New Kind of e-Business Essay Example | Topics and Well Written Essays - 2000 words

New Kind of e-Business - Essay Example 2 Nature and Purpose of Business The nature of this business will be to go beyond dog training. Many people have dog trainers or have experience them and they teach everything from traditional training to Cesar Mellan techniques. However, there are no DVDs that go beyond this typical training to doing creative calisthenics with the dogs. The purpose of the business would be to keep dogs fit without having to walk them everyday or run them everyday. Just as humans become bored with routine, the DVDs would insure that dogs not only were exercised, but they would be exercised in a creative way. The individual pet owner could do these simple calisthenics with their jobs or they could hire a certified trainer in this method to come to their home and give the dog a workout. Many people hire dog trainers and they expect their dogs’ behavior to improve through training. Often this helps, but there are dogs with so much energy that they need to have more than one way to expend this ene rgy. According to Liz Palika, author, there are many benefits of training your dog. Some of these benefits include: a better behaved dog, bonding between human and dog, it can be fun for both the human and the dog (especially if the dog learns how to do tricks). Although Palika talks about traditional dog training, these same benefits can be used to help people understand how to do doggie calisthenics. 2.1 Why Doggie Calisthenics The word calisthenics means to do small exercises that are geared to develop muscle tone and overall physical well-being. When this definition is applied to dogs, it means creating interesting small exercises that will help to increase the dog’s overall health. Obviously many people use running and walking their pets as the way to keep them healthy, but dogs need other types of exercise to insure they are keeping muscle tone and not turning into those pudgy animals that begin to have health problems. Doggie callisthenic DVDs would be perfect for high energy dogs and small toy breeds that have lots of energy. Some examples of these exercises are playing fetch, cycling with your dog (although the dog must be well trained as well), gym workouts (with treadmill or obstacle courses in a gym), or stair climbing. All of these are examples of calisthenics that are easy to do and that can be done with anyone. Of course, all pet owners should have their dog checked at the vet before starting any exercise program. Doggie calisthenics would not be done to take the place of walking or running, but they would be used in addition to these other methods of training. They would be used as a warm up exercise or they could be used when the individual pet owner was not able to get their dog outside for a walk or a run. The DVDs would promote a 10-15 minute workout which could be done along with the pet owner’s workout. The DVDs would show step-by-step how to get the dog interested in the exercise, how to monitor their heart and pulse and it would provide safety tips to show how easy it is to keep a dog healthy and make sure they are fit. There would also be a list of dog breeds that came with the package that would tell which dogs were more prone to need more exercise. 3 Competitive Advantage There are several competitive advantages that this business would have as an e-business. The pet owner would be able to either purchase DVDs or the various programs or they would be able to

Water first Essay Example for Free

Water first Essay The film captures the inspiring story of Charles Banda, a man who has dedicated his life to providing clean and safe water to the people of Malawi. It was this dedication that saw him turn down a political office offer from none other than the country’s president. If you were to ask anyone in Africa what a political appointment means in that side of the world then you would understand the depth of his commitment to provide water to the impoverished citizens of Malawi, a poor sub-Saharan nation of 12 million people with serious water deficiency. However, back to the film, and something one gets from the film is how grave the consequences of not having water are. The film avoids going in to those morbid details that have sometimes characterized films coming out of Africa and other third world countries. The film captures the green countryside showing a large water reservoir then moves on to show girls moving in a brownish environment (a symptom of dryness) carrying heavy loads in their heads- presumably water. Another scene shows a girl drawing water from a shallow well. The water she is drawing cannot be particularly termed as clean by any standards. It may not even qualify to wash utensils in a lower class neighborhood in Harlem. There are many other scenes of interest, but in the overall, the director does present a picture of the situation as it is in a majority of the African nations and other developing countries without taking away too much of their dignity. In addition, the film also presents some crucial numbers such as the number of people lacking clean water. Relationship between water and the millennium development goals (MDGs) The millennium development goals were arrived at in 2000 by a United Nations declaration and it is envisioned that its targets are to be reached by 2015. There are 8 goals in total, and watching the film, I have a clear picture of the central role to be played by water in the attainment of each of the eight goals. There are two women in the film who give us the common diseases in their communities and among them; cholera and dysentery emerge as some of the most common. You will hardly hear of these diseases in the developed world, and even when they happen they do not come in catastrophic proportions. They are mostly isolated. Yet, for African countries such as Malawi, cholera epidemics are not uncommon. Of importance however, is how the girl child is affected by lack of water. Goal three of the millennium development goals is to promote gender equality and empower women. This goal cannot be achieved if the girls are going to continue carrying the heavy loads for long distances as we saw in the film. Unfortunately, most of the countries that are yet to achieve the MDGs are mostly composed of patriarchal societies. These societies hardly value the place of the woman and for that reason; the women are treated as second class citizens. They are mostly confined to lowly duties such as fetching water, cooking, washing utensils and taking care of small children. Men, on the other hand, get to do more valuable jobs, most of which concern taking care of property. In fact, in such societies, women do not own property-they are properties themselves. Most of the roles listed for women will need water to perform and it is therefore incumbent upon them to ensure that they have enough water supplies. Given that scenario, we can then expect that water shortages will hardly affect men because they have no urgent need for it. As we have seen from the film, it is the girl child who is always out in the wild going to fetch water and one wonders whether she has the same chance of doing well in school in comparison with the boys. Long term empowerment of women cannot be achieved if the girls do not have equal access to education like their male counterparts. Of course, much more than the mere provision of water has to be done, but it has to be the starting point. After providing the water, civic education may then be done to get the society to appreciate the role education will play in the life of the girl child. An equally important area covered by the film is goal number two. This is the area of achieving universal primary education. By this declaration, it is hoped that by the year 2015, primary education will be a universal right for every child. For the girl child however, the right to education must go beyond the promulgation of such a policy. They have more specialized needs in terms of sanitation and without water then their school attendance cannot be guaranteed especially during menstruation periods. That means that their rights to education cannot be guaranteed because of water. Has the United Nations been successful? So far, the UN has been involved in a number of initiatives aimed at easing the strain on the available water resources. It has even predicted that future wars will be fought over water resources as opposed to the current wars, most of which are based on territorial disputes. The issue of water shortage cannot be addressed wholly; it requires addressing the underlying issues that cause it. The range of factors may include global warming, desertification and rapid industrialization. Although the UN does not explicitly list water as a basic human right, it does include access to food as a basic human right. It is hard for food to exist without water and it can therefore be assumed that the UN considers water a basic human rights. It cannot however be said that the organization has been successful at addressing the issue of water accessibility in most of the developing countries. The film gives a figure of 1 billion people as being unable to access water because of their inability to afford it yet most governments are busy privatizing the provision of water. An important lesson from the film is that water provision should have a social approach. The waterman in the film has been largely successful in his efforts because his social approach has enabled him to mobilize substantial resources for use in the sinking of wells. The developing countries are clearly not prepared to commercialize the provision of water because a substantial part of its population still does not have access to it. To that end, the UN needs to do more to dissuade these countries from commercializing the provision of such a basic commodity. Would I recommend the film? The situation in Malawi is representative of how the general situation is in most of the developing countries and especially those in Africa. I would recommend the film to anyone interested in getting a feel of what the average person in a country without water is going through. Those of us in the developed countries take too many things for granted. Many cannot fathom life without the running water or electricity. Many of those in the developed world get to learn about the problems facing other citizens of the world from national geographic channels or Hollywood movies such as blood diamonds. Although they are made in Africa or whichever continent, their objectives are mainly commercial and may not therefore, have the patience or motivation to develop a wholesome picture of the situation. The film attempts to give a balanced view of the situation without having to apportion blame, either to the government or the communities. It simply calls our attention to the problems existing in these countries and leaves the rest to our own judgments. I therefore propose the film to anyone intent on understanding the development needs in these countries. Works Cited UNDP. Millennium Development Goals. 05 Apr 2010 http://www. undp. org/mdg/basics. shtml.

