Illegal immigrants receiving social services, for example, food Essay

Illegal immigrants receiving social services, for example, food stamps, welfare, and medical care - Essay Example Most these people come from the South America and Southeast Asia. Majority of these undocumented immigrants head to California, Texas and Florida. The large number of immigrants, whether legal or illegal significantly impacts the economical state of the country. The Federation for American Immigration Reform estimates about $45 billion worth of expenses for providing social services, education, roads, prisons and other services to these unauthorized immigrants (Glicken, p.375). In contrast, studies that focus on illegal immigrants such as a paper published by the American Immigration Law Foundation indicate that unauthorized immigrants does not use public services as much as the legal immigrants (Wepman, p.339). The paper specifically states that a 1987 study as an example that just 2% of illegal Mexican immigrants received welfare and just 3% accepted food stamps (Wepman, p.339). This suggests that unauthorized immigrants are not significantly impacting the social welfare system of the United States. One of the major concerns relating to undocumented immigrants is their use of the social welfare system. Because these illegal immigrants come to the United States without resources or employment, they use the services and public support provided by the United States. ... ill humans and they have the right to live, thus, the Welfare Reform Act of 1996 was provisioned to restrict them from any grants and retirement, welfare, health, disability, food assistance and unemployment benefits but still receive emergency medical services. Undocumented immigrants have clearly impacted the economical and social state of the country. Conservatives believe that these people drain the social welfare as they go about using the legal taxpayers’ money for their social needs, such as medical and food assistance. On the other side of the fence, opposing views believe these people do not so much take a part of the social welfare system as the legal citizens and immigrants do. Because undocumented immigrants know and understand that they are unauthorized immigrants, they do not come forth claiming benefits for fear of being identified, thus risking deportation. That is also the main reason these people are underpaid, overworked and unfairly treated in labor, housin g and education. It is important to understand that illegal immigrants do not actually have the same federal rights as the legal immigrants. Thus, they have a lower chance of using the social welfare system to cover their needs. Yes, they impact the social welfare system in terms of medical services but it doesn’t mean they aim to spend billions of dollars claiming medical benefits. What is important for them is to live and not to die. That’s actually the main reason they come to the hospital, even if they know they are undocumented immigrants, and not to extort money from the state. Yes, there are some groups calling for increased benefits for the illegal immigrants but the state is still in control of who they provide the services for and who they restrict. That’s the reason for the

Impact of the war on terror on Rules of Evidence Essay

Impact of the war on terror on Rules of Evidence - Essay Example However the alteration of the U.S. security system after 9/11 and various fresh national security agendas have produced extensive anxiety over the safeguard of international human rights, democratic standards, and several rights preserved in the U.S. Constitution that outline the civil liberties of the American citizens. Since the United States has not experienced any more attack on U.S. soil, which shows the efficiency of different U.S. counterterrorism efforts. But the 9/11 terrorist attack led the U.S. administration to review several existing laws and strategies and to make fresh ones, mistakes and exceeding the limit associated with these labors added grave erosion of faith in U.S. guiding principles and direction. In foreign countries, exposures of extrajudicial apprehensions and detainee mistreatment have damaged U.S. status and sincerity. Further it hindered counterterrorism collaboration with allies, and endowed with provocative misinformation that helps terrorist radicalization. Internally, policy deviations over security and civil liberties have been recurrent, extensively revealed, and sensitively charged, creating a situation of animosity and doubt that has confronted the people’s faith in the administration, caused division among supporters, and destabilized collaboration among the political branches of government. (Prieto, 2009). Criminal laws of US normally focus on dealing with criminal actions that have already happened, and are less effective in attaining the counterterrorism aim of preventing future attack. Criminal laws face a lot of disputes in tackling the terrorist threat. Even after a person is detained, a number of challenges face a successful criminal trial. Before 9/11, criminal trials relied on involving the defendant to a specific violent act or a plot to perform such an attack. The admissibility of evidence causes an additional challenge. Information that may be suitable in an intelligence framework may fail to suit the

A CBR-based Approach to ITIL-based Service Desk Essay examples -- Custo

Abstract: Many organization’s customer service and technical support department like to use Service Desk systems. It is crucial to provide a convenient and fast method. In this paper the Incident and Problem Management of ITIL framework are described and used as the underlying structure of Service Desk and then CBR technique is selected for the main implementation technique after make a comparison between CBR and RBR. Lastly, this paper actually tries to work on new perspective by adopting Knowledge management techniques with Services Desk systems. INTRODUCTION The Knowledge Management Service Desk has attracted attention. By adding Knowledge Management to the ITIL (IT Infrastructure Library), the importance of Knowledge Management in IT organizations is observed more than ever. Service Desk makes the accessibility and availability of IT organization’s services in supporting the agreed IT service provision become easy. By using Service Desk the reception, response and troubleshooting of end-users’ issues regarding organization’s services are solved. There are several problems in Services Desk topic. First is the acquisition of the knowledge about information technologies supported by Service Desk. The technicians must have the knowledge of information technologies to solve the reported incident. But, nowadays the information technologies are increasing rapidly. The other problem is to finding proper solution when technicians do not possess the knowledge over domain to find the solution in term of time consuming. Knowle dge Management can be describe as a technology that increases our understandings and helps the organizations to make decisions and solve problems more effectively by providing strategy, process and technology... ...ime to fill the database, and it is effective to find nearest neighbor of the current incident. CONCLUSION Nowadays, many organization’s customer service and technical support department like to use Service Desk systems. It is crucial to provide a convenient and fast method. In this paper the Incident and Problem Management of ITIL framework are described and used as the underlying structure of Service Desk and then CBR technique is selected for the main implementation technique after make a comparison between CBR and RBR. Lastly, this paper actually tries to work on new perspective by adopting Knowledge management techniques with Services Desk systems. Works Cited Farjadi Tehrani, A. R., & Mustafa Mohamed, F. Z. (2011). A CBR-based Approach to ITIL-based Service Desk. Journal of Emerging Trends in Computing and Information Sciences, 2(10), 476-484. A CBR-based Approach to ITIL-based Service Desk Essay examples -- Custo Abstract: Many organization’s customer service and technical support department like to use Service Desk systems. It is crucial to provide a convenient and fast method. In this paper the Incident and Problem Management of ITIL framework are described and used as the underlying structure of Service Desk and then CBR technique is selected for the main implementation technique after make a comparison between CBR and RBR. Lastly, this paper actually tries to work on new perspective by adopting Knowledge management techniques with Services Desk systems. INTRODUCTION The Knowledge Management Service Desk has attracted attention. By adding Knowledge Management to the ITIL (IT Infrastructure Library), the importance of Knowledge Management in IT organizations is observed more than ever. Service Desk makes the accessibility and availability of IT organization’s services in supporting the agreed IT service provision become easy. By using Service Desk the reception, response and troubleshooting of end-users’ issues regarding organization’s services are solved. There are several problems in Services Desk topic. First is the acquisition of the knowledge about information technologies supported by Service Desk. The technicians must have the knowledge of information technologies to solve the reported incident. But, nowadays the information technologies are increasing rapidly. The other problem is to finding proper solution when technicians do not possess the knowledge over domain to find the solution in term of time consuming. Knowle dge Management can be describe as a technology that increases our understandings and helps the organizations to make decisions and solve problems more effectively by providing strategy, process and technology... ...ime to fill the database, and it is effective to find nearest neighbor of the current incident. CONCLUSION Nowadays, many organization’s customer service and technical support department like to use Service Desk systems. It is crucial to provide a convenient and fast method. In this paper the Incident and Problem Management of ITIL framework are described and used as the underlying structure of Service Desk and then CBR technique is selected for the main implementation technique after make a comparison between CBR and RBR. Lastly, this paper actually tries to work on new perspective by adopting Knowledge management techniques with Services Desk systems. Works Cited Farjadi Tehrani, A. R., & Mustafa Mohamed, F. Z. (2011). A CBR-based Approach to ITIL-based Service Desk. Journal of Emerging Trends in Computing and Information Sciences, 2(10), 476-484.

