Investment Banking Essay

1. Why were proponents of deregulation so successful in the late 1990s? How much can we blame deregulation for the meltdown in the investment banking industry, and how could the government have foreseen and/or stopped the domino effect before the crisis of 2008?s The gov could have decided to not back up what they were not regulating. They are partly to blame for the crisis because who knows if the banks would have issued the loans they issued and taken on huge amounts of risk if they didn’t have the guarantee of the banks behind them. 2. Could any one of the investment banks have remained competitive without following the industry trend of taking on increasing amounts of leverage to boost returns on investment? If so, how? It is not likely that an investment bank could have made the huge profits other banks were making with that leverage to boost returns. They could have possibly taken on less risk and been more profitable in the long run, but not likely that they could have kept up short term. 3. Why was Lehman Brothers allowed to collapse while Bear Stearns was not? The investment bank of Lehman Brothers played a different part in the market than Bear Stearns. The government didn’t want this bankruptcy spreading and so they were able to convince JP Morgan to buy out Bear Stearns while they let Lehman Brothers collapse and pick up the pieces. 4. Did the compensation structure of the investment banking industry encourage banking executives and employees to take on excessive risk to boost short-term profits? Why or why not? Banks were encouraged to take on huge amounts of risk because of the very high return. For a while, there were no consequences for defaults because risk was being transferred but they got to keep the money made off the loans and bonds issued. 5. How much of the industry-wide crisis stemmed from the investment banks’ financials and the current economic climate as opposed to investor panic and speculation? The investment banks are mostly to blame because their conditions caused investor panic and speculation. Banks should have anticipated their uninformed investors rash behavior because that is very hard to control. 6. Both Bear and Lehman bailed out their proprietary hedge funds. Did they have any other option? What would have happened had they not done so? Investors and employers had a lot of skin in the game in the hedge fund market so they had a lot of pressure to bail out these funds. If they had  chosen not to bail them out then their reputations would have gone downhill eventually leading to their investors distrust of the firm. 7. Could Morgan Stanley and Goldman Sachs have survived without becoming bank holding companies? What were the benefits and disadvantages of becoming bank holding companies? What does designation as bank holding companies mean for the way Morgan and Goldman operate going forward? By becoming bank holding companies the power was put into very few hands. Becoming a bank holding company increases diversity so that you do not only play in one market. This lessons risk but perhaps also decreases high returns that can be made if you focus on the investment banking business. Perhaps they could have survived if they had been able to come up with a balance of risk to take. Morgan and Goldman needed to expand from solely investment banking and perform commercial banking operations as well.

Generation Music

It is All the Same Thing If you are a teenager then you have heard that the music of today is trash and it will never compare to the music of the past. What makes our music so much worse? The songs are saying the exact same thing. What is the difference between music now and music then? As I listen to the music of the past, I notice that their way of presenting the music differs from music today. The way they used words were masks for what they were actually saying, but now artists say exactly what they mean.In Rick James's hit â€Å"Mary Jane†, for example, he is talking about his excessive use of Marijuana. A person who has no knowledge of Marijuana would not know what Rick James was referring to when he said Mary Jane. He calls Mary Jane a she as if it were a real woman. He uses personification to express his passion for weed. â€Å"I'm in love with Mary Jane. She's my main thing. She makes me feel alright. She makes my heart sing†¦ Takes me to paradise. † His o pening verse is all expressing his love for weed and how weed makes him feel.Wiz Khalifa is a rapper known for his weed obsession. In his song â€Å"Up†, he Just comes right out and says that everything is better when you are high. He does not hide behind nicknames and descriptive words. Both songs agree that weed makes life better. Although both songs are equally bad influences, â€Å"Mary Jane† would be better entitled than â€Å"Up†. Betty Wright's song â€Å"Slip and Do It† is all about taking another woman's significant other. She says â€Å"Girl, don't blame me for what I'm doin'. It's your man; he won't leave me alone!And it feels so good when you slip and do it. † She is practically saying that cheating is not bad, and that women whose men cheat on them are at fault. The message is completely wrong, but the song was a hit. Her vocals and beat distract from the real message of her song. If an artist of todays time made a song even close to B etty Wright's song then it would be titled as trash. For example, Trey Songz's â€Å"Cheat On You† has never been a hit. Although Trey Songz is a talented artist, his music will somehow never mount to the music of the past.Trey Songz and Betty Wright messages are the same, but Betty Wright's song was a hit. Songs with the same messages, but different time periods are looked at differently. One is titled as award worthy, but the other has never gotten the attention it deserves. Time has changed, but messages in music have remained the same. The contrast between music of different time periods is hard to find. Music of the past and music of the present both present the same messages. The music Generation Music By shidahbee

Beowulf: The Man, the Legend, the Hero Essay

Beowulf is an epic poem whose earliest surviving copy was written in 1000 A.D. The story consists of three thousand one hundred and eighty two lines that follow the life of the title character. The original author of the epic poem is unknown mainly because it started as a verbal tale passed down orally through the ages. Finally someone wrote it down in a document now called the Nowell Codex. The epic tale is centered on Beowulf and his actions in an adventure to repay a debt owed by his father to Hrothgar, a Danish king. A gargantuan monster that is terrorizing Hrothgar’s mead hall is Beowulf’s target and Beowulf sails across the sea to aid his father’s friend. Doesn’t he already sound like a hero? Well that’s because he is. Beowulf is a hero in every sense of the word. From his moral code to his actions, and beliefs this Geatish legend fits the archetype of a hero down to the finest points. All heroes set out on a quest. For what is unique to every story, but a quest is made all the same. This legendary hero of English lore sails across an ocean to take on a seemingly impossible task. For twenty four hours straight he and fourteen companions brave the oceans waters but reached their destination without a hitch. This seems odd for a classic hero. A journey going exactly as planned? Not likely. This alludes to the fact that this journey across the sea wasn’t the actual voyage he set out to make. The ultimate goal is Grendel. True heroes value their reputation. Beowulf’s reputation precedes him, as the Danes already know of many of his mighty feats. The value of a good reputation is also immeasurable in Anglo-Saxon society. When someone introduces themselves they say their name, son of their father. In Beowulf’s case when initially landing on the shores of Denmark, he says â€Å"The son of King Healfdene, have come here to visit.† This let the guard on the coast know that Beowulf came from good blood. Dishonor in one’s lineage in this time period meant dishonor for many generations in the future. The importance of a legacy leads toward the hero that Beowulf is, being shown in his actions. The King remembers Beowulf and acknowledges the fact that his lineage is an impressive one and believes that the hero, Beowulf has been sent by God to save the Danes from the wicked monster Grendel. Beowulf’s strength and endurance are legendary. Upon his arrival to Herot he recants the tale of his competition with Breca. All but one of the Danes is impressed by his tale making them believe that they will be saved. Unferth challenges Beowulf’s feat but, never to be put down, Beowulf clarifies the real story. The Danes are astonished by Beowulf’s adventure and rejoice at his presence. This admiration by his peers motivates Beowulf to do the task he has set out to do. The battle with Grendel also ill ustrates Beowulf’s might. He is initially looked at as a fool for even contemplating such a thing as not using a weapon, but in the end it pays off. His bare hands can dole out more damage than any sword in Herot and in one day of being there the monster is defeated. The Danish people begin to worship Beowulf. This almost cult following fills Beowulf’s ego just like a balloon, yet he doesn’t let it get out of control. He knows the people love him and is happy that his reputation held up. Yes, he works for the repayment of his father’s debt but also for the admiration of his fellow man. The people of Herot feed Beowulf’s desire to be recognized as a hero and therefore he agrees to revenge the death of Halga. He feels that it is his fault that Grendel’s mother has come to terrorize the city. The hero in Beowulf comes out and he protects the people. The protection of the weak is another archetypal hero characteristic that Beowulf exhibits. The people he protects for the first half of the epic, aren’t even his own. He still stands strong even for Hrothgar’s people, just to ensure his father’s debt is entirely paid back. Though he has almost surely done enough to maintain his father’s good name, he stays to make sure the people who have so generously accepted him into their town, are safe forever. Going in to the swamp himself showcases Beowulf’s leadership style. He wants to make sure all of his men return home safely, and the only way to do this is to only endanger one life, his own. This also lends itself to the idea that Beowulf is in his line of duty for glory. Here in this scene he takes the approach of â€Å"If I want it done right I will do it myself.† As the leader of this band of Geats he wants them to live to recant his legacy in the off chance of his death; to be immortalized in history as a brave warrior who died in the line of battle. The swim down to Grendel’s mother’s lair exemplifies Beowulf’s super-human qualities. It was said that he swam for the better part of a day, a deed which by human standards is impossible. Once at the bottom he faces the swamp hag in a battle which once again ends with his victory. When has a story ever had the hero die in the middle of the book? The fact that Beowulf just happened to see the giant sword on the wall shows that he is a hero because things go his way. As one of the oldest written stories of a warrior hero, Beowulf was the basis for all male warriors from this point on. Everything goes their way, the adversaries are defeated, and a celebration is had. The men on the surface had given up on Beowulf. They walked away from the edge of the swap and returned to Herot. But even with the odds stacked against him, Beowulf managed to defeat his enemy, and return safely to his men. The people under Hrothgar’s rule are ecstatic upon his return. Their savior has come back alive and with a trophy to display his victory. The scene that follows his return is also typical for a hero. He is showered with gifts and the admiration of the people. He receives gifts of great significance, not only monetarily, but also symbolically. Hrothgar gives Beowulf’s men gold and other treasures. To Beowulf himself, however, he gives much more than that. He gives armor, which any great hero will need in battle, and horses with golden bridles. On one of the horses lays the most symbolically important gift; a saddle specially fashioned for a King to ride into battle. This saddle shows that Hrothgar knows Beowulf is a hero, and one day will be a king. The hero always gets put up on a pedestal, this case a throne. Beowulf is king for fifty years before his next adventure, but he is the best king the Geats have had. Heroes seem to always come out well rounded, they are fantastic warriors, amazing kings, and great leaders. Beowulf fits all three of those throughout the epic, but especially in the last battle scene. The dragon is Beowulf’s final adversary. The dragon is a symbol for all evil, much like Grendel, and his mother were. This time however Beowulf has aged past his prime, yet hasn’t abandoned his strategy of diving in, headfirst, without back up. At last Beowulf has met his match. The dragon mortally wounds Beowulf but before he dies Beowulf puts up one last fight and lays the death blow onto the dragon. He defeated all of the monsters he was put up against but this last one got the best of him. He died the way he wanted to; in battle, living his warrior lifestyle for one last moment. The way Beowulf’s life ended forever solidified him in the category of a hero. In conclusion, Beowulf is a prime example of an archetypal hero. His valor in battle is only part of the equation. A true hero must also show the importance of leadership, reputation, protection, and strength. Throughout the epic poem, the title character exhibits all of those characteristics of a hero, and others as well. Beowulf is a hero no matter which way his character is examined, and a model for all warriors to come.

