Financial Analysis of Lockheed Martin

A Financial Analysis of Lockheed Martin Corporation Colby Scott LeTourneau University A Financial Analysis of Lockheed Martin corporation The world of finance in today’s market is one of numerous ups and downs. With the global economy in constant flux, it is more important than every for companies to examine their financial status and compare their position to that of the relative market as well as their fellow competitors.In order to better understand the ways in which today’s managers examine their position on the market and evaluate their current value as a company we will examine the financial data of Lockheed Martin Corporation and perform a detailed financial analysis on the company. In this analysis we will examine financial rations of Lockheed Martin and in turn compare these rations to that of fellow market competitors.Upon completion of our financial analysis we will be able to understand the financial position of Lockheed Martin as well as the position of Loc kheed Martin in their respective market, and in turn we will be able to fully comprehend the methods and data used by companies in order to evaluate their company. Before going into an in depth analysis of our company, let us first examine the history behind Lockheed Martin. The Lockheed Martin Corporation traces its roots all the way back to the earliest days of flight. In 1909 aviation pioneer Glenn L.Martin organized a company around a small airplane construction business and transformed it into a major airframe supplier to U. S. military and commercial customers. In 1961 the Glenn L. Martin Company became the Martin Marietta Company after the completion of a merger with American-Marietta Corp. , a leading supplier of building and road construction materials. In 1982, Martin Marietta was subject to a hostile takeover bid by the Bendix Corporation which bought the majority of Martin Marietta shares and in effect owned the company.However, Martin Marietta's management used the shor t time separating ownership and control to sell non-core businesses and launch its own hostile takeover of Bendix (known as the Pac-Man defense). The end of this extraordinarily bitter battle saw Martin Marietta survive and forced Bendix to be sold off. In 1913, Allan and Malcolm Loughead (name later changed to Lockheed) flew the first Lockheed plane over San Francisco Bay. The brothers later established their own corporation known as the Alco Hydro-Aeroplane Company which was later renamed the Loughead Aircraft Manufacturing Company.In 1926, following the failure of Loughead, Allan Loughead formed the Lockheed Aircraft Company in Hollywood, California. In 1929, Lockheed sold out to Detroit Aircraft Corporation. The Great Depression ruined the aircraft market, and Detroit Aircraft went bankrupt. A group of investors headed by brothers Robert and Courtland Gross, bought the company out of receivership in 1932. The syndicate bought the company for a mere $40,000. Ironically, Allan Lou ghead himself had planned to bid for his own company, but had only raised $50,000 which he felt was too small a sum for a serious bid.The first successful aircraft built in any number by the Lockheed Corporation was named the Vega and was best known for its use in several first- and record setting flights by, among others, Amelia Earhart, Wiley Post and George Hubert Wilkins. In the 1930s, Lockheed spent $139,400 to develop the Model 10 Electra, a small twin-engine transport which sold 40 units in the first year of production. Amelia Earhart and her navigator, Fred Noonan, flew this plane on their failed attempt to circumnavigate the world in 1937.The Lockheed Model 12 Electra Junior and the Lockheed Model 14 Super Electra expanded their market. The Model 14 also formed the basis for the Hudson bomber, which was supplied to both the British Royal Air Force and the United States military before and during World War II. In 1995 the these two companies, Lockheed and Martin Marietta, jo ined together in a merger which created the modern Lockheed Martin corporation, and further expanded with the acquisition of Loral, a defense electronics and systems integration business, in 1996.Today, the Lockheed Martin Corporation is headquartered in Bethesda, Maryland and employs 126,000 people worldwide. The company is principally engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems. Lockheed also serves both domestic and international customers with products and services that have defense, civil, and commercial applications, with their principal customers being agencies of the U. S. Government. In 2011, 84% of their $45. billion in net sales were made to the U. S. Government, either as a prime contractor or as a subcontractor. Lockheed’s U. S. Government sales were made to both Department of Defense (DoD) and non-DoD agencies. Sales to foreign governments (including foreign military sales funded, in whol e or in part, by the U. S. Government) amounted to 15% of net sales in 2011. The remainder of net sales was attributable to commercial and other customers. In 2011, net sales at Aeronautics of $13. 2 billion represented 29% of their total net sales.Aeronautics has three principal lines of business and the percentage that each contributed to its 2011 net sales was 68 percent combat aircraft, 20 percent air mobility, and 12 percent in other aeronautics programs. At December 31, 2011, we operated in 545 locations (including offices, manufacturing plants, warehouses, service centers, laboratories, and other facilities) throughout the United States and internationally. Of these, we owned 43 locations aggregating approximately 30 million square feet, and leased space at 502 locations aggregating approximately 26 million square feet.We also manage or occupy various government-owned facilities under leases and various other arrangements. The U. S. Government also furnishes equipment that we use in some of our businesses. We operate in four principal business segments: Aeronautics, Electronic Systems, IS, and Space Systems. Lockheed organizes their business segments based on the nature of the products and services offered. The following table presents net sales and operating profit of their four business segments.Net sales exclude intersegment revenue, as these activities are eliminated in consolidation. Intercompany transactions are generally negotiated and accounted for under terms and conditions similar to other government and commercial contracts. Operating profit of the business segments includes the equity earnings or losses from investees in which certain of their business segments hold equity interests, because the activities of the investees are closely aligned with the operations of those segments. In Millions |2011 |2010 |2009 | |Net Sales | | | | |Aeronautics |13,235 |12,201 |11,473 | |Electronic Systems |14,363 |13,532 |12,803 | |Information systems & Gl obal Solutions |9,959 |9,608 |9,069 | |Space Systems |8,246 |8,654 |8,027 | |Total 45,803 |43,995 |41,372 | | | | | | |Operation Profit | | | | |Aeronautics |1,502 |1,577 |1,433 | |Electronic Systems |1,712 |1,660 |1,583 | |Information systems & Global Solutions |890 |895 |919 | |Space Systems |972 |972 |953 | |Total Business Segments |5,076 |5,104 |4,888 | |VESP and other charges |220 |- | | |Other unallocated Corporate income net |759 |689 |161 | |Total |4,097 |4,415 |5,049 |Now that we have established the background of the Lockheed Martin Corporation, let us now analyze the ratios which provide us insight into the financial status of the corporation. The first ratio which we will look at is the current ration of Lockheed Martin. Using the current ration, we will be able to determine if Lockheed will be able to satisfy the amount of current liabilities based upon their current assets. When looking at the Lockheed’s balance sheet for 2011, we see that they have 11. 157 mil lion dollars in current liabilities and 12. 851 million dollars in current liabilities. In order to compute the current ratio of Lockheed we then take the current assets of 12. 51 million and divide this number by the current liabilities of 11. 157 million thus giving Lockheed a current ratio of 1. 15% for 2011. When looking at this ratio over a period of 2 years we began to see that the ratio calculated for 2011 has decreased . 01 percent from 2010. In examining this ratio, we are able to conclude that Lockheed has a fairly constant liquidity rate which could tell us that the company is relatively stable at this point in time. The second ratio which will help us in evaluating the financial status of Lockheed Martin Corporation is the inventory turnover ratio. This ration will allow us to examine how efficiently Lockheed manages its assets and uses those assets to create income.In order to calculate this ratio we must find the companies net sales and divide this figure by the invent ories that the company has on hand. After examining Lockheed’s financial statements, we find that they reported 45. 803 million dollars in net sales and 2. 378 million dollars in inventories for 2011. After plugging these figures into our equation, we find that Lockheed had an inventory turnover ratio of 19. 26. This tells us roughly that Lockheed’s inventory is sold out and restocked roughly 19. 26 times per year. When examined over a two year period, we find that the ratio of sales to inventories when compared to the 20. 15 ratio calculated in 2010, had only fallen by . 89.When compared to the rival Boeing Company, we find that Lockheed’s inventory turnover ration is considerably higher than the 1. 386 that Boeing reported over the same period. This could lead to the conclusion that Lockheed Martin is in considerably better position than the majority of the other companies with in the same market. The next ratio that we will examine is referred to as the debt ration. This ratio allows us to examine the percentage of funds provided by current liabilities and long term debt. In order to calculate this ratio, we will need to take the total liabilities and divide this figure by the total assets. When examining the financial documents provided by Lockheed, we find that Lockheed reported a total liability of 31. 59 million and a total asset of 35. 067. As we plug this data into our equation we find that Lockheed Martin has a debt ratio of 89. 43 percent for 2011. When interpreting this outcome we must remember to examine the data from two separate perspectives. From the perspective of a creditor, a high debt ratio allows for less cushion against losses in the event that liquidating occurs. This could discourage creditors from lending to the company due to the fact that it poses a greater risk to the creditor. On the other hand, stockholders generally like to see a higher debt ration due to the fact that it magnifies the amount of return that t hey receive.Therefore, it would be wise for a company to maintain a debt ration which is fairly close to 50 percent due to the fact that it allows creditors to feel comfortable while satisfying the desires of the stockholders. Another ratio which provides valuable insight into a company’s financial status is the Gross Profit Margin. When calculating this ratio we must first find the amount of sales, then subtract this number by the cost of goods sold and divide this number by the amount of sales during that period. As we examine the financial data using our Gross Profit Margin formula, we find that Lockheed had a gross profit margin of 10. 2 percent. This number tells us that Lockheed had a gross profit of 10. 2 percent per dollar of sales before any other expenses are deducted.When compared to rival aeronautical company Boeing, we find that Boeing had a gross profit margin that was 11. 9 percent higher than Lockheed. This suggests that Boeing is turning a higher profit margi n than Lockheed and thus does not need to sell as much product in order to generate the same amount of income as Lockheed. By having a lower profit margin than their competitor, Lockheed must have a higher amount of sells in order to keep their place within the market. The final ratio which we will examine is the Price per Earnings ratio or the P/E Ratio. By looking at this ration we are able to identify how much investors are willing to pay per dollar of reported profit.Looking at Lockheed’s current price per share and earnings per share data we find that they are able to maintain a ratio of 28. 67. When viewing this data, we are able to conclude that Lockheed has a fairly strong growth prospect when other things are held constant. When we compare this number to the smaller rival Northrop Grumman and find that Lockheed has a P/E that is 19. 69 higher. When looking into the reasoning behind this difference, we can conclude that Northrop is regarded as being a much riskier com pany than Lockheed and thus could receive less support for creditors. This places Lockheed Martin at an advantageous position due to the fact that they are viewed as a more stable company.This allows them to control more of their respective market and in turn secures their market share for future years. Now that we have viewed the financial ratios of our company and have interpreted the data based upon Lockheed’s market and past financial data, let us now look at the Beta coefficient. When stockholders examine which companies they wish to invest in, they generally seek to invest in companies with the smallest amount of risk possible. In doing so, Stockholders greatly minimize the amount of risk that they themselves accrue and in turn provides confidence within the market. However, we must have a way in order to evaluate the relative risk of a particular companies stock and for that we use the Beta coefficient.In order to calculate the Beta coefficient we will need two sets of data, the closing price for the stock we are examining and the closing prices for the index we’re using. As we look at the Beta value of . 98 for Lockheed Martin and compare it industry rival Boeing’s 1. 31 and Northrop Grumman’s 1. 08 we find that Lockheed has a lower Beat value than both of its major competitors. This suggests that Lockheed is a less risky company to invest in and thus could create greater capitol available through the sale of stock for the company. In addition to drawing potential investors to the company, having a lower Beta value could cause creditors to be more willing to lend money to the company.This would allow a greater possibility for Lockheed’s future expansion in the industry and could serve to propel them to the top of the Aeronautic market. If this were to occur, I forecast that the dividend structure within the company would increase due to the increased amount of wealth that the company is generating yearly. By having mo re funds available for allocation to stockholders, the company would be more willing to pass this added revenue to the stockholders thus promoting more investors to purchase stock. Upon examining the numerous financial data available on Lockheed Martin we are able to determine that the financial status of the company is sound. Lockheed Martin maintains a current ratio of 1. 5 percent which tells us that the company is able to cover the cost of their current liabilities 1. 15 times using their current assets. This tells us that the company does not have any problematic debt at the current time and therefore generates a profit at the end of every operating period. The second indicator of Lockheed’s current and future success is their ability to turn over inventory. In our calculations we discovered that Lockheed had an inventory turn over ratio of 19. 26 percent which told us that they were able roughly able to sell all of their products and restock at least 19. 26 times per ye ar. When viewing this from a financial standpoint this figure is encouraging because it represents a steady profit within the company.The next ratio analysis performed, the debt ratio, informed us that the company had a debt ratio of 89. 43 percent. This high number could serve costly to the company if they ever need seek loans from creditors, but it does satisfy the shareholders by providing a higher amount of leverage. Another ratio that we analyzed for Lockheed Martin was the gross profit margin. After computing this ratio, we found that Lockheed had a gross profit margin of 10. 2 in 2011 which means than Lockheed earned retained 10. 2 percent of every dollar earned. The final ration analysis that we performed on Lockheed’s financial statements was a profit per earnings ratio.After performing this ratio, we found that Lockheed had a better profit per earnings than its rivals thus making it a more desirable company to invest in. This could attract future investors and in tu rn create more profit for the company. From this analysis, I have concluded that Lockheed Martin could not handle much more debt in the near future due to the fact that their debt ration is already considerably high. If the company were to take on much more debt, creditors would become unwilling to provide financial support for the company and the company could risk taking on more debt than their assets could cover. This would cause the overall value of the company to fall and cause the Beat coefficient to ri se to a much higher level.In order to further improve the company from the position that it is in, I believe that the company should take steps to lower the debt ratio. This would cause the creditors to be more willing to invest in the company as well as keep the stockholders satisfied with the amount of leverage the company has. Also, by lowering the debt ratio, the companies eat coefficient would fall even further making the desire to invest in the company even higher. If Loc kheed were to take this step, I believe that the companies stock would continue to rise and the company could in turn increase the amount of dividends that it provides. Bibliography 1. Free SEC Filings Email Alerts – SECFilings. com. (n. d. ). Free SEC Filings Email Alerts – SECFilings. com.Retrieved April 26, 2011, from http://secfilings. com/searchresultswide. aspx? TabIndex=2=7752072=convpdf=11373=%2fdefault. aspx%3fticker%3dLMT%26amp%3bformgroupid%3d1%26amp%3bauth%3d1 2. Free SEC Filings Email Alerts – SECFilings. com. (n. d. ). Free SEC Filings Email Alerts – SECFilings. com. Retrieved April 26, 2011, from http://secfilings. com/searchresultswide. aspx? TabIndex=2=7704986=convpdf=11757=%2fdefault. aspx%3fticker%3dBA%26amp%3bformgroupid%3d1%26amp%3bauth%3d1 3. Ehrhardt, M. C. , & Brigham, E. F. (2011). Corporate finance: a focus approach (4th ed. ). Mason, OH: South-Western Cengage Learning.