Exam Questions Essay

Advanced countries, which have the capability to innovate, as well as high-income levels and mass consumption, will sell the item first to its domestic market, then will become initial exporters of goods to other technically advance countries. After the product becomes adopted and used in the world markets, production gradually moves away from the point of origin. The advanced country loses their exports initially to developing countries (who will import and later manufacture these goods) and subsequently to less developed countries. Eventually, the original advanced country (original innovator) will become importers of these goods because they will have begun producing other new products. The duration of each stage of the cycle varies with the product and the type of management supporting it. Understanding the product life-cycle stages allows a company to fully take advantage of market opportunities by either establishing or protecting a competitive advantage through a long-lasting market presence. The main usiness reason for extending the product life-cycle would be to increase sales through longer existence in the marketplace. Certain consumers will embrace a product at different stages of the product life cycle so by extending each stage of the cycle, there is a better chance of exposure to the targeted consumer group. A commonly used example of this is the invention, growth and production of the personal computer. Stage one is considered the new product stage and this is where domestic production essentially begins. After a period of research and development, a new product is introduced to meet local (or national) needs. The product is created, produced and consumed in the domestic market and virtually no trade takes place. During the introduction phase, the innovating company does not know the extent to which a profitable market exists. For instance in the late 1970’s and into the early 1980’s, during the early stages of the personal computer, IBM and Apple pc’s were produced in the US and aimed for office and small business use. Personal computer use spread quickly throughout the domestic market as more and more households made purchases for increased personal productivity and gaming purposes. In stage two, the maturing product stage, domestic production peaks as the demand for the product significantly increases since the consumer base begins to acknowledge the product value. This stage is signified by a period of growth as sales and a rise in profits as mass-production techniques are developed and foreign demand expands (developed countries). At this stage the product is now exported to other developed countries and both domestic and foreign competitors emerge. A copy product is produced elsewhere and introduced in the home country (and elsewhere) to capture growth in the home market. Based on production costs, manufacturing moves to other countries. As was the case with Apple PC’s, production in this stage moved out of the original facility and into manufacturing plants in California and Texas as well as distribution warehouses in both the US and the Netherlands. Stage three is the standardized product stage. This is when the market for the product stabilizes and domestic production declines. The product becomes more of a article of trade and companies are compelled to reduce manufacturing costs which is the main reason for moving production sites to countries with lower labor costs. As production moves to developing countries, in turn, they begin to export the product to developed countries. A product saturation phase is experienced as sales level off and the first signs of decline occur. In the personal computer industry, the US market low-priced brand-name imports from producers such as South Korea’s Hyundai and Samsung. Several Taiwanese manufacturers exported millions of personal computers both to the US and other countries, a large portion which are produced for foreign distributors. To contest this, Apple condensed their product line, expanded use of industry standard parts, outsourced component manufacturing and streamlined warehousing operations. There is a final stage of decline in which poorer countries constitute the only markets for the product and import competition is very strong. At this point, almost all declining products are produced in less developed countries. The PC is not necessarily a good example of decline, for one because there is a weak demand for computers in less developed countries, but rather an example of technology that is ever improving which would make earlier versions of computers and related software obsolete. Normally, a product may finally disappear from the market at this point, however, PC technology continue to improve. There is no threat of the PC disappearing, but certain versions will eventually become dinosaurs. . Explain Porter’s Diamond in terms of Nokia’s development as an international mobile telecom powerhouse. Michael Porter’s â€Å"theory of national competitive advantage† framework was the product of a study of patterns of comparative advantage among industrialized nations and looked at sources of competitive advantage from a national context. The diamond-shaped theory can be used to evaluate both a firms’ ability to function in a national market as well as a national markets’ ability to compete internationally. Porter’s theory of international trade comes from the interaction of four country- and firm-specific elements: 1. Factor conditions – this is a country’s legacy of production factors that affect its ability to compete on an international level such as human resources, physical resources, knowledge resources, etc. Porter looks beyond the most basic factors of land, labor and capital to include the educational level of the workforce and the quality of the country’s infrastructure. 2. Demand conditions – demand in the home market helps the company to establish a competitive advantage. A highly developed domestic market will pressure a firm to innovate faster and to create more advanced products than those of competitors. When the domestic market for a particular product is larger locally than in foreign markets, the â€Å"home† firm will devote more attention to that product which leads to a competitive advantage when exporting begins. 3. Related and supporting industries – these related and supporting industries provide cost-effective inputs and participate in the process of upgrading which serves to stimulate other companies in the chain to innovate. When local supporting industries are competitive, the â€Å"home† firm experiences more cost-effectiveness and innovation. This effect is reinforced when the supporting industries (suppliers) are strong competitors as well. 4. Firm strategy, structure and rivalry – the way in which companies are created and managed are important for success. The presence of rivalry in the domestic market is important because it creates pressure to continually innovate in order to promote competitiveness. Other conditions that affect the diamond theory are: – Government – obviously the government can influence the supply conditions of key productions factors, the demand conditions in the domestic market and the competition between domestic firms. The government can also intervene on several different levels (local, regional, national, international). -Chance – clearly, chance events will occur that are outside the control of the domestic firm. Chance is important because it can create or disrupt competitive positions. Porter’s Diamond in terms of Nokia Factor conditions: -Finland is one of the world’s most homogenous and stable societies as well as having very sophisticated consumers; -As a country, Finland has invested money into a strong educational system which gives them an excellent educational system with which to provide the necessary work force; -Finland has a uniform, market-oriented government; Nokia, with close ties to national government, has helped propel technology, legal issues and export opportunities. Finland as a whole has a national competitive strategy; -Substantial public investment in telecommunications-related R&D which focuses on wireless technology; -Finland has a tradition of innovative engineering and telecom industry -Due to harsh physical and natural conditions, options for a land-based wired system was a very expensive option, making wireless digital systems a relative bargain for the same price; -Most of the population speaks English; -Finland was an early adopters of the internet and other wireless activities. Demand conditions: – As mentioned in the Factor Conditions, a sparsely populated area supports adoption of wireless devices; -The weather and physical supports mobile phone over face-to-face conversations; -Nationally, a heavy usage of texting and other wireless message services; -Finland a test market for wireless applications; -Nordic Mobile Telephone created the world’s largest single mobile market. Related and Supporting industries: – Huge R&D spending by government and companies; Finland, as a whole, offers strong venture capital, and a strong manufacturer network; -Due to the nature and need of wireless communication, there is a high number of specialized companies due to fragmented market; -There are approximately 3,000 Finnish firms in telecom and IT related products and services; -There is a large local supply allowing for highly customized contributions Firm strategy, structure and rivalry: – Significant historic reasons for highly competitive la ndscape within Finland; -A very strong export-centered commerce experience; Sturdy network and links between companies, banks and governments; -The Regional Development Agencies Act favors intense rivalry; -History of competition in telecommunications services throughout the 20th century; -Finland was early to deregulate in telecom-related industries; -A high number of telecom firms create an active local rivalry in wireless communications; -There is no monopoly on any of the value chain parts of telecom and a very healthy competition between companies; -European consumer demand (roaming, etc. ; Finland has been a part of the European Common Market since 1995. Other conditions that affect the Diamond Theory: – Government oVery stable with a long-term view (low turn-over with 6-year terms); oStrong initiatives to improve national innovative capacity; oAssurance of technological neutrality; oOpen socialist economy; -Chance oConditions in Finland provided a unique medium for Nok ia’s success. Creating, maintaining and updating land-based wired communication networks can be very slow and very expensive which made wireless digital systems seem a virtual bargain. . What is Absolute Advantage and how does Intel’s global position in mircoprocessors reflect this? Adam Smith developed the theory of absolute advantage which asserts that one party (a nation, a firm, etc. ) benefits from manufacturing more output than others since it is possess a unique resource or commodity. This particular resource or commodity can be a certain method, a distinct knowledge or manufacturing process that increases production efficiency, and thus reduces the relative need for additional resources. The theory holds that different countries (or firms) produce some goods more efficiently than others based on those