Egyptian political history( Prehistory-1500) Research Paper

Egyptian political history( Prehistory-1500) - Research Paper Example It established a political organization structure early in time to serve its people and delegated roles for its future prosperity. Military force protected the empires and performed the orders of the kings. Records also show that Egypt expanded its authority over the empires it conquered and made certain alliances with other empires to fight their enemies. The political power was initially inherited by the royal family, which formed the sequence of establishing a monarchy based government that controlled the economic activities of the empire. Monarchical Governments The ancient Egyptian government was a form of monarchy and theocracy. Precisely, the kings were said to rule by divine decree and if lucky to keep the empire together, the power to rule was inherited by members with the royal blood. However, there are instances where the women became queens and situations where the leadership was taken away by the conquering dynasties. According to the ICR (6), for about three millennia, that is 3150 to 31BCE when the Roman Empire took the territories of Egypt, Pharaohs ruled ancient Egypt. Pharaohs occupied the top position of the social hierarchies and ruled with absolute power. Pharaohs as political and religious leaders would rule till their death, when their heirs inherited the throne. Some heirs would take the responsibility quite early in age, and sometimes where there were no princes, the royal women could be married off to a royal person in the linage, to make bear heirs of the throne and ensure no power was spilled outside the royal family. Some of the lady Pharaohs comprised of Hatshepsut and CleopatraVII, while male rulers were Akhenaten who passed down the thrown to his son king Tun (Tunankhamun at age 9). They exercised their powers without hardship, because the people had already accepted them as their gods, or mediators to the gods, as well as their associated immeasurable power that they used to command the people, head their military, and make crit ical decisions when required. The reign of the Pharaohs can be divided into 3 kingdoms according to the periods (2700 to 2200 BCE) Old Kingdom, (2052 to 1786 BCE) Middle Kingdom, and (1575 to 1087 BCE) the new Kingdom, in which the numerous Egyptian dynasties were established (Connors et al 22). Some rulers strived to accomplish the objectives of their former rulers as they defended their dynasties through the militaries, brought political and economic stability and prosperity, unified the Egyptians after the conquests, unrests, and riots. Political Structure The political organization and command of power was centered with the supreme authority that rested on the Pharaohs. Although there were subordinates to the royal power, the kings’ decision was final at any required situation. Some kings ruled through their heirs, making it possible to oversee and maintain order within the entire Egypt territory. According to Kaplan, the government of ancient Egypt looked like the struct ure of a pyramid with respect to the division of power; such that the king was at the top, and beneath him a pool of workers that varied in the ranks (13). The king, though an individual with enough power to make a decision that would affect the lives of the people, had a team of elite or royal people who acted as his advice council and could at times influence his decisions. The viziers as the executive heads of bureaucracy occupied the powerful

Unemployment within the Labour Market is Primarily Voluntary Essay

Unemployment within the Labour Market is Primarily Voluntary - Essay Example Unemployment within the labour market is primarily voluntary But this hope was to prove a mirage as the trend reversed in subsequent months. Though the UK took a little while to catch up with the crisis in the United States, at the beginning of the second quarter of 2008, the region’s economy was in acute recession. It has been close to four years since the onset of recession and subsequent economic slowdown in the UK and the prospects for a turnaround in the region remains distant. The question of unemployment in the labour market, and whether or not it is ‘voluntary’ needs to be studied under these prevailing economic conditions. Also, a historical view of the role and operation of labour markets will lend clarity to the topic in question. This essay endeavours to do the same by way of analysing and synthesizing related scholarly resources on this subject. A look at the current unemployment problems in the UK reveals how acute a social, political and economic problem it has now become. For example, â€Å"Concerns have be en raised for a "lost generation" in the North East after the region was highlighted as a blackspot for youth unemployment. New research reveals that almost a third of people claiming unemployment benefit in the region are aged between 18 and 24, making the North East the worst region for youth joblessness in England. The figures released by the GMB union, showed there were 18,765 claimants within the age bracket in the North East last month, 30.9% of the total. That figure rose to 35% in County Durham, the fifth worst local authority area in the UK for young claimants.† (Lawson, 2011, p.6)... ng claimants.† (Lawson, 2011, p.6) Many politicians and social activists believe that increasing unemployment will lead to a ‘lost generation’ of such young people. This situation could lead to social fissures, with attendant increase in crime. Already, statistics from the North East is troubling: â€Å"six out of the nine areas in the region had more than the national average for young claimants. County Durham, Sunderland, Northumberland, Hartlepool, South Tyneside and Darlington were all above the national average of 28%† (Lawson, 2011, p.6) Further, for many youth in the region, there are no clearly defined career paths ahead. Such was not the case during the 1960’s and 1970s. Whether or not this unemployment situation is voluntarily sought or involuntarily imposed can be learnt from several surveys undertaken recently. What these surveys clearly indicate is the definite sense of ‘fear’ in the hearts and minds of the unemployed. To the extent that fear is seldom a voluntarily embraced choice, unemployment in present day Britain is imposed on eligible and willing workers. Participants of the survey were asked what they think will be the prospects for employment over the next year: â€Å"The balance between positive and negative answers has averaged 25 since its inception in 1982-the higher the number, the more people expect unemployment to rise. The findings shows, fear of unemployment rose very strongly in mid-2008, just as the unemployment rate started to rise, but then fell back through early 2010 to a low of 30 in February. The balance was 35 in May, 40 in June and 54 in July. The last increase of 14 points is the second-largest in the series ever, behind an increase of 15 in January 1991, when unemployment was also 7.8 per cent and rising.†

Strategies for community health promotion Essay

Strategies for community health promotion - Essay Example Thus, when the people’s health is at stake, while healthcare personnel might be responsible for initiating such moves, it would also be up to the people on whether or not they would do steps in order to keep their health at the most optimal state. Most people are more than willing to do things in order to keep themselves healthy. Some change their lifestyles, eating habits, and get regular checkups to maintain their health, which shows that people are capable of improving their lives. However, there are many instances that despite having the will to participate in such activities, some people encounter various hindrances that prevent them from attaining optimal health. Various factors can be attributed to such issues, such as socio-cultural factors, economic factors, or lacking information with regards to the importance of promoting health (Sines, et al.; 2009). Some persons may not be able to get proper medical attention due to their attitudes on health, such as deeply-rooted belief systems, or they may not have enough money to pay for doctors or medicine since they had to use money for much more important things, or simply because they feel that as long as they do not feel ill or they could still stand, they do not need to get any kind of medical attention (Hernandez, 2011). These kinds of outlooks regarding how overall health are viewed show that health promotion is not something that is solely affected by an individual’s attitude on health, but is also affected by other factors, whether external or internal. Thus, it is up to medical personnel such as community health nurses to create additional efforts in the creation of various methods by which interventions regarding the promotion of health within communities can be made, as well as identifying whether certain social or economic factors can be mediated to improve the outlook on health and wellness of people within an at-risk population. Description of an Aggregate Group for Community Health Promotion People belonging to at-risk populations mostly belong to either or both of the following: a population with high instances of developing the disease due to genetic factors; and a financially-disadvantaged population (Piper, 2009). In some communities or families it is the combination of having high disease risks and having financial limitations that cause problems in terms of keeping themselves healthy, and thus this describes the target group for the creation of health promotion strategies. For this study, Latino women living in Los Angeles were initially targeted as an aggregate group for community health promotion with focus on their outlook on health, particularly with breast cancer, an inherited disease. While their population in general is seen as a group with comparatively lower risks for breast cancer, some factors were identified to increase their risks for the disease such as socio-cultural and economic factors (Winchester, 2006). Due to the underlying problems surrounding the increase in their risks for the disease, some interventions are to be made to inform them regarding how the disease attacks the body, what treatment or other options are available for them within the community setting, as well as lobbying for them and raising their causes to at least the state government level. However, in order to understand their conditions

Business Growth Essay Example | Topics and Well Written Essays - 2000 words

Business Growth - Essay Example For an investor, growth is an investment style which looks for stocks with high earnings and revenue growth. Business growth can also be understood as any firm generating essential positive cash earnings or flows and that flow increases at faster rate than the general economy. Definitions and Business Platform The term platform is used in various different situations. Earlier the term platform was used as a synonym of operating system. However, today it has a wider meaning and is used to describe variety of situations. Business platform is a method which creates an environment of integration to accelerate approach of operation towards partners and customers. The business platform reduces the gap between the operations, partners and customers and brings them closer. Reducing the gap between these three important elements enables the business to perform efficiently and properly which leads to reduce cost of production and increase customer satisfaction. For growth of any type of busine ss customer satisfaction is very important and essential as today’s economy is a customer oriented economy ands not product oriented (Zook, & Allen, 2001) . The business platform not only brings these three vital elements closer but also finds efficiencies and unlocks innovations from every part of the business. Business platforms have number of characteristics in common. Platforms are open to everyone and can be put up easily. Even though, platforms can be commercial or non commercial no one needs to take permission or pay money before building up a business platform. Platforms magnetize builder’s community, in order to increase these communities; these communities should be taken care of and managed properly. Building community helps in building the business more efficiently as because of the community one get help of suppliers, customers and partners. It removes barriers and makes flow efficient by giving the option of self-service access. Platforms do not different iate between large and small builders. Some platforms allow participation of small builders in the competition and these businesses sometimes even disturb present businesses. It is a two way contract between builders, who utilizes the platform and the platform provider, who offers the platform services to builders. Sometimes it has been seen that platform assist unexpected conclusions. Platform is a good thing when managed properly. We experienced in our project that platforms are very important to make people aware of our product. Platforms can be easily understood as Marketing. For our project we took help of different platforms like we announce about our project in mosque, stick posters on the walls of mosque, send direct marketing emails and text friend to pass this message. Below given are the stages, which a business goes through It has been observed that fast growing companies are disordered places to work. With the expansion of work and business, things or strategies which h ad worked well in past, start weakening and add no help. People and teams get flooded with workload and with the expansion of business, same managers who were very efficient earlier start committing mistakes with their expand area of control. Because of increase work load systems start collapsing (Burke, & Barrow, 2008). Growth is pleasure when everything goes right however it is even more stressful when things happen incorrectly. Apart from this,

Research Ethics Essay Example | Topics and Well Written Essays - 750 words

Research Ethics - Essay Example The respondent may find themselves manipulated into saying more than they intended. The onus must lie with researchers to establish their own ethical code in such matters. (Ball, 1991, p. 181) Ethics in research has become a part of every scientific research project, whether politically or morally motivated. Educational research is no exception. However, the model it has been based on may be in need of serious review in order to more effectively guard against not only unethical practice but of inappropriately applied standards. For the past several centuries, medical models of ethics have been used as a general guideline for ethical standards in many professions, including education. This is no surprise since over time science and medicine have provided a substantial body of literature on the subject over the course of several successful and unsuccessful attempts as ethical research behavior. â€Å"The more notorious accounts of unethical research practice are found in medicine, as indeed are the most notorious recent instances of scientific fraud. And for a philosophical contribution, there is the discipline of bioethics.† (Small, 1998, p. 103) But what is ethical behavior? One dictionary defines ethical behavior as conforming to the standards of conduct of a given profession or group. What researchers consider being ethical, therefore, is often largely a matter of agreement among them. (Wallen & Fraenkel, 2001) Ethics has to do with standards set by the profession and regulation of its members conduct. In everyday application, it involves not a philosophical examination of values but recognition of agreed standards. Therefore, there may be tension between personal moral standards and the ethical norms of a profession (Kfir & Shamai, 2002) There is always a give and take between the three fundamental rights of the various constituents involved in all research. First are the

Maketing Report Essay Example | Topics and Well Written Essays - 750 words

Maketing Report - Essay Example Currently, Fashion Sense is based on providing popular wear to teenagers and young adults. However, most of this caters to the youth that are in the United States. Since Fashion Sense is at an international level, there is the need to find popular trends that are based on newer concepts and fusion wear that can be used in different countries. To begin, Fashion Sense will need to develop a line of products and second brand name that can be used within a different market. To begin, there will be an analysis of the most popular areas that are looking into international trends which are considering the option of moving into Western styles. Fusion wear is now becoming popular in places such as Singapore, Eastern Asia and parts of India. However, the melting pot regions in these areas are also known to be more conservative than most of the Western wear styles. For Fashion Sense to move into this region is the need to develop a new line of products that is specific to each area, specificall y with a focus on trends and styles that are incorporated into the Eastern regions (Patel, 2010). Since international trends are becoming more popular in Eastern regions, but there are still cultural borders, Fashion Sense will be most effective by looking into a product line and brand name that is specific to each region. Creating a brand based on western wear while combining different aspects of ethnic looks will provide an appeal for trends that can easily be accepted in the culture while remaining fashion forward. More importantly, this line of products will help to diversify and establish the product line of Fashion Sense. By creating this branch of products, there will be the ability to move into more than one target market for youth while remaining fashion forward with the line of products. The traditional promotions of Fashion Sense will be the first way in which the line is promoted. The marketing mix of the product, price, place and promotion will be

Marketing principles Essay Example | Topics and Well Written Essays - 2000 words

Marketing principles - Essay Example Nike's core business is in the research design and marketing on a global scale of shoes, equipment, apparel and related services, with a special focus on athletic apparel as well as athletic footwear. Present in more than 190 nations around the world, Nike utilizes a variety of distribution channels, including the Internet, Nike-owned stores, and retailers, even as the Nike stores are either owned by the company directly or are franchised to others. Aside from athletic gear, Nike is also present in the segment of recreational wear, and there is an overlap in the categories as they pertain to the sale of specialized sports and leisure apparel for different sports, including cricket, American football, wrestling, baseball, lacrosse, walking, golf, activities in the outdoors, volleyball and tennis. It is heavily present too in the major team sports globally, including football,.soccer and basketball. The seven categories around which the Nike business are organized, meanwhile, are as fo llows: Action Sports, Basketball, Nike Sportswear, Soccer, Running, Women's Training and Men's Training. The company has a line of products for children, and its product lines also include other accessories as well as bags. It's IHM subsidiary is a direct to customer distribution channel, and it is via this channel that Nike is able to tap into a network of non-affiliated entities to produce and market goods under the Nike name, including devices, apparel, and software applications together with all sorts of other equipment. The company owns Converse as a wholly-owned subsidiary, through which the company manufactures and markets products under certain key brands, including Chuck Taylor and Jack Purcell. The company also owns the Hurley International, through which it markets apparel as well as accessories for young people and for those engaged in action sports activities. On the other hand, it has disposed of its Cole Haan and Umbro brand, the latter a marketer of soccer-related ap parel, accessories and general merchandise (Google; Reuters). There is no better way to gauge the performance of the company and the overall success of its marketing strategies than to look at how the share price of Nike has fared historically. Looking at the financial performance of the firm in this respect, one sees that the company has done well crafting and executing on its marketing strategies and marketing mixes. The chart below shows that Nike's stock has done well over the past ten years, indicating such success. The stock price chart shows that the company's shares have consistently been on an upward trajectory by way of stock price trends, and generally doubling over the past three to four years on the back of a successful overall business strategy and marketing strategy(Google) : Graph Source: Google II. The 4 Marketing P's as they Apply to Nike The above discussion points us to the various brands, product lines, and product categories or segments where Nike has chosen to compete, and it is clear that the focus on athletic apparel and athletic wear in general is a major company focus that has contributed to much of its success.

