Evidence from Privatization Essay Example | Topics and Well Written Essays - 1000 words

Evidence from Privatization - Essay Example However, due to limited budgets, governments have been unable to develop all part of the economy equally. Further problems like inadequate use of knowledge, experience and specialization in the management of the various sectors occur and citizens may not receive goods and services from the public enterprises effectively. Lack of competition in the public sector contributes a great deal in the inefficiencies, corruption and lack of motivation in public enterprises (Khan et al., 2012). The main reason governments have opted for privatization is the belief that private firms can make a more efficient and effective use of available resources than governments and at the same time profit the government from the higher revenues privatisation creates. It is also believed that privatisation may result to increased efficiency productivity and liquidity in the financial markets but on the other hand, lead to unemployment and dependency on foreign capital from multinational companies hence decli ne in a nation’s wealth and social welfare (Han, 2012). Full privatisation may have occurred especially in the services sector but it is generally not ideal for governments to conduct a full privatisation. Where natural resources and sensitive goods and or services for instance nuclear energy, partial privatisation is preferred. In this case, the government gives part of the ownership to a private firm, so that it can still have active control in the operations. Privatisation can take place either through share issue privatisation (SIP) which involves selling shares on the stock market or selling the whole firm or part of it to a strategic buyer by auction, asset sale, voucher privatisation or shares of ownership distributed to all citizens (at a low fee or even for free). SIP is the most common and it extends the domestic capital markets and increases the investment opportunities which in turn will stimulate economic growth though some risk is involved. Finding enough buyers could be a problem and as a result the prices drop and the capital gains become insignificant, in turn the transaction costs become high. Asset sale privatisation is common in developing countries. Voucher privatisation was common in the former socialist economies during the transition process. Asset sale and share privatisation are usually beneficial to the government as bidders normally compete and hence offer a high price which makes more money for the government (Walailuck and Christian-Oliver, 2011). Evaluation of privatisation should be from a point of view of the society’s well-being, not from the profit maximisation of the firms. The welfare of the people and the country in general and the state of its economy should be continually improved. There is a general view that all government involvement in the market represents some restrictions to business liberty so it has become intrinsically detrimental. Privatisation is a form of withdrawal of government involvement in business. Since 1980, many European countries have launched privatisation programs with the Great Britain being referred to as the origin of modern privatisation (Ioannis, 2012). Privatisation leads to enhanced economic performance.  

How Milton develops Paradise Lost against Epic Tradition Essay Example for Free

How Milton develops Paradise Lost against Epic Tradition Essay One of the passages in Paradise Lost is â€Å"Answerable Style† specifically the Genre of Paradise Lost wherein the main concern of Milton pertains to which genre must be chosen and not just a simple matter to seek the story’s perfect medium but the writer’s anxiety in placing himself with the poetic tradition known as old centuries. With his decision in writing an epic, Milton was able to place himself in the writers’ epic tradition like for instance the Medieval and Renaissance poets Dante. The content of the Paradise Lost is the classical and epic conceits in the Renaissance concerning heavenly beings with the possible interaction while using the epic similes as well as the places and people’s catalogues with muse invocations. This means that the themes’ content is usually common to epics like for example war, its nationalism, the empire and the origin stories. Another passage in Paradise Lost is â€Å"Things invisible to mortal sight†, which means the classical epics of gods and goddesses and the desires including disagreements are mirroring the human but that of Milton is omnipresent and also invisible. Milton’s God cannot be compared to any individual because of His existence. In Paradise Lost, the story was inspired by the heavenly muse wherein fallen humans are unknowable. God’s portrayal by Milton became the subject of such debate among those scholars as well as critics. Still Milton believes in God’s power and yet explains the foreknowledge of fall and yet human beings may even fall to temptations because of free will given by God to choose and made a decision for them. This is not comparable with those gods as well as goddesses in terms of the epics in classic because of different views and beliefs but still Milton has his own presentation in his belief with God.