particular resources or commodities. Limitations to the theory exist if there multiple unique resources or commodities – once the hypothesis expands to include multiple unique resources, the absolute would turn to a comparative advantage. Generally, in international trade, countries export goods/services when they have an absolute advantage in that product area and will import goods/services when another country (or firm) has the absolute advantage. Intel and Dell had a unique relationship in this regard – Intel had set the industry bar in terms of microprocessors and Dell, using Intel exclusively, became one of the strongest PC manufacturers in the world based on their distinctive marketing tool of â€Å"custom-made† computers. Both firms benefited from this relationship as they both had an absolute advantage on the items they produced. Further, according to the theory, if a country (or firm) has no absolute advantage in any product or service, no trade will occur. For instance, if both Intel and Dell manufactured microprocessors and PC hardware, no trade would exist between them – they would be direct competitors since no benefit would exist to either of them. A competitive advantage occurs when a firm acquires or develops a product or feature that allows it to outperform its competitors. To gain competitive advantage, the firm strategy is to manipulate that unique resource or commodity over which it has a direct advantage which gives them the ability to generate a competitive advantage. Superior performance outcomes and superiority in production resources reflects competitive advantage, and in doing so, gives a firm absolute advantage over an industry (or product). In the case of Intel’s global position in microprocessors, their strategy has been to continually introduce cutting-edge technology which ultimately means that consumers pay for the research and development of the speeds of new chips. It is a cyclical process, which demands more research and development of even faster, smaller products. The company does this to constantly renew consumer need which helps keep margins high. This business model of Intel’s can be compared to the auto industry’s â€Å"planned obsolescence. † The introduction of new models means the previous model is not as good, or new, anymore. As such, consumers feel compelled to purchase the newest, latest, greatest product. The trends are pushed by more powerful applications, which in turn create the need for new stronger, faster microprocessors and other new generations of computer products. Here are some of the contributing factors in Intel’s absolute advantage in the microprocessing industry: 1. Distinct ability to draw a prevailing share of the market’s attention – Intel benefited from a very exclusive and significant relationship with Dell (â€Å"Intel Inside†) until May 2006. With Dell being a major player in the computer hardware market, they offered â€Å"custom-made† computers with an exclusive agreement to offer only Intel processors inside. 2. Capability to impose innovative obstacles which created more labor for any competition – Not only did competitors already struggled to meet specs for the industry standards, they also experience issues keeping up with Intel’s production speed and product features. 3. Drive costs down and keep profits up – Intel was able to make its partners (and consumers) pay for this with an average selling price of over $150 a unit. PC makers had to accept this because at the time, Intel was only choice. 4. Strong reputation as the â€Å"reliable† standard – PC makers and consumers had not reason to look for alternative processors based on Intel’s innovation combined with the lack of reliable parts produced by competitors. 5. Economy of scale – Because the per unit cost of manufacturing depends on the size of the firm’s output, the larger the firm, the greater the scale of manufacturing benefits. Due to Intel’s economy of scale in the microprocessing industry, they could potentially monopolize the industry. Based on Intel’s strengths mentioned above as industry leaders (#2) as well as their ability to drive costs down while keeping profits up, Intel was untouchable and could manage to win any price war brought on by the competition. The Intel quality was also so high that the unreliable chips made by the competition almost, until recently, didn’t even create much of a price war since there wasn’t another game in town. 4. Explain Comparative Advantage? Then describe the development of India’s software industry and how it reflects one theory of competitive advantage. Comparative advantage theory is an international trade theory attributed to David Ricardo that indicates that firms or nations trade because they have superior productivity in a particular industry and can produce that particular good or service at lower marginal and opportunity costs than another party. In simple terms, this theory explains how trade can create value for two parties even if one party can produce all goods with fewer resources than the other. The thought being that each country can gain by specializing in the goods/services where it experiences this cost/efficiency advantage and trade that good/service for another where they do not posses the same advantage. Governments may attempt to counter comparative advantage by raising trade barriers, imposing high tariffs, and allowing newer and relatively uncompetitive industries ample time to become established. Comparative advantage is an appropriate theory to explain why particular countries export more services that support the global supply chain of both multinational enterprises and domestic firms. The source of a nation’s comparative advantage evolves from the mixture of its own factors of production such as availability of workforce, labor skills, access to capital, land and technology. For example, India is an excellent example of a country that has developed a highly efficient and low-cost software industry. This industry supplies not only the creation of custom software, but also call centers for customer support and other information technology services. The Indian software industry is composed of many subsidiaries of multinational corporations as well as independent companies. This question focuses on the rise of the software industry in India. As a relatively poor country, India in the past has not normally been thought of as a nation that is capable of building a major presence in a high-technology industry (e. g. , software). However, over the last decade or so, the Indian software industry has become an important force in the global software market. Among others, the main factors that have boosted India into this position are their large number of well-educated, English-speaking work force, a strong national work ethic coupled with technical experts who are paid only a fraction of the salary (including overhead) earned by U. S. counterparts. Additionally, the low cost of international telecommunication networks further enhances the comparative advantage of an Indian location for outsourcing. India has a comparative advantage in those services that are tradeable such as business process outsourcing and programming services. In looking at IBM’s outsourcing and how it utilizes both a US workforce and an outsourced Indian workforce, it is important to identify the relative strengths of each. For the mainly technical aspects of the job, IBM realizes cost savings by using the Indian workforce. Since programming wages are low in India and the average productivity of Indian programmers is somewhat comparable to the productivity of US programmers, then India can potentially enjoy a comparative advantage in programming. For those aspects of the job specializing in knowledge of a clients’ business, the US workforce is well-matched to do the job. The complementary nature of these two separate workforces rose out of the need of IBM to compete in more than just one area in order to succeed. Utilizing the Indian workforces allows IBM to realize a cost savings that can be used in other areas of their business. India, on the other hand, benefits from the trade with IBM by realizing large employment in the country as well as a boost to the economy that will only help to continue developing the country. 5. Explain briefly the common patters of successful Japanese entry into global markets once dominated by US firms such as RCA, Xerox and GM. In the business world, an initial direct attack of a competitor is usually most advantageous to the defending company since the attacking company usually ends up spending an exorbitant amount of resources without ever actually reaching its goals. This is a prime description of certain large companies such as General Electric, Xerox and RCA back to the 1970’s when all of them waged war against IBM in the computer market. All suffered very heavy monetary losses and as a result, did not engage further in the computer industry. The gamble cost these companies devastating sums upward in the millions. A company’s objective is to make use of its resources in such a way that allows them to maximize the market share. Direct attacks don’t necessarily serve that purpose, but rather the indirect attack seems to be more successful. The successful market penetration by Japanese companies was facilitated by an indirect approach. As one example, Xerox was an established leader in the photocopier field and by the 70s ruled the copier market, controlling the majority of the market’s share. However, within a decade, Japanese companies outwitted Xerox, and proceeded to follow suit in other industries (such as the auto industry) by launching indirect attacks on the smaller portion of the consumer base, and eventually swallowing up the entire market. The Japanese discovered that Xerox was marketing and supplying large copiers mainly to only large companies. That left millions of smaller companies using more local and less known supplies to meet their copying needs. These smaller companies couldn’t afford by purchase on the large scale of Xerox, nor did they have the physical space to store the industrial-size equipment. Enter the Japanese market with companies focusing on this weakness and entering the market focusing on the needs of the smaller organizations. Because there was no immediate effect on sales, Xerox took no notice of the market competition. As soon as the Japanese companies gained traction in this market, by focusing on the need of smaller products, lower prices, simplified technology, and distribution through office-supply dealers, tactics began to change as the Japanese continued to build upon their consumer base. The product ranges broadened with superior technology and more product choices. Towards the mid 80’s, the Japanese had made a considerable difference in the size of the market share, leaving Xerox behind and struggling. The Japanese business culture has seen significant success with a strategy of focusing in on an a smaller, overlooked, neglected, or emerging market segment and targeting in on the weaknesses of the competitor thereby gaining an advantage that affords a company the grip it needs to make gains in the market segment. Once that grip is found, the Japanese company consolidates their product’s position by mobilizing all resources and expanding into the rest of the market.