The American Frontier and the Western Hero Essay

The American Frontier and the Western Hero - Essay Example He is a real hero who possesses the features of an ideal man, and personifies high moral values and physical strength. Wister depicts the Virginian as a person who is able to distinguish what is good and what is bad, and who follows his personal beliefs. He is described as: "The dealer had styled the Virginian "a black-headed guy." This did well enough as an unflattered portrait" (Wister, 34). The Virginian tries to make a better world paying a special attention to universal order and peace during the Johnson County War in Wyoming. The main character of Susan Warner's novel is "Christian Character", Ellen Montgomery. Female characters in the novel are depicted through minor themes such as the themes of motherhood and religion. Christianity and church was a strong force which dictated social norms and social order. At the beginning, Ellen is depicted as a devoted parishioner who follows all values and commandments. he main similarity between the male and female characters is their desire to fight for freedom and justice which limits their behavior. The Virginian is a leader who possesses self-belief and tolerance, which helps him to create the reality; he is a high moral person who fights for justice, harmony and orderliness of the universe.

The Analysis of Crisis Communication Strategies Essay Example for Free

The Analysis of Crisis Communication Strategies Essay By definition crisis is a situation that has reached a critical phase (Crisis definition). Crisis is characterized by its lack of stability, unpredictability and short decision-making time. According to Fearn-Banks (1996) crisis is â€Å"a major occurrence with a potentially negative outcome affecting an organization, company, or industry, as well as its publics, products, or good name†. The negative consequences of a crisis are not limited; crisis can be, but not necessarily, a very serious threat to organization’s functioning and stability. Some scholars argue that an organization can benefit from a crisis situation if such is handled properly (Ulmer, Sellnow, 2000). Communication scholars have been conducting multiple researches, seeking to formulate some generalized and applicable theories of crisis communication and crisis management. Since crisis is a crucial period in lifetime of an organization that can affect its future, understanding crises and knowing how to manage these difficult situations effectively are essential skills that corporate managers should posses. This paper will explore the crisis of Redux Beverages which was caused by controversy surrounding the launch of the new product. On September 25, 2006, a new Las Vegas based brewing company – Redux Beverages launched a new energy drink called Cocaine. Since the first days on the market the drink has become very controversial. The public didn’t have a problem with the content of the new beverage, which is very similar to Red Bull or Monster. It was its’ name that people didn’t really feel quite right about. Redux Beverages’ CEO and inventor of Cocaine, Jamey Kirby thought that naming an energy drink after a dangerous narcotic was â€Å"a fun name†, the public, however, did not agree (â€Å"Cocaine drink claims† 2006). The negative publicity that Redux Beverages received as a result of the launch of new product led to the eruption of a reputational crisis. The public accused Redux Beverages of promoting and glamorizing drug usage among teens and young adults, who are the major target and consumer of energy drinks. Just about a month after the introduction of Cocaine a convenient store giant 7-Eleven decided to pull Cocaine from the shelves (Mooney, 2006). The controversy related to Cocaine energy drink continued throughout the fall and winter. People started questioning not only the name of the drink, but also the marketing strategy used by Redux to promote their product. On April 4, 2007 the Food and Drug Administration issued a warning letter notifying the firm that their product was marketed illegally as an alternative to an illicit drug and a dietary supplement. The letter from FDA claimed that â€Å"street drug alternatives, i.e. , products that claim to mimic the effects of recreational drugs, are not intended to supplement the diet and, as a result, cannot lawfully be marketed as dietary supplements† (Douaud, 2007). Moreover Redux Beverages was accused of having identified some of the drink’s ingredients incorrectly as dietary supplements that could lower blood cholesterol, protect nerve fibers, or help patients with anxiety, depression and obsessive-compulsive disorders. The FDA threatened that the failure to respond to these violations would result in legal actions (Other, 2008). On May 5, 2007 Redux Beverages announced that the company decided to temporarily cease the distribution of Cocaine. In the same announcement the beverage’s makers notified consumers that the drink will be still available for purchase under a different name – Censored. Redux Beverages crisis isn’t an example of a severe, dramatic case. Unlike some crises, Cocaine crisis wasn’t unexpected. The makers chose a scandalous name because they knew it would be controversial and as Jamey Kirby said â€Å"controversy sells† (Nizza, 2007). The controversy was expected and somewhat desired. Redux Beverages knew that breaking into the energy drink market was a very challenging task and that they had to come up with a marketing strategy that would win them new customers. It was quite obvious that naming an energy drink after an A-class narcotic would result in negative opinions and outrage, what was not predictable was the extent of that outrage. Redux Beverages could not have predicted that the product will be eventually pulled from the shelves and that the controversy surrounding the product would initiate a battle with the Food and Drug Administration. This situation could be explained with chaotic systems theory – the uncertainty of how people will react to the launch of a controversial product resulted in inaccurate prediction of long-term outcomes (Sellnow, Seeger, 2001). Due to the controversy surrounding the launch of Cocaine energy drink Redux Beverages’ public image has suffered. The firm was accused of promoting and glamorizing drug use among teenagers and young adults. The marketing strategies used to promote the drink were perceived negatively and were widely criticized. In response to such accusations Redux Beverages used some of the theorized by Benoit known as Image Restoration Theory. According to Benoit (1997) image repair strategies can be applied if an individual or an organization is perceived as responsible for an offensive act. Moreover Benoit (1997) claims that it is not important whether the act was truly offensive; important is what people’s perceptions are and if the public believes that an organization committed a heinous action then its reputation and stability is at risk. In case of Redux Beverages one could argue that the act was not extremely offensive and people’s reaction might have been exaggerated, still the percentage of negative responses from the audience was that high that Redux had to react and address the arisen issues. At first Redux Beverages’ representatives appeared to be quite difficult to reach. Numerous news reporters covering the story stated that they had been unable to reach anyone who could represent the firm and make some comments regarding Cocaine controversy. Throughout the duration of the crisis Jamey Kirby, the CEO and inventor of Cocaine had been the most active spokesperson for the firm. Kirby denied the accusations of promoting and advocating drug use to young people. Kirby focused mainly on reduction of offensiveness of the committed act; he used image restoration strategies such as: bolstering, minimization, differentiation, transcendence and attack accuser (Benoit, Czerwinski, 1997). In the first few interviews Jamey Kirby responded to some of the questions regarding the controversy surrounding his product Cocaine. In efforts to defend the drink Kirby highlighted some positive aspects of Cocaine (bolstering) – in an interview for CNBC Street Signs Kirby said that Cocaine is the energy drink that has â€Å"by far the best quality†; according to Kirby Cocaine doesn’t give the consumer a â€Å"crash from the sugar and the jitters from the caffeine† (Burnett, 2007). But even with that having been said the public remained outraged and kept accusing the drink makers of promoting illegal drugs, especially to teenagers and young adults. The public was concerned that the marketing of the controversial drink was mainly focused on media channels such as MySpace and YouTube that are known from being widely used by young, impressionable people. Kirby uses minimization claiming that â€Å"people know the difference; I don’t think people will look at our drink and say, ‘Oh, I’m going to buy some real cocaine’†(William Pres, 2008). This was definitely not the best response. Teenagers are definitely a very impressionable group and ignoring the risk of selling a product that could potentially cause some to reach for an illegal substance is pretty irresponsible. Some outraged people raised voices that not only is Cocaine advocating drug use, but also putting at risk the health of its consumers due to a very high content of caffeine. According to the product’s label an 8. 4 ounce can contains 280 milligrams of caffeine, 750 milligrams of taurine, guarana, B vitamins and sugar (Redux Beverages, LLC). All these ingredients are supposed to give the drinker the energy high. Some people were concerned whether such high doses of caffeine will not harm young drinkers. In response to these concerns Kirby used differentiation and compared the content of a can of Cocaine to other energy boosting beverages such as Starbucks coffee. In the interview for CNN News Room Kirby says â€Å"if you look at the other beverages on the market a Starbucks 20 oz. Grande Coffee has 500 milligrams of caffeine we are just slightly over half that, so we don’t have any pathological levels of caffeine in our drink†(Nguyen, 2007). Kirby’s comment may seem to be a bit irrelevant, especially if to look at the fact that he compared 500 milligrams of caffeine in a 20 oz.size cup. If to pour Cocaine drink into a 20 oz. cup one would drink an equivalent of almost 670 milligrams of caffeine, nearly 1786 milligrams of taurine and even more energy boosting ingredients. As a result of the controversy and negative public response to the new energy drink the Food and Drug Administration decided to step in and take a closer look at Cocaine drink and its marketing. In April of 2007 the FDA issued a warning letter in which Redux Beverages was accused of marketing Cocaine drink illegally as an â€Å"alternative to an illicit street drug† (Other, 2008). Moreover, the Food and Drug Administration disliked the fact that Cocaine was marketed as a dietary supplement â€Å"intended to prevent, treat, or cure disease conditions† (Cruse, 2007). According to the product’s label one of the ingredients, more specifically inositol â€Å"reduces cholesterol in the blood; helps preventing hardening of the arteries, and may protect nerve fibers from excess glucose damage†(Cruse, 2007). Redux Beverages was given 15 days to correct the violations, otherwise the company would have faced legal responsibility (Other, 2008). In response to this occurrence Jamey Kirby said: â€Å"We are correcting the violations that the FDA believes we have†. As a result Redux Beverages initially made some changes to the marketing strategy and removed slogans such as: â€Å"liquid cocaine† and â€Å"speed in a can†. The webpage was also corrected and instead of calling the drink a dietary supplement Cocaine had become an energy supplement (Other, 2008). In the beginning of May 2007 the official webpage of Cocaine energy drink announced that the beverage’s distribution had been temporarily ceased. Following the decision Clegg Ivey, one of Redux Beverages partners revealed that the company was planning to keep selling the drink under a different name which would be released soon. In addition Ivey made a quite ridiculous comment advocating the product: â€Å"Of course, we intended for Cocaine energy drink to be a legal alternative the same way that celibacy is an alternative to premarital sex†. Ivey also revealed that Redux decided to cease the distribution of the product because the FDA had threaded with punishment by imprisonment (Serrano, 2007). Few days later Redux resumed the sale of Cocaine under a new name – Censored. The official website of Cocaine drink featured multiple slogans and notifications marking the end of Cocaine. The new slogan for Censored energy drink was â€Å"Censored by the Man† which clearly referred to FDA’s decision to ban Cocaine name. On July 17th of 2007 Redux Beverages decided to change the name of the former Cocaine once again. The new name would actually be nameless. Redux Beverage’s new marketing strategy was to sell the drink in a can that looked almost like a red former Cocaine can; the difference was that the logo was missing. The drink makers decided to design a can which would feature a blank box in which consumers could write whatever name they wanted. Since then the controversy surrounding Cocaine energy drink had started to die down. That was until early 2008 when the energy drink was re-released under its original name. Redux Beverages had addressed and corrected the violations highlighted by the FDA and resumed sales of Cocaine. The marketing strategy had been modified. Cocaine was available in three versions: original (with the throat-numbing effect), cut (mild version) and free (sugar-free). Following the re-release the Food and Drug Administration issued another warning letter. On July 9, 2008 Redux Beverages received another warning in which the FDA expressed concerns regarding fonts used by Redux on the drink cans. Cocaine was distributed in red, 8. 