Milestones in Professional Nursing Essay

The origin of professional organization was an important milestone in the development of professional nursing. In early period nursing was viewed as an extension of motherhood, midwifery or religious duty (advance practice nursing, (Denisco S.M, 2nd edition, P.7),and this primary nursing was job was carried out by the untrained people who just did it for room and board. Form here now nursing has grown to stage where we have DNP programs, nurse scientist, and many more advance practice roles.. While looking to this development of nursing through the years in spite of strong opposition from the medical community nursing has gown and I believe the role of professional organization has been spectacular The professional education created human mobility, more and more women came to nursing education this upward human mobilization helped a to argue for profession. And also collective efforts from these professionally educated nurses increase the power and provided a place for nursing in professional group Human beings have a tendency to congregate, talk among themselves, and advocate for their causes. This has certainly occurred in nursing as evidenced by the breadth and depth of the various nursing groups that seek to enhance the work of nurses generally and in their specialty areas. There are over a hundred national nursing associations and many other international organizations. The website, Nursing Organization Links (NOL, 2011), maintains a web-based list of organizations. Among those hundreds of organization two of them need special emphasis, American nurses association (ANA) and National league of nursing (NLN) The first nursing organization was American society of superintendent of training school (1893) they fought for uniform standard for nursing education and training and this society later became national league of nursing. The current ANA (1911)who is fighting for the rights of nurses representing 1.9 million nurses in USA, was originally formed as association of trained nurses of USA and Canada(1898).ANA worked hard to define the code of ethics for nurses, for the social policy as well to define the scope and practice of nursing. Regulation via licensure was an early major milestone in ensuring patient safety and quality of nurses. Moreover they played vital role in professional advancement by fostering high standard of nursing care, promotion of nurse’s rights at work place, projecting nurse’s roles in public health improvement, negotiate with the law makers, played a vital role in generating the energy, flow of ideas, and proactive work needed to maintain a healthy profession that advocates for the needs of its clients and nurses, and the trust of society.

The Grafton Group Project

Student Names: Stephen Bray B00037534 Johnny GeraghtyB00020240 Alan LennonB00020051 Emmet Toft B00015911 [pic] Module Name:Strategic Management 2 Lecturer:Mr Liam Bolger Submission Date:29th April, 2010 Word Count:10,413 Table of Contents Background of the company:2 History of the company:3 The Environment7 PESTEL analysis7 Political7 Economic7 Sociocultural8 Ireland population by Age 20069 Technology10 Environment10 Legal10 Key drivers for change10 The Industry11 Porters Five Forces analysis11 Substitute products/services12 Bargaining power of buyers12 Bargaining power of suppliers12 Rivalry/Competition13 Opportunities and Threats14 Opportunities identified15 Threats identified16 Financial Information Analysis17 Analysis of Financial Reports18 Liquidity Ratios18 Profitability Ratios20 Net Profit Margin per Segment20 Earnings per share (EPS)21 Analysis:23 Liquidity:23 Profitability:24 Debt:24 Return on Investment:24 Borrowings:25 problems with accessing credit. 25 Share Price26 Source http:investor/graftongroupplc. com27 Liquidity: Excellent27 Financial Strength:Excellent27 Profitability: Fair27 Growth: 027 Source www. corporateinformation. com27 Outlook for the Future28 Rationalisation measures:29 Plans for 2010:29 Opportunities 2010:29 Group Strengths30 Weaknesses31 Strategic Capability31 Critical Success factors for customers (a sample of but not limited to):33 Corporate Governance35 Grafton Group’s Compliance with the Combined Code36 The Board – who reports to whom? 37 Directors’ Independence and Board Balance38 Performance of the Board39 Corporate Social Responsibility – CSR and Ethics39 Shareholder and Stakeholder Expectations and Influences41 Culture of Organisations and Grafton Group43 Strategic Direction and Corporate level strategy44 Corporate Parent44 The corporate parent as a Synergy manager45 Strategic Drift46 International Strategy48 Table Pre-Merger48 Table Post-Merger50 Traditional reasons for Merger failure51 Through a possible merger Grafton may:52 Strategic Directions53 Market Consolidation54 Market Diversity (Related)55 International strategy – Travis Perkins and Grafton merger? 56 Bibliography59 Plagiarism Disclaimer:60 Background of the company: Grafton Group plc is an independent, profit growth oriented company with operations primarily in the UK and also in Ireland. The Group has strong national and regional positions in the merchanting, DIY retailing and mortar markets. The Group aims to achieve above average returns for shareholders. Grafton’s strategy is to build on strong positions in businesses serving the UK and Irish construction sectors, to develop in related markets, and to grow in businesses with which it is familiar. In Great Britain, Grafton is the fourth largest merchanting business trading from 430 locations comprising 219 Builders Merchanting branches trading principally under the Buildbase and Jackson brands and 211 Plumbers Merchanting branches trading mainly under the Plumbase brand. EuroMix is the market leader in the UK dry mortar market where it trades from a network of nine manufacturing plants in England and Scotland. In Northern Ireland, MacNaughton Blair is one of the leading builder’s merchants in the province where it trades from 20 locations. In the Republic of Ireland, the Group is the largest builders and plumber’s merchanting business trading nationally from 62 branches under the Chadwicks and Heiton Buckley brands. The Group is the market leader in DIY retailing in the Republic of Ireland, trading nationally from 41 stores and is also engaged in the manufacture of mortar, plastics and windows in the Republic of Ireland. Today, in Ireland, Grafton is the largest builders and plumbers merchants and the clear market leader in DIY retailing. In the UK the Group’s merchanting operation is the 4th largest in the market. 2005 turnover was â‚ ¬2. 6 billion and Profit after Tax amounted to â‚ ¬166 million. History of the company: Grafton’s origins date back to 1902 and since then the Chadwick family have played a central role in the development of the business. 1909 William Thomas Chadwick establishes his first business called Chadwicks (Dublin) Limited to supply builders merchants and major building contractors with Irish and imported cement and plaster. Today Chadwicks is the 2nd largest builders and plumbers merchanting brand in Ireland, trading from 31 branches nationally. 1930 William Chadwick acquires control of a small firm engaged in the manufacture of concrete blocks and roof tiles, which his company was supplying with cement. In 1931 Concrete Products of Ireland was registered as a private limited company. Today it is called CPI Limited and is a leading manufacturer of dry mortar in the Irish market. William Chadwick, the Group’s founder, dies at the end of the Second World War, leaving the business to his two sons – Terence and Finton Chadwick. 1965 Concrete Products of Ireland becomes a public company and purchases Chadwicks (Dublin) Limited from the Chadwick family. At the same time Marley Limited increases its holding to 51%. Marley’s relationship with Concrete Products of Ireland dates back to the end of the Second World War when Marley acquired a minority shareholding. 985 Mr. Michael Chadwick is appointed Executive Chairman. 1987 Marley plc decides to concentrate on the manufacture of building materials and as a consequence sold its controlling shareholding in the Group. The Marley shareholding was placed with institutional investors and the Group’s management. The Group opens its first DIY retailing store in the Irish market. 1988 The Group changes i ts name to Grafton Group plc and makes its first UK acquisition, a small heating and plumbing business which gives the Group familiarity with the large UK merchanting market. 990 The Group acquires MacNaughton Blair a long-established and well-known Belfast-based builders merchants. Also during the year Grafton acquires Joseph Kelly & Son (1994) Limited in Dublin, a builders merchanting business which was to become very well placed to serve the needs of the building trade in the centre of Dublin. 1994 The Group’s expands significantly in the UK with the acquisition of Bradley’s and Lumley & Hunt plumbing and heating operations. Total sales in Britain and Northern Ireland increase by 53%, representing 21% of Group turnover. 995 Grafton acquires P. P. S. Mortars – a silo mortar plant based in Glasgow. This business adopts the EuroMix silo mortar business model and technology, which has been successfully developed by CPI, the Group’s Irish concrete products business. Today EuroMix is the leading UK mortar manufacturer with eight plants. 1996 The Group continues its strategic development in the UK with its first acquisition of a builder’s merchanting business – R. J. Johnson, based in Oxford. 1997 The Group continues to acquire in the UK adding a further 14 locations through six small but significant acquisitions and achieves critical mass in its UK operations. This is the Group’s tenth year as an independent public company; a decade of considerable achievement in which sales increased 18% annually and earnings per share grew at an annualised rate of 29%. 1998 UK builders’ merchanting operations expand substantially with the acquisition of British Dredging plc, the first time an Irish company acquires a listed UK plc. This business operates a total of 23 locations incorporating 17 builders’ merchants and six plumber’s merchants. The builder’s merchanting operation is integrated under the Buildbase brand, which was established in 1997 as the trading name for the Group’s UK builder’s merchanting operation. During that year the Group makes another six acquisitions adding a further 19 locations, including the London based Deben Builders Merchants business with 10 branches and A R Hendricks Limited, a heavy side builders merchant trading from five branches. 1999 The Group continues its bolt-on acquisition programme adding a 16 more locations, through eight acquisitions in the UK. Throughout the nineties the Group continues with the expansion of its Irish merchanting and DIY retailing operations and consolidates its position as market leader in both sectors. 2000/2001 During these years, the Group continues apace with its bolt-on acquisition strategy. A total of 24 acquisitions were made during the period, many single branch operations that add value through infilling the Group’s overall network of locations in the UK. 002 This is a record year with a total of 15 acquisitions adding a further 39 branches to the UK merchanting network. These acquisitions included five small chains: Lakes in Derby, BMB in Barnsley, and PDM in Edinburgh, Aizlewoods in Rotherham and JKS Heating and Plumbing Supplies in Manchester. 