equity position. Debt -equity another measure of a companys leverage compares the company total liabilities to the total shareholders equity. It measures how the suppliers, lenders and creditors have committed to the company versus the shareholders (Penwell, 1994). In the year 2007 they committed 121% what the shareholders had contributed,482% in the year 2008,and it is expected to be 79% in the year 2009.Long term debt ratio also known as capitalization ratio the debt component of the company capital structure. Blackmore Company has low level of debt ratio expectation in the year 2009 of 11% compared to the result of 25% in the year 2008 and 22% in 2007.Interest coverage ratio is used to determine how easily a company can pay interest expenses on the outstanding debt. The lower the ratio will be an indication of how the company is burdened by debt expense. In 2008 the ratio was 0.96 this raise question on the ability to meet its interest expenses ASSET MANAGEMENT OR ACTIVITY RATIOS Inventory Turnover= Cost of good/Inventory Receivable turnover=Sale/account receivable Total asset turnover=sales/total asset Activity ratio have differing inputs and measures different segment of company overall operation performance. This gives users an insight into the company performance and management during the period. The ratio looks at how the company turns its asset to generate revenue. Fixed asset turnover measures the productivity of a company fixed asset in respect to generating sales. In 2007 it was 9.95 a decrease to 6.42 in 2008 and was expected to be 8.61 in 2009.Inventory turnover which is reported as inventory period is the number of days worth of inventory on hand is calculated by dividing inventory by average daily cost of goods sold. The more time the inventory is turned in a given operating cycle the greater the profit. In the year 2009 it was expected to be 107 days compared to 85 days in 2008 and 91 days in 2007.Receivable turnover is an indication of how quick the firm collect its account receivables. When turnover is high the collection period time will be less. In year 2007 it was 37 days,38 days in 2008 and 46 days in 2009 as the turnover decreased to 8.01 times PROFITABILITY RATIO Profit margin=net income/sales Return on asset=net income/Total asset Return on equity=Net income/total equity The ratio measures the success of the firm at generating profit. Return on asset measures how efficiently profits are being generated from the asset employed in the business compared with the ratio of the firms in similar business (Horne Wachowicz, 1994). In 2007 it was 5.96%Return on equity ratio tell the owner whether or not the effort put into business has been worthwhile. In 2007 it was 13.25% decreased in 2008 and is expected to increase in 2009 to 12.99%. The objectives of the profit margin analysis are to detect consistency in company earnings. Positive profit margin translates into positive investment quality (Financial ratios tutorial, 2010).Blackmore case was inconsistent in that in 2007 it was 2.56% while -2.65% in 2008 and it was expected to be 3.61%. MARKET VALUE MEASURES Divided yield =DPS/MPS Dividend payout =DPS/EPS Price Earnings ratio (P/E) MPS/EPS Market to book ratio = MPS/Book value per share Dividend payout ratio is an indication of how well earnings support the dividend payment (Financial ratios tutorial, 2010). In 2007 it was 25%, 6.87% in 2008 though there was a loss. In 2009 it was expected to be 21.7%Market to book ratio indicate how much shareholders are paying for every $1 asset of the company. In 2007 it was 1.28, 0.46 in 2008 and it was expected to be 1.56 in 2009.the dividend yield in 2008 was high the company made losses during the period, The price earnings ratio was negative in 2008 and it was expected to be 12 in 2009 Recommendation To improve on the liquidity, Blackmore should pay some debt, convert noncurrent asset to current asset, put profit back to business, and increase its current from new equity contribution, loan and other borrowings with maturity of one year. Debt management ratios can be managed by the company repaying its debt or increase its equity contribution. This repayment will improve the capital structure of Blackmore and this will lead to a reduction debt expenses thus an improvement in profitability ratio. On the return to profitability, the shares price in the market will improve thus an improvement in market value measures. Conclusion Blackmore Company performance in 2008 was negative as confirmed by the calculated ratios. Its liquidity in 2008 was average compared to 2007.The company will still pay its short term obligation but it may strain if there is financial crisis. The company was also heavily indebted in 2008 as its total debt to equity was 4.82 and the time interest earned was 0.96 compared to 4.34 in 2007.The cash coverage was also lowest in 2008 compared to4.78 in 2007.The profitability ratio was negative since the company had acquired so much debt thus much cash was used in payment of interest. Activity ratio was okay compared to 2007 since there was no much difference in values calculated. This showed consistency in management of company resources. The market share price of Blackmore Company was low in 2008 due to the negative profit and investors did not prefer it.

Monday, December 23, 2019

Racial Discrimination And Related Treatment Of African...

According to Merriam Webster, Racism is defined as â€Å"a belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race† (Merriam Webster, n.d.). Knowing this, Racism is certainly not particular to the United States of America, As Alex Haley, the author of Roots, told Scott Ross, CBN journalist, in a 1992 interview, â€Å"If you think about it, †¦there is no grouping of people to my knowledge, of any consequence, who have not, at one or another time, been the object of hatred, racism, or who has not had people against them just because they were them† (Ross 2016). Racial discrimination and related treatment of African Americans over the decades may be deeply rooted in American culture. In fact, it can be traced to the Founding Fathers. As history tells us, two of the most famous Founding Fathers owned slaves, and it goes without saying that for one to justify another†™s enslavement—as did wealthy American colonials—that person would have to hold to the belief that the slave is by definition, and inferior being. Our first and third presidents: George Washington and Thomas Jefferson were slave owners and their treatment of African Americans is well documented. (Smithsonian, 2015) The dehumanizing way Early Americans treated Africans who were imported as slave labor became universally accepted among the population from the very beginning while still under British rule. In spite of theShow MoreRelatedRacial Discrimination Against African Americans857 Words   |  4 Pagessome legal organizations and communities that related to the racial discrimination issues in America (United States Department of Labor). Moreover, some of the sources also retrieved from well-known American newspapers, such as Washington Post (These ten charts show the black-white economic gap hasn’t budged in 50 years, 2013), which make the data and informa tion are always pay attention and focused on problems that happened in America based on American perspective. Another reason that makes the sourcesRead MoreRacial Discrimination Of The United States1233 Words   |  5 PagesIntroduction Racial discrimination is defined as â€Å"when a person is treated less favorably than another person in a similar situation because of their race, color, descent, national or ethnic origin or immigrant status† (Thomas). Racial discrimination in the workplace is a real problem in our world today. Not only is it against the Constitution, but it is morally and ethically wrong. Throughout history, many people have fought for equality among races, and the fact that racism is still an issue inRead MoreNo Officer, I m Not A Criminal?1415 Words   |  6 Pagesfaults in another. Race is one of these faults, and is a huge cause in civil rights violation. The dictionary defines racial profiling as, â€Å"the use of race or ethnicity as grounds for s uspecting someone of having committed an offense†. However, in reality, racial profiling is violating the civil rights of minorities and Muslims. According to the National Institute of Justice (NIJ) â€Å"Racial profiling by law enforcement is commonly defined as a practice that targets people for suspicion of crime based onRead MoreEssay on The Criminal Population and African Americans1105 Words   |  5 PagesAfrican Americans are targeted by law enforcement more often than any other race (Toth, Crews Burton, 2008). 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Therefore, it was a lot of research comes fromRead MoreDiscrimination Against Blacks Or Races Of Darker Skin Tones1212 Words   |  5 PagesIn other words, discrimination against blacks or races of darker skin tones is a learned behavior from an early age and results in the ignorance of thinking anyone with skin of a darker tone is unwanted in society. Over generations, it is clear to see that society portrays people with darker skin tones to have negative images which leads to low self-esteem. Low self-esteem then leads to social skills being hindered due to the fact that an individual feels insufficient or senses they are viewed asRead MoreRacial Discrimination858 Words   |  4 PagesResearch topic: Does racial discrimination cause poverty among black people in America? The scene of ghettosThe with poor living conditions of the ghettos in whichwhere black people live is not uncommon., Iit actually manifests a larger picture of racial discrimination which is closely related to poverty. Racial discrimination is about the pre-conceived notion that black people are inferior; they are more prone to violence and totally relianty on social welfare to survive. As a result of theseRead MoreCancer Survivors1298 Words   |  6 PagesSurvivors by Race and Ethnicity. American Journal of Medical Quality: The Official Journal of the American College of Medical Quality, vol. 30, no. 5, Sept. 2015, pp. 459-469. The study discussed in this article explores factors that can explain the medical care access inequalities between cancer survivors of different races and ethnicities. The article argues that when white and minority cancer survivors are compared for their likelihood of engaging in treatment, minorities are less likely toRead MoreRacism Essay785 Words   |  4 PagesRacism is a harsh word that includes both attitudes and actions. Racism is unequally treating others because they belong to a certain racial or ethnic group and thinking they are inferior to your ethnic group. Sociologists have defined racism as the perception and treatment of a racial or ethnic group, or member of that group, as intellectually, socially, and culturally inferior to one’s own group. It is more than an attitude; it is institutionalized in society. Racism is a silent disease that isRead MoreRacism Is Not As Cruel Essay1679 Words   |  7 PagesRacism is defined as â€Å"Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one s own race is superior† (Oxford dictionary, 2016). It is obvious that racism in America is not as cruel as how it use to be many decades ago, as someone’s skin colour or beliefs cannot dictate his or her own rights and freedom. However, racism has never gone away, it remains an issue and a struggle to this day. Numerous people may believe that America has transformed

