What Is a Franchise? Essay -- essays research papers

What Is a Franchise? Franchising is a form of business in which the owner, or franchiser, gives license to distribute products, services or methods of business to affiliated dealers, franchisees. In many cases franchisees are given exclusive access to a particular geographical area. The franchiser usually mandates uniform symbols, trademarks and standardized services. Thirty years ago franchising was a revolutionary new technology - a new and better way - a new and better way to retail goods, food products and services to the consumers. How was it greeted? The media called it a scam. Headlines were everywhere about how some little old lady lost her life savings to some flim flam franchise. Major fortune 500 companies were getting involved in franchising but these companies insisted that their names not be used in ads or magazine stories. Today franchising has turned into an $800 billion a year business. Experts estimate that today as much as one third of the goods and services in the U.S. are moved through franchising. It's hard to believe but franchising actually came within 11 votes of being outlawed by Congress of the United Sates of America. Essentially a franchise provides a tested formula for starting a business that has worked for others. It can save you from making costly errors, shorten your learning curve and help you make a profit more quickly. However, start-up costs are high and you are required to follow the company's specific procedures. The average f...

A Philippine Hero

†¦ I. for my part, have done everything possible to avoid it, although at the cost of many rights uselessly sacrificed†¦ My government can not remain indifferent in view of [the] violent and aggressive seizure of its territory by a nation which has arrogated to itself the title champion of oppressed nations. Thus†¦ my government is disposed to open hostilities [if America attacks the Visayas]. Upon their heads be all the blood which may be shed. Emilio Aguinaldo Proclamation, Malolos, January 5, 1899 In Larry Henares' program, some of the panelists -staunch admirers of Aguinaldo- expressed the oft-repeated view that the general failed to achieve greatness in the eyes of Filipinos simply because he lived too long. He didn't die young, in the flower of youth, like Jacinto, or in some twilight of the gods manner, like Bonifacio. He wasn't martyred, like Rizal, and he didn't die, penurious and neglected, like Mabini. He simply lived on, and on, until he became something like an antiquated relict fit for gawking at, but not for reverence. Poor, unheralded man. No one ever made it clear if anyone asked Aguinaldo if that's what he felt. I would think that Aguinaldo was exceedingly fortunate to have lived so long. He outlived many of his friends, but he also outlived all of his enemies. He was reviled during his lifetime -in some cases, because he involved himself in politics and thus made himself fair game- but he lived to see independence day moved to June 12. Isn't having lived long enough to be told of that change an exquisite achievement? And throughout his life, he had the loyalty and devotion of the those who belonged to the League of the Veterans of the Revolution. The things held against him, the sordid Tejeros Convention -one professor of history has pointed out that there were more votes cast than there were actually people to cast them- which led to the eventual execution of Bonifacio, and the assassination of Gen. Antonio Luna which was a great blow to the military viability of the forces of the Republic, may forever bar him from reaching the same exalted place in the affections of the Filipino people. They will always haunt him. But they do not, I think, diminish his greatness at all. The power struggle -a naked coup d'‚tat, some have called it- that led to Bonifacio's downfall does make for sickening reading. And his execution was a poor end for a patriot. But is such indignation over this, warranted? Do people get upset over this because, in reality, they are applying quasi-religious morality to a subject that should be divorced from it? Why should standards befitting religious sainthood be applied to secular heroism? Must you be â€Å"good† (in the way people like Fr. Nudas would define it) to be a hero? A hero for a secular country? When Bonifacio's competence to hold the portfolio of the department of the Interior was questioned by Daniel Tirona, the Supremo, indignant, demanded a retraction. He failed to get it. Furious, he declared the proceedings null and void, and left. NCC Chairman Laurel recounted with pride on Henares' program how his grandfather, Sotero, head of the Batangas delegation at Tejeros, and a Bonifacio supporter, reacted to the uproar that followed. He called for lambanog. He drank, pulled out his gun, and put it on the table. He demanded that, as they had all agreed to earlier, the decision of the majority be respected. Otherwise, mag ubusan na tayo. The majority sided with Aguinaldo. Bonifacio (or, depending on how you see it, Aguinaldo) had thrown down the gauntlet. As Sotero Laurel might have put it then, matira ang matibay. Aguinaldo won, obviously. The thing is, in a revolutionary situation, extreme situations call for extreme measures. You can't dilly-dally and sort things out and massage egos while the enemy tries to kill you all . Every revolution everywhere has been marred with competing factions, many of whom act out of less-than-noble motives. In the end, one group must prevail, one destiny achieved. The Revolution, for good or ill, had its destiny tied to Aguinaldo. While the movement (as Mabini saw it) faltered as a result of the Supremo's liquidation, it made it through. It was suspended after biak-na-bato, resumed again, and gave birth to the proclamation made from a window of a house in Kawit on June 12. The proclamation of the Philippines as a free country. The Republic did not prosper. Was it Aguinaldo's fault? The fault of the Ilustrados? Did it fail because of competing views and interests within it, divisions that exist to this day in our country and in other countries with similar histories? Left to ourselves, they had as good a chance of eventually working them out as any other people on earth. But they weren't left alone. They were subdued with krag rifles and American tactics. Laudably, the Centennial Commission has made it clear that it is the proclamation and not the substance of independence that will be commemorated in 1998. A proclamation whose aspirations have endured. As have its symbols: our flag, our anthem. Aspirations we strove to fulfill in 1946, aspirations every generation tries to fulfill up to the present. Aguinaldo was responsible for that declaration, that flag, that anthem. He gave the nation vessels to contain its soul. We should be able to forgive him for being a flawed man and a poor politician. Again and again, our pantheon of heroes has been besieged by angry mobs, intent on pulling down -or raising up high above the others- the statues of great Filipinos. We, who should, as befits a supposedly democratic and liberal state, find nothing wrong or ignoble in having our heroes stand side-by-side, remain obsessed with establishing heroic hierarchies, as though the leaders we revere were petty princelings subject to Byzantine rules of precedence. Are we a people unworthy of heroes in the first place?

Mother’s Day

In most countries, Mother's Day is a recent observance derived from the holiday as it has evolved in America. When it was adopted by other countries and cultures, it was given different meanings, associated to different events (religious, historical or legendary), and celebrated in a different date or dates. Some countries already had existing celebrations honoring motherhood, and their celebrations have adopted several external characteristics from the US holiday, like giving carnations and other presents to your own mother. The extent of the celebrations varies greatly. In some countries, it is potentially offensive to one's mother not to mark Mother's Day. In others, it is a little-known festival celebrated mainly by immigrants, or covered by the media as a taste of foreign culture (compare the celebrations of Diwali in the UK and the United States). n the Roman-Catholic Church, the holiday is strongly associated with reverencing the Virgin Mary. [25] In many catholic homes, families have a special shrine devoted to the Blessed Virgin Mary. In many Eastern Catholic and Eastern Orthodox Churches, a special prayer service is held in honor of the Theotokos Virgin Mary. In Hindu tradition it is called â€Å"Mata Tirtha Aunshi† or â€Å"Mother Pilgrimage fortnight†, and it is celebrated in countries with Hindu population, especially in Nepal. It is celebrated on the new moon day in the month of Baisakh i. e. April/May. This holiday is based in Hindu religion and it pre-dates the creation of the Western-inspired holiday by at least a few centuries. [citation needed] Some Islamic scholars have published fatwas against dedicating a single day to honor mothers, which detracts from honoring them year round as ordered by the Quran. Mother’s Day In most countries, Mother's Day is a recent observance derived from the holiday as it has evolved in America. When it was adopted by other countries and cultures, it was given different meanings, associated to different events (religious, historical or legendary), and celebrated in a different date or dates. Some countries already had existing celebrations honoring motherhood, and their celebrations have adopted several external characteristics from the US holiday, like giving carnations and other presents to your own mother. The extent of the celebrations varies greatly. In some countries, it is potentially offensive to one's mother not to mark Mother's Day. In others, it is a little-known festival celebrated mainly by immigrants, or covered by the media as a taste of foreign culture (compare the celebrations of Diwali in the UK and the United States). n the Roman-Catholic Church, the holiday is strongly associated with reverencing the Virgin Mary. [25] In many catholic homes, families have a special shrine devoted to the Blessed Virgin Mary. In many Eastern Catholic and Eastern Orthodox Churches, a special prayer service is held in honor of the Theotokos Virgin Mary. In Hindu tradition it is called â€Å"Mata Tirtha Aunshi† or â€Å"Mother Pilgrimage fortnight†, and it is celebrated in countries with Hindu population, especially in Nepal. It is celebrated on the new moon day in the month of Baisakh i. e. April/May. This holiday is based in Hindu religion and it pre-dates the creation of the Western-inspired holiday by at least a few centuries. [citation needed] Some Islamic scholars have published fatwas against dedicating a single day to honor mothers, which detracts from honoring them year round as ordered by the Quran.

