Managing Communications, Knowledge Ans Information

Introduction In this unit my aim is to understand the access sources of finance for a business and the skills financial information for decision making. I will be learning how finance information is recorded and how to use this information to make decision for example in planning and budgeting. Task 1 1. 1 Evaluate the amount of available financing, for instance, venture capitalists and other equity financeers can offer millions of dollars to small business owners. Bank loans and small-business loans often do not offer such large amounts of financing.Debt, equity and grant, debt financing involves obtaining capital by going into debt. An example of debt financing includes loans. Equity financing consists of obtaining capital in exchange for a share of your company. Examples of equity financing include investors or stock 1. 2 A) Tax effects The taxes affect a business in the capital it will be able to spend on expanding the business. The more money they pay in taxes, the less money th ey have to hire more employees and grow the business. Taxes also cut into profits and the company’s stock value.This is the reason why the government can create jobs by easing the tax burden on company workers. When company’s start hiring they have a larger number of people they have paying taxes, and the more people working the lower the tax rate can be, plus the more money going into Social Security. Also lower taxes on the workers inability for them to save and invest in more companies and their personal future. b) 1. 1://www. ehow. com/how_6522588_select-sources-finance-business. html#ixzz2OGLEYw00 http://www. ehow. com/how_6522588_select-sources-finance-business. html#ixzz2OGKQ34PI

Dr Martin Luther King Essay

We can never be satisfied as long as our children are stripped of their selfhood and robbed of their dignity by signs stating â€Å"For Whites Only†. We cannot be satisfied as long as a Negro in Mississippi cannot vote and a Negro in New York believes he has nothing for which to vote. No, no, we are not satisfied, and we will not be satisfied until justice rolls down like waters and righteousness like a mighty stream. † This part within Dr. King’s speech was very powerful as it gives you images of the mistreatment towards blacks, and their emotions, how it makes them feel. He uses figuritive language in the last sentence as he says â€Å"we will not be satisified until justice rolls down like waters and righteousness like a mighty stream†, that is a similie. He was protesting against what rights the blacks did not have. â€Å"I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. I can see blacks and whites setting down at the table eating dinner and telling each other how their days went. That particular sentence warmed my heart with what Dr. King believed could and should be. â€Å"I have a dream that one day, down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of interposition and nullification; one day right there in Alabama, little black boys and black girls will be able to join hands with little white boys and white girls as sisters and rothers. † Little black boys and girls joining hands with little white boys and girls is what imagine he provided with that phrase. His whole speech was filled with love and kindness. Multiple emotions were put off towards the audience to feel the pain of the mistreated black men and women and then the happiness and peace between blacks and whites if their wasn’t a racial issue.

Modernism as an Impact in Society Essay

Modernism is a modernist movements in the art, its set of cultural tendencies and associated cultural movements, originally arising from wide-scale and far-reaching changes to Western society in the late 19th and early 20th centuries. Modernism also reject the idea of enlightenment thinking as a well the idea of god as a powerful person. Modernism movement is focus on traditional activities such as; art, architecture, the religious faith, social organization and daily life, those things were become obsolete in the economic system, social and political implication that were presented the fully industrialized world. An example of modernism was â€Å"Sophistication† by Sherwood Anderson in (1876-1941). â€Å"Sophistication† has several controversial ideas that suggest negative consequences on society; insolation, and individuality of people. Tendencies about modernism presented in â€Å"sophistication† could be cause impact in depression. Depression is a mental state or chronic mental disorder characterized by feelings of sadness, loneliness, despair, low self-esteem, and self-reproach (Leonard). Modernism considers that exist a barrier that divides past from the present. It is an impassible barrier in the imagination of modernity. It? s cause the experience of disillusion which make it possible to capture the innocence of early days. Modernism suggest that all people have disillusion for any reason, this disillusion helps people to overcome the problem and also sees the world as an option to improve their live. Besides an idea of modernism is the disillusion of people. Sherwood Anderson in his story â€Å"Sophistication† suggest that: The mood that had taken possession of him was a thing known to men and unknown to boys. He felt old and a little tired. Memories awoke in him. To his mind his new sense of maturity set him apart, made of him a half-tragic figure. He wanted someone to understand the feeling that had taken possession of him after his mother’s death. (422) It means that George Willard is growing up into manhood but, he wants to have a person that can comprehend some feelings that had taken possession of him because he felt totally different in his new stage. On the other hand, James Leonard makes contrast about believes that Sherwood Anderson has with regard to puritanism. He suggest that disillusion cause spiritual depression: â€Å"Almost any disappointment, disillusionment, failure, or collapse-of-hopes might cause us to tumble into an emotional slump† In this perspective, disillusion cause a spiritual depression in which people that are facing problems like adaptation into society. When Elizabeth, his mother, finally dies, George Willard is oddly unaffected at first. He decides that now he will definitely leave Winesburg. â€Å"Sitting with his mother’s corpse, he begins to think of kissing Helen White. Having this thought while sitting next to his dead mother makes him feel guilty, and he begins to weep again. He leaves the room, still crying, overcome by a combination of fright and uncertainty. † (Anderson) However George remember things such when his mother death for that reason he felt loneliness and maybe in some moments he was depressed for both reason; his mother and Helen White. Sherwood in his story â€Å"Sophistication† arguments: â€Å"The sadness of sophistication has come to the boy. With a little gaps he sees himself as a merely a leaf blown by the wind through the streets of his villages†( p 423). That means that he has fair to confront the new world. He felt alone and his thoughts are that he is going to die uncertainly. Moreover, when people in society are facing situations that can affect their life like remembering of past, thing like this was difficult to overcome for them or accomplish some rules that society is show them such; aptitude related with sex, being part of fully industrialized world. Those thing can affect themselves. Also, if they do not accomplish those rules, they are discriminate or they cannot be part of the world. In some moment they are called stranger person or rare. The ideologies Modernism presents in Sophistication cause several impact on society. Modernism has its own relation with individualism. Subsequently, they belief are not shared by the religion. Modernism belief that individualism has association with liberty. On the other hand, â€Å"Sophistication† presents a corrupt interest on money as a form of refuse to obtain materials things. The point of view epitomized by Sherwood Anderson in his story â€Å"Sophistication† with an insignificant quotation: Helen arose and went into the house. At the door leading to a garden at the back she stopped and stood listening. Her mother began to talk. â€Å"There is no one here fit to associate with a girl of Helen’s breeding,† she said. Helen ran down a flight of stairs at the back of the house and into the garden. In the darkness she stopped and stood trembling. It seemed to her that the world was full of meaningless people saying words. With this example Anderson in his history try to demonstrate what important are the material things for Helens mother, saying to instructor that do not exist a man that can be compere with the status of Helen White. However, Helen felt sad because she thinks that in the word there are people who say stupid things. But, the mother does not take into account Helen’s feelings because people who are materialist do not care about people who are around them. Moreover Helen was thinking in George when she went to fair with the instructor. Besides, Anderson affirm that Helen’s thought was regard to George: Helen White was thinking of George Willard even as he wandered gloomily through the crowds thinking of her. She remembered the summer evening when they had walked together and wanted to walk with him again. She thought that the months she had spent in the city, the going to theaters and the seeing of great crowds wandering in lighted thoroughfares, had changed her profoundly. She wanted him to feel and be conscious of the change in her nature. That means that Helen is thinking in her love and also. And she also was remembering things when they were in the city, those things she cannot forget because they were like phantasy for her. Also, Helen White wants that George about some changes in her nature, those changes have to be with her growing up into womanhood. However, religion disagree with this point of view that modernist present in â€Å"Sophistication†. Religion has some fundaments related with love as important pillar in humans being. On the other hand, the religion criticizes the ambition for materials thing because God teach them in his bible that material things do not have anything to do with happiness. Reina Valera makes a contrast about belief of modernism: Make no store of wealth for yourselves on earth, where it may be turned to dust by worms and weather, and where thieves may come in by force and take it away, But make a store for yourselves in heaven, where it will not be turned to dust and where thieves do not come in to take it away: For where our wealth is, there will your heart be. (Matthew 6:19, 20, 21) God counsels to make our best things the joys and glories of the other world, those things not seen which are eternal, and to place our happiness in them. Furthermore, God tries to teach that if we die all materials things we are going to stay in this earth, for that reason materials things are not related with happiness. To sum up, the vision of Sherwood Anderson as a modernism believer has about the connection that exist between past and present when children are suffering some changes when they are growing up how is present in â€Å"sophistication† Helen White was change her childhood into womanhood at the same time of George was change his childhood into manhood. But, it is also important to take into account that those changes could affect their life because some children want not to be part of adult and some moments those changes could be the first cause of depression. After all, it is necessary to respect the perception that the religion has, it is in contrast of the ambition of material things or to get money. However, it is necessary to respect those beliefs that every person has about religion. Moreover Reina Valera teach us that material things do not have anything to do with happiness because God teach us that it is more important love because materials thing is going to stay in the earth when we die.

Customer Data and Analysis Essay Example | Topics and Well Written Essays - 1250 words

Customer Data and Analysis - Essay Example Indeed it is often referred to as a categorical scale. It is a system of classification and does not place the entity along a continuum. The hardest of the four levels to explain is interval level data. Let's imagine a very real example - teacher evaluations. On a five-point scale, a teacher getting a four is not twice as good as a teacher getting a two, and yet the numbers involved here can be treated differently than the numbers used in the rankings of the ordinal-level examples. Temperature, measured in degrees Fahrenheit, can also be effectively used as an example because forty degrees F is not twice as hot as twenty degrees F. Ratio data. Given the fact that this presentation of the idea of levels of measurement has been progressive, the simplest example to use, especially to highlight the idea of an absolute or meaningful zero, is money. Taking one's wallet out and removing from it a ten-dollar bill, then a second ten reinforces the concept that twenty is twice ten. Following that with showing an empty wallet highlights the real meaning of an absolute zero in a way you will not forget. While you sleep competitors are compiling information on your potential customers. They know their names, addresses, and telephone numbers. They know their professions, birthdays, the goods and stuffs they may be looking to buy in the near future. How do your competitors find out this information They ask, and more importantly they use the information they gather to learn more about these customers - and to establish an individual 'relationship' with them. The marketplace is now demanding this "mass customization" approach. Carol Krol (1999, p.2) claimed that the relationship marketing process has picked up steam because of the fragmentation of media, increasing channels of communication, and consumer choice availability. The sales analysis and reporting system provides the ability to report and analyze sales, rejections, up traffic, staff close-rates, average tickets, and overall performance contributions to the store. Let's take an example of a really national Britain hypermarket Tesco. This company sails one third of all foodstuffs in the country substantially thanks to marketing to individuals! Tesco set close cooperation with University College London. The scientists offered new methods of gathering, checking, collating, review, storage, access, retrieval and update of statistics information of retail sells. Fed every second by Tesco's 12 million Clubcard holders, the Crucible database could in theory generate about 12 billion pieces of data a year if each cardholder bought just 20 items a week. This information is analyzed very attentively. Tesco's customer relationship management system (CRMS) helps managers to

A REFLECTION ON EFFECTIVENESS OF A CLASSROOM PRESENTATION Essay

A REFLECTION ON EFFECTIVENESS OF A CLASSROOM PRESENTATION - Essay Example This presentation was aimed to make students of primary school understand the logic behind the number line and make use of it in solving their math related problems. On an overall basis I believe the presentation worked out really well as the students did seem satisfied with the knowledge that I gave them. The presentation was supposed to last for ten minutes but I went above the prescribed time limit while delivering it. This happened because I was so into the presentation itself that I didnt want to pull out in between. And to be honest I never really kept track of time as the look that I saw in the eyes of the curious students clearly told me how badly they wanted to learn this new concept and that somehow kept me going on until I satisfied their thirst for knowledge completely. This reflection is based on the feedback derived from my students and fellow colleagues who were present during the coarse of the presentation. The number line presentation that I carried out was done with the help of a flip chart. Most of the audience present told me it would have been much better had I presented the flip chart on a power point presentation. They said that would have made the presentation more presentable and students would have been inclined to take a much deeper interest in the learning due to the multimedia nature of power point presentations. The audience in their feedback told me that the starting of my presentation was really nice and that it completely captured the interest of all students in the class and kept them waiting for more to come. They applauded how my presentation was well thought out and that the nature of the content present was well structured and contained all possible details necessary for a proper understanding of the number line concept. As far as my body language was concerned, the audience applauded how confident I was

The Need for Good Financing Essay Example | Topics and Well Written Essays - 750 words

The Need for Good Financing - Essay Example The difference is that the word "finance" has a magical ring to it, and what a big difference the choice of words makes! A young boy who asks his dad for a few dollars usually pays a penalty like studying harder or fixing up his room, but a man in a suit who looks for multi-million dollar financing deals gets his picture in the papers, surrounds himself with beautiful people, and may even end up getting elected into public office like the former CEO of Goldman Sachs, Hank Paulson, who is now America's Treasury Secretary. So what this essay hopes to accomplish is to give young men and women a leg up in the good life: how to find money and learn the lessons needed to be successful later on in life. There are five basic rules that one has to remember in order to succeed in finding money without breaking the law, or without getting so used to shortcuts that instead of becoming a responsible member of society, the ambitious young person looking for money is spoiled into thinking that one can get on easily in life. This is not true, because whether one likes it or not, people have to work. Unless one learns to work hard, one can never be successful in life, especially now that there are billions of people in the world who are competing for the same lifestyle and the same jobs that people have and enjoy in America. This is the first rule of finding money the right way or, as the title of this essay suggests, finding good financing: money does not grow on trees, so one has to look for the best source of money. For young people, the best source is usually a parent, a relative, a friend, or a part-time job, in that order. Having a rich parent is an advantage, but it could also happen that rich parents are so tight with their money that their children do not get more than what they need. Many call this smart parenting, although their children may not see it that way. In other cases, parents may not have much money, but they want the best for their children, so they indulge the children's every whim and fancy. Many parents call this dumb parenting, but children usually praise this type of good financing of their expenses that they wish all parents are like theirs, except that spoiled kids usually end up as spoiled men and women who are good for nothing. Which brings us to the second rule: the wrong use of money can be the source of evil. Parents love this popular clich and often think about it when their children ask them for money, more so when their children are in their teenage years and most susceptible to experimenting with everything under the sun (or inside the mall). Good financing must include using the money for a good purpose, like being with friends, being able to buy food to eat or to engage in fun activities to relieve the mental, physical, and emotional stresses that are so common. Obviously, when parents see that giving their children money is not good for the children, they can block the channels through which the funds flow, either by withdrawing the child's allowance or imposing near-impossible conditions for funds release, such as getting straight A's or lending your iPod to your kid sister. This brings us to the third rule: one can get good financing by working for others. The reason is simple: the work you do will be unique and does not bring with it the condition to do