History For Aircraft Investigation Aviation

History For Aircraft Investigation Aviation Flying is generally a safe and fast method of transportation, but accidents always happen whether through human error, mechanical failure, or criminal activity. Over the last two decades, there have been many fatal aircraft accidents per year worldwide. These, and lesser accidents, have to be investigated scientifically in order to gain important lessons about aircraft performance and safety. The International Civil Aviation Organization (ICAO) requires that a civil aircraft accident be investigated by an independent body belonging to the country where the accident took place. Each country has its own organization taking responsibility for this: in the United States, it is theNational Transportation Safety Board(NTSB); in the United Kingdom, it is the Air Accidents Investigation Branch (AAIB) and in Malaysia it is the Department of Civil Aviation. The purpose of the investigation is to find out why the accident happened and how similar events might be avoided in the future, rather than to apportion blame. The police will be involved in the investigation if sabotage or some other form of criminal activity is suspected, and the military generally looks into accidents involving service aircraft. My research is about the air disaster investigation procedure for Malaysia on the matter of the procedure step, incident statistic, comparison between the Malaysian investigation procedures with other region. History for aircraft investigation The procedures for air accident investigations were first laid down in 1928 by the US National Advisory Committee for Aeronautics. They required air accident investigators to consider the immediate and underlying factors of an accident in order to establish and apportion blame for its occurrence. A credit system was put in place that weighted causal factors according to their overall culpability for example, an accident could be regarded 70% the result of pilot error and 30% the result of environmental factors.( New Zealand Air Line Pilots Association, 2009) In 1944 the Chicago Convention drafted a set of procedures and processes to govern the burgeoning international civil aviation industry. Included in these procedures were rules concerning the responsibilities of contracting states in the event of an aviation accident on their soil. These standards and recommended practices were developed by the Accident Investigation Division between February 1946 and February 1947, and were later designated as Annex 13 of the convention. The convention allowed states to generate their own rules for accident investigation, so as long as the core practices of Annex 13 were incorporated and investigative practices aligned with ICAO Doc 9620, the Manual of Aircraft Accident Investigation.( New Zealand Air Line Pilots Association, 2009) The primary focus of Annex 13 differed from that of the US National Advisory Committee for Aeronautics in 1928: it was no longer to find fault and apportion blame for an aircraft accident, but to provide a mechanism by which participants in the industry pilots, aircraft manufacturers and regulatory agencies could learn from their mistakes.( New Zealand Air Line Pilots Association, 2009) Accident Trend In recent years, progress and development in science and technology have made dramatic contributions to human society. However, these same development have given rise to many new type of dangers, and a massive increase in loses that would have been in conceivable in the past. (Masako Miyagi, 2005) This trend is by no means an indication of carelessness on the part of the individuals involved: rather, it could be considered an indication that the methods used to implement traditional safety measures in the past have reached a limit of effectiveness. This is because the most basic safety measures taken in the past were limited to reprimands and punishments targeting the person responsible for the accidents, and improvements to mechanical aspects stemming from the result of accident investigations. Such accident investigations placed an emphasis on technical analysis of events in accidents that had already occurred, and for this reason there is no question that they contributed to a sharing of important information regarding the mechanical aspects of these accidents, that this information was put to use in making improvements, and that significant results were archived through this process. (Masako Miyagi, 2005) Human beings are able to develop and increase their abilities to some extent through education and training. The fact remain, however, that it is extremely difficult to obtain the information on human aspects of accidents that would be required to implement such training, because the people most directly involved may have been killed in the accident, or may be reluctant to come forward for fear of being held responsible. There are definitive limitations to approach described above even if all the relevant information in obtained; namely that when studied are made into accident prevention measures based on accident investigations, the investigations can only begin after the accident has occurred. Furthermore, the improvement measure based on accident investigations will only be of value in preventing the re-occurrence of accidents that are identical to those on which the measures were originally based. (Masako Miyagi, 2005) Graf below showed that, by years to years, more accident happen because of human carelessness rather than mechanical failure. By times go by the percentage being increasing. Graft 1.1(Masako Miyagi) Boeing`s statistical summary There are several reliable sources of accident data. One of the most easily accessible accident databases is maintained by Boeing, which publishes an annual Statistical Summary of commercial Jet Airplane Accident. Another good sources document is the International Air Transport Association (IATA) Safety Board Record(Jet), also published annually.( Alexander T.Wells and Clarence C.Rodrigues, 2004) Hull losses were also analyzed according to the phase of flight in which they occurred (Graft 1.2). After the combined approach and lading phases, the next greatest numbers hull-loss accident occurred in the combined phases from landing through initial climb. Cruise, which accounts for about__ of flight time in a 1.5 hour flight, occasioned only 6% of hull-loss accidents.( Alexander T.Wells and Clarence C.Rodrigues, 2005) The summary also considered primary cause factor for commercial operations hull-loss accidents for the period 1990-1999(Graft1.3). For accidents with known causes, flight crew were considered the primary cause in most 67% over the 10 years periods.( Alexander T.Wells and Clarence C.Rodrigues, 2005) Graft 1.2 Phase of flight in hull-loss accident, all aircraft, worldwide commercial jet fleet (1990-1999) (Boieng commercial airplanes Group) Graft 1.3 Primary causes factors (as determined by the investigating authority) in hull-loss accidents, all aircraft, worldwide commercial Jet fleet(1990-1999)(Boeing Commercial Airplanes Group) Chart below showed about accident categorizes by airplane generation for the period 1990-1999 (Table 1.1). Most accidents occurred on landing, with 157 out of 385 for the 10-years period. Interestingly, most landing accident involved current generation aircraft. (Alexander T.Wells and Clarence C.Rodrigues, 2005) Type of incidentGeneration First Second Early Widebody Current total Controlled flight into terrain 5 17 3 11 36 Loss of control 8 7 2 12 30 Midair Collision 1 1 2 In-Flight fire 1 2 1 1 5 Fuel tank explosion 1 1 2 off end on landing 7 17 3 22 49 Off side on Landing 3 20 3 11 37 hard landing 3 15 5 32 55 Landed short 4 9 1 2 16 Gear collapse/fail/up 8 8 2 13 31 Ice/snow 3 3 6 Fuel management/exhaustion 2 4 1 7 Windshear 1 1 1 3 Takeoff configuration 1 1 1 3 Off side on takeoff 1 1 3 3 8 Runway Incursion vehicle/people 5 1 10 16 Wing strike 2 2 Engine Failure/Separation 3 2 4 1 10 Ground collision 2 2 6 10 Ground Crew injury 3 2 2 7 Boarding/deboarding 2 2 4 Turbulance fatality 1 1 1 3 Miscellaneous 1 2 2 3 8 Fire on ground 1 2 3 2 8 aircraft structure 2 2 2 6 Unknown 1 3 3 7 Refused take-off end 3 6 3 2 14 Total 54 134 49 148 385 Table 1.1 Accident categorizes by airplane generation for the period 1990-1999 (Alexander T.Wells and Clarence C.Rodrigues,2005) *Miscellaneous Accidents -Coffee Maker Explosion -Fuel spill -Instrument error -Hypoxia -Jet blast -Pilot incapacitated -Taxied across ditch -Window fail -Tailstrike/RTO -other (Alexander T.Wells and Clarence C.Rodrigues) Graft 1.4 Accident categorizes by airplane generation for the period 1990-1999 (Alexander T.Wells and Clarence C.Rodrigues) Generation Aircraft Type First Comet 4, 707/720,DC-8,CV-880/-990,Caravelle Second 727,trident VC-10,BAC 1-11,DC-9,737-100/200,F-28 Early widebody -100/-200/-300/SP, DC-10,L-1011,A300 Current MD-80,767,757,A310,Bae 146, A300-600, 737-300/-400/-500,F-100,A320/310/321, 747-400,MD-11,A340,MD-90,777,737NG,717 Table 1.2 Aircraft by generation (Alexander T.Wells and Clarence C.Rodrigues) Graft 1.5 Accident Categories by airplane generation, all accidents, worldwide commercial jet operations. (1990-1999).(Boeing Commercial Airplanes Group) 1.2 Problem definition The problem with the current situation is, even thought so many precaution have been make, but air disaster still happen. Is there any way to prevent this disaster to happen? Each country had theirs own investigation team. But after the investigation, still have some aircraft that crash and involve a mass casualty. This research will study about the limitation of the investigation body if there is an air crash or air disasters occur in or outside of the investigation body region. 