4 oz. cans with a logo spelled out in a white, powdery font. The letters resembled letter-shaped lines of drug cocaine. In addition, the FDA had objection to the use of word â€Å"cut† as to an additional logo tagging a milder version of the drink. Jamey Kirby responded to these accusations with transcendence: â€Å"In the last year or so, the US has experienced life-threatening problems with our domestic supply of tomatoes, spinach, peanut butter, imported seafood and even pet food. Worse, many experts predict that the next terrorist attack could focus on our food supply. So, why is the FDA wasting its precious resources complaining about what fonts Redux is using to advertise our product? † (just-drinks. com editorial team, 2008). In this situation using a strategy such as transcendence cannot result in anything positive. Kirby accused the FDA of bothering him with some ridiculous claims while more important work should be in progress. Then the company attacks the FDA and makes fun of the agency saying: â€Å"School teachers everywhere should now be on notice that things written in chalk will be scrutinized more closely by the federal government and could subject the chalk-bearer to civil and criminal liability. No word from the government on whether a chalk ban is next, but school districts across the nation would be well-advised to consider a shift to dry-erase boards. But please, for goodness sake, do NOT sniff those markers! † (just-drinks. com editorial team, 2008). Eventually Redux Beverages decided to use yet another image repair strategy – corrective action – and announced that the firm is working to address the FDA’s concerns and correct the violations that the agency had identified. The case of Redux Beverages from the Image restoration Theory could serve as a great case study presenting a script for image abolition. Redux Beverages has not done anything to lift up the company’s public image after the onset of crisis. The majority of press releases made by Redux during Cocaine controversy didn’t help to persuade the public that their concerns are unnecessary and groundless, but rather reassured them that Redux doesn’t care about anything else than sales and profit. Since public opinion about the company and its product are very important in Cocaine crisis, the case could be also analyzed from the perspective of Group Opinion Formation Process. Many people express concerns about impressionable groups such as teenagers or young adults who may be easily influenced by mass media or peers that can result in some reckless decisions. Many adults react with outrage when they see that their children may be exposed to things such as cigarettes, alcohol, sex or drugs. According to Struges (1994) theory of Group Opinion Formation these concerns could be classified as the first step of group opinion formation (1)â€Å"latent issue†. Redux Beverages’ launch of Cocaine energy drink would be the second step representing the (2) triggering event. Then the controversy and people’s debate would represent the next two steps of the process – (3) formation of pros and cons and (4) debate initiation. Then the onset of crisis would represent (5) the time lapses which leads to (6) formation of public’s opinion. In case of Cocaine crisis the public’s opinion about the company was mainly negative – Redux Beverages has received countless words of criticism and contempt. The last two steps involve formation of (7) social action and (8) social norm (Struges, 1994). Generating and maintaining a positive public opinion is vital for organizations, thus if the initial opinion about a company is positive, then the chances of keeping this perception during crisis are significantly higher. Redux Beverages has generated a negative public opinion during the onset of Cocaine crisis, if to suppose that the company will face another crisis in the future it will be much more difficult to gain the support of the public and generate a positive public image. The theory purposed by Struges (1994) is somewhat related to Coombs (2007) theory of Situational Crisis Communication. The SCCT recognizes reputation as â€Å"a valuable, intangible asset† which â€Å"can attract customers, generate investment interest, improve financial performance, attract top-employee talent, increase the return on assets, create competitive advantage and garner positive comments from financial analysts† (Coombs, 2007). Organizations with better reputation before crisis will still have better reputation than organizations which pre-crisis reputation was poor (Coombs, 2007). In case of Redux Beverages the crisis which had occurred between 2006 and 2008 was not too serious. The company had encountered some financial losses due to the temporary cease of distribution and several rebranding actions. Still, the crisis dealt mainly with the firm’s public image and reputation loss. According to Situational Crisis Communication Model if Redux Beverages is to face a more serious crisis in the future the company is very likely to suffer much more than in the aftermath of Cocaine controversy. The two components linked to the previous crisis – crisis history and prior relationship reputation will negatively affect the attribution of crisis responsibility. Knowing what strategies Redux Beverages used to deal with the previous crisis it is very likely that the potential crisis response strategies will also increase the attribution of crisis responsibility. Redux Beverages poor reputation and high attribution of crisis responsibility will result in public’s negative reaction to an organization. In case of another crisis, Redux Beverages is much more likely to be held fully accountable for the offensive act. Redux Beverages have not done any work to prepare for any potential crisis. The firm does not follow any of the ten best practices for risk and crisis communication purposed by Venette (which include: 1. Process approaches and policy approaches there has been no data released about any policies formulated by Redux Beverages. 2. Pre-event planning – Redux Beverages was not prepared for the crisis caused by controversy surround sales of Cocaine and continues its operations without any pre-crisis planning. No data has been released that would state otherwise. 3. Partnership with the public – Redux beverages seems to care about the sales, and thus about their buyers. Still Redux doesn’t seem to be concerned about their consumer’s health and disregards any doubts about the safety of their highly caffeinated product. 4. Listen to the public’s concerns and understand the audience – Redux Beverages failed to address the public’s concerns regarding the risk of selling a product that is being marketed as a street drug alternative. 5. Honesty, candor and openness – Redux Beverages repeatedly denied comments and interviews with proves that the honestly and openness are not the company’s priorities. 6. Collaborate and coordinate with credible sources – the conflict with the Food and Drug Administration indicates that the organization doesn’t collaborate and is not coordinated with credible sources. 7. Meet the needs of the media and remain accessible 8. Communicate with compassion, concern, and empathy – Redux Beverages fails to communicate in this manner. 9. Accept uncertainty and ambiguity 10. Messages of self-efficacy. The way in which Redux Beverages decided to manage the crisis caused by the controversy surrounding the launch of a new energy drink was not very effective. The crises communication strategies chosen by the organization didn’t really help its reputation and basically created a solid base for even worse crisis in the future. The lost reputation of the company will cause that any little mistake on their behalf will never be perceived as an accident or misfortune, but rather as their own fault. Redux Beverages has not gained any support in the eye of the public, nor governing and legal agencies. The only success of Redux Beverages is that the company gained the rights to re-release and resume the sales of the energy drink with a controversial name – Cocaine. References Benoit, W. L. (1997). Image repair discourse and crisis communication. Public Relations Review, 23(2), 177-186. Benoit, W. L. , Czerwinski, A. . (1997). A critical analysis of USAir’s image repair discourse. Business Communication Quarterly, 60(3), 38-57. Burnett, E. (Speaker). (2007). Cocaine energy drink [Television series episode]. In CNBC Street Signs. New York. Cocaine drink claims to be real thing. (2006, September 21). Mail Online, Retrieved from http://www. dailymail. co. uk/news/article-406304/Cocaine-drink-claims-real-thing. html Coombs, T. W. (2007). Protecting organization reputations during a crisis: The development and application of situational crisis communication theory. Corporate Reputation Review. 10(3), 163-176 Crisis definition. (n. d. ). Retrieved from http://www. merriam-webster. com/dictionary/crisis Cruse, A. E. . Public Health Service Food and Drug Administration , Los Angeles District . (2007). Warning letter (W/L 10-07). Irvine, CA: U. S. Department of Health Human Services. Retrieved from http://www. fda. gov/ICECI/Enforcement Actions/WarningLetters/2007ucm076349. htm Douaud, C.. (2007, June 19). Cocaine goes no-name. Nutraingredients USA, Retrieved from http://www. nutringredients-usa. com/Industry/Cocaine-goes-no-name Fearn-Banks, K. (1996). Crisis communications: A casebook approach. Mahwah, NJ: Lawrence Erlbaumn Just-drinks. com editorial team. . (2008, July 11). US: Redux accelerates cocaine rebranding on fda pressure. Retrieved from http://www. just-drinks. com/news/redux-accelerates- cocaine-rebranding-on-fda-pressure_id94412. aspx Mooney, P. N. . (2006, October 27). Cocaine energy drink pulled from 7-eleven shelves [Web log message]. Retrieved from http://www. associatedcontent. com/article/78750/cocaine_energy_drink_pulled_from_7el even. html? cat=71 Nguyen, B. (Speaker). (2007). In CNN News Room. New York: CNN. Nizza, M. (2007, May 7). The end of cocaine the beverage [Web log message]. Retrieved from http://thelede. blogs. nytimes. com/2007/05/07the-end-of-cocaine-the-beverage/ Other, . (2008, February 6). Cocaine energy drink back on the shelves. Convenience Store News, Retrieved from http://www. csw. com/top-story- cocaine_energy_drink_back_on_the_shelves-43048.html Redux Beverages, LLC, . (n. d. ). Cocaine Energy. Retrieved from http://www. drinkcocaine. com Sellnow, T. L. , Seeger, M. . (2001). Exploring the boundaries of crisis communication: the case of the 1997 Red River Valley flood. Communication Studies, 52(2), 152-167. Serrano, A. . (2007, May 7). â€Å"Cocaine† pulled from shelves nationwide. CBS News, Retrieved from http://www. cbsnews. com/stories/2007/05/07/health/main277254. shtml Struges, D. L. (1994). Communicating through crisis: A strategy for organizational survival. Management Communication Quarterly. 7(3), 297-318. Ulmer, R. R. , Sellnow, T. L. (2000). Consistent questions of ambiguity in organizational crisis communication: Jack in the Box as a case study. Journal of Business Ethics, 25(2), 143- 155. Venette, S. J. (2006). Special section introduction: Best practices in risk and crisis communication. Journal of Applied Communication Research. 34(3), 229-231. William Pres, . (2008). Cocaine – the new energy drink. Retrieved from http://hubpages. com/hub/Cocaine_-_The_NEW_energy_drink.