Islamic Politics and Terrorism Essay Example | Topics and Well Written Essays - 2000 words

Islamic Politics and Terrorism - Essay Example (Esposito, 1987, p. 152) It is presumed that Iran's revolution of 1979 declared the Muslim world to think on various 'political' aspects. It was the 1979 revolution of Iran that made the Muslims to think about their future as Islam was declared by the name of 'Islamism', which acted as adversary to the western world particularly America. The main reason started with the Iran political agenda of 1979 when the constitution of Islamic Republic of Iran declared 'Shiaat' as its official religion instead of declaring the one and only 'Islam'. 'Shiaat' when declared as the official religion caused rage among the 'sunni' Muslims, which existed in minority in Iran and Iraq, however the cold war started between shiaa and sunni Muslims after the execution of many 'sunni' Muslims in Iran. This was the time when Shiites all over the countries like Lebanon, Syria, Beirut and Iraq were strengthened and were supported by various movements in order to support 'Hezbollah' (Iran) (Moubayed, 2005) From this day onwards, Islam has been labeled as 'Fundamentalist', rather it would be better to say that, the creation of 'Hezbollah' was the first move towards extremism. The main political agenda, which sta... the 1980s responsible in declaring Islam as 'fundamentalist' or 'terrorist' religion is due to the rise of 'Hezbollah' which has ground deep political influences which goes in the favour of Muslim 'mullahs' and politicians. In fact these two groups have served as rouges for taking Islam to the heights not only as a terrorist religion but also as a 'terror' practiced by Muslim countries. History reveals that groups like Hezbollah and Al-Qaida have been responsible in gaining defame to their religion in the form of 'terror'. Their main aim was to fight for Islam, despite of the fact that Islam does not under any circumstances encourage terrorism. All they have done so far is disguised 'Jihad' by adopting extremist attitude, though Islam is not an extremist religion. The rules followed in Afghanistan are their own 'Holy laws', misused in the name of religion. On November 04, 1979 Iran leaded a new movement with the help of United States by the name of 'Iran Hostage Crises', which was failed for the loss of lives of the eight US soldiers. However, history reveals that United States was an ally of Iran during and after the World War II. 1979 was the year when Iran's shah 'Mohammad Raza Pehlavi' was overthrown by 'Ayatollah Khomeini' for the western influence he persuaded in Iran. When the US government offered a new relationship with the new Government, Khomeini not only rejected it, but also opposed thereby blaming America for causing 'satanic events' by influencing western culture in Iran. Muslim political era would not be completed without the concern for division in the name of 'Shiaa' and 'Sunni' Muslims. Iran with other countries having majority of Shiaas murdered a massive Sunni Muslims whose beliefs and rituals they found detestable. (Whittaker, 2004, p. 20)

PHILOSOPHY OF SCIENCE Essay Example | Topics and Well Written Essays - 500 words

PHILOSOPHY OF SCIENCE - Essay Example However, the definition of stress from the proponents tends to face a lot of criticism (Passmore, 1967). The second definition of stress from the organism perspective is a set of challenges that human being face. The challenges cause discomfort, anxiety, speculation, and uneasiness among other emotions. When the challenges face people, they must devise ways to overcome them. The evaluation is done in order to determine whether one is capable of solving the issue at hand. When the means of solving the problem are exhausted, and no changes have been made, it results to stress. According to this perspective, stress is the set of forces that originate from the external environment that make life very unbearable for human beings. The forces make it difficult for human beings to cope with the conditions that exist. It causes mental torture and result to hormonal changes that may interfere with the biological functions of the body. The body then becomes exposed to diseases. This kind of stress originates from factors which are beyond the control of individual (Despues, 1999). The process organism perspective definition is the best because it acknowledges that the stress is largely outside the control and influence of a human being and has the potential to have an adverse impact on someone. Sometimes, stress requires anyone to be skilled in knowing how to overcome the stressful situations and position himself strategically in order to survive. Internal factors and external factors are the main causes of stress. Logical positivism definition of stress is only concerned with proving that stress must be determined using measurable parameters. It does not provide the tools that can be used to measure the existence of stress. The proponents of the definition had only the intention of watering down the concepts of believers of metaphysics philosophers. Philosophy branch deals with abstract concepts where theoretical work is being emphasized. The two schools of thoughts

Activeion - Case Study Example | Topics and Well Written Essays - 500 words

Activeion - - Case Study Example The lonator provides health and benefits to the staff of the business. Activeion has no side effects to domestic users and can be used in cleaning household goods. Activeion cleaning tools targets hotels as it is known to kill germs. Food customers are becoming more sensitive to chemicals used in hotels and other food kiosks; hence hotels are a better target for the products. Activeion also targets single families with small children as it has no side effects to the kids. Activeon also targets people with sensitivities since their products have no chemicals. They also target those with pets in their homes as their products are harmless to pets. This is according to their websites. â€Å"Lonator! The chemical free cleaning solution for all your household chores, it is easy to use as it only requires only water. Lonator is suitable for child washing, those with sensitivities and all your cleaning solutions. ‘Lonator ‘for only $ 177† Activeion can market cosmetics with no chemicals; it can market eco friendly cosmetics e.g. herbal nourishers. The company can also market children wear since it is perceived to have friendly products this can be a niche market. Detergents can also make a good market for

Disscuss the key purpose and rationale for why the government had Essay

Disscuss the key purpose and rationale for why the government had policies of protection - Essay Example The history of Australia is full of violence and bloodshed. The Aboriginal people are considered to be the earliest human race of Australia and is believed to have arrived in this land from the South East Asia around fifty thousand years ago probably during the Ice Age. The Aboriginals who are â€Å"Australia’s first people are divided into two main groups- the Aboriginal people of mainland Australia and the southern island of Tasmania† (Bartlett. 2002)1. During the last half of 17th century, the European explorers including the British sailed down to reach the coast of Australia. During that period, it was known as New Holland. The primary reason for British settlement was to find a suitable place for their convicts to be punished. Then British Governor, Arthur Phillip reached Australia with â€Å"two warships, three supply ships and six ships which carried the main group, almost 800 convicts† (Virginia Tech, n.d.)2. The Europeans however decided to settle down in this land as they found it ideal for cattle and sheep rearing. The ensuing clash of cultures between the two societies (The European and the Aborigines) led to terrible violence and occasional bloodshed. The period of European invasion in Australia is often called as the dark period in the Aboriginal history. Such ruthless had been the invasion, that this period is known as the ‘Killing Time’ in the Australian Museum’s Aboriginal Gallery (Simpson. 2001)3. Initially, the Australian Aboriginal people did not accept the European settlers and revolted against them. But the Europeans were well equipped with the latest weapons that they had brought with themselves from Europe. The Aboriginal people were unable to compete with them and thus the Europeans got an upper hand in the Land of Australia. The ownership of land was the major and the first reason for conflict between these two communities. The Aboriginals did not use the land

The Community of Subcultures Essay Example | Topics and Well Written Essays - 1000 words

The Community of Subcultures - Essay Example Another factor that takes part in creation of a youth subculture includes the gender of the person. Notable is the fact that a given clique of members of this group will relate to each other according to the unwritten but acceptable ways that this clique adopts. The clique is often formed from a geographical stand point meaning that the system of agreement adopted by one part of the populace defined by a given geographical area will necessarily differ with another from a different geographical area. I will undertake to discuss the youth subculture as it found early in the American culture. The youth subculture can itself be defined as the way of life found among the youth and its distinctiveness is drawn from their social or ethnic affiliations that revolve around style, fashion, or affiliation to a given music genre. This kind of a subculture is generational with its membership being constantly renewed as the members outgrow the culture while others join the subculture at the adolescent age (Yinger 1999p54). The youth subculture in America is believed to have had its roots in the 1920's where a new generation of young women known as the flappers emerged. This group of young women believed in liberalism and acted in ways that implied their liberty. They could smoke, drink, use group specific slang, bob their hair, put on short skirts, perceive sex casually and drove automobiles among other things that were considered liberal to do as at that time. Many historical theorists like Marcel Danesi and Steven Mintz believe in the beginnings of the youth subculture in America to be the 1950's. They believe that children were immediately offered adult duties as soon as their ages matched the adult appropriate ages set prior to the above mentioned date. The media, they believe, played the greatest role in the creation of the youth group through frequently engaging youthful individuals in advertisements. The youths therefore organized themselves around the youthful age group and adopted a characteristic way of living that was specific to them. This trend continued to the subsequent generations. The youth subculture in America has a number of subcultures within it that deviate to some degree from the mainstream youth subculture(Lieske 2003pp34-36). The youth subculture in America had a distinct identifying factor. The age bracket within which members of this group are found ranges from adolescence to early adulthood giving a considerable overlap into these margins. This group of persons deems itself to be the epitome of style and knowledge. It is often made up of vivacious individuals who occupy almost entirely all spheres of America's living where they show case their talents through engagement into various activities including academics and the career world. In terms of dressing, this group of young people is trendy preferring to dress in the fashionable attires that flock the market. They are keen to watch the fashion market to ensure that the latest trends in clothing do not escape their attention meaning that their dress codes change as frequently as the market preferences do. The denim jeans clothing for example have been popular with the American youths since the 1990's with the creation of various stylish designs for pieces of clothing. Their hair do is also often stylish and changes as frequently as

Social Identity Theory Essay Example for Free

Social Identity Theory Essay Summarise two theories of identity and compare their usefulness for explaining the real world issues discussed in chapter 1, Identities and diversity. The study of identity is primarily the study of who we are and who we are not in comparison to other people, what makes individuals and groups of individuals unique from each other is a very controversial issue. This essay will look at two theories that aim to address this issue, namely, the Psychosocial theory and the Social Identity Theory (SIT). Whilst examining these two theories this essay will also look at their relevance to some every day issues. The view of Psychosocial theorists is one that identity is produced simultaneously by both personal and social factors. Psychoanalyst Erik Erikson was the first theorist to view identity this way, for Erikson identity consisted of a conscious sense of individual uniqueness, an unconscious striving for continuity and a solidarity with a groups ideas (Erikson cited in Phoenix, 2007, p.53). He believed that a solid understanding of who we are, how we fit in to and are viewed by society forms a core identity, which in turn will create a sense of continuity. Erikson lived through two world wars during which many people feared for their lives. This heightened sense of mortality led to identity confusion. Hence Erikson believed that identity crisis was prevalent at this time. Identity crisis for Erikson was a certain period of time when some young people could not create a solid Ego Identity (a clear understanding of oneself) and were confused and unable to commit to a certain path, the form that this crisis took would be socially and historically variable. This lack of a solid Ego identity Erikson termed as role diffusion. Erikson believed that identity was an ongoing lifelong process through eight different progressive stages ranging from birth to late adulthood, each stage encapsulated many times of crisis and conflict which he saw as normative crisis and essential to the development of identity. Although he saw the period of adolescence as the most important stage, with the majority of adolescents achieving a solid Ego identity after a socially accepted period of trials, trying out various social roles in order to find their ideal path. It was abnormal to be normal during adolescence (Freud cited in Phoenix, 2007, p.56) Erikson calls this period a Psychosocial Moratorium. During this period of Psychosocial Moratorium Erikson viewed the solidarity of adolescents with groups and their ideas as important to identity, as young people struggle to find a niche in society they can often over identify with various groups. Within these groups the feelings against other groups ( outsiders ) can often become cruel or even violent if there is any threat to their sense of identity. This identity battle between groups is addressed by the Social Identity Theory (SIT) which was developed by Psychologist Henri Tajfel. Unlike the work of Erikson, Tajfel concentrated more on the social than individual process of identity development. He considered the development of individual and group identity as being separate processes. Tajfel was a Jewish holocaust survivor, his experiences with the Nazi regime was the driving force of his studies, he wanted to know what it was that led to prejudice between different groups. Tajfel mainly focused his studies on trying to identify the minimum requirements needed in order to form group identities, which he did by studying the intergroup relations between minimal groups. These minimal groups were a number of individuals with nothing really in common with each other, apart from the fact that they were categorized as being in the same group (ingroup), they also had no reason to oppose any individual or group outside their defined group (outgroup). Tajfel found that the simple fact of being categorized within a group was enough to cause prejudice against another group. It is the subjective feeling of belonging to a group which is important in SIT rather than membership as defined by outsiders or simply sharing some characteristics with other group members (Turner cited in Phoenix, 2007, p.63). The SIT theory suggests that the status of an individuals group identity can directly affect a persons individual identity, and that the need to belong to a high status group is paramount to a sense of high self esteem. Therefore groups are continuously striving to be dominant and superior, in doing so dominant groups will often inflict prejudice and discrimination against inferior groups as a means to increase their members self esteem. likewise individuals of inferior groups will strive to increase their self esteem by attempting to increase their status by means of social mobility ( move to a higher status group). Some groups will often try to affect social change in order to improve their social status by means of social creativity,(redefining their social status in a more positive way) or social competition, ( revolutions and civil wars). Both the Psychosocial and SIT theories of identity are relevant in different ways when considering real life issues, one of which being the embodied identities of people with physical disabilities. Embodiment is a factor in both theories, SIT considers embodiment (of physically impaired people) as a category for discrimination whilst the Psychosocial theory is concerned with the continuity of ones body to function as an issue of identity. People becoming physically impaired later in life will have a heightened sense of identity, this can be explained by both theories. Psychosocial theorists would see this as a break in the continuity which is central to this theory leading to an identity crisis, whilst in the context of SIT the change in social status by being categorised in a minority group would be the explanation. In summarising the theories of Erikson and Tajfel it can be clearly seen that both approached the complexity of identity in very different ways, both drawing from their own life experiences as a focus for their studies. Although they both draw different conclusions each theory has some relevance to the identity of physically impaired people, this reinforces the view that there is no single answer to the question of identity. References Phoenix, A. (2007) Identities and Diversities, in Miell, D. and Thomas, K. (eds) Mapping Psychology, Milton Keynes, The Open University. Part 2 The aim of the study is to research the importance of work for identity. The researchers propose to recruit participants by putting a poster in a job centre inviting unemployed people to volunteer to be interviewed about their employment history. People who express interest will be given a date and time for an interview and asked to sign a consent form. They will be offered a small payment (Â £5) for completing the interview. When they attend the interview, they will be told that the interview will be video-recorded and later transcribed (i.e. the questions and answers written down) for the researchers to analyse. They will be promised confidentiality. The ethics committee does not grant approval, for several reasons. One is that in the proposed study the researchers do not adequately obtain the informed consent of the participants, as required by the British Psychological Society. 1. Explain the problems with the proposed study concerning informed consent. (150 words) Informed consent was not adequately obtained as it was not clearly stated as to why the research was being done nor was it made clear as to how the interview would be structured (use of a video tape, questionnaire, etc) It was not made completely clear as to how the data will be used and for what purpose. There was also no explanation of the fact that after the interview had been transcribed, further consent would be needed before it could be used. 2. Explain three of the other ethical problems raised by the proposed study. (200 words) a. There was no mention of the participants right to withdraw at any time which should be done at the point of first contact. It should also be explained that if they did decide to withdraw during the interview that the payment they received would not be withdrawn. This was not made clear and the statement could easily be read as if there will be no payment unless the interview was completed. b. Participants should not be promised confidentiality as a number of people would probably see the data given in order to analyse it. Instead they should have been promised anonymity whereby not only their name will be removed but any clues to their identity too. If this is not possible then consent would be needed for disclosure. c. It should have been made clear that before signing a consent form participants would be given the choice as to what questions they wish to answer and given the option to refuse to answer any questions they were uncomfortable with. 3. Suggest a possible improvement to the study and explain the ethical problem(s) this would address. (150 words) The participants could have been informed that they can view the data collected at the end of the interview and that they have the opportunity then to withdraw any information they were unhappy or uncomfortable about making public. This would help to uphold the dignity of the participant, in case in hindsight they had revealed something about themselves that they wanted to keep private.