1.3 Objectives of research The main objectives of this thesis are to make a research upon the investigation procedure and type of accident happen in Malaysia and throughout the world. These are several more objectives of the project: Compare the investigation procedure between America and Malaysia. To understand the concept of how the air disaster investigation procedure. To prove that aircraft investigation can reduce air disaster. Making a survey about the awareness of the investigation procedures. To know the party that involved in board of investigation rules and regulation in Malaysia 1.4 Research scope This thesis will go through the ICAO annex 13, Aircraft Investigation Procedure Manual and MCAR Part 12 to study the exact procedure of the Aircraft Investigation Procedures. Chapter 2: Literature Review 2.1 Introduction The Chicago Convention on International Civil Aviation established the International Civil Aviation Organization (ICAO) as a specialized aviation department within the United Nations. ICAO Annex 13 defines and directs requirements forAircraft Accident and Incident Investigationprocedures. As a result most nations or consortium of nations have some form of air regulating body which subsequently contains an investigation division. Unfortunately not all agencies are created equally and national differences exist which influencefactual results in accident investigation. Six areas have been presented as a hindrance to proper investigative techniques in a paper by Dr. Horacio A. Larrosa of the International Society of Air Safety Investigators (ISASI)Accident and Incident procedures in Argentina MO4131. Expertise and Experience Investigative Budgets Political and Religious Influence and Beliefs Nepotism and Cronyism Dedication and Desire National Pride or Prejudice 2.2 Internationally Respected Players 2.2.1 National Transportation Safety Board (NTSB) The National Transportation Safety Board is an independent federal agency charged with determining the probable cause of transportation accidents and promoting transportation safety, and assisting victims of transportation accidents and their families. The NTSB investigates accidents, conducts safety studies, evaluates the effectiveness of other government agencies programs for preventing transportation accidents, and reviews the appeals of enforcement actions involving aviation and mariner certificates issued by the Federal Aviation Administration (FAA) and the U.S. Coast Guard (USCG), as well as the appeals of civil penalty actions taken by the FAA.(NTSB,2002) To help prevent accidents, the NTSB develops safety recommendations based on our investigations and studies. These are issued to federal, state, and local government agencies and to industry and other organizations in a position to improve transportation safety. Recommendations are the focal point of the NTSBs efforts to improve the safety of the nations transportation system. (NTSB,2002) NTSB Mission: To promote transportation safety by maintaining our congressionally mandated independence and objectivity; conducting objective, precise accident investigations and safety studies; performing fair and objective airman and mariner certification appeals; and advocating and promoting safety recommendation. And to assist victims of transportation accidents and their families. 2.2.2 European Aviation Safety Agency (EASA) European Aviation Safety Agency has been the cornerstone of the European Unions aviation safety programs for years; however, accident investigation has been the jurisdiction of each individual member state. In 2009 the EU outlinedthe requirementsto establish a â€Å"better and more uniform quality of accident investigations across the EU.† It will establish the rules for accident investigation for all states controlled by a central EU body in the near future. (EASA,2011) The EASA has become the competent Community Aviation Authority for the safety of aviation underBasic Regulation 1592/2002; thus, it may be the recipient of safety recommendations related to the areas of its responsibilities. Furthermore, ICAO Annex 13 provides that the State of Design and the State of Manufacture shall each be entitled to appoint an accredited representative because of the function that have been attributed to each of those States with respect to the airworthiness of aircraft under Annex 8. Therefore, as the EASA is now in charge of the airworthiness, is shall be represented in Safety investigation in order to fulfil its obligation.(EASA,2011) Under both, international and community law, all safety recommendations must be taken into full consideration by the entity to which they are addressed. In addition, in the preamble of theBasic Regulation 1592/2002it is stated that the results of the accident investigations should be acted upon by the EASA, as a matter of urgency in particular when, they relate to defective aircraft design or operational matters. ( EASA,2011) To successfully discharge its responsibilities in this area, the EASA has included in its organ gram an Accident Investigation Section. It is responsible for the follow-up of occurrences where the Safety has been endangered. (EASA,2011) Its main devoted tasks are: To follow the progress of aircraft accidents and incidents investigations, To be represented in investigations and collect information related to occurrences, To achieve the processing of Safety Recommendations addressed to the Agency, To provide progress reports and statistics on the Safety Recommendations processing, To maintain a good coordination with European Accident Investigation Bodies, To identify safety deficiencies and disseminate related information. 2.2.3 The European Three (E3) The European Three are combination of the safety bureau in Europe, there are the Air Accidents Investigation Branch ( AAIB) of England, French Air Accident Investigation Bureau ( BEA France) and Aircraft Accident Investigation Bureau (AAIB Switzerland) are recognized as world leaders in several accident investigation areas. Not only do they aid nations of the EU in investigations but also non EU nations that have accidents involving aircraft manufactured in Europe, European registered aircraft, accidents occurring in any nation that was a colony of one of the EU member states and any nations requesting help. 2.2.4 Australian Transport Safety Bureau (ATSB) Australian Transport Safety Bureau has gained a reputation as Oceana and Asias air accident investigating body. They are investigators in most of the small island nations of the South and Central Pacific or whenever requested by other nations. Australias development as a nation through the twentieth century was closely linked to the development of the aviation industry. This industry has helped us overcome vast internal distances and geographical isolation from the rest of the world.(ATSB, 2011) The ATSB is responsible for the independent investigation of accidents and incidents involving civil aircraft in Australia. The ATSBs primary focus for its investigations is fare-paying passenger operations. However, all accidents and incidents related to flight safety in Australia or involving Australian registered aircraft overseas must be reported to the ATSB. While the ATSB does not investigate all of these, it still needs to be notified so that the data can be recorded for possible future safety research and analysis. (ATSB,2011) 2.2.5 Transportation Safety Board of Canada The Canadian Transportation Accident Investigation and Safety Board (TSB) has emerged as the leader in South and Central America. Similar to Australia the small population nation that is home to ICAO, works in close coordination with the larger NTSB in the USA. However, viewed as an alternative to Washington many Latin American nations work directly with Canada out of desire, security or necessity.(TSB, 2010) Summaries Most nations have the required ICAO investigative agencies but the variations between countries are still very strong. The positive factor for international accident investigation is that many investigators within these nations are willing to call upon each other and aid their work. Working together in the vast majority of air accidents, the public has a good chance of obtaining the truth about accidents within their borders. 2.3 Definition: Before going through a little further, these are some definition that being use in the investigation for any accident or incident that happen. All definition are taken from ICAO , 2001, Annex 13, MCAR part 12 and NTSB 2002, Aircraft accident Investigation Manual. 2.3.1 Aircraft Accident An occurrence associated with the operation of an aircraft which takes place between the time any person boards the aircraft with the intention of flight until such time as all such persons have disembarked, in which a person is fatally or seriously injured as a result of being in the aircraft or direct contact with any part of the aircraft, including parts which have become detached from the aircraft, or direct exposure to jet blast. The aircraft sustains damage or structural failure which is adversely affects the structural strength, performance or flight characteristics of the aircraft, or the aircraft is missing or is completely inaccessible. 2.3.2 Aircraft Incident An occurrence, other than an accident, associated with the operation of an aircraft which affects or could affect the safety of operation. Serious incident An incident involving circumstances indicating that an accident nearly occurred. 