Dealing With Viral Social Media Blunders - 957 Words

Dealing with Viral Social Media Blunders: The emergence of social media has not only transformed modern communications but it has also provided new, unique, and powerful opportunities for organizations to communicate. Most of these organizations and companies have used social media as a platform to promote their businesses through communicating with new, current, and potential clients and/or customers. As a result, social media is gradually developing as an important part of organizational strategy and marketing. However, since social media is relatively a novel discovery, there are several mistakes associated with it that are bound to occur. In most cases, social media postings are permanent and can become viral in a short period of time i.e. few days. Therefore, organizations need to carefully manage their communications in order to deal with the potentially damaging viral social media blunders. Viral Social Media Blunders: An example of a potentially damaging viral social media blunder is the Windows Phone challenge in Santa Clara Microsoft Store. The competition basically involves challenging people to complete a task quicker than a Windows Phone on their smart phone and potentially win a Special Edition Laptop. Individuals who get smoked by a Windows Phone would in turn have the chance of trading their current device for a Windows Phone (Katta par, 1). After participating in a challenge to display the weather of two different cities, one of the contestants wonShow MoreRelatedpaul hoang answers72561 Words   |  291 PagesAmerican government† due to its unethical business practices; so perhaps it does pay to take CSR more seriously The claim that up to 8% of its customers boycotted the company suggests that Wal-Mart can no longer ignore the claims being made in the media Negative publicity might cause major global repercussions for the high-profile multinational Ultimately, the moral dilemma is a subjective one. In order to answer the question, it depends on whose point of view we looked at. Employees will mostRead MoreEssay on Silent Spring - Rachel Carson30092 Words   |  121 PagesCritical Overview, Criticism and Critical Essays, Media Adaptations, Topics for Further Study, Compare Contrast, What Do I Read Next?, For Further Study, and Sources.  ©1998-2002;  ©2002 by Gale. Gale is an imprint of The Gale Group, Inc., a division of Thomson Learning, Inc. Gale and Design ® and Thomson Learning are trademarks used herein under license. The following sections, if they exist, are offprint from Beachams Encyclopedia of Popular Fiction: Social Concerns, Thematic Overview, TechniquesRead MoreDeveloping Management Skills404131 Words   |  1617 PagesInterior Design: Suzanne Duda and Michael Fruhbeis Permissions Project Manager: Shannon Barbe Manager, Cover Visual Research Permissions: Karen Sanatar Manager Central Design: Jayne Conte Cover Art: Getty Images, Inc. Cover Design: Suzanne Duda Lead Media Project Manager: Denise Vaughn Full-Service Project Management: Sharon Anderson/BookMasters, Inc. Composition: Integra Software Services Printer/Binder: Edwards Brothers Cover Printer: Coral Graphics Text Font: 10/12 Weidemann-Book Credits and acknowledgments

The Financial And Business Performance Of TESCO - Free Essay Example

Sample details Pages: 22 Words: 6465 Downloads: 5 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? A company founded by Sir Jack Cohen in 1924 when its first day sale revenue was  £4 and profit was  £1, is the name of todays billion-pound revenue making organization known as Tesco Plc. First Tesco store was opened in 1929 and it become private limited company in 1932. In 1947 Tesco float on stock exchange. Don’t waste time! Our writers will create an original "The Financial And Business Performance Of TESCO" essay for you Create order Tesco launched its website in 2000 and in 2001 it become leading organic retailer in the UK. From 2002 Tesco reaches to international market and opened new stores in Malaysia, in 2003 it opened store in Japan and turkey etc. Now Tesco is the world third largest food retail company while in the UK it is number one. With 2115 stores, Tesco is Britains largest retailer for food and non-food products (Ref.1, Metro 2006).Tescos Group sale has gone to 11.1% and dividend per share 10.9p not only this but also impressive expansion in all over the world that makes Tesco prominent in food retail industry in the world and particularly in the UK. As an investor and an accountant, I realized the opportunity to analyse the financial statements of the Tesco which will help me to increase my knowledge and skills to evaluate the companys performance. It also helps to understand about the future plans and opportunity in the Tesco. Therefore, I proposed to analyse the following aims and objective s. Aims and objectives The aim and objectives of this research were to examine and evaluate the following factors of the business performance of Tesco Plc: Social Economic Responsibilities towards all stakeholders. Non-financial Performance measures Financial performance measures including, Profitability measures, cash flow statement analysis, assets management performance and liquidity performance. The intention was also to compare the performance with the industry average or competitor wherever it was possible The following section examines and evaluates possible frameworks that would allow this research to effectively meet this aims and objectives. 1.3 The Conceptual Framework Through studying for a business degree, an ACCA qualification, examining and evaluating academic literature, I have considered many conceptual framework. Financial and ratio analysis are valuable tools for evaluating the companys performance but it only examine the financial data and ignore the non-financial perspectives which are going to be more valuable in this modern world then these were ever. Therefore, our business models were considered, such as the balanced scorecard approach, Porters five forces model and BCG matrix. However, porters five forces and the balanced scorecard approaches considered to be the most appropriate for this project as it examined the both internal and external factors. In order to obtain the relevant data the following methodology was undertaken. 2. METHODOLOGY 2.1 Research Philosophy and Approach As the Aim and objective of this project was to explore the financial and non-financial data in order to induce a theme, it was believed that an interpretive research philosophy and inductive approach would be the most appropriate. It also allowed theories to arise as a result of and during the research, which allowed the research project to refocus during the analysis (Ref.2, Zina OLeary, 2004) 2.2 Research strategy 2.2.1 This research project used secondary data The research used secondary data to evaluate performances for the last three years of Tesco (2006-2008). This approach allowed trends to be evaluated and explored which gave strong meaning to the data collected or gathered. A case study approach adopted because it enable the researcher to gain richer understanding of the entity and gave the research the ability to generate answers to the question. Begin by understanding the context in which the case is being analyzed or discussed. What is the topic being discussed? How does this case relate to the topic? (Ref.3, San Josà © State University 2004) 2.2.2 Primary vs. secondary data Primary data was considered, as it would not only have added greater insight and depth into the qualitative aspects of this research, but also it would have reinforced any secondary data obtained (Ref.4, Saunders et al. 2003). However, it was decided to use secondary data for the research of Tesco plc. Secondary data can be really effective and cost effective as it had already been collected and analyzed but problem is if the data had already been collected and analyzed then it also has been used for some other purposes and for different group of people according to their requirements. (Ref.5, A.J. Bell 1995), State: presentation could be misrepresentative as the data collected for different purposes, It could be unreliable as its origin is known and there is risk of bias. The following section examines how I improved the credibility of the secondary data, by examining bias, reliability and validity of the secondary data gathered. 2.3 Bias and Reliability of Secondary Data I was aware of possibility of misunderstanding the data or arriving at the wrong conclusion. Therefore, in order to increase reliability, I gathered the data from the different sources and subsequently match the data that been collected from the different source and tried to use the reliable authentic one. Reliability and authentication of data depend on the source which can be companys website, different business and financial websites, study text books, newspapers and many more. 3. SECONDARY DATA REVIEW 3.1 Academic Textbooks Various different textbooks (especially study text books from FTC, BPP and LONDON SAM) were used to get better knowledge and understanding about the business performance. These were either from my own study text books from fundamental level paper and professional paper or from the London Library. My study textbooks are mostly base on accounting and strategy subject which really helped me to evaluate the financial and business performance of Tesco. Where ever I felt difficulties to understand any term or any point I consult with different books from the library, in contrast I found research related books very useful and innovative with regards to the methodology. 