Critical Reading Of James Joyce Ulysses English Literature Essay

Critical Reading Of James Joyce Ulysses English Literature Essay James Joyces Ulysses, is generally regarded as a modernist novel. At the time when Joyce was: à ¢Ã¢â€š ¬Ã‚ ¦writing Ulysses he had set himself the task of writing a book from eighteen different points of view and in as many styles  [1]  . Historically, modernism is frequently linked with the rise of industrialization. The basic conflict was that modern life was different than the life of the past. Peoples lives had become increasingly complex at the time, and they were forced to play a number of different societal roles, the result was that life came to be fragmented and disjointed. In the modern world, language was being stressed upon as people tried to identify with one another. This essay will determine the modernistic ideas that James Joyces Ulysses presents, and the relation of it with Homers Odyssey. The essay will focus on the literary devices Joyce uses in his writing, and the effect of them on the readers and characters within the stories. In Ulysses, Leopold Bloom corresponds to Odysseus, however it is not easy to just read the story as a re make of the Odyssey as Leopold Bloom also corresponds to Leopold Bloom. Ulysses is in fact a particularly realistic novel, and Joyce makes sure he does not let the storyline be forced upon by allegory. Joyce turns a normal day in a mans life into a heroic tale by opening and analyzing his inner thoughts in depth. He attempts to bring in the motion of the story beginning with the sphere of conflict, and swiftly moving to the sphere of the mentality. There are many differences than similarities in the two stories of Ulysses and The Odyssey. While Odysseus goes from place to place, Joyce goes from style to style  [2]  . In many ways, Telemachus is simply a less formed version of Odysseus. He is shown to be a tad misogynist, while Odysseus is in many ways more womanly. He possesses several traits which only Homers female characters share, and he identifies with women in a way that no one else can, mainly with Penelope. In the Odyssey, Telemachus, the son of the hero Odysseus, grows up in a world of greed and disregard; he is one of the most significant characters throughout the whole story. During Telemachus journey to search for the news of his father, he is shown going through the development of growing up as an adult. From the start of the text he is conveyed as a simple silhouette of his father, however towards the end he is shown to become more like his father in terms of compassion and initiative. Although he comes into his adolescence at the beginning of the book, growing up without a father still makes Telmachus to some extent wretched without initiative. Telemachus was evidently younger than Odysseus, and he had less patience. Odysseus however, being older, had a more knowledgeable outlook to most things therefore he knew he had time. Telemachus is the first to attack without a thought, whereas Odysseus thought hard through his attack, and was better at protecting himself. There are many similarities and differences between both characters. Ulysses is a book in which countless characters are brought out and developed through a number of disparate ways. The most momentous development that occurs in the story is the development of Telemachus. Joyce illustrates his character as an incredibly complex person, and continues to develop his personality from beginning to end int he story.  At the start of the text he is shown to be a mere shadow of his father whereas towards the end he is considered just as audacious as his father use to be. Many factors influence Telemachus as he grows into a man, his name signifies far from battle,  this name in many ways can be seen and revealed to be ironic in the book as T elemachus ends by taking part in two battles. Not having any fatherly figure in his life as a child persistently affects Telemachus character in the book.   He develops into an apprehensive, withdrawn and weak individual who is to the uppermost scale spoiled by his one and only mother.   A number of literary techniques are evidently used in Telemachus. It is shown to be a journey of manhood, which through the use of a various number of literal devices transmits the significance of a respective society. The story is a narrative poem which presents us the readers with a traditional journey that the character undergoes. Joyce uses the method of using the flashback technique in order to portray readers when there is a change in the setting or when there is a change in the time frame. This technique is widely used by authors in modern day society to illustrate a surprising yet easier to understand storyline. The imperative change on the chain of events that takes place in the text adds to the complexity of the story. When this method is used it gives us the readers the power of time travel, allowing us to view events out of their given time structure. Flashbacks in many ways can help to make the story more interesting and help draw the reader in. They are normally used to give us the readers a better view and understanding of the overall story. Important information about the protagonists and elements of the story are revealed to the reader through the use of flashbacks. Homer makes use of this device in The Odyssey when King Nestor repeats the story of the Trojan War. This flashback in particular allows readers to grasp and identify with the character of Odysseus. This method is also used to tell the story of Odysseuss adventures as he fought his way home through a various number obstacles. The structure of the story is a narrative poem; it presents the storyline in a style which proves to be very flexible. This type of literary constitution allows for a difficult or even a straight forward poem to be either long or short. Narrative poems are normally passed down to the next generation by the continuous retelling of stories. Children in todays society grow up hearing different stories as a tradition; they then pass those stories down to their own children. Joyce presents his, stylistic diversityà ¢Ã¢â€š ¬Ã‚ ¦towards the truthful depiction of reality  [3]  . The Odyssey on the other hand, is a story in structure of a classical journey, the male protagonist in the story is shown to be on a mission suffering from encounters with supernatural beings, consisting of monsters and gods. Repetition is also a technique which is used in Ulysses to emphasize the descriptions, dialogues, and verbal communications in the story. The fact that repetition is used allows the story to be much easier told. By only having one narrative in the story really cuts down on the amount of things that need to be remembered by the readers. It also provides itself as a benchmark style that helps the narrator act it out, or even improvise on the spot. The use of repetition helps add to the exhilarating effect of the story. Repeating certain things over and over again allows readers to be familiar with the repetition and what is going on. When this repetition is presented, our minds as the readers begin to wander leaving our thoughts and imaginations open for submission. The Odyssey is a text that makes use of similar passages; however the main repetition Homer uses is in the portrayals of the images presented in the text. For example, Pallas Athena is continuously referred to in relation t o her eyes. She is usually referred to as the beautiful eyed goddess. In this case reiteration is used in order to highlight a specific point that Homer tries to put across about her character. The Odyssey makes use of brutal imagery to convey the theme of reprisal. This staggering imagery in reality catches the readers interest and is a great means of expression for the theme of revenge. In conclusion Joyce uses different characters in order to bring out a more modernist meaning and feel to his story. It is clear to identify the differences and similarities both Ulysses and The Odyssey possess, Joyce tries to convey a new adaptation by altering and modifying his characters, whereas Homers Odyssey exists only in the past. Joyce evidently brings out a more modernistic experience and surrounding to the text in order to relate it to the modern world, this therefore allows readers to relate to it and allows it exist in a more contemporary world. The literary devices Joyce chooses to use create enigmatic and realistic settings to his story, he specifically uses for example techniques such as flashbacks, and repetition in order to bring across a captivating setting by leaving an attractive impression on the readers. Word: 1646

Factors Affecting Organisational Environment

Factors Affecting Organisational Environment One of the factors that affects organization-environment relationships is environmental change and complexity. The environment can be described along two dimensions which are its degree of change and its degree of homogeneity. The degree of change is the extent to which the environment is relatively stable or relatively dynamic. The degree of homogeneity of the environment is relatively simple (with some elements, a small portion) or complex (multi-element, much segmentation). These two aspects interact to determine the uncertainty facing the organization. The least environmental uncertainty is faced by organizations with stable and simple environments. The degree of homogeneity and the degree of change combine to create uncertainty for organizations. For example, a simple and stable environment creates the least uncertainty, and a complex and dynamic environment creates the most uncertainty. The University of Manchester provides exceptional learning environments which are highly int eractive online learning tools with our high quality, face to face teaching to provide all the students with a richer learning experience. The University of Manchester committed to creating contemporary, technology-rich and learning specs that bring students into the heart of a required learning experience through their investment in their campus and facilities. And they have the largest collection of books electronic resources of any UK university, and extensive coverage of Wi-Fi on campus. The university library is one of the largest and best-resourced in the UK. With more than four millions books, it also provides a collection of electronic resources unrivalled by any other British university. Professional library stuff provides every student with a full introduction to services, resources and how to make the most of them, and are also on hand throughout your time at the university to provide advice, training and help whenever you need it. And of course, if you have any special needs, facilities and help are provided here too. Manchesters IT provision is constantly growing and being updated to satisfy the rigorous de mands of the most computer-literate of students. But even if youve never graduated beyond a games console, theres no cause for concern.    The University provides guidance, training and support to help you keep abreast of the latest computer programmes and electronic information resources. When you become a student at Manchester, you will be registered for email, file storage and internet access. Computer clusters pepper the campus, many within individual Schools and halls of residence. The biggest computer clusters are located in the main Library and George Kenyon Building. Several of these clusters are open 24 hours a day. More powerful workstations are available to support specialist research applications. Organizations with dynamic but simple environment generally face a moderate degree of uncertainty. Examples of organizations functioning in such environments include music producers (catering faces relatively few competitors (diesel, Lee, and Wrangler), has few suppliers and few regulators and uses limited distribution channels. This relatively simple task environment, but also changes very rapidly as competitors a djust prices and styles, changing consumer tastes and new fabrics become available. Another combination of factors is one of stability and complexity. Toyota, Honda and Nissan face these basic conditions. After all, they must interact with consumer groups, regulators, suppliers and competitors. However, occurs quite slowly in the automobile industry. It is just like how the University of Manchester used the same concept of the environmental change and complexity. The second point of how environments affect organizations is competitive forces. Competitive forces is forces in the marketing environment or educational environment that are based on competition among customers and compete with other firms. As the organization looks out at its business environment, competition is a critical factor. Who is buying goods and services and who is providing them to those customers? Are there many competitors or are there just a few? Maybe none. Knowing what competitive forces exist helps an orga nization develop strategic planning to attract customers. As for the university, the university has a very high-quality research profile. In the first national assessment of higher education research since the universitys founding, the 2008  Research Assessment Exercise, the University of Manchester came 3rd in terms of research power after Cambridge and Oxford and 6th for grade point average quality (8th when including specialist institutions).    Accordingly, Manchester enjoys the largest amount of research funding behind Oxbridge, UCL and Imperial  (these five universities being informally referred to as the golden diamond of research-intensive UK institutions). Manchester also has a particularly strong presence in terms of funding from the three main UK research councils,   EPSRC, MRC  and  BBSRC, being ranked 3rd, 7th  and 1st  respectively. In addition, the university is also one of the richest in the UK in terms of income and interest from endowments: at a recent rank, it was placed at 3rd place behind Oxbridge. Historically, Manchester has been linked with high scientific achievement: the university and its constituent former institutions combined had  25 Nobel Laureates  among their students and staff, the third largest number of any single university in the United Kingdom behind  Oxford  and  Cambridge; in fact, excluding Oxbridge, Manchester has graduated more  Nobel laureates  than any othe r university in the UK. Furthermore, according to an academic poll two of the top ten discoveries by university academics and researchers were made at the University (namely the first working computer and the contraceptive pill). The university currently employs 4 Nobel Prize winners amongst its staff, more than any other in the UK. The 2009  THE-QS World University Rankings  found Manchester overall 26th in the world and 5th by employer reviews by receiving a maximum 100% rating which the university has retained since 2008. The separate 2010  QS World University Rankings  (in 2010  Times Higher Education World University Rankings  and  QS World University Rankings  parted ways to produce separate rankings) found that Manchester had slipped to 30th in the world. The  Academic Ranking of World Universities  2008 published by the Institute of Higher Education of  Shanghai Jiao Tong University  ranked Manchester 5th in the UK, 6th in Europe and 40th in the world . After several years of steady progress, Manchester fell back in 2009 to 41st in the world and 7th in Europe, falling back further to 44th in the world and 9th in Europe in 2010. Excluding US universities, Manchester is ranked 13th and 11th in the world for 2009 by THES and ARWU respectively. According to the ARWU rankings, the university is ranked 9th in Europe for natural sciences and 4th in engineering. Similarly the  HEEACT  2009 rankings for scientific performance place Manchester 5th in Europe for engineering, 8th for natural sciences  and 3rd for social sciences. And finally THES ranks Manchester 6th in Europe for technology, 10th for life sciences  and 7th for social sciences. More recently a survey by the Times Higher Education Supplement has shown that Manchester is placed 6th in Europe in the area of Psychology Psychiatry. According to a further ranking by SCImago Research Group Manchester is ranked 8th in Europe amongst higher education institutions in terms of sheer research output. In terms of research impact, a further ranking places Manchester 6th in Europe. According to the High Fliers Research Limiteds survey, University of Manchester students are being targeted by more top recruiters for graduate vacancies than any other UK university students for three consecutive years (2007-2009). Furthermore, the university has been ranked joint 20th in the world for 2009 according to the Professional Ranking of World Universities. Its main compilation criterion is the number of Chief Executive Officers (or number 1 executive equivalent) which are among the 500 leading worldwide companies as measured by revenue who studied in each university. The ranking places the University only behind Oxford nationally. Manchester is ranked 5th among British universities according to a popularity ranking which is based on the degree of traffic that a universitys website attracts. Also, a further report places Manchester among the top 20 universities outside the US. At a recent ranking undertaken by the Guardian, Manchester is placed 5th in the UK in internation al reputation behind the usual four: Oxbridge, UCL and Imperial. However, while as a rule world rankings (such as the ARWU, THES and HEEACT) typically place the university within the top 10 in Europe, national studies are less complimentary; The Times Good University Guide 2011 ranked Manchester 30th out of 113 Universities in the UK, The Complete University Guide2011 in association with The Independent placed it at 31st out of 115 universities whilst The Guardian University Guide 2011 ranked Manchester at 51st out of 118 universities in the UK. This apparent paradox is mainly a reflection of the different ranking methodologies employed by each listing: global rankings focus on research and international prestige, whereas national rankings are largely based on teaching and the student experience. The last point on how environments affect organizations is environmental turbulence. Environmental turbulence refers to the amount of change and complexity in the environment of a company. The greater the amount of change in environmental factors, such as technology and governmental regulations, and the greater the number of environmental factors that must be considered, the higher the level of environmental turbulence. For many reasons, environmental volatility and instability have been increasing for the past 100 years. Although often experience unexpected changes and upheavals, the five could still compete for the review and evaluation system, and development plans to address these issues.   At the same time, despite the changes in the environment or the occasional long-wave instability is not the most common form of the organization warned, there may be some form of crisis. One of the crisis is to get the attention of managers in recent years is workplace violence-situations in which disgruntled workers or former workers assault other employees, resulting often in injury and sometimes in death. The recession began in 2009 and concerns about the H1N1 (swine) flu virus in 2009 are other recent examples. The impact of crisis affects the organizations in different ways, and some organizations have developed crisis plans and teams. For example, during the H1N1 virus scare in 2009, one investigation reported that only 27 per cent of all United States employers had their plans for dealing with such a potential health crisis. In view of numerous problems, difficulties, and the environment in an organization, how should the organization adapt? Clearly, each organization must assess its own unique situation and adapt according to the wisdom of its senior management. Organizations attempt to their environments. The most common methods are information management; strategic response; mergers, acquisitions, and alliances; organization design and flexibility; direct influence; and social responsibility. One way in which organizations adapt to their environments is through information management. Information management  (IM) is the collection and management of  information  from one or more sources and the distribution of that information to one or more audiences. This sometimes involves those who have a stake in or a right to that information.   Management  means the organization of and control over the structure, processing and delivery of information. Throughout the 1970s this was largely limited to files, file maintenance, and the  life cycle management  of paper-based files, other media and records. With the proliferation of information technology starting in the 1970s, the job of information management took on a new light, and also began to include the field of  Data mainte nance. No longer was information management a simple job that could be performed by almost anyone. An understanding of the technology involved and the theory behind it became necessary. As information storage shifted to electronic means, this became more and more difficult. By the late 1990s when information was regularly disseminated across computer networks and by other electronic means, network managers, in a sense, became information managers. Those individuals found themselves tasked with increasingly complex tasks, hardware and software. With the latest tools available, information management has become a powerful resource and a large expense for many organizations. In short, information management entails organizing, retrieving, acquiring and maintaining information. It is closely related to and overlapping with the practice of Data Management. Other than information management, there is another way that an organization adapts to its environments is through a strategic respon se. If the market is growing rapidly as a company, the firm may decide to invest even more heavily in products and services for that market. Similarly, if the market is shrinking or without the possibility of reasonable growth, the company may decide to cut back. A related strategic approach that some organizations use to adapt to their environments involves mergers, acquisitions, and alliances. A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. An  acquisition, also known as a  takeover  or a  buyout, is the buying of one company (the target) by another. Consolidation is when two companies combine together to form a new company altogether. An acquisition may be private or public, depending on whether the acquiree or merging company is or isnt listed in public markets. An acquisition may be  friendly  or hostile. Whether a purchase is p erceived as a friendly or hostile depends on how it is communicated to and received by the target companys board of directors, employees and shareholders. It is quite normal though for MA deal communications to take place in a so-called confidentiality bubble whereby information flows are restricted due to confidentiality agreements (Harwood, 2005). In the case of a friendly transaction, the companies cooperate in negotiations; in the case of a hostile deal, the takeover target is unwilling to be bought or the targets  board  has no prior knowledge of the offer. Hostile acquisitions can, and often do, turn friendly at the end, as the acquirer secures the endorsement of the transaction from the board of the acquired company. This usually requires an improvement in the terms of the offer. Acquisition usually refers to a purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will acquire management control of a larger or longer established company and keep i ts name for the combined entity. This is known as a  reverse takeover. Another type of acquisition is a reverse merger, a deal that enables a private company to get publicly listed in a short time period. A  reverse merger  occurs when a private company that has strong prospects and is eager to raise financing buys a publicly listed shell company, usually one with no business and limited assets.    Achieving acquisition success has proven to be very difficult, while various studies have shown that 50% of acquisitions were unsuccessful. The acquisition process is very complex, with many dimensions influencing its outcome. A  business alliance  is an agreement between businesses, usually motivated by cost reduction and improved service for the customer. Alliances are often bounded by a single agreement with equitable risk and opportunity share for all parties involved and are typically managed by an integrated project team. An example of this is  code sharing  in airline alliances. An organization may also adapt to environmental conditions by incorporating flexibility in its structural design. For example, a company in an uncertain business environment, relatively low levels may choose to use many of the basic rules, regulations and standard operating procedures of the design. The latter sometimes referred to as an organic design, is considerably more flexible and allow t he organization to respond quickly to environmental change. Organizations are not necessarily helpless in the face of their environments. In fact, many organizations are able to directly influence their environments in many different types of ways. The organization also influences their customers by creating new users for a product, stealing customers away from competitors, and also convincing customers that they need something more new and updated. Another way that an organization adapts to its environments is through social responsibility. Social responsibility  is the principle that companies should contribute to the welfare of society and not be solely devoted to maximizing profits. This responsibility can be negative, meaning there is an exemption from blame or liability, or it can be positive, meaning there is a responsibility to act beneficently (proactive stance). Specifically, social responsibility is the set of obligations an organization has to protect and enhance the societal context in which it functions. A number of organizations recognize that in all three areas of responsibility, every effort to meet each of them, while others emphasize only one or two areas of social responsibility. And a few acknowledge no social responsibility at all. In addition, the views of social responsibility vary in different countries.