Sunday, December 15, 2019

The Communication of Window Displays Free Essays

‘Windows reveal the soul of the store’ (Portas, 1999: 41). Every store has its own concept that characterizes each display, varying from theatre, drama or in the case of Armani Exchange minimalism. Well-dressed windows are undoubtedly, a dynamic form of advertising for products reflecting the stores’ brand image. We will write a custom essay sample on The Communication of Window Displays or any similar topic only for you Order Now This essay seeks to evaluate how A|X Armani Exchange’s window displays communicate to spectators with the use of various resources. Armani Exchange is one of the sub-brands under the parental brand of Giorgio Armani. The use of colour, lighting, props and graphics can capture interest, indicating the foundation of any decent display whose aim is to get people off the street. Windows are used as a selling device promoting products. They also mirror what the store is about, bringing pleasure to the eye. A stores’ window is effectual if it tempts customers who will want and be able to purchase the products offered, conveying quality, style and pricing (Portas, 2007). Moreover, windows can lure someone in a shop due to psychological factors. Brand founders such as Armani and Dior, give their own unique identity on their products and are therefore based on persona. As an online source says ‘Armani Exchange has become one of the most dynamic collections with its own unique identity, as well as an ever-growing base of young customers’ (www.ameinfo.com/192218.html). City life is emitted through its concept of sexy, chic and stalwart garments. Hence, it can be said that quality along with brand loyalty comes before the cost. Windows work on the principle â€Å"first impression is the best impression†, implying that only a few seconds are needed for a display to â€Å"speak† to a passer-by and get him/her inside a store. Portas asserts that ‘visual merchandising is the art and science of silent selling, bringing product, environment and space into one stimulating and engaging display to encourage sale’ (Drapers, O ctober 29: 34). This is shown by the power of Armani Exchange’s logo -with grey background and white letters signifying practicality, neutrality but also timelessness- which is becoming more and more recognisable. Furthermore, Armani Exchange’s target customers are both independent male and female who have their own style, belonging in the age group of 16-35. It is more accessible to the bourgeoisie, who want a taste of the luxurious brand. Given that prices are lower than the rest of the Armani sub-brands, the apparel is more inclusive to the public. This stores’ clientele may work as managers, interns or may even be students living in East London. Additionally, they may go out for a drink, coffee or shopping at least once a week, or read magazines like Vogue. Other stores they visit include Zara and Benetton. What is more CPI is escalating; competition is astonishingly high while consumer spending started to fall as September figures show because of pessimism (www.guardian.co.uk, 2010). As a result, retail sales are expected to fall in the following months, along with a rise in VAT. Armani Exchange windows’ are open-back; implying there is ‘no back wall’ (Morgan: 44). The striptease effect is clear as we can see the internal displays emphasizing the focal point through the space between the mannequins, creating a more intense visual impact, which is representative of the merchandise of the store. A|X shows the garment’s prices at the bottom of the windowpane. Lighting from the ceiling and floor is ambient acting as a catalyst for the area (www.infostore.gr. 2010), as Figure 1 shows: Figure 1: The window shows A|X Armani Exchange’s front window in Regent Str. London, October 19, 2010 Source: Kaisidi, 2010 For autumn/winter 2010, Armani Exchange trails a repetition of dark shades evoking a monochromatic colour scheme exerting sophistication and a clean look, which are pleasing to the eye. Materials like leather and fur with metallic details indicate luxury mixed with a touch of mystery, illustrating an intellectual and confident appearance. However silver and gold details on the garments complement the black shades, making the pieces more youthful. A downside of open windows is that high-priced items showcased can be tampered if somebody wishes to feel the fabric, so they are trickier to dress. Besides that another negative aspect is that windows are not as creative since there are fewer props. Hence there is no story to tell. Silhouettes are simple yet authoritative and influential. Effective windows can ‘seduce’ (Portas, 2007: 54) you to purchase something you did not intend to. Buying even a small item, one satisfies a need, a want to feel more contented and self-confident. Also, what you wear is what defines you, reflecting your personality- as implied by Berger (1972). Windows can sway someone into investing in a garment that will make them enviable and glamorous at the same time. ‘The power to spent money is the power to live’ (Berger, 1972: 143), implying that each person interprets the world differently- the same applies in window displays. Armani Exchange has a very clean approach of â€Å"less is more† by not overloading its windows together with being â€Å"strong and simple† emphasizing the brand’s power (http://ezinearticles.com, 2010). Furthermore, by following the â€Å"fresh is best† principle in accordance with Berger (1972), they renew their displays every week thus regular customers find new stock in every visit. Still though, A|X receives deliveries every 3-4 days so that monotony is avoided. For that reason, if a jacket is received in the middle of the week, it will be put on display on that day. Visual merchandising makes ideas come alive whose purpose is to sell commodities through visualization, as induced by Clements (2010). Armani Exchange wants its customers to experience the brand with the aid of visuals. Particularly the three-dimensional sightline placed parallel with the double doors in the Regent Street shop ‘gives energy’ (Portas, 1999: 102), as shown by the image below. Figure 2: The window portrays a 3D advert for A|X sunglasses in London, October 21, 2010 Source: Kaisidi, 2010 Christmas windows however, ought to be more interesting and intriguing. Armani Exchange Christmas decoration is ruled by special effects lighting and radiation. Oval rings are beaming light that changes colour every few seconds; a different look tried by A|X. The rings are symmetrically placed next to each other, as it is clearly illustrated in the following picture: Figure 3: The window illustrates A|X Christmas dà ©cor in London, November 20, 2010 Source: Kaisidi, 2010 Despite having a sale, windows were not unattained (Portas, 1999), since signage advertising the offers are placed. What is more, it urges spectators to celebrate style with the vinyl on the windows’ glass, exploiting psychological factors to lure in onlookers. After questioning 40 citizens, calculations show that 46% found the displays of A|X attractive, although 8% felt that it did not stand out. The effect of these circles illustrates gravity, communicating with the pavement (Portas, Mary Queen of shops-Blinkz DVD). They work as pause points as they can be seen from afar, making the passers stop and browse the new collection. The aesthetic balance of the store emphasizes how the power of light can visually transform a space. One could argue that the density of the garments in Armani Exchange’s windows is just enough to fill the space available given add-ons such as bags and wallets. This is shown with Figure 4: Figure 4: The window shows A|X latest collection 3 weeks before Christmas in London, December 3, 2010 Source: Kaisidi, 2010 Mannequins are said to be a mighty tool, forming the scene of a display. In A|X, mannequins are golden and headless in order to appeal to a wider audience (Pegler, 2008). The mannequins’ outfits offer a possible wearable suggestion in which one could walk out of the store with having a feeling of fulfilment. Mannequins are front facing, but the passers can observe all the angles, as suggested by Morgan. To conclude, window displays need to clearly define the identity of a store. A|X ‘serves as the ultimate testimony to the power of the brand’ (Roll, 2010). The visual placement of the store is rather simplistic so people may think it is too plain. Equally, others who are fond of minimalism obtain a positive vibe for the specific windows, which are a compelling representation of the brand ethos. A|X has an identifiable and cohesive commercial image, which triggers the clients’ interest in conjunction with facilitating communication. All in all, Armani Exchange window displays are effective for their target customers, as they communicate their minimalistic message emitting an aesthetic purity of warmth and luxury. According to G.U Journal of Science there has not been significant empirical evidence regarding the effect of window displays on consumers’ shopping attitudes’ (2007: 33). Bibliography http://ezinearticles.com/?Window-Displays-That-Work!id=4390505 How to cite The Communication of Window Displays, Essay examples The Communication of Window Displays Free Essays Retailer:Ted BAker Word Count: 1268 The Communication of Window Displays â€Å"Visual merchandising is an indispensable retail discipline, consisting of a series of practical selling tools that are used to influence what and how much consumers buy† (McKeever, K. 2008). A window display represents the various dynamics used to communicate a message to its target audience. We will write a custom essay sample on The Communication of Window Displays or any similar topic only for you Order Now This essay will analyse the way in which Ted Baker conveys its position in the market and brand identity by effectively portraying quality and attention to detail in its window displays. This essay will then compare the successfulness of two different approaches – â€Å"theme focussed display†, and â€Å"product focussed display† – in enticing Ted Baker’s potential customers. This will develop a conclusion on the effectiveness of Ted Baker’s window displays to act as â€Å"silent sellers† (Levine, P. 2008) and enable customers to relate to the brand. Ted Baker uses elements such as the psychological effect of colour, lighting and appropriately chosen props to enable its customer to