Burnout Paper

Having a good job and supporting your family is one if the best things in life. Nowadays jobs are so demanding and they require a lot of time apart from your loves ones. Many of us love the fact that we can provide for our families, but there are times when the job life can become overwhelming and stressful causing the individual to burnout. The following paper will address issues and preventions methods of â€Å"burnout† and what precautions one should take. Also I will discuss the identifiable phrases that can be adapted in order to deal with burnout. Burnout has the same characteristics as depression and it can be easily misinterpreted. Burnout is actually exhaustion of work related stresses caused over time that can affect the personal goals related to their job. Although we may not necessary notice it right away it can creep up on you and you may not know. Other factors can contribute to burnout can come from the outside such as personal life, other responsibilities at home with families and even stressful events. Many of us experience bad days at work, feeling unappreciated, disconnected ourselves from co-workers and family members, and even lost focus on our goals. These are factors to burnout that should be addressed immediately. Individual factors that can cause burnout are fairly significant and naked to the eye. Burnout is not always displayed right away and it could take some time to be noticed by you or someone else. A person’s life style plays a role because the person may have little balance and lots of work. A person who works all week pulling in more work hours may not have down time for themselves. Individuals should continue with their regular hobbies and devote some time to exercising and their personal life. Burnout can affect everyone on the job, even cultural workers. It can be very hard for someone of culture because we may expect too much from them, or even it may difficult for them to keep up with work. Cultural workers may be absent more often at work to avoid stress issues from other co-workers that can factor burnout. Sometimes burnout has an organizational cause. In today’s organizations, everyone is doing more work in less time, and then the pressure starts to build up. Low value work, flawed work processes, or excessive performance expectations also contribute to negative stress, which, if unresolved, can lead to burnout. Some of the common organizational causes of burnout includes the fast pace of work in general (if your work has a global component), increased demand for information and communication, driven by technologies such as e-mail, instant messaging, and PDAs an downsizing, restructuring, or change in priorities that calls for extra demands on the employees. A work environment that changes frequently also can causes the supervisors to burn out, factors such as frequent changes in policies and procedures , changes in the organizations vision, and changes in staff are all contributions to burnout. Communication can help the individuals to cope with burnout as it is linked to social support. Social support is better because it gives you less burnout and it tends to make individual feels that they are loved and cared for. There are six categories of social support (technical support, emotional support, emotional challenge, listening, technical challenge and sharing social reality) in which they all help to identify some sort of communication and mutual obligation (Cruikshank, 2011). Burnout can come from many different factors and in order to prevent it, you must look at all the concerns associated around it. A way that individuals can cope with burnout is to ask for help and support from your supervisor. Communicating your issues and problems will make your job less stressful, which can prevent burnout. Another way is re-vamp the work flow or processes the department uses. For example, if you have more work and less people, you may have to change how the work is distributed. Maybe temporary help can be an option to handle the workload. Setting boundaries is always helpful. When approached by a difficult task or situation, don’t give in to it, review the importance of the situation then take time to make the necessary decisions. This can prevent mistakes in the long run that can potentially lead to burnout. If you are a person that fairly gets along with everyone as I am, I would prefer management-training programs that may help with specific needs. If the concerns are more related to behavior problems, then this could cause changes or pressures in the organization. Some ways that can reduce stress is to seek programs that focus on building personal effectiveness, such as time management, delegation, dealing with difficult employees, or adjusting to corporate change. Another way to reduce the effects of burnout is to seek employee assistance. Many organizations have employee assistance programs (EAP) that can provide stress-management resources (Scott, 2001). As a human service manager you must be able to handle difficult situations at any given time. To assist staff with staff burnout many tools can be put into place to help overcome this barrier. One is prevention. Help staff to prevent burnout by distributing the work evenly, in case of an absence, use a back-up worker instead of waiting on that person’s return. Another prevention method is to provide classes and educational materials on a quarterly basis. In conclusion, it is much easier on the staff and supervisors when you have support in the organization. Taking advantage of all related work programs and classes will become handy in the long run. The focus is to balance your needs against those in the organization and make the necessary changes when those issues of burnout arise. The more you manage stress in your daily life, including work and personal, the less chance you will have to burnout. The more positive you are with your goals in life, you can become more productive and motivated by what you do, not only in the workplace but in your personal life as well.