Dr. Martin Luther King Jr. - A Model of Courage Essay -- Dr. Martin Lu

Dr. Martin Luther King Jr. is a Model of Courage To be courageous is necessarily connected with feeling personal danger. If no danger exists, no courage is possible. To show true courage, one must be nonviolent. Violence is the last resort of a coward. For one's courage to truly effect a situation, one must convince others to show the same type of courage. The perfect embodiment of moral courage in the face of serious personal danger is Martin Luther King Jr. King stood up to bigotry through his words and actions. He showed courage without simply thinking that danger may exist, but knowing that danger would exist. He felt that the only way to truly stand up and make a difference is to be punished for just actions. This will inspire followers to show the same impressive courage. Despite nonviolence, King was arrested on a multitude of occasions for breaking the segregation laws of his time period. During one of these arrests, King reflected on his stance in a letter to his fellow clergymen from Birmingham Jail. "There are two types of laws: there are just and there are unjust laws.. An unjust law is no law at all... So I urge men to disobey segregation ordinances because they are morally wrong... One who breaks an unjust law must do it openly, lovingly... and with a willingness to accept the penalty" King is saying that to show moral courage one must not only break the unjust laws, but one must also desire to be caught. To break an unjust law and not be punished will not serve to change the law. King took his own words to heart and broke segregation laws whenever possible. He did this while not just in the face of danger, but with danger breathing down his neck. His ability to endure punishment for a just act inspi... ...at they cannot sit idly by just because the injustices of the time do not affect them. One must act to preserve justice for all, even if one is not the target of injustice. King's moral courage had a profound effect on all those of his time period and in the future. His life and actions have significance for all people, both then and now. King's courage not only changed the world, but his words of many years ago tell people today that the fight is not over. There are people dying due to injustices all over the world. King's words about problems of the past apply to the problems of today. Injustice in the Middle East affects the justice in the life of an average middle income American. Thus, even in death King is able to call us to action. Through openness, nonviolence and a commitment to future justice, King is a model of courage in the face of personal danger.

The Effects of Motivation on Performance Essay examples -- Andrew and

The Effects of Motivation on Performance Findings Task 2- Write a Report on the effects of Motivation on Performance Research people’s attitude to work and factors affecting their motivation by constructing a questionnaire and conducting a small survey. You should aim to distribute your questionnaire to at least 5 people within your organisation. Gather information on what motivates individual performance and identify attitudes to work by interviewing an employee in-depth and comparing their attitudes with your own. Relate you findings to motivation theories and provide a description of the motivators appropriate for different types of individual performance. Andrew and Robertson: An Introduction to the Business Objectives Andrew and Robertson have started put life as property mangers in 1887. Managing properties on behalf of owners. Southwark Council also contracted out housing management for a trial period in the 90’s in which Andrew and Robertson’s partly participated. In the 1960’s Andrew and Robertson expanded into auctioneering. The object of this section of the business aims to sell houses at auctions 4 times a year. However 1980 prior they only had two actions a year. The business aims to make a profit for the four senor partners. The business has no obvious intentions to float on the stock market. The partnership has currently invested in a new phone system and computer network for one of its three branches. This according to an associate partner is the partnership attempting to modernise the old fashion approach to the business currently used by managers. Serves Andrew and Robertson’s serve the clients who own the properties, which they manage. The management also serve their auctioneering arm that sells properties for the clients of the property-managing arm who wish to sell their properties. Motivational Procedures Andrew and Robertson’s have no written procedures however there are a number of unwritten procedures, which are used. These procedures include: Staff/Management association (This is not like by a small minority of staff  ¼) Close quarters arrangements (Putting desks in close proximity for communication means) Appraisal Meetings (Token) Staff Management association This is the system in which higher level management work along side their employers. In the hope that the bond between the low... ...people work so hard and Physiological needs Basic needs such as food water and shelter are all met because the pay is reasonable at the firm of Andrew and Robertson’s. Food and drink is also supplied in small quantities at break times. The management sees these as incentives because in the afternoons the employees generally work harder. So therefore the reason for higher efficiently in the afternoons is the cakes and tea, which are available at lunch times and corresponds to the Physiological needs on Abraham Maslow’s Hierarchy of needs William Bridges IT Evolution William Bridges wrote that there have been many changes in the modern working environment. Including the number of jobs in an organisation deceasing or increasing during fluctuating periods of demand. He argument being the advancement of IT had increased competition and therefore the nature of management philosophy. This is truer at Andrew and Robertson’s since the number of employees aged over 40 years has dropped tremendously over the last 3 years due to the need for IT compliant staff. Since it is the partners who dictate policy their behaviour and types of behaviour towards their management policy.

Industrial Security Plan Essay

Roles and Responsibilities of Industrial Safety and Security Officers Safety and security in the industrial setting are elements that are required for the safety of the plant, its staff, and the public in the surrounding area. As a constantly evolving process, the use of safety and security officers is also paramount in the enforcement of policies and procedures to decrease or eliminate injury or loss. Safety and security personnel are â€Å"responsible for enforcing organization rules and regulations concerning security and safety,† (Fisher & Green, 2004). Each organization has its own rules, regulations, policies, and code of conduct to protect the staff from hazards such as fire, accidents, product tampering, and possible terrorist attacks. Local, state and federal regulations are also included in these policies to increase and maintain the safety of the staff and public. Another role of safety and security personnel involves â€Å"developing measures and action plans for the preventing and responding to cases related to fires, industrial accidents, natural disasters, theft, vandalism and medical emergencies,† (Fisher & Green, 2004). The safety and security staff are responsible for consulting a company’s best policies and procedures to create and enact standards to prevent the above mentioned threats. Safety and security personnel are also expected to, â€Å"gather intelligence information that would assist in anticipating the occurrence of any threat to organizational safety and security,† (International Foundation for Protection Officers, 2003). This would allow the security and safety staff to adequately respond to industrial accidents such as fire or breach of security and ensure the proper emergency services are notified. Maintaining OSHA and EPA Regulations A compliance assistant who works for OSHA states, â€Å"the most cited violations are fall protection, hazard communication, respiratory protection, control of hazardous energy, powered industrial trucks, ladders, electrical wiring, industrial machines and improperly guarded floors and wall openings,† (Spencer ,2013). Before OSHA was created in 1970, work related accidents accounted for more than 14,000 deaths of employees and staff. Nearly two and a half million workers were disabled and new cases of occupational diseases totaled three hundred thousand. With the creation of OSHA pressure on most organizations increased to provide a safer workplace for employees except some self employed individuals, farmers, and government employees. Management is obligated to provide the needed resources and funding for OSHA and EPA program implementation. This allows the personnel chosen by management the authority to maintain and enforce all needed safety regulations in the workplace. Normally a safety officer, this individual finds, prevents, or controls hazards as well as training and educating employees in OSHA and EPA regulations and policies. The easiest way to enforce regulations and policies in any organization is to enact and enforce them in the beginning of operations. Safety officers must then maintain an open line of communication with OSHA and EPA inspectors to maintain standards and note changes in regulations and provisions. Allowing an open door policy with employees is also beneficial as violations can be noted and employees can be trained and informed of changes. According to Spencer (2013), â€Å"That for every one dollar spent on safety and health, businesses get at least four dollars back – and sometimes as much as a ten dollar return on investment.† While the task of enforcing OSHA and EPA regulations and provisions may seem impossible, properly maintaining reports and record keeping can make passing inspections easier and less daunting. In order to meet or exceed the minimum requirements of OSHA and the EPA, following the set order of compliance allows the ability to keep employees safe. â€Å"By January 1, 1991, and by the beginning of each succeeding fiscal year, EPA and OSHA will develop an annual work plan to identify and define the priorities to be addressed during the year. This work plan will include an identification of specific types of facilities to be jointly addressed during the year,† (EPA/OSHA, 1991). Emergency Response When dealing with incidents that threaten the plant or employees such as fire, chemical release, or natural disasters unique challenges are created. These normally require the assistance of local, state, and federal government agencies that demand a centralized command structure. Founded in 2003 as a response to errors in the â€Å"Katrina† disaster, the National Incident Management System (NIMS) is a system that provides the ability for local, state, and federal agencies the ability to work together regardless of the size or complexity of a disaster, (Kirkwood,2011). Using the Incident Command System (ICS), the working characteristics, interactive managing and mechanisms, and construction of occurrence management and disaster response associations engaged throughout the life cycle of an incident are defined. Initially, the first step of the response is to evaluate the total scope of the incident by continually determining the type of hazard as well as estimates of possible damage to the environment, critical systems, life, and property. After these questions are answered the next step, an action plan, is created. The second step requires local, state, and federal agencies to create an action plan that is based on the response plans of the independent agencies and each agency takes responsibility for a different part of the action plan. The plan is then deployed after it is developed with each agency providing their assets to the task at hand and is guided by the unified chain of command through the ICS and the Incident Commander. The Incident Commanders main responsibility is to ensure the incident is handled safely, efficiently, and effectively to minimize injury, death, and so a favorable outcome can be achieved. In the occurrence of a disaster, the incident commander has activated five functional areas of the incident command system: 1. Command 2. Operations 3. Planning 4. Logistics 5. Finance/Administration Each of these functional areas performs specific duties working together as required by the National Incident Management System and report to the incident commander. Operations take the responsibility of managing the  tactical operations of the incident and they direct their activities towards reducing the hazard, saving lives and property, establishing control of the situation, and restoring normal conditions. Agencies such as â€Å"fire, police, public health, public works, and emergency services all working together,† (Homeland security, 2004), comprise this section. Planning is responsible for the collecting, evaluating, and disseminating tactical information pertaining to the incident. This section maintains control of the personnel, facilities, supplies and equipment used during the incident and keeps track of all resources available as well as knowing where all groups are assigned. All arriving personnel check in with this department so that they may be properly assigned and accounted for. Logistics receives all requests for resources needed for the incident and orders the needed equipment such as supplies, food services, communications, transportation, and medical services as required. The facilities unit â€Å"sets up and maintains all facilities needed during the incident such as places to sleep, food and water service, showers and sanitation. Portable toilets, lighting units and shower facilities are included in the facilities units’ responsibilities during the incident,† (Homeland security, 2004). The communications units duties are to make the â€Å"most effective use of the communications equipment and facilities assigned to the incident, installs and tests all communications equipment,† (Homeland security, 2004). Communications is responsible for issuing and recovering any communication equipment assigned to the personnel working the incident as well as maintaining and repairing the equipment as needed. The need for communications during any incident is of paramount importance when dealing with any hazard or incident response. Food services are responsible for controlling the feeding of all incident response personnel and arrange services to do so. The medical units’ responsibility is to control any medical care that must be performed when incident personnel are injured or harmed in their duties. The finance/administration department is responsible for controlling costs and also for the administration of the different departments during an incident response. Disaster Response and Continuity Plan In the event of an incident or disaster and the possible impact to employees and the public’s health and safety, external agencies may be required to assist in lessening the effect of injuries or death. Using the National Incident Management System and the Incident Command System to successfully integrate external organizations into the plan or process is paramount depending on the incidents severity. Event integration of the incident command system begins at notification and, once outside agencies are notified, getting the authority that has jurisdiction to a specific location is the first requirement. This requires providing clear specific information about the event and then developing the incident command structure with clearly defined roles and responsibilities for each responding agency whether local, state, or federal. Depending on the incident and the possible impact to employees and the public, the organization needs to integrate the National Incident Management System into their disaster response plans in a systematic and proactive approach. NIMS provides organizations with assistance agreements and mutual aid agreement templates when incidents occur as well to assist in recovery. Following NIMS guidelines before an incident occurs also assists in preparing and organizing for vulnerabilities the organization may face. The main aspect of any business continuity plan is to effectively allow the organization to survive and mitigate any losses and should be the number one priority. The second should be the collection and security of all business related data and materials. This can be achieved through preparing hard copies of the data, having data stored on offsite devices, and storing data on devices protected from outside environments. Materials and orders also need to be tracked effectively so that in the event of an incident, the organization does not suffer further loss. It is also advisable to have secondary locations to use in the event of an incident or natural disaster. This would allow the organization to maintain operations or to regain operations quicker with lower loss of income. References Fisher R. & Green G (2004). Introduction to Security. Butterworth- Heinemann Publisher Homeland security. (2004, March 1). National incident management system [PDF ]. Retrieved from http://www.au.af.mil/au/awc/awcgate/dhs/nims.pdf International Foundation for Protection Officers (2003). Protection Officer Training Manual. USA, Butterworth Publishers Kirkwood S. (2011). NIMs and ICS: From Compliance to Competence. Retrieved from http://www.emsworld.com/print/EMS-World/NIMS-and-ICS–From-Compliance-to- Competence/1$7052 Spencer, J.R. (2013). OSHA inspection prep: Have a plan ready when inspectors come knocking. New York, NY: Headline News. MEMORANDUM OF UNDERSTANDING BETWEEN THE U.S. DEPARTMENT OF LABOR OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION AND THE U.S. ENVIRONMENTAL PROTECTION AGENCY OFFICE OF ENFORCEMENT (02/13/1991, EPA/OSHA) Section III Article A Paragraph 2 https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_id=238&p_table=mou