Organizational structure of the business Essay

Businesses can take different approaches on the way they structure the organization of their business. The different types of structures include flat, matrix, and tall. These represent hierarchical, centralized and decentralized forms of organization. These different structures are used in different types of organization relating to the needs the business may require. In a tall structure there are many levels. People of different status within the business take each level. This is hierarchical. As the levels get higher in the structure, the power and responsibility usually increases. In a tall structured organization there would the top layer of the structure but many at the bottom represent few people. This structure would be used in a large business where there would be many members of staff, many groups under different supervision. This form of organization would cause there to be a lack of communication throughout the business as issues would be passed through the levels, supervisors to managers and may never reach the managing director. Elements like this in a tall structure could lead to a lack of control throughout the business. Flat is another style of organizational structure. This is still of a hierarchical form yet there is less layers in the business. This is more of a democratic approach as there is a smaller span of control throughout the organization. As there is less levels in the structure there is less separate sections of power. The reduction in the amount of layers means that communication throughout the business is greatly improved therefore the managing director has a greater level of control over the business as a whole. This would be used in a smaller business. It would consist of a managing director followed by possibly a number of directors then supervisors then staff in a hierarchical fashion. A matrix approach can also be used. This is constructed by the business itself. It can be a democratic, autocratic or lassiez-faire approach or a mixture of the three. Very large businesses, PLC or LTD’s use this. As the business is so large a tall matrix would not be appropriate as there would be a lack of interaction and control of the business would not be great. To prevent this happening, Boots designed a structure of its own. These are known as matrix structures. Each level has independent managers and spans of control that do not lead up or down the hierarchy of the business. Each level has independent managers and line supervisors so they are self-contained. The local span of control is the responsibility of the line manager. To keep communication strong within the business there is a strong chain of command throughout the structure. This ensures that any problems; ideas or achievement are known throughout the business. This approach keeps communication and control strong, as although there are a great number of people within the structure it is easy to find out what is happening at present through the chain of commanding supervisors who are responsible at that level. The different sections of the business that are present within the matrix are   Boots the Chemist Wellbeing services   Supply and support services   Boots Healthcare international Each of these sections (levels) of the business has line managers and supervisors. These communicate through the chain of command through out the business. This gives a firm structure of a high level of control and interaction, which is within the best interests of the smooth running of the business. The diagram below shows the set out of the business and how the different sections relate to each other. Within these sections the directing and supervisory structure is set out like this throughout the business This is Richard Baker; he is the chief executive of Boots PLC. He does not work in a store but control along with Howard Dodd Paul Bateman the running nationwide of the Boots Empire. They have control over every structure in every store throughout the country from managers to floor workers however it is rare they interact with any one but senior staff in the department stores. Boots to maximize the benefits created the matrix structure. This shows that they have taken their own approach upon their business and changed with the times. Using a matrix structure as the business expanded to the size it is now has proved beneficial and reaches an objective. Boots aimed to Develop, modernize technology and strategies. Using the matrix structure has been a form of modernizing therefore reaching a set objective. Boots aim of globalization would need to lead from a base of a stable market in the UK business sector. To gain a stable grasp in the UK economy Boots needs a stable business. The matrix structure consisting of effective interaction through out the levels and a hold on control ensures that the business runs smoothly and is stable in doing so. This reaches the objective of taking a strong hold in the UK business field, which can lead, to greater expansion and globalization. Companies can survive at a steady pace without altering too much about the workings of the business. However to expand, as Boots wish to, some of the most beneficial ideas may come from staff low down in the hierarchical structure. It is for this reason that the matrix structure is extremely beneficial as communication and interaction is strong between the levels so ideas can quickly be picked up on along with problems. This benefits the performance of the business and issues are quickly picked up on. This also contributes to the working towards of the objective relevant to expansion and customer loyalty as both business and custom seek to gain return from the matrix structures benefits and overall performance of the business as a whole. The matrix structure has many advantages that would not be applicable if the organization structure was of another form. The chain of command within the business ensures that the communication within the different groups is regular and effective. Within the boots organization there are many different sections that deal with different aspects of the business. The seven sections within the Boots group deal with their specific part of the business whether it is the chemist, retail or health care. The specialization within the business is a great advantage to all concerned. The staff employed in each of the sections are special trained in that area. Specialization is a great advantage to the business as it means that jobs can be carried out informatively and effectively. As staff is specialized in their area they provide great customer service as they are well educated in the fields in which they work. Empowerment enables the staff within the different sections to have freedom to do tasks that they are delegated without supervisions. This increases moral and self-motivation, as the staff feels confident and independent within the business. High motivation increases staff productivity, which improves the performance of the business. The span of control within the individual areas of the business ensures that the business is smooth running and any problems that occur can be dealt with quickly and efficiently. This is an advantage, as problems do not have to travel into other areas of the business through the chain of command. The separate sections of the business are independent in the way they work. This ensures the business has high levels of control throughout the whole business in all sections and all can be accessed quickly through the chain of command. All these are advantages that help a great deal towards improving the performance of the business for the reasons listed. Communication within Boots There are many different types of communication that businesses can adopt. Different forms of communication are used in different situations within a business. The main types of communication that are used now a day revolve around ICT. ICT stands for Information Communication Technology. Communication is used everyday from the second a business opens in the morning till the second that it closes. With out communication a business would never reach its full potential or have the smooth operations it could achieve. Within a large business, like a PLC or LTD like boots communication is essential. Without communication different sections of the business would not operate well together and issues could quickly fall out of hand. Communication through the chain of command is so important in keeping a business afloat and operating efficiently. Good communication ensures that the business keeps control and the top of the hierarchical structure is aware, or can easily find out the major movements from day to day. Between departments and hierarchical levels communication links must be strong as decisions and movements are often made that effect other departments. There are many different types of communication method. The specific sectors include   Written   Non-verbal. Verbal   Electronic Face to face Each of these has specific areas in which it is of most benefit to use. Different types of communication are used dependant on the issue that is relevant, who is sending it, and who is receiving it. It is important that communication towards employees is regular and efficient. This is because employees need to be kept informed of the movement of the business in all aspects. If there is product alterations or price changes employees must be informed straight away so that no problems occur within the business. Also information about extra shifts, overtime, work hours and bonuses, especially over Christmas are very important in the smooth operation and motivation of the staff. Supervisors and managers are usually the ones who would communicate with the staff. There are many methods that could be used. Employees could be informed and communicated with by the use of notice boards. This is a cheap method, which means that everyone can see the information present. This is a good method if everyone is aware there is a notice to be seen. This could easily be ignored or not notice quickly however. Letters with the employees pay slips are a good method to use, as it is likely that a very high majority of the employees will read them. This is good if it can wait till payday for the notice to go out although still staff may not read them. A team meeting at the beginning of the day is a very efficient way of communicating with staff as issues can be raised and the employees can communicate also. This means that everyone can be informed and there are no excuses why staff ignores issues raised. Employees who have computers (not floor workers) such as administration areas and HRM can be communicated with many more forms of modern communication such as email and uses of the Intranet. Managers and supervisors need to be able to receive communication from higher up in the chain of command and also to be able to distribute down the chain. This is very important. Higher levels in the hierarchical structure need to be able to communicate regularly and efficiently in order to hold a strong level of control over the business and make alterations and give advice where necessary. It is very important this area of the business is easy to communicate with so that no time is wasted in trying to do so. Managers in the Boots organization have offices in individual branches and headquarters; some supervisors also have computer access. This enables Boots to provide computers for the staff that is a great benefit when it comes to communication. The use of computers means that these managers can be easily and quickly communicated with via the use of email, Intranet messaging and time tabled events that may be stored and altered on network software that is specific to the Boots store. Different forms of communication are used in different parts of the business depending on different factors. These factors determine the form of communication and approach taken. These are described below.   Formal   Informal   Important   Urgent   Optional   Open to all   Sent to a specific person   Person   Impersonal   Relaxed   Who its aimed towards   Who its from Confidential This all affect what type of communication are used in different situations within the business. The different categories that the forms of communication fall into are know as the channels of communication.