The Analysis Of Pz Cussons Website Marketing Essay

The Analysis Of Pz Cussons Website Marketing Essay E-commerce has the capacity to improve existing businesses and also expand operational efficiency. However, in the wake of fierce competition, businesses are forced to be at their best as competitors are just a click away. (Xia Yang et al 2003) The limitless potentials of the internet in todays world have revolutionized the way business is done all over the globe thus making the world a global village. The thrust of this paper critically overviews the web site of PZ Cussons as a communication medium; in line with e-business management theory, the paper discusses issues bordering on advertising and branding. PZ was founded in 1879 by George Paterson and George Zochonis in which they set up a trading post in Sierra Leone. By 1899, they opened their first branch office in Nigeria (http://www.pzcussons.com/pzc/about/ourhistory/). The company has recorded remarkable achievements since then. The company majors on manufacturing leading brands of household items from soaps to milk. With the emergence of the World Wide Web, PZ Cussons is poised to take its business to the next level by taking advantage of technology. Needless to say that with the advent of e-business PZ Cussons should do even better. In todays world, it would be difficult to extricate a companys success from its website as this can either attract customers or repel them depending on customer relationship techniques employed by the web designer. The consistent growth in technological advancement and inventive initiatives has made tremendous impact and also made e-advertising interactive, exciting, and affordable to businesses. This paper analyses the website of PZ Cussons in relation to its competitors and highlights how PZ Cussons can benefit from vast potentials of the internet in advertising and promotion as well as building a better brand. Advertising Research has shown that much of what is expected from a website is largely dependent on the consumer. Lu and Yeung 1998 suggests that human to computer interface design factors are applicable to commercial web applications. However, the nature of the business and the way the business is done has to be taken into consideration when developing a web site. Putting together and responding to consumer feedbacks are an important part of communication activities when attempting to convert a first time buyer to a potential customer, as such fostering an online relationship. (Berthon et al 1996) In a bid to explore empirical studies and dimensions created basically for research on advertising, past works have attempted to forecast consumers behaviour towards internet advertising. It has been observed that culture or beliefs play a more pivotal role in consumers purchase intention rather than other factors like creativity, market size or internet usage. (Yang 2003). With the advent of e-commerce, PZ Cussons have taken up the initiative to advertise its company on the web, however, a lot of issues regarding the website would be discussed in the course of this paper. The process of ensuring that a site visitor becomes a customer and is retained is actually a proactive approach that can be stimulated by interactive features on the site (Geissler 2001). For most businesses, the home page in itself is an advertisement (Singh and Dalal 1999). The appearance of a home page can either engage a customer to go further or make the customer go elsewhere. It is imperative for the company or web designer to make the site as interactive as possible to enable businesses gain higher customer retention. Even as advert placement on web sites has become a normal occurrence in e-business world, it is noteworthy to comprehend internet advertising and understand consumer reactions or behaviours to advert placement on the internet. It is a well known fact that those who are optimistic about advertising are likely to be convinced by advertising (Mehta 2000). If a web site is very effective, it would always encourage first time visitors to the site to make a future purc hase of goods or services offered for sale. Since its origin in early 1990s, the structure of internet advertising has progressed from banner ads, spam emails, interstitials, superstitials, site sponsorships, and involuntary browser relocations (Yang 2003). Adverts online have consistently come under criticism (Bulik 2000b) and have been often considered as unnecessary and imprecise (Hwang and Kranhold, 2000). It has been argued that there is no inter-relation between advertising and corresponding results such as sales or profits (OConnell, 2001). Some Benefits of Online Advertising The power of the internet cannot be overemphasised as its reach is global at a fast pace. Online advertising has identified new means of passing personalized messages to be conveyed to specific customers. Most people these days would rather spend more time online than read a conventional newspaper. As such, businesses are more likely to create a greater awareness from online advertisement. It has the capacity to properly segment customer base as well as measure the impact or effectiveness of an advert. Online advert gives the customer the opportunity of choice based on their knowledge of a companys product or services. Website Effectiveness Although a lot of work has been done in the overall area of e-business (Hoffman Novak, 2000; Kauffman Walden, 2001) however, to further drive down the issues with PZ Cussons web site, we would take a look at Nathan Heinz and Quing Hus web site measurement effectiveness technique to help analyse their internet advertising application. They classified web site measurement effectiveness technique into three categories which are; the interactivity metrics, the information metrics and the service metrics. (Heinz and Hu 2006) Interactivity involves a platform in which customer feedback is encouraged for optimum performance. It also includes the availability of search engines on the web site as well as live chat or blogs in order to get the customers candid opinion on products or services. It also maintains a data base for registered customers. Zhu and Kraemer (2002). Information involves true and precise information on the web site at a particular time. This refers to continuously updating clients with reliable information on goods or services offered for sale. For example the cost of product or services and updating photos of new stock etc. It also encompasses the concept of simplicity of information passed across and gives detailed analysis of product uniqueness and relevance. This, if communicated effectively would go a long way in retaining first time customers. Kim et al (2002); Barnes and Vidgen (2003). Service involves maintaining good customer care operations as well as responding to customer query or issues. It also involves timely processing of online orders and security of online transactions on a web site. It also involves intermediating with social networking sites like face book to maintain an online community for excellent customer service. Barnes and Vidgen (2003); Rust and Lemon (2001). Analysis Based on Theory When we closely observe the PZ Cussons web site based on these three classes of efficiency measurement, we can see that interactivity level is very low. Site navigation and interactivity are significant factors of system quality for web buyer satisfaction (McKinney et al 2002). There is the absence of chat rooms to encourage customer interactions of feedback on brands. Though there is a search engine in place it is however limited to the site instead of expanding search capability to other search engines such as goggle. On the information metrics, it has been observed that PZ Cussons does not update its web site quite often to notify customers of changes made to products or upcoming events. Liu and Arnett (2000) highlight information provision as a major factor in the success of e-business web sites. PZ Cussons produces a wide variety of brands and with competitors such as Proctor and Gamble and Nestle, a lot needs to be done in terms of quality of information and timeliness of delivery. The service metrics on PZ Cussons web site shows very customer biased attributes as the is the absence of an online register, no avenue for customer registration online so no opportunity for feedback on customer queries on brands, there is also no opportunity for placing online orders so the issue of timeliness of orders does not even arise. Quite clearly, PZ Cussons has been able to develop their brand name over the years but are yet to tap into the vast potentials of the web for a greater market share. Branding A brand has been viewed as a promise made by a company to its customers and not a name or statement (Sterne 1999). Given the emergence of the World Wide Web and the revolution in the way business is being done across the globe, it would be expected that the perception of brands would come under a new dimension (Rowley 2004). Also, Ward and Lee (2000) suggest that an effective online presence is pivotal to a brands online success. A brands website has the capacity to create an impression on the consumer (Muller and Chandon 2003). From the graphics and pictures to texts on a web page can either attract or put off potential buyers. Chiang, I-Ping (2008) also suggests that brand awareness can be used together with specific consumer requirements and consumer behaviours to better position online brands. Most small and large businesses across the globe today can boast of an online presence. However, creating an online presence is hardly enough as Porter (2001) suggest that creating an online presence at a point in time was a competitive advantage but today a web site requires more competitive and distinctive features in order to achieve competitive advantage. The elements of a web site can be classified in different contexts depending on the products or services being marketed on the web site. For instance a car manufacturers website cannot be designed in the same pattern as a fast food website. World brands seek to identify with values that are common to many communities such as safety, style and status and service, which can be classified in different ways in diverse national contexts (Rowley 2004). However, for the purpose of the analysis of PZ Cussons website we would analyse the following elements: Logo, Graphics, Colour, Texts, Currency and news (Rowley 2004). Logo A logo presents a graphic language and discipline for the clear, consistent reflection of a companys visual identity (Henrion and Parkin 1967). Although the PZ Cussons brand name has built a reputation for itself in Africa, Asia and Europe over the years, it has done very little to project its logo. Its red, blue and white logo remains in it simplest form. Some of its leading brands like Venus have become more popular than PZ Cussons as a result of its inconspicuous logo. The logo represents a companys corporate visual identity through official corporate symbol (Balmer 1995). It is believed that a company corporate identity transcends mere symbols and signs but relates more to issues like corporate culture. Graphics This refers to visual logos, pictures and other images that may depict a brands values on a website (Rowley 2004). There are not too many graphics on the PZ Cussons web site, the pictures are not holistic and does not reflect the charisma of the company. Also, the Web Content Accessibility Guideline reveals that the PZ Cussons website is using (WCAG WAI) 1.0 (1999) which is an outdated version. Colour The PZ Cussons website makes use of a white background with red and blue colours. This is a very common colour combination as millions of websites use this same colour combination. This does not give any uniqueness to the company web page. Text Text addresses the tone of voice, and determines whether a message is intellectual, understandable and necessary (Rowley 2004). Text typifies the brands individuality; it is the brands vocal cords. The words that are written carry the brands message and the font determines the approach of communication. The PZ Cussons website uses the Calibri body font, and a text size 11. This is considered to be quite small and depicts timidity. The words on the home page are too much and should have been more of pictures and less words. News This refers to allowing visitors to the site access to current news and information relating to products and happenings in the industry. The PZ Cussons web site however, is not being constantly updated. On the PZ Cussons front page, there is a column for latest news, but the news in question are actually stale. A lot needs to be done in that regard. Recommendation PZ Cussons has come a long way since its inception without doubt, with its acquisition of major companies and continued expansion but yet to tap into the vast prospect ability of the World Wide Web. A web advert can be for both infotainment and promotional activities (Diaz et al. 1996); however, PZ Cussons seem to only have tapped from using the web as an informative medium thus relegating the latter. PZ Cussons in a bid to further expand the global reach of its company can take advantage of the web and promote its leading household brand to continents like America and Australia, this must however be done with some of the following recommendations. PZ Cussons must realise that its website is its corporate identity to the world and a representation of its corporate image as such should take advantage of that medium to make it web site more interactive with site visitors. It can incorporate the use of live chats and blogs to gather customer feedback on its brands. It can also adopt the concept of an online register to enable it maintain a database of customers online. PZ Cussons must come to terms with the realities of digitization and begin to open up marketing and sale of its brands online. With the emergence of e-market places, grocery shopping can be done by the click of the mouse. There must also be consistent updates on product offers, special sales and product information and ensure maximum customer satisfaction. With the advent of social networking sites like face book and twitter, PZ Cussons must build an online community for its customers who can share brand experiences with friends and further expand their network. It is often difficult to distinguish between online and offline branding. However, online branding comes with a lot pros and cons as such it will be reminiscent to highlight the plausibility of online branding and its effect on businesses with an online presence. PZ Cussons operates as a promoter for leading other brands which are distributed through an organised distributive channel. The online presence merely transmits brand messages and houses information. PZ Cussons would need to take advantage of their online presence build a dynamic approach to marketing its brands online. Conclusion PZ Cussons has to come to terms with the cutting edge of technology. It must parallel its real world brand dominance with that of its online branding experience and as well deliver its promise to customers. PZ Cussons must use their online presence to create awareness for its brands and encourage customer rapport. There is a huge difference between businesses that do not use online channel in marketing their goods and service and those that use the online channel. PZ Cussons must take advantage of both online and offline channels to expand their reach. Given the publicity the internet generates, PZ Cussons can benefit from cost savings spent on television and print media adverts by channelling funds to a single and cheaper advertising channel.

Effect Of Pharmacist and Nurse on Improving Blood Pressure

Effect Of Pharmacist and Nurse on Improving Blood Pressure Afzal Hussain Problem and Purpose In this paper, I will be critically analyzing the article â€Å"A Randomized Trial of the Effect  Of Community Pharmacist and Nurse Care on Improving Blood Pressure Management  in Patients With Diabetes Mellitus- Study of Cardiovascular Risk Intervention by Pharmacists–Hypertension (SCRIP-HTN) by Donna L. Maclean ; Finlay A. McAlister; Jeffery A. Johnson, Kathryn M. King; Mark J. Makowsky ; Charlotte A. Jones and Ross T. Tsuyuki. This article outlines a quantitative experimental design involving two sample groups (experimental and Control). According to Sullivan-Bolyai, Bova, Singh (2013), experimental designs are particularly suitable for testing cause and effect relationships because they help eliminate potential alternative explanation (threats to validity) for the findings (p. 217). The authors articulate their recognition of the fact that interventions are key markers to identify and observe blood pressure (BP) control in diabetic patients. The authors also recognize the fact that there is a need for a new model of care to improve BP control, particularly with significant challenges in accessing primary care physicians attributing to labor shortages in the health scare system. In addition, the authors used manipulation by introducing the intervention, then by comparing the standard and usual care among the control group and experimental groups. This resulted in the manipulation variable being the difference of care among patients with blood pressure and diabetes. One intervention delivered to the group based on the manipulated variable of difference of care is evident through the interventions made by the pharmacist-nurse teams at various pharmacy sites, which included cardiovascular risk reduction counselling, education brochure on hypertension, lifestyle strategies, effect of diabetes on high BP, and referral to the patient’s primary care physician for further BP and cardiovascular assessment (McLean, McAlister , Johnson, King, Makowsky, Jones, and Tsuyuki, 2008, p. 2356). The control group received the standard and usual treatment compared to the experimental intervention group. Furthermore, blood pressure wallet card, educational pamphlet on diabetes and physician care were received by the control group. (McLean et al., 2008, p. 2355).The authors used randomization to categorize the research participants into two groups- experimental intervention and control which is set to receive the standard treatment of care. Mclean et al (2008) states, â€Å" Randomization was at the level of the patient ( stratified by pharmacy and using a variable block design), it was performed centrally to preserve allocation concealment using a computer generated sequence over a secure internet service at the Epidemiology Coordinating and Research (EPICORE) centre,(p. 2356). The authors propose a practical necessity for this research problem to be explored and be further researched. The purpose of the research was to explore whether pharmacist or nurses can professionally contribute to improving the BP control of patients with diabetes and implement preventative care measures due to ongoing lack of physicians, pharmacist and nurses, it is clear that the research is also significant. It is based on changing the attitude of health care professionals to meet current outcomes, outcomes which seem to be on par with those of the current health care system in Canada. Sample Size, Design and Collection Methods The sample for this study was appropriately assembled for a quantitative study. The study sample is easily identified when reading the article, included a description of the demographic characteristics and the size of the sample. Also included were any sampling bias, drop outs or loss of patients to follow up. In doing so, an adjustment of 85 to 110 per group were added. (McLean et al., 2008, p. 2357). Its purpose was to test the efficacy of community-based interventions through a pharmacist and nurse team approach on reduction of cardiovascular events in diabetes mellitus patients. This was achieved by measuring the BP which has been linked to comorbidities such as cardiovascular disease, and to BP measurement changes used as an indicator of health. This sampling was appropriate to the study as the sample were to represent diabetic patients. Mclean et al (2013) states, â€Å" All adult diabetic patients with BP higher than 130/80 mm Hg on 2 screening visits separated by 2 weeks wer e identified in participating pharmacies. Diabetes was identified by community pharmacists through the use of diabetes indicator medications in each pharmacy’s prescription database. (p. 2356). In this study, Mclean et al (2008) used a randomized controlled trial (RCT) in 14 community Pharmacies in Edmonton, Alberta as a method of data collection (McLean et al., 2008, p. 2355). Participants were identified and manipulated by pharmacists and nurses who were trained using a combination of an online learning program and a case-based learning session – both based on the Canadian Hypertension Education Program (CHEP) guidelines†. Also the use of a commercial BP monitor set at an average of 5 measurements of BP taken 1 minute was used to measure participants BP (McLean et al., 2008, p. 2356). Data analysis procedures were appropriate to the research study because â€Å"all analyses were conducted using a commercially available software program† (McLean et al., 2008, p. 2357). Threats to Internal and External Validity specifically the authors use of instrumentation and selection could possibly have introduced problems of internal validity in the research. This threat was discussed by ensuring that both groups (control and experimental) BP were measured with the same BP device, which has 6 readings, discard the first test and further takes an additional 5 measures . Mclean et al (2008) found that, â€Å"It is possible that the more frequent contact with the pharmacist –nurse team reduced the anxiety of patients and any â€Å"white coat effect† on their BP measurement†. (p.2359). Furthermore, the screening modules used by the researchers to collect the data were conducted by pharmacists and nurses well versed in their profession. Selection bias was another threat predisposing the sampling design to internal validity. The authors in their findings found that patients eligible for selection presented with lower BP, this can be caused by the researchers utilizing a convenience sample instead of a random sample. Also, selection bias may have been an essential part of the end results due to the fact that patients who are eager to monitor and control their BP are more likely to agree to participate in the trial, also that more than 80% of trial participants were aware that hypertension is a risk factor for cardiovascular disease (McLean et al., 2008, p. 2358). The external validity of the study was weakened by the sampling design. The authors failed to take into consideration non English speaking people, whose cultural differences and beliefs could influence the study, and who may lack health literacy to read and identify medical abbreviations and symbols. Maclean et al (2008) states, â€Å"pharmacists and nurses who participated may be different from those who did not participate, an investigator vol unteer bias that may limit generalizability of the program† (McLean et al., 2008, p. 2359). Limitations of the Design One major limitation of the design identified by the authors is regarding the interventions implemented in regards to the in person contact time between patients and the pharmacist-nurse team, which can be further be evaluated by future studies on whether less intensive interventions are The researchers identified a potential limitation regarding that the intervention involved substantial in-person contact time between patients and study personnel, and that future studies will need to determine whether less intensive interventions are productive in controlling BP in diabetic patients (McLean et al., 2008, p. 2359 Generalization of Findings The research findings can be generally be applied to larger populations, the authors acknowledge the fact that their research intervention was extremely efficacious, resulting in a 24.1 mm Hg greater reduction in systolic BP (McLean et al., 2008, p. 2358) They recommend a new model of care to improve BP control. In addition, by utilizing an experimental research design in which a cause and effect relationship can be analyzed and measured, the researchers were able to provide coherent evidence and correlation that community pharmacists and nurses through a collaborative effort with primary care physicians could have a huge impact on hypertension management in patients with diabetes mellitus and BP control within the community (McLean et al., 2008, p. 2360) References LoBiondo-Wood, G., Singh, M.D., (2013). Introduction to quantitative research. In C. Cameron, M. D. Singh (Eds.), Nursing research in Canada: Methods and critical appraisal for evidence-based practice (3rd ed.) (pp. 198-215). Toronto: Elsevier Canada McLean, D. L., McAlister, F. A., Johnson, J.A., King, K.M., Makowsky, M.J., Jones, C.A., Tsuyuki, R.T. (2008). A randomized trial of the effect of community pharmacist and nurse care on improving blood pressure management in patients with diabetes mellitus. Archives of Internal Medicine, 168(21), 2355-2361 Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/19029501 Sullivan-Bolyai, S., Bova, C., Singh, M.D. (2013). Experimental and quasiexperimental designs. In C. Cameron, M. D. Singh (Eds.), Nursing research in Canada: Methods and critical appraisal for evidence-based practice (3rd ed.) (pp. 216-233). Toronto: Elsevier Canada