Pepsi Cola

9-801-458 REV. OCTOBER 24, 2008 CARLISS Y. BALDWIN LEONID SOUDAKOV PepsiCo's Bid for Quaker Oats (A) Introduction By the end of 1999, following a multi-year restructuring effort, PepsiCo had once again become one of the most successful consumer products companies in the world. In less than four years, it had achieved an 80% increase in net income, on 30% lower sales, and with 75% fewer employees. Exhibits 1 through 3 contain the company’s recent financial statements. PepsiCo’s major subsidiaries were the Pepsi-Cola Company, which was the world’s second largest refreshment beverage company, Frito-Lay, Inc. the world’s largest manufacturer and distributor of snack chips, and Tropicana Products, the largest marketer of branded juices. PepsiCo’s leading brands included carbonated soft drinks (Pepsi, Diet Pepsi and Mountain Dew), AquaFina bottled water, Tropicana juices and juice-based drinks, Lipton tea-based beverages and Frappucino ice coffee, as well as Fritos and Doritos corn chips, Lay’s and Ruffles potato chips, and Rold Gold pretzels. Throughout 1999, PepsiCo was closely tracking several potential strategic acquisitions. In the fall of 2000, it appeared that the right moment for an equity-financed acquisition had arrived.At this time, PepsiCo management decided to initiate confidential discussions with The Quaker Oats Company about a potential business combination. Gatorade, a key brand in Quaker’s portfolio, had long been on PepsiCo’s wish list. On October 5, 2000, an investment-banking team from Merrill Lynch met with the top executives of PepsiCo to discuss a possible business combination between PepsiCo and Quaker. The goals of the meeting were: †¢ to assess the value of Quaker’s businesses; to estimate potential synergies associated with a Pepsi-Quaker merger; and to come up with an effective negotiation strategy. †¢ PepsiCo executives were confident that Quaker’s beverage a nd snack food businesses could contribute to Pepsi’s profitable growth in convenience foods and beverages. However, PepsiCo’s managers, led by CEO Roger Enrico and CFO Indra Nooyi, were committed to upholding the value of PepsiCo’s shares, and as a result, they were determined not to pay too much for Quaker. ________________________________________________________________________________________________________________ Leonid Soudakov (MBA ‘01) prepared this case from published sources under the supervision of Professor Carliss Y.Baldwin. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright  © 2001, 2002, 2008 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to htt p://www. hbsp. harvard. edu.No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. 801-458 PepsiCo’s Bid for Quaker Oats (A) PepsiCo’s Origins and History In the summer of 1898 Caleb D. Bradham, a young pharmacist from North Carolina, looked for a name that would better describe the â€Å"Brad’s Drink,† his concoction of carbonated water, sugar, vanilla and kola nuts.He decided to buy the name â€Å"Pep Kola† from the local competitor, which he later changed to Pepsi-Cola, maintaining that the beverage aided in curing dyspepsia, or indigestion. In 1902, Bradham applied for federal trademark protection and founded the first Pepsi-Cola Company. As a result of Bradham’s gambling on the post-World War I price of sugar, the company wen t bankrupt in 1923, and its assets were sold for $30,000. It was reorganized as the National Pepsi-Cola Company in 1928, only to go bankrupt again three years later. Emerging from bankruptcy with new owners, the company’s fortunes changed uddenly in 1934. That year, in the middle of the Great Depression, it introduced a 12-ounce bottle of Pepsi Cola for â€Å"just a nickel. † Its sales soared, and the Pepsi-Cola Company embarked on six decades of sustained and profitable growth. In 1965, the company merged with the Texas-based snack manufacturer, Frito-Lay, Inc. In 1970, its total food and beverage sales passed the $1 billion mark. The major products in its portfolio at this time were Pepsi-Cola, Diet Pepsi and Mountain Dew beverages, plus Fritos, Lay’s, Ruffles, Doritos, Cheetos, and Rold Gold snacks.The company, now called PepsiCo, continued to grow through the 1970s and 1980s. During this period, it used acquisitions to diversify out of its profitable, but re latively slow-growth beverage and snack businesses, acquiring North American Van Lines, a trucking company, in 1968; Wilson Sporting Goods in 1970; Pizza Hut restaurants in 1977; and the Taco Bell fast food chain in 1978. In 1984, PepsiCo was restructured to focus on soft drinks, snacks and restaurants, and the transportation and sporting goods businesses were sold.To strengthen its restaurant division, PepsiCo acquired Kentucky Fried Chicken in 1986; purchased an equity interest in California Pizza Kitchen in 1992; and acquired East Side Mario’s Restaurants and D’Angelo Sandwich Shops a year later. By 1995, PepsiCo sales had reached $30 billion, and it had 470,000 employees worldwide. It was the world’s third largest employer. Restructuring in the Mid-1990s In the mid-1990s, PepsiCo began to encounter severe problems in its international bottling operations and in its restaurant division.In August of 1996, PepsiCo’s long-time archrival, The CocaCola Comp any, bought Pepsi’s largest Venezuelan bottler, and PepsiCo was left with no presence in that market practically overnight. In Brazil and Argentina, a bottler jointly owned by PepsiCo and local investors, came close to bankruptcy. The bottler’s debts were converted into equity, a move that essentially eradicated Pepsi’s claim: PepsiCo reported a one-time loss of $576 million as a result of this restructuring. Simultaneously, the company suffered volume and profit declines in its restaurant businesses.Between 1988 to 1994, PepsiCo had invested close to $7 billion to acquire thousands of fast food and casual dining outlets. But the operational complexity of these businesses was a tax on PepsiCo’s management. Moreover, because of their capital intensity, even profitable restaurant chains could not maintain high returns on invested capital without commensurately high levels of debt. Finally, PepsiCo’s beverage sales to other restaurant chains suffered because of the company’s dual role as a beverage supplier and a major competitor through its own fast food chains. 2PepsiCo’s Bid for Quaker Oats (A) 801-458 In April 1996, Roger Enrico, formerly the head of the Frito-Lay division, became the CEO of PepsiCo. He acknowledged that the company had invested â€Å"too much money too fast, trying to achieve heroic overnight success where, in retrospect, the odds were tougher that they seemed. †1 In the restaurant division, Enrico’s team began by divesting PepsiCo’s restaurant supply and distribution company and the smaller casual dining businesses. Simultaneously, the company announced plans to spin off its core restaurant businesses into a separate company.In 1997, PepsiCo combined its three restaurant businesses, Pizza Hut, KFC and Taco Bell, into a new corporate entity, Tricon Global Restaurants. PepsiCo received $4. 5 billion in cash from Tricon as repayment of certain amounts due and a dividend; Tri con’s shares were then distributed to PepsiCo’s shareholders, and simultaneously listed on the NYSE. These moves created a new public company, with $10 billion in sales and a market capitalization of $4. 5 billion. Altogether, the divestitures of the restaurant businesses brought $5. 5 billion of cash proceeds to PepsiCo.At the same time, PepsiCo’s managers embarked on a major restructuring of the international beverage division. The goals of the program were to lower fixed costs, write down underperforming assets, and divest noncore businesses. Following the lead of Coca-Cola, the company consolidated its previously dispersed bottling operations into the hands of a few large, well capitalized â€Å"anchor† bottlers, who were focused solely on manufacturing, selling and distributing Pepsi’s line of beverages. The new bottlers were designed to be counterweights to large retailers, like Wal-Mart and Carrefour, in the rapidly consolidating retail mark etplace.Thus in 1998 PepsiCo created the Pepsi Bottling Group (PBG) with $7 billion in sales, and bottling operations in countries ranging from the United States to Russia. This move separated the bottling and concentrate parts of the business, and allocated responsibility for building operational efficiency to the bottling companies. Retaining a 35% noncontrolling interest, PepsiCo sold 65% of PBG’s equity in an initial public offering in 1999. The sale brought $1 billion in cash onto Pepsi’s balance sheet, and led to a significant reduction in the company’s asset base.Signaling management’s confidence in the new corporate strategy, PepsiCo used the cash generated by the restaurant and bottling divestitures to launch a share repurchase program. It bought back 54 million shares in 1996, 69 million shares in 1997 and 59 million shares in 1998. Management was now able to focus on building a strong portfolio of brands in beverage and snack foods. In 1998, Pe psiCo acquired the Tropicana juice business from Seagram’s for $3. 3 billion in cash. The acquisition gave the company a strong market presence in the fast-growing noncarbonated beverage segment.Compared to Pepsi’s existing businesses, Tropicana provided a lower return on assets and invested capital, but PepsiCo’s managers, especially Enrico and Indra Nooyi, the CFO, saw a great opportunity for strong margins and profitable growth if this superior brand were brought under the PepsiCo umbrella. Investment analysts and portfolio managers were more skeptical, however. At the time of the Tropicana acquisition, there was a perception on Wall Street that Pepsi might have paid too much. Two years later, however, the Tropicana acquisition was viewed as an outstanding success.Tropicana’s sales volume and profitability consistently exceeded market expectations every quarter from the date of acquisition in the fall of 1998 through September 2000. Moreover, the integ ration of the new business into PepsiCo’s corporate structure was seamless: neither Tropicana’s brand heritage, nor its unique distribution system was harmed by the acquisition process. 1 Letter From the Chairman, 1996 PepsiCo Annual Report. 3 801-458 PepsiCo’s Bid for Quaker Oats (A) Exhibit 4 shows PepsiCo’s stock price history from October 31, 1997 through October 4, 2000.Throughout 1999, PepsiCo’s stock price stagnated as investors shied away from the traditional packaged goods companies in favor of the Internet and technology stocks. This lackluster performance caused PepsiCo’s management to abstain from any major acquisitions. In the words of CFO Indra Nooyi, â€Å"we wanted a few quarters of solid performance behind us, and our currency— that is, our stock price—to reflect our underlying value. †2 When the Internet bubble burst in March 2000, PepsiCo’s stock price began to rise: between March 8 and October 4, it appreciated from $30. 0 to $45. 125, or almost 50%. PepsiCo’s managers believed that it was time to see if a deal could be struck with Quaker that would be advantageous to both sides. The Quaker Oats Company Nearly a century old in 1999, Quaker Oats was a worldwide consumer goods company with annual sales of $4. 7 billion. In addition to its hot cereals, Quaker Oats and Quaker Instant Oatmeal, the company’s portfolio of brands included Gatorade sports beverages, Granola snack bars, Life and Cap’n Crunch ready-to-eat cereals, and Rice-a-Roni and Near East flavored grain dishes.Exhibits 5-7 contain Quaker’s most recent financial statements as of October 4, 2000. Exhibit 8 provides data on Quaker’s financial performance broken down by beverage and food segments and by region. Exhibit 9 shows Quaker’s total sales and growth rates by product line for the years 1994-1999. In 1999, Quaker was emerging from a period of restructuring and refocu sing of its core businesses. During the decade prior to 1999, Quaker divested businesses with more than $2 billion in revenues, or about a third of its initial asset base.The divested operations included chemicals, toy manufacturing, specialty retailing, restaurants and pet foods, as well as the infamous Snapple beverage business. (In 1994, Quaker paid $1. 7 billion for Snapple Corporation, which sold branded juice-based beverages. Quaker then made the mistake of replacing Snapple’s distributors, and alienating the brand’s target consumers. After incurring dramatic losses, Quaker sold the business to Triarc in 1997 for $300 million. ) Robert Morrison joined the company as CEO in 1997, and proceeded to lead the company through an impressive turnaround.By 1999, 93% of Quaker’s U. S. sales came from brands holding the number-one or number-two positions in their product categories, and the company was perceived to be one of the best-managed companies in the packaged food and beverage industry. However, because it was a relatively small player in a highly concentrated and competitive global industry, Quaker was also seen as a potential acquisition target. Table A shows the distribution of revenues among the major players in the global packaged food and beverage industries.Indeed, in August 2000, David Nelson, an analyst at CSFB estimated Quaker’s synergies with various large food and beverage companies, and translated those figures into a potential takeover price for the company. His calculations are summarized in Table B. 2 Quoted in Lauren R. Rubin, â€Å"Profitable Fit,† Barron’s, December 11, 2000. 