Role Of Technology In Business

Role Of Technology In Business In todays competitive business environment, speed is the key for all the business processes. A business process would be inefficient and ineffective without the aid of current information technology. Today, information technology provides communication and analytical power that organizations need for global level business. Globalization of world economies has enhanced the values of information to business organisations and has brought success and new opportunities to the business. All types of business have to compete with their competitors for capturing majority of the market and for innovating better products and services. For this reason, they need to adapt to the technology to handle information systems. Because, being the first to introduce a new product in the market leaves a significant mark to the industry and will give a competitive edge. This advantage is not possible without information systems and technology in business. In addition to this, for improved customer service, easy information retrievals, quick preparation of financial transaction, easy building of strategic alliances etc., IT plays a major role in business. Importance of IT in business Almost all kinds of businesses are relying on computers for automating their traditional processes. Businesses use wide variety of databases, management information systems, information sharing platforms, data sharing networks, internet, intranets, machines, and equipments etc which highly rely on computers. Computer technologies are not only used in the field of finance or marketing, but also in the medical industry, human resource departments, inventory control management systems etc. For example, in a manufacturing firm, all transactions done in a warehouse is loaded in a transaction processing system. If the system is not around it will take a lot of time and also manpower to record all the raw materials coming out of the warehouse for use in the production floor which delays production and shipping of parts. The lead time from ordering to producing and shipping the product will be a long which customers will not understand. Speed is very important to be competitive. IT and competitive Advantage The current challenge of implementing IT-dependent strategic initiatives like business process reengineering, customer intimacy, organizational learning, and even organizational transformations makes an IT capability very valuable in meeting business. In addition, the underlying resources, or IT management assets, can be difficult for competitors to imitate. Thus an IT capability has the potential for delivering long-term competitive advantage. The U.S. trucking industry was deregulated in 1980. Schneider National, Inc., is a large truckload carrier. The top management recognized that IT support of operations would be critical for maximizing utilization of its tractors and trailers. Schneider quickly developed freight modelling software and provided a management interface to the data that enabled the firm to offer more reliable customer service with a lower cost base than most competitors. Schneider National is successful because it has developed a capability for applying IT to ever-changing business opportunities. (Ross, Beath et al. 1996) Impact of IT in business Effective implementation of information technology would decrease liability by reducing the cost of expected failures and increase flexibility by reducing the cost of adjustment. Information Technology is having impact on all trade industries and businesses, in service as well as in manufacturing. It is affecting workers at all levels of organizations, from the executives to middle management and clerks. Information technology is increasingly becoming a basic factor of all types of technologies such as craft, engineering, routine, and non-routine. The advances in Information Technology would result in remarkable decline in the costs of synchronization that would lead to new, concentrated business structures. It enables the business to respond to the new and urgent competitive forces by providing effective management of interdependence. Decision Making Enterprises would need effective information systems to support and to deliver information to the different users. Such information systems would include technology that support decision making, provide effective interface between users and computer technology and provide information for the managers on the day-to-day operations of the enterprises. Information is needed for various purposes and serves as an invaluable commodity or product. Information is very important aspect of decision making in all levels of management in enterprises [Hicks, 1993:648], especially in competitive business environment and managers utilize information as a resource to plan, organize, staff administer and control activities in ways that achieve the enterprises objectives. The ability of enterprises to realize their goals depends on how well the organisation acquires, interprets, synthesises, evaluate and understands information and how well its information channels supports organisational processes. Information glut In the near future businesses would be facing a lack and a redundancy of information called information glut. To solve the information-glut companies will need to introduce methods for selective thinning out of information. Improvements in telecommunications will make it easier to control business units dispersed over different parts of the world. Advances in telecommunications, would result in increased distance-communication. Indirect communication would be preferred for well-structured information for routine, pre-programmed and decision processes. (King, 2006) Therefore, information technology plays a major role in the growth of business. Conclusion The effect of information technology on business advantages is likely to be durable since flexible IT build backbone of the firms for communication and exchange of information. Not only IT infrastructure enhances the competitiveness of the firms by increasing the coordination within and across the organizations, but also it can be an integral component of the business strategy (Henderson and Venkatraman, 1993; Laudon and Laudon, 2000). Thus, a flexible IT infrastructure may not only be important for driving business growth but also it could be a catalyst for innovation. Moreover, IT is important to improve operational efficiency and strategic advantages by reducing costs, improving agility, managing change, and maximizing performance (Henderson and Venkatraman, 1993).

Women In The Odyssey Essay -- essays research papers

The literature composed during the era when the Odyssey was written was directed by men. Woman characters were valued but the only participated in affairs when they had the permission of men. The men, for the most part, directed the women's lives. The themes used in literature were on the subjects that men would be interested in; combat; warriors, and rulers. Domestic affairs, for the most part, were not noted. There is a immense contrast between the Odyssey and other epic poetry of the period. There are several women characters in the Odyssey. All of them add to plot in significant ways and they are also treated with admiration. The women of the poem change the lives of the gods and men, and how they link in significant ways to one another. Penelope, the wife of Odyssues, is the perfect wife and mother. She is also independant and intelligent. Penelope's character is Homer's model of the ideal woman. She worries when her son Telemachos sails to locate his father and grieves over the absence of her husband. Many times throughout the poem Penelope cries herself to sleep, yearning for information of her husband's welfare. Even after nearly twenty years of absence, Penelope still praises of her husband. At any time Penelope could have married one of the suitors and provided a father figure for her son. This fact demonstrate Penelopes loylaty to her husband. . Standing before the suitors, Penelope announces that whoever among them can string the bow and shoot an arrow through ...

