Criminology Theories-Differential Association and Strain Theory

In criminology, theories play an important role especially in understanding the settings, motivations, assets, behaviors and actions of criminals. These theories serve as their guidelines in order to detect and sometimes read the plans of their enemies. Unfortunately, these theories are not one hundred percent accurate, however, learning these aspects are still essential. Differential Association and Strain Theories are most commonly used in the field of criminology. These theories aim to explain the totality and the instinctive or social development of criminal ideation in a person.The theories mentioned are extremely necessary for authorities to understand and to be familiar with. Criminal Theories – Differential Association Theory vs. Strain Theory Theories in criminology tend to be unclear and lacking in justifiable broadness. The lack of clarity can sometimes end up in apparent inconsistencies, although more attention to the structure of a scientific theory and its requir ements might reveal more agreement among theorists than now recognized. In fact, rarely do available theories offer guidance that does not require heroic leaps of conjecture.Practicality is not a requirement of a valid theory since theories might be void but still of use. However, condition for a theory to be considered certifiable is none other than practicality. Criminology is the scientific study of crime; hence, theories need to have adequate basis in order to prove true and be considered useful. Another denotation of the term Criminology is the study of law making, law breaking and the response to law breaking. This definition of criminology is also a useful way to categorize the theories.Theories of law breaking are the most common and essential in the field of Criminology. The questions that usually come out is â€Å"why do people commit crime? † or â€Å"What makes countries more prone to crime than other? † These theories serve as the guide of practice and a p rotocol to assist the implementation of law and reading of crimes (Vito, Maahs & Holmes, 2007 p. 14). The research paper aims to describe specific theories and analyze its over-all concept as well as comparisons. The main theories highlighted in this paper are Differential Association Theory and Strain Theory.These theories are explained and scrutinized in order to obtain various points of essentials and utilize it in order to come up with a critical analysis of the said theories. The following are questions that are considered objectives of this research work. a. What are the theories of Differential Association Theory and Strain Theory? Discuss the concepts embedded in each theory and obtain the important data present. b. What are the comparisons and differentiations of the following theories? What are the important points to be noted in each theory?The research study does not deal with any under topics except for these theories. By the end of the paper, a conclusion regarding the over-all study is present. Differential Association Theory The Differential Theory has been brought by Edwin Sutherland, and this has been considered as one of the best constitutions in the field of criminology. The evolution of criminology and formation of this theory have started because of this man’s desire to have a new direction in the field of criminology. He has rejected the biological determinism and the extreme individualism of psychiatry, as well as economic explanations of crime.The need for money or resources is never a motivating factor for a person to commit a crime. Due to this curious out-searching, he has arrived in the theory of Differential Association Theory. Another term for this theory is the â€Å"Social Learning Theory†, wherein psycho-cognitive and analytic observations are implemented. Different association proposes that criminal associations and normative conflict vary across community types; hence, this variation is linked in the rationale for varying crime rates (Hoffman 2003). The concept of this theory states that delinquency is learned just as all other forms of behavior are learned.It implies that Different Association Theories are those associated in various factors such as changing community, the individual itself, the environment and family upbringing. These are the things that influence the person’s behavioral concept, and if not guided properly, criminal acts may be produced. Sutherland (1947) proposed that crime and delinquency are learned in small-group contexts through the acquisition of a preponderance of messages defining law-violating behavior as acceptable or appropriate. (Dennis & Neff, 2007)Moreover, this theory emphasizes on the genetic origins of criminal behavior, thus implying biological initiatives in crime control. In contrast to both classical and biological theories, Differential Association Theory poses no obvious threats to the humane treatment of those identified as criminals (Hoff man 2003). The conditions of this theory also suggests that the more frequent, intense, salient, and enduring a youth's exposure to prodelinquency definitions, the more likely they will be to adopt these definitions and to use them to rationalize or justify engaging in delinquent behavior.Delinquency stems from a positive identification with law-violating behavior learned in interaction within primary groups, which is an exact opposite of strain-induced negative emotions (Dennis & Neff, 2007). Testing Theory Validity According to the journal of Van Gundy and Rebellon (2006), differential association theory can be used in tracing out the behavior of crime acts in an individual. A test has been conducted in teenagers who are into use of Marijuana. Specifically, among respondents who reported using other illicit drugs in 1980, only 2.8% simultaneously reported that they had abstained from the use of marijuana in the same year.The researchers gathered these individuals and they obtain a n interview as well as drug sample from this group of people. The focus is too asses the origins of criminal behavior guided by the conditions of marijuana usage. According to the respondents who have been reported using drugs other than marijuana, the presence of moral attachments, commitments or involvements are either fragile, low or absent.It has been noted that these individuals have higher association with substance-using peers than do those who report abstaining from such drugs. These results suggest that variables derived from existing delinquency theory are capable of explaining about fifty percent of the relationship between prior marijuana use and other illicit drug use. In terms of differential association, the results obtained from the two controlled groups lies differently. The presence of reinforcement agents (peers, drug-using community, etc) and negative events are also being examined if these factors can directly affect the said behavior.It has been noted that the individuals who have been using other drugs aside from marijuana have intense negative feelings towards family, difficulties and other personal areas of their lives. On the other hand, the other group also manifests negative feelings; however, the difference is the degree and coping towards these causations. In the end of their experiment, the criminal behavior that develops in a person is not brought by economical needs or the problems itself but with the environment present around the client. Strain Theory Strain theory is another proposed subject in this argument.The theory of Strain suggests that a key motivational factor in delinquency and misconduct is strain, which is some perceived or actual state of discomfort. The strain of pursuing goals within diverse opportunity structures may lead to adaptations such as crime, delinquency, and other deviant behavior (Hoffman 2003). One example in this statement shows when a teenager desires for money, since the things that money can bu y–nice clothes, CDs, movies, and so on—and the lack of money causes inability to obtain such wants. This event now produces strain in the part of the teenager.This strain in turn leads to attempts to resolve the problem through theft (a direct attempt to resolve financial insolvency) or alcohol and drug use (an indirect attempt to deal with the shame of insolvency). Either way, the theory of strain works by the induction of psychological strain itself (Apel et. Al 2003). Another definition provided by Dennis and Neff (2007) supports the claims of Apel (2003). General strain theory (GST) suggests that delinquency results from a youth's emotional response to negative relationships with others.The negative relationships embody situations in which a youth fails to obtain a valued goal, loses something of value, or is presented with some type of noxious or aversive stimuli. Thus, a juvenile who is failing in school, or who loses contact with a parent due to abandonment or d eath, or who experiences some type of victimization can be said to be experiencing strain. The emotion of anger or frustration resulting from the experience of strain, rather than the strain itself, leads the youth to engage in law-violating behavior.The main point in this statement is the occurrence of strain is not directly the valued point of origin in the case of Stain theory. The reason behind is the power of a person to control or manipulate the situation is still present; however, if in case the person breaks down because of this strain experience, that is the time wherein a person manifests valiant and law-breaking actions. Moreover, different types of delinquency or crime results from different forms of adaptation to anomie-induced strain. Property crimes, such as theft, represented innovative adaptations.Using alcohol and other drugs, on the other hand, could be thought of as a retreatist mode of adaptation; i. e. , behavior that not only symbolically rejects the instituti onalized means to achieve a positive goal, but also rejects the goal itself (Dennis & Joan, 2007). Strain comes from various origins depending on the case situation of an individual. Not every case of a person entitles him in a single strain response but rather, multi-evident causations. Using alcohol and drugs, for example, can be considered forms of â€Å"self-medication,† which may provide a sense of relief.Often than not, financially or resource depressed societies are more likely to be populated by â€Å"strained† individuals. In this case, these communities suffer from more blocked opportunity structures. Hence these communities tend to create an atmosphere conducive to anger and frustration, key antecedents to delinquent behavior. Such kind of community breeds crime, as according to the theory, and acts of wrongdoing. Differential Association Theory vs. Strain Theory Differential theory by definition stated above originates from the intrinsic characteristic of a person, influenced by the individual’s environment and molding assists.The criminal behavior is primarily because of influence of those individuals who are also linked in the same act of criminal acts. A person learns to commit crimes little by little until a person commits it without any hesitation. The psychosocial environment greatly suggests such conditioners as the primary causation of crimes. The raise of crime rates are because of the instilled negative thoughts, inappropriate guidance and lack of attachments, commitments or relationships. On the other hand, Strain theory talks about the causation of crimes not directly because of strain but due to failure in tolerating these kinds of stimuli.They are both result of negative impregnation of environmental pressures that in the end leads the client vulnerable to breakdown. The theory suggests that a person performs acts of delinquency not because of attachments or relationships but rather because of the pressuring strai n. The crime rates, according to this theory, justify the increased criminal persona in places wherein financial depression or extreme difficulties are present. The last resort of the individuals is nothing but to commit crimes.In an example given, a person is ready to kill just to get the material possession that the person wants to acquire. We can determine some connections between the two since both of them are etiological conceptualizations of criminal behavior. In the case wherein, a depressed community is surrounding a person, significantly full of drug addicts and negative and influencers, a person still strives to obtain moral life. Let us say that this person has a good job as well as good family relationships. The strain in his job is greatly pressuring his everyday living.Fortunately, the person can still withstand such condition. However, because of the influence brought by the environment, such as the person’s peers, he begins declining his work productivity. Giv en a situation wherein his brothers are hospitalized and he just got fired from work, he badly needs money. In this case, the person breaks down and resort to theft. The situation calls forth occurrence of the two theories in simultaneous condition. The surrounding environment of the client influences the breeding of negative emotions, which cause the person to have fragile stand in his principles.The strain theory becomes evident when the strain of loosing a job and need for money enters in. In the end of the discussion, the person commits the crime based on influential factors as well as straining. Conclusion In conclusion, of this paper, the answer to the proposed questions in the introduction is properly addressed in the body of the research paper. The significance of such theory in criminology is the substantial or even estimated estimate analysis of the person’s criminal behavior origin.In such cases, the authorities require to learn such principles because this can hel p understand the motives, intentions and plans of the whole crime actions as well as the criminal itself. However, we should not be limited in these two theories alone since, human beings vary the same as their intentions and modes of focus. These theories are not applicable in other cases, therefore the best thing to do is to understand the whole concept of theory and at the same time train the assessment skills in order to avoid theoretical falsehood.