Investment and Selling Price Essay

Turnhilm, Inc. is considering adding a small electric mower to its product line. Management believes that in order to be competitive, the mower cannot be priced above $139. The company requires a minimum return of 25% on its investments. Launching the new product would require an investment of $8,000,000. Sales are expected to be 40,000 units of the mower per year. Required: Compute the target cost of a mower. 57. The management of Hettler Corporation would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. The company’s accounting department has supplied the following estimates for the new product: Management plans to produce and sell 4,000 units of the new product annually. The new product would require an investment of $643,000 and has a required return on investment of 20%. Required: a. Determine the unit product cost for the new product. b. Determine the markup percentage on absorption cost for the new product. c. Determine the target selling price for the new product using the absorption costing approach. 58. Bourret Corporation is introducing a new product whose direct materials cost is $42 per unit, direct labor cost is $16 per unit, variable manufacturing overhead is $9 per unit, and variable selling and administrative expense is $3 per unit. The annual fixed manufacturing overhead associated with the product is $84,000 and its annual fixed selling and administrative expense is $16,000. Management plans to produce and sell 4,000 units of the new product annually. The new product would require an investment of $1,022,400 and has a required return on investment of 10%. Management would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. Required: a. Determine the unit product cost for the new product. b. Determine the markup percentage on absorption cost for the new product. c. Determine the target selling price for the new product using the absorption costing approach.

Alternative Histories and Minorities in Times of War Essay

Alternative Histories and Minorities in Times of War - Essay Example Whereas others moved to these foreign lands willingly, others were forced into immigration due to famine, search for opportunities, and slavery. The interaction of foreigners and locals, thus, results into controversies or good relations depending on the extent of established social norms in a particular place. Locals may dislike certain qualities and implications that result from these interactions and this has a negative impact on the well-being of an immigrant. Also, the activities of racial or religious groups that identify with certain immigrants may lead discrimination locally, and abroad. For instance, the 911 attacks led to the discrimination of Arab Americans, and the subsequent attacks on several countries in the Middle East including Iraq (Armaney, 5). As much as these minorities may become recognized as citizens of a particular country, historical inclinations towards the prevailing differences have never been eliminated completely. This implies that constitutions and oth er agreements that seek to protect the welfare of the people have never been quite effective, despite having good intentions. It is, therefore, evident that uncertain events like wars and immigration are likely to fuel the possibility of discrimination against minorities for a variety of reasons. Immigration trends, especially into America, all have some similarities in terms of the immigrants’ experiences. One conspicuous case of immigration experiences during the 19th century is embodied in the movement of the Irish into America. In 1845, Irish potato fields were attacked by a fungus and this resulted in a devastating famine (Scroth, 5). It caused the deaths of 2.5 million citizens and subsequently led to several crop failures by 1951. Between these periods a mass exodus ensued and Irish people began streaming into America. They came in millions and most of them were poor, disillusioned, and malnourished. Just like many other immigrants, they believed that America was the l and of opportunities and also a solution to all their problems. However, they failed to know that this marked the beginning of a dangerous journey. The trips took 3 months and the conditions in the vessels were intolerable (Dolan 8). Food was scarce and families were heaped together in the vessels with insufficient air and light. Beddings were dirty and the rough conditions resulted in the branding of the vessels as coffin ships. Once they arrived in America, the immigrants were met with even more chaos. No official reception areas were present and immigrants were also sold tickets that led to wrong destinations. Increased fraud led to the establishment of Castle Garden station in 1855 and investigations on the abuses took course. Immigrants also had to wait for two days since Ellis Island could not serve more than 5000 people in a single day. At the dock they underwent medical examination and those suspected to have serious illnesses were marked with chalk for further medical exami nation (Dolan 12). A failure in the examinations meant that the immigrant would get deported. They also had to answer questions about their intelligence, amount of money possessed, and other seemingly ridiculous questions that they never understood. Living conditions in the US also proved to be harsh as they lived in crowded rooms and received little wages for lots of work. As a result, epidemics like typhoid, tuberculosis and diarrhea were

Case study discussion Essay Example | Topics and Well Written Essays - 250 words

Case study discussion - Essay Example Thus, the school district must give Brian another opportunity of being in school, through the specialized and individualized education programs (Geary, 2008). The individualized and special education program for Brian must also involve counseling elements. It is clear that Brian had a difficult childhood; therefore, the counselor must aim at providing psychosocial support to the student. This support will enable Brian improve has attitudes towards education and related social life. To minimize frustration, the individualized and specialized program should aim at improving the academic competencies of Brian. The special education teacher should provide appropriate learning environment and resources, so that Brian gets adequate motivation to improve academic grades. The violent and threatening actions of Brian are a direct result of emotional instability, frustration and a difficult childhood. Thus he does not qualify for suspension (Geary, 2008). The School district and the school administrators must work towards adopting a special and individualized program, for the benefit of disturbed or disabled students like

General Electric fianancial accounting analysis Research Paper

General Electric fianancial accounting analysis - Research Paper Example Section II: Financial Statements and Financial Ratios As a decision maker, we need to know about the company's financial strength when we have to make any investment in the company, or we have to know how the company is faring in terms of liquidity or how the company can reward to its shareholders or for that matter how the company is currently performing compared to the previous years. One can make a good estimate for any firm by studying their financial statements, financial ratios and when they are compared with industry averages, it can give a good understanding where the company stands in the marketplace. For any company we can study following financial statements which can give us most of the information necessary to make our decisions whether that pertains to investment, employment or as a supplier to safeguard our receivables etc. 1. Profit and Loss or Income Statement 2. Cash Flow Statement 3. Balance Sheet Profit and Loss Statement gives us the information how the company f ared during the given financial year. When compared with previous years’ profit and loss figure, we can quickly find whether the company has made any progress or not. If the company is going downside then that also can be found from the income statement. When these figures are compared with the industry average, it can be found how the company is doing against its competitors. Cash Flow Statement is a measure of company’s liquidity strength. It may be that the company is showing profit in their income statement but still its cash flow may be not healthy or even sometimes negative. Obviously, such companies will have difficulty in paying back its debt when due. Cash flow rich companies reward its shareholders liberally and increasing dividend declared is a sign of the good cash flow generated by the company. Balance Sheet is an indication of the company’s status at given point. Usually, it shows its financial status at the end of the financial year. This financia l statement displays a cumulative strength of the company year after year. All the accumulated reserve from so many years of operation can be seen through this statement. We can come to the conclusion quickly by finding or knowing the financial ratios depending upon what kind of the decisions we want to take regarding the company. It would be worthwhile to look into some of the financial data and the ratios of the General Electric Co. Important Financial Ratios (Based on latest balance sheet for the year ended 12/31/2010) Asset Turnover is a good measure of the utilization of company’s assets in making the sales in a competitive market. It is an indication of how efficiently resources are made use of. Asset Turnover = Sales/Average Total Assets (Drake, Pamela) = 150,211/751,216 =0.20% This does not augur well with GE, when compared with the industry average as it comes to first 20th percentile. (GE, Financials) Similarly, when GE's profitability ratios are calculated, they ar e found to be as follows. Return on Assets= 1.28% On comparing with industry average,

2006 New York Housing Market Bubble Research Paper

2006 New York Housing Market Bubble - Research Paper Example Subsequently, the rapid increases lead to decreases in home values and mortgage debt charge that exceeds worth of property. Housing bubbles are usually identified after a market correction since house bubbles do not burst the way stock markets do. A housing bubble can occur when there is excess demand in housing with the supply that does not increase. There was a housing market bubble in New York that reached its climax in 2006. The housing bubble was attributed to rise in subprime lending, poor policies, poor taxation, emergence of new lenders, underwriters and mortgage brokers and credit raters. The housing bubble in New York took a period of ten years before it was realized. Because of the housing bubble in New York, the consumers, lenders and the entire economy were affected. The bubble was identified in New York by housing prices rising faster than the consumer prices, which was attributed to the increased demand for houses and a non-increasing supply side in housing (Frank, 200 9). Housing Market Bubble and New York City economy in 2006 During a housing boom, there is a substantial rise in real output as investment in houses and their related investments increases. There tends to be more jobs in the housing sector, and the investment gives out more economic output. Of course, the assets for extra housing activity have to be generated from somewhere, which means less activity for the other sectors of economy than it could have otherwise occurred. On bursting of a housing boom, new housing begins to fall, and the process is reversed. Another aspect of house pricing that affect the economy is that of household wealth effect and the related consumption. In times when house price increases, owners of houses for investments become wealthier and in the end increase their consumption spending since consumption is dependent on a person’s wealth. The wealthier an individual becomes, the more he has the willing power to consume and thus, the more he will consu me (Frank, 2009). The New York economy experienced changes due to the housing bubble. Before the market bubble came to be realized in the year 2006, the revenues related to real estates had increased tremendously, but with the housing market bubble, the revenues collected in the form of taxes from the real estates decreased drastically. The decrease in tax revenues could be attributed to the weaknesses in carrying out the housing transactions. There was a decrease in the growth of GDP since it grew at a lower level from the previous years. Private investments fell to 3.3% with a considerable increase in all sectors of private investments, but investments in inventories decreased significantly (Wiedemer, 2006). Consumer spending was highly affected by the housing bubble. As the mortgage interest rates rose, the consumption spending was decreased. However, since the interest rates rose slowly and the corresponding wealth effect was not random, the overall effect on the economy was not immediate, but took time before it could be noticed. An attempt to determine the value of houses rated NYC housing value as being 25% above the sustainable level. Usually, the reduced consumer spending may be because of the consumers not having trust in the housing investments, where they experienced a mix up of prices; price increases and price reductions. The consumers felt less wealthy after the bubble burst and they responded by cutting back spending (Wiedemer, 2006). During times of house bubbling, there were an increased number of brokers and underwriters, these made the real estate trade become easier with their role in shortening the transactions between purchasers and sellers of real