Young Goodman Brown Essay -- essays research papers

The main theme of the Nathaniel Hawthorne’s, â€Å" Young Goodman Brown,† is the struggle between Goodman Brown’s faith, power to resist his own evil impulses and his own doubts within him. It is a story of Young Goodman Brown’s personal conflict over his inner desires and its greater meaning conflict between good and evil in the world. The characteristics of Young Goodman Brown are similar to the life of Nathaniel Hawthorne. Nathaniel Hawthorne had his own doubts about his own Puritan life and beliefs. There are numerous examples in this story whereby Hawthorne clearly demonstrates to the reader Goodman Brown’s personal internal conflict between good and evil. Hawthorne’s knowledge of the historical background of Puritanism combined with the personal experience of his early life and the history of his own family merge into the actions that Young Goodman Brown takes. â€Å"Good men† in Hawthorne’s day were those who came from a â€Å"proper† family. The influence of Puritan religion, culture and education had a major role in how someone perceived themselves and their community around them. Goodman Brown claims that he is from a family of good men that have â€Å"never been into the forest on such an errand† to meet the devil; Hawthorne utilizes this information in order to show the reader how Goodman Brown’s ancestries played a vital role on how Goodman Brown thought of himself (as of good character). This view is quickly challenged by the devil himself when he states that all of his ancestors were with him as they tortured women in Salem or burned Indian villages to the ground, and afterwards the d evil and his ancestors would go for a friendly walk. Goodman response to this allegation was; â€Å"We are a people of prayer, and good works to boot, and abide no such wickedness.† Goodman disbelieves that his ancestors could do such wickedness. Hawthorne calls into question the chaste foundation of Young Goodman Brown's heritage, as well as the societal viewpoint of what is respectable, simply by pointing to a few facts. Given the existence and the importance of religion in the era of the early nineteenth century, Goodman Brown may be expressing a desire to break loose from a rigid puritan lifestyle. The puritan life style required their followers to doubt themselves and their community so much that a reality in which one could achieve Grace did not exist. It taught that one could not... ...lls for his Faith, he gets no answer. Brown only sees the pink ribbon fall, and his awareness of the conflict between good and evil is complete. He gives himself over to a new perspective. The pink button represents the pure innocents that has disappeared. This tears Goodman apart and creates so much doubt within him that it alters his perception about all the good people that are around him. We can never be sure if good or evil won the fight waged within Young Goodman Brown, but Hawthorne makes it abundantly clear that Brown was scared for his life due to his experience. This journey that Young Goodman Brown encounters could of been a dream or even a true event that is manifested by his own internal desires. Unable to accept that society is a mixture of both good and evil, Goodman Brown chooses his own damnation. In the forest Brown saw a mixture of religious and wicked people, and it was strange to see that "the good shrank not from the wicked, nor were the sinners abashed by the saints." Brown ultimately decides to accept that everyone is evil, and he loses his chance at redemption when he makes the decision to completely isolate himself from society and even from his own wife.

Boundaries...What For? :: Argumentative Science Technology Papers

Boundaries...What For? There seems to be no boundaries when it comes to scientific advancement. Scientists are struggling to come up with new and exciting procedures that are supposed to make our lives better. In the process, I think that they are getting out of hand. The advancement of science and technology today has brought up some very interesting and controversial issues. Nowadays, it seems that many scientists are on a mission to create the perfect human being, but in the process are breaking a lot of ethical boundaries. Do scientists know when enough is simply enough?, that is the real question. Through the use of such scientific and technological advancements, its amazing at just what scientists can do with the information. Often times they aren't thinking in terms of the world but in terms of them selves. Which on of them can discover the next biggest thing in science and technology, which can find that cure. It's all a game that is not played fair. There is a lot of craziness going on in the sciences, and with that comes consequences. Take Dr. Frankenstein for instance. In the article Frankenstein by Mary Shelly, she created a character that defied all the scientific and technological boundaries that were around in those days. It was against the law to work with dead bodies, especially for the purposes that he was going to use them for; which was to select the best parts forthe creature he was going to bring to life. He set out to create a "super-human being" out of inatimate objects, and he was successful, but in the end did pay a price. He spent two grueling years that consisted of long days and sleepless nights, for the sole purpose of creating life out of nothing. "For this I deprived myself of rest and health, but now I had finished, the beauty of the dream vanished, and the breathless horror and disgust filled my heart" (Shelly 234). Dr. Frankenstein went way over the line, and tried to play the creator, and in the end got what he deserved, a monster. He abhorred Frankenstein so much, that he chose to alienate him from the world. Which was really unfair to the monster, considering he was created by the sweat of Dr. Frankenstein's brow. Sometimes all that scientific information can get you into trouble. If Dr. Frankenstein had not gone ahead and pursued the role of playing God, he wouldn't have created such an ugly mon ster in his eyes.