Kenneth Slessor Speech: Critical studies of Texts Essay

†The gulls go down the body dies and rots, and time flows past them like the hundred yachts.† Kenneth Slessor, a renowned poet and journalist was born on the 27th of March 1901 in Orange, New South Wales. Throughout his eventful life, Slessor was able to compose an array of poems through which he was able to convey his experiences through life. But why exactly are his poems still considered so relevant and significant in this era? Firstly, Slessor’s poems were widely recognised for their ability to accurately depict his understanding of humanity, life, death and change. Across his oeuvre he conveys a unique yet consistent view of the meaning of life and death. He presents this through the use of poetic techniques such as metaphors, repetition, similes and alliteration which are evident through all of his poems. Good morning/afternoon Mr Younes and Yr. 12. The poems â€Å"Out of Time† and â€Å"Beach Burial† are both compositions of Slessor’s later work that are considered memorable and influential by many of his critics. They are said to reveal his interaction with the environment and clearly depict his immediate emotions. I am sure that you will all agree that Slessor’s work is significant in today’s era because of his ability to cleverly and creatively use features to inter-relate the true essence of his poems. The poem ‘Out of time’ vividly initiates the essence of life and humanity as being primarily dominated and controlled by Time. Many critical analysis of Slessor’s work convey that his perception of time is that of a mystery, something that cannot be clearly defined and comprehended. His personal connection with time is deluded with the fact that it can be both a destructive force and a pleasure found in a moment. The adamant and unstoppable nature of time; causes it to solely control and thus highlight the vulnerability of the human existence. As observed in the first sonnet the destructive nature of time is expressed through the lines â€Å"Or time, the bony knife, it runs me through†¦time takes me, drills me, drives through bone and vein.† Metaphorically, time is referred to as a knife which is usually related with the feelings of betrayal and deceit. Thus, Slessor finds that time is a masked identity victimising humanity the ‘faceless host’ and moving on without hesitation or remorse. Similarly, Slessor’s experience as a war correspondent in El Alamein observing â€Å"†¦Convoys of dead soldiers† rolling to shore led to the inspiration of composing the elegy ‘Beach Burial.’ He explores the nature of time and the unfortunate occurrence of war. The intense and futile nature of war educates Slessor to conclude that time is the conqueror that withholds the universal fate of death. Have you ever felt invisible in a crowded area? Well, this is precisely what Slessor conveys death to be like. Death is commonly interpreted as the termination of life, a force that has an eternal end. Once our time is up we have no link to this world but are rather taken up to the â€Å"Other front.† Slessor clearly states that once death has its grasp, humanity will lose its identity as they will eventually be lost in a memory taken by time. This is reinforced in â€Å"Beach Burial† in the lines â€Å"Unknown seaman- the ghostly pencil wavers and fades†¦the wet season has washed their inscriptions†¦Ã¢â‚¬  The styles of Slessor’s poems are unique yet there is still a relative consistency evident throughout his oeuvre. In the poem â€Å"Out of Time† Slessor presents the poem in a cyclical pattern that imitates the nature of time. The last line of each sonnet is the beginning line of the next thus indicating a link throughout the poem. Slessor makes this style distinctive by beginning the poem with â€Å"I saw Time flowing like the hundred yachts† and ending with â€Å"And Time flows past them like a hundred Yachts.† Wouldn’t you agree that his use of repetition and personification of time clearly expresses the main value of this poem? Through these techniques Slessor cleverly portrays that time is a continuous force that will never come to an end but will always have its command over humanities life. On the contrary, the style of the poem â€Å"Beach Burial† is that of an elegy. By presenting his poem in this style, Slessor conveys the empathy that he felt as a result of his experience in El Alamein. The use of onomatopoeic reference â€Å"†¦The sob and clubbing of gunfire†¦Ã¢â‚¬  accurately depicts the futility and harsh nature of war. He then primarily expresses that death has the last say because in the end all of humanity will ultimately be untied by death through fate. This is portrayed in the line â€Å"Whether as enemies they fought†¦the sand joins them together.† A common technique that I am sure you all are aware off is that of water imagery. Water like time is a vast force that is eternal in nature, its ability to be both rough and calm precisely reflects the nature of time and the gloominess of death. The imagery of water is commonly used throughout Slessor’s oeuvre. It is reinforced in the stanzas of ‘Out of Time’ in the lines â€Å"So time, the wave, enfolds me in its bed†¦.water bends†¦the tide goes over.† And in â€Å"Beach Burial† in the lines â€Å"†¦They sway and wander in the waters far under†¦Ã¢â‚¬  As you may have noticed, the structural integrity of Slessor’s work can be seen as a solid representation of the values that he so intricately portrays. Both â€Å"Out of Time† and â€Å"Beach Burial† are composed with completely different structures yet still effectively portray the values of each poem. Composed of an ensemble of three quatrains and a couplet forming a sonnet, â€Å"Out of Time† is characterised by three sonnets. In each of these sonnets Slessor expresses a different aspect of time, linking them together to form a poem that is similar to that of an anecdote. However, the irregularity of the lines in â€Å"Beach Burial† mimics the movement of waves creating an atmosphere and mood that is both solemn and humble. Don’t you agree that this creative use of imagery precisely delineates the depth of Slessor’s emotions? Hopefully I have given you a thorough insight as to why Slessor’s poems are still relevant and significant today. It is evident to see that the themes and values that he expresses through his poems are off a universal significance and his ability to convey them through poetic devices accurately depicts the central notions of his poems. Thus, readers such as us and even critics are able to relate and recognise the articulate nature of his work and for this reason Slessor’s work will continue to be of a great significance.