Tsotsi Movie Review Example | Topics and Well Written Essays - 1500 words

Tsotsi - Movie Review Example With its plot having been set to develop in South Africa, particularly in Johannesburg’s Alexandra slum, the film presents Tsotsi, a youthful street urchin as the protagonist. Having often times resorted to stealing as a means to earning a living, Tsotsi one day steals a car, not knowing that a baby is in its backseat. The Theme of the Film There are several themes in this film. First and foremost, there is the theme of redemption which begins to play out immediately Tsotsi is stranded with the baby he had inadvertently stolen. The theme of poverty and criminality and the interrelationship between these two is also revisited in the movie, since Tsotsi is pushed into a life of crime because of poverty. The same poverty constrains Tsotsi from being a law abiding citizen, and makes him a brutal criminal instead, though he knows that robbery in itself is wrong. Likewise, Tsotsi’s friends- Butcher, Aap and Boston have been compelled to live in the streets and to dabble with crime by poverty. The existence of street gangs is also spurred on by poverty. At an instance, Butcher and Aap are almost shifting their loyalty from Tsotsi’s gang to a richer rival. ... Particularly, at a given point, Tsotsi attempts to raise money for Boston’s exams, albeit this is done through robbery. Conversely, the same concept of fatherhood plays out subtly in the film’s climax, and thereby shaping its conclusion. As Tsotsi hands over the child to Pumla’s husband John, John plays a fatherly role to Tsotsi by attempting to dissuade the police from shooting Tsotsi. Whether the Film Conveys Any Messages That Will Make A Difference In Americans’ Ordinary Life The film conveys messages that can change American lifestyles for the better. This is because the movie addresses themes such as fatherhood, poverty, criminality and redemption. By considering fatherhood in light of this film, American parents must take stock of their roles towards their children. Likewise, by considering poverty and criminality, America has a chance to address the disproportionate distribution of economic values among racial and class lines, and racial profiling. The theme of redemption on the other hand reminds every American citizen of his personal responsibility towards the law and the state. The outlaw is reminded in his conscience that no matter how far he thinks he may have sunk in crime, he can still change for the better. Nevertheless, the problem with America is that instead of taking the film’s themes into its life system, it is likely to pass Tsotsi as just another literary piece that lacks the clearest quality of originality. This is because, in Tsotsi, Americans are likely to see a sequel of Tony Montana of Al Pacino. America has also watched similar movies such as Raoul Walsh’s Regeneration, where an orphan becomes a leader of a gang, but is eventually succored by a woman of noble intent and

Case Study on Roles and Responsebilities (HRM) Example | Topics and Well Written Essays - 750 words

On Roles and Responsebilities (HRM) - Case Study Example As we progress through our careers, it is very important for us to keep learning about the latest discoveries and advancements in research so that we remain updated on the latest knowledge of our field. This empowers us and makes us knowledgeable so that we are able to deliver in any kind of situation and at any stage in our careers. Core skills are basically knowledge that one has; knowledge about how to do something, how to operate upon something, or how to connect things in a system to make it work. Competencies are, on the other hand, our abilities to do what we know. â€Å"In fact, some â€Å"skills† may be â€Å"competencies† in another organization. It’s not a black and white item that HR can make fit in all places for all things† (Browne). The difference between core skills and competencies can best be explained with the help of an example; Let’s suppose an individual is a very good structural engineer. He has sound knowledge of design and can design anything from infrastructure to multi-story buildings. A company is seeking such a structural engineer to prepare the design of its upcoming project. The employee is selected because he was able to convince the interviewer that he knew designing. However, the employee cannot get along with the peers well at job. He fights w ith fellow workers and is caught in controversies and thus gets fired within the first week. The employee did not have the competency to do the work although he was skilled. This means that certain other factors like personality and behavior were at play. In order to be successful, one requires both core skills and competencies. Customers’ needs in the oil and gas industry are satisfied by processing the natural resources extracted from the earth through a system. In order to run that system, there is need of money and resources. First, the system needs to

Consumer and Buyer Behavior; An investigation into UK Mobile Phone Essay

Consumer and Buyer Behavior; An investigation into UK Mobile Phone network providers - Essay Example Current study focuses on the examination of buyer and consumer behaviour in British market regarding a particular industrial sector, this of mobile phones; the specific part of the industry under analysis is that of the mobile network providers. In Britain there are no many mobile network providers: they are approximately five: Orange, Vodafone, T-mobile, O2 and 3G. These network providers also serve as ‘hosts’ for other – limited – networks like Virgin and OneTel. The research made on the various aspects of activities of these firms within the British market proved that they all have significant advantages and weaknesses. The empirical research (survey) that was conducted for this study led to the conclusion that British industry of mobile network providers is divided in 5 major parts responding to the firms named above; the entrance of a new firm in the specific market would be a challenging initiative; however it is necessary that existing infrastructure and services are updated in order to ensure the competitiveness of these firms in the long term. The development of mobile networks providers industry in Britain has been gradual. Vodafone and O2 has been in the specific sector of British market for quite a long while the other firms, Vodafone, Orange and 3G followed later. In fact, 3G is a quite recent firm in the specific industrial sector; the firm entered this sector in 2003; it is the first firm operating in this industry that offered to its clients the third generation technology. It should be noticed that the competition in this industry remains high despite the fact that no new (after 2003 and the entrance of 3G) firms have entered the specific industry. The increase of competition in all commercial areas is a phenomenon that has been extensively analyzed in the literature and the empirical research. In accordance with Douglas et al. (1989, 437) ‘recent years have witnessed

Teen Prevention Programs Teen Prevention of Sex Research Paper

Teen Prevention Programs Teen Prevention of Sex - Research Paper Example The study involved a randomized sample of 8430 students between the ages of 13 and 15 from 25 schools in Scotland. The students were evenly divided into two groups: control and experimental groups. The experimental group consisted of students who participated in the SHARE program and the control group consisted of students who participated in the sex-education program. The research was built around a conceptual framework reported in the literature. A review of the literature indicates that previous studies report that conventional sex-education programs have functioned to improve the sexual behavior of teens. However, those studies were based on methodologies involving experimental groups rather than randomized trial samples. Thus this study was intended to use a randomized trial sample as a means of determining whether or not conventional sex-education provided a benefit over and above new programs that were specifically aimed at altering the risky sexual behavior of teens. The research methodology involved participating schools to either implement the SHARE program or to continue with the sex-education program. The students were administered a self-reporting questionnaire within six months the completion of the programs. A further follow-up questionnaire was conducted two years later. An evaluation was conducted to determine the authenticity of the programs. The evaluation took into account variables such as context, delivery and students’ responses to the programs. Results indicated that there were no significant differences in sexual behavior after the completion of both programs based on the follow-up questionnaire. Vastly similar numbers of members of both control and experimental groups reported being sexually active by the time the programs were half-way through. Similar numbers also reported using condoms as well as engaged in unprotected sex. However, for students in both groups that had withdrawn from the school, there

Decision Analysis Essay Example for Free

Decision Analysis Essay In business today, many decision-making situations occur under conditions of uncertainty. The demand for a product can be one number this week and double that number next week or vice versa. There are several decision-making techniques to aid the decision maker in dealing with these types of uncertainties. There are two classes of decision situations, situations where probabilities can be assigned to future occurrences and probabilities that cannot be assigned. A decision-making situation includes several components, the decision itself and the actual events that can occur in the future, we refer to those as states of nature. The states of nature can be good and bad economic conditions, cold or warm weather, and an accident or no accident. The state of nature that does occur will determine the outcome of the decision, but the decision maker has no control over which state occurs. Payoff tables are organized so that the decision situations can be analyzed. Using a payoff table is a means of organizing a decision situation, including the payoffs from different decisions, given the various states of nature. Each decision will result in a specific outcome corresponding to the particular state of nature that occurs in the future. Payoffs are usually expressed as revenues or costs, but the can be expressed in a variety of values. Once a payoff table has been organized, there are several criteria available for making the actual decision. One of those is the maximax criterion. The maximax criterion results in the maximum of the maximum payoffs. The decision maker would be very optimistic. They would assume the most favorable state of nature would occur. When considering profit, the decision maker would pick the state of nature that gains the highest revenue. When considering cost, the decision maker would select the minimum of the minimum of costs, which is also referred to as the minimin criterion. The maximin criterion is another criteria that can be used. The maximin criterion results in the maximum of the minimum payoff. This is a pessimistic criterion. The decision maker assumes that the minimum payoff will occur. Of those minimum payoffs, the maximum is selected. If the decision maker were to consider costs instead of profits as the payoff, the conservative approach would to select the maximum cost for each decision. Then they would select the minimum of those costs. The minimax regret criterion minimizes the maximum regret. Regret is the difference between the payoff from the best decision and all other decision payoffs. With this criterion, the decision maker attempts to avoid regret by selecting the decision alternative that minimizes the maximum regret. To use this criterion, the decision maker selects the maximum pay off under each state of nature and then subtracts the other payoffs from those amounts. The Hurwicz criterion is a compromise between the maximax and maximin criteria. The decision maker is not totally optimistic not totally pessimistic. With this criterion, the payoffs are weighted by a cofficient of optimism, which is a measure of the decision maker’s optimism. The coefficient of optimism must be determined by the decision maker, which is a limitation. It can be difficult for a decision maker to accurately determine his or her degree of optimism. This is a completely subjective decision making criterion. The equal likelihood criterion is done in the same way. The equal likelihood criterion multiplies the decision payoff for each state of nature by an equal weight. In conclusion, decision making analysis is a key component to maximizing profit and minimizing cost. There are several different decision-making criteria. Which criteria is used would be based on the decision makers outlook on the future.