interpret its position in the market as an â€Å"upper high street brand†. Figure 1: Use of luxurious colours by Ted Baker ( Source: Vaswani, 2012 In various online customer reviews (yelp. com, zappos. com), the attributes that Ted Baker’s products are associated with are commitment to quality and unwavering attention to detail. Interviews with 30 onlookers regarding the window displays on Regent Street revealed that the use of luxurious colours (browns, rich reds, strong neons) along with the warm yellow lighting are the factors that enabled the customers to interpret the quality of the products to be superior. Additionally, the props used in the Ted Baker windows highlight the attention that is devoted to details at the micro level, not only in the products, but also in the window displays. The importance of using appropriate props is highlighted by Tony Morgan’s (2011, p54) statement, â€Å"Props should be relevant to the merchandise to make the overall idea come to life†. In line with this, Ted Baker used bows and arrows as props to complement their autumn winter â€Å"Survival of the Fittest† collection. These props provide a wild and â€Å"outdoorsy† feel to the window. This proves that there is a deep level of intricacy that has gone into the selection of the props used in the window displays. This supports the upper high street positioning of the brand within the market. All these factors confirm that Ted Baker’s usage of the above elements is effective in conveying its market positioning. A comparison between the effectiveness of a â€Å"theme-focused† and â€Å"product-focused† display will establish whether Ted Baker’s frequent usage of themes in their windows is the right approach to capture the attention of potential customers. For their display in October, Ted Baker had ingeniously used the theory of â€Å"the survival of the fittest† to create a humorous theme in their window supporting their autumn/winter merchandise. Figure 2: Survival of the fittest themed window Source: displayhunter. com, 2012 Charles Darwin (1869, On the origin of species) explained â€Å"survival of the fittest† to be â€Å"the natural selection, or the preservation of favoured races in the struggle for life. † The message behind the story in the display is that Ted Baker merchandise is the â€Å"fittest† and would transcend the wearer from the ordinary. By labelling their merchandise as the â€Å"fittest† and rather a necessity, the brand teasingly talks about how the upcoming autumn winter weather is going to be a struggle. Interpretations of several passers-by confirm that this theme was making a joke about the â€Å"Great British weather† and the only way to conquest this struggle was to wear Ted Baker’s merchandise. Figure 3: Christmas with Frosty Source: Vaswani,2012 The most recent window display, the Christmas display, paints a picture of a Christmas party, the guest of honour being a drunken snowman named â€Å"Frosty† in a festive red thong and Santa Clause hat. The visual merchandising team believe that the movement of the snowman captures attention as peoples’ eyes are drawn towards motion. This statement was confirmed by primary research and observation. Out of a sample of 100 people passing by the shop, seven out of ten stopped to look at the window display (A few even took pictures with the snowman in the window) Five out of these seven went into the store. Figure 4: Frosty the snowman Source: Vaswani, 2012 In both these window displays, Ted Baker uses humorous themes to engage its quirky target audience. The window displays act like â€Å"silent sellers† because they successfully convert onlookers into customers by reeling them in. However, in the second week of October, Ted Baker used a more product-focused window to display their collection. The sales assistant at the Regent Street store identified that the merchandise displayed was mainly evening wear that could be worn for occasions like upcoming Christmas parties. The mannequins were placed in repetition, which â€Å"reinforces and strengthens the impression through replication† (Gorman,G. 996 Visual Merchandising and store design workbook, p20). Also the background was a mirror, â€Å"people tend to slow down when they see reflective surfaces† (Underhill, 2002, Why we buy, p76). The window did have these two strengths but interviews with in-store customers established that the display looked â€Å"boring† and â€Å"as if very little thought and effort had been put into it†. A customer also quo ted, â€Å"In comparison to the exciting displays from earlier, this one is a let down†. Figure 5: Ted Baker’s product focused display Source: Vaswani, 2012 The sales assistant at the Regent Street store identified that the merchandise displayed was mainly evening wear that could be worn for occasions like upcoming Christmas parties. The mannequins were placed in repetition, which â€Å"reinforces and strengthens the impression through replication† (Gorman,G. 1996 Visual Merchandising and store design workbook, p20). Also the background was a mirror, â€Å"people tend to slow down when they see reflective surfaces† (Underhill, 2002, Why we buy, p76). The window did have these two strengths but interviews with in-store customers established that the display looked â€Å"boring† and â€Å"as if very little thought and effort had been put into it†. A customer also quoted, â€Å"In comparison to the exciting displays from earlier, this one is a let down†. This means that, the Ted Baker customer expects excitement and an engaging theme in the windows. Also based on the description of the windows by the customers, the reflection of the brand’s personality is key to Ted Baker’s display. Evidently, a product-focused window display is inept in this aspect. â€Å"A stores’ window is effectual if it tempts customers†(Portas, 2007). This statement creates stress on the fact that the window display was ineffectual due to its inability to lure customers. From this comparison, we can conclude that, â€Å"theme-focused† window displays are more effective than â€Å"product-focused† display as they create visual excitement and help the customer relate to the brand. The Ted Baker customer enjoys the portrayal of the brand’s humorous and quirky image through its engaging and impactful themes. In conclusion it can be said that, through its window displays, Ted Baker communicates its position of being an upper high street retailer in the market. For this, it uses to its advantage the psychological effect created by colour and lighting and the appropriate usage and selection of props in its window displays. The windows are a true and effectual representation of the brand’s core values which are- quality and attention to detail. Ted Bakers frequent use of â€Å"theme-focused† window displays is a powerful and efficient approach to draw in their target customers who expect enthusing displays that would make them engrossed and curious. Finally, the strategies and approaches that Ted Baker uses in the creation and execution of its window displays are effective â€Å"silent sellers†. REFERENCE LIST: Darwin, C (1869). On the origin of species. 5th ed. Gorman, G (1996). Visual Merchandising and store design workbook. Ohio: ST Media Group Publisher. p20. Levine, P. (2010). Visual Merchandising: The ‘Silent Salesperson’. [online] Available: http://www. salesandmarketing. com/article/visual-merchandising-silent-salesperson. Last accessed 25th September 2012 McKeever, K. (2008). favourite quotes. Available: http://thevisualmerchandisingblog. ordpress. com/favorite-quotes/. Last accessed 20th September 2012 Morgan, T (2011). Visual Merchandising: Window and in-store displays for retail. 2nd ed. London: Laurence King Publications. p54. Portas, M (2007). favourite quotes. Available: http://thevisualmerchandisingblog. wordpress. com/favorite-quotes/ [online] Last accessed 20th September 2012 Underhill, P (2 002). Why we buy. New York: Simon and Schuster. p76. http://www. yelp. com/biz/ted-baker-london-new-york (2012) [online] last accessed 27th September 2012 http://www. zappos. com/ted-baker (2009) [online] last assessed 27th September 2012 REFERENCE LIST FOR IMAGES: Vaswani, D. (2012) Figure 1:Use of luxurious colours by Ted Baker [Photograph]. Regent Street Store Figure 2:Survival of the fittest themed window(2012) [online image]. Available at: http://displayhunter. blogspot. co. uk/2012/11/ted-baker-hunting-game. html [Accessed 23rd November 2012] Vaswani, D. (2012) Figure 3:Christmas with Frosty [Photograph]. Regent Street Store Vaswani, D. (2012) Figure 4:Frosty the Snowman [Photograph]. Regent Street Store Vaswani, D. (2012) Figure 5:Ted Baker’s product focused display [Photograph]. Regent Street Store BIBLIOGRAPHY: Cabezas, C (2010). Design Techniques for window dressing: Ideaspropias Editorial Danzinger, P (2002) Why people buy things they don’t need New York: Paramount Market Publishing Din, Rassheid (2000) New Retail London: Conron Octopus Limited Eszter Czibok. (2012). The window- a reflection of our desires. Available: http://workinginthewindow. wordpress. com/tag/window-display/. Last accessed 2nd November 2012 Gardner, A (2000) The 30 second seduction California: Seal Press http://fre23media. blogspot. co. uk/2010/11/window-displays-original-communication. html. 2010). Window displays: the original communication tool. Available: http://fre23media. blogspot. co. uk/2010/11/window-displays-original-communication. html. Last accessed 3rd November 2012 Holly Bastow-Shoop . (1991). Visual Merchandising: A guide for small retailers. Available: http://ncrcrd. msu. edu/uploads/files/133/NCRCRD-rrd155-print. pdf. Last accessed 11th October Kaisa Leinonen. (2010). Autumn/Winte r 2010 Trend Report: Mirrors as Display Props. Available: http://thewindowdisplayblog. com/2010/11/01/autumnwinter-2010-trend-report-mirrors-as-display-props/. Last accessed 11th October Marie, S. (2006). A History of Visual Merchandising in Retail Stores. Available: http://sarahmarie1. hubpages. com/hub/A-History-of-Visual-Merchandising-in-Retail-Stores. Last accessed 9th October 2012 Messaris, P (1997) Visual Persuasion- The Role of Images London: Sage Publications Sturken, M , Cartwright, L (2000) Practices of Looking- An introduction Oxford: Oxford University Press Sussen Madden Understand visual merchandising for a small business. Available: http://www. retailtraining. ie/pdf/Unit-259. pdf. Last accessed 3rd October 2012 How to cite The Communication of Window Displays, Essay examples