Future Criminology Essay

The advancements in technology have lead law enforcement officers to the rescue of an abducted child. Couple of decades ago law enforcement agencies did not have the technical resources such as the amber alert system as they do today. Technology has enables the United States of America to make positive changes in socialization of American citizens. Technology has also assisted the United States in preventing domestic terrorism. Law enforcement agencies have spent billions of dollars on technical logical equipment to aid in the defense of the country. Law enforcement agencies place heavy emphasis on advancing communication. As law enforcement officials try to improve communication through technology, criminals are advancing in cybercrimes. Many identity thefts are committed to the internet; scammers employ phishing techniques to gather personal information from people rather than criminals who rob mail boxes in order to gather personal information. As technology advances criminals adapt as well. This paper will display the positive aspect of future crime fighting as well as highlight the negative aspects. The direction of crime fighting has already been displayed by law enforcement agencies who are currently utilizing advanced technology. Law enforcement agencies have shifted focus on to social networks that have no limitations. Cybercrime has become very common in the American culture. In modern everyday life people utilize some source of technical logical communication device, which leaves the door open to advanced criminals. Cybercriminals posses the abilities to disassemble someone’s life, through personal information stored on communication devices. Cyber criminals usually search for social security numbers, names, birthdays, bank account numbers, and pin numbers. The perceptions of cybercrimes are considered to be an evolution of combined advancements in technology as well as identity theft, which has spread throug hout the world. Cybercrime victimizers’, target people who are less knowledgeable to the advancements of technology. Before the internet was created identity theft was as simple as stealing personal mail, and rummaging through trash cans. Cybercrime enables advanced criminals to make a fast profit with less chances of being caught. Computer  hackers have the ability to hack prohibited information such as bank servers, with the overall goal of achieving large amounts of money. Online scams such as phishing for personal information have become the trend among advancing criminals. Cybercriminals are typically known for thievery of personal data while trying to achieve a financial gain. Cybercriminals have designed websites that appear to be legitimate, but actually is quite the opposite. Cybercriminals have been gathering personal information through fake server windows with surveys, or something that would require all your personal information. According to National Crime Prevention, â€Å"An information broker, Choicepoint Inc., announced that an identity thief had hacked into their database and gained access to hundreds of thousands of documents. Some stolen information included full names, social security numbers, home addresses and credit reports (NCP, 2011).† A key to fighting off these advanced online crimes is awareness. One must be aware that the Internet is a powerful instrument and is used in many unscrupulous ways. Police agents currently devote an entire unit toward dealing with cybercrime. Private Citizens must also be proactive when dealing with their identity. For example, be aware of illegitimate companies, which wait for someone to provide his or her personal information. It is always a good idea to install security on computers that scan for hackers and other odd activity. Most important, be cautious when providing personal information to anyone on the Internet. The world we live in evolved to the point that we cannot assume an individual is trustworthy. That may be a sad reality, but taken very seriously. Cyber-criminals and their actions will certainly create social policy implications. For example, crime fighting may soon resemble that of a movie production. Crimes altogether become more technologically advanced, while cyb er-crimes begin to resemble crimes from a sci-fi atmosphere. According to Reyes, a team of researchers from Santa Clara University are developing predictive policing software (Reyes, 2011). Essentially, the high-tech software design is used to stop crime before it occurs. The high-tech software allows advancement and the upper hand on the criminal. The software also allows law enforcement to pinpoint a precise area where speculated crimes may occur. The crime is isolated or completely stopped before the damage begins. The software updates daily and provides current data, allowing police forces to position themselves before any  illegal activity begins. This may sound like an innovative tool that brings only a positive element, however, are these tools a way to cyber-profile individuals and allow law enforcement to make illogical assumptions based on probability? One must be aware that individuals are innocent until proven guilty, not innocent unless they meet a mathematical formula. The advancement in specific crime fighting methods is vital to the changing methods of criminal activity. Criminals are always looking for a ways to benefit themselves, so law enforcement agencies must shift to advance policing in order to stay a step ahead of criminal offenders. Deoxyribonucleic acid (DNA) is a genetic material of a cell’s nucleus, which is a collection program that has become a great precision tool for law enforcement agencies to identify an alleged perpetrator or an alleged victim. The use of the DNA database is well known by society, because of the popular television shows such as Crime Scene Investigators (CSI), and Naval Criminal Investigative Service (NCIS), which have provided society with examples as to how the DNA data base is utilized. The DNA data base is simply a tool to identify alleged criminals and or victims. According to forensic specialist, â€Å"The database may include profiles of suspects awaiting trial, people arrested, convicted offenders and identifying unknown remains and even members of law enforcement (Schmalleger, 2012)†. Biometrics is the science of analyzing biological data such as fingerprints, DNA, voice pattern recognition, retina scans and facial recognition programs for the purpose of human identification. It is quickly becoming the most accurate means to identify individuals. A typical biometric scanner consists of a scanning device, software that puts the scanned info into digital form and compares it against a database (NPR, 2013). Biometrics started back in China in the 14th century. They used ink to stamp young children’s palms and footprints on paper for identification purposes. In most of the world until the late 19th century, identifying a person relied upon a person’s memory or the use of crude drawings. In about 1890 a system was used that relied on certain body measurements to identify criminals. This did not work very well as it was discovered that it was not uncommon for several persons to have the same measurements. This system was replaced by Richard Edward Henry of Scotland Yard, whose fingerprint system provided a very accurate method of identification (Schmallager, 2012). The next generation of smart phones from  the Apple Corporation has a new operating system that moves biometric science into the consumer market. This new system uses a fingerprint scan technology to allow only the authorized user to operate it. Nowadays consumer’s whole lives are contained on phones including personal information, financial and credit information and addresses. Apple purchased a high-tech company named Authentec which specializes in fingerprint technology to develop this technology. This technology along with iris scan programs will surely have great impact on law enforcement agencies such as: who has access to sensitive areas, safes, thumb drives or documents. This may lead to limiting access to firearms and maybe even who can fire a specific weapon (CBC News, 2013). Another new biometric technology that is being used in stores is facial recognition programs. Some upscale stores use these to recognize wealthy or famous customers as they enter a store and relay this to store employees. This program recognizes a specific person entering a store and compares it against a database of celebrities, sports stars and wealthy customers. It also gives the buying histories, clothing sizes and potential new products they may want to the sales persons. This program is strictly voluntary by most stores as the potential VIP customers want to save time or just be pampered. New technology allows two dimensional images to be converted to three dimensional that can make almost foolproof identifications. This technology is being used by agencies in several cities in various ways to passively monitor the public for wanted individuals. Law enforcement has adopted these methods for their own use. It appears that in some cases they are letting the private sector enginee r these technologies then apply them for their own use (CBC News, 2013). Law enforcement needs to stay ahead of these new biometric technologies as criminals are now working on ways to defeat some of these technologies. One way criminals use to obtain a person’s fingerprints is off of a glass surface to gain access to computers or other fingerprint access systems. Another one is creative ways to disguise your face from facial recognition programs (CBC News, 2013). Computer crimes have risen dramatically in recent years. These are usually referred to as cybercrime. Spyware is most often used to gain access to information contained on a computer or computer system. Spyware is defined as software that sends information from a computer to a third party without consent of  the owner that is unwanted, uninvited or annoying. This can come with free software, file sharing applications or even games. Just visiting certain websites, also called drive-by, can install this software without your knowledge. Spyware is designed to find out what a person prefers buys and what they search for on the internet and allow its authors to make money from this information or possibly gain sensitive data from law enforcement or military computers (CBC News, 2013). The Computer Fraud and Abuse Act of 1986 and amended in the 2002 Patriot Act define computer espionage, trespassing and stealing information. These acts say it is a crime to knowingly counterfeit a device that allows unauthorized access to computer or telecommunication system, receive payments from persons with the intent to commit fraud or using illegally obtained credit card numbers (CBC, 2013). The Department of Homeland Security is working on new programs and having success in countermeasures for cybercrimes. In 2011 they prevented $1.5 billion in business losses and made 72 arrests for people involved in sexual abuse of children on the internet. Police agencies have been reluctant in the past to combat cybercrime as it is expensive and time consuming to investigate but some are now getting involved in identity theft, child molesting using the internet to gain access to children and credit card fraud (DHS, 2013). Mandatory DNA collection programs exist in all 50 states in one form or another. Most have laws mandating DNA collection for certain felony convictions and some for juvenile arrests. Some even allow