Cost Method Paper Essay

Absorption accounting method according to E Notes (n.d.) â€Å"is a method of accounting where all costs of the manufacturing are included and are allocated to the produced units†. This would include fixed, variable and mixed costs. This type of accounting would allow a more accurate figure to supply to upper management about their product and what the bottom line is. This is the most important factor in Absorption accounting. The variable method is beneficial because it provides an output that is closer to the actual cash flow of a business. If a business is short on money this may be a better alternative. Absorption costing is particularly useful for firms that do not sell their entire yield during the manufacturing period, as is the case with Polk. Under absorption costing, the cost of a good is not shown until the good has been sold. This can be a drawback if a portion of the goods produced are not sold, as the company would still have to know the actual price of these tha t were left over. In this case, it would be better to use the absorption method because this method integrates only the operating expense that is due to the 81,300 units sold. The variable method counts fixed overhead as a time expense, meaning that the fixed overhead for this period is calculated on the basis of the 96,100 units produced, if the absorption method is used. The variable method only computes fixed overhead on the foundation of the 81,300 units that were sold. This provides management with a more accurate picture of the yield of the fishing lures. References Absorption Accounting. (n.d.). Retrieved from http://www.endnotes.com

Mercury Athletic Footwear Essay

1. Active Gear is a relatively small athletic and casual footwear company $470.3 million of revenue and $60.4 million of EBIT compared to typical competitors that sold well over a $1.0 billion annually Company executives felt its small size was becoming more of a disadvantage due to consolidation among Chinese contract manufacturers. Specialty athletic footwear that evolved from high performance to athletic fashion wear with a â€Å"classic† appeal. Casual/recreational footwear for walking, hiking, boating, etc.. Affluent urban & suburbanites in the 25-45 age range (i.e. â€Å"Yuppies†). Brands are associated with upwardly mobile lifestyle. Department & specialty stores – no big box retailers. 2. Company strengths: By focusing on a portfolio of classic brands, Active Gear has been able to lengthen its product lifecycle. In turn, this has led to less operating volatility and better supply chain management as well as lower DSI 3. Company weaknesses: By avoiding the chase for the latest fashion trend and avoiding big box retailers, the company has had very low growth 4. Mercury was a subsidiary of a large apparel company As a result of a strategic realignment, the division was considered to be non-core. 2006 revenue and EBITDA were $431.1 million and $51.8 million respectively Under the egis of WCF, Mercury’s performance was mixed. WCF was able to expand sales of footwear, but was never able to establish the hoped for apparel line 5. Products, Customers and Distribution: Men’s and women’s athletic and casual footwear. Most products were priced in the mid-range. More contemporary fashion orientation Typical customers were in the 15-25 age range. Primarily associated with X-games enthusiasts and youth culture Products were sold primarily through a wide range of retail, department, and specialty stores – including discount retailers 6. Company strengths: Established brand and identity within a well-defined niche market that seems to be growing. Strong top-line growth resulting from inroads with major  retailers. Products were less complex; and therefore, cheaper to produce 7. Company weaknesses: Increased sales came as a result of pricing concessions to large retailers. Proliferation of brands led to decreased operating efficiency and a longer DSI. Women’s casual footwear was a disaster Central Question: What Are the Likely Rationales for a Combination of Active Gear and Mercury? How do the acquirer and target fit together? What are the potential sources of value? How would any potential sources of value be realized? Potential sources of value creation: Operating synergies coming from economies of scale with respect to contract manufacturers Perhaps some economies of scope with respect to distribution – extending the distribution network Possible combination of the women’s casual lines Counter arguments to value creation: Poor strategic fit – Mercury’s focus is on a totally different market demographic Likewise, Mercury’s niche maybe significantly more prone to fashion fads Continued growth of extreme sports category may make Mercury’s business vulnerable to the large athletic shoe companies Firm Value & Cash Flows: 1. As a starting point, let’s start with a basic valuation paradigm Note that the sole determinant of value is the generation of cash flow Further the only relevant factors are the amounts, timing and risks of the cash flows FCF is assumed to be the mean of an a random distribution Determination of FCF To begin, the preceding equation led to a value of the entire enterprise, meaning V = D + E Thus, we are interested in what the total business is worth irrespective of who gets the cash or how it’s financed In turn, this means we are interested in the un-levered FCF Un-Levered FCF = EBIT(1-t) + Depr’ – ∆WC – Cap-x Determination of FCF In case Exhibit 6, Liedtke provides a set of projections for each of the operating segments – Thus, Multiplying EBIT by (1-t) yields the first term in the FCF equation Question: Are taxes being overstated? It is true that interest expense creates a tax shield However, the value of the tax shield is acknowledged in the WACC or in a separate calculation when using APV