4 PepsiCo’s Bid for Quaker Oats (A) 801-458 Table A Major Companies Competing in the Global Packaged Food and Beverage Industries Annual Revenues, $Bns 50 40 30 20 10 0 Heinz Kraft Quaker Oats Hershey General Mills Coca-Cola Campbell PepsiCo Unilever Keebler Danone Kellogg NestleTable B Potential Acquirer's Estimated S ynergies ($ in millions) Synergy Estimates Savings Kellogg Campbell Philip Morris Coca-Cola Pepsi-Cola Nestle Danone Source: Capitalized Value Total 450 200 450 650+ 425 400 275 Per OAT Share $20. 36 $9. 05 $20. 36 $30. 00+ $19. 23 $18. 10 $12. 45 Potential Takeover Price $95. 36 $84. 05 $95. 36 $105+ $94. 23 $93. 10 $87. 45 Revenues 150 25 150 500+ 250 150 100 300 175 300 150 175 250 175 CSFB Equity Research Report on Quaker Oats, August 1, 2000. Interest in Quaker was centered on its Gatorade line of sports beverages, which accounted for 39% of Quaker’s sales in 1999.According to one analyst report in August 2000, â€Å"As a small, publicly traded, now well-managed company owning possibly the fastest-growing billion dollar growth potential product in the food and beverage industry, there is little doubt that Quaker is an attractive target or at least a highly desirable merger partner. †3 3 David C. Nelson, David S. Bianco, â€Å"Quaker Oats: Is It in the Stock? ,â⠂¬  Credit Suisse First Boston Equity Research, 08/01/2000, p. 4. 5 801-458 PepsiCo’s Bid for Quaker Oats (A) Rumors linking PepsiCo and Gatorade first surfaced in 1994.Late in 1996, Quaker reportedly attempted to sell both its beverage businesses (Gatorade and Snapple) as a package for about $3 billion. A year later, analysts predicted that PepsiCo’s would use the proceeds from the spin-off of its restaurant unit to finance an acquisition of Gatorade. Finally, in a report published in March 2000, Bill Pecoriello, an analyst at Sanford C. Bernstein & Co. , advocated a PepsiCo-Quaker merger, saying that PepsiCo was â€Å"strongly positioned† to leverage Gatorade through its distribution system in the US and internationally, and to sell Quaker snacks through its Frito-Lay network.Fueled in part by speculation that it might be acquired, Quaker stock appreciated almost 80% from its low of $45. 9375 on March 14 to its recent high of $79. 125 on September 29, 2000. E xhibit 10 shows Quaker’s stock price history from October 1997 through October 4, 2000. Exhibit 11 calculates selected ratios for PepsiCo and Quaker for the years 1996 to 2000. Exhibit 12 provides data on comparable companies. Exhibit 13 shows market interest rates as of October 4, 2000. Gatorade Gatorade was created on the campus of the University of Florida in 1965.Researchers at the school wanted to create a drink that would prevent dehydration among athletes. The drink was named for school’s football team, the Gators: its introduction in the early 1970s launched the commercial sports beverage industry. Quaker acquired rights to the formula and the name in 1983. By 1999 Gatorade was well established as the world’s leading sports drink with $1. 9 billion in global sales, and 82 percent of the U. S. sports beverage market. Its growth had been remarkable: From 1997-1999, Gatorade’s sales grew at an annual rate of 12 percent, while profits grew at around 1 5 percent (see Exhibits 8 and 9).Over the next five years (2000-2004), Quaker’s management expected Gatorade sales to increase by $1 billion, implying a 9. 25% cumulative average growth rate. Should that growth materialize, economies of scale were expected to drive profits upward at a 13. 5% rate over the same time period. As a rehydrating and energy beverage, Gatorade was a seasonal product, with the majority of its sales occurring in the warmer months of April to October. Highest levels of per capita consumption were in the southern parts of United States. Gatorade’s international presence was limited, however: less than 20% of its sales came from outside North America.Its European launch in the mid-1980s had been unsuccessful, partly because of poor brand positioning, but also because heat-driven beverage consumption was not common in Europe’s colder climates. Quaker’s managers believed that Gatorade had huge growth potential in the warm-weather climat es of Latin America and Asia, but the shaky economies in these regions presented major challenges to sustained, profitable growth. At the time of the acquisition by Quaker, Gatorade had only two flavors on the market: orange and lemon-lime. By 1999, there were more than twenty different flavors, from Whitewater Splash to Cool Blue Raspberry.Quaker was also seeking to extend the Gatorade’s brand into new product arenas. In the summer of 2000, Quaker launched a vitamin-fortified flavored water called Propel under the Gatorade brand umbrella in southern U. S. markets. This new product was advertised as a â€Å"fitness water†: it delivered the vitamins, carbohydrates, and antioxidants present in Gatorade with only one-fifth of the calories. This move marked Gatorade’s entrance into the fast-growing bottled water market. At the same time, the company launched Torq, a quick energy, high-carbohydrate diet supplement for intense athletes.Although Torq was a niche produc t with limited market prospects, it signaled Gatorade’s continuing commitment to sports nutrition, thereby enhancing consumers’ perception of the brand. 6 PepsiCo’s Bid for Quaker Oats (A) 801-458 Finally, Quaker’s management had decided to extend the Gatorade brand into the $500 million energy bar market, which was growing at an annual rate of 30%. This was a natural move, given Quaker’s core expertise in snack bar products (see below), and the fact that nearly 70% of energy bar consumers also drank Gatorade. Quaker’s Food BusinessesQuaker’s food businesses were based on an assortment of brands in the categories of hot and ready-to-eat cereals, grain products, snack bars, maple syrups, pancake mixes and grits. Following Morrison’s restructuring, all product lines were profitable, but for the most part their growth rates were low (see Exhibits 8 and 9). None of Quaker’s current food brands had the potential to exceed $ 1 billion in sales in the foreseeable future:? Hot cereals Oats were Quaker’s original product, but by 1999, hot cereals represented only 13% of the company’s U.S. sales. Still oats were the company’s most profitable product line with operating contribution margins of almost 30%, and high returns on invested capital. Recently, sales had benefited from a growing consumer focus on healthy living and diet. Thus in 1999, Quaker’s hot cereal sales increased by 12. 5% compared with the compound annual sales growth of 1. 6% over the prior five years (see Exhibit 9). Quaker managers projected considerable volume growth in this category as the baby boomers grew older and became even more health conscious.In the eyes of consumers, the main drawbacks of oatmeal were its taste and inconvenience in preparation. New product development focused on these issues. Thus in 1999 Quaker introduced several new instant oatmeal flavors, including baked apple, French vanilla, and cinnamon roll. It was testing convenient single-serve microwave-ready cups designed to eliminate the need for a bowl in preparation. Other new hot oatmeal products included Dinosaur Eggs, which were targeted towards kids: when hot water was added to the instant oatmeal, the eggs hatched little dinosaurs.Ready-to-eat cereal In 1999, Quaker held the number four position in the intensely competitive ready-to-eat (RTE) cereal market category, trailing General Mills (33%), Kellogg (31%) and Kraft (16%). The business included three strong brands: Life and Cap’n Crunch, with more than $150 million in annual sales each, and the Toasted Oatmeal line, with sales of around $100 million. The balance of the segment was made up of bagged cereals: Sweet Crunch, Cocoa Blasts, and Marshmallow Safari. Real per-capita RTE cereal demand had decreased about 6% annually in the United States since 1994.Bucking this trend, Quaker’s RTE sales had increased by 1%-2% on average over the last fiv e years (see Exhibit 9). But, although Quaker’s top RTE cereal brands were competing effectively for share in this declining category, it was increasingly difficult to maintain their profitability. In this difficult segment of their business, Quaker management had decided to focus on efficiency. In 2000, the company announced a two-year restructuring plan designed to achieve significant cost savings by closing manufacturing facilities, consolidating manufacturing lines, and reconfiguring the RTE ereal distribution network. Golden Grain Quaker’s Golden Grain business produced flavored rice and pasta. Sales had been flat for the last five years (see Exhibit 9), but Quaker still held the number one position in flavored rice with a 37% market share, and the number two position in flavored pasta with a 33% market share. Competition was increasing in these markets, however: Mars was aggressively marketing flavored rice under its Uncle Ben’s brand, and General Mills wa s promoting flavored pasta under the Betty Crocker label.In response to these competitive moves, Quaker managers felt they might have to defend share by increasing expenditures on promotion and advertising or dropping 7 801-458 PepsiCo’s Bid for Quaker Oats (A) prices. The division contributed about $50 million in operating profits annually, and accounted for about 7% of Quaker’s 1999 operating income. Grain-based snacks Quaker’s Snack Foods division sold Chewy Granola Bars, Fruit & Oatmeal Bars, Rice Cakes, and new Crispy Mini-Rice Cakes. Its products accounted for 17. 4% of the snack/granola bar market, second only to Kellogg Co.Quaker’s Chewy Granola Bars led the $360 million granola bar category with a 39% market share. Over the past five years, Chewy’s growth in revenues averaged 8% annually. Quaker Fruit & Oatmeal Bars were number two to Kellogg’s NutriGrain in the cereal bar category. Quaker Rice Cakes had an impressive 66% market sha re in the $165 million rice cake category. The profits of the snack business had grown at 10% per year over the past three years, owing to the strength of demand for granola and cereal bars, and successful new product introductions (see Exhibit 9). Other U. S. nd international foods Quaker also sold Aunt Jemima syrup and pancake mixes, and through them held a 17% share of the $560 million syrup category and 21% of the $300 million pancake mix category. Quaker Grits dominated the $100 million corn grits market, with a 77% share. These were highly profitable brands, but they were in categories that promised little in the way of future growth. The Quaker’s international food businesses lacked critical mass. Its Latin American food sales were concentrated in Brazil, where sales had declined 17% in 1999, due to severe currency devaluation and economic recession.In Europe, Quaker had a small, growing RTE cereal business, which was concentrated in the United Kingdom and Scandinavia. Its Asian food business was minuscule, accounting for less than $25 million in sales in 1999. Potential Synergies Gatorade If the acquisition succeeded, PepsiCo’s management expected that Gatorade would dramatically enhance both the company’s strategic position and its economic performance. PepsiCo would become the clear category leader in noncarbonated beverages, a market, which was growing at 8%-9% annually, three times faster than the carbonated soft drink market.With Tropicana and Gatorade combined, PepsiCo would control a full quarter of this $23 billion market. One of the major benefits of combining the two companies’ operations would stem from distribution. Gatorade used a warehouse brokers’ distribution system to deliver beverages to convenience stores and supermarkets, whereas PepsiCo’s used a Direct Store Delivery (DSD) system. Each system worked best for different types of products and retail outlets. The DSD system was much more expens ive, usually amounting to 15%-20% of sales, but it gave PepsiCo direct control over product selection, in-store visibility and the size of product displays.Moreover, the labor and equipment costs of DSD were mostly fixed, hence the contribution margins of incremental unit sales were high. DSD worked well for high volume products (like colas), but it was not an economical way to supply lower volume products in large varieties) to supermarkets and convenience stores. As indicated, Quaker used a warehouse brokers’ distribution system. In the case of Gatorade, however, robust consumer demand acted to offset many of the disadvantages of selling through brokers, including lower margins, potential stock-outs and poor product presentation.As a fastmoving convenience store item, Gatorade was regularly allocated highly visible shelf space, almost entirely without slotting fees, which were customary in the retail business. Moreover, Gatorade’s new products and packages historical ly had won increased shelf space for the brand, instead of taking up the same shelf space and cannibalizing older products. 