Project Report on Dabur Company Essay

Declaration By Candidate I wish to state that the work embodied in this project titled â€Å"Financial Modeling Of Dabur† forms my own contribution to management carried out at Vivekanand Education Society’s Institute Of Management Studies & Research Chembur, Mumbaiunder the guidance of Mr.DheerajVaidya, Director, Corporate Bridge Consultancy Pvt. Ltd. Wherever references have been made to intellectual properties of any individuals/ institute/ government/ private/ public bodies/ universities, research paper, text books, reference books, archives of newspapers, corporate, individuals, and any other source of intellectual properties viz., speeches, quotations, conference proceedings, extracts from the websites etc they have been clearly indicated, duly acknowledged and included in the Bibliography. Signature of the candidate Acknowledgment I would like to express my profound gratitude to all those who have been instrumental in the preparation of my project report. On the onset, I would like to thank the organization â€Å"Corporate Bridge Consultancy Pvt.Ltd.† for providing me the opportunity to undertake this summer internship and allowing me to explore the area of valuation and financial modeling, which was totally new for me and which would prove out to be very beneficial in my future assignments, studies and career. I wish to place on records, my deep sense of gratitude for my project guide, Mr.DheerajVaidya, director of corporate bridge consultancy pvt. Ltd. for continuous guidance and encouragement provided to me throughout my internship period. Table Of Contents SR. NO.| CONTENTS| PAGE NO.| 1| Executive Summary| | 2| About Corporate Bridge | | 3| Objective Of Study| | 4| | | 5| Industry Profile| | 6| Company Profile | | | Introduction Of Financial Modeling| | 7| Micro-Economical Factors| | 8| Understanding The Financial Statements | | 9| Research Methodology| | 10| Observations| | 11| Suggestions| | 12| Conclusion| | 13| Appendix| | 14| Bibliography| | 15| | | 16| | | 17| | | 18| | | 19| | | 20| | | | | | | | | | | | | | | | | | EXECUTIVE SUMMARY Indian economy is the fastest growing economy in the world. Indian companies are growing at faster rate in terms of revenue, expansion and global existence. Due to significant growth shareholders are benefitted by good dividend and return on investments in share market. In the last decade equity has given the best return and still the growth phase is continued. But retail investor has also lost his hard earned money due to lack of knowledge and awareness of the equity market. Without knowledge in equity market and trading on tips it become gambling instead of smart investment. Here the role of financial modeling and valuation of securities begins to find out the intrinsic value of the stock, whether it is overvalued or undervalued. Based on the research findings equity analyst recommends whether to buy, sell or hold the stock. In this report I have explained Financial Modeling of Dabur Company. This report begins with the understanding the present micro and macro-economic condition and how they affect the growth of the country. It discusses the present economic indicators and expected growth of India and FMCG industry in the future. The report further analyse financial statements of the Dabur Company. By using historical data and making some assumptions, calculations future earnings are forecasted. After that using DCF valuation we find out intrinsic value and Relative valuation used to compare Dabur with his peers. Hence, this report is an attempt to comprehensively study of Financial Modeling And Valuation Of Dabur Company. About Corporate Bridge Corporate Bridge Group is formed by graduates from leading institutes (IITs, IIMs & AIM). â€Å"Corporate Bridge† as the name suggest, helps in bridging the gap between the aspiring entrant and the corporate world. Corporate Bridge is globally recognized training firm, providing blend of instructor-led and online financial training programs along with e-learning services. With Corporate Bridge’s entrepreneurial spirit coupled with unparalleled experience (CLSA India, KPMG, YES Bank, JPMorgan, SBI Capital Markets, CRISIL etc) and comprehensive capabilities (MBA, CFA, FRM, CAs) across all industries and business functions, we commit to deliver a world class professional training and learning services that continues improving knowledge efficiency. Corporate Bridge Group; has two verticals â€Å"Educorporatebridge† and â€Å"Elearninglabz† *   EduCorporateBridge deals with Online and Instructor Lead Training Programs in various financial courses viz. Equity Research, Wealth Management, Technical Analysis Investment banking, Private Equity, Fundamental Analysis, Investment Research, Credit Research etc and preparatory courses like CFA Level I & II and FRM Level I & II, Campus Placement Trainings Elearninglabz solution portfolio consists of custom e-content development for training and learning needs in collaboration with our clients and subject matter specialist, custom Learning Management System (LMS) suite, Test & Assessment solutions. Industry Overview The Indian FMCG sector is the fourth largest in the Indian economy and has a market size of $13.1 billion. This industry primarily includes the production, distribution and marketing of consumer packaged goods, that is those categories of products which are consumed at regular intervals. The sector is growing at rapid pace with well-established distribution networks and intense competition between the organized and unorganized segments. It has a strong and competitive MNC presence across the entire value chain. The FMCG’s promising market includes middle class and the rural segments of the Indian population, and give brand makers the opportunity to convert them to branded products. It includes food and beverage, personal care, pharmaceuticals, plastic goods, paper and stationery and household products etc. India, Asia’s third largest economy, saw urban consumers spend less in calendar year 2012 due to high inflation, muted salary hikes, and slowing economic growth that affected both real wages and sentiment. During 2012, the overall slowdown in the economy has begun to affect the FMCG sector with companies posting deceleration in volume growth in the recent quarterly results. Discretionary spending has been hit severely due to the ongoing slowdown. The prevailing high inflation level is also a cause of concern for the sector. The trends seen in 2012 are likely to accelerate in 2013. Growth will come from rural dwellers that are expected to see a rise in disposable incomes due to the direct cash transfer scheme, while urban consumers will continue to be affected by the macroeconomic environment. The consumer products industry has been growing at a brisk pace in the past few years backed by robust economic growth and rising rural income. Growth drivers such as premiumization, rapid urbanization, evolving consumer lifestyles and emergence of modern trade have shielded the industry from the slowdown. The consumer products or the Fast Moving Consumer goods (FMCG) sector is valued at Rs 1.6 trillion (Source: Nielsen). The industry is urban-centric with 66% share of the goods being consumed by urban India. Metropolitan cities & small towns (population of 1-10 lakh) have been driving the FMCG consumption in urban India since 2002. In fact middle India, comprising of the small towns and consuming 20% of overall FMCG sales, has been growing the fastest across rural and urban segments. As per Nielsen, the FMCG market size of middle India is set to expand from Rs 287 bn in 2010 to over Rs 4 trillion by 2026. Rural India, where 70% of the population resides but only 34% consume FMCG goods, presents the biggest market potential for the industry. Backed by low unit packs and aggressive distribution reach, rural market size has expanded four times to Rs 564 bn since 2002. Companies such as Hindustan Unilever and Dabur which derive nearly half their sales from rural India have been increasing their reach. FMCG goods are retailed through two primary sales channels – General Trade and Modern Trade. General Trade comprising of the ubiquitous kirana stores is the largest sales channel forming 95% of overall retail sales. However, growth of consumer goods retailed through Modern Trade channel is outpacing the growth of FMCG products in General Trade. Factors such as a comfortable and modern store experience, access to a wide variety of categories and brands under a single roof and compelling value-for-money deals are attracting consumers to organized retail in a big way. But modern trade is still an urban phenomenon with 17 key metros contributing to 73% of overall modern trade in India. Product categories such as packaged rice, liquid toilet soaps, floor cleaners, breakfast cereals, air fresheners & mosquito repellent equipment have a higher penetration in modern trade channel. Despite the relatively recent performance of private label products in India, it is already close to 7% of modern trade sales. Modern Trade is expected to gain greater importance with opening up of foreign direct investment in multi-brand retail. The implementation of the Goods and Services Tax (GST) is expected to benefit the sector immensely by reducing the overall incidence of taxation. GST aims to reduce the cascading effect by replacing a multitude of indirect taxes such as central excise, service tax, VAT and inter-state sales tax with a single GST rate. Moreover, FMCG companies will be able to optimize logistics and distribution costs in the GST era. The resulting cost savings by the companies can be passed on to the final consumer thereby boosting demand. However the implementation of GST has currently been put on the backburner by the government. FMCG Industry size (India) * Of the entire FMCG sector, Food is 52%, Non-Food at 45% and OTC 3% * Growth being driven by increasing consumption led by rise in incomes, changing lifestyles and favourable demographics. * FMCG industry expected  to grow in mid to high teens going ahead. * In the last decade the FMCG sector has grown at an average of 11% a year; in the last five years, annual growth accelerated to 17%. * FMCGs are slowly and gradually positioning and deeply penetrating in the fast growing rural market. The Rural mind set is open to consumption of newer, more contemporary food categories and as a result, drive consistent growth. FMCG industry to be Rs.4000-6000 billion industry by 2020. * Indian rural market currently worth US$ 9 bn is expected to become a US$ 100 bn opportunity by 2025. * By 2025, total consumption is likely to quadruple making India the 5th largest consumer market. * The FMCG sector in India continues on a strong growth path with both urban and rural India contributing to its growth. Rural India contributes one third of FMCG sales in India. * Growth driven by increasing consumption led by rise in incomes, changing lifestyles and favourable demographics. * Rural India accounts for more than 700 Million consumers or 70% of the Indian population andaccounts for 40% of the total FMCG market. * The Rural market is a large market space with very low organized player penetration. Across the globe, the Indian rural market is probably the single largest â€Å"unit† of opportunity also with changing lifestyle and increasing consumer demand, the Indian FMCG market is expected to cross $80 billion by 2026 in towns with population of up to 10 lakhs. * The sector has a tremendous opportunity for growth in India, with the growing population, the rising incomes, education and urbanization, the advent of modern retail, and a consumption driven society. Source: credit suisse * According to credit suisse report, FMCG growth was 14% in the rural market and 16% in the urban market during the quarter ended December 2011; for the quarter ended March 2013, while growth in the urban market improved to 17%, it rose even higher, to 18%, in the rural market. Industry Classification and Performance Three well-identified sets of players operate within a highly developed and intenselycompetitive landscape of the Indian FMCG market. 1. Foreign players who are present through their subsidiaries such as Unilever, P&G, Nestle and PepsiCo 2. Strong Indian players with established national presence such as Marico, Dabur and Godrej Consumer Products. 3. Regional or small domestic players, such as Ajanta, Anchor, CavinKare etc., who are presentin a few regions of the country apart from these, there are regional and small-scale FMCG players such as small teaproducers and organic food producers, who mainly compete by offering low-priced products withsimilar looks or packaging compared to the bigger brands, to the ‘right consumers’ typicallybased in rural areas or in small towns. These players with lower corporate overheads andclear focus on specific consumer requirements have a competitive edge over larger FMCG players. Growth Drivers Government Policies and Regulatory Framework * Investment Approval: Automatic investment approval up to 100 per cent foreign equity forNRI and overseas corporate bodies. These investments are allowed in food processingsegments such as coffee and tea. * FDI in organized retail: India currently allows 100 per cent FDI in Cash & Carry segment and51% in single-brand retail, which is expected to be further increased to 100%. India is also expected to allow 51% FDI in multi-brand retail, which will boost the nascent organized retail market in the country. * Priority Sector: The Government of India recognizes food processing and agro industries aspriority sectors. * Relaxation of license rules: Industrial licenses are not required for almost all food and agro-processing industries, barring certain items such as beer, potable alcohol and wines, cane sugar, and hydrogenated animal fats and oils as well as items reserved for exclusive manufacturing in the small-scale sector. * Statutory Minimum Price: In October 2009, the government amended the Sugarcane ControlOrder, 1966, and replaced the Statutory Minimum Price (SMP) of  sugarcane with Fair andRemunerative Price (FRP) and the State- Advised Price (SAP). Opportunities in the FMCG Sector: Segment Overview: Segment Overview: Household Care * The detergents segment dominates the household care segment and has been growing at an annual growth rate of 10- 11% in the past five years. * The Household care segment is plagued by intense competition and high level of penetration. With rapid urbanization, emergence of small pack sizes and sachets is picking up * Local and unorganized players account for a major share of the total volume ofthe detergent market. Segment Overview: Personal Care Local and unorganised players account for a major share of the total volume ofthe detergent market The detergent segment dominates the household care segment and has been growing at an annual growth rate of 10-11% in the past five years. The Household care segment is plaguedby intense competition and high level ofpenetration. With rapid urbanization,emergence of small pack sizes andsachets is picking up. Segment Overview: Food and Beverages The Food and Beverages segment comprises of the food processingindustry,health beverage industry, breadand biscuits, chocolates & confectionery,Mineral Water and ice creams. The three largest consumed categories ofpackaged foods are packed tea biscuitsand soft drinks. The Indian hot beverage market isdominated by tea and the major share ofthe tea market is dominated byunorganized players. Dabur India Limited overview * Established in 1884 – more than 127 years of Trust & Excellence * Among top 4 FMCG companies in India * World’s largest in Ayurveda and natural healthcare * Revenue of r US$1 Billion (Rs 5,283 Crore) and Market Capitalisation of US$4 Billion (Rs 20,000 Crore) * Wide distribution network covering 3.4 million retailers across the country * 23 world class manufacturing plants catering to needs of diverse markets * Strong overseas presence with 30% contribution to consolidated sales * Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. * Headquarters: Kaushambi Ghaziabad – 201010 Uttar Pradesh, India * Top management: Dr. AnandBurman (Chairman) Mr.AmitBurman (Vice-Chairman) Mr. Sunil Duggal (CEO) * Employees approximately 3000 Key players at FMCG: Company| Key categories| Hindustan Unilever Ltd| Soaps, Detergents, Personal Care, Foods| Nestle India Ltd| Food, Beverages, Infant Nutrition| Dabur India Ltd| Personal, Health &Homecare, Foods| Godrej Consumer| Hair Care, Soaps| Colgate Palmolive Ltd| Oral Care & Toiletries| GlaxoSmithkline Consumer| Consumer Health Care| Marico Ltd.