3.2 Newspapers and Magazine Student Accountant, PQ Magazine, The financial Time and City Am amongst other been used to get higher detailed knowledge of the research topic. However I found The Financial Times more helpful for this research project because it keeps highlighting not only financial matter of the company but also non financial matters of the companies. For me it was easier to find out relevant data about the other companies within the same industry like Sainsbury, Asda in the UK and WM globally to compare and analyze the business performance over last three years. 3.3 Websites Tescoplc.com was main website source to get research data for this project. Data mainly taken from the Tesco website was the company financial statements, annual reports, media releases and events. But when reading and analyzing financial and non-financial data, from company official website, lot of extra care and attention is needed as there can be a risk of bias. Research data was also extract and examined from some other websites such as Financialtime.com, thisismoney.co.uk, bpp.com, google.com, reuters.co.uk, investor.cisco.co.uk and many more websites been used to complete this research topic effectively and timely. 3.4 Tesco PLC. Reports Tesco annual financial statements, annual reports and media reports were key source of information for this research topic which has been gathered from different sources. Financial reports contain mainly statement of financial position (balance sheet), statement of financial performance (company income statement), cash flow statement and statement of changes in equity. Non-financial reports may includes company social responsibility towards different stakeholders, Auditors annual report (qualified or non qualified) and directors basis of remuneration etc. Although Companys financial statements prepared in accordance with the international accounting standard (IAS), even than companys profit can be manipulated or smoothing of profit tact can be used. Other problems which may occur by using Tesco financial statements is that financial accounting base on the historic data which may not reflect the current position or future position of the company clearly. So, here again extra care is needed and more analysis is to be done in order to know the better view of the companys performance. 3.5 Limitations Limited access to sensitive data, time restriction and using secondary data for research project, were all limitations of this research. However, objective of this project was to evaluate the business and financial performance of the Tesco Plc. I believe, these limitations do not affect the credibility of this research project as the data I used can be compared and can be found from different sources, for this report. 3.6 Ethical Issues Secondary data already is for general public which can be used from different groups of stakeholders according to their need. In this research project I used secondary data as source of information which is already a public domain So, there is no ethical issue regarding the confidentiality. 4. THE CONCEPTUAL FRAME WORK 4.1 The Balanced Score Card Model Robert Kaplan and Davis Norton carried out a year- long research project and defined the balance scorecard model which enables the companies to evaluate the financial and non financial performance of the Tesco by dividing into four different perspectives (Ref.6, Accountancy College, and JUNE2008): 4.1.1 Financial perspective Tesco financial measures can be evaluate through different heads, liquidity analysis (current and quick ratios), profitability ratio which includes gross profit margin, net profit margin, cost percentage to sale etc. Financial performance of Tesco will be analyzed in detail further in the project. 4.1.2 Customer Perspective Demand for existing and new customers should be satisfied. Tesco policy is to provide Goods of good quality at reasonable prices to its customers. Tesco also considers the customers local and traditional demand. 4.1.3 Internal Business This perspective evaluates the relationship between Tesco and its trade creditors. Recently it has been announced that Tesco asked all of its non-food suppliers to wait for an extra 30 days for payment and also asked them to reduce the prices of the products. (Ref.7, Jennifer Creevy, October 2008) 4.1.4 Innovation and Learning Company culture and innovation approach can be evaluated from the employee productivity and training development programs from the company to its employee. It also need to asses whether Tesco was providing its employee training and development to ensure that its work force is fully competent and providing excellent service for the best interest of the organization. 4.2 Porter Five Forces Model Porter Five Forces Model explains the competitive strategies for the business. How success full Tesco is in non financial performance can be evaluate from its planning towards its competitors and other parties. Tesco non financial performance can be assessed in the light of (Ref.8, Michael Porter 1980) Five Forces Model. 4.2.1 New Market Entrance Tesco is in the food retail industry which is highly competitive. New entrants in the food retail market may not feel easy but even then Tesco strategy against new competitor should be clear. Like Wall-Mart enter in the UK market by ASDA and create high level of competition for Tesco. (Ref.9, Elizabeth Rigby 2008) in her article for financial time states that: competition test has been supported by ASDA, Ms and some other but was opposed by Tesco and won the case after competition test ruling. 4.2.2 Suppliers Powers Powerful suppliers can create problem for the business even they are really good in the financial performance. Non availability to at high cost products can reduce the profit or even destroy the image of the company when products are not available on the shelves on time. Tesco have numbers of suppliers for each products and some of the products are made by Tesco themselves or with the cooperation of the Tesco. Many products prices has been reduced in recent years as compare to the competitors and is also increasing the debtors or supplier payments days to cut the prices of the products which shows company good control on the supplier announced by the (Ref.10, Terry Leahy, chief executive of Tesco plc 2008.) 4.2.3 Substitute Substitute quality or price of the products can affect the targets and objects of the company. Tesco adopted innovative and learning approach. In Porters five forces model, substitutes refer to product in other industries having the same use and for whom the demand of one product changes with the price of another similar or quite similar product. Management of Tesco focused on price and quality of the product and also timely availability. 4.2.4 Buyer power Buyers or customers are powerful or customers are like king for the business. Companies have no or less control on the buyer but strong brand name can attract the customers attention. Tesco gain really good reputation in the UK market and became largest food Retail Company of the UK. But there is limited number of buyers in the market and in the competitive situation, Tesco has to be really good in price as well as in quality of the products. 4.2.5 Competitive Rivalry Conflict among the existing competitors involves market manoeuvring, which increase product innovation for Tesco. In this situation competitive within the food industry may reduced price and spend money on advertisement to win the market share which may end up on the loss for all companies. In current situation there is price war between Tesco and its biggest competitor ASDA (subsidiary of Wall-Mart) and even then Tesco is performing well and still maintaining number one position in the UK market from many year There are more ways to measure the Non financial performance, like The performance pyramid approach The building block approach The six sigma approach But due to some limitation I used two approaches to evaluate the non financial performance of the Tesco Plc. 5. FINDINGS 5.1 Economic Growth Before I start my research on the economic growth, I would like to briefly discuss the economic environment and growth procedure of the Tesco. Currently Tesco UKs sale growth is slowest since 1990s, group sale gone up by 11.1% as compare to 2007 figure but the group profit increase by 5.7%. The different between sale percentage and profit percentage identifies higher cost of sale and other operating expenses. Tesco is a large group that can cut the prices to win the more customers and can share pain of that lower price with supplier: (Ref.11, Robert Peston, BBC news). And this is the