8 PepsiCo’s Bid for Quaker Oats (A) 801-458 The acquisition of Quaker would enable PepsiCo to distribute Tropicana’s nonrefrigerated juices, like Twister and Dole, through Gatorade’s warehouse brokers’ distribution system.The merger would thus considerably enhance company’s position in the $7 billion nonrefrigerated juice segment: According to CEO Enrico, PepsiCo would become the â€Å"category captain† of the nonrefrigerated juice aisle. PepsiCo’s managers estimated that using Gatorade’s warehouse distribution system for Tropicana juices could generate an incremental $400 million in sales and $45 million in operating profit by the year 2004. The PepsiCo management team also projected procurement savings of approximately $60 million annually by 2004 from reductions in the costs of raw materials and supplie s.Moreover, Gatorade used â€Å"hot-fill† production lines, which were similar to those used by PepsiCo’s Twister, Lipton teas, Frapuccino and SoBe beverages. If the two companies were combined, the team anticipated cost savings from better capacity utilization in manufacturing, warehouse, delivery and logistics systems. Collectively, these cost savings were expected to reach $65 million annually by 2004. Other potential benefits of the business combination were more difficult to quantify.For example, PepsiCo’s managers believed that Pepsi’s extensive cooler distribution network could be used to increase Gatorade’s penetration in vending machines, schools, and smaller convenience stores as well as other niche vending channels and food service accounts. PepsiCo CFO Indra Nooyi argued: â€Å"The combination of Gatorade and AquaFina in vending machines is a no-brainer. † Over the longer term, PepsiCo could accelerate Gatorade’s internati onal expansion by using the existing sales and distribution organizations of both Pepsi-Cola International and Frito-Lay International.Finally, the sports technology expertise of the Gatorade Sports Science Institute might be combined with the health research capabilities of the Tropicana Nutrition Center to develop products that would meet the refreshment and nutrition needs of beverage consumers in new ways. Snacks If the acquisition succeeded, PepsiCo’s managers planned to integrate the Quaker’s snack food division into its Frito-Lay unit, which was already the world’s leader in salty snacks. They saw a significant opportunity in the $2 billion snack bars market, which was growing at 9% annually.Frito-Lay was in the process of reengineering its direct store delivery (DSD) distribution system to handle more product units. PepsiCo’s management believed that distributing Quaker’s Chewy Granola and other snacks through Frito-Lay’s system coul d increase Quaker’s revenues from snacks by an incremental $200 million and its operating profit by $34 million by 2004. A nonquantifiable benefit of the acquisition would be that Quaker snacks were not salty. For the most part, its brands connoted nutrition and health more than good taste or fun.Quaker brands’ positioning would give Frito-Lay access to numerous consumption occasions, for example, in the morning, that its existing salty snack brands did not serve. According to Roger Enrico, PepsiCo CEO: â€Å"We see bars as an ideal way to â€Å"smuggle† nutrition into more daily diets. † Other foods If the acquisition succeeded, Quaker’s nonsnack food businesses would represent 10% of the combined company’s pro forma sales. Quaker Oatmeal, RTE cereals, Golden Grain, and Aunt Jemima businesses did not fit within PepsiCo’s convenience-food strategy, nor did they represent significant growth opportunities.Yet these businesses were highl y profitable, and were expected to generate substantial free cash flows and modest growth over the foreseeable future. Lastly, their unit volumes supported the scale of Quaker’s (hence Gatorade’s) warehouse brokers’ distribution system. One complexity of the proposed acquisition stemmed from the fact that PepsiCo’s management would only consider a stock-for-stock transaction. Under that transaction structure, the company would be able to account for the merger as a pooling-of-interests. With a pooling-of-interests 801-458 PepsiCo’s Bid for Quaker Oats (A) accounting treatment, no goodwill would be created, and neither PepsiCo’s nor Quaker’s shareholders would have to recognize a gain or loss as a result of the merger for income tax purposes. On the other hand, under pooling-of-interests accounting, PepsiCo was precluded from selling any significant assets of Quaker for two years following the merger. Thus, if the acquisition succeeded , PepsiCo would not be able to divest Quaker’s slower-growth food divisions for at least two years.By the same token, PepsiCo would not be able to repurchase shares in any significant quantity for two years. Both Pepsi and Quaker used share repurchases as their primary mode of returning cash to shareholders (see Exhibits 3 and 7). If the acquisition succeeded, Pepsi would have to change its cash distribution policy radically. Decision PepsiCo had to determine its initial offer before approaching the Quaker. The timing was critical, as several other companies were likely to be attracted by Quaker’s obvious strengths (see Tables A and B).At the same time, PepsiCo management had two major concerns. First, although Gatorade’s synergies and growth prospects provided a clear strategic rationale for the acquisition, Gatorade plus the snack business accounted for only about 40%-45% of Quaker’s sales and operating income. Food products like Quaker Oats, which Peps iCo was not directly interested in, constituted the bulk of Quaker’s business. Second, Quaker traded at 23 times the earnings, which was lower than PepsiCo, but still at a premium compared to other food manufacturers (see Exhibit 12).Depending on the price and the value of realized synergies, a stock-for-stock transaction could potentially dilute PepsiCo’s earnings and diminish earnings per share, at least in the short run. 10 PepsiCo’s Bid for Quaker Oats (A) 801-458 Sources This case was prepared using the following published sources: PepsiCo, Inc. 2000 Annual Report, available at www. pepsico. com/2000/annual2000. html PepsiCo, Inc. 1999 Annual Report, available at www. pepsico. com/1999/annual1999. html PepsiCo, Inc. 1998 Annual Report, available at www. pepsico. com/1998/content. shtml PepsiCo, Inc. 997 Annual Report, available at www. pepsico. com/1997/content. shtml PepsiCo, Inc. 1996 Annual Report, available at www. pepsico. com/1996/content. shtml The C oca-Cola Company 1999 Annual Report, available at www. cocacola. com/annualreport The Quaker Oats Company 1999 Annual Report, available at www. quakeroats. com The Quaker Oats Company 1998 Annual Report, available at www. quakeroats. com The Quaker Oats Company 1997 Annual Report, available at www. hoovers. com Form S-4, Registration Statement under the Securities Act of 1933, as filed by PepsiCo, Inc. ith SEC on 01/09/2001 â€Å"Pepsi Seeks $5B Credit Line,† Dow Jones News Service, 10/12/1994 â€Å"Analysts Dubious on Pepsi’s Interest in Quaker,† Dow Jones News Service, 10/12/1994 â€Å"Quaker Rises on Pepsi Report,† The Milwaukee Journal Sentinel, 11/30/1996 Michael J. Branca, â€Å"PEP: The Good, The Bad and The Ugly,† Lehman Brothers Equity Research, 11/03/2000 Cathleen Egan, â€Å"S. Bernstein Analyst Muses over a Pepsi-Quaker Merger,† Dow Jones News Service, 03/13/2000 Cathleen Egan, â€Å"Quaker in Talks to Sell Gatorade, Snapple to Pepsi,† Dow Jones News Service, 11/29/1996 David C.Nelson, David S. Bianco, â€Å"Quaker Oats: Is It in the Stock? ,† Credit Suisse First Boston Equity Research, 08/01/2000 Lauren R. Rubin, â€Å"Profitable Fit,† Barron’s, 12/11/2000 Patricia Sellers, â€Å"Can Coke and Pepsi Make Quaker Sweat? † Fortune, 07/10/1995 Janet Kidd Stewart, â€Å"Pepsi Chief Pooh-poohs Deal for Quaker Drinks,† Chicago Sun-Times, 01/25/1997 11 801-458 PepsiCo’s Bid for Quaker Oats (A) Exhibit 1 PepsiCo Financial Statements: Consolidated Statement of Income ($ millions, except per share data) 9/2/00a 1999 1998 1997 1996Net sales New PepsiCo Bottling operations Total net sales Costs and expenses Cost of sales SG&A Amortization of intangible assets Impairment and restructuring charge Total costs and expenses Operating profit New PepsiCo Bottling operations and equity investments Total operating profit Bottling equity income, net Gain on bottling transactions In terest expense Interest income Income before taxes Provision for income taxes Income from continuing operations Income from discontinued operations, net Net income Net income per share of common stock, $ 14,028 0 14,028 8,244 2,123 20,367 14,686 7,662 22,348 13,655 7,262 20,917 20,337 5,433 6,209 96 0 11,738 8,198 9,103 183 65 17,549 9,330 9,924 222 288 19,764 8,525 9,241 199 290 18,255 8,452 9,063 206 576 18,297 2,290 0 2,290 135 0 (156) 43 2,312 740 1,572 0 1,572 1. 09 2,765 53 2,818 83 1,000 (363) 118 3,656 1,606 2,050 0 2,050 1. 40 2,460 124 2,584 0 0 (395) 74 2,263 270 1,993 0 1,993 1. 35 2,252 410 2,662 0 0 (478) 125 2,309 818 1,491 651 2,142 1. 40 2,040 (565) 91 1,566 624 942 207 1,149 0. 73 Source: Company 10(K) and 10(Q) filings. aData for 36 weeks ended September 2, 2000. 2 PepsiCo’s Bid for Quaker Oats (A) 801-458 Exhibit 2 Assets PepsiCo Financial Statements: Consolidated Balance Sheet ($ millions) 9/2/00a 705 97 1,835 975 588 4,200 9,209 (3,928) 5,281 4,531 3,011 636 8,178 17,659 1999 964 92 1,704 899 514 4,173 8,816 (3,550) 5,266 4,735 2,846 531 8,112 17,551 1998 311 83 2,453 1,016 499 4,362 13,110 (5,792) 7,318 8,996 1,396 588 10,980 22,660 1997 1,928 955 2,150 732 486 6,251 11,294 (5,033) 6,261 5,855 1,201 533 7,589 20,101 1996 307 289 2,276 853 225 3,950 10,908 (4,822) 6,086 6,036 1,147 491 7,674 4,450 22,160Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Accumulated depreciation Net PP&E Intangible assets, net Investments in unconsolidated affiliates Other assets Net II&O Net assets of discontinued operations Total assets Liabilities and Shareholders' Equity Short-term borrowings Accounts payable and other current liabilities Income taxes payable Total current liabilities Long-term debt Other liabilities Deferred income taxes Common stock Capital in excess of par value Retained earni ngs Accumulated other comprehensive loss Less: Repurchased common shares, at cost Total shareholders' equity Total liabilities and shareholders' equity Average shares outstanding, millions 16 3,337 168 3,621 2,737 3,033 1,380 29 963 15,040 (1,219) (7,925) 6,888 17,659 1,446 233 3,399 156 3,788 2,812 2,861 1,209 29 1,081 14,066 (989) (7,306) 6,881 17,551 1,466 3,921 3,870 123 7,914 4,028 2,314 2,003 29 1,166 12,800 (1,059) (6,535) 6,401 22,660 1,480 0 3,617 640 4,257 4,946 2,265 1,697 29 1,314 11,567 (988) (4,986) 6,936 20,101 1,528 0 3,378 413 3,791 8,174 1,997 1,575 29 1,201 9,184 (768) (3,023) 6,623 22,160 1,564 Source: Company 10(K) and 10(Q) filings. aData for 36 weeks ended September 2, 2000. 13 801-458 PepsiCo’s Bid for Quaker Oats (A) Exhibit 3 PepsiCo Financial Statements: Consolidated Statement of Cash Flows ($ millions) 9/2/00a 1999 1998 1997 1996Cash Flows from Operating Activities Net income from continuing operations Adjustments to reconcile net income to net cas h provided by operating activities: Gain on bottling transactions Bottling equity income, net Depreciation and amortization Noncash portion of 1998 income tax benefit Noncash portion of restructuring charges Deferred income taxes Other noncash charges and credits, net Net change in operating working capital Net Cash Provided by Operating Activities Cash Flows from Investing Activities Capital spending Investments in unconsolidated affiliates Sales of businesses Sales of property, plant and equipment Short-term investments, by original maturity: More than three months – purchases More than three months – maturities Three months or less, net Other, net Net Cash Used for Investing Activities Cash Flows from Financing Activities Proceeds from issuances of long-term debt Payments of long-term debt Short-term borrowings, by original maturity: More than three months – proceeds More than three months – payments Three months or less, net Cash dividends paid Share repurchases Proceeds from exercises of stock options Other, net Net Cash Used for Financing Activities Net cash from discontinued operations Effect of Exchange Rate Changes Net (Decr. )/Incr. in Cash and Cash Equivalents Cash and Cash Equivalents – Beginning of year Cash and Cash Equivalents – End of period Source: Company 10(K) and 10(Q) filings. aData represents 36 weeks ended September 2, 2000. 1,572 2,050 1,993 1,491 942 0 (135) 642 0 0 138 191 (295) 2,113 (1,000) (83) 1,032 0 37 529 364 98 3,027 0 0 1,234 (259) 254 150 237 (398) 3,211 0 0 1,106 0 233 51 342 196 3,419 0 0 1,073 0 366 160 505 146 3,192 (574) (66) 0 0 (582) 577 0 (137) (782) (1,118) (430) 499 126 (2,025) 2,008 12 (144) (1,072) 1,405) (4,537) 17 134 (525) 584 839 (126) (5,019) (1,506) (119) 221 80 (92) 177 (735) (96) (2,070) (1,630) (75) 43 9 (115) 192 736 (214) (1,054) 108 (716) 103 (32) 375 (594) (1,238) 408 0 (1,586) 0 (4) (259) 964 705 3,480 (1,123) 3,691 (2,741) (2,856) (778) (1,285) 308 0 (1,304 ) 0 2 653 311 964 990 (2,277) 2,713 (417) 1,753 (757) (2,230) 415 0 190 0 1 (1,617) 1,928 311 0 (1,875) 146 (177) (1,269) (736) (2,459) 403 5 (5,962) 6,236 (2) 1,621 307 1,928 1,772 (1,432) 740 (1,873) 89 (675) (1,651) 323 (9) (2,716) 605 (5) 22 285 307 14 801-458 -15- Exhibit 4 PepsiCo Stock Price History PEP Historical Price Performance, October 31, 1997-October 4, 2000 Oct 4: Last close $45. 125 50 45 40 35 30Mar 8: 52 week low of $30. 50 25 Jul-98 Jul-99 Jan-98 Apr-98 Jun-98 Oct-98 Jan-99 Apr-99 Jun-99 Oct-99 Jan-00 Feb-00 Apr-00 Jun-00 Jul-00 Nov-97 Dec-97 Feb-98 Mar-98 Feb-99 Mar-99 Mar-00 Aug-00 Aug-99 Sep-99 Nov-99 May-99 Dec-99 May-00 Aug-98 Nov-98 May-98 Source: Prepared by casewriter based on CRSP data. Sep-98 Dec-98 Sep-00 Oct-00 20 801-458 PepsiCo's Bid for Quaker Oats (A) Exhibit 5 Quaker Financial Statements: Consolidated Statement of Income ($ millions, except per share data) 9/30/00* Net sales Cost of goods sold Gross Profit SG&A Impairment and restructuring (gain) or charge Interest expense Interest income Foreign exchange loss, net Income before taxesProvision (benefit) for income taxes Net income Preferred dividends, net Net income available for common Net income per share of common stock, $ 4,045 1,805 2,240 1,551 172 40 1999 4,725 2,137 2,588 1,904 (2) 62 (12) 18 618 163 455 4 451 3. 