Saturday, December 7, 2019

The Hunger Games Character Essay free essay sample

The character that I felt strongly about from Suzanne Collins’ hit novel â€Å"The Hunger Games† was Katniss Everdeen, a rebellious and out-going teen who takes her sister’s place as tribute in the 74th annual Hunger Games. Throughout the novel, she displays important values that made me feel strongly about her. These include, her caring nature for others, Competitive attitude and her determined mind. Katniss Everdeen (the main character) is a teenage girl who lives in an impoverished coal-mining region in the country of Panem. She showed no fear when she took her sister’s place as tribute as she knew that she had made the morally correct decision. After her father sadly perished in a tragic mining explosion, she learned to fill her father’s shoes as her mother was in no state to support her family. It was Katniss’s strong-willed mindset that got her and her family through those though times. We will write a custom essay sample on The Hunger Games Character Essay or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Although she continually displays her traits throughout the novel, she does learn some new values that aid her whilst in the Hunger Games arena. She becomes tactically aware and learns not to trust people as she is in a kill or be killed environment. The main value that made me feel strongly about Katniss was her determination to get things done. Growing up in harsh conditions, â€Å"where you can starve to death in safety† taught Katniss to rebel against the rules in order for the survival of herself and her family. With no father and very little income from her mother, there would be numerous nights where her family would have to go to sleep with an empty stomach. Fortunately, Katniss, an experienced Archer could hunt game to either sell or eat. She was the wax that kept her family’s candle of life burning. It was slow-going at first, but I was determined to feed us. I stole eggs from nests, caught fish in nets, sometimes managed to shoot a squirrel or rabbit for stew†¦I kept us alive†. In her modest self, she would say that she is ‘average’ at archery, however she is truly outstanding. â€Å" She’s excellent,† says Peeta. â€Å"My father buys her squirrels. He always comment s on how her arrows never pierce the body. She hits every one in the eye. † Her determination also helps her survive inside the Games arena. Once the rules of The Games were changed, the best tactic was teamwork. Unfortunately, Peeta, the other District 12 tribute, was badly injured. However, the Gamemakers placed one item in which each District needed the most, and District 12’s was an antidote for Peeta. Peeta held Katniss back as it was an extremely risky and dangerous procedure. Katniss was determined to heal Peeta, so she set out for the item aware of the danger that will follow. â€Å"Without hesitation, I sprint for the table. I can sense the emergence of danger before I see it. † She wasn’t going to let anyone stand in her way. These acts of determination inspired me to try my best in everything I do. By witnessing her actions, I have gained useful values, which I can apply in different aspects of life, whether it is out on the sports field or in the classroom. Determination is a key value that is demonstrated very convincingly by Katniss, that is why I felt strongly about her. Another key value that Katniss expressed in The Hunger Games that made me feel strongly about her was her caring nature for others. I believe that this is her strongest value because she is kind and cares for everyone, however, mostly her sister. A prime example of her caring for her sister is when she takes her place as tribute. She does this, as she knows that Prim has no chance of winning and surviving. â€Å"I volunteer, I volunteer as tribute† were the words she said as she placed her younger sister into the safety of the crowd. As a result of this brave action, she is given respect from the crowd, when they raise three fingers to their lips. Another example of her caring nature that made me feel strongly about her was when she laid flowers on Rue when she died in The Games. Rue became Katniss’s companion after Rue saved Katniss from getting attacked by tracker-jackers, a more lethal type of wasp designed by the Gamemakers. It is apparent that Katniss cared for Rue even though they were from different districts, because Katniss sang a song to Rue who was in the last stages of her life. Katniss shows her true inner self by expressing her emotions she even lets out tears. â€Å" For a moment, I sit there, watching my tears drip down on her face†. It is the caring Katniss that really inspires me. I wish I could bring myself to sacrifice yourself for someone else, when you know that you are putting your life on the line, and I’m sure many people would also be unable to do that as well. Her caring nature links back to her determination. Her goal is to look after her younger sister through the times that she is legible as tribute for The Hunger Games. She cares about her sister’s safety and will do anything that is possible to look after her. This value is very creditable but is also hard to master. Seeing Katniss display this quality makes her a role model that many people, who have read the novel, including myself, aspire to be like her. Katniss Everdeen also shows her competitive attitude. This made me feel strongly about her as I could relate it to things that I do myself, such as sport. However, she is competitive to stay alive in the Games and competitive to survive in her district. She has to be competitive In order to survive in not only The Hunger Games event itself but also back home in District 12. She is lucky that there is only a minority that dares to going hunting in the woods, but she needs to have the cleanest kill so that the baker will buy her squirrels instead of another person’s kill. â€Å"He always comments on how her arrows never pierce the body†. From a very young age, Katniss has developed her competitive nature because she has had to scavenge for food, especially after her father’s death. He always comments on how her arrows never pierce the body†. She is also competitive during the games, when see is standing in the starting circles and see is eyeing the equipment up. â€Å" I’m fast. I can sprint faster than any of the girls in our school† â€Å" I know I can get it, I know I can reach it first† . This competitive attitude was a quality that kept Katniss alive during The Hunger Games. I felt strongly about Katniss because of this quality as I could also identify myself with this quality. In most things I take part in, I will try and win, whether it be in a race, or a school test. However, Katniss’s competitiveness is much more serious as her life is on the line, and if she does not succeed with whatever she does, it is most likely that she will die. In conclusion, I felt strongly about Katniss Everdeen as she is a prime example of what the all round person should be like, Determined, competitive and caring. I am sure many people would agree that she has inspired the reader to take risks in their lives and adapt these three qualities into their own lives. And â€Å"may the odds be ever in your favour! †