2.3.3 Investigation A process conducted for the purpose of accident prevention which includes the gathering and analysis of information, the drawing of conclusions, including the determination of causes and, when appropriate, the making of safety recommendations. 2.3.4 Investigator in charge A person charged, on the basis of his or her qualifications, with the responsibility for the organization, conduct and control of an investigation. 2.3.5 Chief Inspector The Chief inspector of Air Accidents and includes any deputy chief inspector; 2.3.6 Inspector Aperson appointed as an Inspector of Air Accidents 2.3.7 Field Investigation An investigation which is not intended to be the subject of a report by an Inspector to the Minister. 2.3.8 Formal Investigation An investigation which is intended tobe the subject of a report by an Inspector to the Minister. 2.3.9 Serious Injury An injury which is sustained by a person in a reportable accident and which: Requires his stay in hospital for more than forty-eight hours commencing within seven days from the date on which the injury is received results in a fracture of any bone except simple fractures of fingers, toes or nose. involves lacerations which cause severe nerve, muscle or tendon damage involves injury to any internal organ; or involves second or third degree burns or any burns affecting more than five per centum of the surface of the body. 2.3.10 Aircraft. Any machine that can derive support in the atmosphere from the reactions of the air other than the reactions of the air against the earths surface. 2.3.11 Causes. Actions, omissions, events, conditions, or a combination thereof, which led to the accident or incident. 2.3.12 Flight recorder. Any type of recorder installed in the aircraft for the purpose of complementing accident/incident investigation. 2.3.13 Maximum mass. Maximum certificated take-off mass. 2.3.14 Operator. A person, organization or enterprise engaged in or offering to engage in an aircraft operation 2.3.15 Preliminary Report. The communication used for the prompt dissemination of data obtained during the early stages of the investigation. 2.3.16 Safety recommendation. A proposal of the accident investigation authority of the State conducting the investigation, based on information derived from the investigation, made with the intention of preventing accidents or incidents. 2.3.17 State of Design. The State having jurisdiction over the organization responsible for the type design 2.3.18 State of Manufacture. The State having jurisdiction over the organization responsible for the final assembly of the aircraft 2.3.19 State of Occurrence. The State in the territory of which an accident or incident occurs. 2.3.20 State of the Operator. The State in which the operators principal place of business is located or, if there is no such place of business, the operators permanent residence. 2.3.21 State of Registry. The State on whose register the aircraft is entered. 2.4 Investigation Responsibility for Instituting and Conducting the investigation.( ICAO , 2001) 2.4.1 Accidents or incidents in the territory of a contracting state. State of Occurrence The State of Occurrence shall institute an investigation into the circumstances of the accident and be responsible for the conduct of the investigation, but it may delegate the whole or any part of the conducting of such investigation to another State by mutual arrangement and

Greed and Malevolence in Macbeth :: Macbeth essays

The Power of Greed and Malevolence in Macbeth William Shakespeare's Macbeth is not necessarily a play of fate, but rather a tragedy that occurred as a result of uncontrollable greed and malevolence by Macbeth and his wife. The weird sisters only make suggestions about Macbeth's road to kingship; they do not cast spells to make true all their predictions. These interpretations lead Macbeth and Lady Macbeth to kill Duncan and secure the title Thane of Clawdor. While in kingship Macbeth elects to kill Banquo and his son, Fleance, for Macbeth was fearful about losing his throne to Fleance. Senseless violence and inner rage cause the King of Scotland to murder Macduff's children and wife. The predictions of the witches are only temptations. The weird sisters never tell Macbeth what to do with these suggestions. He is initially curious and disbelieving about these deceptive hags, but he takes their forecasts literally. The witches only make predictions about the future kingship of Macbeth: "All hail, Macbeth! Hail to thee, Thane of Cawdor." Macbeth, along with Lady Macbeth, was responsible for making the judgments that leads to the downfall and destruction of himself. The prophecies predicted by the weird sisters do occur, but one can conclude that latter events, such as the death of Macbeth, were not caused by their direct powers, but they were simply the witches' foreknowledge: "He (the apparitionist) will not be commanded. Here's another / More potent than the first." The vaulting ambitions of Macbeth and Lady Macbeth lead to the death of King Duncan. For the sake of Macbeth's ambition, he is willing to murder his cousin, Duncan. Macbeth realizes that murdering his king is perfidious and blasphemous because every king is set on throne by God; he is driven by his undying aspiration to steal the throne and be king: "I have no spur / To prick the sides of my intent, but only / Vaulting ambition, which o'erleaps itself / And falls on th' other." Lady Macbeth is also moved by her avarice to be alongside her husband on the throne. She uses all her strength and intelligence for evil purposes; this confident and arrogant authoritarian instills the plan of the murder (of Duncan) to Macbeth: "We fail? / But screw your courage to the sticking place / And we'll not fail. When Duncan is asleep." Macbeth is the only individual responsible for the death of his friend Banquo and the flight of Banquo's son, Fleance.

Model Stock Research for the Time-Warner Company Essay

Macroeconomic Review Being one of the fastest-paced and highest-profile industries in the world, the media sector has been in a whirlwind of change this past decade. There has been an explosive boom and bust and, of late, boom again, of internet technology. This has dramatically influenced media delivery. Clampdowns on shady accounting practices, assets changing hands and a more discerning and demanding media audience have also ensured that changes in the industry occurred at break-neck speed. This is why global media giant, Time Warner, has sought to embrace these challenges of the Information Age. Indeed, Time Warner had uniquely positioned itself to benefit from the explosive changes. Their size and resources make them a formidable competitor in the media arena because of their efficiency in an increasingly global environment. In front of the media arena, the average US citizen is confronted by more than 1,500 dailies, over 5,700 weekly newspapers, some 17,000 magazine titles, 10,000 commercial radio stations and more than 1,600 TV stations. Nielsen Media Research reported that as of January 2003, 98.2% of the over 100 million households own at least one TV set, with 69.8% of them hooked up to cable. The US also exports a massive amount of its media, which has become almost staple fare around the world. CNBC alone boasts a reach of 192 million households worldwide, with 82m of them in the US and Canada. The latest available GDP statistics from the US Bureau of Economic Analysis show that the radio and TV industry contributed $72.9 billion to the US GDP in 2001, up from $71.1 billion in 2000. Total US GDP for 2001 was $10,082 billion. In 2006, the US GDP is estimated at 3.2%, while the interest rates are at 8% (See Table 1). Table 1. United States – Country Data and Market Indicators (EIU, 2006). Series Units 2001 2002 2003 2004 2005 2006 Gross Domestic Product Key indicators GDP (% real change pa) 0.8 1.6 2.5 3.9 3.2 3.2 Fiscal and monetary indicators Interest rates Lending interest rate (%) 6.9 4.7 4.1 4.3 6.2 8.0 Inflation and wages Consumer prices (% change pa; av) 2.8 1.6 2.3 2.7 3.4 3.3 Demographics and income Population M 285.1 288.0 290.8 293.6 296.4 299.7 GDP per head ($ at PPP) PPP 35524.2 36352.8 37691.7 39894.3 42023.7 44110.0 Population Population M 285.1 288.0 290.8 293.6 296.4 299.7 Population (% change pa) 1.0 1.0 1.0 1.0 1.0 1.1 Labour force M 143.8 144.9 146.5 147.4 149.3 151.4 Recorded unemployment (%) 4.7 5.8 6.0 5.5 5.1 4.6 Income GDP per head US$ 35524.2 36352.8 37691.7 39894.3 42023.7 44110.0 Private consumption per head US$ 24745.9 25523.4 26491.1 27969.4 29495.1 30960.0 GDP per head ($ at PPP) PPP 35524.2 36352.8 37691.7 39894.3 42023.7 44110.0 Real GDP growth per head (% pa) -0.2 0.6 1.5 2.9 2.2 2.1 Personal disposable income bn  LCU 7486.8 7830.1 8162.5 8681.6 9036.1 9580.2 Personal disposable income (US$) M  US$ 7486840.0 7830080.0 8162530.0 8681560.0 9036100.0 9580150.0 Real personal disposable income (US$ at 1996 prices) M  US$ 6860090.0 7074210.0 7231140.0 7493920.0 7581650.0 7811600.0 Real personal disposable income (% change pa) 1.9 3.1 2.2 3.6 1.2 3.0 Average real wage index (LCU, 1996=100) 107.3 108.9 109.4 108.9 108.1 108.6 Average real wages (% change pa) 1.0 1.5 0.4 -0.5 -0.7 0.5   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Fact remains that US is the world’s biggest media producer as well as consumer. Advertising is the main source of revenue, although some sectors also create revenues from subscriptions. Media concerns with entertainment arms have additional sources of income through takings from gaming, distribution rights, amusement park entrance fees and spin-off merchandise. Also, entertainment is one of America’s