36 1998 4,843 2,374 2,468 1,873 129 70 (11) 12 397 112 285 5 280 2. 04 1997 5,016 2,565 2,451 1,939 1,486 86 (7) 11 (1,064) (133) (931) 4 (934) (6. 80) 1996 5,199 2,808 2,392 1,981 (113) 107 (7) 9 416 168 248 4 244 1. 80 477 165 312 3 309 2. 34 Source: Company 10(K) and 10(Q) filings. aData for nine months ended September 30, 2000. 16 PepsiCo's Bid for Quaker Oats (A) 801-458 Exhibit 6 Quaker Financial Statements: Consolidated Balance Sheet ($ millions)Assets Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Other current assets Total current assets Property, plant and equipment Accumulated depreciation N et PP Intangible assets, net Other assets Total assets Liabilities and Shareholders' Equity Short-term borrowings Accounts payable Other current liabilities Total current liabilities Long-term debt Other liabilities Deferred income taxes Preferred stock Deferred compensation Tresury preferred stock Total preferred stock, net Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Deferred compensation Less: Repurchased common shares, at cost Total shareholders' equity Total liabilities and shareholders' equity Average shares outstanding, millions /30/00* 111 126 391 287 234 1,149 1,872 (797) 1,075 231 57 288 2,512 89 258 648 995 672 510 0 100 (27) (47) 25 840 126 1,051 (108) (22) (1,578) 310 2,512 132 1999 283 0 254 266 193 997 1,852 (745) 1,107 237 56 293 2,396 155 214 570 938 715 523 0 100 (39) (39) 22 840 101 855 (95) (46) (1,457) 197 2,396 134 1998 327 28 283 261 216 1,115 1,819 (749) 1,070 246 79 325 2,510 137 168 704 1,009 795 533 0 1 00 (48) (30) 22 840 79 556 (80) (68) (1,176) 151 2,510 137 1997 84 0 306 256 487 1,133 1,913 (748) 1,165 351 49 400 2,697 169 191 586 946 888 579 36 100 (57) (22) 21 840 29 431 (82) (91) (899) 228 2,697 137 1996 111 0 295 275 209 890 1,943 (743) 1,200 2,237 69 2,306 4,394 568 210 576 1,355 994 559 238 100 (65) (16) 19 840 0 1,521 (68) (103) (960) 1,230 4,394 135 Source: Company 10(K) and 10(Q) filings. Data for nine months ended September 30, 2000. 17 801-458 PepsiCo's Bid for Quaker Oats (A) Exhibit 7 Quaker Financial Statements: Consolidated Statement of Cash flows ($ millions) 9/30/00* 1999 455 124 14 (5) 4 0 13 (38) 32 31 631 (222) 14 (185) 219 14 0 (160) (156) 34 1 (96) 83 (373) (9) (516) 2 (44) 327 283 1998 285 133 (31) (27) 90 38 12 (41) 32 23 514 (205) 266 (166) 143 8 240 287 (160) (17) 2 (109) 112 (377) (8) (557) (1) 242 84 327 1997 (931) 161 (12) 1,151 66 40 42 (91) 20 43 490 (216) 300 0 0 0 0 84 (159) (453) 8 (54) 121 (50) (6) (593) (7) (26) 111 84 1996 248 201 14 (82) 23 0 29 (70) 22 27 410 (243) 174 0 0 0 0 (68) (157) (125) 2 (78) 31 0 (6) (331) 6 17 93 111Cash Flows from Operating Activities Net income from continuing operations Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes (Gains) losses on divestitures, net Restructuring charges** Asset impairment losses Loss on disposition of property and equipment Net change in operating working capital Change in deferred compensation Other items Net Cash Provided by Operating Activities Cash Flows from Investing Activities Additions to property, plant and equipment Business divestitures, net of tax Purchase of marketable securities Proceeds from sale of marketable securities Proceeds from sale of PP Capial gains tax recovery Net Cash Used for Investing Activities Cash Flows from Financing Activities Cash dividends paid Change in short-term debt Proceeds from issuances of long-term debt Reduction of long-term debt Issuance of common treasury stock Repurchases of common stock Repurchases of preferred stock Net Cash Used for Financing Activities Effect of Exchange Rate Changes Net (Decr. )/Incr. in Cash and Cash Equivalents Cash and Cash Equivalents – Beginning of year Cash and Cash Equivalents – End of period 312 99 4 0 177 0 2 (132) 35 15 512 (199) 0 (354) 232 5 0 (316) (115) (25) 1 (84) 105 (236) (9) (364) (4) (172) 283 111 Source: Company 10(K) and 10(Q) filings. a Data for nine months ended September 30, 2000. bThe 2000 number represents the sum of restructuring charges, asset impairments and losses (gains) on divestiture. 18 801-458 -19- Exhibit 8 Quaker Oats Operating Segment Information (dollars in millions, except per share data) bYear Ended December 31 1999 Net Sales a 1998 1997 Operating Income (Loss) 1999 1998 1997 $2,359. 5 308. 4 215. 4 2,883. 3 1,502. 3 229. 1 103. 8 1,835. 2 4,718. 5 6. 7 $4,725. 2 $2,274. 1 372. 9 202. 9 2,849. 9 $399. 8 26. 2 21. 1 447. 1 253. 9 16. 5 (7 . 3) 263. 1 710. 2 -$710. 2 $2,287. 8 371. 4 205. 7 2,864. 9 1,183. 3 232. 2 103. 0 1,518. 5 4,383. 4 632. 3 $5,015. 7 $369. 8 28. 2 (1. 2) 396. 8 214. 9 25. 6 (7. 4) 233. 1 629. 9 (2. 4) $627. 5 $390. 3 34. 0 (9. 9) 414. 4 182. 7 19. 3 (15. 0) 187. 0 601. 4 (34. 6) $566. 8 1,338. 2 267. 7 103. 1 1,709. 0 4,558. 9 283. 6 $4,842. 5 Foods: U. S. and Canadian Latin American Other c Total Foods Beverages: U. S. nd Canadian Latin American Other c Total Beverages Total Ongoing Businesses Total Divested Businesses d Total Sales/Operating Income Less: (Gains) losses on divestitures, restructuring charges, asset impairments and other–net e (2. 3) 25. 9 50. 2 18. 1 618. 3 163. 3 $455. 0 $3. 36 $3. 23 128. 5 31. 9 58. 9 11. 6 396. 6 112. 1 $284. 5 $2. 04 $1. 97 1,491. 1 50. 1 79. 1 10. 8 (1,064. 3) (133. 4) ($930. 9) ($6. 80) ($6. 80) General corporate expenses Interest expense–net Foreign exchange loss–net Income (Loss) before income taxes Provision (Benefit) for income t axes f Net Income (Loss) Per Common Share: Net income (loss)e Net income (loss)–diluted 801-458 -20- Exhibit 8 (continued) (dollars in millions) Year Ended December 31 1999 Identifiable Assets 1998 1997 1999Capital Expenditures Net of Depreciation 1998 1997 Foods: U. S. and Canadian Latin American Other c Total Foods Beverages: U. S. and Canadian Latin American Other c Total Beverages Total Ongoing Businesses Total Divested Businesses g Total Operating Segments Corporateh Total Consolidated $1,124. 6 174. 0 110. 1 1,408. 7 522. 7 105. 4 79. 6 707. 7 2,116. 4 0. 0 2,116. 4 279. 8 $2,396. 2 464. 2 94. 6 109. 5 668. 3 2,115. 1 37. 5 2,152. 6 357. 7 $2,510. 3 364. 5 81. 9 98. 2 544. 6 1,845. 4 335. 9 2,181. 3 515. 7 $2,697. 0 69. 8 20. 4 1. 7 91. 9 99. 5 0. 0 99. 5 (0. 9) $98. 6 $1,187. 0 167. 7 92. 1 1,446. 8 $1,056. 9 122. 4 121. 5 1,300. 8 $3. 7 3. 7 0. 2 7. 6 $37. 5 6. 5 (0. ) 43. 4 26. 1 6. 3 0. 8 33. 2 76. 6 (3. 5) 73. 1 (0. 9) $72. 2 $7. 2 9. 7 12. 3 29. 2 26. 4 (0. 9) 20. 0 45. 5 74. 7 (18. 7) 56. 0 (1. 7) $54. 3 Source: Company financial statements and casewriter calculations. aIntersegment sales are not material. bOperating results exclude restructuring and asset impairment charges, gains and losses on divestitures and certain other expenses not allocated to operating segments such as income taxes, general corporate expenses and financing costs. cOther includes European and Asia/Pacific businesses. d1999 includes net sales and operating results (through the divestiture date) for the Brazilian pasta business. 998 includes net sales and operating results (through the divestiture date) for the Ardmore Farms, Continental Coffee, Nile Spice and Liqui-Dri businesses and the business divested in 1999. 1997 includes net sales and operating results (through the divestiture date) for the Snapple beverages and certain food service businesses and the businesses divested in 1999 and 1998. e1999 includes pretax restructuring charges of $12. 7 million, or $0. 06 per share, a pretax divestiture gain of $5. 1 million, or $0. 03 per share, and pretax adjustments of $9. 9 million, or $0. 04 per share, to reduce prior restructuring and divestiture reserves. 1998 includes pretax restructuring charges of $89. 7 million, or $0. 8 per share, pretax asset impairment losses of $38. 1 million, or $0. 18 per share, and a combined pretax divestiture loss of $0. 7 million, or a gain of $0. 20 per share, due to certain tax benefits. 1997 includes pretax restructuring charges of $65. 9 million, or $0. 27 per share, a pretax net charge of $4. 8 million, or $0. 02 per share, for an asset impairment loss partly offset by a cash litigation settlement, and a combined pretax loss of $1. 42 billion, or $8. 41 per share, for business divestitures. f1999 includes reductions in the provision for income taxes of $59. 3 million, or $0. 44 per share, related to previously recorded tax accruals and tax assets. Includes the following Divested Businesses: in 1999, the Bra zilian pasta business in 1998 Ardmore Farms, Continental Coffee, Nile Spice, Liqui-Dri and the business divested in 1999; in 1997, Snapple, certain food service businesses and the businesses divested in 1999 and 1998. hIncludes corporate cash and cash equivalents, short-term investments and miscellaneous receivables and investments. PepsiCo's Bid for Quaker Oats (A) 801-458 Exhibit 9 Quaker Oats Company Operations Summary 1994-1999 Annual Sales (dollars in millions) 1994 U. S. and Canadian Gatorade a International Gatorade Total Beverages U. S. Hot Cereals U. S. Ready-to-Eat Cereals Golden Grain Grain-based Snacks Other U. S. nd Canadian Foods Latin American Foods European and Asian Foods Total Foods Total Sales $908 269 1,177 416 679 334 275 483 301 233 2,721 $3,898 1995 $1,040 308 1,348 402 665 324 298 505 319 210 2,723 $4,071 1996 $1,095 283 1,378 440 626 316 285 518 345 207 2,737 $4,115 1997 $1,183 335 1,518 462 693 343 269 521 371 208 2,867 $4,385 1998 $1,338 371 1,709 431 712 341 291 500 373 203 2,851 $4,560 1999 $1,502 333 1,835 485 725 344 305 501 308 215 2,883 $4,718 CAGR 10. 6% 4. 4% 9. 3% 3. 1% 1. 3% 0. 6% 2. 1% 0. 7% 0. 5% -1. 6% 1. 2% 3. 9% Distribution of Annual Sales (%) 1994 U. S. and Canadian Gatorade a International Gatorade Total Beverages U. S. Hot Cereals U. S. Ready-to-Eat Cereals Golden Grain Grain-based Snacks Other U. S. nd Canadian Foods Latin American Foods European and Asian Foods Total Foods Total Sales 23% 7% 30% 11% 17% 9% 7% 12% 8% 6% 70% 100% 1995 26% 8% 33% 10% 16% 8% 7% 12% 8% 5% 67% 100% 1996 27% 7% 33% 11% 15% 8% 7% 13% 8% 5% 67% 100% 1997 27% 8% 35% 11% 16% 8% 6% 12% 8% 5% 65% 100% 1998 29% 8% 37% 9% 16% 7% 6% 11% 8% 4% 63% 100% 1999 32% 7% 39% 10% 15% 7% 6% 11% 7% 5% 61% 100% Source: Company financial statements. aIncludes Europe, Asia-Pacific and Latin America. 21 801-458 -22- Exhibit 10 Quaker Oats Stock Price History OAT Historical Price Performance, October 31, 1997-October 4, 2000 90 Oct 4: Last close $76. 0625 80 70 60 50 40 Mar 14: 52 week low of $45. 9375 Jul-98 Jul-99 Jan-98 Apr-98 Jun-98 Oct-98 Jan-99 Apr-99 Jun-99 Oct-99 Jan-00Apr-00 Jun-00 Jul-00 Feb-98 Mar-98 Feb-99 Mar-99 Feb-00 Nov-97 Dec-97 Aug-98 Sep-98 Nov-98 Dec-98 Aug-99 Sep-99 Nov-99 Dec-99 Mar-00 Aug-00 May-99 May-00 Source: Prepared by casewriter based on CRSP data. May-98 Sep-00 Oct-00 30 PepsiCo's Bid for Quaker Oats (A) 801-458 Exhibit 11 PepsiCo PepsiCo and Quaker Oats: Selected Ratios 1996-2000 36 Wks. 00 39% 44% 16% 16% 32% a 1999 40% 45% 14% 15% 44% -2% 26% 40% 64% 53% 12% 30% 1998 42% 44% 12% 17% 12% 0% 33% 49% 82% 35% 12% 31% 1997 41% 44% 13% 16% 35% -4% 30% 36% 62% 54% 13% 21% 1996 42% 45% 10% COGS/Sales SGA/Sales Operating Profit/Sales New Pepsi Operating Profit/New Pepsi Sales Tax Rate NWC (excl.Cash ST Inv and ST Debt)/Sales a Net PPE/Sales a Net II/Sales a Invested Capital/Sales Shareholders Equity/Invested Capital Return on Invested Capital d Return on Equity c 40% -2% 30% 38% 66% 50% 9% 14% -1% 26% 40% 66% 52% 17% 23% Quaker Oats, Inc. COGS/Sales SGA/Sales b Operating Profit/Sales Tax Rate NWC (excl. Cash ST Inv and ST Debt)/Sales a Net PPE/Sales a Net II/Sales a Invested Capital/Sales Shareholders Equity/Invested Capital Return on Invested Capital d Return on Equity c a 9 Mos. 00 45% 38% 13% 35% 0% 20% 5% 25% 23% 33% 100% 1999 45% 40% 15% 26% -2% 23% 6% 28% 15% 38% 229% 1998 49% 39% 10% 28% -2% 22% 7% 26% 12% 26% 185% 1997 51% 39% -19% 13% 5% 23% 8% 37% 12% -46% -410% 1996 54% 38% 10% 40% 0% 23% 44% 67% 35% 9% 20% Source: Company financial statements. aAnnualized. Quaker Operating Profit = Gross Profit – SG – Impairment, consistent with PepsiCo’s definition. cReturn on Invested Capital = [Operating Profit * (1 – Tax Rate)]/Invested Capital. dReturn on Equity = Net Income from Continuing Operations/Shareholders’ Equity. 23 801-458 -24- Exhibit 12 Quaker Oats: Comparable Food and Beverage Companies Source: Company Annual Reports, Hoover’s Online Bu siness Network. aSara Lee financial information includes RYA/Monarch, the sale of which is scheduled to close in second quarter of fiscal 2001. bH. J. Heinz EBIT includes $464. 6 million gain on the sale of Weight Watchers. Hershey EBIT includes $243. 8 million gain on the sale of U. S. pasta business. Kellogg EBIT incorporates $244. million in restructuring charges and equipment write-offs. PepsiCo EBIT includes $1,000,000 gain on bottling transactions. cAverage diluted shares outstanding, in millions of per-share calculations, including stock options, ESOP and non-vested awards. dCommon Stock price data for 52 weeks prior to October 4, 2000, includes Danone ADR’s traded at NYSE. eP/E calculated as Closing Common Stock price divided by EPS for the last full fiscal year. fMarket Capitalization calculated as the Closing Common Stock price times the average diluted shares outstanding. Using last-available diluted shares outstanding would not change the calculation significantly . PepsiCo's Bid for Quaker Oats (A) 801-458 Exhibit 13