| Hair care, Food, Skincare| Procter & Gamble | Feminine Hygiene personal care| Britannia Industries Ltd| Biscuits| PEST Analysis Political * Stable political government. * Restrictions in import policies. * Rise in customs duty on petrol & diesel. * Partial withdrawal of stimulus packages Economical * Inflation rate * Decreased GDP * Increase in disposable income. * Indian FMCG Recorded 16% Sales Growth in last fiscal. The FMCG sector is the4thlargest sector of Indian economy with market size of more than 60,000crore Social * Rising rural India. * Consumerism. * Demography Technological * Research and development intensity * Information technology COMPETITOR ANALYSIS The key competitors are KeoKarpin, Emami, Bajaj, Marico, HLL which together with Dabur have about 64% of India’s domestic market. Emami: HimaniNavratan oil and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair oil market. Bajaj: Bajaj Brahmi Amla and Bajaj Almond Drops currently have a value share of 19 per cent and 12 per cent in their respective oil categories as per ORG-Marg. Besides, the company has also decided to enhance its retail presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to reach the rural parts. Maricos: Parachute is premium edible grade oil, a  market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity. In fact over time it has become the gold standard for purity. Parachute’s primary target has been women of all ages. The brand has a huge loyalty, not only in the urban sections of India but also in the rural sector. It has a market share of 28%. HUL It has two products, Clinic plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a 3%share in hair oil market. The key competitors of Dabur in the Chyawanprash segment are Baidyanath, Zandu andHimani, which together with Dabur have about 85% of India’s domestic market. DaburChyawanprash (herbal honey) has a market share of 61%.We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows: SWOT Analysis STRENGTH * Strong presence in well defined niches( like value added Hair Oil and Ayurveda specialties) * Core knowledge of Ayurveda * Strong Brand Image * Distribution Network, Extensive Supply Chain, IT Initiatives and R & D| WEAKNESS * Seasonal demand like chyawanprash in winter * High price Vatika * Limited differentiation in some products like vatika| OPPORTUNITIES * Export opportunities * Increasing demand by people * Market development| THREATS * Existing competition like Zandu, Himani, Baidyanath * New entrant threats from substitutes like Bryllcream for vatika hair oil| Dabur: Strong Presence in FMCG Categories Category| Position| Market share| Key Brands| Hair Care| 3| 12%| DaburAmla hair Oil, Vatika hair oil &Vatika Shampoos| Oral Care| 3| 13%| Red toothpaste, Babool, Meswak, Red toothpowder| Skin Care| 3| 7%| DaburGulabari, Fem| AyurvedicTonics| 1| 67%| DaburChyawanprash| Digestives| 1| 56%| Hajmola| Fruit Juices| 1| 52%| Real Fruit Juices, Real Activ| Honey| 1| 50%| Dabur Honey| Glucose| 2| 25%| Dabur Glucose| Segment wise Market share of Dabur International business * Focus markets: * Egypt * Nigeria * Turkey * Bangladesh * Nepal * U.S. * Leveraging the â€Å"Natural† preference among local consumers to increase share in personal care categories * High level of localization of manufacturing and sales and marketing * Sustained investments in brand building and marketing â€Å"Domestic FMCG companies such as Godrej Consumer Products (GCPL), Marico and Dabur have grown at a robust pace of 20% average annual growth over the last five years. In a bid to expand their businesses further, these companies acquired several foreign brands and companies. Consequently, the share of the international sales to their total revenue has increased. The chart of the day shows that between FY06 and FY12, the contribution of international sales has increased substantially for most FMCG companies. However, the benefit at the top line has failed to percolate at the bottom line. Sometimes, acquired brands take a long time to break-even. Hair-styling brand Code 10 acquired by Marico in 2010 and Dabur’s Namaste acquisition in 2011 continue to remain in red. However, GCPL has seen reasonable success with several acquisitions such as Megasari in Indonesia, Darling Group in Africa and Cosmetica National. This may be on account of the fact that GCPL has focused on product acquisitions in which it has a strong core presence. â€Å" Growth Strategy: Three Growth Strategies Acquire Innovate Expand Expand * Strengthening presence in existing categories and markets as well entering new geographies * Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories * Calibrated international expansion – local manufacturing pp y y g and supply chain to enhance flexibility/ reduce response time to change in market demands Innovate * Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a. * Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste) Acquire * Acquisitions critical for building scale in existing categories & markets * Should be synergistic and make a good strategic fit * Target opportunities in our focus markets Acquisitions of Hobi Group, Turkey * Acquisition of Hobi Group, Turkey for a total consideration of US$ 69 Million completed on October 7, 2010 * Hobi manufactures and markets hair, skin and body care products under the brands Hobby and New Era * Product range of the company is complementary to our product range * Acquisition provides an entry into another attractive emerging market and a good platform to leverage this across the region Acquisitions of Namaste Laboratories * Dabur India Limited through its subsidiary Dabur International Limited acquired 100% stake in Namaste Laboratories LLC for $100 million, in an all-cash deal on January 1, 2011 * Namaste is a leading ethnic hair care products company, having products for women of colour, with revenues of $95 million from US, Europe, Middle East and African markets * The company markets a portfolio of hair care products under the brand ‘Organic Root Stimulator’ and has a strong presence in ethnic hair care market for women of colour. * Acquisition to enable entry into Ethnic Hair Care products market valued at more than US$1.5 billion and tap into significant market opportunity in the fast growing * At an acquisition price of $100 million, the deal value is at 1.1x Sales and 8.3x EBITDA Porters Industry Analysis: Supply:| Abundant supply through a distribution network of over 8 m stores across the country. Distribution networks are being beefed up to penetrate the rural areas. HUL has tripled rural network in 2011 and Dabur wants to double rural reach by FY13.| Demand:| Being items of daily consumption, demand is least impacted by economic slowdown.| Barriers to entry:| Huge investments in setting up distribution networks and promoting brands and competition from established companies.| Bargaining power of suppliers:| Inputs being mostly agri-commodities, the suppliers are numerous and lack scale to wield bargaining power. Companies like ITC that are integrated backwards have lower dependence on suppliers. | Bargaining power of customers:| Customer does not have bargaining power in case of branded products but intense competition within the FMCG companies results in value for money deals for consumers. | Competition:| Competition is faced from domestic unorganized players and established MNC’s. Price wars are a common phenomenon. Private labels offered by retailers at a discount to mainframe brands act as competition to undifferentiated and weak brands.| | Financial year 2013-2014 | With consumer spending remaining healthy, value growth in FMCG sales were over 18% in 2012-13 (Source: Nielsen). All the frontline FMCG companies registered double-digit sales growth during the year. Companies like Dabur, Godrej Consumer Products and Marico posted over 25% topline growth aided by brisk rise in overseas revenues. | | The rural markets continued to lead demand in personal care and oral care products. According to Nielsen’s data, rural sales in washing powder, hair oil and shampoo each contributed more than a third of the overall category sales in FY2012-13. Sales growth in rural markets surpassed that in urban markets in more than 50% of the FMCG categories. Nielsen has projected the size of the rural market to grow ten folds to $ 100 bn by 2025. | | In FY2012-13, margins of FMCG companies were hit by unprecedented increase in price of crude and other commodities. As crude price spiralled above $100 a barrel, price of input crude-derivatives, transportation/freight and packaging costs increased sharply. Advertisement and promotional spends remained high on account of heightened competitive activity. The companies effected judicious price increases and also reduced the packet sizes and stock-keeping units (SKUs). Hence the growth seen by FMCG companies was mostly volume led. The reduction in surcharge from 7.5% to 5% and hike in the base MAT kept effective tax rates unchanged during the year.| | Prospects| | | Household spending on FMCG goods has not witnessed any pressure so far. But going forward, a deficient monsoon is likely to impact farm income and thereby rural spending in the short term. Even in urban India, discretionary spending can get impacted by lower salary hikes and food inflation re-surfacing on poor rainfall. This is more likely to result in down-trading by consumers. | | FMCG companies have been reaping the benefit of waning inflation and series of price-hikes taken earlier. But with the ‘New Standard Packaging’ rules coming into effect in November 2012, the companies will no longer be able to hold prices by reducing the grammage sold. High base-effect in price levels and fears of hurting demand is likely to prevent companies from raising prices substantially. Apart from absorbing higher input costs, FMCG companies may have to bear expenses to bring their  products in line with the new packaging rules. Additionally, even rising competition is expected to keep brand investments by companies high through increased ad-spends and promotional expenses. Therefore, profitability of FMCG companies may witness short-term pain. | | But long term demand potential of FMCG goods remains robust. According to International Labour Organisation, India will have the highest working age population in the world by 2020. The National Council of Applied Economic Research projects the proportion of middle class population to swell from 13.1% at present to 37.2% by 2025-26. Increase in working-age population and rising middle class will translate into higher purchasing power & boost consumerism. Higher penetration and evolution in consumption pattern will drive rural demand. The FMCG sector is expected to reach market size of $ 74 bn by 2018 (Source: FICCI).| | Introduction Of Financial ModelingFinancial modeling refers to the process through which a company builds up a financial representation of some, or even all aspects of the company or the given security. The financial model is generally featured by performing calculations, and making recommendations on the basis of that information. Moreover, the model might also prà ©cis specific events for the end user in addition to providing direction regarding possible alternatives or actions.Theoretically, a financial model is a set of assumptions about future business conditions that drive projections of a company’s revenue, earnings, cash flows and balance sheet accounts. In practice, a financial model is a spreadsheet (usually in Microsoft’s Excel software) that analysts use to forecast a company’s future financial performance. Properly projecting earnings and cash flows into the future is important since the intrinsic value of a stock depends largely on the outlook for financial performance of the issuing company. A financial model spreadsheet usually looks like a table of financial data organized into fiscal quarters and/or years. Each column of the table represents the balance sheet, income statement and cash flow statement of a  future quarter or year. The rows of the table represent all the line items of the company’s financial statements, such as revenue, expenses, share count, capital expenditures and balance sheet accounts. Like financial statements, one generally reads the model from the top to the bottom, or revenue through earnings and cash flows. History as a Guide When trying to predict the future, a good place to start is the past. Therefore, a good first step in building a model is to fully analyze a set of historical financial data and link projections to the historical data as a base for the model. If a company has generated gross margins in the 40% to 45% range for the past ten years, then it might be acceptable to assume that, with other things being equal, a margin of this level is sustainable into the future. Consequently, the historical track record of gross margin can become somewhat of a basis for a future income projection. Analysts are always smart to examine and analyze historical trends in revenue growth, expenses, capital expenditures and other financial metrics before attempting to project financial results into the future. For this reason, financial model spreadsheets usually incorporate a set of historical financial data and related analytical measures from which analysts derive assumptions and projections.Macro-economical Factors: 1. Mid-Quarter Monetary Policy Review: June 2013Monetary and Liquidity MeasuresOn the basis of an assessment of the current macroeconomic situation, RBI has been decided to: * keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of their net demand and time liabilities; and * keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.25 per cent.Consequently, the reverse repo rate under the LAF wi ll remain unchanged at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 8.25 per cent.2. The above monetary policy stance has been informed by the evolving growth-inflation dynamic, the balance of risks as well as recent developments in the external sector.3. Since the Reserve Bank’s Annual Policy statement in May, global economic activity has slowed and risks remain elevated, most recently on account of uncertainty over policies of systemic central banks. On the domestic front, macroeconomic conditions remain weak, hamstrung by infrastructure bottlenecks, supply constraints, lacklustre domestic demand and subdued investment sentiment. Inflation has  moderated as projected. However, upside pressures on the way forward from the pass-through of rupee depreciation, recent increases in administered prices and persisting imbalances, especially relating to food, pose risks of second-round effects. As recent experience has shown, shifts in global market sentiment can trigger sudden stop and reversal of capital from a broad swath of emerging economies, swiftly amplifying risks to the outlook. India is not an exception.Global Economy4. Global growth has been patchy and uneven. Among advanced economies (AEs), during Q1 of 2013, growth in US and Japan improved while that in the euro area contracted. Growth in most emerging and developing economies (EDEs) has been relatively