2003 The Group undertakes its largest ever acquisition thus far – Jackson Building Centres in England adding 18 branches – and makes another significant acquisition with Plumbline, Scotland’s largest independent plumbers merchants with 17 locations. Overall it was a busy year with a further seven bolt-on acquisitions completed, giving a total of nine acquisitions for 2003. Grafton now has 137 plumbers’ merchanting branches trading under the Plumbase brand and 139 builders’ merchanting branches trading principally under the Buildbase and Jackson brands. 2004 The Group completes its 100th acquisition since 1998, averaging more than one per month. A total of 19 acquisitions are completed during the year, another record year for development. Grafton reaches agreement to acquire Heiton Group plc, subject to regulatory approval. 005 In January Grafton completes the acquisition of Heiton Group plc. This business includes, inter alia, the No. 1 builder’s merchanting operation and the No. 2 DIY retailing brand in Ireland and is a good strategic fit with Grafton’s existing operations and consolidates its position as the leading player in the Irish market. Overall Heiton has over 50 trading locations (six in the UK), an average of 1,900 employees and a turnover in excess of â‚ ¬500 million. We can see from this chronological list of their history that Grafton Group expanded greatly from the mid 90’s to 2005. Their growth in the UK market was surged on the back of an economic building boom in Ireland. They now have a much greater market and consumer base to compete in but also face a vastly changed environment. The Environment PESTEL analysis Political †¢ Taxation policy – corporation tax remains at 12. 5% in Ireland. Grafton Group is resident in the state and is liable to Corporation Tax on its worldwide profits. The corporation tax rate in the UK is 21% which is a huge source of competitive advantage for Grafton versus its UK competitors. Government stability – the current Irish government is in place till 2012. The UK is in the build up to a general election which could see a change in the current government and policies. †¢ Government policies towards â€Å"green† initiatives – grant towards homeowners to improve insulation, grants for solar panels and etc. Economic †¢ The UK and Irish economies are in recession leading to a sharp fall in dem and. Consumer confidence has fallen and housing related spending has reduced. †¢ The number of house completions in Ireland is 17,000 units in 2009 which is a fifth of the output during its peak in 2006. Ireland’s stock of empty homes surged 30pc to 345,000 houses in the three years through 2009 as the decade-long property boom collapsed. †¢ Sterling exchange rate weaknesses could lead to lower reported Group earnings on translation of the results of the UK business into euro at the average rate of exchange for the year. †¢ Low Interest rates – the cost of loan repayments is low and for the foreseeable future they should remain constant. †¢ The availability of credit and money is very strict and very few banks are willing to give loans to cash strapped businesses. Unemployment rate in Ireland has increased dramatically, Jan 2008 4. 8% versus Jan 2010 13. 4%. Unemployment rate in the UK has increased but not as dramatic, Jan 2008 5% versus Jan 2010 8 %. Sociocultural †¢ Declining employment and incomes for individuals. †¢ Higher personal taxes – introduction of income levy, the doubling of health and PRSI levies. †¢ A nation of savers, People are now saving more than before and consumer spending has decreased as a result. †¢ An increasing age demographic in Ireland who will require a home in the future. Ireland population by Age 2006 | |Age Group | |Males | |Females | |Persons | | | |0-14 | |443,044 | |421,405 | |864,449 | | | |15-24 | |321,007 | |311,725 | |632,732 | | | |25-44 | |681,988 | |663,885 | |1,345,873 | | | |45-64 | |468,037 | |460,831 | |928,868 | | | |65 years and over | |207,095 | 260,831 | |467,926 | | | |Total | |2,121,171 | |2,118,677 | |4,239,848 | | | | | | | | | |UK population grows to 61. million | | | | | |[pic] | | | | | | | |Technology | |Improvements in technology have led to better supply chain and logistics management. | |Bar-coding of products has impro ved inventory management. |Environment | |Organisations need to be socially responsible with their business activities; negative publicity can have a detrimental effect on| |consumer’s perception. | |A growing consumer awareness of greener behaviour and products associated with having a better impact on the environment. | |Legal | |Health and safety regulations have increased the demand for health and safety products and packaging. | | |Key drivers for change | |These are environmental factors that are likely to have a high impact on the success or failure of an organisation. There is a | |huge level of uncertainty in the current environment but an area we have identified as key is the energy efficient sector. The | |government have introduced policies and measures to address climate change. This initiative has arisen from a UN conference on | |energy for development, which is demanding countries to change their ways for the improvement towards a greener global | |environme nt. There will be a greater demand from consumers to meet those measures and therefore Grafton must satisfy this growing| |demand with energy saving products. | | | | | | | | |The Industry | |Porters Five Forces analysis | |Potential competitors | There is the potential for new entrants in the form of small independent hardware suppliers which are strategically located to entice consumers, ex. A small hardware shop beside the local shopping centre. As we can see from the below graphic many of their outlets are strategically located in and around the big cities as there is a much greater consumer base, ex. Dublin, London, Birmingham. [pic] There is a huge capital requirement required to compete with the Grafton group brands within Ireland and their closest competitors are B&Q (20% market share) and Hombase (17% market share). The location of DIY retailing outlets is interesting as during the boom many of our local towns have seen the emergence of industrial retail parks. In Navan 4 years ago Woodies located in a newly developed retail park just off the N3, before that there was Chadwick’s and a number of small independent outlets in the town. Grafton group have 63% of market share in Ireland, as a result the power of competitive response is very strong in Ireland. However in the UK they are fourth with 10% of market share with Travis Perkins (15%), Jewson (18%) and Wolseley (19%) and as a result their competitive position is much more demanding as they have 3 competitors who are in stronger market position. Substitute products/services We believe the only substitute threat is hire companies, they offer equipment and tools to consumers on a rental basis i. e. per hr, day, week and etc. In the current climate price is a key factor in peoples decisions, therefore consumers may opt to hire equipment for tasks rather than spending vast amounts on equipment that might only be used infrequently. Bargaining power of buyers Grafton’s consumers are powerful because, †¢ Buyers can switch suppliers at no cost. †¢ Buyers purchase from multiple sellers at once, they opt for suppliers conveniently located to the project. Buyers are shopping round for the best value. Bargaining power of suppliers The Grafton procurement process has improved f urther with new internal appointments to lead heavy side and light side purchasing. There was an increased focus on reducing the supplier base and developing closer alliances with key suppliers. This has resulted in greater leverage being achieved from the Group's purchasing scale and improved purchasing terms. The volume of products sourced directly through the warehouse facility in Shanghai continued to increase providing a new sourcing option for the Group's businesses to procure quality products at competitive prices. We can see from the above that the power rests with Grafton; suppliers are keen to meet the demands of their customer as they have a strong foothold in both the UK and Irish marketplace. Rivalry/Competition In Ireland their competitive position is very strong and through consolidation and job cuts they will be better placed than most building supply firms especially the many small independents that are under serious financial strain as the economic property boom which they depended on is long gone. Many independents face closure and Grafton group and its brands will be best placed to take advantage when the economy recovers over the coming years. Competitive rivals are organisations with similar products and services aimed at the same customer groups. When we look at one of Grafton’s brands Woodies DIY and their offerings, we see that they are competing with many different retailers. They offer a product range which caters for all your interior and exterior requirements, ex. Bag of cement, paint, timber, kettles, toasters, lighting, TVs, etc. They compete in a very fragmented industry but what many people don’t realise is Grafton is the parent company and all these separate brands from the consumers perspective competing with one another doesn’t matter as all profits go into the one organisation. Grafton is competing with any organisation who offers interior and exterior household products, ex. B&Q, Homebase (part of Home retail group), Argos (part of Home retail group), Power City, Harvey Norman, etc. From our experiences with Woodies they differentiate themselves from the competition as they offer a complete range of products from their store which means you can get all your needs in the one store. However if you look at the UK operating margin history it was roughly 6/7% over the past ten years versus Irish operating margin history of 11-13%. This means that competition is much stronger in the UK and they must price more competitively in the UK. Opportunities and Threats We can see from the below graphic that their decision to expand its operations in the mid 90s to the UK has been extremely successful with 68% of their turnover coming from the UK. Grafton must now look to the UK with a population of 61 million versus Ireland 4. 2 million as their primary source for turnover and opportunity. [pic] Turnover breakdown Ireland Merchanting |370,167 |19% | |DIY Retailing |247,784 |12% | |Manufacturing |19,891 |1% | |Total |637,842 |32% | In the UK their operation consists mainly of b uilders and plumbers merchanting. THE MARKET ATTRACTIVENESS – BUSINESS POSITION MATRIX (GE and McKinsey Company Model) |HIGH MARKET ATTRACTIVENESS |MEDIUM MARKET ATTRACTIVENESS |LOW MARKET ATTRACTIVENESS | |HIGH BUSINESS | | | | |POSITION | | | | |MEDIUM BUSINESS | | | | |POSITION | | | | |LOW BUSINESS POSITION| | | | Invest Grow = Green Selective Investment = Yellow Harvest/Divest = Red The G. E. Matrix is an extremely useful tool to assist an organisation in exploring its Business Position based on its competitive position and the attractiveness of the markets under the organisation’s consideration Opportunities identified †¢ Demographics – In Ireland 1. 