collections prior to convictions as in California. California is being challenged in court by lawsuits by the ACLU. They feel that innocent persons are being forced to provide DNA samples. There is a DNA database called CODIS where agencies can browse data to identify suspects in crimes. This system allows agencies to positively identify or eliminate suspects (Legal Match, 2013). Unfortunately, the reason that law enforcement evolves is often due to an unforeseen tragedy. For example, after the 9/11 tragedy the â€Å"Homeland Security Advisory System† was introduced. It was a color-coded system that communicated a â€Å"terrorist threat level to federal and local agencies and throughout communities. The system was introduced in 2002 by Security Chief Tom Ridge (Reclaim Democracy, 2011). As is often the case when such controversial initiatives are brought forth, mixed views are common. Every U.S. citizen maintained a heightened sense of awareness and  fear in regard to terrorism. In that sense, this initiative allowed for both federal and local agencies to work together toward their goal of eliminating terrorist threats, and allowed a roadmap for daily operations. Threat levels were assigned to each suspect and federal agencies would act depending upon the level of the individual threat by implementing protective measures. Obviously, advocates of this plan argue that it leads to a safer environment because security agencies are adequately inf ormed. However, one must also consider if these measures protect citizens or instill fear in them. One cannot argue that technology and skill levels have not evolved. However, just because the technology and skill exists, does that mean that society is better when they are put into action? One could argue that it is arbitrary to label individuals based on a color code, what does it take for them to move to the next category? One must also be advised that the individuals in charge of determining the color coding system may have had their own political agenda. For example, raising the terror threat level to extreme on the one-year anniversary of 9/11 may have been necessary, but may have been a political move to gain confidence of the public? Some critics argue the system drummed up support for wars and additional federal powers. As security technology continues to evolve one document must not be overlooked, The Security Enhancement Act. While the document design was to improve homeland security and provide comfort to the citizenry, its consequences raise many questions. The act revoked portions of the Freedom of Information Act: in which society posses the right to achieve information pertaining to a friend or family member who is detained by the federal government for any action that can be considered to be terrorism. The American government can mandate whether or not they think citizens deserve information. Also, an individual could lose their citizenship upon â€Å"participating in or providing material support to a terrorist† (Reclaim Democracy, 2011). A vital element of this act is that it would allow the government to force citizens to submit to DNA samples if they are a suspected terrorist. Evolving technology provides a wealth of knowledge and understanding in regard to halting criminal activity. It provides methods that allow for quick response and action and can lead to a safer environment for people. However, one must consider the difference between technological advances and invasion of privacy. There is little doubt that getting a mouth swab for a DNA sample is  an effective method but it is certainly not perfect. It would be foolish not to consider that many DNA samples taint easily by not following procedures. This must be considered because imperfect humans are collecting the data. Also, because of the large amount of samples tested, at what point does the sample become outdated and need resubmission. If an individual submitted to an initial test, is it constitutional or ethical to mandate that they retest? There are constitutional amendments that are discussed and not disregarded because our nation suffered a tragedy. That tragedy must not be forgotten, but it is ill-advised to use one event as a predictor of all future events. That is why law enforcement must be careful when they seek to predict crime before it occurs. If the crime does not occur taxpayer funds go to waste. There is a fine line between protecting society and intruding upon its citizens. There must be awareness that while technology has advanced and aided society, the tests are still administered by humans who may serve his or her own needs over that of society. No matter how far individuals evolve technologically, society must proceed with caution because society may never be able to measure the intent of those operating the equipment. Evolving technology advancements and the future of crime fighting does not come without a fight. There are many individuals who question the intent of ethics of using proactive crime fighting methods. For instance, some individuals may feel that their rights are violated with the use of DNA, the government having access to personal information, and wide databases of information that have the chance of being hacked. It is not the intent of the government to have technology used against society; however, it is possible. Different groups and organizations claim that the use of advanced technology is just the beginning of a new conspiracy act. It is not only the concerned citizens of the United States who struggle with the openness of private information but also international groups as well as policy makers. It is thought that as technology advances policymakers will have to go the extra step to be proactive in the different inventions and programs to cheat or confuse technological advancements. According to Schmalleger (2012) â€Å"Opposing ideological lines have divided our efforts to develop comprehensive anticrime programs. Deep fissures in our social fabric have contributed to conflicting attitudes about crime and its control.† Countries that pride themselves in advanced technology, feared by other  nations. Just as the Bush administrations proved, technological warfare is on the bri nk of mass destructive devices (National Crime Prevention Council, 2012). While many individuals use technology as a way to prevent crime, some countries may ultimately use technology for total destruction. Whether society is fighting cybercrimes, using technology to fight future crimes, using technological advancements to predict crime, or allowing technology to lead the efforts of policymakers, technology has proved to be an advancement that does not come without deficits. Technology can make or break a country, but it can also divide nations and leave room for doubt. As technology advances, the prevention of crimes must also advance. It is not enough to assume that technological programs and breakthroughs will be enough to control crime. Crime control taken seriously and proactive steps taken to keep each breakthrough safe and ethical will wreak many benefits. In conclusion, law enforcement agencies are pointing in the positive direction for combating future crimes. The advancement of technological equipment in law enforcement is designed to enhance communication in aspects of imagery, and audio. Law enforcement agencies are already utilizing advanced imagery to resurrect a crime scene. The resurrection of a crime scene could possibly yield elaborate information leading to the apprehension of the offender. The overall perception in law enforcement will continue to be the same philosophy to apprehend alleged criminals. Technology aids local law enforcement officials in community policing, with surveillance placed in social common areas in aspiration to deter crime; too also act as a witness to committed crimes in the radius view of the camera. Law enforcement agencies will continue to strive for improvements in combat ing crime. References CBC News, (2013). New Apple Iphone Pushes Biometrics into the Mainstream. Retrieved from: http://www.cbc.ca/news/technology/new-apple-iphone-pushes-biometrics-into-the-mainstream-1.1702041 Department of Homeland Security, (2013). Combating Cyber-Crime. Retrieved from: http://www.dhs.gov/combat-cyber-crime Legal Match, (2013). Mandatory DNA Sampling. Retrieved from: http://www.legalmatch.com/law-library/article/mandatory-dna-sampling-in-a-cri

Project Report on Dabur Company Essay

Declaration By Candidate I wish to state that the work embodied in this project titled â€Å"Financial Modeling Of Dabur† forms my own contribution to management carried out at Vivekanand Education Society’s Institute Of Management Studies & Research Chembur, Mumbaiunder the guidance of Mr.DheerajVaidya, Director, Corporate Bridge Consultancy Pvt. Ltd. Wherever references have been made to intellectual properties of any individuals/ institute/ government/ private/ public bodies/ universities, research paper, text books, reference books, archives of newspapers, corporate, individuals, and any other source of intellectual properties viz., speeches, quotations, conference proceedings, extracts from the websites etc they have been clearly indicated, duly acknowledged and included in the Bibliography. Signature of the candidate Acknowledgment I would like to express my profound gratitude to all those who have been instrumental in the preparation of my project report. On the onset, I would like to thank the organization â€Å"Corporate Bridge Consultancy Pvt.Ltd.† for providing me the opportunity to undertake this summer internship and allowing me to explore the area of valuation and financial modeling, which was totally new for me and which would prove out to be very beneficial in my future assignments, studies and career. I wish to place on records, my deep sense of gratitude for my project guide, Mr.DheerajVaidya, director of corporate bridge consultancy pvt. Ltd. for continuous guidance and encouragement provided to me throughout my internship period. Table Of Contents SR. NO.| CONTENTS| PAGE NO.