resilient, although in some large emerging economies, sluggish external demand and stalled domestic investment are dragging down economic activity. Inflation has been easing in the AEs due to weak demand conditions. EDEs, however, present a mixed picture: inflation remains elevated in the BRICS except China. Commodity prices, other than the price of crude, have generally softened in recent months.Domestic EconomyGrowth In May, the Central Statistics Office (CSO) reported India’s GDP growth in Q4 of 2012-13 of 4.8 per cent, a marginal improvement over the previous quarter. During the current financial year, the growth of industrial production decelerated to 2.3 per cent in April after picking up in the preceding month. All constituent categories of industry have slowed, with a persistent contraction in mining activity. The sharp weakening in the growth of capital goods production points to still damped investment demand whereas a pick-up in consumer non-durables could be indicative of a fragile return of consumer confidence. On the other hand, the services sector purchasing managers’ index rose in May on order flows. The onset of the south-west monsoon has been strong and on time.InflationHeadline WPI inflation eased for three months in succession with the May reading at 4.7 per cent, down from an average of 7.4 per cent in 2012-13. All constituent categories, barring food, have moderated. In the fuel category, coal and mineral oil prices declined, partly offsetting the upward revision in administered prices of electricity. Non-food manufactured products inflation too ebbed, driven by metal prices which fell for the eighth successive month in response to softening of global prices. Still ele vated food inflation, particularly in respect of cereals and vegetables, sustained upside pressures on overall  inflation. Retail inflation, as measured by the new combined (rural and urban) CPI, edged down from an average of 10.2 per cent last fiscal year to 9.3 per cent in May.Liquidity Conditions Net average daily borrowings under the LAF have declined gradually, from ` 1.2 trillion in March 2013 to ` 0.7 trillion in June 2013 so far (up to June 14) reflecting the sizable injection of primary liquidity through the reduction in the cash reserve ratio (CRR) in January, open market operations (OMO) purchases during Q4 of 2012-13, a significant reduction in the government’s cash balances with the Reserve Bank as well as two OMOs of ` 0.2 trillion in the current financial year so far. External Factors: The most significant development in the external sector has been the movement in the exchange rate. The rupee depreciated by 5.8 per cent against the US dollar during the current financial year up to June 14. It fell by 6.6 per cent during May 22-June 11 due to sell-off by foreign institutional investors, reflecting risk-off sentiment triggered by apprehensions of possible tapering off of quantitative easing by the US Fed. While the trade deficit has widened sharply due to a surge in festival-related/seasonal gold imports, available evidence suggests that a moderation in gold imports could be underway in June. Capital flows, which met the external financing requirement during April-May, moderated in June.Outlook At the global level, the International Monetary Fund (IMF) has warned of non-trivial risks of the global economy encountering a soft patch in the months ahead. On the domestic front, last year’s robust rabi production and the monsoon performance so fa r augur well for growth prospects. The spatial and temporal distribution of rainfall over the next three months will be crucial in determining the performance of agriculture. The continuing weakness in manufacturing activity needs to be urgently reversed. Key to reinvigorating growth is accelerating investment by creating a conducive environment for private investment, improving project clearance and implementation and leveraging on the crowding-in role of public investment. On the inflation front, easing commodity prices at the global level and weaker pricing power of corporates at the domestic level are having a softening influence. Given that food inflation remains high, the inflation outlook will be influenced by concerted efforts to break food inflation persistence. The inflation outlook going forward will be determined by suppressed inflation being released through revisions in  administered prices, including the minimum support prices (MSP) as well as the recent depreciation of the rupee. Softer global commodity prices and recent measures to dampen gold imports are expected to moderate the CAD in 2013-14 from its level last year. The main challenge is to reduce the CAD to a sustainable level; the near-term challenge is to finance it through stable flows. The most recent number on the Centre’s fiscal deficit, at 4.9 per cent of GDP for 2012-13, has turned out better than expected and instils confidence in the Government’s commitment to contain the fiscal deficit for 2013-14 at 4.8 per cent. Perseverance with this consolidation should help in mitigating the twin deficit risks to the outlook. These positive developments, which have been acknowledged by international credit rating agencies, should have a favourable impact on invest or confidence.Current Account Deficit (CAD) woes: The Reserve Bank of India (RBI) in its monetary policy cut the cash-reserve ratio (CRR) and repo rates by 25 basis points (0.25%). But at the same time it made very clear the various risks that the Indian economy faces. While inflation is certainly one of the key risks, the other equally worrying factor is the current account deficit (CAD). Indeed, in the above chart shows, CAD (as a % of GDP) has been continuously increasing over five consecutive quarters from July-September 2011 (2QFY12) to July-September 2012 (2QFY13). This is bound to have an adverse impact on the stability of the country’s exchange rate at a time when domestic growth has also been slowing down. What is more, the rise in imports has largely been on account of fuel and gold imports. This is of more worrying to the RBI, than had the high CAD been on account of import of capital goods. | Understanding Financial StatementIncome StatementAn income statement (US English) or profit and loss account (UK English) (also referred to as a profit and loss statement (P&L), revenue statement,statement of financial performance, earnings statement, operating statement, or statement of operations) is one of the financial statementsof a company and shows the company’s revenuesand expenses during a particular period.It indicates how the revenues (money received from the sale of products and services before expenses are taken out, also known as the â€Å"top line†) are transformed into the net income(the result after all revenues and expenses have been accounted for, also known as â€Å"net profit† or the â€Å"bottom line†). It displays the revenues recognized for a specific period, and  the costand expenses charged against these revenues, including write-offs (e.g., depreciation and amortization of various assets) and taxes.The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported. The important thing to remember about an income statement is that it represents a period of time. This contrasts with the balance sheet, which represents a single moment in time.Balance SheetIn financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, abusiness partnership, a corporation or other business organization, such as an LLC or an LLP. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a â€Å"snapshot of a company’s financial condition†. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business’ calendar year.A standard company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of assets are usually listed first and typically in order of liquidity.Assets are f ollowed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assetsor the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities.Another way to look at the same equation is that assets equal liabilities plus owner’s equity. Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner’s money (owner’s equity). Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections â€Å"balancing†.Cash Flow StatementIn financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statementthat shows how changes inbalance sheetaccounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Essentially, the cash flow statement is concerned with the flow of cash in and out of the business. The statement captures both the current operating results and the accompanying changes in the balance sheet. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company,  particularly its ability to pay bills. International Accounting Standard 7 (IAS 7), is the International Accounting Standardthat deals with cash flow statements.People and groups interested in cash flow statements include: * Accounting personnel, who need to know whether the organization will be able to cover payroll and other immediate expenses * Potential lendersor creditors, who want a clear picture of a company’s ability to repay * Potential investors, who need to judge whether the company is financially sound * Potential employees or contractors, who need to know whether the company will be able to afford compensation * Shareholders of the business.Th e cash flow statement is intended to 1. provide information on a firm’s liquidity and solvency and its ability to change cash flows in future circumstances 2. provide additional information for evaluating changes in assets, liabilities and equity 3. improve the comparability of different firms’ operating performance by eliminating the effects of different accounting methods 4. It indicates the amount, timing and probability of future cash flows.Working CapitalWorking capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is calculated as current assets minus current liabilities. It is a derivation of working capital that is commonly used in valuation techniques such as DCFs (Discounted cash flows). If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.A company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.Horizontal AnalysisA procedure in fundamental analysis in which an analyst compares ratios or line items in a company’s financial statements over a certain period of time. The analyst will use his or her discretion when choosing a particular timeline; however, the decision is often based on the investing time horizon  under consideration.Formula,= current year-base yearbase year| Vertical AnalysisVertical analysis of financial statements is a technique in which the relationship between items in the same financial statement is identified by expressing all amounts as a percentage a total amount. This method compares different items to a single item in the same accounting p eriod. The financial statements prepared by using this technique are known as common size financial statements.Trend AnalysisTrend Analysis is the practice of collecting information and attempting to spot a pattern, or trend, in the information. Although trend analysis is often used to predict future events, it could be used to estimate uncertain events in the past, such as how many ancient kings probably ruled between two dates, based on data such as the average years which other known kings reigned.= Current year*100 Base yearDiscounted Cash Flow (DCF) AnalysisIn finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values (PVs)—the sum of all future cash flows, both incoming and outgoing, is the net present value (NPV), which is taken as the value or price of the cash flows in question. Present value may also be expressed as a number of years’ purchase of the future undiscounted annual cash flows expected to arise.Using DCF analysis to compute the NPV takes as input cash flows and a discount rate and gives as output a price; the opposite process—taking cash flows and a price and inferring a discount rate, is called the yield.Discounted cash flow analysis is widely used in investment finance, real estate development, and corporate financial management.What is relative valuation? In relative valuation, the value of an asset is compared to the values assessed by the market for similar or comparable assets. To do relative valuation then, – we need to identify comparable assets and obtain market values for these assets – convert these market values into standardized values, since the absolute prices cannot be compared This process of standardizing creates price multiples. – compare the standardized value or multiple for the asset being analyzed to the standardized values for comparable asset, controlling for any differences between the firms that might affect the multiple, to judge whether the asset is under or over valuedInterpretation of DCF valuation and Relative valuation| Review of Literature Mostly financial modeling of dabur was done before by equity research analyst of various research agencies, mutual funds, investment banks and brokerage house. Generally they have done it quarterly and annually before and after the company’s financial results. Justification and Likely Benefits Why financial modelingis important? Financial modeling acts as a useful tool which enables business options and risks to be estimated in a cost-effective way against various assumptions, recognize optimal solutions in estimating financial returns and understand the effect of resource constraints thus leading to more effective business decisions. Financial modeling can be referred as an art and like any other art form, it requires constant [practice and commitment to develop expertise in this area. In the present day world, many companies are becoming globally integrated with the international economy through the way of acquiring/establishing international operations. This calls for the requirement of strong financial models which can assist in performing the evaluation of every country’s operations, reflect on multiple currencies in their model, estimate varying capacity utilizations to estimate the optimal capacity under changeable industry demand-supply scenarios and similar more cases. Scope of Financial Modeling? Financial Modelling is a key skill with application in several areas withinbanking and finance industry as well as within corporations. In financialmodelling you learn to gather historical information on companies andanalyze company / industry performance on various financialparameters. This analysis is then used to build a company’s financialmodel, which in turn is key to projecting a future financial performance.Based on this model companies investors can arrive at a suitableevaluation for the companies. Financial models are usually made for financing of a project intransactions like: PPP/PFI, Mergers & Acquisitions, Valuation ofbusinesses etc. across various industries & sectors which includes SolarPlants, Waste Management, Helicopter felt, Oil and Gas, Mining,Energy, Healthcare,  Services & Education etc to evaluate the viability ofthe project on various parameters. Key Financial of Dabur: Objectives To find out intrinsic value of dabur and take decision regarding investment in Dabur. Plan of Work and Methodology Prepared a Sector Analysis Report for the FMCG sector †¢ Performed Historical Ratio Analysis of Dabur †¢ Prepared a Financial Model for Dabur by forecasting its financials for the next five years (FY13E-FY17E) on the basis of a historical trend analysis and expected performance of the FMCG industry drivers. †¢ Estimated a Target Price for the stock of Dabur using a DCF Valuation Model as well as using Relative Valuation by peer comparison. †¢ Submitted a final Equity Research Report on Dabur with recommendations. References and Bibliography www.investopedia.com www.rbi.org.in www.moneycontrol.com www.equitymaster.com www.bloomberg.com www.bseindia.com www.dabur.com www.wikipedia.org Nielsen FMCG industry report