The impacts of structural and infrastructural elements to service o

The impacts of structural and infrastructural elements to service o I. INTRODUCTION With the ever-changing nature of a global business operation that requires firms to adjust rapidly, operations flexibility capability has become more influencing, underpinning the strength of an organization. World-class service organizations rely on right strategies and practices to enhance their operations flexibility. In Malaysia, for instance, the world best budget airline, AirAsia, applies certain principles, practices and procedures that align with its operations objectives to achieve appropriate level of flexibility in their operations that suited its market segments requirements [1] [2]. In another example, there was a lot of confusion on the part of the passengers and employees of Jet blue airlines in Florida when weather conditions delays flights. In any eventualities, organization must plan ahead on how to deal with the changing circumstances that will affect their operations. Some of the impact of changes must be dealt at the source through some standardization of products, services and process delivery. The remaining must be dealt with at the point of impact using robust structural and infrastructural resources deployment strategies. Among the most essential move to establish and eventually enhance the operations flexibility is the use of technology especially the IT to better communicate internally within organizational units and externally with their customers thus providing flexibility in their operations. Others may rely on smart networking with clients and suppliers so that they will handle the uncertainties together as a group. At the same times, having a flexible workforce will ensure certain level of variability will be absorbed by tactically reassign the workforce. In summary, the changing nature of the environment requires flexibility to be one of the primary competitive components to be applied and considered seriously. To enhance the flexibility capability, firms need to strike a balance with structural and infrastructural decisions. In this paper, we will evaluate the dimension of structural and infrastructural elements and service operations flexibility and their relationship in a multivariate outlook. Few important questions need to be addressed here namely: What is service operations flexibility; what are the important structural and infrastructural elements and how they affect the operations f lexibility of service organization. II. LITERATURE REVIEW It is widely argued that operations flexibility is very much related to changing the structure and infrastructures of the organizations. However, the discussion on the important elements that fall into each category is debated. In following the definitions given by Hayes and Wheelwright [3], and Schroeder [4] suggested structure resources include capacities, facilities, process technology, and vertical integration whereas infrastructures include people, information system, organization, production and inventory control, and quality control system. Slack [5] suggested labor and technology as structural resources that must be supported by infrastructural assets such as the system, relationship and information couplings. Relating the structural and infrastructural elements to operations flexibility, there have been several studies done to address the issue. One of the important studies conducted by Correa and Gianesi [6] associated the broader term of flexibility as being able to respond effectively to unplanned change. They linked uncertainty and variability with unplanned change, which require firms to understand the concept of unplanned change. Managing unplanned change can be divided into two dimensions. One is labeled as flexibility in dealing with change after the unplanned change has occurred. The second dimension is the ability to deal with a certain amount of change and reducing the effect of change. This can be done by finding ways to control the changes by implementing strategies like forecasting technique, maintenance system, parts standardization, and manufacturing focus. These strategies are to prevent and avoid the change before it occurs. This is where the structural and infrastructur al elements play their roles. For example, in order for service firms to be able to implement the chosen strategies both before and after the occurrences of unplanned changes, firms ought to have suitable structural elements such as integration and technology supported by systematic infrastructural elements such as quality leadership and teamwork activities. Harvey et al [7] explained that a flexible firm is the one that can handle variability with minimum penalty and suggest the difference between internal robustness and external flexibility. Internal robustness must be dealt with minimum efforts due to the fact that it will not create value to customers. Harvey et al [7] suggested that in order to deal with the internal variability, firms may require organizational arrangement such as cross-functional teams, empowering contact personal, and building a flat organization, which factors are related to infrastructural elements of operations as well as modifying the structural elements such networking capability. It is the external flexibility that must be managed carefully in order to gain competitive advantage. Central to the issue, Harvey et al [7] proposed the use of structural element, mainly IT technology in order to manage flexibility. This is also supported by Bucki and Pesqueux [8] who also proposed the components of operations strategy on structural and infrastructural elements that contribute to operations flexibility. Adler [9] agreed that flexibility in organizations is a useful tool to improve firms competitive position as related to the use of technologies in implementation and the decision- making process. Upton [10] supported the idea and added that firms should create an infrastructure to allow for system flexibility. As a result of technological improvement and changes in customer preferences, service operations have become flexible and this requires adjustment in the delivery process. Upton [10] also pointed out that customers expect and prefer to get services at their convenient time and location, therefore capability on the part of the service provider to be flexible is imperative. One specific example on how structural elements such as technology and integration play an influencing role in service operation flexibility is the use of ATM machines. Banks that have ATM services have been providing convenient services to customers for years. In accordance with this, ATM services have improved over time. Two of the improvements mentioned include the increase in the limit of the amount in withdrawal transactions and the multiplication of ATM units strategically situated in many convenient locations. In elaboration, ATM services nowadays are not solely restricted to bank premises but can also be found at airports, petrol stations, bus stations, fast food restaurants and many others. The change in the way banks deliver services indicates the degree of flexibility in service operations that benefits banks and customers alike. ATM technology may require some investment on the banks side, but in the long run, it reduces operating costs by decreasing the number of staff a t counter services. Davis and Heineke [11] concluded that reduction in customers waiting time at counter services by improving better services management of process design can certainly reduce customers dissatisfaction and defection and technology could help to achieve this goal. Technologies have proven to be able to offer more opportunities in improving services processes. Collier [12] in a study on electronic devices for check-in and check-out systems in the hotel industry, automatic toll booth in transportation, electronic fund transfer in banking services, the practices of e-ticketing in the airline business have given huge impact on the ticket purchasing system, airport checking process, and service industries as well. Therefore, in responding effectively to customers demand variations, improving services process design by using technology is another approach to increase flexibility of the service system. Based on the above discussion, we have recognized several elements that must be considered in enhancing flexibility capability of a firm which could be further divided into structural and infrastructural elements. Among the most cited structural elements in discussing the service flexibility is technology, particularly the ICT, integration, and facility. With regards to the infrastructural elements, some of the most important factors cited in the literature are team management, worker empowerment, and quality leadership. As for the dimensions of service operations flexibility, we incorporate the types given by Correa and Gianessi [6] who suggest service flexibility capability as design, package, volume, delivery time, delivery location, system robustness and customer recovery with Harveys internal robustness and external flexibility[7]. Thus, we hypothesize; H1: Structural elements consists of facility, location, technology, integration/networking positively influence the external flexibility; H2: Structural elements consists of facility, location, technology, integration/networking are positively influencing the internal robustness, H3: Infrastructural elements consists of teamwork management, worker empowerment, and quality leadership positively influence the external flexibility, H4: Infrastructural elements consists of teamwork management, worker empowerment, and quality leadership positively influence the internal robustness We also propose that the infrastructural elements are more dominant in service industries as the soft power related to human potential are the silent forces that determines the operations flexibility, H5: Infrastructural elements have a greater influence on both external flexibility and internal robustness as compared to the structural elements. III METHODOLOGY This research uses a survey approach. We employed several techniques leading to the final large scale survey. First we conducted a thorough literature review on topics leading to the development of items to measure structural and infrastructural decisions and operations flexibility. Subsequently, the researchers conducted several interviews with operations managers in selected service companies namely; hotel, port management, and airline, to check if the factors found in the literature are relevant to the practical ideas of the managers, particularly in the Malaysian business environment. This technique allows the researcher to explore any relevant ideas pertaining to the issue. The interview will also provide some valuable information on the keywords or the indicators from the Malaysian perspective since the literature is too replete with studies from the different environments of western countries. Each session usually takes more than an hour. Combining the literature review and the interviews, an instrument was developed to measure structural and infrastructural elements, and operation flexibility. The structural and infrastructural elements are mainly adapted from the instruments developed by Boyer and McDermott [13]. The items to measure operations flexibility capability are taken from Correa and Gianessi [6] and Harvey et al. [7]. In summary, the instrument consists of (A)Infrastructural elements divided into worker empowerment(7 items), quality leadership(6 items), team management (4 items) (B) Structural elements consists of location(2 items), integration(5 items), technology(6 items) and capacity(2 items) (C) external flexibility (6 items) and internal robustness (5 items).  A sample of questions is given as follows; Technology: Indicate level of investment in the latest technology relevant for enhancement of the business operations (e.g. latest scanning system for hospital or new ATMs for banks) Capacity: Indicate the level of investment in upgrading / improvement of existing facilities Several workshops and discussion were conducted leading to the final version of the instruments. Before conducting a pilot study, we pre-tested the instrument on our MBA students, whose backgrounds included experience working in service organizations to identify potential problems with respect to the ability of the respondents to understand the questions asked, and clarify the instruments when it is necessary. No major change was made. Consequently, a pilot test was done to test the reliability and validity of the instrument. This is also done to minimize the administration of the questionnaires in the real study. 30 companies were conveniently selected to test the instruments. 25-100 observations were thought adequate for this purpose [14]. The reliability of the instrument was assessed before we proceed with the large scale study. We employed the Cronbach alpha method in gauging the reliability of the scale. All constructs show the alpha coefficient of greater than 0.7. We conclude d that the measurement scale is reliable and thus, will maintain all items measures. The large scale study that involved companies from 9 service industries was followed subsequently. Instead of using mail, which often result in poor response in an emerging economies countries such as Malaysia, we sent enumerators to operations managers or equivalent positions whom we had contacted earlier and expressed their desire to participate in the study. To choose the companies, we used the appropriate directory when it is available. For example, for the hotel industry, we utilized the Malaysian Hotel Association directory and select hotels with the rating of three stars and above. The selection represented both low contact and high contact category [15] :(a) Hotels (Service factory);(b) Fast foods (service factory);(c) Auto repair (Service shop);(d) Private hospitals (Service shop);(e) Private colleges; (f) Retailing (stores) (Mass service);(g) Retailing banking (mass service);(h) Accountant(Professional);(i) Architect firms(Professional).   The total final response was 254 firms. We then analyzed the data using the appropriate statistical techniques such as Factor Analysis and Regression Analysis TABLE 1 SERVICE CATEGORIES Sectors Frequency Percent Hotel Fast Food Private Hospital Auto repair Retail stores Retail banks Private colleges Architect Accountant Total 31 30 24 26 30 30 30 30 23 254 12.2 11.8 9.4 10.2 11.8 11.8 11.8 11.8 9.1 100 III. RESULTS Descriptive Statistics: We had about equal numbers of respondent across the 9 industries as shown in Table 1. With regards to the years of operation, more than 30% of all companies have been in operations for more than 10 years. Of all respondents, close to 60 percents are managers or above with 7.1 percentile hold top management positions. Most firms (about 60%) do business locally or nationally whereas about 25 % cover international market. Factor Analysis: A series of factor analysis was conducted to establish uni-dimensionality of the variables and to reduce the independent variables (structural and infrastructural elements) and the dependent variables (external flexibility and internal robustness) to appropriate factors. In doing this, there is an opportunity to redefine or reduce the number of factors according to the commonalities within the variables. SPSS provides the test for the appropriateness of the use of factor analysis and the adequacy of the sampling size. Bartlett tests indicate that factor analysis is suitable and the KMO test calculated that the sample is enough to conduct factor analysis. The first analysis on the structural elements resulted in three factors with percentage variance explained 74.674 percent. We define the factor as facilities related factors (capacity and location),technology, and integration/networking. We then run the second factor analysis for the infrastructural elements and foun d only two factors with 64.958 percent cumulative variances included and name the factors as teamwork management and quality leadership. Finally a separate analysis for external flexibility and internal robustness, as suggested from the theory, maintain most of the items that measures both constructs. The results of exploratory factor analysis shed light on structural, infrastructural elements and the service operations flexibility: external flexibility and internal robustness. The previously mentioned separate structural factor; facility and location, were remerged into one factor that we could call a facility related factors. Examining the items that measures capacity and locations seem to highlight the facility issues and the merging is not totally surprising. Meanwhile, worker empowerment from the infrastructural elements was diluted as some of the items are highly correlated with the team management. This is also justifiable as the team needs some forms of empowerment to be abl e to work effectively. We however intend to cut short the detail discussion of the result s of the factor analysis as the emphasis of this study is on the impacts of the independent variable to service operations flexibility. Multiple Regression: The first model with internal robustness () as the dependent variable has a good fit with R = 0.662 and R square = 0.439. The strongest factors to influence the dependent variable seem to be the structural elements, with technology ( Ã‚ ¢ = .387; t = 6.839), capacity location ( Ã‚ ¢ = .320; t = 5.706), integration/networking ( Ã‚ ¢ = .180; t = 3.353) show the highest beta-coefficient consecutively. Only team management, one of the two factors of infrastructural elements significantly influences the dependent variables. ( Ã‚ ¢ = .156; t = 2.609). The second model has also a good fit with R = 0.686 and R square = 0.471. This time, technology also plays an influencing factor ( Ã‚ ¢ = .342; t = 6.219), followed by capacity/location ( Ã‚ ¢ = .299; t = 5.499), integration/networking ( Ã‚ ¢ = .197; t = 3.783), team management ( Ã‚ ¢ = .187; t = 3.215), and quality leadership ( Ã‚ ¢ = .151; t = 2.678). Here, it seems that quality leadership fac tor play a significant role in delivering the external flexibility of a service firm. We also notice a reducing degree of influence of structural elements (except integration/networking) to affect the external flexibility of the service firms. Further, it is also quite surprising to observe the structural elements enforcing a higher degree of influence to the service operations flexibility where as we hypothesize that the soft elements of infrastructural should lead the list. The results enable us to confirm H1, H2, H3, and H4 but H5 which it is partially confirmed. This requires further explanations that will be discussed in the next section. IV. DISCUSSION This study confirms the importance of structural and infrastructural elements to the service operations flexibility. As suggested from Harvey et al [7] that the variability will have to be dealt with organizational arrangement such as cross-functional teams, empowering contact personal, and building a flat organization, which factors are related to infrastructural elements of operations as well as modifying the structural elements such as networking capability. Our study not only supported the literature but also specifying which factors contribute the most to the operations flexibility. Contrary to our belief that the soft elements will impact more on the operations flexibility of service firms, we found that the structural part especially the element of technology show a greater influence. We believe this is not totally unexpected as the infrastructural parts have also been found in the literature to play a supporting role in the operations effectiveness. Idris and M Ali highlighted the importance role of quality leadership and best practices in steering the effectiveness of firms [16]. Idris et al. [17] emphasizes quality leadership as an important component of organizational capability to drive company performance. Hussain et al [18] also proposed the prime role of leadership in their Excellence model. Further, regarding a reducing degree of influence of structural elements (except integration/networking) to affect the external flexibility of the service firms, this study highlights the role of infrastructural elements on the enhancement of the external flexibility. External flexibility usually deals with the customer demand that require more involvement on the part of the human resource to bring about the needed adjustments whereas more structural elements such as technology is needed to provide consistent internal results in the form of less confusion and glitches. Implying the results, service companies must invest in the structural elements such as technology and networking capability to boost the operations flexibility. These initiatives must also be back up with the human dimension in the forms of team management, and quality leadership. By recognizing the five factors prescribed in this research, a service company would be able to develop and strengthen the operations flexibility of their firms. There is no further analysis of the categories of service companies that may moderate the level of deployment of structural and infrastructural resources. For example, it is a possibility that a low contact service firms will utilize higher level of technology as compared to professional services. Thus future studies should highlight the issues. In addition, the importance of having operations flexibility may also be moderated by the competitive priorities of the companies and the categories of firms themselves. It is presumed that those companies who strive to make flexibility as their top agenda will deploy higher level certain structural and infrastructural resources as compared to those who have cost minimization as their operation objectives. Finally, this study uses managers perception to assess the operations flexibility. Other objectives measures should be explored for future studies V. CONCLUSION In this study, we investigate the relationship between structural and infrastructural elements and their effects on service operations flexibility. We divide the structural elements decisions into capacity, location, integration/networking, and technology while infrastructural elements decisions include worker empowerment, quality leadership, and team management. Service operations flexibility is divided into internal robustness and external flexibility. An instrument to measure all the factors is designed and pre-tested on 30 MBA students with slight changes as required. Thereafter, a pilot study was directed to operations managers of 23 Malaysian service organizations to check the reliability of the instrument. All items used to measure the studied factors are found to be reliable. Factor analysis readjusts our independent factors. With the new defined factors, we regresses them against the internal and external flexibility. We also found the dominant influences of structural and t he supporting influence of infrastructural elements to the service operations flexibility. ACKNOWLEDGMENT This research is supported by a research grant of National University of Malaysia (UKM GUP EP 07 18 113)