Friday, November 29, 2019

Boeing Financial Analysis free essay sample

The Boeing Corporation, originally Pacific Aero Products Company, was established in 1916 in the Washington Puget Sound region. The company was originally incorporated to build aircraft, air mail delivery, and pilot training, but was broken up by the government in 1934 creating United Airlines and Boeing Aircraft Company. During the first 97 years the company expanded through strategic mergers and acquisitions of storied aerospace pioneering companies into the $81. 7 billion dollar company it is today. Many of the companies are household names with the older generations: North American Aviation, McDonnell Douglas, Rockwell International, Hughes Space Communications, and Jeppesen. Through these expansions, Boeing has become the world’s largest and most diversified player in the aerospace and defense industry. Ranked in the top of U. S. exporters, Boeing supports airlines as well as the U. S. and allied government customers in 150 countries. The company is divided into two major business units supported by nine corporate functions. We will write a custom essay sample on Boeing Financial Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The two business units are Commercial Airplanes (60%) and Defense, Space Security. Boeing Commercial Airplanes (BCA) is a $36. 1 billion dollar business as of December 31, 2011 headquartered in Puget Sound Washington that employs over 80,000 worldwide. The business of the division is to design, assemble, and support jetliners for its customers. There are five major aircraft lines with VIP/Corporate derivatives, fabrication and assembly facilities, and a global customer support system for delivery and maintenance. There are over 12,000 Boeing jetliners in service today representing approximately three-quarters of the global fleet. Commercial Aviation Services (CAS) offers a broad range of services to passenger and freight carriers ranging from maintenance to retrofits. BCA’s main customer base is the global commercial airline and freight companies. Boeing Defense, Space, Security as of 2011 is a $31. 9 billion dollar business headquartered in St. Louis Missouri that employs over 60,000 worldwide. The division is a conglomeration of four separate businesses: Boeing Military Aircraft, Global Services Support, Network and Space Systems, and Boeing Phantom Works as well as several joint ventures. Boeing Military Aircraft’s business includes the design, assembly, and support of manned and unmanned tactical (fighter/bomber), transport, tanker and rotary wing aircraft, surveillance and engagement systems as well as ordinance. Boeing’s current fleet includes many storied aircraft such as A-10 Thunderbolt, F-18 Super Hornet, F-15 Strike Eagle, Air Force One, and EB4 Advance Airborne Command Post. Rotary wing aircraft include AH64 Apache, CH47 Chinook, MD530, and V22 Osprey. The ordinance side of the business ranges from JDAM to Patriot Missile to Minuteman Guidance, Navigation and Control. The most recent notable system is the Arrow Interceptor, also known in Israel as, the Iron Dome. Global Services Support provides assistance to government customers worldwide with over 264 locations. The services include maintenance of all Boeing products and services such as supply chain management, logistics support, and training for maintenance personnel along with various other defense and government services. Network and Space Systems (NSS) designs satellites, launch vehicles, and defense systems. The division is also the world’s largest supplier of both commercial and military satellites. The most famous satellite system from Boeing is the GPS system we all use every day. Commercial customers include many well-known businesses like DirecTV and SIRIUS XM Radio. Boeing manufactures launch vehicles via a joint venture with Lockheed Martin known as United Launch Services. This group designs and manufactures the Delta II as well as three launch vehicles. NSS is currently the largest contractor for NASA being the main for supply of the International Space Station. Boeing Phantom Works develops advanced systems and technology to meet future customer needs as well as scoping out opportunities to broaden the company’s offerings. Phantom Works has five distinct sections: Advanced Boeing Military Aircraft, Advanced Network Space Systems, Advanced Services, Strategy Development Experimentation, and Phantom Works Ventures. Systems under operation include Directed Energy Weapon Systems (lasers), Wideband Global SATCOM (future battlefield communications), Phantom Eye (hydrogen-fueled unmanned surveillance) aircraft, and X37B Orbital Test Vehicle. II – Overview of Industry Boeing is part of the Aerospace and Defense Industry (AD); at $68. 7 billion in sales in 2011, it is the largest company in its global peer group. EADS is a very close second with sales of $68. 3 billion. (For purposes of this analysis of Boeing, EADS is not used in the competitor analysis because their annual reports follow IFRS instead of GAAP as they are headquartered in France. ) The second largest U. S. publicly traded company in competition with Boeing is Lockheed Martin who grossed $22 billion less than Boeing in 2011. The Aerospace and Defense (AD) industry has been characterized by growth over the past five years. According to IMAP, an MA (Mergers and Acquisitions) advising firm, the AD industry has grown at a compounded annual growth rate of 8. 7% from 2005 to 2009. The expected growth during 2010 to 2014 is an estimated CAGR of 5. 3%. PwC reported 2011 to be the best year for the AD industry in terms of revenue and net profit. The continual growth in commercial aviation has offset the recent trouble in the defense sector. There are many macroeconomic factors at play in the AD industry including prices of raw materials, geopolitical risk, business demand and fiscal policy. As the world demands more fuel-efficient aircrafts, businesses must adapt to these needs by replacing old materials such as Aluminum and Titanium to composites which allow aircrafts to become more aerodynamic. The future costs of composites will in turn affect the expenses of the AD sector. Lighter weight and more aerodynamic airframes drive better fuel efficiency. The airline industry has done well here over the past 10 years, as air travel has grown 53% but fuel demand has been level at a 3% increase. This has been achieved by a combination of retiring older aircraft and replacing them with the more efficient designs as well as financial hedging of fuel costs. Boeing, for its part has been actively working on alternatives such as bio fuels, fuel cells and mini-nuclear drives. The price of oil affects not only the demand for aircrafts, but the economy as a whole. Geopolitical risk in the Middle East can create an upward pressure on the price of oil and thus dampen business demand. Fiscal policy decisions also have a severe effect on the defense spending which in turn determines the earnings of defense contractors. As the United States becomes more cognizant of spending, the risks increase for the defense sector which could create more volatile earnings. In aggregate, the industry has reduced volatility in inputs such as oil by using derivatives to hedge against price increases. Boeing had the largest reported revenue during the 2011 fiscal year followed by Lockheed Martin, of the United States, at $46. 5 billion. The Boeing Company has dominated the AD sector, but is losing market share to a number of new entrants in the market from Japan, Russia, and China. Graph 2. 1 lists the top 10 AD companies by revenue in 2011 (source: PwC): Company Revenue 2011 (in millions) Revenue 2010 (in millions) % Change Boeing $68,735 $64,306 7% EADS $68,328 $60,599 13% Lockheed Martin $46,499 $45,671 2% General Dynamics $32,677 $32,466 1% BAE Systems $30,745 $34,428 -11% United Technologies  $26,935 $25,227 7% Northrop Grumman $26,412 $28,143 -6% Raytheon $24,857 $25,183 -1% Finmeccanica $24,086 $24,762 -3% GE Aviation $18,859 $17,619 7% A record amount of MA activity in 2011 is the result of these new competitors in the industry. Cash on balance sheets have AD executives participating in 341 deals totaling 43. 7 billion in value in 2011 according to PwC. This trend can co ntribute to increased non-organic growth within the top firms of the Aerospace Defense industry. III – Management Analysis In general, the market views the management as well as the board of directors of Boeing as weak. The scandals from the previous CEO have made the transition for Jim McNerney difficult, and analysts and researchers are skeptical of the managerial performance. Jason Busch, a researcher for the best practices firm, Spend Matters, criticized Boeing for the delays in completing the Dreamliner 787 in 2009. Outsourcing the plane has led to issues in the supply chain which could have been remedied had the firm produced it in the United States. He continues by saying the top managerial positions and the Board of Directors has too many MBAs and not enough engineers. The Harvard Law School Forum on Corporate Governance has also been critical of Boeing due to the structure of the board of directors. While over 70% of the Fortune 500 firms have separated the role of CEO and Chairman of the Board, Boeing has not. James McNerney acts as the board of directors as well as the president and Chief Executive Officer. This creates an inherent conflict of interests since the board is responsible for watching the managers of the firm. Jon Talton of the Seattle Times claims the Board of Directors should have been aware of the issues surrounding the lithium-ion batteries in the 787 Dreamliners. These batteries are responsible for grounding the 787s. Rather than use a traditional battery, they attempted to make the planes more fuel efficient by using lighter batteries to reduce drag on the planes, but these batteries were overheating and causing fires in the planes. Regardless of this black-eye for the firm, Jim McNerney has not received any financial penalties and instead got a bonus for the initial delivery of the 787s. The executive compensation structure allows for room to earn more for financial milestones, but fails to address setbacks. The experience of the Board of Directors provides a wealth of financial and managerial knowledge. Table 3-1 illustrates the name and position of each Director: Table 3-1 Board of Directors Name Experience Ken Duberstein Reagan Chief of Staff Susan Schwab Former U. S. Trade Rep. Edmund Giambastiani Retired Admiral David Calhoun CEO Nielsen Holdings Larry Kellner Former CEO: Continental Airlines Ron Williams Former CEO: Aetna Mike Zafirovski Former CEO: Nortel Linda Cook Senior Executive: Royal Dutch Shell Ed Liddy AIG crisis management after 2008 James McNerney Jr. (Chairman) CEO: Boeing The Board contains ten directors as of December 31, 2011. Included in this group are three former CEOs, two current CEOs, a senior executive, a former U. S. trade representative, and the Chief of Staff in the Reagan Administration. While the leadership and experience of the Board has been established, the lack of engineers can dramatically reduce the perspective overall. Management is also full of talented individuals who have been with the company for a number of years. Many of the managers have ascended the ranks to help provide a greater perspective. Table 3-2 illustrates the name, position, and number of years with the company: Table 3-2 Management Name Position Years with Boeing Raymond Conner CEO: Commercial Airplanes 36 James A. Bell Executive VP 8 Wanda Denson-Low VP: Internal Governance 13 Thomas Downey Senior VP: Communications 27 Shepherd Hill Senior VP: Strategy 19 Tim Keating VP: Government Operations 5 J. Michael Luttig VP: External 7 James McNerney President, CEO, Chairman 8 Dennis Muilenburg CEO: Defense 28 Anthony Parasida Senior VP 35 Greg Smith CFO 9 Richard Stephens VP: Human Resources 33 John Tracy Chief Technology Officer 32 Jim McNerney was the previous CEO of 3M and next in line to succeed Jack Welch at General Electric. It is important for a CEO to provide contacts to expand business opportunities and McNerney’s wealth of experience in the industrial sector is a great fit. According to the 2012 proxy, the board is 75% independent, but highlighted potential conflicts with Jim McNerney being the CEO and Chairman of the Board. This conflict as well as the perverse payment structure could be a sign of future trouble ahead. Intense competition from emerging markets such as China and Russia has put a damper on growth. It’s up to management to find innovative ways to compete in this economy as sequestration looms over the defense sector and a weak recovery hampers consumer and business spending. IV – Presentation of Financial Reports Throughout the following section, Boeing’s financial statements for the years 2007 to 2011 are presented. They include the company’s balance sheets, income statements, cash flow statements, as well their respective restatements. In Appendix A you can also find the financial statements of Boeing’s top four competitors, which have also been averaged out in order to get an idea of Boeing’s true competitive advantage.  48 V – Common-Sized Presentation of Restated Reports VI – Detailed Discussion/Analysis of Section IV and V Reports Restatement of the Boeing Company’s Balance Sheet was necessary in order to assess the primary information for proper comparison. Stockholder’s equity remained the same as t he information was significant enough in its original form. Boeing’s Net Receivables were expanded to reflect the figures associated with their Allowance for Uncollectible Accounts. The data for this expansion came from Note 6 of Boeing Company’s published 10K’s (Boeing, 2012). In addition, Advances and Progress Billings were separated from Inventories to give a truer analysis of their actual inventory. The data for extracting this information is supplied in Note 7 of their published 10K (Boeing, 2012). Assets were separated between tangible and intangible which were included in other long term assets. Property, Plant, and Equipment was separated in order to recognize what area significant asset acquisitions may have occurred, less Accumulated Depreciation, that can be found in Note 9 of their 10K (Boeing, 2012). In the Intangible and Other Long Term Assets section Accumulated Amortization was separated as well. This information was found alongside the actual other assets line item in their balance sheet. Other changes made to the information in this section include moving the short term portions of deferred taxes, investments, and notes receivable from the current assets section of the balance sheet and including them on a separate line item along with the corresponding long term debt in this section. This allows for an easier analysis of the most liquid current assets. The only change to liabilities was moving the current portion of long term debt down to be reflected along with the long term portion of the corresponding debt. This was done to stay consistent with current and long term assets to ensure ratio reliability and accuracy. Common sizing was necessary to observe trends within the financial statements. This report reflects both horizontal and vertical common sizing which used 2007 as the base period. The base year is preferred because 2007 was before the recent economic crisis and provides results from operating to measure the post-recession growth. Total current assets and total tangible assets continue to trend upwards regardless of the recession. Cash and cash equivalents declined in 2008 by approximately $4 billion or 53. 6 % as a result of a $401 million cash outflow attributable to higher working capital requirements. This loss in cash and cash equivalents was offset by a larger than normal increase in inventories â€Å"driven by continued spending on production materials, airplane engines, and supplier advances during the IAM strike, lower commercial airplane deliveries and the continued ramp-up of the 787 program†(SEC Filing, 2008). Total assets declined by approximately $5 billion, 8. 