Assignment Research Paper Example | Topics and Well Written Essays - 500 words - 4

Assignment - Research Paper Example ish to preserve changes done to a FILE while Save as is a command used to preserve changes to a FILE and at the same time specify the location in the COMPUTER system where the FILE should be stored. e) Folder and FILE: a folder is a storage location given a specific name where FILEs can be stored while a FILE is an entity containing data and information of a specific program and is stored in a COMPUTER system. f) Windows XP and office XP: windows XP is an operating system produced by Microsoft windows to run on COMPUTERs while office XP is an application programs suite developed by Microsoft to run various common user applications such as word processing and presentations. g) BIOS boot and Soft boot: BIOS boot happens when the computer is started or restarted by pressing the restart/start button on the hardware while soft boot is initiated using computer software (operating system). i) DVI and HDMI:DVI can be used to connect a computer monitor to other graphical output devices. It only carries video/visual signals. HDMI can be used to carry both audio and video signals from a computer system to other output devices separate from the computer. 9. Main memory is that part of a computer where instructions and data of programs being executed are loaded. The computer’s CPU fetches instructions and data from this memory and loads them in its internal registers for execution to take place. Temporary data and output from the executing processes is also stored in this

The Evolutionary Changes in Construction Between the De Havilland Essay

The Evolutionary Changes in Construction Between the De Havilland Comet and the Airbus A380 Aircraft - Essay Example In addition, the jetliner also had a large square window and a pressurized fuselage. Regarding the era, the Comets provided a comfortable passenger cabin. It made its first commercial debut in 1952 where it flew without any problem. Its successful debut as a commercial jet helped drew passengers from all parts of the country with an interest in using the Comets as their preferred choice of flight. However, the success stories of the Comets did not last long since the airplane began experiencing problems just a year after its commercial service debut. In fact, three of the Comets broke up while, on flight resulting in an accident, that received wide publication by the media, according to Montagu-Pollock (2012). Investigations that followed showed that the accidents occurred due to catastrophic metal fatigue that the manufacturing engineers did not understand property at the time of its manufacturing. This prompted the withdrawal of the Comet from service after which it was taken for e xtensive testing to unearth the real cause of the accident. Investigations showed that the accident had initially been wrongly blamed on poor weather. Instead, design flaws were identified, which included dangerous installation methodology, and dangerous stresses at the corners of the windows. As a result, the Comet was modified with oval windows and structural reinforcements among many other changes, notes Nolan (2010). The other rival manufacturers of aircrafts learnt from the Comet and began making improvements in their while manufacturing processes avoid the mistakes made during the manufacture of the first Comet. Overview of the construction design of the Comet The first De Havilland Comet was made entirely of metal low-wing cantilever monoplane, observed Montagu-Pollock (2012). They had four engines, two of which were mounted below the wings for powering the plane. The two engines were buried under the wings to prevent the drag of podded engines, as well as to give room for sm aller fin and rudder. The mounting of the engines higher in the wings was also meant to reduce the risk of injection damage, which had been a major problem associated with turbine engines. It also had four-place cockpits for two pilots, navigator, and a flight engineer (Nolan 2010). Unlike the features of the aircrafts of the time, the first Comet had a clean low-drag design, which included the swept-wing leading edge, four-wheel bogies, and integral wing fuel tanks. The original De Havilland Comet measured almost the same length as the later Boeing 737-100. However, it carried fewer people in a spacious environment than the Boeing 737-100 (Birtles 1990, p.11). The British Overseas Airways Corporation (BOAC) installed 36 reclining ‘slumber seats’ with center measuring about 45-inches allowing for a greater leg space both behind and in front. Air France, on the other hand, was fitted with 11 rows of seats plus four seats installed on its comets. The plane also had tables where passengers can have the feeling of enjoyment and comfort. Amenities included a large galley capable of serving hot and cold cuisines and drinks, according to Ron and Patterson (2010, p.19). It also had toilets for both men and women. Because of the safety concerns, the airplane had an emergency section, which included several life rafts kept in the wings, just next to the engines. However, after encountering problems while, on flight, several improvements have been made to ensure that such accidents do not occur