approach, Tesco is going to apply on supplier and asked them to reduce product prices and extend payments terms which also reduces the finance cost. Tesco is growing on a fast track in international markets especially in Asia (814 stores in Asia and Thailand is on top of the list with 476 stores), Europe, and USA region by introducing new names like Fresh and Easy same as WM did by entering as ASDA in the UKs market. During last three years, Tesco international market as numbers of stores grown by 80%, Group sale revenue rose by 20% in total, out of this 46% is UK share, 29% is Asia share and 25% is Europe . Although number of stores are increasing in Non UK market (508 stores open only in 2005 out of which 350 were outside the UK) But about 50% of total group profit is contributed by UKs market. (Appendix A) 5.2 Tesco Operational Performance Bearing in mind the current economic situation in the world where financial crises melting down world biggest financial institutions and other well known companies, Tesco has secured a remarkable position with solid growth globally. There is no doubt about the good operational performance over the last there years. Market share of Tesco and other food retail stores are given below. . Ref.12: TNS World panel, (2008) Tescos share of the UK grocery retail market in the 3 months to 20-05-207 was 31.32%, which is 0.03%below as compared 3 months to 22-04-2007. UK market Share: On 20/04/ 2008 consumer spends  £6336887000 in the Tesco which is 31.1% of the total groceries market in the UK but it reduce to 0.3% comparatively from last time in 2007 market shares in the UK which was 31.4%. Sainsburys share also reduced to 0.4% from last period. ASDA and Morrisons market share rise by 0.1% and 0.3% in this period till April 2008.these figures shows that there are limited number of customers so if one will win then second has to lose. However, Tesco group sale hiked to  £51.8bn in 2008 by employing 440,000 plus people worldwide. Tesco has shown extra ordinary non financial performance and good financial performance when there is price war between ASDA and Tesco. And its expecting to rise in 2009 when fresh and easy stores are really successful in USA. Tesco was successful not only in food or other products items but also remain successful in services business in 2008 by gaining demonstrating growth, breadth of the group supported by increasing strength as a leading internet retailer. Dotcom was an excellent form, with sale in Tesco gone up by 30%, telecoms performed well. And joint venture with O2 turned into profit for this first time in 2008. (Ref.13, Financial Statement (2008). Tesco is not only successful company but also considered to be a green company working for society and environment. Charity, donation and gifts amount of  £4.4 million to British Red Cross. Tesco is also playing an important role in local community and has opened cultural centers in all countries of operation. In recent years Tesco spend  £600,000 for new automated recycling machines for customers in some stores in 2006. Following the community plan in 2006 now Tesco have expand this to nine different countries, bearing together a range of community, environmental and health project, accor ding to local market needs, and also have plan to start this programme in the remaining three countries quite soon.(Ref.14, David Reid 2008) 5.3 Sale Performance UK sale are gone up 6.7% and trading profits grew by7.1%- after Tesco start-up cost in the US and on the Tesco direct TO  £2050m, helped by a solid margin performance. Group sale have increased by 11.1% to 51.8bn in 2008.group non food sale rose 12% to  £11.8bn and none remains an important contribution to Tesco. Total international sales grew by 25.9% to  £13.8bn. People are a little bit more interested in value they have become cannier. But there is an opportunity for Finest food because people are eating out less. She added that furniture, tied to the fortunes deteriorating housing market, had been hit by consumer cutbacks, while pushing promotions and value lines, Tesco had a good track record of margins being pretty steady. The chain has set aside  £450m for its step change efficiency savings program coming year, up from  £350m year end 23/02/2008. Stated by (Ref.15, Lucy Neville-Rolfe.2007). In 2007 Tesco has been knocked out from its leading position in neighb ourhood retailing, mean merging between co-op groups which created UKs largest neighbourhood retailer with a share of 7.9%. However, Tesco not only keep its leading position in the UK market but also improved sale revenue from previous years. Clearer picture about the sale performance can be seen in following chart. (Appendix-A) Group revenue (excluding vat) rose 20%, in the rest of Europe revenue increased by 35% and in Asia by 27% from  £4369m to  £5552m during last three years, UK revenue up but not the percentage as in the other areas of operation, which mean Tesco working on the policy of extending and growing overseas and keep maintaining the position of the as leading grocery retailer in the UKs market where revenue increased 16% from  £29990m to  £34874m over last three years. 5.4 Profitability Analysis Group profit before tax is up by 5.7% or by 15.3% if exclude the last year pensions, here it seems to show higher profit in last year when actually gross profit before tax was not healthy and transferred last year pension against current year profit. This profit smoothing has been forbidden by 1AS. However, these results demonstrate the strength of the group. UK trading profit rose 7.1% to  £2050m, with the trading margins at 5.9%, slightly up on 2007 and 2006. (Appendix-B) Profitability analysis shows Tesco has not deteriorated significantly over last three years. All three profitability measures have remained almost same from 2006 to 2008, there are slightly changes in measures but it went down to the previous position in 2008. ROCE numerator represent profit before interest tax and denominator being the sum of net assets.Net debts dividend creditors excluding asset held for resale (net). Shareholders would obviously be concerned about profit reduction which was 6.2% in 2007 and then 5.78% in the 2008 because when operating profit is low obviously profit for distribution to shareholders should be lower. Earnings per share rose to 20.20p in 2006 (26.95p in 2008). Over last three years group revenue increased to 20% and operating profit increased to 22% when inflation rate was 3% to 4% and cost the products kept increasing but after all these was kept growing and had good control on the prices. Operating profit margin decreased .42% in the UK mar ket its mean company operating cost is higher than the last years, advertising cost going out of control due to high level of competition and war for the prices. Tesco direct cost increased while it price of products remained same or cut the prices to win the customers which affect the gross profit margin. Tescos International markets or non UK markets contributed  £701m to trading profit; in Europe sales raised by 23.9% to  £7.8bn which  £6.3bn in 2007. Trading profit increased to  £379m, up 24.8% in Asia and sale rose by 27.2% to  £6.0bn (2007-  £4.7bn) 5.5 Assets Management Efficiency Tesco total net assets have increased by  £1,331m (in 2007) to  £11,902 and noncurrent assets increased by  £3,633m after charging depreciation to tangible assets and amortization to intangible assets of  £992m. Inventory rose 66% to 243000 in 2008 (from  £1464000 in 2006) compared to sale increased by 20% in last three years while inventory as percentage of revenue was 3.7% in 2006, 4.5% in 2007 and 5.1% in 2008 or 4.4% average over last three years. This constant level of inventory shows Tesco policy to keep sufficient inventory of avoiding inventory shortage and enjoying trade discount for bulk purchase. This can be one aspect on the other hand there is huge difference between the percentage of inventory and revenue so, company should reduced the inventory level and pay to supplier earlier to get more discount or invest this sum of money in short term security to get some returns. Inventory holding period reduced by 3 days (23days in2007 and 20 days in 2008), but over three years inventory holding period increased as it was 14 days in 2006. Inventory holding period need to improve, Tesco is well known food retail store for fresh food and management should improve inventory control system new scanning gaps using hand held computers on constant cycle. Tesco also introduced delivery to stores in shelf-ready packaging which will helps in efficient management of stock delivery on time and improve in turnover period. Trade and non trade payable increased 43.2 and cost of sale gone up 20% during last three years showing consistency while creditors as percentage of coast of sale also remained between 14%-16%. This consistency show trade creditors or supplier not been used as free source of finance and paid them on time. In (Ref.16, Tesco Annual report 2008), Tesco is one of three signatories to the UK Government statutory supermarkets code of practice. It takes supplier relationship very