top exports. In 1999, in fact, film, television, music, radio, advertising, print publishing, and computer software together were the top export, almost $80 billion worth, and while software alone accounted for $50 billion of the total, some of that category also qualifies as entertainment—video games and pornography, for example. Hardly anyone is exempt from the force of American images and sounds. . . . American popular culture is the nemesis that hundreds of millions—perhaps billions—of people love, and love to hate. The antagonism and the dependency are inseparable, for the media ï ¬â€šood—essentially American in its origin, but virtually unlimited in its reach—represents, like it or not, a common imagination. However, media availability is somewhat disproportionate to the time an average American has to consume information. But the industry is a lucrative one and media spinners are finding new ways to make the public continue to consume media and pay for it. In 2001, companies in the media industry recorded total revenues of $261.7 billion. Although this was a growth over 2000’s $255.2 billion, operating income had been steadily falling since 1998. This can be attributed largely to the fact that cable and satellite providers experienced rising maintenance costs and were investing heavily in new technology. The decline in income is expected to ease over the next few years as investments on new delivery channels start to bear fruit. Because of this, many companies started holding back on advertising activities following the recession in 2001. The 9⠁„11 tragedy, the subsequent wars in Afghanistan and Iraq and their accelerator effect on the economic downturn, brought increased uncertainties to the stock markets and exacerbated the advertising slowdown. This downtrend was reversed throughout most of 2002 as many believed a swift end to the Iraqi invasion would emerge. Market jitters returned in the third quarter of 2002 and earlier in 2003, which somewhat stalled advertising expansion as the Iraqi situation refused to look as good as the President’s claims. However, tentative cheers on US trading floors and moderate improvements in the job market slowly built up advertising momentum in the third quarter of 2003. For example, Time-Warner’s strategy has insisted on managing their costs aggressively. In 2005, they undertook difficult, but necessary, restructurings at a number of our divisions to ensure that their costs are aligned with their long-term business needs. At Warner Bros., for example, they streamlined their management to create a single Home Entertainment Group to oversee the digital delivery of entertainment to consumers. Looking ahead, they plan to reduce costs by $1 billion across their businesses in 2006 and 2007. Trade disputes with the EU and China and persistent trouble for US interests in Europe and the Middle East are forming grey clouds over the economic horizon. Also, big budget media advertising, with the exception of outdoor advertising, is invariably sparse at year-end when readership and viewership are traditionally down due to a lack of new programs and major sporting events. Consumers are usually on vacation or out holiday shopping at year-end, rather than at home reading or sitting in front of ‘the box’, giving media advertising less reach. However, prudent companies are aware that a prolonged advertising drought can adversely affect brand recall and consequently spell slower product movement. Thus, although advertising revenue increases were more modest than expected in 2003, with the exception of cable television, syndication and Spanish network segments. This income source is predicted to grow in 2004. As Time Warner moves forward with these external challenges, the foundation of their strategy is to invest our financial resources in a disciplined manner to provide the best possible return to their shareholders. This means focusing on the right businesses. Their board of directors and management continuously evaluate Time-Warner’s businesses to ensure that they meet their standards for financial performance, growth and return on investment. Industry Overview The United States market for cable and satellite TV services has grown by 6.5% since 2003 to reach a value of US$57.6 billion in 2004. Over 2001 to 2005, value sales increased by 36.5%. Over 73 million American households subscribed to cable television services with 34% of them having digital service in 2004. In 2004, the average monthly price for expanded basic programming packages was US$38.23. Satellite TV services are expected to continue to increase in popularity. Satellite TV is offering aggressive pricing packages relative to cable, an increasing number of special interest channels and local channels in all markets. Local channels were previously unavailable to subscribers. Despite the spate of satellite TV, Time Warner’s networks and cable segments have been posting consistent revenue growth in recent years. Revenue from the networks segment increased from $8,434 million in 2003 to $9,611 million in 2005, representing a growth rate of 7%. Revenue from the cable division increased from $7,699 million in 2003 to $9,498 million in 2005, representing a growth rate of 11%. These two segments together contribute more than 42% of the total revenues of the company. Increasing segmental revenues have contributed in the company’s overall revenue growth of 3.7% in fiscal 2005 over fiscal 2004. This is why cable television will likely continue to generate healthy revenue growth for owners of those networks, though gains may well be slower than over the past several years. Beneficiaries of ongoing strength in cable include Viacom, Time Warner, News Corp. and Disney. The most significant changes in the media industry in the past decade have been in its adoption of the internet technology. The internet has evolved from being just a communications tool to becoming an important entertainment, business and marketplace platform. Catching up is the cable segment, which is embracing broadband technology in earnest and is rapidly overtaking the role of traditional dialup technology in supplying telephony and especially internet services to North American homes. From 1996 through 2003, the US cable industry spent $75 billion in private capital on plant and equipment as well as infrastructure upgrades, according to NCTA. The cable industry in its totality is moving from analog to digital technology to compete with the high-quality, low-interruption signal transmission broadcast by DBS companies, which have been offering high quality, encrypted digital transmission almost since day one. The competition between cable and satTV is becoming more intense. Apart from normal TV programs and movie line-ups, both offer interactive (cable TV being a recent entrant) and internet technologies on their systems. Both are taking the TV experience to new heights. Not only can the viewer play interactive games on TV but they can also interact with programs they are watching, for example responding to interactive surveys or making immediate purchases on shopping channels via the remote control. Latest technological advancements also allow viewers to record, pause, forward and reverse live programs or watch them in slow motion or instant replay using digital⠁„personal video recording (DVR or PVR) and video on demand (VoD) devices for satTV and cable TV, respectively. Unfortunately, the digital revolution is bringing problems to some in the industry. Content and program providers are anxious over the dent DVRs and VODs may make in their earnings. How serious their concerns are remain to be seen, but observers of the industry are noting that a predecessor of DVRs and VODs, the VCR, was greeted with the same disquietude, which was soon replaced with blithe indifference as the technology propagated a new earning capacity, that is, the sale of videos. An issue that bothers media executives is their loss of control over viewers. Viewers can replay scenes they like during a commercial break, thus effectively bypassing messages from advertisers, who happen to be program sponsors. This could force advertisers to see TV as a less effective advertising channel than it used to be and give them better leverage at commercial slot price negotiation or cause them to adopt other advertising media. As viewers become more discerning, they are demanding greater viewing variety and higher quality programs. They are also getting hi-tech, seeking a greater, more interactive TV viewing experience much as they have come to expect from their personal computers. The FCC, the federal regulator for the media and telecommunications industry, is aware of this and is pushing the industry to hurry the digital transition. The FCC has mandated that all TV broadcast stations have High Definition TV (HDTV) broadcasting capability by 2006. This will mean a bigger outlay for broadcasters and cable companies in the coming few years: Broadcasters and program networks will have to invest in new cameras, titling and editing equipment and tape machines that support the digital TV (DTV) format and revamped rigs for DTV friendly TV vans. Cable operators need to convert all their equipment and set-top boxes. However, for viewers with HDTVs, the set-top boxes are bypassed. Time Warner had responded to this challenge through Warner Bros Entertainment, a subsidiary of the company when it tied up with CBS Corporation to form a new broadcast network. This new network, The CW, to be launched in late 2006, can significantly expand Time Warner’s customer base. Time Warner’s Cartoon Network channel entered into a joint