Business Process Management in Hospitality Case Study

Business Process Management in Hospitality - Case Study Example Configuration is defined as "making choices about what a company will do and how it will do it, andensuring that the things a company does reinforce each other". They argue that the lack of a focused competitive strategy is one of the key causes of poor organisational configuration. However, the problem of organisational configuration is not just restricted to understanding markets, with poor configuration being found in a number of key areas, including hospitality SMEs' relationships with their customers, which are fraught with uncertainty. There is an acknowledged advantage in that small firms are closer to the customer, enabling more personal relationships to develop (Crook , 2003). However, this is tempered by the danger that having a limited customer base (Gray, 2005) facilitates the development of deferential supplier-customer relationships. Research by Harrison (2003) concludes that, apart from those firms which operate only in very low profit or niche markets, hospitality SMEs are consistently found to be subservient to their larger counterparts. This view is supported by Wong (2005) who suggest that hospitality SMEs have a lack of control over their futures because of demands made by stronger customers throughout the supply chain. An additional burden is a lack of power to leverage payment of debts from these customers, as noted by (Okumus, 2003), who point out that many smaller firms are "afraid to press customers too hard for payment for fear of loss of future business". It is this scenario which most severely affects hospitality SMEs as their limited resources cannot cope with the fluctuations in cash flow that late payment inevitably brings. The overall effect of the fiercely competitive environment in which hospitality SMEs operate is that, very often, strategic planning becomes a seemingly pointless exercise, again lowering competitive advantage through poor organisational configuration. Tangen (2004) points out that unless the internal structures and the external competitive environment of the hospitality SME are effectively aligned with its strategy, it is unlikely that it will ever be implemented successfully. The difficulties associated with aligning strategy to the external competitive environment led ( Harrison, 2003) to conclude that the majority of hospitality SMEs in the automotive sector are not concerned about future strategic developments, as survival in the supply chain requires them only to maintain a reactive strategy. In addition, McAdam (2004) found that it is not unusual for firms to retain the original strategy developed by the founder, thereby leading to a "strategic hangover", which, if the competi tive environment or the company structure has changed, may actually be detrimental to future business success. Furthermore, there is evidence to suggest that many established hospitality SMEs rely solely on internal or financial planning as their main approach to preparing for the future (Crook, 2003). This might be due to the fact that accountancy information has been shown to be the most important factor in determining survival or

Discuss religion and religious freedom in Somalia Essay

Discuss religion and religious freedom in Somalia - Essay Example The paper begins by explaining the meaning of religious freedom, and then goes ahead to explain religion and religious freedom in Somalia. Freedom of religion is the individuals right or freedom to hold whatever religious beliefs he or she believes to be the best for him/her. Religious freedom, also known as the freedom of worship, allows people to freely practice their religion as long as they don’t infringe upon the rights of other people by practicing their preferred religion. Religious freedom is one of the basic human rights universally recognized. Somalia is a country found in the Horn of Africa; Somali borders Ethiopia to the West, the gulf of Eden to the north, Djibouti to the northwest, Kenya to the southwest, and Indian Ocean to the east. Somali is predominantly a Muslim country; majority of the Muslims in Somali are Sunni Muslims, according to the Pew research conducted in 2010, 99.8% of Somali people are Muslims (Pew Research Centre, n.p). But, there are also a few other religions in Somalia, although these other religions have very few followers; Christians are minority in Somalia and they constitute less than o.1% of the Somalia population. According to the Catholic diocese of Mogadishu estimates in 2004, there were less than 200 Catholics in Somalia in the year 2004 (The economist, 22/10/2009). The Mogadishu Catholic diocese is the only Catholic diocese in Somalia. Besides Muslim and the few Christians, there are religions in Somalia. According to the Pew Research conducted in 2010, the other religions in Somalia, in cluding Hinduism, Judaism, and Buddhism constitute less than 0.1% of the Somalia population (Pew Research Centre, n.p). For better explanation of Somali religion and religious freedom in Somalia, it is important to briefly look at the political situation in Somalia because religion and politics in Somalia are inseparable. This is because the constitution of Somalia

Yundi Li's piano concert Essay Example | Topics and Well Written Essays - 750 words

Yundi Li's piano concert - Essay Example The paper tells that Yundi has a very fantastic interpretation and recreation of the Scherzi. This may be the first time that the ‘chopin humour’ is heard in any of these pieces. Yundi is also keen on giving the much needed emphasis to the left-hand, where one only wonders, isn’t it just amazing that someone can actually play in this way? Then in comes the Liszt Sonata. The Liszt Sonata is among the best recordings ever. Yundi gives it justice with his amazing skill and passion. It is now evident that Yundi is not just any other virtuoso. Yundi is impressed by the amazing and shattering way especially on the emotional part of the piece, at that point where Liszt struggled with his other side character. Yundi’s mastery of every subtle nuance for each lyrical part of these pieces in music is just amazing as it is not often heard from other artists. There are also smooth transitions from one theme to the other, and the audience is seen to be obviously moved an d is in sync with the performance, where you get yourself asking, is there going be Liszt’B Minor Sonata better than this? Yundi is seen to be one of very deep feeling as he plays, as it is not always, that’s one will find a pianist gets immersed very deeply in the music during their performance. We can say that music flows out of his fingers and in a very natural way which results in such a very deep feeling. As a gifted young artist, Yundi Li, uniquely distinguished from most his contemporaries by his ability to put a personal stamp on each work, and putting eccentricity to very fine detail. He is an inspirational artist that is keen on delivering performances of equal and standard quality, outlining different circumstances. Skill is portrayed in the first Scherzo as he plays with controlled wild abandon that matches its temperament. There are very slim chances of none of hearing another performance which so clearly risks everything for the inspiration of a moment. T he same can be seen from the three Scherzi that follow. He plays with the equal heroism of the second and is balanced more by the brooding character seen in the third, and the fourth which is slightly lighter. The Liszt Sonata which is mighty and greatly difficult to control is brought to its knees as Yundi plays it with such amazing virtuosity, which he combines with such breathtaking sensitivity. The Liszt seems to break under its great length and its varying mood swings, which later starts to grow in its stature as it goes on. It is not surprising that by now the audience grows ecstatic as it responds to the now built unforgettable event. One

Impacts of the French and Industrial Revolutions Essay

Impacts of the French and Industrial Revolutions - Essay Example Before the Revolution, many European countries and leaders thought of democracy as an unworkable political system. Nevertheless, the perception of the political system that was participatory and popular only began to take shape in Europe after the advent of the French Revolution (Western Civilization, 2012).The French revolution also brought about religious tolerance. Before the French revolution, there were several instances of religious feuds and tensions among Christians and Muslims. This is because Islam was not given much recognition. However, this changed immediately after the French revolution where different religions started getting recognition across Europe (Western Civilization, 2012).   The impact of the French revolution on politics could also be seen in that it caused nationalism and the idea of one nationality in one country. This ideology later resulted in the development of new refugees, known as political refugees. This gave the government the power to have greate r influence on people in Europe. Olwen (1992) points out that the French Revolution was fundamental in making the obligation of the government central to political affairs. In this regard, he reveals that the state became the all-universal power of nations in lost cases. To prove his argument, he lists several European nations which underwent democratic meltdowns before becoming dictatorial states. Some of these include the Soviet Union, Italy, Hungary, Albania, Turkey, Portugal, Germany, Greece, Lithuania, Hungary, Australia.... Historians argue that before the French revolution, there were several human rights violations as people were denied the freedom of movement and speech. These were only allowed for those in power. The French Revolution created a perception of universal human rights (Olwen, 1992). Before the Revolution, many European countries and leaders thought of democracy as an unworkable political system. Nevertheless, the perception of the political system that was participatory and popular only began to take shape in Europe after the advent of the French Revolution (Western Civilization, 2012). The French revolution also brought about religious tolerance. Before the French revolution, there were several instances of religious feuds and tensions among Christians and Muslims. This is because Islam was not given much recognition. However, this changed immediately after the French revolution where different religions started getting recognition across Europe (Western Civilization, 2012). The impact of the French revolution on politics could also be seen in that it caused nationalism and the idea of one nationality in one country. This ideology later resulted in the development of new refugees, known as political refugees. This gave the government the power to have greater influence on people in Europe. Olwen (1992) points out that the French Revolution was fundamental in making the obligation of the government central to political affairs. In this regard, he reveals that the state became the all-universal power of nations in lost cases. To prove his argument, he lists several European nations which underwent democratic meltdowns before becoming dictatorial states. Some of these include the Soviet Union, Italy, Hungary, Albania, Turkey, Portugal,

StockTrak Investment Strategy Assignment Example | Topics and Well Written Essays - 250 words

StockTrak Investment Strategy - Assignment Example The fund goals operate differently. While a growth fund focuses on specializing in an investment that promises to improve in value with time, income funds chose investments that promise to generate revenue (Fidelity). The growth term is, however, more attractive. The above mentioned is an investment strategy whose ground is based on the prediction that investments that are long-term. Are clinched through avoidance of incurring significant losses while working on accumulating reasonable gains (Weil). Therefore, the fund manager strives to stimulate upside returns and, on the other hand, reduce on downside exposures. Making losses is a significant lead to failure in investments. Therefore, this approach is tailor made to limit any possibilities of investment failures. Investing 57% of the total funds in equity shares and the rest percentage in bonds would be a strategic move. After that, making additional investments of 18 equity shares through purchases and sales of shares for different companies would increase chances of meeting the objective. Purchasing shares is results to a long position while selling them is a short position. Observing the stock trend allows for making analyzed decisions in buying and selling the shares. In case there are higher chances of the lowering in prices, then a short position is more appropriate but if the prices increase, a long position is better. Since the company here is looking into investing in varying business firms, bonds and shares, a top-down approach would be the best. The approach mitigates the associated risks of making losses. In addition, the approach facilitates the analyzing of the best company in which to

Love. Flower Arranging PowerPoint Presentation Example | Topics and Well Written Essays - 1250 words

Love. Flower Arranging - PowerPoint Presentation Example The first teachers as well as students were Buddhist members and priests. As time went by, there was the emergence of other schools and the styles changed. Ikebana became a practice and custom among the Japanese people and their society (Ember& Ember, 5). It is stated that until 1868 it was the Japanese men who ordinarily had the skills to make flower arrangements. After the start of the 20th Century, women began to enjoy the practice and they dominated this discipline. In the United States and England, the lush Victorian style of flower arrangement made way for a simplified modern way that was influenced by the Japanese practice of Ikebana. Around the 1930s, there emerged garden clubs that were supported by women who were influential. The practice became popular as more women began to adopt the practice (Fairchild, 112). Women became obsessed with flower arrangements in weddings, tea parties and to decorate their homes. Men, thus, arranged flowers as frequently as tradition called and required them to, but with the practice becoming female dominated, they did not practice the art of arranging flowers as a hobby (Leaman, 45). Presently men are turning to the practice. For instance, in Japan, the male workers are turning to the country’s traditional art form or arranging flowers that was female dominated. They are turning to flower arranging as a way to relieve stress (Lover). In America, men are attending classes to learn the art of arranging flowers (Clarke). The practice of flower arrangement that begun in Japan among men gradually became a common practice among women (Sato and Yoshimura, 200). History has thus repeated itself. The Buddhist priests and noblemen who initially took part in the practice left the art to women. The men managed many flowers arranging schools; however, mostly women dominated those classes. Presently, there is no practice dominated by one gender.