5 million are under the age of 24 and in the UK roughly 15 million are under the age of 30. These people will require a home over the next 5 – 10 yrs and therefore there will be a demand for housing and renovations to suit individual tastes. †¢ Worldwide government energy initiatives – consumers are encouraged to buy more energy efficient products. †¢ Cost reduction – with demand in decline it important that Grafton mange their costs, ex. Supplier costs, staffing, acquisitions etc. Competitors – independents are finding the financial strain to difficult and are been forced to close their operations. Economic recovery will see Grafton best placed in the market. †¢ Markets – economists both here and abroad are saying there is a bottoming out of the recession. This should bring about a stable market place. †¢ Debtors – if debtors are managed tightly it can have a significant effect on cash flow and bad debts can be reduced to a minimum. †¢ Credit – if debtors aren’t paying on time then Grafton need to look at extending credit terms with their suppliers. We think this very possible as the power is very much with Grafton and not the suppliers. Threats identified We believe the biggest threat to Grafton Group is the level of spending available for construction related projects. The demand for building materials continues to fall in Ireland and signs of improvement are slowly beginning to show in the UK. â€Å"The construction industry has now declined for the 34th month in a row, but the rate of contraction is slowing, according to the latest Ulster Bank Purchasing Managers' Index. † â€Å"Though it's great to see the UK construction sector turn the corner after two years of relentless contraction, it's still very early days,† said David Noble, chief executive officer at the Chartered Institute of Purchasing and Supply. There is now a reliance on the public sector for new work and if they don’t provide the funding for new projects then construction suppliers could be in for a difficult few years. Private investment is very unlikely in the current environment with consumer confidence very low and economic conditions unstable. Financial Information Analysis 2009 2008 Revenueâ‚ ¬1. 98bn â‚ ¬2. 67bn Adjusted operating profitâ‚ ¬26. 2m â‚ ¬118. 6m Operating profit per income statement â‚ ¬4. 9m â‚ ¬99. 2m Profit before tax â‚ ¬13. 6m â‚ ¬64. 1m Free cash flow 171m â‚ ¬212m EBITDA â‚ ¬74. 1m â‚ ¬172. 9m Adjusted earnings per share5. 4c 32. 2c Basic earnings per share 5. 8c 25. 1c Dividend/share purchase 5. 0c 15. 0c Net debt â‚ ¬322m â‚ ¬435m Gearing 35% 50% Analysis of Financial Reports The following is an analysis of the financial reports of Grafton Group plc. We will try to illustrate the current financial situation the group is in compared to previous years and also attempt to analysis the outlook for the future. Grafton’s presence in the construction and raw materials market means they have been very much affected by the economic downturn, in particular the significant slowdown in the construction market and the housing market in both the UK and Ireland. I will use liquidity, profitability, debt and other ratios deemed appropriate as tools to help analyse and diagnose the financial health of the group. I will use a year on year comparison in order to determine the direction in which the group is going and identify any trends. Liquidity Ratios Current Ratio (current assets : current liabilities) 20082009 920,482: â‚ ¬601,987â‚ ¬891,364 : â‚ ¬550,793 1. 53: 11. 62:1 Acid Test Ratio (Current assets less stock : current liabilities) 20082009 â‚ ¬920482 -â‚ ¬331124 : â‚ ¬601987â‚ ¬891364-â‚ ¬265748 : â‚ ¬550 793 1 : 0. 981. 14 : 1 Cash at Bank and Short term deposits (at end of year) 20082009 â‚ ¬301,984â‚ ¬224,834 Profitability Ratios Net Profit Margin (â‚ ¬000’s) 20082009 â‚ ¬64116 / â‚ ¬2672984â‚ ¬13580 / 1979766 2. 4%0. 68% Net Profit Margin per Segment Merchanting 20082009 â‚ ¬2284,484 / â‚ ¬121,921â‚ ¬1686,933 / â‚ ¬39305 5. 33 %2. 33 % Retailing 20082009 â‚ ¬303,071 / â‚ ¬11,790â‚ ¬247,784 / â‚ ¬3274 3. 89 %1. 3 % Manufacturing 20082009 â‚ ¬95621 / (â‚ ¬3159)â‚ ¬50985 / (â‚ ¬5060) -3. 3%-9. 9% Earnings per share (EPS) 20082009 32. 2c5. 4c Gearing 20082009 50%35% New borrowings v old borrowings 20082009 â‚ ¬91. 944 : â‚ ¬579,333â‚ ¬73679 : â‚ ¬536789 1 : 6. 31 : 7. 29 Short term v Long Term finance 20082009 â‚ ¬119,874 : â‚ ¬579,332 â‚ ¬103174 : â‚ ¬536,789 1 : 4. 831 : 5. 2 Analysis: Liquidity: The group has improved its current ratio year on year from 2008 to 2009, this is mainly due to a decrease in current liabilities. This is an encouraging trend for the group. The acid test ratio also shows improvement from 2008 to 2009, this is both a reflection of the improved current ratio and also the work done to try and reduce inventory holding, and reduce cash flow tied up therein and other associated costs. Cash flow was enhanced greatly by tighter management of inventory, debtors, disposal of assets (sale of freehold land, exhibiting the importance of having a strong portfolio of assets) The cash at bank and on short term deposit has been increased year on year from 2008 to 2009 by approximately 34% this is quite encouraging especially in the current environment (and not due to borrowings), as the adage goes â€Å"profit is food, cash is oxygen†. It is fair to say the group has slightly improved its liquidity situation and is more able to meet its outgoings as they fall due. Against the economic backdrop it is quite a good performance and evidence the group are handling the downturn well in a strategic sense. Profitability: Profitability is the biggest challenge facing Grafton due to the economic downturn and slowdown in the construction and housing markets. Net profit fell dramatically from 2008 to 2009 from â‚ ¬64 million to â‚ ¬13. 5 million, this was quite dramatic. Despite being worrying it was not unexpected, with the focus for the year on debt and cost reduction (and reducing capital expenditure and working capital). Merchanting, Retailing and Manufacturing all dropped considerably in profit terms. Margins were also decreased across all operations. Merchanting still remains the highest source of revenue for Grafton (%85 of group turnover in 2008 and 2009, suggesting strong competencies here). The loss in manufacturing outweighs the profit made in retailing, it is the profit made in the merchanting division that the real profit pool for Grafton. (divesting in manufacturing division may need to be considered, bar where synergies exist with other divisions, i. e. mortar manufacturing) As a result earnings per share have fallen dramatically from 32. 2c to 5. 4c, Debt: Through measures taken during the year to reduce gearing, Grafton were able to reduce an already modest gearing of 41 % in 2008 to 35 % in 2009. This is an excellent achievement in the circumstances (and exhibits a strong leadership in Strategic choices, direction, and fit). The net debt was reduced by â‚ ¬113. 1 from â‚ ¬435. 6 million in 2008 to â‚ ¬322. 5million in 2009. The groups current bank facilities are subject to a minimum net assets requirement (â‚ ¬301,984 cash at bank end2009, up from â‚ ¬224,834 end 2008, leaving the Group in a strong cash position). Return on Investment: Return on investment is down considerably from 2008 to 2009 10. 12% to 2. 19%, as profits dipped quite considerably resulting in the dramatic slump. Again this is worrying but not unexpected as the Group were attempting rationalization and consolidation (strong market share results exhibit some success in this regard) Borrowings: The ratio of new to old finance borrowings and ratio of short term to long term finance borrowing both improve year on year (1:6. 3 to 1:7. 29 and 1:4. 83 to 1:5. 2 respectively). Again this shows strong evidence of reducing debt and decreased borrowing. It is fair to say that Grafton is currently In a very challenging operating environment with the downturn In markets seriously affecting their profitability, dividends, and returns. But the Group finds themselves in an improved liquidity position, as well as considerably reducing their gearing, they also greatly increased their cash at bank negating greatly problems with accessing credit. Share Price Irish Stock Exchange Date: 29/04/2010 | Currency: EUR | Code: GRF_u. I |Current Price |3. 52 |Day High |3. 55 |Bid |3. 50 | |Last Closing Price |3. 50 |Day Low |3. 47 |Ask |3. 4 | |Change |0. 02 |Day Open |3. 47 |Year High |3. 59 | |   |   |Volume |28,045 |Year Low |2. 30 | Source http:investor/graftongroupplc. com The latest share price info as at 29/4/10 is encouraging as it shows strong recovery from a year low of 2. 30 to 3. 52 (a year high of 3. 59 has been achieved. The highest share price achieved was nearly 23 in early 2007 which illustrates the decline in the industry, and p uts the company’s current performance into context. The Corporate information. om Wright quality ratings rates Grafton’s investment quality as BBD0 which translates as: Liquidity:Excellent Financial Strength:Excellent Profitability:Fair Growth:0 Source www. corporateinformation. com Outlook for the Future The UK economy has moved out of recession in late 2009 which is encouraging news for Grafton as 68% of its turnover comes from this source. The amount of new house sales and builds are on the increase from a very low level starting which is very encouraging as the merchanting division is Grafton’s real profit pool. The Merchanting market has remained structurally sound despite the downturn and can expect a growth rate above normal trends that Grafton are well positioned to take advantage of. The Irish economy remains in recession but is expected to return to growth by the middle of the year boosted by global growth and improved export conditions. A weak employment situation, low consumer confidence and tight credit conditions make the market conditions in Ireland even more challenging, coupled with the massive drop in new house builds as housing over supply is still a problem. Further rationalisation measures and/or closures in the Irish operations should be considered. Group turnover stabilised from H1 2009 to H2 2009 which is encouraging. The cost reductions and integration benefits in the Merchanting divisions improved profitability in H2 2009. The rationalisation achieved and the increased activity expected form the UK new Housing market means that Grafton are well placed to take advantage of the recovering markets this year. Rationalisation measures: †¢ Employee base reduced in both Ireland and UK †¢ Cost reduction initiatives progressed with significant results †¢ 18 locations consolidated or closed and 10 new locations added †¢ Credit terms from suppliers renegotiated †¢ Improved inventory management †¢ Debtors managed tightly with significant cash generation †¢ Costs rationalized by â‚ ¬80 million in 2009 Plans for 2010: †¢ Further rationalisation costs will be incurred in 2010 Wider product range yielding margin growth †¢ Emphasis on overhead control and working capital management †¢ Attempt to obtain full benefits of integration Opportunities 2010: †¢ Reduced cost base †¢ Market share gains †¢ Competitors failing †¢ Irish Construction close to b ottoming out †¢ Signs of recovery in markets †¢ Positive Demographics †¢ Government Renewable energy initiatives Group Strengths †¢ Highly cash generative streamlined businesses †¢ Significant cash deposits ensures liquidity †¢ No P Banking Covenants -protection from exchange fluctuations now in banking agreements †¢ Strong balance sheet –modest gearing 35% †¢ No material refinancing required before 2011 68% of turnover in UK (increased mortgage lending, & housing sector activity in UK) †¢ Prominent market positions in the UK and Ireland –market share circa 10% and 20% respectively (satisfactory market share performance) †¢ Motivated management teams †¢ Proven strategic record, past experience of managing down cycles †¢ Spread risk †¢ Economies of scope amongst SBU’s †¢ Synergies across SBU’s †¢ Vertical integration achieving efficiencies in merchanting division †¢ Benefits de rived from lower cost base, integration, scale related and Procurement efficiencies †¢ Trading stabilised in second half of 2009 †¢ Trading outlook beginning to improve following period of significant uncertainty †¢ Tight financial control across group Weaknesses †¢ Poor performance in Ireland operations †¢ General economic downturn †¢ Housing market collapse †¢ Sharp Industry downturn Slowdown in Irish construction & housing industry (brought group turnover down 26% to 1. 