Luotang Power

Table of Contents INTRODUCTION1 QUANTITATIVE VARIANCE ANALYSIS2 i. Quantity Variance5 ii. Price Variance6 iii. Fuel Efficiency Variance7 iv. Fuel Cost Variance8 v. Other Cost Variances9 5 PORTER FORCES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 CONCLUSION12 INTRODUCTION Luotang Power was established by American companies who was selected bidders to operate a 600 MW coal-fired power plant project. This company was located in Hubei Province, China. Although this company wholly foreign-owned but they need to use Chinese- manufactured equipment. There are two main issues in this case study.The first issue is the positive performance of Luotang Power does not show in the financial results. Mr. Tan Min Yi was scheduled to make a presentation to the Board of Directors of his parent company, China Hua Tong Power about the results. Mr. Tan Min Yi is a general manager of the Luotang Power Company. He needs to review and investigate the financial results before presenting to the board the disappointing results. The second issue is about the quality of the coal provided by the supplier, Pingdingshan. Sometimes, the Pingdingshan will supply some of the coal with bad quality.They will send some of the coal contain high level of moisture. They need to take time to dry it and will cause additional costs to happen like storage cost. Mr. Tan wants to use a variance analysis method to better understand plant performance compared to the previous year. So, we will help Mr. Tan to solve this problem by calculating and prepare the recommendations to improve reporting and evaluation of the plant's performance. QUANTITATIVE VARIANCE ANALYSIS As what have been introduced before, the Luotang Power CEO has to present the financial report to the board of director.But first he has to understand about the quantitative variance ana lysis. Variance Analysis is the analysis of performance by means of variances. This tool can be used to promote management action at the earliest possible stages. After a budget (based on standard costs) has been set, its usefulness lies in the review procedures which compare actual results against the budget. Variance analysis is the process of examining in detail each variance between actual and budgeted or standard costs to determine the reasons why budgeted results were not met. When the effect of variance is concerned, there are two types of variances.When the actual results are better than expected results given variance is described as favorable variance. In common use favorable variance is denoted by the letter (F). But when actual results are worse than expected results given variance is described as adverse variance, or unfavorable variance. In common it is denoted by the letter (U). There are very few plans that turn out exactly as planned. Even when the overall objective s of the plan are achieved, some, if not all components of the performance will have varied from the sub-plans or standards that make up the overall picture.So does the performance on the Luotang Power in 2011 which most of the variance is in unfavorable results. The variance analysis provides a framework for all business managers including Mr. Tan as one of Luotang Power directors to break down the overall performance of an organization, so that each individual element of the business can be isolated and analyzed in turn. The CEO facing problem with quantity variance, price variance, fuel efficiency variance, fuel cost variance and other cost variances. All these variance help him to explain about the plant performance throughout the year 2011 to the board of directors.Later, we will explain some of the variance that we have listed and all the problems related to â€Å"Luotang Power: Variance Explained† case study. This is the calculation of all variances. Variance | Calcula tion | Result| Quantity Variance| (3427351-3937377) x 0. 4219 = 215179. 97| Unfavorable| Price Variance| | Unfavorable | Fuel Efficiency Variance| [(346-347) x 0. 4219] x 3427351= 1445999387| Unfavorable| Fuel Cost Variance| (315612 – 320183)=5021| Unfavorable| Fixed Operating ; Maintainance Variance| (33178-39068)=5890(304090 – 348549)=44459| UnfavorableUnfavorable | i. Quantity Variance 3,427,351-3,937,377) x 0. 4219 = RM 215,179. 97 (UNFAVOURABLE) Based on the calculation above, we can see that amount of selling to HPPC had been declined in the year 2011 regarding HPPC produce electricity by itself. As we can see, Luotang Company never expects that demanding from HPPC will decline because looking at data, they make a bulk purchase on year 2010 and suddenly on year 2011, have dropped in demand. Ratio of coal consumed to net electricity generation| 2010| 2011| 347,000 X 100 % = 8. 1 % 3,937,377| 346,000 X 100 % = 10. 09 % 3,427,351 | Based on calculation above, we can see that in the year 2010, Luotang very effectively usage their resources accordingly to generate electricity, but in the year 2011, Luotang lack of usage of resources to generate electricity. | Excessive usage of materials that is usually a reason of unfavorable direct material quantity variance may be due to lower quality of materials, untrained workers, poor supervision. Generally, production managers are responsible for this variance.However purchasing department may also be held responsible for purchasing materials of lower quality to economize on prices. Where Purchasing Department purchases low grade direct materials at low prices to show a favorable material price variance, the material quantity variance is usually unfavorable due to lower quality of direct materials. ii. Price Variance The definition of price variance is the difference between the actual and standard prices of one product unit multiplied by how much input was used.The formula is: Price Variance = (Actual P rice – Standard Price) X Actual Quantity The price variance can be used by a business to assess the change between expected and actual input prices, since a positive price variance reflects an unfavorable cost rise, while a negative result indicates a favorable cost decrease. To adapt price variance to the type of business Luotang power it’s based upon the average price that electricity was sold to HPPC. The formula is: (Price per MWh in Current Year-Price per MWh in Prior Year) * Net Generation in Current Year From our calculation in price variance for Loutang Power we get amount RMB 6,511,9669.Since the amount is positive, that’s mean it unfavorable. Unfavorable show that Loutang Power unefficiency in managing its price and cost. We can see that demand from clients in 2010 is higher than others years because in 2010 the price is lowest. In 2009 is the highest price than its effect the demands. General Manager increases a little bit price in 2011, so the demand is decreased dramatically. This may also be caused by HPPC had its own electricity generating and produce themselves the electricity. Price is influence of the increase of cost, especially direct material cost.Luotang power must change the term of contract with the supplier. Origin contract is Luotang Power paid a fixed price per tonne. If staying with fixed price, the company must pay it although the coal quality has not reached the expected quality. Luotang Power purchase it with a large number, it’s a high risk because the supplier inconsistent provides the quality coal. So Luotang must buy the coal with a condition that if the coal is not meet the qualifications, it must be returned back to the supplier. Luotang Power must set the fix benchmark for the coal, so the supplier must follow it.If not Luotang Power doesn’t have to pay it, just return it. It saves the cost. So Luotang can set the price lower. iii. Fuel Efficiency Variance The meaning of fuel efficiency v ariance in this case study is the difference between the current year of the quantity of coal used to generate each MWh of electricity sold and the prior year of the quantity of coal used to generate each MWh of electricity sold. This is calculation how to find the fuel efficiency variance: (Mass of coal used per net MWh sold this year- Mass of coal used per net MWh sold last year) x MWh sold this year's x price of coal last yearFrom our calculation, for 2011, the fuel efficiency variance is –RMB 1,445,999,387. This show that this variance is unfavorable because the result in negative. We found several reasons that cause this to happen. The first reason is from an electricity demand from the HPPC is decreasing in 2011. This due to the HPPC have its own electricity generating units. The HPPC can produce the same electricity as the Luotang electricity. The second reason is because of the price that Luotang Power offer to HPPC. If you see in 2010, the price that the Luotang offe r is cheaper than 2011.Because of the increasing of electric price in 2011, the amount of electricity sold is decreasing. The other reason maybe for the quality of coal provided by Pingdingshan. Pingdingshan was required to supply low sulfur bituminous coal. If the Pingdingshan provides low quality of coal to the Luotang, the coal that can be used to produce electricity will decrease then, the production of electricity will be reduced. There is some recommendation that we will give to Mr. Tan to overcome this problem. We recommend that Luotang revenue does not just depend on the HPPC only.Mr. Tan needs to find other clients. Even it will cost to Luotang but it is will give advantage to Luotang’s long- term performance. The second recommendation is Luotang needs to lower the price of electricity if the company wants the HPPC buy more electricity from them. The last one is, the Luotang need too strict with the Pingdingshan regarding to the direct material, coal. If the Pingding shan provides them with a low quality of the coal, the Luotang needs to tell them or not to pay the expenses. The Luotang cannot let this happen.Although they can adjust the price but actually it will make the Luotang suffered loss in controlling their direct materials because they need to bear other cost in order to adjust back the quality of coal like the storage expenses. iv. Fuel Cost Variance In cost accounting, deviation between the actual cost and the standard cost. If the actual cost exceeds the standard cost, an unfavorable variance exists. A variance can be calculated for different cost items such as manufacturing costs (i. e. , direct material, direct labor, and overhead), selling expenses, and administrative expenses.The reasons for a variance should be identified and corrective action taken. Favorable variance can be defined as a difference between an actual cost and a budgeted or standard cost, and the actual cost is the lesser amount. In the case of revenues, a favora ble variance occurs when the actual revenues are greater than the budgeted or standard revenues. And unfavorable variance can be defined as the amount by which actual costs exceed the standard costs or budgeted costs. Also, the amount by which actual revenues are less than the budgeted revenues.After all of us do the analysis, we have found that this company having major problems in fuel cost, the fuel that Luotang receive from the Pingdingshan for this year have a low quality to compare from the last year. This has affected the production of the company. So that it brought the company a major problem that are decreasing purchase from HPPC. Analysis variance has shown that the fuel cost variance it just unfavorable. We have used the original formula, that are, Cost Variance = (cost this year-cost last year) x actual quantity this year.But we have modified the formula to calculate with Fuel Cost Variance = (price of coal this year-price of coal last year) x Mass of used per net MWh s old this year x MWh sold this year. So that we have found that Luotang have unfavorable variance. The cost is increased from the standard cost because the coal that receive from the Pingdingshan have a problem with its quality so that its take time to plant to generate or burn the coal. So that, its increase the cost with a lower quantity of production. From the analysis, we recommend Luatong should do fuel diversification.Fuel diversification implies the selection of a mix of electric generation technologies in a fashion that strikes a good balance between reduced cost and reduced risk. A long-term perspective as well as a short-term perspective can be taken on the fuel diversification problem. In a short-term perspective, the decision maker is limited to selecting power sources from existing alternatives. The construction of new generation plants and the associated fixed costs are justifiably ignored. The short-term problem translates in most instances to a scheduling problem.On t he other hand the long-term perspective on fuel diversity seeks insights that can help decision-making involved in the selection of new power plants. The long-term problem can be thought of as a resource- planning problem. Our focus is on the long-term perspective. Long-term fuel diversity has recently gained the attention of state regulators and federal policy makers. It has been argued that fuel diversity has the potential to advance several socially desirable objectives such as lower long-term prices, low price risk, less dependent on foreign sources of energy, higher power reliability and a cleaner environment. . Other Cost Variances The variance that related in this area are Coal Cost, Fixed Operating and Maintenance Cost, and Depreciation Expense. This is because in this case, only these three costs that have the useful information that help us to make an analysis of variance. Allocated cash costs are a type of expense that is clearly associated with and so can be readily assi gned to a certain business process, project or department. Allocated costs can be divided into two which allocate cash costs and allocated non-cash costs. Allocated cash costs are most probably things related to cash items.In this case it can be implemented in fixed operating and maintenance while allocating non-cash costs example is depreciation expense. The formula to calculate these two types of allocated cost is: Allocated Cash @ Non-Cash Costs = (Cost of volume allocated based on the quantity used – Actual costs) Related to the Allocated Cash Costs, in this case, we can simply use the formula: Allocated Cash Costs = (Standard Cost for Fixed Operating and Maintenance 2011 – Actual Fixed Operating and Maintenance 2011) From our calculation, the standard cost is lower if compared with the actual coal cost in 2011.From the table, it shows that – 5890 or can be denoted by 5890 U. Which shows unfavorable result. The main factor that contributes to increase of act ual result is unmanageable plant management. This is including engineering, planning, accounting and cost of railway fee. While in Luotang Power, they only have depreciation expense that have a relation of Allocated Non-Cash Cost, we can simply use the formula: Allocated Non-Cash Costs = (Standard Cost for Depreciation Expense 2011 – Actual Depreciation Expense 2011) From our calculation, the standard cost is lower if compared with the actual coal cost in 2011.From the table, it shows that – 44459 or can be denoted by 44459 U. Which shows unfavorable result. The main cause that contributes to increase of actual result is the standard cost of depreciation that have been planned is unachievable. In the previous two years, they recorded RMB 350320 in 2009 and RMB 349342 in 2010. The issue arises is why Loutang Power finance department decreases the standard cost significantly and unachievable. Our suggestion towards this company to minimize their unfavorable results is ma nage their plant in a very successful way and perhaps can decrease the unachievable amount of the fixed cost.Firstly, Luotang Power can minimize their cost of handling the management of their plant in a very strategic way. They have to manage the railway line regarding its fees, manage coal by maximizing the utilities of storage area, manage its boilers with a full efficiency of boiling point and so much more related to the site layout for 2x300MW Luotang Power Project. Next, they must take into consideration on achievable amount of the standard cost. It is essential to all standard cost setter to discuss among all of the directors and subordinates first before setting up the most accurate standard cost that can be used as a benchmark for a company. Porter Forces 1) Efficiency Based on data, we can see that Luotang Company doesn't have efficiency in producing electricity because cost for fixed expenses in the year 2011 are increasing. They have made by their own estimated or standar d cost on year 2011 but when comes to producing the actual cost incurred more than standard cost. This is showing that they fail to manage their production either capability of the machine or weakness of management itself. 2) Bargain of buyer Regarding to theory 5 Porter Forces, their purchaser has power of deciding the price. When we looking at the information, Luotang depend more on HPPC as a buyer.So this made difficulties to Luotang to decide their own price although they have an efficiency in production. 