| 1| Executive Summary| | 2| About Corporate Bridge | | 3| Objective Of Study| | 4| | | 5| Industry Profile| | 6| Company Profile | | | Introduction Of Financial Modeling| | 7| Micro-Economical Factors| | 8| Understanding The Financial Statements | | 9| Research Methodology| | 10| Observations| | 11| Suggestions| | 12| Conclusion| | 13| Appendix| | 14| Bibliography| | 15| | | 16| | | 17| | | 18| | | 19| | | 20| | | | | | | | | | | | | | | | | | EXECUTIVE SUMMARY Indian economy is the fastest growing economy in the world. Indian companies are growing at faster rate in terms of revenue, expansion and global existence. Due to significant growth shareholders are benefitted by good dividend and return on investments in share market. In the last decade equity has given the best return and still the growth phase is continued. But retail investor has also lost his hard earned money due to lack of knowledge and awareness of the equity market. Without knowledge in equity market and trading on tips it become gambling instead of smart investment. Here the role of financial modeling and valuation of securities begins to find out the intrinsic value of the stock, whether it is overvalued or undervalued. Based on the research findings equity analyst recommends whether to buy, sell or hold the stock. In this report I have explained Financial Modeling of Dabur Company. This report begins with the understanding the present micro and macro-economic condition and how they affect the growth of the country. It discusses the present economic indicators and expected growth of India and FMCG industry in the future. The report further analyse financial statements of the Dabur Company. By using historical data and making some assumptions, calculations future earnings are forecasted. After that using DCF valuation we find out intrinsic value and Relative valuation used to compare Dabur with his peers. Hence, this report is an attempt to comprehensively study of Financial Modeling And Valuation Of Dabur Company. About Corporate Bridge Corporate Bridge Group is formed by graduates from leading institutes (IITs, IIMs & AIM). â€Å"Corporate Bridge† as the name suggest, helps in bridging the gap between the aspiring entrant and the corporate world. Corporate Bridge is globally recognized training firm, providing blend of instructor-led and online financial training programs along with e-learning services. With Corporate Bridge’s entrepreneurial spirit coupled with unparalleled experience (CLSA India, KPMG, YES Bank, JPMorgan, SBI Capital Markets, CRISIL etc) and comprehensive capabilities (MBA, CFA, FRM, CAs) across all industries and business functions, we commit to deliver a world class professional training and learning services that continues improving knowledge efficiency. Corporate Bridge Group; has two verticals â€Å"Educorporatebridge† and â€Å"Elearninglabz† *   EduCorporateBridge deals with Online and Instructor Lead Training Programs in various financial courses viz. Equity Research, Wealth Management, Technical Analysis Investment banking, Private Equity, Fundamental Analysis, Investment Research, Credit Research etc and preparatory courses like CFA Level I & II and FRM Level I & II, Campus Placement Trainings Elearninglabz solution portfolio consists of custom e-content development for training and learning needs in collaboration with our clients and subject matter specialist, custom Learning Management System (LMS) suite, Test & Assessment solutions. Industry Overview The Indian FMCG sector is the fourth largest in the Indian economy and has a market size of $13.1 billion. This industry primarily includes the production, distribution and marketing of consumer packaged goods, that is those categories of products which are consumed at regular intervals. The sector is growing at rapid pace with well-established distribution networks and intense competition between the organized and unorganized segments. It has a strong and competitive MNC presence across the entire value chain. The FMCG’s promising market includes middle class and the rural segments of the Indian population, and give brand makers the opportunity to convert them to branded products. It includes food and beverage, personal care, pharmaceuticals, plastic goods, paper and stationery and household products etc. India, Asia’s third largest economy, saw urban consumers spend less in calendar year 2012 due to high inflation, muted salary hikes, and slowing economic growth that affected both real wages and sentiment. During 2012, the overall slowdown in the economy has begun to affect the FMCG sector with companies posting deceleration in volume growth in the recent quarterly results. Discretionary spending has been hit severely due to the ongoing slowdown. The prevailing high inflation level is also a cause of concern for the sector. The trends seen in 2012 are likely to accelerate in 2013. Growth will come from rural dwellers that are expected to see a rise in disposable incomes due to the direct cash transfer scheme, while urban consumers will continue to be affected by the macroeconomic environment. The consumer products industry has been growing at a brisk pace in the past few years backed by robust economic growth and rising rural income. Growth drivers such as premiumization, rapid urbanization, evolving consumer lifestyles and emergence of modern trade have shielded the industry from the slowdown. The consumer products or the Fast Moving Consumer goods (FMCG) sector is valued at Rs 1.6 trillion (Source: Nielsen). The industry is urban-centric with 66% share of the goods being consumed by urban India. Metropolitan cities & small towns (population of 1-10 lakh) have been driving the FMCG consumption in urban India since 2002. In fact middle India, comprising of the small towns and consuming 20% of overall FMCG sales, has been growing the fastest across rural and urban segments. As per Nielsen, the FMCG market size of middle India is set to expand from Rs 287 bn in 2010 to over Rs 4 trillion by 2026. Rural India, where 70% of the population resides but only 34% consume FMCG goods, presents the biggest market potential for the industry. Backed by low unit packs and aggressive distribution reach, rural market size has expanded four times to Rs 564 bn since 2002. Companies such as Hindustan Unilever and Dabur which derive nearly half their sales from rural India have been increasing their reach. FMCG goods are retailed through two primary sales channels – General Trade and Modern Trade. General Trade comprising of the ubiquitous kirana stores is the largest sales channel forming 95% of overall retail sales. However, growth of consumer goods retailed through Modern Trade channel is outpacing the growth of FMCG products in General Trade. Factors such as a comfortable and modern store experience, access to a wide variety of categories and brands under a single roof and compelling value-for-money deals are attracting consumers to organized retail in a big way. But modern trade is still an urban phenomenon with 17 key metros contributing to 73% of overall modern trade in India. Product categories such as packaged rice, liquid toilet soaps, floor cleaners, breakfast cereals, air fresheners & mosquito repellent equipment have a higher penetration in modern trade channel. Despite the relatively recent performance of private label products in India, it is already close to 7% of modern trade sales. Modern Trade is expected to gain greater importance with opening up of foreign direct investment in multi-brand retail. The implementation of the Goods and Services Tax (GST) is expected to benefit the sector immensely by reducing the overall incidence of taxation. GST aims to reduce the cascading effect by replacing a multitude of indirect taxes such as central excise, service tax, VAT and inter-state sales tax with a single GST rate. Moreover, FMCG companies will be able to optimize logistics and distribution costs in the GST era. The resulting cost savings by the companies can be passed on to the final consumer thereby boosting demand. However the implementation of GST has currently been put on the backburner by the government. FMCG Industry size (India) * Of the entire FMCG sector, Food is 52%, Non-Food at 45% and OTC 3% * Growth being driven by increasing consumption led by rise in incomes, changing lifestyles and favourable demographics. * FMCG industry expected  to grow in mid to high teens going ahead. * In the last decade the FMCG sector has grown at an average of 11% a year; in the last five years, annual growth accelerated to 17%. * FMCGs are slowly and gradually positioning and deeply penetrating in the fast growing rural market. The Rural mind set is open to consumption of newer, more contemporary food categories and as a result, drive consistent growth. FMCG industry to be Rs.4000-6000 billion industry by 2020. * Indian rural market currently worth US$ 9 bn is expected to become a US$ 100 bn opportunity by 2025. * By 2025, total consumption is likely to quadruple making India the 5th largest consumer market. * The FMCG sector in India continues on a strong growth path with both urban and rural India contributing to its growth. Rural India contributes one third of FMCG sales in India. * Growth driven by increasing consumption led by rise in incomes, changing lifestyles and favourable demographics. * Rural India accounts for more than 700 Million consumers or 70% of the Indian population andaccounts for 40% of the total FMCG market. * The Rural market is a large market space with very low organized player penetration. Across the globe, the Indian rural market is probably the single largest â€Å"unit† of opportunity also with changing lifestyle and increasing consumer demand, the Indian FMCG market is expected to cross $80 billion by 2026 in towns with population of up to 10 lakhs. * The sector has a tremendous opportunity for growth in India, with the growing population, the rising incomes, education and urbanization, the advent of modern retail, and a consumption driven society. Source: credit suisse * According to credit suisse report, FMCG growth was 14% in the rural market and 16% in the urban market during the quarter ended December 2011; for the quarter ended March 2013, while growth in the urban market improved to 17%, it rose even higher, to 18%, in the rural market. Industry Classification and Performance Three well-identified sets of players operate within a highly developed and intenselycompetitive landscape of the Indian FMCG market. 1. Foreign players who are present through their subsidiaries such as Unilever, P&G, Nestle and PepsiCo 2. Strong Indian players with established national presence such as Marico, Dabur and Godrej Consumer Products. 3. Regional or small domestic players, such as Ajanta, Anchor, CavinKare etc., who are presentin a few regions of the country apart from these, there are regional and small-scale FMCG players such as small teaproducers and organic food producers, who mainly compete by offering low-priced products withsimilar looks or packaging compared to the bigger brands, to the ‘right consumers’ typicallybased in rural areas or in small towns. These players with lower corporate overheads andclear focus on specific consumer requirements have a competitive edge over larger FMCG players. Growth Drivers Government Policies and Regulatory Framework * Investment Approval: Automatic investment approval up to 100 per cent foreign equity forNRI and overseas corporate bodies. These investments are allowed in food processingsegments such as coffee and tea. * FDI in organized retail: India currently allows 100 per cent FDI in Cash & Carry segment and51% in single-brand retail, which is expected to be further increased to 100%. India is also expected to allow 51% FDI in multi-brand retail, which will boost the nascent organized retail market in the country. * Priority Sector: The Government of India recognizes food processing and agro industries aspriority sectors. * Relaxation of license rules: Industrial licenses are not required for almost all food and agro-processing industries, barring certain items such as beer, potable alcohol and wines, cane sugar, and hydrogenated animal fats and oils as well as items reserved for exclusive manufacturing in the small-scale sector. * Statutory Minimum Price: In October 2009, the government amended the Sugarcane ControlOrder, 1966, and replaced the Statutory Minimum Price (SMP) of  sugarcane with Fair andRemunerative Price (FRP) and the State- Advised Price (SAP). Opportunities in the FMCG Sector: Segment Overview: Segment Overview: Household Care * The detergents segment dominates the household care segment and has been growing at an annual growth rate of 10- 11% in the past five years. * The Household care segment is plagued by intense competition and high level of penetration. With rapid urbanization, emergence of small pack sizes and sachets is picking up * Local and unorganized players account for a major share of the total volume ofthe detergent market. Segment Overview: Personal Care Local and unorganised players account for a major share of the total volume ofthe detergent market The detergent segment dominates the household care segment and has been growing at an annual growth rate of 10-11% in the past five years. The Household care segment is plaguedby intense competition and high level ofpenetration. With rapid urbanization,emergence of small pack sizes andsachets is picking up. Segment Overview: Food and Beverages The Food and Beverages segment comprises of the food processingindustry,health beverage industry, breadand biscuits, chocolates & confectionery,Mineral Water and ice creams. The three largest consumed categories ofpackaged foods are packed tea biscuitsand soft drinks. The Indian hot beverage market isdominated by tea and the major share ofthe tea market is dominated byunorganized players. Dabur India Limited overview * Established in 1884 – more than 127 years of Trust & Excellence * Among top 4 FMCG companies in India * World’s largest in Ayurveda and natural healthcare * Revenue of r US$1 Billion (Rs 5,283 Crore) and Market Capitalisation of US$4 Billion (Rs 20,000 Crore) * Wide distribution network covering 3.4 million retailers across the country * 23 world class manufacturing plants catering to needs of diverse markets * Strong overseas presence with 30% contribution to consolidated sales * Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. * Headquarters: Kaushambi Ghaziabad – 201010 Uttar Pradesh, India * Top management: Dr. AnandBurman (Chairman) Mr.AmitBurman (Vice-Chairman) Mr. Sunil Duggal (CEO) * Employees approximately 3000 Key players at FMCG: Company| Key categories| Hindustan Unilever Ltd| Soaps, Detergents, Personal Care, Foods| Nestle India Ltd| Food, Beverages, Infant Nutrition| Dabur India Ltd| Personal, Health &Homecare, Foods| Godrej Consumer| Hair Care, Soaps| Colgate Palmolive Ltd| Oral Care & Toiletries| GlaxoSmithkline Consumer| Consumer Health Care| Marico Ltd.| Hair care, Food, Skincare| Procter & Gamble | Feminine Hygiene personal care| Britannia Industries Ltd| Biscuits| PEST Analysis Political * Stable political government. * Restrictions in import policies. * Rise in customs duty on petrol & diesel. * Partial withdrawal of stimulus packages Economical * Inflation rate * Decreased GDP * Increase in disposable income. * Indian FMCG Recorded 16% Sales Growth in last fiscal. The FMCG sector is the4thlargest sector of Indian economy with market size of more than 60,000crore Social * Rising rural India. * Consumerism. * Demography Technological * Research and development intensity * Information technology COMPETITOR ANALYSIS The key competitors are KeoKarpin, Emami, Bajaj, Marico, HLL which together with Dabur have about 64% of India’s domestic market. Emami: HimaniNavratan oil and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair oil market. Bajaj: Bajaj Brahmi Amla and Bajaj Almond Drops currently have a value share of 19 per cent and 12 per cent in their respective oil categories as per ORG-Marg. Besides, the company has also decided to enhance its retail presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to reach the rural parts. Maricos: Parachute is premium edible grade oil, a  market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity. In fact over time it has become the gold standard for purity. Parachute’s primary target has been women of all ages. The brand has a huge loyalty, not only in the urban sections of India but also in the rural sector. It has a market share of 28%. HUL It has two products, Clinic plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a 3%share in hair oil market. The key competitors of Dabur in the Chyawanprash segment are Baidyanath, Zandu andHimani, which together with Dabur have about 85% of India’s domestic market. DaburChyawanprash (herbal honey) has a market share of 61%.We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows: SWOT Analysis STRENGTH * Strong presence in well defined niches( like value added Hair Oil and Ayurveda specialties) * Core knowledge of Ayurveda * Strong Brand Image * Distribution Network, Extensive Supply Chain, IT Initiatives and R & D| WEAKNESS * Seasonal demand like chyawanprash in winter * High price Vatika * Limited differentiation in some products like vatika| OPPORTUNITIES * Export opportunities * Increasing demand by people * Market development| THREATS * Existing competition like Zandu, Himani, Baidyanath * New entrant threats from substitutes like Bryllcream for vatika hair oil| Dabur: Strong Presence in FMCG Categories Category| Position| Market share| Key Brands| Hair Care| 3| 12%| DaburAmla hair Oil, Vatika hair oil &Vatika Shampoos| Oral Care| 3| 13%| Red toothpaste, Babool, Meswak, Red toothpowder| Skin Care| 3| 7%| DaburGulabari, Fem| AyurvedicTonics| 1| 67%| DaburChyawanprash| Digestives| 1| 56%| Hajmola| Fruit Juices| 1| 52%| Real Fruit Juices, Real Activ| Honey| 1| 50%| Dabur Honey| Glucose| 2| 25%| Dabur Glucose| Segment wise Market share of Dabur International business * Focus markets: * Egypt * Nigeria * Turkey * Bangladesh * Nepal * U.S. * Leveraging the â€Å"Natural† preference among local consumers to increase share in personal care categories * High level of localization of manufacturing and sales and marketing * Sustained investments in brand building and marketing â€Å"Domestic FMCG companies such as Godrej Consumer Products (GCPL), Marico and Dabur have grown at a robust pace of 20% average annual growth over the last five years. In a bid to expand their businesses further, these companies acquired several foreign brands and companies. Consequently, the share of the international sales to their total revenue has increased. The chart of the day shows that between FY06 and FY12, the contribution of international sales has increased substantially for most FMCG companies. However, the benefit at the top line has failed to percolate at the bottom line. Sometimes, acquired brands take a long time to break-even. Hair-styling brand Code 10 acquired by Marico in 2010 and Dabur’s Namaste acquisition in 2011 continue to remain in red. However, GCPL has seen reasonable success with several acquisitions such as Megasari in Indonesia, Darling Group in Africa and Cosmetica National. This may be on account of the fact that GCPL has focused on product acquisitions in which it has a strong core presence. â€Å" Growth Strategy: Three Growth Strategies Acquire Innovate Expand Expand * Strengthening presence in existing categories and markets as well entering new geographies * Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories * Calibrated international expansion – local manufacturing pp y y g and supply chain to enhance flexibility/ reduce response time to change in market demands Innovate * Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a. * Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste) Acquire * Acquisitions critical for building scale in existing categories & markets * Should be synergistic and make a good strategic fit * Target opportunities in our focus markets Acquisitions of Hobi Group, Turkey * Acquisition of Hobi Group, Turkey for a total consideration of US$ 69 Million completed on October 7, 2010 * Hobi manufactures and markets hair, skin and body care products under the brands Hobby and New Era * Product range of the company is complementary to our product range * Acquisition provides an entry into another attractive emerging market and a good platform to leverage this across the region Acquisitions of Namaste Laboratories * Dabur India Limited through its subsidiary Dabur International Limited acquired 100% stake in Namaste Laboratories LLC for $100 million, in an all-cash deal on January 1, 2011 * Namaste is a leading ethnic hair care products company, having products for women of colour, with revenues of $95 million from US, Europe, Middle East and African markets * The company markets a portfolio of hair care products under the brand ‘Organic Root Stimulator’ and has a strong presence in ethnic hair care market for women of colour. * Acquisition to enable entry into Ethnic Hair Care products market valued at more than US$1.5 billion and tap into significant market opportunity in the fast growing * At an acquisition price of $100 million, the deal value is at 1.1x Sales and 8.3x EBITDA Porters Industry Analysis: Supply:| Abundant supply through a distribution network of over 8 m stores across the country. Distribution networks are being beefed up to penetrate the rural areas. HUL has tripled rural network in 2011 and Dabur wants to double rural reach by FY13.| Demand:| Being items of daily consumption, demand is least impacted by economic slowdown.| Barriers to entry:| Huge investments in setting up distribution networks and promoting brands and competition from established companies.| Bargaining power of suppliers:| Inputs being mostly agri-commodities, the suppliers are numerous and lack scale to wield bargaining power. Companies like ITC that are integrated backwards have lower dependence on suppliers. | Bargaining power of customers:| Customer does not have bargaining power in case of branded products but intense competition within the FMCG companies results in value for money deals for consumers. | Competition:| Competition is faced from domestic unorganized players and established MNC’s. Price wars are a common phenomenon. Private labels offered by retailers at a discount to mainframe brands act as competition to undifferentiated and weak brands.| | Financial year 2013-2014 | With consumer spending remaining healthy, value growth in FMCG sales were over 18% in 2012-13 (Source: Nielsen). All the frontline FMCG companies registered double-digit sales growth during the year. Companies like Dabur, Godrej Consumer Products and Marico posted over 25% topline growth aided by brisk rise in overseas revenues. | | The rural markets continued to lead demand in personal care and oral care products. According to Nielsen’s data, rural sales in washing powder, hair oil and shampoo each contributed more than a third of the overall category sales in FY2012-13. Sales growth in rural markets surpassed that in urban markets in more than 50% of the FMCG categories. Nielsen has projected the size of the rural market to grow ten folds to $ 100 bn by 2025. | | In FY2012-13, margins of FMCG companies were hit by unprecedented increase in price of crude and other commodities. As crude price spiralled above $100 a barrel, price of input crude-derivatives, transportation/freight and packaging costs increased sharply. Advertisement and promotional spends remained high on account of heightened competitive activity. The companies effected judicious price increases and also reduced the packet sizes and stock-keeping units (SKUs). Hence the growth seen by FMCG companies was mostly volume led. The reduction in surcharge from 7.5% to 5% and hike in the base MAT kept effective tax rates unchanged during the year.