98bn †¢ Very slow new housing Market in Ireland †¢ Consumer confidence in Ireland hitting retail sales †¢ Continued contraction expected in Irish economy †¢ Manufacturing operations making a loss †¢ Over reliance on Merchanting operations Strategic Capability â€Å"The ability to perform at the level required to survive and prosper. It is underpinned by the resources and competences of the organisation† Johnson, Scholes & Whittington It is clear that Grafton have the threshold competences to meet customer’s minimum requirements, and also the threshold competences to provide the same as they continue to exist (and are in a decent position to go forward). But what are Grafton’s core competencies, (activities and processes that are difficult for competition to imitate), what are their unique resources (difficult for competition to imitate or obtain). And what are the critical success factors for Grafton’s customers (the product features especially valued by customers and therefore the company must excel at). As 85% of Grafton’s turnover comes from their merchanting division this is where we will focus. Some of Grafton’s Brands, Sbu’s and subsidiaries in Merchanting include: Ireland: Heiton Buckley Chadwicks Cork Builders providers Telfords Heiton steel UK: Buildbase Jackson Building Centres Macnaughton Blair Selco Builders Warehouses Plumbase (plumbing) CPI Euromix (mortar) Critical Success factors for customers (a sample of but not limited to): Quality service and products Reliable products services Speed of service National Distribution Online ordering / catalogue. Product knowledge and advice available Simple pricing Self service capabilities â€Å"One stop shop† capabilities Wide selection / availability of products hire services Prompt & accurate delivery of products/services Strong partnership team working capabilities Trade deals/initiatives (bulk buying, relationship development) Unique resources (a sample of but not limited to): Wide network of branches Vertically integrated operations Very experienced management team Backed by strong corporate parent Financial resources (over 300 million in cash) Experience of managing previous downturns Strong Brand equity, profile and Goodwill Ability to leverage position as largest mortar manufacturer National Distribution Network (Civil & Lintels) Core Competences (a sample of but not limited to): Corporate parenting Synergy managing Proven vertical integration abilities Cross SBU linkages Co-ordination of multiple and diverse activities Excellent Financial management First class customer service Mortar manufacturing (no 1 in market) Strong Management at SBU level Strong Value chain Strong Value network Strategic Marketing Autonomy at SBU level Market Development Product development and category management National and local distribution competences The above are some examples of the critical success factors Grafton Group need to excel at for customers, and some of the unique resources and core competences that help them to meet those CSF’s. By building those resources and capabilities that help Grafton deliver value for its customers and help obtain competitive advantage. Corporate Governance What is Corporate Governance? â€Å"Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society. † (Sir Adrian Cadbury, UK, Commission Report: Corporate Governance 1992) Ireland’s recent history of corporate governance has been highlighted with the governments bank NAMA, National Asset Management Agency. Builders, bankers and the senior public servants who failed to regulate these sectors are perceived to be getting off scot-free from the crisis they caused. â€Å"Sean Barrett – Irish Times 2nd September 2009 / Page 14 Brian Lenihan has taken action that is costing taxpayers billions of euro that would have not have be en required if Corporate Governance and common sense regulation was adhered to. The bank regulators, a supposed independent body, did not adhere to procedures and turned a â€Å"blind eye† to what was practiced over the last 20 years. â€Å"The state ownership policy should fully recognise the state-owned enterprises’ responsibilities towards stakeholders and request that they report on their relations with stakeholders. Guidelines on Corporate Governance of State-Owned Enterprises, Page 37 (2005) Making the right decisions with all the information without compromising the integrity of the organisation. [pic] Corporate Cartoons, Grinning Plannet Grafton Group’s Compliance with the Combined Code The Board is committed to maintaining high standards of Corporate Governance. The Board is accountable to the Company’s shareholders and this statement describes how it applies the principles of good governance set out in the 2006 FRC Combined Code on Corporate Go vernance which is appended to the Listing Rules of the Irish and London Stock Exchanges. The Board – who reports to whom? The Board of Directors is made up of nine members at 31 December 2008 comprising the Executive Chairman, three other executive Directors and five non-executive Directors. Mr. Anthony Collins, Deputy Chairman, is Senior Independent Director. The Board believes that it has the skills, knowledge and experience required by the scale, geographic spread and complexity of the Group’s operations. The Board routinely meets seven times a year and additionally as required by time critical business needs. There is also contact with the Board between meetings as required in order to progress the Group’s business. The Board takes the major decisions while allowing management sufficient scope to run the business within a centralised reporting framework. The Board has a formal schedule of matters specifically reserved for its decision. This covers the key areas of the Group’s business including financial statements, budgets, acquisitions, major items of capital expenditure and the strategic development of the Group. The Board’s responsibilities also include ensuring that appropriate management, development and succession plans are in place; reviewing the environmental and health and safety performance of the Group; approving the appointment of Directors and the Company Secretary; approving policies relating to Directors’ remuneration and severance and ensuring that satisfactory dialogue takes place with shareholders. The Directors have access to the advice and services of the Company Secretary who is responsible for advising the Board through the Chairman on governance matters. The Company’s Articles of Association and Schedule of Matters reserved for the Board for decision provide that the appointment or removal of the Company Secretary is a matter for the full Board. Directors have full and timely access to all relevant information in a form appropriate to enable them to discharge their duties. Reports and papers are circulated to Directors in preparation for Board and committee meetings. The non-executive Directors, together with the executive Directors, also receive monthly management accounts, various reports and other information to enable them to review the performance of the Group on an ongoing basis. The Board continues to hold the view that there are compelling commercial benefits to the Group and its shareholders in combining the roles of Chairman and Chief Executive and the holding of the combined roles by Mr. Michael Chadwick. The combination of the roles is balanced from a governance point of view by the strong input of the five independent non-executive Directors on the Board and the Board’s committee structure. Directors’ Independence and Board Balance It is Board policy that the Board should include a balance of executive and non-executive Directors such that no individual or small group of individuals can dominate the Board’s decision making. Five non-executive Directors, Mr. Anthony E. Collins, Ms. Gillian Bowler, Mr. Richard W. Jewson, Mr. Roderick Ryan and Mr. Peter S. Wood are considered by the Board to be independent of management and free from any relationship which could materially interfere with the exercise of their independent judgement. The Board has therefore determined all five Directors to be independent. Mr. Collins was appointed to the Board in 1988 and both Ms. Bowler and Mr. Jewson were appointed to the Board in 1995. The length of their service on the Board exceeds nine years and the 2006 FRC Combined Code provides that an explanation be made to shareholders concerning their continued independence. The Board considers that the integrity and independence of these Directors is beyond doubt. All three Directors are financially independent of the Company and have other significant commercial and professional commitments. The Company’s Articles of Association provide that one third of the Directors retire by rotation each year and that each Director seek re-election at the Annual General Meeting every three years. New Directors are subject to election by shareholders at the next Annual General Meeting following their appointment. It is Board Policy that non-executive Directors are normally appointed for an initial period of three years, which is then reviewed. It is also Board Policy that a non-executive Director who has served on the Board for more than nine years will retire annually and will offer him/ her for re-election in any case where it is proposed to exceed nine years. The overall composition and balance of the Board is kept under review. To allow corporate governance to drop in standards allows too many possible problems arise. Directors making short term decisions for their own benefit cannot be tolerated and without strong non-Executive Directors organisations have suffered. E. g. Enron, Independent News and Media. Performance of the Board Grafton Group’s long standing non Executive Directors have been re-elected at many AGMs which proves the confidence of their value to shareholders. At the beginning of the year their share price of building up to their financial report for 2010. When we were given Grafton Group as our project the share price was â‚ ¬2. 