Feasibility Study Report Business Essay

Feasibility Study Report Business Essay Assumption As introduction of the assignment said. The school in the case should be in a small village, and both of the pupils, are in the age 5 to 11 years group. So that it should be envisaged it is a small computer room. By received government funding, there should have a network of 8 desktop computers within Internet connection. Assumed there are not mixed class in the computer room. There should be six groups totally. So the total user of the computer room is around forty two persons. Install two interactive whiteboards for classroom use and a networked laser printer is enough . I suggested the school should be install Windows XP as the operating system, make sure it is easier to maintenance and have much more higher compatibility in the software market. They also should have an off the shelf database for school administration. For example, teacher can keep the student attendance records at classes and keep the marks for tests, exams and assignments etc. Access in Microsoft office 2003 is suitable for the case. Because it have a higher performance, lower price with patched version. Two interactive whiteboards are also let the teaching staff to show the teaching materials which they find out from the Internet . In my own opinion, follow the whole project planning. The installation and working should be complete within six months successfully . TASK1 Feasibility study report Introduction This school has received government funding to buy a network of 8 desktop computers with Internet connection, two interactive whiteboards for classroom use, a networked laser printer and an off the shelf database for school specifically. We should complete the hold project within six months . School background This school is a locate in a small village with pupils in the age range 5 to 11 years . There is no in-house expertise to call upon. The senior management of the school is heavily reliant on this plan. We should complete this guide to let the school staff through the project and show what will have to be done to make it a success . The schools vision is to provide fast, reliable technical assistance to pupils and teaching staff on both study and teaching . Our mission is to : Teaching staff can keep records of student attendance at classes and marks for tests, exams and assignments . Teaching staff can also access the Internet for teaching materials that can be used on the interactive whiteboards . Envisaged students will access the Internet for research purposes, and for learning materials . Students can also prepare written assignments and print them out from networked printer . Option recommendation Hardware The recommended current model of item in the market. Shown in table 1.1. Why we choose these model of computer is because the Stability, enhanced security, efficiency, these PCs mean business : HPs most stable and secure business PCs with powerful technology and professional innovations such as energy efficient features and leading remote manageability solutions. Maximum flexibility. Global configurations, a range of ports, slots and bays and a wide variety of HP pre-qualified options and accessories allow you to maximize your investment . Energy Efficiency features. The HP 8000 Elite model has improved energy efficiency over previous generations by 30% when the PCs are at an idle. Take efficiency even further with low power processors and energy efficient power supplies. Enhanced manageability. Designed to be easy to deploy and manage, the HP Compaq 8000 Elite helps lower maintenance costs and protects your assets with a full range of remote management technologies from HP, Altiris and Intel. More secure, HP Protect Tools security software helps you more safely secure your hardware, software, firmware and OS, providing infrastructure protection that allows you to focus on your business, not your points of vulnerability. Global service and support. Get the most out of your investment with HP s world class global services and support portfolio, including HP Total Care and a worldwide network of partners to help you get the most out of your technology investment. Get the most out of your investment with HP s world clas s global services and support portfolio, including HP Total Care and a worldwide network of partners to help you get the most out of your technology investment. Warranty, protected by HP Services, including a 3 -3 -3 standard warranty delivering 3 years of parts and 3 year of both labour and on-site repair. Response time is next business-day and includes free telephone support 9. 00 am to 5. 00 pm. Terms and conditions vary by country. Certain restrictions and exclusions apply . Software I suggested that the school should be install Windows XP with service pack 3 as the operating system, make sure it is easier to maintenance and have much higher compatibility in the software market. The off the shelf database for school administration. The office 2007 as known as bugs in the program and office 2010 is still in the beta version. So I recommended to install Access in Microsoft office 2 003 is suitable for this case. Because it have a higher performance, lower price with patched version . Technical As I am the project manager. So do I will follow the technical problem and give solutions. Also, during the project, briefing of how to use those facilities will be given. So that both teaching staff and student can use it smoothly, reduce the maintenance times and keep those facilities have a longer working hours . Operational As the computer is build up to let the teaching staff and student to use. The first priority should be lesson first. Second, the after school time will be open for the student. To do further searching for there projects or studying materials . Economic If the briefing is given to both teaching staff and student. The working life of the facilities will become longer. So that those item will be more worth of it. Maintenance is also need to join after the warranty date is expiry. Then they were no need to buy or upgrade the computers shortly . Cost benefit Table 1 .1 Contract Item description Price Notes q HP COMPAQ 8000ELite Small Form Factor ** ( not include Mouse, DVD drive and Floppy Disk Drive )** CPU : Intel Core2QUAD Q9550 VPRO( 2.83GHz, 12M L2, Intel Q45 Chipset ) -Hard Dis k:160GB SATA VGA Display : Intel Graphics Media Accelerator 4500 -RAM : 2GB ( PC3 DDR3-10600MHz ) Total RAM Slots : 4( spare slots : 2 ) Expansion Slots: 1 x low-profile PCI, 1x low-profile ( PCI-EX16 ), 2x low-profile ( PCI- EX1 ) External I/O ports : : Front: 4 x USB ports ; : Rear: 6 x USB ports ; Serial Port: 1 x Parallel port ; 1 x RJ 45 port ; 1 x VGA Port ; 1 x Audio input / output; -Sufficient Bays for installation internal hardware : 1 x optional SATA DVD drive ( internal ) or1 x hard disk ( internal ) with 104 Keyboard and OS License Dimensions : ( Width x Depth x Height ) 338 x 378 x 100 mm ( 13.3 x 14.9 x 3.95 in ); Weight : 8.5 kg ( 18.75 lb ) ; HK $ 4, 995. 0 q LCD Monitor : LG 17( 4 : 3 ) Brightness : 300 cd / m2 ; Contrast Ratio 8000: 1 ; Resolution : 1280 x 1024 ; Input ports : 15 Pin D sub ; à £Ã¢â€š ¬Ã¢â€š ¬ Dimensions : ( Width x Depth ( with monitor stand ) x Height ) 370 x 185 x 390 mm ( 14.57 x 7.28 x 15.35 in ) ; Weight :3.4 kg ( 7.5 lb ) ; à £Ã¢â€š ¬Ã¢â€š ¬ HK $ 1, 165.0 q DVD Drive: HP 16X SATA DVD RW Drive HK$ 203 .0 q Mouse:HP Wired Ball PS/2 2-button mouse with Wheel HK $ 7 .0 HP LaserJet P2055dPrinter, bundle with 15ftUSB printer cable à £Ã¢â€š ¬Ã¢â€š ¬ Print speed : Up to 33pages per minute ( ppm) Resolution : Up to 1200 dots per inch ( dpi ) Paper handing : Automatic two-sided printing Tray 1 : 50 sheet multipurpose tray, Tray 2 : 250 sheet input tray Recommended monthly print volume : 750 to 3000 pages Standard connectivity: parallel port, USB 2.0 port Dimensions ( width x depth x height ) : 365 x 368 x 268mm ( 14.4 x 14.5 x 10.6in ) ; Weight : 10.7kg ( 23.6lb ) ; HK $ 1, 240.0 à £Ã¢â€š ¬Ã¢â€š ¬ HANSHIN multi touchable interactive whiteboard Model :TB 01U- 105 105 Diagonal[16 : 9] 2367 x 1387 x 30 HK $ 20,000 ABC Network facility company Network installation HK $ 20, 000 Subtotal amount of project : Set of PC x 8 Network Printer x1 Interactive whiteboard x 1 Network installation HK $ 50, 960 HK $ 1, 240 HK $ 20, 000 HK $ 20, 000 Total amount of project : HK $ 92 ,200.0 Table 1. 1 show the total amount cost of the whole project . Cost / benefit analysis Year 0 Year 1 Year 2 Year 3 Hardware Costs $72, 200 $0 $0 $0 Installation $20, 000 $0 $0 $0 Total Cost $92, 200 $0 $0 $0 Savings Training Development $25, 000 $25, 000 $25,000 $25, 000 Maintenance Cost Free Free Free Free Table 1. 2 Table 1. 