| | Prospects| | | Household spending on FMCG goods has not witnessed any pressure so far. But going forward, a deficient monsoon is likely to impact farm income and thereby rural spending in the short term. Even in urban India, discretionary spending can get impacted by lower salary hikes and food inflation re-surfacing on poor rainfall. This is more likely to result in down-trading by consumers. | | FMCG companies have been reaping the benefit of waning inflation and series of price-hikes taken earlier. But with the ‘New Standard Packaging’ rules coming into effect in November 2012, the companies will no longer be able to hold prices by reducing the grammage sold. High base-effect in price levels and fears of hurting demand is likely to prevent companies from raising prices substantially. Apart from absorbing higher input costs, FMCG companies may have to bear expenses to bring their  products in line with the new packaging rules. Additionally, even rising competition is expected to keep brand investments by companies high through increased ad-spends and promotional expenses. Therefore, profitability of FMCG companies may witness short-term pain. | | But long term demand potential of FMCG goods remains robust. According to International Labour Organisation, India will have the highest working age population in the world by 2020. The National Council of Applied Economic Research projects the proportion of middle class population to swell from 13.1% at present to 37.2% by 2025-26. Increase in working-age population and rising middle class will translate into higher purchasing power & boost consumerism. Higher penetration and evolution in consumption pattern will drive rural demand. The FMCG sector is expected to reach market size of $ 74 bn by 2018 (Source: FICCI).| | Introduction Of Financial ModelingFinancial modeling refers to the process through which a company builds up a financial representation of some, or even all aspects of the company or the given security. The financial model is generally featured by performing calculations, and making recommendations on the basis of that information. Moreover, the model might also prà ©cis specific events for the end user in addition to providing direction regarding possible alternatives or actions.Theoretically, a financial model is a set of assumptions about future business conditions that drive projections of a company’s revenue, earnings, cash flows and balance sheet accounts. In practice, a financial model is a spreadsheet (usually in Microsoft’s Excel software) that analysts use to forecast a company’s future financial performance. Properly projecting earnings and cash flows into the future is important since the intrinsic value of a stock depends largely on the outlook for financial performance of the issuing company. A financial model spreadsheet usually looks like a table of financial data organized into fiscal quarters and/or years. Each column of the table represents the balance sheet, income statement and cash flow statement of a  future quarter or year. The rows of the table represent all the line items of the company’s financial statements, such as revenue, expenses, share count, capital expenditures and balance sheet accounts. Like financial statements, one generally reads the model from the top to the bottom, or revenue through earnings and cash flows. History as a Guide When trying to predict the future, a good place to start is the past. Therefore, a good first step in building a model is to fully analyze a set of historical financial data and link projections to the historical data as a base for the model. If a company has generated gross margins in the 40% to 45% range for the past ten years, then it might be acceptable to assume that, with other things being equal, a margin of this level is sustainable into the future. Consequently, the historical track record of gross margin can become somewhat of a basis for a future income projection. Analysts are always smart to examine and analyze historical trends in revenue growth, expenses, capital expenditures and other financial metrics before attempting to project financial results into the future. For this reason, financial model spreadsheets usually incorporate a set of historical financial data and related analytical measures from which analysts derive assumptions and projections.Macro-economical Factors: 1. Mid-Quarter Monetary Policy Review: June 2013Monetary and Liquidity MeasuresOn the basis of an assessment of the current macroeconomic situation, RBI has been decided to: * keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of their net demand and time liabilities; and * keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.25 per cent.Consequently, the reverse repo rate under the LAF wi ll remain unchanged at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 8.25 per cent.2. The above monetary policy stance has been informed by the evolving growth-inflation dynamic, the balance of risks as well as recent developments in the external sector.3. Since the Reserve Bank’s Annual Policy statement in May, global economic activity has slowed and risks remain elevated, most recently on account of uncertainty over policies of systemic central banks. On the domestic front, macroeconomic conditions remain weak, hamstrung by infrastructure bottlenecks, supply constraints, lacklustre domestic demand and subdued investment sentiment. Inflation has  moderated as projected. However, upside pressures on the way forward from the pass-through of rupee depreciation, recent increases in administered prices and persisting imbalances, especially relating to food, pose risks of second-round effects. As recent experience has shown, shifts in global market sentiment can trigger sudden stop and reversal of capital from a broad swath of emerging economies, swiftly amplifying risks to the outlook. India is not an exception.Global Economy4. Global growth has been patchy and uneven. Among advanced economies (AEs), during Q1 of 2013, growth in US and Japan improved while that in the euro area contracted. Growth in most emerging and developing economies (EDEs) has been relatively resilient, although in some large emerging economies, sluggish external demand and stalled domestic investment are dragging down economic activity. Inflation has been easing in the AEs due to weak demand conditions. EDEs, however, present a mixed picture: inflation remains elevated in the BRICS except China. Commodity prices, other than the price of crude, have generally softened in recent months.Domestic EconomyGrowth In May, the Central Statistics Office (CSO) reported India’s GDP growth in Q4 of 2012-13 of 4.8 per cent, a marginal improvement over the previous quarter. During the current financial year, the growth of industrial production decelerated to 2.3 per cent in April after picking up in the preceding month. All constituent categories of industry have slowed, with a persistent contraction in mining activity. The sharp weakening in the growth of capital goods production points to still damped investment demand whereas a pick-up in consumer non-durables could be indicative of a fragile return of consumer confidence. On the other hand, the services sector purchasing managers’ index rose in May on order flows. The onset of the south-west monsoon has been strong and on time.InflationHeadline WPI inflation eased for three months in succession with the May reading at 4.7 per cent, down from an average of 7.4 per cent in 2012-13. All constituent categories, barring food, have moderated. In the fuel category, coal and mineral oil prices declined, partly offsetting the upward revision in administered prices of electricity. Non-food manufactured products inflation too ebbed, driven by metal prices which fell for the eighth successive month in response to softening of global prices. Still ele vated food inflation, particularly in respect of cereals and vegetables, sustained upside pressures on overall  inflation. Retail inflation, as measured by the new combined (rural and urban) CPI, edged down from an average of 10.2 per cent last fiscal year to 9.3 per cent in May.Liquidity Conditions Net average daily borrowings under the LAF have declined gradually, from ` 1.2 trillion in March 2013 to ` 0.7 trillion in June 2013 so far (up to June 14) reflecting the sizable injection of primary liquidity through the reduction in the cash reserve ratio (CRR) in January, open market operations (OMO) purchases during Q4 of 2012-13, a significant reduction in the government’s cash balances with the Reserve Bank as well as two OMOs of ` 0.2 trillion in the current financial year so far. External Factors: The most significant development in the external sector has been the movement in the exchange rate. The rupee depreciated by 5.8 per cent against the US dollar during the current financial year up to June 14. It fell by 6.6 per cent during May 22-June 11 due to sell-off by foreign institutional investors, reflecting risk-off sentiment triggered by apprehensions of possible tapering off of quantitative easing by the US Fed. While the trade deficit has widened sharply due to a surge in festival-related/seasonal gold imports, available evidence suggests that a moderation in gold imports could be underway in June. Capital flows, which met the external financing requirement during April-May, moderated in June.Outlook At the global level, the International Monetary Fund (IMF) has warned of non-trivial risks of the global economy encountering a soft patch in the months ahead. On the domestic front, last year’s robust rabi production and the monsoon performance so fa r augur well for growth prospects. The spatial and temporal distribution of rainfall over the next three months will be crucial in determining the performance of agriculture. The continuing weakness in manufacturing activity needs to be urgently reversed. Key to reinvigorating growth is accelerating investment by creating a conducive environment for private investment, improving project clearance and implementation and leveraging on the crowding-in role of public investment. On the inflation front, easing commodity prices at the global level and weaker pricing power of corporates at the domestic level are having a softening influence. Given that food inflation remains high, the inflation outlook will be influenced by concerted efforts to break food inflation persistence. The inflation outlook going forward will be determined by suppressed inflation being released through revisions in  administered prices, including the minimum support prices (MSP) as well as the recent depreciation of the rupee. Softer global commodity prices and recent measures to dampen gold imports are expected to moderate the CAD in 2013-14 from its level last year. The main challenge is to reduce the CAD to a sustainable level; the near-term challenge is to finance it through stable flows. The most recent number on the Centre’s fiscal deficit, at 4.9 per cent of GDP for 2012-13, has turned out better than expected and instils confidence in the Government’s commitment to contain the fiscal deficit for 2013-14 at 4.8 per cent. Perseverance with this consolidation should help in mitigating the twin deficit risks to the outlook. These positive developments, which have been acknowledged by international credit rating agencies, should have a favourable impact on invest or confidence.Current Account Deficit (CAD) woes: The Reserve Bank of India (RBI) in its monetary policy cut the cash-reserve ratio (CRR) and repo rates by 25 basis points (0.25%). But at the same time it made very clear the various risks that the Indian economy faces. While inflation is certainly one of the key risks, the other equally worrying factor is the current account deficit (CAD). Indeed, in the above chart shows, CAD (as a % of GDP) has been continuously increasing over five consecutive quarters from July-September 2011 (2QFY12) to July-September 2012 (2QFY13). This is bound to have an adverse impact on the stability of the country’s exchange rate at a time when domestic growth has also been slowing down. What is more, the rise in imports has largely been on account of fuel and gold imports. This is of more worrying to the RBI, than had the high CAD been on account of import of capital goods. | Understanding Financial StatementIncome StatementAn income statement (US English) or profit and loss account (UK English) (also referred to as a profit and loss statement (P&L), revenue statement,statement of financial performance, earnings statement, operating statement, or statement of operations) is one of the financial statementsof a company and shows the company’s revenuesand expenses during a particular period.It indicates how the revenues (money received from the sale of products and services before expenses are taken out, also known as the â€Å"top line†) are transformed into the net income(the result after all revenues and expenses have been accounted for, also known as â€Å"net profit† or the â€Å"bottom line†). It displays the revenues recognized for a specific period, and  the costand expenses charged against these revenues, including write-offs (e.g., depreciation and amortization of various assets) and taxes.The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported. The important thing to remember about an income statement is that it represents a period of time. This contrasts with the balance sheet, which represents a single moment in time.Balance SheetIn financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, abusiness partnership, a corporation or other business organization, such as an LLC or an LLP. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a â€Å"snapshot of a company’s financial condition†. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business’ calendar year.A standard company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of assets are usually listed first and typically in order of liquidity.Assets are f ollowed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assetsor the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities.Another way to look at the same equation is that assets equal liabilities plus owner’s equity. Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner’s money (owner’s equity). Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections â€Å"balancing†.Cash Flow StatementIn financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statementthat shows how changes inbalance sheetaccounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Essentially, the cash flow statement is concerned with the flow of cash in and out of the business. The statement captures both the current operating results and the accompanying changes in the balance sheet. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company,  particularly its ability to pay bills. International Accounting Standard 7 (IAS 7), is the International Accounting Standardthat deals with cash flow statements.People and groups interested in cash flow statements include: * Accounting personnel, who need to know whether the organization will be able to cover payroll and other immediate expenses * Potential lendersor creditors, who want a clear picture of a company’s ability to repay * Potential investors, who need to judge whether the company is financially sound * Potential employees or contractors, who need to know whether the company will be able to afford compensation * Shareholders of the business.Th e cash flow statement is intended to 1. provide information on a firm’s liquidity and solvency and its ability to change cash flows in future circumstances 2. provide additional information for evaluating changes in assets, liabilities and equity 3. improve the comparability of different firms’ operating performance by eliminating the effects of different accounting methods 4. It indicates the amount, timing and probability of future cash flows.Working CapitalWorking capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is calculated as current assets minus current liabilities. It is a derivation of working capital that is commonly used in valuation techniques such as DCFs (Discounted cash flows). If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.A company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.Horizontal AnalysisA procedure in fundamental analysis in which an analyst compares ratios or line items in a company’s financial statements over a certain period of time. The analyst will use his or her discretion when choosing a particular timeline; however, the decision is often based on the investing time horizon  under consideration.Formula,= current year-base yearbase year| Vertical AnalysisVertical analysis of financial statements is a technique in which the relationship between items in the same financial statement is identified by expressing all amounts as a percentage a total amount. This method compares different items to a single item in the same accounting p eriod. The financial statements prepared by using this technique are known as common size financial statements.Trend AnalysisTrend Analysis is the practice of collecting information and attempting to spot a pattern, or trend, in the information. Although trend analysis is often used to predict future events, it could be used to estimate uncertain events in the past, such as how many ancient kings probably ruled between two dates, based on data such as the average years which other known kings reigned.= Current year*100 Base yearDiscounted Cash Flow (DCF) AnalysisIn finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values (PVs)—the sum of all future cash flows, both incoming and outgoing, is the net present value (NPV), which is taken as the value or price of the cash flows in question. Present value may also be expressed as a number of years’ purchase of the future undiscounted annual cash flows expected to arise.Using DCF analysis to compute the NPV takes as input cash flows and a discount rate and gives as output a price; the opposite process—taking cash flows and a price and inferring a discount rate, is called the yield.Discounted cash flow analysis is widely used in investment finance, real estate development, and corporate financial management.What is relative valuation? In relative valuation, the value of an asset is compared to the values assessed by the market for similar or comparable assets. To do relative valuation then, – we need to identify comparable assets and obtain market values for these assets – convert these market values into standardized values, since the absolute prices cannot be compared This process of standardizing creates price multiples. – compare the standardized value or multiple for the asset being analyzed to the standardized values for comparable asset, controlling for any differences between the firms that might affect the multiple, to judge whether the asset is under or over valuedInterpretation of DCF valuation and Relative valuation| Review of Literature Mostly financial modeling of dabur was done before by equity research analyst of various research agencies, mutual funds, investment banks and brokerage house. Generally they have done it quarterly and annually before and after the company’s financial results. Justification and Likely Benefits Why financial modelingis important? Financial modeling acts as a useful tool which enables business options and risks to be estimated in a cost-effective way against various assumptions, recognize optimal solutions in estimating financial returns and understand the effect of resource constraints thus leading to more effective business decisions. Financial modeling can be referred as an art and like any other art form, it requires constant [practice and commitment to develop expertise in this area. In the present day world, many companies are becoming globally integrated with the international economy through the way of acquiring/establishing international operations. This calls for the requirement of strong financial models which can assist in performing the evaluation of every country’s operations, reflect on multiple currencies in their model, estimate varying capacity utilizations to estimate the optimal capacity under changeable industry demand-supply scenarios and similar more cases. Scope of Financial Modeling? Financial Modelling is a key skill with application in several areas withinbanking and finance industry as well as within corporations. In financialmodelling you learn to gather historical information on companies andanalyze company / industry performance on various financialparameters. This analysis is then used to build a company’s financialmodel, which in turn is key to projecting a future financial performance.Based on this model companies investors can arrive at a suitableevaluation for the companies. Financial models are usually made for financing of a project intransactions like: PPP/PFI, Mergers & Acquisitions, Valuation ofbusinesses etc. across various industries & sectors which includes SolarPlants, Waste Management, Helicopter felt, Oil and Gas, Mining,Energy, Healthcare,  Services & Education etc to evaluate the viability ofthe project on various parameters. Key Financial of Dabur: Objectives To find out intrinsic value of dabur and take decision regarding investment in Dabur. Plan of Work and Methodology Prepared a Sector Analysis Report for the FMCG sector †¢ Performed Historical Ratio Analysis of Dabur †¢ Prepared a Financial Model for Dabur by forecasting its financials for the next five years (FY13E-FY17E) on the basis of a historical trend analysis and expected performance of the FMCG industry drivers. †¢ Estimated a Target Price for the stock of Dabur using a DCF Valuation Model as well as using Relative Valuation by peer comparison. †¢ Submitted a final Equity Research Report on Dabur with recommendations. References and Bibliography www.investopedia.com www.rbi.org.in www.moneycontrol.com www.equitymaster.com www.bloomberg.com www.bseindia.com www.dabur.com www.wikipedia.org Nielsen FMCG industry report

Management of a Patients Needs Essay Example | Topics and Well Written Essays - 4750 words

Management of a Patients Needs - Essay Example Each year, over 75,000 reported deaths in the UK is associated with diabetes mellitus (Type 1 and 2). Other complications associated with the condition (diabetes mellitus) include, for instance, amputation, kidney failure, and blindness. It is estimated that each year, over 6000 people in the UK who are diabetic undergo the amputation of either leg or foot. Researchers in the medical field also contend that if the current trend in the UK continues, the amputation rate will rise (McInnes, 2012). On another note, the expenditure on diabetes care by the NHS is almost reaching the  £10billion mark, which is about 10% of NHS total budget. Most of the expenses tend to cater for the management of avoidable complications. Conversely, other than direct costs, there are also indirect costs that increase the figure to approximately  £ 23.7 billion. However, among the most costly consequences of diabetes in the UK is the number of hospital admissions. It is estimated that at any one time, av eragely 15% of inpatients in the hospitals are recorded as patients with diabetes (NHS, 2012). The government acknowledges the adverse effects of diabetes on its citizens and has come up with a vision that targets the care of diabetes under the NSF (National Service Framework for Diabetes). On the other end of the spectrum, improvements in the care of diabetes are still needed due to its increased prevalence. For instance, there is the need for a multidisciplinary approach in the treatment of complications associated with diabetes such as FDUs