70, week of April 12 it is trading at â‚ ¬3. 40/share, an increase of 25%. Their board are doing a good job and have processes in place that do not allow any maverick activities. They tick all the boxes of operating independently of management. Insider dealing is not evident, â€Å"interlocking† does not exist similar to Jim Flavin, member of both Fyffes and DCC. The CEO of Woodies and Atlantic Homecare is Ray Coleman. Some would argue the same CEO of both could lead to conflict but as both have different strategies it make business sense for this to be the case. Corporate Social Responsibility – CSR and Ethics â€Å"The Grafton Group recognises the importance of conducting its business in a socially responsible manner. This is demonstrated in the way we deal with our employees, customers, suppliers and the communities in which we do business. The Group considers that corporate social responsibility is an integral element of good business management. Grafton Group Website â€Å"Business only contributes fully to a society if it is efficient, profitable and socially responsible† – Cannon (1992, p. 33) â€Å"Few trends would so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their shareholders as they possibly can†- Milton Friedman (1962) Grafton Group’s CSR is centred on the following areas. ? The Environment – Reduction of waste that impacts on environment, affiliation to Irish and UK environmental specialists. e. g. Biffpack in UK ? Health and Safety – Adherence to best practice for employees, customers and visitors to their stores Human Resources – Acknowledge the importance of employees to achieve success, reward them accordingly and become number one choice of employment in their field ? Community – Recognise the responsibility to the communities in which they are located, support local charities e. g. donated tools and equipment to Goal following Haiti earthquake in 2009 Grafton Group, we feel, is what all corporations do – tick the box of CSR! Very few Financial Reports had any reference to CSR until l ast 10-20 years. To make them stand out on CSR issues as Ben and Jerry’s Ice Cream or The Body Shop do, they would have to incorporate it into their overall business strategy. Would this give them a competitive advantage over their business rival? Would CSR promotion become part of their strategy? Our view is that a company in the industry it serves will be dictated by their consumers as to how important CSR really is. In Grafton Group’s case this will not happen. Their stance on CSR is Laissez Faire to Enlightened Self-Interest. The emphasis is mainly on their shareholder short term orientation i. e. highest profit as possible and adhere to the law at all time. They may worry about how they are perceived such as pension fund investors. They are definitely not a Shaper of Society where they influence society in a better light and not always driven by super profit making e. g. Paul Newman food investment and Niall Mellon Trust. Shareholder and Stakeholder Expectations and Influences The difference in both shareholder and stakeholder expectations is determined largely on the performance of The Grafton Group, history of performance, market in which it trades, promises made and promises previously delivered on. Since they began trading Grafton Group has consistently made profit and grown which has given shareholders a return on their investment. The collapse of the building trade in Ireland and UK has meant a large fall in share price but due to the market’s performance no shareholder could have expected anything else. Bob de Wit and Ron Meyer, 1998 describes the value perspective of shareholders and stakeholders and how, if any, interlink. In summary the difference is that shareholder’s perspectives have an ends, i. e. make a profit and value of company increases. Stakeholder’s perspectives have and ends and a means where profit is a want but not at the cost of something that would be considered unethical. The power that a board such as Grafton Group must withstand can determine whether shareholders or stakeholders have more of an influence on decisions than is healthy. â€Å"Power is the ability of individuals or groups to persuade, induce, or coerce others into following certain course of action. † Johnson, Scholes and Whittington, P160 If an organisation succumbs to the power of an outside influence their control is diluted. Some people within organisations, by right, have more power than other, e. g. the formal power a CEO enjoys. ? Legitimate Power: Power of the position, CEO ? Reward Power: e. g. Manager deciding who gets overtime Coercive Power: who decides on who gets the bad jobs to perform e. g. â€Å" if you do not do this you will not get the other†, bullying style ? Expert Power: This is more a personal power that a knowledge based professional may exercise ? Referent Power: This explains the influential power someone can exhort through charisma or personality traits e. g. Richard Branson of Virgin Group Johnson, Scholes and Whittington, P161 It is interesting that the brand power Woodies and Atlantic Homecare enjoy in the home DIY market sector is a symbol of power for both shareholders and stakeholders. Stakeholder mapping is an interesting way to determine the power and level of interest certain groups have in organisations. | |LEVEL of INTEREST | |LOW HIGH | | |A |B | |LOW |Minimal Effort |Keep Informed | |POWER | | | |HIGH | | | | |C |D | | |Keep Satisfied |Key Players | The level of interest within Grafton group lies mainly with employees, shareholders and Board of Directors. The Key Players are the Board of Directors and Shareholders as they have a vote as to who by and how the company is run. Stakeholders such as government are low in power and would have a low level of interest. Some of the manufacturing Grafton Group are involved in may require them to be socially responsible to the community in which they are located and must keep them informed of any changes that may affect them. They would have a high level of interest but a low form of power. Culture of Organisations and Grafton Group The culture of organisations is largely shaped by the founding fathers. For example Lever Bros. Ltd has a long tradition with social responsibility before it was known as CSR. William Heskeath Lever first established Port Sunlight village to improve the living conditions and well-being of employees of the Port Sunlight Soap factory. This created a culture of CSR which is maintained today. Similarly with the Grafton Group, CEO Michael Chadwick, has been with Grafton Group since he was 23 years of age. The culture of the company is largely a result of his business philosophies and strategies. We asked for an interview but we were declined, we asked for a list of questions to be answered if we sent them to his secretary and this too was declined so it is difficult to get an insight into his business philosophy. The Grafton Group do not apologise for being shareholder oriented in terms of profits in the form of dividends or company value increase. They have not allowed themselves be affected by the current economic climate and do not show any forms of strategic drift. Strategic drift is where organisational strategies develop incrementally on the basis of cultural influences and do not keep up pace with the changing environment in which they trade. Grafton have reacted to the downturn of their business and do not wait for changes to be made as reactionary. Henry Mintzberg has noted that â€Å"strategy is a pattern in a stream of decisions†. If decisions are made as a reaction to their environment it can be too late. Grafton Group’s Board of Directors is long serving and successful, due to this fact they have created a culture of expectancy for shareholders and for themselves to delivery. This behaviour filters through to line managers and front of customer staff (boundary spanners) to achieve success. The success of the past and alignment to environmental change has created a winning culture. They have created a theme around their strategy and have not deviated from it. They operate in Ireland and the UK in markets they understand and do not expand outside these industries. This helps succession planning for managers moving from business units to gain more experience keeping within the core competencies of the Grafton Group. Strategic Direction and Corporate level strategy Strategic Vision is a detailed future oriented vision of the strategic direction that a company is planning to take going forward, that takes into account the competences and capabilities that it both has and needs to achieve to achieve its vision. â€Å" A strategic vision is a road-map of a company’s future, providing specifics about technology and customer focus, the geographic and product markets to be pursued, the capabilities it plans to develop, and the kind of company that management is trying to create† (Thompson & Strickland 2001, P6). According to Johnson, Scholes and Whittington 2008, the â€Å"Exploring Corporate strategy model is made up of the corporate culture, business ethics, CSR, the strategic position, the strategy in action and strategic choices. Strategic choices encompasses some of the following areas of an organisation †¢ Business Level Choices †¢ International Choices †¢ Evaluation †¢ Innovation †¢ Corporate Level Choices Corporate Parent As we know the Grafton group encompasses many different brands, which is their cash generating and highly profitable business units. Throughout Grafton’s history they have managed to acquire many related business all in an effort to strengthen the group as a whole. Through this vertical integration Grafton have offered themselves many advantages and increased their competitive strength. Grafton’s strategic development has continued to grow with major acquisitions made both in Ireland and the UK such as 1990 – Macnaughton Blair, a Belfast based builders merchant †¢ 1994 – Bradleys and Lumley & Hunt plumbing and heating †¢ 1995 – P. P. S Mortars, silo plant based in Glasgow †¢ 1998 – British Dredging. Grafton were the first ever Irish company to acquire a British plc †¢ 2000-2002 – A total of 39 acquisitions were made, building the groups strength further in Ireland and the UK †¢ 2003 – Jackson Building Centres in England adding 18 branches and plumbline, Scotland’s largest independent plumber merchants. †¢ 2004 – The Grafton group officially makes its 100th acquisition †¢ 2005 – Grafton acquires Heiton Buckley. (www. graftonplc. com) As we can see here, Grafton has had a very strong acquisition based strategy to vertically integrate with all the suppliers and related business in an effort to grow in strength and position and to make themselves a real presence in the Irish and UK markets. However it’s all well and good to acquire all these other business, but what is the point in having them unless you can use them to your advantage. This is Grafton’s role and responsibility as the now corporate parent to all these acquisitions, to turn them from simply business units into strategic business units that will benefit the group as a whole and strategically fit. The corporate parent as a Synergy manager A corporate Parent identifying factors are a large