More sports in school Essay Example for Free

More sports in school Essay More Sports in School Did you know six of seven of the world population like more than one sport? Our school needs more sports. Some of the students like sports, but we do not have enough sports. Some students want to be a player when they grow up. Sports make your body stronger. We need more sports for the students, so they can become talented. Students can learn about teamwork, leadership, and sportsmanship. This can contribute to their development as solid citizens. According to the American Academy of Child Adolescent Psychiatry website, in two thousand eight between sixteen percent and thirty three percent of children and teens were considered obese. In organized team sports, students work together to accomplish a task and learn from their mistakes. Nicole M. LaVoi wrote school should have more sports to have fun, mastery, teamwork, and become professionals. There are a lot of sports like soccer, basketball, tennis, football, volleyball, hockey etc. Website: http://blogs. edweek. org/edweek/schooled_in_sports/2013/10/ny_times_hosts_roundtable_ on_ pros_and_cons_of_youth_sports.html Academically weak students are able to excel in sports and are challenged to improve their abilities. Furthermore, D. E. builds teamwork and units thee class as a group, living cultural or social background behind. In doing sport on regular basis, students become fitter and thus. Their self-steam is increased, but most importantly, it is fun. Many students who do not have the opportunity to participate in physical activities outside of school are thankful to do sports in school. If student enjoy sports they are more likely to care about education in general and in doing so improve their schoolwork. Sports only keeps the students healthy, but also gives them a fun break of other schoolwork. That is approximately one in four children who is over the suggested body fat limit for their age. Anyone is able to participate in sports and since a D. E. program in school offer different kind of sports. Some students argue about the fact that school should only be and not fun, because they are two different things. The time should be used to study instead of doing D. E. just the contrary is true. There are schools where students have D. E. lesson every day. org/essay/sports-is-a-necessary-part-of-168936. html Sports can help the students to improve their abilities. Sports are fun and students were exercising while playing sports. Soccer is the most exercised sports, because you have so much running to do. If there are more sports in school, it will be easy for the students to become talented and to be professional players. If student enjoy playing sports their more likely to care about their education. Sports keeps you physically fit, mentally strong, builds characters, and it is a way to take your mind off of school and other things.

Case Study of Strategic Management at Honda

Case Study of Strategic Management at Honda Why do you think Honda has chosen this strategy? Is this characteristic of the company and industry? Should Honda pick one upon which to focus its efforts or is it important for Honda to pursue synergies (and preserve its options) by developing and promoting multiple technologies? The Honda is developing environmental friendly auto mobile and maintain global point of view with the loyalty of supply high quality product. Honda strategy has consistently emphasized innovation, environmental friendliness and independence. Innovativeness they are always engaging with research and development to develop multi-technology and environmental friendly automobiles. As a result from 1946 to 2010 Honda had proven their capability. They are acknowledged leader in the development of hybrid cars and gains mars market acceptation. An environmental friendly automobile was not a new strategy for them. In fact they work on developing cleaner transportation alternatives had begun decades earlier. Honda hybrid model are designed for fuel efficiency. It will be supporting to reduce natural recourse depletion. From 1999 Honda won the different accolades from environmental group. Independence is other emphasizes strategy of their business. Honda choose not to collaborate or licensing its technology to others. They want to maintain their independences and essentially going solo. How do I analyze the reason for choosing this strategy? The reason for choosing this strategy is Honda will be supporting to reduce natural recourse depletion, to become environmental friendly. Since Honda has a long track proof of developing environmental friendly and multi technology automobile In July 2002, Honda has succeeded in manufacturing the first fuel cell vehicle with applicable industry standards. It has taken 51 years as of 1997, for Honda Corporation to launch hybrid vehicle Insight ever though Honda was founded in 1946. Starting from developing of engines for bicycles, then moved in to sports cars, establishment of 100 factories in 33 countries, while maintaining steadfastly independence of the company since 1956 and grown into one of the worlds largest automobile manufacturers not an easy task. I believe the bottom line of the story behind this is the strategy adopted by Honda. Even though the numbers of hybrid vehicles sold in 2000 2004 were very small with many obstacles, when compared with the other traditional automobiles, I say, the achievement in 2002 is mainly due to the strategy adopted by the company as Honda steadfastly maintained its independence. Final outcome of most of the research and developments takes time. It needs investment from the company as well as the high level support from the overall business strategy of the organization which involve risk but potentially profitable business opportunities in time to come. Licensing and joint venture strategies are powerful strategies in common in any industry as well as practiced by Toyota in this case study. The hybrid product develop by Toyota also has its own advantages and disadvantages where the same situation applicable for Honda hybrid cars. I agree, with the style of Hondas management where they have kept the business development exclusively in-house with all aspects of a technology, from its strengths to its weaknesses. In addition to that in-house know-how has led to maintain competitive advantage which was difficult for competitors to imitate. That is why Honda has succeeded in manufacturing the first fuel cell vehicle with all applicable industry standards in July 2002. Is this characteristic of company or industry? This is a characteristic of both company and industry, because there is demand for all types of vehicle. Honda stepped in to automobile industry at 1963. But Honda has quickly leads the superior of fuel economy, thats the characteristic of industry. Since founding Honda they are gradually introducing new technology, there for their growth rate is superior, there stability and quality demonstrate the industry characteristic. Today the business environment is in highly turbulent and corporate strategy plays a vital role in a diversified firm. In order to achieve long term success of a firm they should lay down aggregated strategies in cost leadership, differentiation or focus on the right markets through their business strategy. Those are the bottom line characteristics of a company as well as in the markets. Car manufacturing industry also has its own characteristics when compared the other industries. When acquiring new knowledge the company needs to win hearts and minds of the consumers as the competition is in full scale especially in car markets. Therefore, it is understood and confirms the overall corporate strategy of Honda matches with the characteristics of a company as well as different markets. Otherwise Honda may not be able to sell cars in US, pass all industry acceptance tests. 1.3 How Honda should pursue synergies in the company? Their investments basic research and development helps to the company to stable in the technology boundary and be a first mover when commercial versions of technologies are ready to be rolled out. Their culture seems to place immense value on introducing environmental friendly vehicles. By developing and promoting multiple technologies they believe ultimately are a dominant auto type. Company is an association of persons who are united for a common purpose. In the car manufacturing sector they transform raw materials to the finished goods on a large scale and expected to sell to the wholesalers or retailers where end users or the consumers purchase goods after launching. Form the scraps to the finished product the company needs to work on a strategy and the overall Business strategy of a company should be cerate synergy and finally achieve competitive advantage as a whole. Therefore Honda should know which business they should be in the expected markets. Finished goods have to undergo all types of economic systems at a profit without making losses under various policies and regulations adopted by deferent Governments of the respective market places. Therefore company has to have overall business strategy while maintaining synergy. It usually arises when two persons or more than that works together. Different complementary skill creates synergy which can contribute a lot in achieving competitive advantage as a whole in an organization. According to the data table given in the case study on 2005 Honda and Toyota U.S. Hybrid Sales it is understood different models like Honda Accord, Civic, Insight has a market even though the sales figures are less when compared with sales in Toyota. I believe being a mass car manufacturer like Honda should pursue synergies by developing and promoting multiple technologies for different target markets. Does having a single environmental friendly car standard benefit or hurt consumers? Does it benefit or hurt car producers? Standardization of a certain technology is the process of brining order into an otherwise chaotic system that adheres to no strict rules of conduct, thus entertaining a significant amount of freedom in expansion and growth. In my opinion, standardizations does more harm to a technology still in its infancy than good by bringing order and governance to the domain. Every scientific study and resultant technologies should be for the benefit of the mankind and its consumers, even though there are countless examples contradicting this fact. But with the dominance of the consumerism in current world, we cannot neglect to include the impact of standardization of these technologies in this discussion. Having environmental friendly Hybrid eclectic vehicle is benefit as well as hurt to consumers. We can argue as both ways. Consumers are well educated and well informed over what they need and what they want. The marketing oriented management dictates that business organizations should listen to their customers and fulfill their requirements in order to generate higher profits and sustain customer equity. Since Environment Friendly Motor Cars is a relatively new market with fewer well versed consumers, it is important that they are allowed to explore and figure out what suits them the best. Current market situation is best used as a test ground for the new technologies and innovations. Once all the scientific tests are performed on a new technology, it should be subjected to the test of ubiquity and acceptance of the market. Therefore I strongly believe that availability of various options is for the best of consumers that this point. One standard means lesser confusion for the consum ers for sure. But it would also limit the potential they can expect from their motor vehicles. Availability of many peer technologies under testing level at the same time in the market will make sure that an inefficient technology would not monopolize over an unsaturated and newborn market. In the perspective of motor car producers, there is an overhead in funding resources on a number of technologies instead of one standard. But this gives them the flexibility to explore deeper into technologies and come up with better and efficient inventions. They dont have to limit themselves with standards and risk being obsolete not adhering to a market accepted standard. Their investments may not always lead to successful and marketable inventions. But the knowledge and experience they gain by working on multiple technologies is invaluable and can be put to use for the betterment of future product developments as well for the growth of the industry as a whole. This will render both direct and indirect benefits for car producers in general without having to get stuck on one technology that could be standardized, yet soon rendered obsolete when the next breakthrough in the industry comes along.