venture with VIZ Media to form Toonami Jetstream, a new broadband service to provide streaming episodes of animation series. Toonami Jetstream will allow users to view episodes of Cartoon Network in their own time and also provide an alternative distribution vehicle for Time Warner. These alliances and joint ventures can provide Time Warner with a competitive advantage over its peers and enable it to enhance its revenue position. Expanding broadband market Most players in the cable industry have begun the digital journey but consumers may still need to dig into their pockets to enjoy the digital experience and make the analog age a thing of the past. They have to either buy new set-top boxes, which convert digital signals to analog, or buy HDTV sets, which range between just under $1,000 to almost $10,000. Early in June 2003, when the FCC eased its decades-old restrictions on the size of media entities, controversy erupted. Large media companies hailed the move. Consumer groups condemned the decision as bad news for democracy and local content. The new rule, which allowed media companies to have US penetration cap of 45% instead of the old 35%, was good news to media giants who were operating at close to the 35% limit. They had been lobbying hard for the lift, including Viacom, whose $40.6 billion purchase of CBS makes it the US’ largest single operator of TV and radio stations, reaching 41% of the total national broadcasting market. The 45% rule looked set to open the floodgates for other media liberalization that would allow TV, radio and newspaper owners much more room for consolidation. If a large TV station acquired a small, one-paper town market, the community would be dominated by that entity. This would threaten local content in the community’s media. However, the 45% rule was blocked by Congress in a massive 400 to 21 vote in July 2003. This was followed by a stay order by a federal court some few weeks later. Should the FCC fail to appeal to have the new cap reinstated, media giants who have exceeded the old limit will have to shave off their access assets and those nearing the demarcation point will need to strike out expansion as a way to increase income. Time Warner, which garners some revenues from films, should grow its studio profits well. It is releasing several DVDs of popular titles. Film profits generally sway on the timing of releases. Viacom, Disney, and Dreamworks Animation also have large stakes in the sector, which will likely move further towards home viewing via digital cable and the Internet. Having many cities that are highly cosmopolitan, the US has various minority and ethnic groups which are looking for more than just generic programs that do not necessarily depict their lifestyles or cater to their tastes. Many minority group communities have been addressing these issues by producing their own newspapers, TV programs and radio broadcasts. As their respective populations grow, so has the amount of business of their specialty media. Having long observed the growth of these niche markets, bigger players are now making moves toward grabbing a slice of the ethnic specific media pie that serve large minority communities. Previously, being culture sensitive meant placing non-Caucasian actors in supporting roles but, belatedly, major media companies are dedicating whole TV and audio channels to specific ethnic groups. In the media industry, the basic services were the largest sector, accounting for 53.1% of sales in 2004, worth US$30.6 billion. Advertising was the most dynamic sector. Growing from US$8.5 billion in 2000 to US$15.9 billion in 2004, this sector achieved 87% growth. Pay-per-view movies grew by US$400 million over the review period, to account for 2.8% of sales in 2004. In 2004, premium channels accounted for US$9.5 billion, or 16.5% of the market, realizing 13% growth. Cable TV continues to dominate the premium TV market with 76 percent of households and its market penetration is still increasing. Table 2. United States – Media Market Sectors US$ billion 2000 2004 Advertising 8.5 15.9 Basic services 24.1 30.6 Pay-per-view movies 1.2 1.6 Premium channels 8.4 9.5 Source: Euromonitor International In terms of performance, Comcast Corporation was the leader of cable and satellite TV services in the United States in 2004 with 32% market share. It maintained its leading position through product innovation and differentiation including its ON DEMAND offerings, increased regional sports programming and its leading Comcast.net portal. Time Warner Inc had the second largest market share in 2004 at 17.2%. This was an increase of 9.5% in 2003. AOL Time Warner was able to increase its position by taking a lead role in offering new products to its customers including High Definition Television, the Digital Video Recorder, Wireless Home Networking, and Digital Telephony service. Through expansion of its US market, Cox Communications Inc. increased its market share by 7.7% from 2003 to 9.7% in 2004. Charter Communications saw its market share decrease to 9.3% in 2004. Table 3. United States – Media Market Share % value of market sector 2004 Comcast Corporation 32.0 AOL Time-Warner Inc 17.2 Charter Communication 9.3 Cox Communications Inc 9.7 Adelphia 8.2 Source: Euromonitor International In the global arena, Hollywood’s long-standing tensions with China has taken its toll as Time Warner is pulling out of an ambitious, four-year theater venture in the country because of tightened restrictions on foreign ownership. The decision was announced in November 2006 came after its Warner Bros. unit tried unsuccessfully for more than a year to negotiate a compromise with the Chinese government over a July 2005 ruling requiring outside investors to cede control in ventures to their Chinese partners. Warner’s decision underscores Hollywood’s frustrations operating in China. Although studio executives consider China to be the world’s best growth opportunity for U.S. entertainment, they also are wary of expanding there, in part because of what they believe are burdensome government rules. Although the media market is fraught with competitors, Time Warner had been a formidable competitor because it offers diversified, yet complimentary products and services. The company operates in print media, television, cinemas, internet, cables services and wired broadband segments. Leveraging its operations in complimentary segments the company has been able to reproduce the same content in various formats to generate additional sales. Its wide product portfolio has also allowed the company to offer superior bundles to the customers. Company Analysis – Time-Warner Time Warner is one of the world’s leading media and entertainment companies. Its major businesses encompass an array of respected and successful media brands. Among the company’s brands are HBO, CNN, AOL, Time, Fortune, People, Sports Illustrated, and Time Warner Cable. CNN operates in nearly 200 countries, while AOL is the world’s leader in interactive services with 19.5 million subscribers in the US and 6 million in Europe at the last count. Time Warner’s cable business, Time Warner Cable (TWC), is the second-largest cable operator in the US while Warner Bros is one of the worlds leading studios. These are well established brands with global brand recall. The company can leverage the equity of its brands to generate sales. New developments continue to stream in Time-Warner. In 2004, Time Warner Cable announced the creation of a new business unit, Time Warner Cable Voice Services. This creation was responsible for overseeing the rollout of its residential telephone service, known as Digital Phone. During the same year, AOL Europe, and Google, announced a new multi-year agreement to provide targeted advertising from Google’s AdWords advertisers for the subscribers of AOL Europe. In February 2005, Warner Home Video announced the formation of CAV Warner Home Entertainment Company, a joint venture with China Audio Video. The company entered into a joint venture with New Line Cinema to form Picturehouse. AOL announced the acquisition of Weblogs, a blogging company. AOL also acquired an online digital music subscription company called MusicNow in November 2005. During the same month the company, along with several other cable companies concluded an agreement with Sprint. According to the agreement, the companies would form a joint venture for providing wireless and wireline entertainment product. AOL acquired Truveo, a pioneer in internet video searching in January 2006. In the same month Time Warner entered into an agreement with CBS to launch a new television network, The CW. Cartoon Network formed a joint venture with VIZ Media to create Toonami Jetstream, to provide broadband video services in April 2006. Time Warner has been continually profitable. The company recorded revenues of $43,652 million during the fiscal year ended December 2005, an increase of 3.7% over 2004. For the fiscal year 2005, the US, the company’s largest geographic market, accounted for 79% of the total revenues. Time Warner generates revenues through its five business divisions: filmed entertainment (26.4% of total revenue during fiscal year 2005), networks (21.3%), cable (21%), AOL (18.3%), and publishing (12.9%). During the fiscal year 2005, the filmed entertainment division recorded revenues of $11,924 million, an increase of 0.6% over 2004. The networks division recorded revenues of $9,611 million in fiscal year 2005, an increase of 6.2% over 2004. The cable division recorded revenues of $9,498 million in fiscal year 2005, an increase of 12% over 2004. The AOL division recorded revenues of $8,283 million in fiscal year 2005, a decrease of 4.7% from 2004. The publishing division recorded revenues of $5,846 million in fiscal year 2005, an increase of 5% over 2004. By geography, the U.S. remains Time Warner’s largest geographical market, accounted for 79% of the total revenues in the fiscal year 2005. Revenues from the US reached $34,469 million in 2005, an increase of 2.7% over 2004. Other international countries accounted for 6.7% of the total revenues in the fiscal year 2005. Revenues from other international countries reached $2,907 million in 2005, an increase of 4.5% over 2004. The UK accounted for 6.6% of the total revenues in the fiscal year 2005. Revenues from the UK reached $2,886 million in 2005, an increase of 15.1% over 2004. Germany accounted for 2.8% of the total revenues in the fiscal year 2005. Revenues from Germany reached $1,233 million in 2005, an increase of 6.2% over 2004. France accounted for 2.2% of the total revenues in the fiscal year 2005. Revenues from France reached $941 million in 2005, an increase of 7.1% over 2004. Canada accounted for 1.4% of the total revenues in the fiscal year 2005. Revenues from Canada reached $625 million in 2005, an increase of 24.3% over 2004. Japan accounted for 1.4% of the total revenues in the fiscal year 2005. Revenues from Japan reached $591 million in 2005, a decrease of 13.7% from 2004.    