2 show that, besides the build up budget. School is no need to pay extra fund. In the first three years, there is no need to pay maintenance fee. Cost-effectiveness analysis is distinct from cost benefit analysis, which assigns a monetary value to the measure of effect .Cost effectiveness analysis is often used in the field of health services, where it may be inappropriate to monetize health effect. Typically the CEA is expressed in terms of a ratio where the denominator is a gain in health from a measure ( years of life, premature births averted, sight-years gained ) and the numerator is the cost associated with the health gain. The most commonly used outcome measure is quality-adjusted life years. Cost utility analysis is similar to cost-effectiveness analysis . Risk Assessment Risk assessment consists in an objective evaluation of risk in which assumptions and uncertainties are clearly considered and presented. Part of the difficulty of risk management is that measurement of both of the quantities in which risk assessment is concerned potential loss and probability of occurrence can be very difficult to measure. The chance of error in the measurement of these two concepts is large. A risk with a large potential loss and a low probability of occurring is often treated differently from one with a low potential loss and a high likelihood of occurring. In theory, both are of nearly equal priority in dealing with first, but in practice it can be very difficult to manage when faced with the scarcity of resources, especially time, in which to conduct the risk management process. Expressed mathematically . In auditing, risk assessment is a very crucial stage before accepting an audit engagement. According to ISA315 Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement, the auditor should perform risk assessment procedures to obtain an understanding of the entity and its environment, including its internal control. There are two methods of risk assessment in information security field, qualitative and quantitative. Purely quantitative risk assessment is a mathematical calculation based on security metrics on the asset ( system or application ). Qualitative risk assessment is performed when the organization requires a risk assessment be performed in a relatively short time or to meet a small budget, a significant quantity of relevant data is not available, or the persons performing the assessment dont have the sophisticated mathematical, financial, and risk assessment expertise required. Qualitative risk assessment can be performed in a shorter period of time and with less data. Qualitative risk assessments are typically performed through interviews of a sample of personnel from all relevant groups within an organization charged with the security of the asset being assessed. Qualitative risk assessments are descriptive versus measurable . Number Case of risk solution recommendation 1 Lost data Purchase a backup tape drive See whether have budget or not after government funding 2 Computer repair Join maintenance Join maintenance after the third year 3 Abuse the computer and room facilities Limit the computer room open time Nominate some student leader to look after it 4 PC performance lower Upgrade parts in future See the cost of parts in future if necessary 5 Lost leakage Purchase encryption software See the cost of parts in future if necessary TASK2 The main activities to be undertaken in the project is shown as follow. The life cycle of it can be a waterfall diagram ( Table 2 .1 ) . Requirement Analysis Specification Analysis Design Code unit test Integration Test Staff training System acceptance test Table 2 .1 In Table 2. 1, show how the project run, it is a waterfall model. The waterfall development model has its origins in the manufacturing and construction industries; highly structured physical environments in which after-the-fact changes are prohibitively costly, if not impossible. Since no formal software development methodologies existed at the time, this hardware-oriented model was simply adapted for software development. To follow the waterfall model, one proceeds from one phase to the next in a sequential manner. For example, one first completes requirements specification, which after sign off are considered set in stone. When the requirements are fully completed, one proceeds to design. The software in question is designed and a blueprint is drawn for implementers (coders) to follow this design should be a plan for implementing the requirements given. When the design is fully completed, an implementation of that design is made by coders. Towards the later stages of this implementation phase, separate software components produced are combined to introduce new functionality and reduced risk through the removal of errors . We can find that there are six stages need to go throw. It is requirement analysis specification, analysis, design, code and unit test, integration test staff training, system acceptance test . TASK3 Contract Item description Price Notes q HP COMPAQ 8000ELite Small Form Factor ** ( not include Mouse, DVD drive and Floppy Disk Drive )** CPU : Intel Core2QUAD Q9550 VPRO( 2.83GHz, 12M L2, Intel Q45 Chipset ) -Hard Dis k:160GB SATA VGA Display : Intel Graphics Media Accelerator 4500 -RAM : 2GB ( PC3 DDR3-10600MHz ) Total RAM Slots : 4( spare slots : 2 ) Expansion Slots: 1 x low-profile PCI, 1x low-profile ( PCI-EX16 ), 2x low-profile ( PCI- EX1 ) External I/O ports : : Front: 4 x USB ports ; : Rear: 6 x USB ports ; Serial Port: 1 x Parallel port ; 1 x RJ 45 port ; 1 x VGA Port ; 1 x Audio input / output; -Sufficient Bays for installation internal hardware : 1 x optional SATA DVD drive ( internal ) or1 x hard disk ( internal ) with 104 Keyboard and OS License Dimensions : ( Width x Depth x Height ) 338 x 378 x 100 mm ( 13.3 x 14.9 x 3.95 in ); Weight : 8.5 kg ( 18.75 lb ) ; HK $ 4, 995. 0 q LCD Monitor : LG 17( 4 : 3 ) Brightness : 300 cd / m2 ; Contrast Ratio 8000: 1 ; Resolution : 1280 x 1024 ; Input ports : 15 Pin D sub ; à £Ã¢â€š ¬Ã¢â€š ¬ Dimensions : ( Width x Depth ( with monitor stand ) x Height ) 370 x 185 x 390 mm ( 14.57 x 7.28 x 15.35 in ) ; Weight :3.4 kg ( 7.5 lb ) ; à £Ã¢â€š ¬Ã¢â€š ¬ HK $ 1, 165.0 q DVD Drive: HP 16X SATA DVD RW Drive HK$ 203 .0 q Mouse:HP Wired Ball PS/2 2-button mouse with Wheel HK $ 7 .0 Subtotal amount of project : Total amount of 8 set of PC HK $ 50, 960 TABLE 3. 1 In table 3. 1 show the requirement of PC that hardware recommend and should be meet . Software side, in the assumption. There was suggested to user Microsoft Office Access 2003 with service pack 3. Beacause Microsoft Office Access, previously known as Microsoft Access, is a pseudo relational database management system from Microsoft that combines the relational Microsoft Jet Database Engine with a graphical user interface and software-development tools. It is a member of the Microsoft Office suite of applications, included in the Professional and higher editions or sold separately. In mid-May 2010, the current version Microsoft Office Access 2010 was released by Microsoft in Office 2010 ; Microsoft Access 2007 was the prior version. Access stores data in its own format based on the Access Jet Database Engine. It can also import or link directly to data stored in other applications and databases . Listed below are selection criteria of choosing both the hardware and off the shelf software which we need to purchases. We need to consider about both assessment of supplier, assessment of contractual and assessment of technical . Supplier assessment The main criteria to consider when evaluating the suitability of the supplier organization are as follows : Financial: Financial strength, time in market place, market presence, future plans, number of employees, R D investment . Culture : Values, risk sharing, openness, commitment, responsiveness, strategy, ethos . Capability : Size, number of staff and skills, location, track record, availability of staff, size of user base . Management : Standards, processes for quality, change control, risk management, planning, control . Contractual assessment The main criteria to consider when evaluating the suitability of the contract being drawn up between yourself and a third party supplier of the provision of goods or services are as follows : Financial : Pricing structures, penalty clauses, payment terms, disclaimers . Materials : Ownerships of materials, service level agreements, support and maintenance, change process . Personnel : Lines of demarcation, assignment of responsibilities, use of sub-contractors . Technical assessment The main criteria to consider when evaluating the technical capabilities of the proposed solution put forward by the supplier or organization are as follows : The product : Meets requirements, robust, sufficient features, adequate documentation, maintainable, capacity for growth . Modification : Is it needed, cost, support, how much, how easy, who will do it, time to do achieve, backup etc . Standards / quality : Does it match your standards, complies with standards and law, adequate resources, technical knowledge required . Environment : Will it work in your environment, complies with standards and law, adequate resources, technical knowledge required . TASK4 Stakeholder communicate method When will need to have communicate What purpose Senior management reports Specific review purposes User ( Teachers ) reports routine needs analysis User ( Students ) task assignments If use needs analysis Supplies specifications routine review purposes Table 4. 1 In table 4. 1 show how do the stakeholder work and communicate with the project manager. Make sure that their opinion can be easier to voice out and enhance the project. The project manager is directly under the senior management. Although the have not got a high knowledge in the information technology field. But they are deeply involve the whole planning and the school development. So the communication must needed. The review of project stage and effective is on a specific time, Too much will be disturb the development. In addition to it. Make sure the project run smoothly also can enhance by training, and also their opinion can be help us to develop other IT project in future. So, user s comment also need to take. But it is not regularly. On the other hand, communication with supplies is very important . Reference and Bibliographies: NCC Managing Business Projects. ( International Advanced Diploma in Computer Studies ) 2008 Syllabus . Gofton, L. ( 1997 ). Business Market Research. London, Kogan page . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . Total word count of this assignment : About 4200 words . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .

Comparing Beowulf and Gilgamesh :: comparison compare contrast essays

A Comparison of Beowulf and Gilgamesh       There are many differences and critical comparisons that can be drawn between the epics of Beowulf and Gilgamesh.   Both are historical poems which shape their respected culture and both have major social, cultural, and political impacts on the development of western civilization literature and writing.   Before any analysis is made, it is vital that some kind of a foundation be established so that a further, in-depth   exploration of the complex nature of both narratives can be accomplished.      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The epic of Gilgamesh is an important Middle Eastern literary work, written in cuneiform on 12 clay tablets about 2000 BC. This heroic poem is named for its hero, Gilgamesh, a tyrannical Babylonian king who ruled the city of Uruk, known in the Bible as Erech (now Warka, Iraq). According to the myth, the gods respond to the prayers of the oppressed citizenry of Uruk and send a wild, brutish man, Enkidu, to challenge Gilgamesh to a wrestling match. When the contest ends with neither as a clear victor, Gilgamesh and Enkidu become close friends. They journey together and share many adventures. Accounts of their heroism and bravery in slaying dangerous beasts spread to many lands.      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   When the two travelers return to Uruk, Ishtar (guardian deity of the city) proclaims her love for the heroic Gilgamesh. When he rejects her, she sends the Bull of Heaven to destroy the city. Gilgamesh and Enkidu kill the bull, and, as punishment for his participation, the gods doom Enkidu to die. After Enkidu's death, Gilgamesh seeks out the wise man Utnapishtim to learn the secret of immortality. The sage recounts to Gilgamesh a story of a great flood (the details of which are so remarkably similar to later biblical accounts of the flood that scholars have taken great interest in this story). After much hesitation, Utnapishtim reveals to Gilgamesh that a plant bestowing eternal youth is in the sea. Gilgamesh dives into the water and finds the plant but later loses it to a serpent and, disconsolate, returns to Uruk to end his days.      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   This saga was widely studied and translated in ancient times. Biblical writers appear to have modeled their account of the friendship of David and

Animal Farm: Importance of the Seven Commandments Essay -- George Orwe

Animal Farm: Seven Commandments Without law and order, it is nearly proven that civilization will fail. Because of this, Snowball saw it necessary to create a set of rules for the animals on the newly evolving farm, so came about the 7 Commandments. Unfortunately, but undoubtedly in the pigs’ advantage, most of the other animals did not know how to read or write. Because of this the other members of the farm had to bestow their trust and goodwill in the more educated of the animals. Little did they know that their innocence and their devotion to the farm as a whole would in the end lead to their demise. â€Å"The birds did not understand Snowball’s long words, but they accepted his explanation, and all the humbler animals set to work to learn the new maxim by heart. â€Å" As the story of Animal Farm progresses, the pigs take a leading role and find themselves hungry for power and suffering from a chronic case of ruthless greed. In due time, the once staple and communal 7 Commandments start to change to ‘accommodate’ the selfishness of the pigs, most prominently Napoleon. Shall we say Napoleon has a bit of a complex? Although all of the commandments originally acted as a bible, their importance is gone now and they have been modified to allow the pigs to be heartless in their ways. Three of these commandments jump out as to being the most important of the bunch. â€Å"Whatever goes upon two legs is an enemy.† This commandment is crucial in demonstrating the betrayal that the other farm animals experienced. This commandment it basically making the point that the animals are good and the humans are evil. In the end, the pigs did what they said they would never do, follow in the evil footsteps of the humans. As the changes on t... ...s and the story has come full circle. Unfortunately this is not uncommon in history. Once one person or group is given a small privilege, the power hunger is inevitable. Political corruption is defined as the use of governmental powers by government officials for illegitimate private gain. By completely altering and depleting the once almost sacred 7 Commandments, the pigs (Napoleon) have done a spotless job of creating and leading a politically corrupt society. The justice of all of the hardworking, devoted animals on the farm has been obstructed. In this case, the law and order of Animal Farm has been changed to the pig’s advantage and tragically, the other animals are oblivious to the fact until it’s too late. â€Å"The creatures outside looked from pig to man, and from man to pig, and from pig to man again, but already it was impossible to saw which was which.†