3) Bargain of supplier As we know, supplier as the important agent to determine whether our company successful or not, because we rely on their capabilities to supply us with quality raw materials and reasonable price, also willing to provide us when we need. In this case, Luotang depend on Pingdingshan and recently reported that coal quality had deteriorated about 3 % from the expected quality. CONCLUSION Luotang Power Company is an international power developers to finance, d esign, construct and operate coal-fired power plant.However due to the nature of our business, we have a big problem about our supplier that have gotten changed on 2011. The supplier has supplied low quality coal to Luotang and that disturbs the progress of the production. That has caused decreases demand from a loyal customer. And its affect the financial situation of the company. Besides that, several recommendations should be taken to ensure a successful implementation of the system in our company. First of all, purchasing department may also be held responsible for purchasing materials that can define the quality of the material.Besides that, Luotang also change the term of contract with the supplier, need to find other clients not to depend to HPPC, Luotang also should do fuel diversification to make sure there are several suppliers, and Luotang can minimize their cost of handling the management of their plant in a very strategic way so that they can improve their management we ll. In addition, what we have found by concept 5 Forces in this company that their faces during their production. There are ; Luotang not have efficiency in producing electricity because cost for fixed expenses in the year 2011 are increasing.Besides that, bargain of buyer that show their purchaser have power in deciding the price. And lastly, bargain of supplier that show there is a supplier that supply the raw material to Luotang. As a conclusion in overall, we can see that Luotang Power Company has a good performance in their production but it have decreased in year 2011 because there are several problems that unexpected, that come from the supplier and others. So that, Luotang should do in several ways to overcome the problem and prove it to the Boar of Directors. Luotang Power Table of Contents INTRODUCTION1 QUANTITATIVE VARIANCE ANALYSIS2 i. Quantity Variance5 ii. Price Variance6 iii. Fuel Efficiency Variance7 iv. Fuel Cost Variance8 v. Other Cost Variances9 5 PORTER FORCES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 CONCLUSION12 INTRODUCTION Luotang Power was established by American companies who was selected bidders to operate a 600 MW coal-fired power plant project. This company was located in Hubei Province, China. Although this company wholly foreign-owned but they need to use Chinese- manufactured equipment. There are two main issues in this case study.The first issue is the positive performance of Luotang Power does not show in the financial results. Mr. Tan Min Yi was scheduled to make a presentation to the Board of Directors of his parent company, China Hua Tong Power about the results. Mr. Tan Min Yi is a general manager of the Luotang Power Company. He needs to review and investigate the financial results before presenting to the board the disappointing results. The second issue is about the quality of the coal provided by the supplier, Pingdingshan. Sometimes, the Pingdingshan will supply some of the coal with bad quality.They will send some of the coal contain high level of moisture. They need to take time to dry it and will cause additional costs to happen like storage cost. Mr. Tan wants to use a variance analysis method to better understand plant performance compared to the previous year. So, we will help Mr. Tan to solve this problem by calculating and prepare the recommendations to improve reporting and evaluation of the plant's performance. QUANTITATIVE VARIANCE ANALYSIS As what have been introduced before, the Luotang Power CEO has to present the financial report to the board of director.But first he has to understand about the quantitative variance ana lysis. Variance Analysis is the analysis of performance by means of variances. This tool can be used to promote management action at the earliest possible stages. After a budget (based on standard costs) has been set, its usefulness lies in the review procedures which compare actual results against the budget. Variance analysis is the process of examining in detail each variance between actual and budgeted or standard costs to determine the reasons why budgeted results were not met. When the effect of variance is concerned, there are two types of variances.When the actual results are better than expected results given variance is described as favorable variance. In common use favorable variance is denoted by the letter (F). But when actual results are worse than expected results given variance is described as adverse variance, or unfavorable variance. In common it is denoted by the letter (U). There are very few plans that turn out exactly as planned. Even when the overall objective s of the plan are achieved, some, if not all components of the performance will have varied from the sub-plans or standards that make up the overall picture.So does the performance on the Luotang Power in 2011 which most of the variance is in unfavorable results. The variance analysis provides a framework for all business managers including Mr. Tan as one of Luotang Power directors to break down the overall performance of an organization, so that each individual element of the business can be isolated and analyzed in turn. The CEO facing problem with quantity variance, price variance, fuel efficiency variance, fuel cost variance and other cost variances. All these variance help him to explain about the plant performance throughout the year 2011 to the board of directors.Later, we will explain some of the variance that we have listed and all the problems related to â€Å"Luotang Power: Variance Explained† case study. This is the calculation of all variances. Variance | Calcula tion | Result| Quantity Variance| (3427351-3937377) x 0. 4219 = 215179. 97| Unfavorable| Price Variance| | Unfavorable | Fuel Efficiency Variance| [(346-347) x 0. 4219] x 3427351= 1445999387| Unfavorable| Fuel Cost Variance| (315612 – 320183)=5021| Unfavorable| Fixed Operating ; Maintainance Variance| (33178-39068)=5890(304090 – 348549)=44459| UnfavorableUnfavorable | i. Quantity Variance 3,427,351-3,937,377) x 0. 4219 = RM 215,179. 97 (UNFAVOURABLE) Based on the calculation above, we can see that amount of selling to HPPC had been declined in the year 2011 regarding HPPC produce electricity by itself. As we can see, Luotang Company never expects that demanding from HPPC will decline because looking at data, they make a bulk purchase on year 2010 and suddenly on year 2011, have dropped in demand. Ratio of coal consumed to net electricity generation| 2010| 2011| 347,000 X 100 % = 8. 1 % 3,937,377| 346,000 X 100 % = 10. 09 % 3,427,351 | Based on calculation above, we can see that in the year 2010, Luotang very effectively usage their resources accordingly to generate electricity, but in the year 2011, Luotang lack of usage of resources to generate electricity. | Excessive usage of materials that is usually a reason of unfavorable direct material quantity variance may be due to lower quality of materials, untrained workers, poor supervision. Generally, production managers are responsible for this variance.However purchasing department may also be held responsible for purchasing materials of lower quality to economize on prices. Where Purchasing Department purchases low grade direct materials at low prices to show a favorable material price variance, the material quantity variance is usually unfavorable due to lower quality of direct materials. ii. Price Variance The definition of price variance is the difference between the actual and standard prices of one product unit multiplied by how much input was used.The formula is: Price Variance = (Actual P rice – Standard Price) X Actual Quantity The price variance can be used by a business to assess the change between expected and actual input prices, since a positive price variance reflects an unfavorable cost rise, while a negative result indicates a favorable cost decrease. To adapt price variance to the type of business Luotang power it’s based upon the average price that electricity was sold to HPPC. The formula is: (Price per MWh in Current Year-Price per MWh in Prior Year) * Net Generation in Current Year From our calculation in price variance for Loutang Power we get amount RMB 6,511,9669.Since the amount is positive, that’s mean it unfavorable. Unfavorable show that Loutang Power unefficiency in managing its price and cost. We can see that demand from clients in 2010 is higher than others years because in 2010 the price is lowest. In 2009 is the highest price than its effect the demands. General Manager increases a little bit price in 2011, so the demand is decreased dramatically. This may also be caused by HPPC had its own electricity generating and produce themselves the electricity. Price is influence of the increase of cost, especially direct material cost.Luotang power must change the term of contract with the supplier. Origin contract is Luotang Power paid a fixed price per tonne. If staying with fixed price, the company must pay it although the coal quality has not reached the expected quality. Luotang Power purchase it with a large number, it’s a high risk because the supplier inconsistent provides the quality coal. So Luotang must buy the coal with a condition that if the coal is not meet the qualifications, it must be returned back to the supplier. Luotang Power must set the fix benchmark for the coal, so the supplier must follow it.If not Luotang Power doesn’t have to pay it, just return it. It saves the cost. So Luotang can set the price lower. iii. Fuel Efficiency Variance The meaning of fuel efficiency v ariance in this case study is the difference between the current year of the quantity of coal used to generate each MWh of electricity sold and the prior year of the quantity of coal used to generate each MWh of electricity sold. This is calculation how to find the fuel efficiency variance: (Mass of coal used per net MWh sold this year- Mass of coal used per net MWh sold last year) x MWh sold this year's x price of coal last yearFrom our calculation, for 2011, the fuel efficiency variance is –RMB 1,445,999,387. This show that this variance is unfavorable because the result in negative. We found several reasons that cause this to happen. The first reason is from an electricity demand from the HPPC is decreasing in 2011. This due to the HPPC have its own electricity generating units. The HPPC can produce the same electricity as the Luotang electricity. The second reason is because of the price that Luotang Power offer to HPPC. If you see in 2010, the price that the Luotang offe r is cheaper than 2011.Because of the increasing of electric price in 2011, the amount of electricity sold is decreasing. The other reason maybe for the quality of coal provided by Pingdingshan. Pingdingshan was required to supply low sulfur bituminous coal. If the Pingdingshan provides low quality of coal to the Luotang, the coal that can be used to produce electricity will decrease then, the production of electricity will be reduced. There is some recommendation that we will give to Mr. Tan to overcome this problem. We recommend that Luotang revenue does not just depend on the HPPC only.Mr. Tan needs to find other clients. Even it will cost to Luotang but it is will give advantage to Luotang’s long- term performance. The second recommendation is Luotang needs to lower the price of electricity if the company wants the HPPC buy more electricity from them. The last one is, the Luotang need too strict with the Pingdingshan regarding to the direct material, coal. If the Pingding shan provides them with a low quality of the coal, the Luotang needs to tell them or not to pay the expenses. The Luotang cannot let this happen.Although they can adjust the price but actually it will make the Luotang suffered loss in controlling their direct materials because they need to bear other cost in order to adjust back the quality of coal like the storage expenses. iv. Fuel Cost Variance In cost accounting, deviation between the actual cost and the standard cost. If the actual cost exceeds the standard cost, an unfavorable variance exists. A variance can be calculated for different cost items such as manufacturing costs (i. e. , direct material, direct labor, and overhead), selling expenses, and administrative expenses.The reasons for a variance should be identified and corrective action taken. Favorable variance can be defined as a difference between an actual cost and a budgeted or standard cost, and the actual cost is the lesser amount. In the case of revenues, a favora ble variance occurs when the actual revenues are greater than the budgeted or standard revenues. And unfavorable variance can be defined as the amount by which actual costs exceed the standard costs or budgeted costs. Also, the amount by which actual revenues are less than the budgeted revenues.After all of us do the analysis, we have found that this company having major problems in fuel cost, the fuel that Luotang receive from the Pingdingshan for this year have a low quality to compare from the last year. This has affected the production of the company. So that it brought the company a major problem that are decreasing purchase from HPPC. Analysis variance has shown that the fuel cost variance it just unfavorable. We have used the original formula, that are, Cost Variance = (cost this year-cost last year) x actual quantity this year.But we have modified the formula to calculate with Fuel Cost Variance = (price of coal this year-price of coal last year) x Mass of used per net MWh s old this year x MWh sold this year. So that we have found that Luotang have unfavorable variance. The cost is increased from the standard cost because the coal that receive from the Pingdingshan have a problem with its quality so that its take time to plant to generate or burn the coal. So that, its increase the cost with a lower quantity of production. From the analysis, we recommend Luatong should do fuel diversification.Fuel diversification implies the selection of a mix of electric generation technologies in a fashion that strikes a good balance between reduced cost and reduced risk. A long-term perspective as well as a short-term perspective can be taken on the fuel diversification problem. In a short-term perspective, the decision maker is limited to selecting power sources from existing alternatives. The construction of new generation plants and the associated fixed costs are justifiably ignored. The short-term problem translates in most instances to a scheduling problem.On t he other hand the long-term perspective on fuel diversity seeks insights that can help decision-making involved in the selection of new power plants. The long-term problem can be thought of as a resource- planning problem. Our focus is on the long-term perspective. Long-term fuel diversity has recently gained the attention of state regulators and federal policy makers. It has been argued that fuel diversity has the potential to advance several socially desirable objectives such as lower long-term prices, low price risk, less dependent on foreign sources of energy, higher power reliability and a cleaner environment. . Other Cost Variances The variance that related in this area are Coal Cost, Fixed Operating and Maintenance Cost, and Depreciation Expense. This is because in this case, only these three costs that have the useful information that help us to make an analysis of variance. Allocated cash costs are a type of expense that is clearly associated with and so can be readily assi gned to a certain business process, project or department. Allocated costs can be divided into two which allocate cash costs and allocated non-cash costs. Allocated cash costs are most probably things related to cash items.In this case it can be implemented in fixed operating and maintenance while allocating non-cash costs example is depreciation expense. The formula to calculate these two types of allocated cost is: Allocated Cash @ Non-Cash Costs = (Cost of volume allocated based on the quantity used – Actual costs) Related to the Allocated Cash Costs, in this case, we can simply use the formula: Allocated Cash Costs = (Standard Cost for Fixed Operating and Maintenance 2011 – Actual Fixed Operating and Maintenance 2011) From our calculation, the standard cost is lower if compared with the actual coal cost in 2011.From the table, it shows that – 5890 or can be denoted by 5890 U. Which shows unfavorable result. The main factor that contributes to increase of act ual result is unmanageable plant management. This is including engineering, planning, accounting and cost of railway fee. While in Luotang Power, they only have depreciation expense that have a relation of Allocated Non-Cash Cost, we can simply use the formula: Allocated Non-Cash Costs = (Standard Cost for Depreciation Expense 2011 – Actual Depreciation Expense 2011) From our calculation, the standard cost is lower if compared with the actual coal cost in 2011.From the table, it shows that – 44459 or can be denoted by 44459 U. Which shows unfavorable result. The main cause that contributes to increase of actual result is the standard cost of depreciation that have been planned is unachievable. In the previous two years, they recorded RMB 350320 in 2009 and RMB 349342 in 2010. The issue arises is why Loutang Power finance department decreases the standard cost significantly and unachievable. Our suggestion towards this company to minimize their unfavorable results is ma nage their plant in a very successful way and perhaps can decrease the unachievable amount of the fixed cost.Firstly, Luotang Power can minimize their cost of handling the management of their plant in a very strategic way. They have to manage the railway line regarding its fees, manage coal by maximizing the utilities of storage area, manage its boilers with a full efficiency of boiling point and so much more related to the site layout for 2x300MW Luotang Power Project. Next, they must take into consideration on achievable amount of the standard cost. It is essential to all standard cost setter to discuss among all of the directors and subordinates first before setting up the most accurate standard cost that can be used as a benchmark for a company. Porter Forces 1) Efficiency Based on data, we can see that Luotang Company doesn't have efficiency in producing electricity because cost for fixed expenses in the year 2011 are increasing. They have made by their own estimated or standar d cost on year 2011 but when comes to producing the actual cost incurred more than standard cost. This is showing that they fail to manage their production either capability of the machine or weakness of management itself. 2) Bargain of buyer Regarding to theory 5 Porter Forces, their purchaser has power of deciding the price. When we looking at the information, Luotang depend more on HPPC as a buyer.So this made difficulties to Luotang to decide their own price although they have an efficiency in production. 3) Bargain of supplier As we know, supplier as the important agent to determine whether our company successful or not, because we rely on their capabilities to supply us with quality raw materials and reasonable price, also willing to provide us when we need. In this case, Luotang depend on Pingdingshan and recently reported that coal quality had deteriorated about 3 % from the expected quality. CONCLUSION Luotang Power Company is an international power developers to finance, d esign, construct and operate coal-fired power plant.However due to the nature of our business, we have a big problem about our supplier that have gotten changed on 2011. The supplier has supplied low quality coal to Luotang and that disturbs the progress of the production. That has caused decreases demand from a loyal customer. And its affect the financial situation of the company. Besides that, several recommendations should be taken to ensure a successful implementation of the system in our company. First of all, purchasing department may also be held responsible for purchasing materials that can define the quality of the material.Besides that, Luotang also change the term of contract with the supplier, need to find other clients not to depend to HPPC, Luotang also should do fuel diversification to make sure there are several suppliers, and Luotang can minimize their cost of handling the management of their plant in a very strategic way so that they can improve their management we ll. In addition, what we have found by concept 5 Forces in this company that their faces during their production. There are ; Luotang not have efficiency in producing electricity because cost for fixed expenses in the year 2011 are increasing.Besides that, bargain of buyer that show their purchaser have power in deciding the price. And lastly, bargain of supplier that show there is a supplier that supply the raw material to Luotang. As a conclusion in overall, we can see that Luotang Power Company has a good performance in their production but it have decreased in year 2011 because there are several problems that unexpected, that come from the supplier and others. So that, Luotang should do in several ways to overcome the problem and prove it to the Boar of Directors.