Financial Statement Analysis Company Posted Sales Fiscal Year Total Sales 2003 39565 2004 42089 2005 43652   Profitability Ratios 2007* 2006* 2005 2004  Ã‚  Ã‚  Ã‚   2003   Sales Gross Margin Operating Margin (%) Pre-Tax Margin (%) Net Profit Margin (%) Accounts payable Net Expenses Inventories Revenues per share Cash-Flow per share Earnings per share 46500 0.4 30    8.3          12.9 3 1.1 44900 0.4 30    11.4          11.8 3.12 1.35 43652 0.043 26.06 9.37 6.65 1,380,000 13,676,000 1,806,000 9.705 1.374 0.62 42089 0.042  Ã‚  Ã‚      32.008 11.66  Ã‚  Ã‚   7.99 1,494,000   13,094,000   1,737,000   9.354 2.076 0.68 39565 0.041   30.68 11.42   6.67   1,629,000 12,559,000 1,390,000 9.03 2.024 0.68 *Projected (Source: Valueline Investment Survey). Time-Warner remains to be an otherwise bright entertainment conglomerate. The company’s networks and cable segments have been posting consistent revenue growth in recent years. Revenue from the networks segment increased from $8,434 million in 2003 to $9,611 million in 2005. Revenue from the cable division increased from $7,699 million in 2003 to $9,498 million in 2005. These two segments together contribute more than 42% of the total revenues of the company. Increasing segmental revenues have contributed in the company’s overall revenue growth of 3.7% in fiscal 2005 over fiscal 2004. After trying to devise a way to maintain AOL’s subscription service in a high-speed world, management finally threw in the towel and decided to give AOL’s services away for free, focusing on advertising revenue. The move may have been late, but not so late that it won’t help stem AOL’s user base. The big concern is if advertising revenues will be sufficient to offset subscription losses. Still, this property is an important part of the company’s overall collection of media-related businesses. Moreover, the performance of the filmed entertainment segment and AOL segment has been weak in the past three years. Revenue from the filmed entertainment segment grew by as little as 0.6%. Revenues from the AOL segment declined from $8,598 million in 2003 to $8,283 million in 2005, representing a growth rate of -2%. The two segments contribute around 45% of the total revenues of the company. A weak operating performance by these segments indicates that the company has been losing ground to its competitors. The reason for this projection and forecasts is that TWX remains to be garnering operating profit. Although net profit have declined in fiscal 2005 compared to fiscal 2004, operating profits and net profits declined 26.7% and 13.6% respectively in fiscal 2005. The company’s operating margin declined from 14.6% in fiscal 2004 to 10.4% in fiscal 2005, while the company’s net profit margin declined from 8% to 6.6% in the same period. Declining profit margins indicate increasing costs and can adversely affect the company’s long term financial position. Declining cash from operating activities Time Warner’s cash flows from operations have been declining in recent years. Cash from operations have declined from $6,601 million in fiscal year 2003 to $4,965 million in 2005. Declining cash flows can force the company to borrow external capital to fund its growth plans, which could prove to be expensive. TWX Dividend Rate Per Share ($) Shares Outstanding (M) Ave. Daily Volume (M) Beta Shareholders Market Cap ($M) Institutional Holdings (%) Yield (%) 12-month P/E   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   0.22 3972.58 23.44 2.0329 56,500 83066.5 72 1 24.6 We can use the dividend discount model to estimate the cost of common stock. The difference between common stock and preferred stock is in our assumption about the growth pattern of future dividends. With common stock, we typically assume that dividends grow at a constant rate into perpetuity. Then we can write the present value of the assumed dividend stream as P 0   = D 1 ————————- ( 1 + k s ) where, P0 = the common stock price per share. D 1 = the dividend per share one year from now. ks = the required rate of return on common stock. If we solve for ks, we get: ks   = D 1 ————————- P0 At present, TWX’s stock price was at $20.14. TWX has historically paid out about 40 percent of its earnings as dividends. Therefore, with a forecast of about $0.55 per share in earnings for next year, TWX’s dividend would be forecast to be $0.55 Ãâ€" .40 = $0.22 per share. So, the dividend yield, defined as D1/P0, is $0.22/$20.14 = .0109, or 1.09 percent. TWX’s Key Growth Rates and Averages Past Growth Rate (%) 1 Year 3 Years 5 Years 9 Years Sales 3.71 2.56 29.05 49.46 Net Income -9.47 Ratio Analysis (Annual Average) Net Margin (%) 6.65 7.41 LTD of Capitalization (%) 19.48 21.01 20.71 21.15 Return on Equity (%) 4.71 5.32 8.18 Pricing/Earnings Recent Price 20.14 P/E Ratio 15.612 P/E (Trailing) 14.183 P/E (Median) NMF Rel. P/E Ratio 0.724 Ratings Financial Strength B++ Stock’s Price Stability 40 Price Growth Persistence 20 Earnings Predictability 20 Relative Value Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 Free CFs 11.8 12.8 13.5 13.9 16.0 17.9 20.1 22.5 PV of FCFs 10.17 9.58 8.65 7.68 7.62 7.36 7.10 WACC = 16% Long run g = 12% MV of Debt = $202 million No. of shares = 50 PV of FCF1-7   = 50.97 TV at Year 7 of FCF after Year 7 = FCF8/(WACC – g) = $448.00 PV at of TV at Year 0 = TV/(1+WACC)7 = 183.88 Sum = Value of the Total Corporation = $234.85 million Less: MV of Debt and Preferred = $202 million Value of Common Equity = 32.85 Divide by No. of Shares = 50 Value per Share = Value of Common Equity/No. Shares = $0.66 Assuming that beginning in the fourth year, the free cash flows are to grow by 10% less than previously predicted:    Year Old FCF New FCF 1 2001 $11.8 $11.8 2 2002 $12.8 $12.8 3 2003 $13.5 $13.5 4 2004 $13.9 $12.5 5 2005 $16.0 $14.4 6 2006 $17.9 $16.1 7 2007 $20.1 $18.1 8 2008 $22.5 $20.2   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   We will assume that the long-term growth rate and WACC will be the same as previously assumed. From this information, we can do the following calculations. Total PV of New FCF’s, Years 1-7 =$55.09 FCF 8   = $20.23  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   $20.23 TV   at Year 7: $505.76  Ã‚  Ã‚   = ——————- PV of TV: $178.95  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   4%  Ã‚   = WACC- gL Market Value of Total Company =   $234.05 Less: MV of Debt = $202 Market Value of Equity = $32.05 No. of Shares = 50 Value Per Share = $0.64 versus $ 1.37 under original assumptions. Therefore, a 10% reduction in some of the cash flows leads to a 53.28% decline in the value per share. As of September 30, 2006, TWX had net debt of $202 billion (including $11 billion on the Adelphia deal), and a net debt/EBITDA ratio of about 3.0X. In 2005, TWX paid out $2.8 billion related to a government settlement. Including the acquired systems, management sees low double-digit adjusted EBITDA growth in 2006 (off a restated base of about $10 billion in 2005), with 35% to 45% conversion of EBITDA into free cash flow. Management plans about $1 billion of cost cuts in 2006 and 2007 (excluding the $1 billion of cuts at AOL as previously mentioned). We project free cash flow of over $11 billion in 2006 and 2007 combined. Pursuant to a $20 billion share buyback program, TWX plans to repurchase about $15 billion of its shares in 2006, and the remainder in 2007. Over the longer term, the company targets a 3X leverage ratio. TWX began paying a quarterly cash dividend of $0.05 per share on its common stock in the 2005 third quarter (about $900 million a year), raising it to $0.055 in July 2006. TWX would also receive about $600 million in cash from the dissolution of its cable joint venture with Comcast. TWX undertook several asset divestitures in the past few years to enhance its financial flexibility, notable among which are the 2004 sale of its Warner Music Group (for $2.6 billion in cash), a 50% stake in Comedy Central ($1.2 billion), a DVD/CD manufacturing business ($1 billion), and two NBA and NHL professional sports teams (undisclosed). Also, in 2006, TWX sold its book publishing business for $532 million in cash, and its Turner South network for about $375 million in cash. TWX also raised $239 million from the sale of stock in Time Warner Telecom.