corporate office with a main emphasis on facilitating cooperation across its SBU’s with a continued focus on cost reduction, scale related benefits, closer integration, branch consolidation and brand synergies. As a corporate parent to its SBU’s, Grafton group seeks to enhance value across its business units by managing and instilling synergies across its business units. The backward, forward and horizontal integration of its suppliers of raw materials and competitors has afforded Grafton a strategic advantage. In order to promote synergy management across its strategic business units, Grafton group tries to create the synergies by thinking holistically and viewing the SBU’s as interlinked with a common purpose between such as; ? DIY retailing – Woodies and Atlantic Homecare ? Manufacturing – CPI Euromix, MFP and Wright windows Merchanting – Heiton Buckley, Chadwicks, Cork builders providers and Telford The main point to remember is that the business units should benefit from the corporate parent by the co-operation between them that’s afforded by the corporate centre Grafton Group. A more streamlined UK merchanting business incorporating the Buildbase, Plumbase and Jacksons brands and specialist merchanting businesses is enabling a deeper integration of the overall business. The new structure will result in significant synergies beyond the rationalisation measures already implemented. These arise particularly in procurement, accounting and other central services. A single management team is now in place for all brands operating from a single head office location. Costs continue to be more aligned with sales and the management team works closely with the Group Chief Operating Officer in driving cost reduction, branch consolidation and brand synergies while leveraging scale-related benefits. With regard to synergy management the following questions should be answered: ? Is there common purpose between business units – YES ? Does parent try to achieve co-operation between business units – YES ? Provide central services and resources – YES In 2009 one of Grafton’s management priorities was â€Å"To unlock latent synergies in downturn†. (Grafton Financial results 2009 PP) Strategic Drift This is the tendency for strategies to develop incrementally on the basis of historical and cultural influences but fail to keep pace with a changing environment. (Liam Bolger, lecture notes 2009). Strategic drift is certainly not something that Grafton can be accused of as they react quickly to the economical downturn to keep themselves competitive, especially within the domestic market of Ireland where there core strength lies. Grafton Group has reduced their overall debt from â‚ ¬584 million (2005) down to â‚ ¬322 million (2009). The majority of this occurred in the last 2 years with a reduction of â‚ ¬228 million or 41% (Grafton Group plc final results 2009) Employee base reduced in both Ireland and UK Cost reduction initiatives progressed with significant results †¢ 18 locations consolidated /closed and 10 new locations added †¢ Credit terms from suppliers renegotiated †¢ Debtors managed tightly with significant cash generation †¢ Costs rationalised in 2009 by â‚ ¬80 million Further plans to manage through 2010: †¢ Further rationalisation costs to be incur

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Critical review of a social policy journal (article is available on sagepub) - Essay Example Janet attained all these academic qualifications in the University of Essex (The Open University, 2012). The article explains visual research, a form of research that uses photography to study a certain community. The article explains how photography can help in the collection of visual data, which helps in studying the aspects of a given community. The article is a guide on how visual data can help policy makers in obtaining information about the resources and the values that the community values. Janet’s article explains how the data collected using photographs to explain the differences among various communities in the contemporary England. In any society, there are clear issues that affect different communities that interact. There is that group of the society that does not enjoy benefits that other groups enjoy. For example, in Britain some communities are disadvantaged and marginalized in all aspects of life. A study of the experiences of community members and the areas that the communities views as problematic shows the actual gap between different communities in Britain. Visual research using photographs reveals the areas that account for the practices and problems that face the community. In addition, the research also shows the areas that the community members deem as good. ... Visual research is probably the best approach for decision-making about the welfare of a certain disadvantaged community. Critique of the article The article raises a number of issues concerning understanding the society. For instance, many marginalized communities face the problem of vandalism and destruction of property. This is due to the crash of ideas between different members of the society. Therefore, the communities are responsible for their problems in many instances. For instance, young people wanted the field for their own personal issues while other members of the community concerned themselves with protecting the field. The community divided itself along age and gender basis, but it is clear that the community has strong moral and social standards. The article brings to light how photography reveals some aspects that other people assume to be normal. For instance, the photographs on infrastructure indicate the local council's negligence in maintaining infrastructural fac ilities. Understanding the problems of disadvantaged members of the society needs complete masterly of all factors within their environment. Most of these factors, however, appear normal to many individuals, which hinders policy makers from making sense as well as interpreting the factors. The article stresses on the importance of visual data in analysing such information that may appear as irrelevant in the given communities (Fink, 2011). I agree with certain propositions of the article. The article stresses on the contributions of photography in studying various practices and experiences that influence the actions of marginalized communities. Visual research identifies aspects that affect the community and that appear normal in the eyes of many individuals. Policy makers need

Cross Cultural Communication and Business Management Term Paper

Cross Cultural Communication and Business Management - Term Paper Example When manages successfully, it brings economic benefits. For organizations that send managers on foreign assignments. The cost can be high, as those managers need to adjust to their new environment. Cross-cultural effective communication is useful and worthy which can deal with conflicts that arise within multicultural. What would the ideal manager of international operations look like The ideal manager would have a "very good command of several languages and knowledge of and sympathy for several cultures" ( Hedlund 1986: 31 ). Some authors argue that these managers must become cosmopolitans, to grow beyond cultural limitations ( Harris and Moran 2000). To be "cosmopolitan", according to Webster's Third New International Dictionary, a manager must "be marked by interest in, familiarity with, or knowledge and appreciation of many parts of the world: not provincial, local, limited, or restricted by the attitudes, interests, or loyalties of a single region, section, or sphere of activity: worldwide rather than regional, parochial, or narrow." As if this were not asking enough of an international manager, Harris and Moran also distinguish between cosmopolitans and global managers. Global managers are cosmopolitans who have an additional facility for making appropriate business decisions anywhere that they operate. Given the near impossibility of either finding or developing such a manager, is it any wonder that we encounter firms of all types and classes making costly blunders in their foreign operations Business people today face an increasing range of culturally diverse situations. To ensure success in business, many organizations are using cross-cultural communication to improve their manager's cross-cultural effectiveness and enhance their communication skills. In a diverse workplace, there are many cultures collide. Many culture norms influence a manager's behavior and subsequent reactions (Gardenswartz L. and Rowe A., 2001).  

A play Dennis Potter Essay Example for Free

A play Dennis Potter Essay Blue remembered hills is a play Dennis Potter. The title is taken from the poem Shropshire lad by A. E Houseman. It challenges the perception that childhood is innocent and that all children are pure and nice. One of the ways he does this is by using adults to play children so the unrealisticness of the play forces adults to focus on the meaning of everything going on in the play. The main meaning of the play is focused around the mindless cruelty of war and how this affects children living through it. The style of the play is flared narration. The play was originally a television play for the BBC in 1979. it was set in rural west country. For our play we are using bright lights to show that we are outside. We are also going to have some stones and sticks on the floor to play with to help us show the kids restlessness and constant movement. Could kick them etc. the setting is rural and in 1943 during the 2nd world war, this has affected the children a lot. There is a lot of racist speak about the Ities and the Japs. Then there are the games, also war related. Most of the games revolve around guns and violence. Lastly there is a lot of bragging that the boys do about what they are going to do in the army. In this essay I am also going to refer to my mother said I never should by charlotte Keatley and gum and goo by Howard Brenton. Charlotte Keatley was a feminist writer. My mother said I never should was first performed in 1087. In 1987 there were stronger roles for women and more active feminist movements in society. The play represents the plight of women and how women were treated in society, both by men and each other. The scene where the women are talking about menstrual cramps or the curse as they call it contrasts directly yet is similar to when the boys are talking about the war in blue remembered hills. Both plays show children discussing taboo subjects in an open and careless way. Howard Brenton play gum and goo was first performed in 1969. Adults didnt understand learning difficultys as well as they do now, in 1006. Ignorance leads to prejudice and eventually tragedy in gum and goo. This play is about an autistic girl who invents two friends, gum and goo, this character links directly to Raymond in blue remembered hills who has learning difficulties, maybe similar, but less severe to Michelles autism. . All three plays have adults playing children. This creates an objective distance so the unreality of the play is so obvious it doesnt allow the audience to get absorbed into the play. This was the audience is forced to concentrate on the issues and the challenged perceptions of childhood.