8%, between 2007 and 2008 due mostly in part of a large decrease in investment activity due to the economic recession. Some of this loss in investment was offset by a gain in deferred income taxes of approximately $2. 5 billion that is a result of unrealized pension assets that tax had yet to be paid on as of end of year 2008. In 2009 there is a large increase in cash and cash equivalents that comes from a reduction in working capital from the buildup of inventory in 2008 due to the IAM strike. In 2010 cash flow decreased again as Boeing increased inventories in anticipation of the deliveries of their 787 and 747-8 airplanes. In 2011 the large increase in total assets is reflected in a $12 billion dollar increase in inventories and a $5 billion dollar increase in cash and cash equivalents which comes from increased sales and customer advances. All other assets from 2008 through 2011 remained relatively constant with a slight increase in 2010 that is due to an increase in time deposits. Liabilities reflect an approximate $18 billion dollar increase over the five years 2007 through 2011. This comes from an increase in long term debt for unsecured debentures and notes that are due through 2043 and an increase in pensions and other postretirement benefits which is primarily due to a higher amortization of actuarial losses and higher service costs driven by lower discount rates (Boeing, 2012). As depicted in the graph above, Boeing’s assets and liabilities have increased overall in the past five years. The increase in liabilities may at first glance seem like a negative trend but the overall increase can in part be attributed to the company’s simultaneous rise in assets, and also can imply a higher level of participation with additional companies; that is, Boeing is continuing to expand as a company in the global market. There are two notable equity trends, the first of which is a slight steady increase in the company’s retained earnings. Growth in retained earnings is proof that a company has more available holdings each year, and Boeing’s balance sheets indicate just that. The second is that each year Boeing conducts a tremendous reinvestment in itself by repurchasing a large amount of its treasury stock, and by reinvesting a large amount of their available resources back into the company, Boeing will be able to experience continued gains on equity from future operations. This is important news for stockholders. In order to fully analyze the financial state of Boeing, a restatement of the Income Statement was required. Taking the Income Statements available in the 10K’s, they were restated in the six profit point Multi-Step format. The multi-step breakdown of Gross Profit, EBITDA, Net Operating Income, EBIT, EBT and Net Income is essential to align Boeing year over year as well as Boeing to the competition. The multi-step approach helps better understand the financial state of the business by segregating the operating revenues and operating expenses from the non-operating revenues, non-operating expenses, gains, and losses. This approach allows anyone to review selected areas without having to sort through notes and reading the complete 10K. In addition, depreciation expense was removed from COGS and was reflected with all other depreciation expenses. In 2004 Boeing conducted a purchase and sale agreement with GEEC (General Electric Capital Corporation). In this agreement Boeing has agreed to sell to GEEC all of the assets related to Boeing Capital’s commercial financing services business. This was listed as an extraordinary item on Boeing’s original income statement. The restatement moves this to discontinued operations as it has occurred regularly since 2004. The income tax from the extraordinary item was also moved above the line and included with income tax expense. All financials were reviewed in common size format, both horizontal and vertical to better help see noticeable trends. The horizontal common size method used to analyze Boeing was the base year method. In reviewing the data, it is clear that there was a dramatic drop in product revenues in 2008 of $5,478 (12%) which was slightly offset by an increase in service revenues. This drop in product revenues can be directly attributed to the IAM strike. Even with the recession coming on strong, there was a rebound in product revenues that is attributed to delivery of backlogged aircraft delayed by the strike. In 2010, there is again a dramatic drop in revenues that directly lines up with the bottom of the recession. The Gross Profit in 2010 did not follow the trend; instead there was a 5% increase due to both an increase in Service revenues and a 3% decrease in the Cost of Goods Sold. 2009 saw a large increase in RD due to the launch of 737 Max, 747-8 and issues with the launch and subsequent delay of the 787 Dreamliner. The above graph was constructed from the last five years of Boeing’s income statements, and several trends were identified. At a first glance, their yearly revenue from sales has seemingly fluctuated around the same point, which overall shows that their sales are relatively constant. Shareholders would rather see a positive growth in sales than what is displayed in the graph; constant sales over the recent five years do not indicate that the company has been selling more of its products and services. Changes in supply and demand of its products and services as well as inflationary effects serve as additional factors for relatively stagnant sales revenue. Likewise, there has been an overall loss on operating investments, which essentially means that the company does not generate enough liquid revenue to cover its operating expenses and that is generally not a good sign. A noteworthy and possible root cause for these overall negative trends was the extremely large and unusual amount of reinvestment costs Boeing incurred in 2008, which can also be indicative of the impact of the global recession. As a result, Boeing’s overall Earnings-Per-Share and overall Net Income values have generally remained constant. Furthermore, when taking into account the rate of inflation, their Net Income actually decreased. Cash flows from operations are measured against net income to check for reliability of portraying the economics of Boeing. There appeared to be a large deviation between net income and cash flows from operations from 2007-2009; the largest deviation takes place in 2008 with a difference of over 700%. During 2010 and 2011, the gap decreases which makes earnings a more accurate measurement of the cash inflows and outflows. 2011 2010 2009 2008 2007 Net income $4,018 $3,307 $1,312 $2,672 $4,074 CFFO $4,023 $2,952 $5,603 (401) $9,584 % difference .1% 12% 76% 766% 57% A negative cash flow from operations in 2008 was a widespread phenomenon due to the recession. All other years analyzed reflect Boeing generating positive cash flows from operations. The cash flows from investing section indicate Boeing allocating a consistent amount of capital to property, plant, and equipment over the last five years. Over 2008-2010, Boeing allocated over $600 million per year to acquiring new companies which placed a strain on their cash position. These strategic acquisitions could misconstrue the economics of Boeing’s operating cash flows in the future as purchased accounts receivable are repaid. A large cash outlay of $15 billion in 2010 for contributions to investments follows a sharp drop in investments proceeds in 2009. After Boeing saw investments proceeds decline to $1 billion in 2009 from $11 billion in 2008, management deemed a contribution to be necessary. An examination of the cash flows from financing shows Boeing adding a significant amount of leverage in 2009 by borrowing nearly $6 billion. Outside of 2009, Boeing did not add debt of more than $300 million in any particular year. This large cash inflow from new borrowings played a part in the above-average debt ratios. Despite cash flows being affected by the recession in 2008, Boeing maintained a steady dividend. Since the market views a cut in dividend as a weakness in the fundamentals of the company, it is often seen as a last resort. Rather than reduce dividends, Boeing instead discontinued share repurchases in 2010. This is still a reduction of return to shareholders because the decrease in outstanding shares gives the remaining stock more value. The chart below shows Boeing’s free cash position after return to shareholders: 2011 2010 2009 2008 2007 Dividends (1,244) (1,253) (1,220) (1,192) (1,096) Repurchase 0 0 (50) (2,937) (2,775) Return to Shareholder (1,244) (1,253) (1,270) (4,129) (3,871) CFFO-CapEx  $2,310 $1,827 $4,417 (2,075) $7,853 Cash Excess $1,066 $574 $3,147 (6,204) $3,982 Share repurchases in 2007 and 2008 amounted to nearly $3 billion each year. A sharp reduction in 2009 cut the return to shareholders by nearly half. Despite the reduction, cash excess of free cash flow declined from the high in 2007. The overall trends observed in the cash flow statement depict a mature company interested in acquisitions. Cash flows from operations are generally positive and growing from the low in 2008. Investing cash flows are oscillating as evident from their acquisition activities in 2008-2010. A negative cash position from financing activities is a result of the mature company paying constant dividends. As a result of the recession in 2008, Boeing has been careful with cash. Now that the economy is showing signs of life, it may be possible Boeing begins to acquire more companies as they have cash of over $10 billion. VII Analysis of Liquidity Ratios Boeing Liquidity Ratios Ratio Name 2011 2010 2009 2008 2007 Competitor Average Days Sales in Receivables 31. 044 31. 014 32. 538 35. 182 32. 631 64. 86 Accounts Receivable Turnover 12. 155 11. 134 11. 420 10. 318 11. 186 5. 63 Accounts Receivable Turnover in days  30. 029 32. 782 31. 961 35. 374 32. 631 64. 86 Days Sales in Inventory 215. 445 175. 454 111. 766 116. 019 66. 959 20. 49 Inventory Turnover 1. 932 2. 453 3. 398 3. 902 5. 451 17. 81 Inventory Turnover in days 188. 972 148. 815 107. 406 93. 543 66. 959 20. 49 Payables Turnover 7. 759 7. 828 4. 697 3. 220 5. 407 9. 92 Average Days Payables Outstanding 47. 041 46. 6 27 77. 705 113. 351 67. 501 36. 79 Working Capital Turnover 0. 410 9. 853 -0. 656 -0. 281 -0. 476 14. 58 Operating Cycle 220. 016 179. 829 139. 945 128. 725 66. 959 85. 35 Trade Cycle 172. 97 133. 20 62. 24 15. 37 32. 09 20. 49 Working Capital 9161 651 -243 -5883  -8431 2237. 25 Current Ratio 1. 235 1. 019 0. 992 0. 806 0. 726 2. 17 Quick Ratio 0. 407 0. 313 0. 466 0. 292 0. 415 1. 08 Cash Ratio 0. 258 0. 156 0. 286 0. 108 0. 229 0. 37 Cash Flow from Operations (CFO) Ratio 0. 103 0. 086 0. 174 -0. 013 0. 311 0. 33 Calculations of the short-term liquidity ratios yielded several trends in the recent operations of The Boeing Company as well as some interesting results using comparisons to the calculated competitor average values from 2011. The receivables ratios are fairly consistent for Boeing over the five years; this may be indicative of collection policies not subject to drastic change. When comparing Days’ Sales in Receivables for Boeing to the competitor average, it appears the allowable time for collections is twice as long within the competition as Boeing has reported. This has several inferences, the first being that Boeing may have stricter collection policies than the competition, which could be due to a large amount of high-risk contracts. Another inference could be Boeing is collecting quicker in order to reinvest more in its company, which can lead to higher sales. Similarly, Boeing’s higher Accounts Receivable Turnover compared to the competition may indicate a higher level of liquidity. The inventory ratios present an interesting dilemma: over the past five years Boeing’s Inventory Turnover in days has significantly increased each year, rising from 67 days in 2007 to a staggering 215. 45 days in 2011. Compared to the competitor average of just 20. 49 days, it is obvious Boeing has been holding onto their inventory for longer periods of time. There are several reasons why this may be, the first being the most obvious – they are simply unable to sell their finished goods but are still continuing to produce them, or in other words they are producing more goods than they can sell which is leading to a surplus. A less obvious implication is the current recession has reduced demand for Boeing’s products, and rather than halt production and cut their workforce the company is waiting out the recession. Using the Inventory Turnover ratio the same conclusions can be drawn: in 2011 Boeing was able to sell their finished goods only 1. 93 times, whereas the competitor average was 17. 81 times per year. Regardless of whether or not the products are similar, Boeing is simply not getting rid of excess inventory, which ultimately will drive up their fixed costs such as rent for additional storage space or additional buildings. The payables ratios signify Boeing’s Payables Turnover has increased overall; it is taking Boeing longer to pay off their suppliers than the competitor average. An interesting note is that Boeing may have strict collection policies (as shown in the receivables analysis previously), and at the same time they could be simply neglecting their obligation to their suppliers. Shorter collection times and longer outstanding payable times are not typically associated with a well-developed company, but again the high number of risky business contracts could be the reason for this oddity. The Working Capital turnover ratios for Boeing do not fare well at all when compared to the competition. Working capital funds operations and purchases inventory, and a high ratio is favorable; this means the company is generating more sales than what it takes to fund the sales. As shown in the inventory ratios, Boeing is having trouble selling off their inventory, and perhaps they are increasing their marketing and selling expenses to such an extent they are essentially breaking even. Over the five years Boeing’s Working Capital turnover has fluctuated but is overall very close to zero and this is also not indicative of a mature and developed company. The competitor average is 14. 58, which signifies other companies may have an advantage over Boeing in terms of sales generation. This leads to the large and steady increase of both the Operating Cycle and Trade Cycle for Boeing, which are both drastically higher than the competitor average. This is further evidence there may be a fundamental problem with inventory or their basic process. The Working Capital ratio for Boeing does appear to shed some light on Boeing’s likely inventory problem, but only within the last year. Between 2007 and 2010 Boeing’s Working Capital went from negative to just slightly positive, which means up until 2010 Boeing did not have enough liquid assets to cover their short-term debt, which really could have been a major problem. Even though 2011 yielded a much better value for Boeing and thus a better liquidity stance, the company is still far below the competitor average, and needs to continue its recent improvement to stay competitive. On a related note, Boeing’s Current Ratio was comparatively weak in 2007 (0. 726), but over the years it has steadily increased to 1. 235. Even though it is still well below the competitor average of 2. 17, a Current Ratio value over 1 means there are enough short-term assets to cover outstanding short-term debt indicating some recent improvement for Boeing. However, in regards to the Quick Ratio, a 2011 value of 0. 40 for Boeing is additional proof they have too high a proportion of their current assets in the form of idle inventory. The Cash Ratio is a more conservative measure of liquidity, and Boeing’s 2011 value of 0. 258 is weak compared to the competitor average of 0. 37. This suggests these industries do not have a high concentration of cash equivalents, but Boeing does not even meet their competitors. Finally, there is additional evidence there is a problem regarding cash generation, which comes to light in the Cash Flow from Operations Ratio. Boeing’s overall decrease from 0. 311 in 2007 to 0. 103 in 2011 and the competitor average of 0. 33