seriously and has introduced in the KPI Steering Wheel. L ast confidential supplier survey on Feb 26th showed more than 90% supplier consider Tesco as reliable, trustworthy fair. T Tescos asset turnover y rose 12% to 1.96 times in 2007 (in 2006 1.75 times) and then reduced 20% in 2008 to 1.56time. So, over last three years assets turnover reduced 11%. This result shows assets management efficiency been affected and it can be seen that  £1 worth of assets earn 11% less than the previous years (before 2006). Non-current assets increased 28% over last three years. Another aspect of reducing current assets and increasing non-current assets can be the Tescos expansion to all over the world opening new stores and exploring new markets, which increased company fixed or non -current assets by using current assets like cash. 5.6 Short Term Liquidity Tescos ability to pay its customers or supplier can be analyzed by Current ratio and quick ratio. Indicators of current ratio show companys ability to pay current liabilities. If all the supplier demand for the payment at the same time, is company able to pay all demanded creditor, can be assessed by quick ratio approach where inventory do include as liquid assets. (Appendix-B) Over the last three years Tescos Current ratio increased 17.3% (0.61:1 from 0.52:1); this is mainly increase 60.75% of current assets. Most likely its due to increase in cash, short term investments and inventory which help to increase the liquidity ratios. Inventory was increasing at high percentage as compare to percentage of sale; company increased the level of inventory its either to get more trade discount or to keep secure the business not to run out of stock. Quick ratio increased 15% to 0.38: 1 (0.33: 1 in 2006) but if compare to industry average 0.57:1 in 2006, quick ratio indicate company is facing liquidity problem. Tescos inventory increased 66% while sale by 20% over last three years. So, this extra 46% of inventory should convert into cash as soon as it can be. By converting inventory into cash will not stable liquidity position but also reduce the holding cost which will affect on the company annual profit. Current liabilities increased 3% while current assets increased by 60.75%, here is big difference between current assets and current liability which shows liquidity position of Tesco healthy while by analyzing quick ratio it seems company facing cash problem and Tesco should convert its current assets in more liquid form (cash or cash equivalent form) 5.7 Shareholder Interest Dividend paid increased 26% to 10.90p (from 8.63p) over three years while 13% increased from 2007 and also in line with EPS.non availability of enough cash and other liquid assets also posed no threat to dividend payments. Tesco announced to pay dividend in line with EPS.A final dividend of 7.70pence per ordinary share brings the full year dividend to 10.90 pence (including 2.80 pence interim dividend).an increase of 13.1% in 2008 as compare to 2007 when dividend per ordinary share was 9.64 and 26.3% as compare with dividend of 2006 when dividend per share was 8.83 pence (Appendix-B) Diluted earnings per share grew by 20.8% to 27.02 pence in 2008 which was 22.37 pence in 2007. Price earnings ratio (P/E ratio) decreased to 14.8P in 2008 from 19.9P in 2007. It shows how much an investor is willing to pay for making one pound return. Earnings per share (EPS) increased 33.4%, investors hesitating for further investing as share price remained almost same although dividend on the investment increased but it is arguable that investor can make money just by depositing into bank accounts and get interest from that deposit without having any risk. Some analysts considered a high P/E is due to overpriced share market value. Highest dividend yield was 2.7% in 2008 over the last three years. 5.8 Balance Sheet Analysis Balance sheet net assets have increased by  £1331m to 11902m while non -current assets increased after depreciation and amortization for the amount of  £992m.Gearing measures borrowed funds against equity, which include retained earnings, provisions, premium and ordinary share capital. Tescos gearing increased by 56.93% compared to 45% in 2007 and 49.4% in2008.company ability to pay interest increased by 8% to 10.70 times from last year figure and 23% over the last three years. Financial leverage continues to improve as net finance costs have reduced in last three years due to good credit control management. Tescos finance cost can be reduced more if company use trade creditor as free source of finance. 5.9 Cash Flow Analysis Overall, the group generated a net cash inflow of  £801m, leaving net debt of  £6.2bn at the yearend 2008 which is  £1.3bn more than the last year. (Appendix-B) Tescos cash and cash equivalent position strengthen and increased 72% in 2008 with cash inflow of  £801m but even than I am not confident that company is able to pay current liability by cash. This is in Tescos plan to increase the creditor payment period and reduce the inventory level to the level of sale percentage. Company should also plan to sale noncurrent assets which are not really in use or giving low productivity to generate some cash. Financial and Non-Financial Key Performance Indicators We operate a balanced scorecard approach to managing the business that is known internally within the Group as our Steering Wheel. This unites the Groups resources and in particular focuses the efforts of our Staff around our customers, people, operations, finance and the community. Its prime focus is as a management tool for the company so that there is appropriate balance in the trade-offs that need to be made all the time between the main levers of management such as operations measures, Financial measures or delivery of customer metrics. It therefore enables the business to be operated and monitored on a Balanced basis with due regard to the needs of all stakeholders. For the owners of the business, it is simply based around the philosophy that if we look after customers well and operate efficiently and effectively then shareholders interests will always be best served by the inevitable outputs of those growth in sales, profits and returns. (Ref.17Tesco Annual Report 20 08) Dependency on UK market to 74% of the total group revenue Nearly one third (31%) of UKs total market share Excellent distribution network and new self-service checkouts systems been introduced Tesco is the worlds third largest grocery retailer with operation in 12 international markets and employing over 440,000 people. 6-CONCLUSIONS 6.1 Objective 1-The effect of social and economic responsibility towards all stakeholders on Tescos business performance. Tesco was recognized as an Example of Excellence in the Barclays Environmental Leadership category at the Business in the Community Awards in July 2008. In 2006, as part of Community Plan, Tesco announced a string of long-term targets aimed at minimizing environmental impact and till now going ahead to achieve these targets. (Ref.18, Press Releases, 18 July 2008). Tesco policy to its customers is key factor of success and (Ref.19, Dr. Paul Temporal) states, When Tesco says, Every little helps, it really means it. Its CRM program is certainly one of the best in the world, and customers love it. Tesco has been principally a food retailer in the U.K., in a mature market that has grown little in the last 20 years or so. That Tesco has grown its business at all which is a source of consumer attraction, when the only route to growth is taking market share from competitors. Tesco is fully aware of its social responsibility and really committed to provide best level of service to all stakeholders. And therefore I believe Tescos relation with local community, government, employees and others stake holders is impressive. 6.1 Objective 2- The effect of Non-financial performance in the UK and outside the UK on Tesco. 30,000 new jobs to be created across the group in 2008 and total number of employee reached to 440,000 in 3738 stores. Tescos plan to open over 11.5m square feet of new group space this year, 80% of it outside the UK. Easy and fresh retail stores in USA opened another door of haven for success.  £5bn- plus property funding programme going well.  £200m transaction with the prudential plc completed before the year ended 2008. Strong start in 2008-13% growth in first five weeks Clearly Tesco had a strong growth across the group and produced above the competitors and average industry performance, and therefore I do believe that Tesco deserved to be number one retail grocery store of the UK and third largest in the world 6.3 Objective 3- The effect of financial performance including profitability, cash flow, assets managements and liquidity analysis of Tesco plc. Terry Leahy, Chief Executive, comments: The breadth of the Group and the strength of our business model have enabled Tesco to deliver another year of double-digit sales, profit and earnings per share growth in challenging market conditions. We begin the new financial year confidently with a good start in the UK, excellent progress in our established international markets and promising early performance from our investments in future growth, particularly in the United States, China and Turkey. Clearly, not only was Tesco, profitability, with good control of its costs, but also had a high level of total assets over total liability which present Tescos balance sheet really strong. But if we focus on the quick ratio in liquidity situation it will not be difficult to analyse that it may face cash problem although there is positive movement in 2008. Therefore I believe that close analysis of cash flow statement will reflect cash shortage to Tesco and can be seen from the Tescos quick ratio 38% compare with industry ave rage 57%. 