The object of grammar Essay Example for Free

The object of grammar Essay Two types of grammar: normative, theoretical. Two parts of grammar: morphology, syntax. Grammar is a branch of Linguistics which studies the grammatical structure of language. The grammatical structure covers the rules of changing words and rules of arranging the forms of words into phrases and sentences. Grammar may study the gr. Structure of a language in different aspects. So? We distinguish: historical grammar which describes the str. of words, phrases, sentences in the process of their historical development; comparative gr. which deals with comparison of gr. systems of different languages; descriptive gr. analyses the gr. system of a language as it exists at a certain period of time. Grammar is divided into 2 types: Normative and Theoretical. Normative (Practical) Grammar gives rules how to build correct forms of words and syntactical constructions. It teaches to write and speak correctly. Theoretical (Scientific) Grammar describes the language as a system, studies the components of that system and relations between them. Theoretical gr. explains and analyses the most difficult phenomena of a language. It gives different concepts of these phenomena and helps linguists to be guided in linguistic literature in order to form a certain opinion of this or that theoretical form. Grammar is divided also into 2 parts: Morphology and Syntax. Morphology is a part of Grammar which studies the most characteristic features of classes of words. These classes are called parts of speech. Morphology studies not a single word, but the whole classes. Syntax is a part of Grammar which studies phrases and sentences, their structure, classification and combinations. Syntax is a system of 2 levels-that of phrases, that of sentences. It may be said that, in a way, morphology is more abstract than syntax, as it does not study connections between words actually used together in sentences, but connections between forms actually found in different sentences. In another way, however, morphology would appear to be less abstract than syntax, as it studies units of a smaller and more compact kind, whereas syntax deals with larger units, whose types and varieties are hard to number.

Is a general glut possible?

Is a general glut possible? Introduction In macroeconomics, general glut refers to there is a supply excess in all industries. There is a long time running debate on the general glut from the late 18th century. Many economists try to figure out if there is a general glut in reality. Normally, glut could be exhibited in a economic depression or recession with high unemployment rate and idle manufactures. However, Jean-Baptiste Say(1803) established his theory Law of markets which advocates that there is no general glut . Say said products are paid for with products. In the other words, supply creates demand. Many classical and neoclassical economists support Says Law. Say brought up his theory after industrial revolution. Under that background, Says law might be right, because market was completely controlled by suppliers. It means suppliers are consumers. Therefore, Says law seems right. On the other hand, Says Law can be proved with one simple example: if firms cannot sell goods, then goods prices will be decreased until c onsumers accept it. The only problem is time. In the long run, Says law seems correct. Ricardo (1851) extended this notion to saving and investment. If manufacture produces more than one consumes, then the surplus is saved and, by definition of terms, invested. No one would produce in excess of consumption needs if one does not have a desire to either exchange it or invest it. Supply, therefore, is demand. This virtually all the Classical economists held to be an irrefutable truth. However, some economists denied Says law concluding there is a general glut in economy. Keynesian argues that some microeconomic-level actions can lead to a general glut. Next, unnecessarily high unemployment rate is the evidence of a general glut. Austrian school economists argue that misallocation of resource causes the gneral glut. Some post-Keynesian economists think credit bubbles or speculative bubbles is the cause of general glut. In my opinion, general glut exists in the modern society. The severe worldwide economic depression in the 1930s and financial crisis in 2007 prove that there is a general glut in reality. Especially, the global financial crisis in 2007 makes me to believe that Keynesian is correct and general glut is possible. It is controversial that government should adopt laissez-fair or Keynesian policy to exit finaical crisis. From laissez-fair side, economists suggest government should stimulate production and this is the only way to control crisis. On the other hand, Keynesians supporters argue that government should stimulate demand. Because they think insufficient aggregate damand causes the fiancial crisis. Says law This part I will discuss Says law more detail and analyse why Says law is inconsistent with other economistss theories. Say is the first economists to advocate that the price of a product is dominated by its supply and demand. Say(1803) established Law of markets theory which argues that the total supply in an economy can never fall below or exceed the amount of total demand. Therefore, there is no general glut in a economy. On the other hand, Say argues that money is neutral. Personally, I think Says thought about moneys purpose is inconsistent with most economists arguments. It is the one reason why his theory is inconsistent with most economists theories. Say(1983) contended trader is interested in other products, not money. He thinks there is no reason to hoard money and moneys purpose is buying other goods. In contrast, I think many people are engaging to hoard money for various reasons. For example, ones salary is 2000 dollars per month, it is impossible for him to use 2000 dollars every month. One will make a financial plan and save one small proportion in the bank purposely. Many classical and neoclassical theory supports Says law. I read the story like shoe-hat world or some two things world in their articles. In the shoe-hat world, they exchange one good for another good . According to their explanations, there could be three possible circumstances in the shoe hat world. I got this idea from a on-line article called the general glut controversy. First of all, shoes makers and hat makers have enough quantities to satisfy all demand. Then, there is a overproduction of hats, meaning too great a demand for hats. Next, there may be too many shoes in the market. However, there never be a overproduction of both goods. Because a shoes maker would not produce one more if he or she did not need more hats. On the other hand, there could be a glut for one good, but there could not be a general glut. It seems plausible that general glut does not exist. However, they overlooked a important stuff, of course, money. In the current society, we are not in the barter economy. Money plays a important role in capitalize economy. If i introduce money in the two person economy, there is a little change. Mill, John Stuart (1844)argues that in the simple exchange economy, supply creats demand. However, when money is the exchange medium, people can hoard the sales profit. Therefore, supply do not always create demand and general confidence can change the balance between supply and demand. Joseph Clark(2010) argues that there still cannot be a general glut after we introduce money. He said there could be surplus in all goods relative to money. From the long term side, I think there is no general glut, however, in the short term, definitely supply does not equal to demand due to price is not flexible. It means there is overproduction or underproduction. Says law just messed up by the exchange medium, money. Great depression and global financial crisis It is important to discuss the economic depression in the 1930s and global financial crisis in 2007. From these two events, I firmly believe general glut exists. Many economists argued that government interventions is the main reason for financial crisis. Robert ( 2009) asserts that one cause of financial crisis is the unregulated financial market. Some researchers thought the main reason for financial crisis is humans greed. Adrian(2008) concluded one cause of the crisis is a change in the model of banking, mixing credit with equity culture. Nevertheless, I think general glut is the main reason. After doc.com bubble bursting, American government decreased interest rate to prevent economic recession. Between 2001 and 2004, interest rate even reached the lowest point of 50 years, 1%. I think real estate glut is the fuse of the crisis. After real estate bubble bursting, the general glut came up. For example, the Big three(GE,FORD,CLESLER) asked for $50 billion to avoid bankruptcy and e nsuing layoffs, then Congress worked out a 25$ billion loan. From a more widen scope, looking at the data from Wikipedia, the annulized rate of decline in GDP was 14.4% in Germany, 15.2% in Japan, 7.4% in the UK, 9.8% in the Euro. Looking at the unemployment rate of economic downturn in the 1930s: unemployment in the United states arose to 25% and some other countries reached 33%(frank, 2007).If Says law is correct and general glut is invisible, there is no unemployment. I will explain why unemployment rate is related with Says law and general glut in the next part. Say and other nineteenth-century economists argued that products can find buyers eventually if prices are sufficiently attractive. I admit this argument is correct. If Airbus sells A380 as cars price, I think there is no overproduction problem for Airbus. I think many theories are established in a perfect and simple world. Actually many theories cannot apply to reality because of imperfect economy system. Some other theories Keynes (1936) argued that unnecessarily high unemployment rate was the evidence of the general glut. Aggregate demand for products is less than aggregate supply, causing economic recession and losses of potential output. There are three important concepts in Keynes paper. The first one is propensity to consume. The marginal propensity to consumer is the relative increase in personal consumption, that comes with an increase in disposable income. The marginal propensity is less than one. In the other words, the actual production level is lower than the full employment production level. Therefore, there is a gap between total income and total consumption. This gap would not be eliminated which conflicts Says law. Now, someone maybe ask if investments can close this gap. Many economists believe that saving is equal to investment. Keynes(1963) argues that investment cannot close this gap because there is no evidence showing that investment is equal to saving. Keynes contend that saving de pends on the households income level. It means one earns more and one saves more. However, investments depends on the marginal efficiency of capital. Keynes thinks saving and investment are totally different terms and have no autocorrelation. Austrian school economists argue that misallocation of resource causes the depression, even general glut. They also contend the depression is a tool to wipe out the excessive supply.