Ecco’s global value chain management Essay

1. Describe the competitive environment of ECCO and determine how well ECCO is positioned (vis-à  -vis the competitors) to take advantage of changes in the industry. http://wulibraries.typepad.com/files/footwear.pdf 2. Analyze ECCO’s global value chain. How well does this configuration match the drivers in the industry? Analyze ECCO’s global value chain. High demand for quality and reduced lead times led the company to a self-sufficiency approach on streamlining its entire value chain from raw hides to finished shoes unlike its major competitors who only designed and marketed their products without in house manufacturing. In having a global network of tanneries, production facilities, research centers and distribution centers, ECCO is able to meet customer demands in specific geographic locations in terms of response times which lead to customer satisfaction. Additionally the firm accrues from benefits of lower labor and production costs and different expertise levels in different locations which can be in turn transferred down to the customers. http://www.pwc.com/en_GX/gx/operations-consulting-services/pdf/pwc-supply-chain-and-risk-management.pdf According to Porter’s value chain framework, ECCO utilized various strategies to achieve a balance of responsiveness and efficiency in their efforts to improve its global value chain . http://www.strategicmanagementinsight.com/tools/value-chain-analysis.html Specifically, the firm utilized: 1) Firm infrastructure In having a factory based in Slovakia, uncertainty and risk of political instability in Thailand could be mitigated by helping to drive up volume between plants and ensuring quicker delivery speeds to markets in Russia & Poland. 2) Human Resources Management ECCO ensured knowledge remained in the company through promoting workers from within and improving worker skills through trainings. 3) Technological Development R&D activities were relocated to the production sites where they could adequately support production processes and optimization of materials. The key competencies of the firm were in product development and production technology to ensure customer comfort in the shoe designs. 4) Procurement ECCO maintained high demands for quality and lead times for the vendors and worked only with experienced firms in building their factories. 5) Inbound Logistics and Outbound Logistics Streamlining of logistics was performed through location of tanneries adjacent to shoe production facilities in Indonesia & Thailand Distribution centers in United States and Denmark were strategically located to serve the market demand in order to match market needs. Appropriate modes of transport such as by sea, vans, freight planes and lorries were utilized depending on the nature and urgency of deliveries. 6) Operations The firm also accrued benefits of sustainability by having control over the entire value chain as it could directly tailor its R & D efforts into production and closely monitoring operations. The distribution centers adapted to changing business environments by expansion to meet capacity demands and closure of some warehouses when sales to the Danish market reduced. 7) Marketing & Sales Utilization of specialty outlets and multi-brand stores ensured ECCO’s shoes would be accessible to the target market of consumers focused on high quality rather than fashion and elegance. Establishment of sales subsidiaries and production units spread all over the world enable the firm to save in terms of labor costs and spread risk. ECCO’s marketing team screened samples and made forecast volumes and production styles before the set shoes were scheduled to be in demand. 8) Service The firm concentrated on utilizing special expertise to its advantage in the case of the Thailand firm producing complicated shoes due to the ability of the Thais to deliver first class workmanship. In addition to shoe manufacture, ECCO supplied leather to auto & furniture industries which offered an alternative market for the tanneries and generated more revenue for the firm. How well does this configuration match the drivers in the industry? Ownership of tanneries, factories and leather research centers  maintained the firm’s brand of commitment to quality and boosted the company’s ambition and confidence in delivering products that met customer expectations In reducing the number of vendors, the company was able to maintain high quality levels through close quality control measures and maintain its brand image of working to create the perfect shoe. The firm also made compromises to its approach in some cases by outsourcing its production for shoes that could not be nefit from its in-house technology. Most firms in the shoe industry outsourced production as a way to cut production and vendor logistic costs. 3. ECCO has a fully integrated vertical value chain. What are the pros and cons of this strategy? What economic and strategic factors should be analyzed to answer this question? Pros: Higher demands of quality can be achieved (e.g. through better quality control) supports the company’s vision of high quality products Core Technology stays within the company You have more price control (=> less exposed to price fluctuation) Eliminate the intermediaries (and obtain the margin of supplier / intermediaries) Higher economies of scale Ability to access leading expert knowledge about tanning Implement shoe and company specific Research & Development (for example less pollution => can be used for marketing) Potential for growth Access new markets  attaining market power => eventually monopolize the market Get into new markets (auto and furniture industries) => diversification => risk spreading Shorter lead times achievable Shows a high level of ambition and confidence Less transaction cost Easier coordination of all stages to reach the objective of customer’s satisfaction More control: You can have more influence on how the product is presented to the people and you can block competitors from getting access to scarce resources Reduce transportation costs if common ownership results in closer geographic proximity ECCO example: factory and tannery in China Increase entry barriers to potential competitors, for example, if the firm  can gain sole access to a scarce resource Cons: Difficulty of integrating the different stages into one entity It requires different skills It may decrease the focus on core competencies High organizational requirements => eventually costs too high It deepens the position in the same field => less flexibility for different variants => not responsive to changing wants of the customer e.g. ECCO is attached to leather shoes Maybe less quality because of lack of competition Strategic and economic factors that should be analyzed: How technology intensive is the market? What skills are needed? Do we fulfill these needs? Can we compete with other companies? Is there a market entry barrier? How much do we have to invest? How many distributors / suppliers are available? How competitive is their market? How big is their margin and market power? Will an integration result in less price fluctuation? Do we have enough resources to realize the organization of the whole supply chain? Do we really want to reinforce our position as a leather shoe fabricant? Or do we want to achieve higher flexibility to open chances to enter new markets? Do we generate a higher supply chain surplus with a vertical strategy? Are there laws or political issues to be considered? Are current suppliers unreliable, expensive or cannot supply the required inputs? References: http://www.strategicmanagementinsight.com/topics/vertical-integration.html http://smallbusiness.chron.com/advantages-vertical-integration-strategy-20987.html http://www.quickmba.com/strategy/vertical-integration/ 4. Is ECCO following the inside-out or outside-in strategic perspective? What are the implications of this choice and how can ECCO increase their sales/marketing efforts? ECCO is following the inside-out strategic perspective. Inside-out strategic perspective definition: â€Å"You pick your own brand direction. You take a stand, confidently go out to the world and declare, â€Å"This is what we stand for and the way we are going.† A combination of gut instincts and sheer courage is enough to create the conviction that your brand strategy will resonate with your target audience. You believe with all your heart that by sticking to your guns, you’ll win a loyal following.† http://thefinancialbrand.com/1162/inside-out-vs-outside-in/ Evidence supporting this perspective in the paper: â€Å"most wanted brand within innovation and comfort footwear – a position that can only be attained by constantly and courageously researching new paths†¦Ã¢â‚¬  – Company Vision Statement â€Å"Evidently, trends in the market it terms of fashion and elegance were important, but usability was ECCO’s highest design priority.† This indicates that ECCO has chosen their brand direction, and even though they do follow market trends, they are maintaining their current course. â€Å"ECCO is not a fashion brand and it never will be. We do not sell shoes where the brand name is the most important and quality is a secondary consideration. Primarily, we sell high-quality shoes and that is where we seek recognition.† – Soren Steffensen (Executive Vice-President, ECCO) A â€Å"fashion brand† would be a good example of a company utilizing an outside-in strategic perspective. Steffensen also addresses ECCO’s brand direction in this quote. Implications of following the inside-out strategic perspective: Often not enough market research is done by companies following this strategic perspective because they are supremely (over) confident in their vision. Inside-out strategic perspective leads to undifferentiated brand strategies like â€Å"excellent usability†, â€Å"high quality†, or â€Å"great value†. An inside-out brand strategy really doesn’t take into account wants/needs of customers. Instead, ECCO attempts to dictate what these wants and needs should be. Ways to increase sales/marketing efforts: ECCO can increase sales by shifting more from â€Å"inside-out† to â€Å"outside-in† in their strategic perspectives. This means instead of simply saying â€Å"X is our priority and Y and Z are our goals†, the company should take customer wants/needs and market trends more into account and tailor their brand direction around this target market. Even though Soren Steffensen states that ECCO is essentially a shoe company focused on utility, perhaps sales would increase with a greater focus on fashion. A company with a greater  emphasis on fashion would probably be a company utilizing an outside-in strategy. Companies based on an inside-out strategic perspective usually require more extensive marketing efforts than companies founded on an outside-in perspective. This is due to the fact that inside-out companies are creating products that the customer has less input in. With this less input, the customer needs to be convinced to purchase the product. 5. How is family ownership affecting ECCO? Comment on the corporate ownership structure and its implications for strategy-making and implementation. What alternatives exist?