7. RECOMMENDATIONS At a time when others appear to be faltering in their international commitments, Tesco is getting stronger (Ref.20, Rachel Sanderson 2008) Tesco should increase the number of stores in the low-income. Since Tesco strongly highlights its commitment to food access in low-income communities. It should be identified a goal for how many of Tescos store locate in the communities that have low rate of income and they are food insecure. Tesco needs to insure that a substantial percentage of its store-based peoples are full-time employees who are paid a reasonable wage and have affordable quality health benefits. Tesco should establish a positive relationship with labour unions and not seek to influence employee decisions on whether to join the labour unions or not. Tesco should make a mechanism for community input into its operations. Advisory committees or similar community mechanisms for dialogue that can help stores stock products desired by local customers or community. Tesco should establish mechanisms to increase local sourcing for its products and support small local farmers. It could help to make this goal through labels identifying the origin of product like from California or from Arizona. Tesco should design and site new stores according to the principles of green design and smart growth that will helpful to minimize climate change impact. Tesco should achieve green building certification for its stores to demonstrate commitment to sustainable design, and should make information on stores environmental features available to customers and community member. Tesco should accessible to pedestrians, bike riders and public transportation and specially for disable people reasonable measures should in place that make easy their accessibility into stores. The authors view Tescos entrance into the U.S. market as an opportunity to challenge all food retailers to think broadly about the social and environmental impacts of the way they conduc t their businesses. Perhaps Tesco spokesperson Simon Uwins (2007) put it most aptly in describing why he loves retailing, Its so democratic: our customers and our employees will decide whether or not weve been successful in creating a great shopping trip and a great place to work and thats how it should be.1 Tesco currently paying huge amount as interest and foreign exchange rate change, Tesco should deal in local currency or open foreign currency account with the reserve Tescos International expansion in lucrative markets like India, China US would help expand customer base but bearing in mind mature markets like US would not be an easy task as it is the home to WM parents of ASDA. Research needs to be done and lesson learned from Marks Spencer and Sainsburys expansion in US. Tescos inventory holding period should be improved. Use just in time method (where it is possible) or make an arrangement with supplier to build up system according to the demand of the Tescos custo mers. Tescos sale over last three years increased by twenty percent while inventory gone up by sixty six percent. Tesco should reduce the level of inventory to a little up then the sale that will also reduce the holding cost and handling cost. Tesco should transfer some of its fixed assets or less liquid assets to current assets. It improves the level of cash and liquidity ratio. Grocery retail industry average for liquidity ratio is 57% while Tescos liquidity ratio in 2008 was 38% which is below the average industry rate. Tesco should use trade and non trade creditor as free source of finance. Current assets increased 60.75% (mainly inventory) while current liabilities increased by 3% only so, the difference of percentages can be used as short term investment and gain return on it. 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Media release, Tesco Plc. https://www.tescoplc.com/plc/corporate_responsibility/news/press_releases/pr2008/2008-07-18/ (Vis ited 14 March 2009) Dr Temporal, Paul. Tesco- the brand experiences everything, Hi-Tech Hi-Touch Branding, January 2001. Sanderson, Rachel (2008). Reuters, Recommendation, from Tesco Plc Annual Reports 2008 https://stocks.us.reuters.com/stocks/incomeStatement.asp?symbol=TSCO.LHYPERLINK https://stocks.us.reuters.com/stocks/incomeStatement.asp?symbol=TSCO.LWTmodLOC=L2-LeftNav-17-FinancialStatementsperiod=AHYPERLINK https://stocks.us.reuters.com/stocks/incomeStatement.asp?symbol=TSCO.LWTmodLOC=L2-LeftNav-17-FinancialStatementsperiod=AWTmodLOC=L2-LeftNav-17-FinancialStatementsHYPERLINK https://stocks.us.reuters.com/stocks/incomeStatement.asp?symbol=TSCO.LWTmodLOC=L2-LeftNav-17-FinancialStatementsperiod=AHYPERLINK https://stocks.us.reuters.com/stocks/incomeStatement.asp?symbol=TSCO.LWTmodLOC=L2-LeftNav-17-FinancialStatementsperiod=Aperiod=A 16-3-09 Uwins, Simon, marketing a spokesperson, Growth in: USA. https://www.tescoplc.com/plc/ir/pres_results/presentations/p2007/tesconov07/ introfresheasy.pdf (Visited 16 March 2009) All annual reports and Executive Summary has been taken from Tescoplc.com, https://www.tescoplc.com/ (Visited 26 February 2009 and different times during project.) APPENDICES APPENDIX A  2008 2007 2006 3-Year Change  £bn  £bn  £bn Group Sales( £bn) 51,773 46,611 43,137 20% No of Stores 3,751 3,263 2,672 40% Non UK stores 1636 1275 774 111% UK Stores 2,115 1,988 1,898 11% REVENUE EXCLUDING VAT UK 34,874 32,665 29,990 16% Rest of Europe 6,872 5,559 5,095 35% Asia 5,552 4,417 4,369 27% Total 47,298 42,641 39,454 20% OPERATING PROFIT UK 2,097 2,083 1,788 17% Rest of Europe 400 324 263 52% Asia 294 241 229 28% Total 2,791 2,648 2,280 22% OPERATING MARGIN UK 6.0% 6.38% 5.96% 1% Rest of Europe 5.8% 5.83% 5.16% 12% Asia 5.3% 5.46% 5.24% 1% Total 5.9% 6.27% 5.78% 2% Ref.22, Financial statements Tesco for year of 06/07 and 07/08 APPENDIX B  2008  £m 2007  £m 2006  £m 3 years change PROFITABILITY ROCE 12.9% 12.6% 12.8% 1% Operating Profit Margin 5.9% 6.27% 5.78% 2% GP Margin 7.68% 8.12% 7.67% ASSET MANAGEMENT/ EFFICIENCY Inventory Turnover (Days) 20 23 14 42% Inventory as a Percentage of Revenue 5.1% 4.5% 3.7% 38% T. Payable as % of Cost of Revenue 16.7% 15.3% 14.0% 19% T. Asset Turnover (Times) 1.56 1.96 1.75 -11% SHORT TERM LIQUIDITY Current Ratio 0.61 0.56 0.52 17% Quick Ratio/ Acid Test Ratio 0.38 0.32 0.33 15% SHAREHOLDER INTEREST Return on Shareholder Fund 23.5% 25.1% 23.7% -1% Dividend Per Share 10.90p 9.64p 8.63p 26% Earnings Per Share 26.95p 23.61p 20.2p 33% Dividend Cover 2.48 2.32 2.34 6% Price Earnings Ratio 14.8% 19.9% 16.5% -10% Dividend Yield 2.7 2.2 2.6 4% FINANCIAL LEVERAGE Net Gearing 56.93% 45.41% 49.41% 15% Interest Cover (time) 10.7 9.9 8.7 23% Ref.22, Financial statements Tesco for year of 06/07 and 07/08

History of Human Resource Management - 1806 Words

People Management In this assignment I will be looking at the role played by the Personnel Management to Human Resource Management (HRM) for Sainsbury s and there historic developments. I will also be looking at how the existing HR function for Sainsbury s could be developed to work more effectively with the rest of the organisation. Human Resource Management (HRM) is fundamentally another name for personnel management. It is the process of making sure the employees are as creative as they can be. HRM is a way of grouping the range of activities associated with managing people that are variously categorised under employee relations, industrial/labour relations, personnel management and organisational behaviour. Many academic†¦show more content†¦Through these pledges Sainsbury s aim that all staff can work without fear of discrimination, harassment and bullying and that all colleagues, job applicants, customers and suppliers should be treated fairly, regardless of: • Race:- colour, nationality, ethnic origins or community background • Gender:-gender realignment, sexual orientation, marital or family status • Religious:-or political beliefs and affiliations • Disability • Real or suspected infection with HIV/Aids • Membership or non-membership of a trade union • Differing working patterns such as part time • Age I believe Sainsbury s Supermarkets employs over 145,000 people. Of these, 60% are part-time and 40% full-time. 62% of employees are women. Sainsbury s motivates there staff by undertaken the following issues:- • Save-As-You-Earn scheme for supermarket staff offers chance for company shares to be bought at a 20% discount • A profit-sharing scheme allows employees to have shares or cash. 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