(wiki) Austrian school economists focus on the credit cycle when they see the business cycle. they think depression is inevitable after credit bubble burst. Artificially low interest rate could lead speculative economic bubbles. Then, recession comes up to adjust the balance of saving and investment(Thorsten Polleit,2007). I think Austrian school theory is similar to post-Ksynesian. They both think general glut cause as one spends more than one earns. Personally, I think greed is another way to interpret this problem. some post-Keynesian economists think credit bubbles or speculative bubbles is the cause of general glut. From Irving Fishing ¼Ã‹â€ 1933 ¼Ã¢â‚¬ ° view, debt bubble busrting leads general glut. According to his debt deflation theory, a series of bad things occur after bubble bursting. First of all, distress selling and debt liquidation lead contraction of the money supply. Then, decrease of asset value and fall in firms profits. Afterwards, unemployment rate increase leads pessimism. Finally, people will hoard money. Therefore, a general glut comes up due to the shift from using more than one earns to spending less than one earns leads a sustained decrease in aggregate demand(wiki). It is necessary to talk about Marxian in the general glut debate. Marx(1864) contend that there are two types of goods, one is capital goods like machines and another one is consumer goods that are not durable. According to Marx, I think capitalist economy target is capital goods accumulation. On the other hand, firms goal is profit maximum. Looking back to our reality, many developed countries companies are using outsource strategy. They are reaching the maximum marginal profit. So there will be more and more goods but unchanged demand power even lower. Therefore, general glut is possible in the capitalist economy. Sismondi(1861) and Karl Marx have a same idea about time lag in the products transaction. I think this idea exists in the reality, for example, one produced a good and sell it. However, he would hoard money for a while before he buy other goods with money he earned. Therefore, there is a breakdown in the transaction and overproduction crisis can occur. Actually some economists oppose to Says law before Keyne and Marx. Malthus(1820) argues that producers do not always exchange their goods for other goods. Some goods are exchanged for labour. However, Says law does not concerns about employment and unemployment. Therefore the entire goods can lose value due to unproductive labour,meanwhile, general glut can exist. From the money side, Say and his supporters think is completely neutral. However, Malthus(1820) contend that producer wants money not other goods. He think it is so abstract that people want goods and not money. I persist Malthuss thought is correct. For example, I want to buy a house or a luxury car, so I will to save my money within five even ten years. Before I buy a house, money is preferable for me. Eventually, I admit my saving is for goods, however, I do not immediately change goods when I get money. There is a gap, even for a while, this gap will cause a general glut. conclusion I think it is impossible to avoid the crisis of general glut. Theoretically, general glut is a issue of income distribution. Profit is distributed to minority. This could leads social savings and investments too high as well as low consumption, hence the scale of production and consumption is asymmetry. Then, general glut comes up. Therefore, I support that government should stimulate aggregate demand side to exist crisis. Then, I disagree Says standpoint that supply creates demand. Just a simple example, manufactures always increase their investments when economy is booming. They think there will be more demand in the future , so they build more factories and buy more raw materials in advance. However, economic crisis may be happen suddenly leading to less consumption. Therefore, there will be many idle factories and high unemployment rate as well as unsold goods. Under this condition, I can barely believe that supply creates demand. I think general glut exists due to firms managers overestimate the demand quantities and misjudge macroeconomic situation. I think greedy soul is the main cause of overestimation and misjudgement. It is also the deep reason for the general glut. Many people debate on the term general and think there could be overproduction for one good or two goods or one thousand goods, however, no general glut. I think once money exists in our economy as a exchange tool, there could be general glut. Maybe money is not overproduction,but money is not good. There is no industry called money industry. On the other hand, I pretty sure government policies would solve the general glut issue. For example, FED injected money supply after 2007 financial crisis. This topic is so profound and tricky. My essay is not a statistics based paper, so I cannot provide enough data to prove my notion. Money is a critical variable in this debate. Some economists argue that money is neutral and give so little importance to money. Actually money has a meaning of value store rather than exchange. However, I still persist that general glut exists in the short run and supply seemingly create demand in the long run. in the other words, overproduction crisis is the situation that supplier cannot sell their goods at meanwhile. Is it possible? Obviously, the answer is yes. 1930 depression and 2007 financial crisis tell us the answer is yes. However, market itself adjusts and heals general gluts crisis eventually. I agree Keyness critique of Says law. But I am still confused his thought about saving and investment. I do not agree saving rate depends on income level rather than interest rate. For example, Chinese saving rate is higher than some western countries, however, Chinese income level is lower than western countries. Personally, I think interest rate has a strong relationship with saving. Finally, if Says law is acceptable, it means government should adopt laissez-fair policies. However, I think Keynesian is more rational and acceptable than laissez-fair. Global financial crisis and 30th great depression give a strong evidence for this debate. I pretty sure market is rational, however, overlooking one variable, of course, people. Human control the market and price and I have to say people are not rational sometimes. However, there is no general glut in the barter economy. In the other words, all goods are exchange for other goods. Plus, sellers buy other goods immediately after they sell goods. This circumstance seems so abstract and unrealistic. I cannot deny Says law influence and implications. Says law is a pillar of classical economic theory. Understanding the inner implication of Says law is important for government to control a crisis or avoid a crisis.

Nerds of the Football World Essay -- Sports Athletics Media Essays

Nerds of the Football World It’s a typical Fall Sunday afternoon and millions of people are huddled around their televisions at home, or at sports bars watching their local team’s battle on the gridiron for football supremacy. Meanwhile, a growing number of the most diehard football fanatics are sitting around their computers. Why aren’t they watching the game you may wonder? It’s simple. A new phenomenon called Fantasy Football is sweeping the nation. The goal of fantasy football is to compile a group of players taken from the National Football League (NFL) that will out perform your opponents. Each player you select earns points for doing certain things within the real NFL game each week. Players score points by rushing for a certain amount of yardage, catching a pass, scoring a touchdown, and a variety of other things which occur in the real game. The game is both simple and complex. A group of people form a league and set a date for a mock draft. Prior to the draft the league decides what their roster will entail. A typical Fantasy Football League (FFL) usually consists of one quarterback, two running backs, three wide receivers, a kicker, and a team defense. More established leagues will sometimes draft individual defensive players, but the standard league still sticks with a team defense. Now that the roster size and description has been established the league gets together on a preset date and time via the internet and the draft day carnage ensues. It’s not called a mock draft merely because you are simulating a real NFL draft. Oh no. â€Å"Mock† takes on a whole new meaning as league participant’s trade banter over who drafts what player. Trash talking is a complex art refined and perfected by the expe... ...hould I replace my star running back with someone else because he had a bad week? These are all vital questions that must be answered before next weeks match up. After 14 weeks of trash talking, stat crunching, article reading, and hours of football watching, if your lucky you’ll find yourself in the playoffs. The playoffs are no different then the regular season except you will be pitted against the best of the best within your league. Four teams will battle each other over two weeks. If you stand alone at the end of the full 16 week season it’s time to do your victory dance. You are the undisputed champion of your league, and while your uncouth baseball fan friends may not understand the tiny 12† trophy you’ve bought for yourself and placed upon your desk at work, fellow FFL fanatics will pass by and bow down in homage to your fantasy football superiority. Nerds of the Football World Essay -- Sports Athletics Media Essays Nerds of the Football World It’s a typical Fall Sunday afternoon and millions of people are huddled around their televisions at home, or at sports bars watching their local team’s battle on the gridiron for football supremacy. Meanwhile, a growing number of the most diehard football fanatics are sitting around their computers. Why aren’t they watching the game you may wonder? It’s simple. A new phenomenon called Fantasy Football is sweeping the nation. The goal of fantasy football is to compile a group of players taken from the National Football League (NFL) that will out perform your opponents. Each player you select earns points for doing certain things within the real NFL game each week. Players score points by rushing for a certain amount of yardage, catching a pass, scoring a touchdown, and a variety of other things which occur in the real game. The game is both simple and complex. A group of people form a league and set a date for a mock draft. Prior to the draft the league decides what their roster will entail. A typical Fantasy Football League (FFL) usually consists of one quarterback, two running backs, three wide receivers, a kicker, and a team defense. More established leagues will sometimes draft individual defensive players, but the standard league still sticks with a team defense. Now that the roster size and description has been established the league gets together on a preset date and time via the internet and the draft day carnage ensues. It’s not called a mock draft merely because you are simulating a real NFL draft. Oh no. â€Å"Mock† takes on a whole new meaning as league participant’s trade banter over who drafts what player. Trash talking is a complex art refined and perfected by the expe... ...hould I replace my star running back with someone else because he had a bad week? These are all vital questions that must be answered before next weeks match up. After 14 weeks of trash talking, stat crunching, article reading, and hours of football watching, if your lucky you’ll find yourself in the playoffs. The playoffs are no different then the regular season except you will be pitted against the best of the best within your league. Four teams will battle each other over two weeks. If you stand alone at the end of the full 16 week season it’s time to do your victory dance. You are the undisputed champion of your league, and while your uncouth baseball fan friends may not understand the tiny 12† trophy you’ve bought for yourself and placed upon your desk at work, fellow FFL fanatics will pass by and bow down in homage to your fantasy football superiority.