Monday, November 25, 2019

Get Paid

Get Paid As more and more people dip their toe into writing, more and more publications and editors think they can pay less. Supply and demand is a tried and true concept, and with way more writers clamoring to write, the cost of those writers diminishes sometimes to nothing. That does not give you permission to accept less. That does not give you permission to write for nothing. Instead, that means that you become pickier. I write for free in a few places: Blogs. Few of those pay. However, if I have something to promote, like my latest novel, I will piggy-back on someone elses readership to make a splash. Im making money, just in a sideways manner. A magazine that also advertises me. I periodically write articles for a certain magazine for free. They like my work, and in return, theyve promoted me well outside the parameters of that article, often providing the graphics for the advertising both in the magazine and for me to use elsewhere. An annual tourist guide recently asked me to write a piece, using an excerpt from my novel. This publication comes out once a year and goes in every rental in that coastal town, and sits on the counter of every restaurant. The bottom line is that writing for free has to pay somehow. Not in the ambiguous manner like I need some exposure that I am a writer. Thats a slippery slope. You enjoy seeing your hard-earned Write for free . . . on occasion. But be sure that when you do, theres a defined purpose that WILL result in tangible income. You want to be able to look at yourself in the mirror in the morning.

Friday, November 22, 2019

Immigration and Immigration Policy Today Essay Example | Topics and Well Written Essays - 1750 words

Immigration and Immigration Policy Today - Essay Example A recent report shows that more than 700 million adults from around the globe would like to migrate to a developed country. Predominantly, there are two driving factors in the immigration process; push factors and pull factors. Push factors refer primarily to the motive for emigration from the country of origin. In the case of economic migration (usually labour migration), differentials in wage rates are prominent. If the value of wages in the new country surpasses the value of wages in one's native country, he or she may choose to migrate as long as the travel costs are not too high. Particularly in the 19th century, economic expansion of the U.S. increased immigrant flow, and in effect, nearly 20% of the population was foreign born versus today's values of 10%, making up a significant amount of the labour force. Poor individuals from less developed countries can have far higher standards of living in developed countries than in their originating countries. The cost of emigration, which includes both the explicit costs, the ticket price, and the implicit cost, lost work time and loss of community ties, also play a major role in the pull of emigrants away from their native country. American immigration or Immigration to U.S. ... ligion, economic benefits, job growth, settlement patterns, environmental impact, and impact on upward social mobility, levels of criminality, nationalities, political loyalties, moral values, and work habits. As of 2006, the United States accepts more legal immigrants as permanent residents than any other country in the world. In 2006, the number of immigrants totalled 37.5 million. Immigration to the U.S. is one of the hot topics being discussed and debated upon around the globe these days, especially amongst the Third World countries. In order to get clearer picture of the whole situation and to look at it from an immigrant's point of view, I conducted a series of interviews with people coming from different ethnic backgrounds, age group and walks of life. Following are the exclusive accounts of different people and their view point on USA's immigration: Omar Rizvi, 15, student of Pleasant Valley High School is an American national with Asian background and has been living in the United States for over 13 years now. Here is what he had to say about our topic: Q. What are immigration reasons according to your understandings Explain with reasons under which circumstances its inevitable keeping the USA in mind. R. To escape war, poverty and to have better opportunities in life. Q. Is the current immigration policy catering to all creeds and cultures R. No Q. What factors and under currents should influence USA's immigration policy R. I have no idea. Q. Is the man in charge of immigration into and out of the USA most suitable for the job Explain why or why not. R. No, because he does not see all aspects of the issue properly. Q. How would you classify immigration As a plight to greener pastures Solution or living in a fool's paradise Justify your

Wednesday, November 20, 2019

Research Proposal Paper Example | Topics and Well Written Essays - 750 words

Proposal - Research Paper Example This is because the combination ensures very high level of empirical representation of data as well as consolidates the validity and reliability of data collection and analysis. It is estimated that the present research will cost USD 900 and span for a period of 2 months. It would however become the hub of comprehensive information for Al Waseet to identify its market base and rightly strategize on both short term and long term to take advantage of this market. Background Al Waseet enters the Daily New Paper market as a new entrant who is faced with a number of critical competitions, which if not addressed could affect and undermine the success of the business (Project Management Institute, 2008). But to address the issues effectively, it is important to have a comprehensive marketing research that identifies key opportunities, threats, strengths and weaknesses of the company (Alexis, 2007). It is against this background that the present marketing research proposal is necessary. It w ould be observed that access to information is fast becoming a necessity for the ordinary person on the streets of Bahrain (McClain, 2002). This is partly because the world is shrinking in terms of access to information and becoming closed up under the wheels of globalization. The Daiky Newpaper industry has therefore become competitive in Bahrain. This notwithstanding, Al Waseet is in a position to creating its own competitive advantage that would make it not just a local force in the business but a company with international repute (Perry, 2008). Problem Definition/ Objectives of the Research There exists a well formulated Newspaper industry in Bahrain (Gabby, 2009). This however does not mean that the door is closed to new entrants. The only problem is that new entrants would have to have their own competitive advantages and marketing strategies that would help them win new lines of customers. The objective of the research is therefore to come out with both short term and long te rm strategic marketing plan that would ensure that Al Waseet gains a competitive advantage as a new entrant on the Bahrain market. Approach to the problem As a marketing research, it is highly important that the proposed research have qualities that make it possible to have tangential access to information (Tawiah, 2009). More to this, it is important that data collected can be ascribed to both qualitative and quantitative scrutiny. In light of this, there shall be a mixed approach towards the research whereby the researcher shall use a mixed approach made up of qualitative and quantitative research approaches. Research Design The selection of research design is directly linked to the research approach because the research design should be selected in a way that makes it possible to achieve the provisions of the research approach, which is proposed to be a mixed approach. To this end, the researcher proposes the use of survey research design for the present study. With a survey rese arch design, the researcher will be offered the opportunity to use a number of data collection instruments to collect a combination of qualitative and quantitative data from both the field and from existing literature (Alpha, 2005). Fieldwork/ Data Collection The fieldwork is going to constitute an important component of primary data collection. What this means is that the researcher is going to use fieldwork to collect

Monday, November 18, 2019

Repositioning Target Market Demographics Using U.S. Census Data Essay

Repositioning Target Market Demographics Using U.S. Census Data - Essay Example It can be stated that the target customers for compact cassettes could be the students as well as the young people who possesses the fascination in listening music. According to the Census Data of the United States, it has been apparently observed that the nation has the highest amount of listeners. On the basis of this significant data, it can be affirmed from a broader perspective that the repositioning of the product especially targeting the listeners like the youths as well as the students along with others fond of listening music would be beneficial. Relating to the aspect of repositioning, certain key dimensions are needed to be implemented that includes understanding company’s’ effort for doing well, discovering the needs of the customers and exploiting organizational strengths for meeting the demands of the customers. Another key dimension can be identified as culture building for focusing on customers as well as market intelligence (Trout, & Rivkin, 2009). From the above observation it can be stated that in order to enter into new market segment, it is required to identify the strengths and weaknesses of the organizations. It can be observed that compact cassettes requires mass reproducing aspects, phonography records as well as prerecording for attracting customers in the global markets. According to the census data belonging to the US, it can be stated that the target market for the product concerning compact cassettes would be the rural areas of the nations wherein the students and the youths among others resides substantially. It has been apparently observed that the population in the rural areas of the US has been estimated to be nearly about 18% and with targeting this particular market, it would be possible to elevate technological advancements particularly in those areas. In accordance with the reports that published by the US Census Data, it can be observed that the value of shipments and annual payrolls is much higher in the US business markets as compared to others in the global context. The products like compact cassettes entering into the target market i.e. the US would have ample scope of generating greater revenues by delivering quality products to the customers (United States Census Bureau, 2011). 2. Type of Research Required for Repositioning Compact Cassettes The marketing research for products of compact cassettes can be identified as current marketing and promotion plan along with distribution of compensation, current customers profile and competitive products review (McGrath Marketing, n.d). In this similar concern, it can be stated that the types of research required for repositioning the product of compact cassettes in the new target market of the US can be identified as conduction of interview with practitioners, assessing the competition in the target market and developing a detailed understanding of the attributes of products. Furthermore, the other sort of research encompassing conduction of primary along with secondary data is also required for establishing a product such as compact cassettes in the target market of the US. It is quite significant that the identification of competitors within the market segment is quite indispensable for repositioning a product in target market. It can also be stated that the conduction of qualitative research is also required

Saturday, November 16, 2019

Different techniques of spread spectrum

Different techniques of spread spectrum CHAPTER 1 INTRODUCTION: The idea of this project is to study different techniques of spread spectrum. These techniques include the two processes of direct-sequence spread spectrum and frequency hopping spread spectrum. Both these techniques will be simulated in software called MATLAB. Also a brief mention will be there about the multiple access property of spread spectrum. This project deals with the implementation of spread spectrum using the techniques- direct sequence spread spectrum and frequency hopping spread spectrum. Spread spectrum is a new method of communication. It provides a jam-free network and prevents any kind on interference. It helps to provide immunity to channels by not allowing any kind of interference or disturbance. We will be discussing more about spread spectrum and its technique in the following chapters. The project has been divided into six chapters. The second chapter deals with spread spectrum. It starts of with the history of spread spectrum followed by a basic definition of spread spectrum. Certain characteristics of spread spectrum are discussed along with a mathematical explanation of advantage of spread spectrum over narrow band communication. It then describes the working of a spread spectrum and finally mentions how a spread spectrum can be demodulated. Chapter three describes different techniques of spread spectrum. There are four techniques of spread spectrum namely direct sequence spread spectrum (DSSS), frequency hopping spread spectrum (FHSS), chirp spread spectrum (CSSS) and time hopping spread spectrum (THSS). Each of these techniques is described, with a brief mention about its basic mechanism.A brief comparison is drawn between FHSS AND DHSS. A mathematical explanation is given for DSSS under the conditions of noise (jammer). Chapter four discusses different multiple accesses of spread spectrum. These are frequency domain multiple access (FDMA), time division multiple access(TDMA) and code division multiple access(CDMA). CDMA is dealt with in a more detail manner and is presented with a mathematical explanation. Chapter five presents a MATLAB simulation of direct sequence spread spectrum (DSSS), Frequency hopping spread spectrum (FHSS) and Code division multiple access (CDMA). It discusses how a signal when multiplied with a pseudo random noise and put on a frequency wave gets spread. This technique is called direct sequence spread spectrum. Also this chapter presents the MATLAB simulation of Frequency Hopping Spread Spectrum where four randomly carrier frequency waves are generated to form a spread spectrum and multiplied with pseudo random generator to determine the frequencies where the information has to be hopped. The information is sent in the form of a BPSK modulated signal. Also a MATLAB simulation on CDMA is presented .It basically shows how CDMA works. Three stations are taken and how they send codes through a single channel by using the property the CDMA. Finally, chapter six winds up the project with the conclusion from each chapter. It mentions in short what has been realized from this project. CHAPTER 2 SPREAD SPECTRUM 2.1 HISTORY OF SPREAD SPECTRUM This chapter talks about spread spectrum. It begins with a brief history behind spread spectrum. It also mentions about the various fields where spread spectrum is being effectively used. Certain characteristics of spread spectrum are also discussed.A basic definition of spread spectrum is discussed in this chapter which basically explains what actually spread spectrum and why is preferred over conventional wireless communication. A brief mechanism of how spread spectrum works is discussed. It also mentions the mathematical reason behind why a spread signal is an effective way to communicate. A comparison is drawn between spread spectrum transmission and fixed frequency transmission. Finally a demodulation technique is discussed mentioning about how demodulation can be achieved. Spread spectrum has become a new commercial communication technique over the past 8-9 years. However the first intentional use of Spread Spectrum came during the period of 1921-1930 by Armstrong. He had used wideband Frequency Modulation. The real use for Spread Spectrum how ever came in World War II. Both the allies and the Axis powers experimented with simple Spread Spectrum systems. The first publically patent on Spread Spectrum came from Hedy Lamarr, the Hollywood movie actress, and George Antheil, an avant gard composer. Lamarr had mentioned to Antheil about her idea for a Secret Communications System that could guide torpedoes to their target without being intercepted by the enemy. This could be done by sending messages between transmitter and receiver over multiple radio frequencies in a varied random pattern. The message would be transmitted at such a high rate that no one would be able to decode it. They sent their invention to National Inventors Council. Instead of developing the patent commercially, they gave it away to the government for the war effort. As a result of which the commercial use of Spread spectrum came many years later [1, 3, 19]. Spread Spectrum was first used for commercial purposes in the 1980s when Equatorial Communications of Mountain View used Direct Sequence for multiple access communications over synchronous satellite transponders [1]. Today, spread spectrum is being used to provide communications in a variety of commercial applications, including mobile communications and interoffice wireless communications. In the coming years hardly anyone will prevent themselves from being involved in one way or the other with spread spectrum communications as it will become an integral part of the communication world. [1, 4]. 2.2 DEFINITION OF SPREAD SPECTRUM Spread-spectrum is a technique by which electromagnetic energy produced over a particular bandwidth is spread in the frequency domain on purpose. Spread spectrum signals are used for transmission of digital information which are characterized by the fact that their bandwidth W is much greater than the information rate R in bits/sec. Hence the bandwidth expansion factor is always greater than unity. This results to provide a signal with a wider bandwidth and a lower power density. These techniques are used for a variety of reasons which include the establishment of secure communications, increasing resistance to natural interference and to limit the power flux density on satellite downlinks. Narrow band signal and spread spectrum use the same amount of power to transmit the same data. However the power density of the spread spectrum is lower as compared to narrow band and it is this property that makes spread spectrum achieve secure and jam free communication. Spread spectrum is a type of wireless communication in which the frequency of the transmitted signal is intentionally varied and changed to achieve a higher bandwidth. This results to provide a much greater bandwidth than that of the signal if its frequency was not altered [2, 5]. A spread spectrum should full fill the following requirements: 1) The message signal should undergo two modulations that produce the wideband spectrum having bandwidth much in excess of the minimum bandwidth needed to send the message. 2) The spreading ,that is the second modulation is caused by means of a spreading signal 3) The receiver should recover the message by the method of de-spreading the signal that is received by using the same spreading signal [23]. Spread spectrum is preferred over conventional wireless communication for many reasons; however there are at least a couple of problems associated with conventional wireless communication. First, a signal whose frequency is constant and not changing is subject to interference. This condition occurs when another signal is sent on, or very near to the frequency of the desired signal. Interference can be accidental (as in the case of amateur-radio communications) or it can be deliberate like during war time. Second, a constant-frequency signal is very easy to intercept or lock and reveal the information it is carrying and hence is not well preferred to applications where the information must remain confidential between the transmitter and receiver. [2]. To minimize troubles and to maintain the confidentiality of the information, transmitted signals frequency can be deliberately varied and changed over the large segment of the electromagnetic radiation spectrum. This variation is done by using a specific and complicated mathematical function. This function is the most important part of the spread spectrum for maintaining the confidentiality. For intercepting the signal, the receiver must be tuned to frequencies that vary exactly to this function. The receiver must have the knowledge of the frequency-versus-time function employed by the transmitter, and must also be provided with the information about the starting-time point of the function. If someone wants to hack or intercept the spread-spectrum signal, that person must possess a transmitter that contains the information about the function and its starting-time point. The spread-spectrum function hence must be well protected for confidential information communication and it this feature of spread spectrum that helps maintaining the secrecy of information. If this function comes in the wrong hands, it can lead to the invasion of secrecy of the information [2]. 2.3 HOW SPREAD SPECTRUM WORKS Spread Spectrum uses wide band which is a noise-like signals and hence are hard to detect. These signals are also hard to lock on to or be tracked by any intruder. Spread signals are made in such a manner that their bandwidth is larger than the information they are transmitting to give them a noise like appearance, hence protecting the information it is carrying and maintain its secrecy and confidentiality [4]. Spread Spectrum signals use fast codes that have a high data rate. These codes are called Pseudo Random or Pseudo Noise codes. These are called Pseudo for the reason being that they are not real Gaussian noise [4]. Spread Spectrum transmitters possess similar transmits power levels to that of narrow band transmitters. Spread Spectrum signals are so wide hence they transmit at a much lower spectral power density which is measured in Watts per Hertz as compared to narrowband transmitters. This characteristic (lower spectral power density)gives spread signals a huge advantage in digital communication and it is this capability that is responsible for the rapid use of Spread Spectrum today [4]. The numerical advantage of wider bandwidth is obtained from the Claude Shannons equation describing channel capacity [4]. (2.1) Where; C=channel capacity of the signal, B=Bandwidth of the signal, S=signal power, and N=noise power. = (2.2) On Applying the MacLaurin series development for (2.3) is usually low for spread-spectrum applications. Assuming a noise level such that