Thursday, October 31, 2019

Homelessness Essay Example | Topics and Well Written Essays - 750 words - 3

Homelessness - Essay Example These people include those who live in sub-standard housing or in overcrowded or undesirable conditions, persons who sleep in a public or private place not designed for human sleeping, those who reside in a homeless shelter, a domestic violence centre. Causes of homelessness vary from but generally include high unemployment rates, family violence, closure of large mental facilities, weak family ties, political instability, rising housing costs, poverty, drug abuse, natural calamities, and the cancellation of government-supported housing programs (Hargrave Web). In any given night in America, about 750,000 men, women, and children are homeless. Single men who are homeless amount to 44 percent, single women 13 percent, families with children 36 percent, and unaccompanied minors seven percent. In totality, about 50 percent African-American, 35 percent white, 12 percent Hispanic, 2 percent Native American and 1 percent Asian are homeless (Chicago Alliance Web). The big question remains t o be how we can remove the homeless from the streets in a reasonable manner. I strongly support that we can remove the homelessness from the American streets by offering financial, material, or informal jobs. Probable solutions are on trial regarding the issue of homelessness and there is a belief that this is possible. Indeed, Homeless International  supports slum dwellers to improve their lives and find lasting solutions to urban poverty and homelessness (Homeless International Web). Additionally, The Housing First strategy from a Harlem-based group proposes a solution to the homelessness menace by providing financial support. Moreover, the Project Downtown in Miami offers significant moral and material support to the homeless hence promoting their probable exit from the streets (Project Downtown Web). In fact, Atlantas Mr. Sibley argues that once a person has a decent place to live, then he can precede his life from there. In addition, The Everyone Deserves a Roof nonprofit

Monday, October 28, 2019

Hip-hop Essay Example for Free

Hip-hop Essay Sociologists say that the styles in music, literature and other arts are reflecting the processes that take place in the society where they emerge. Hip-hop culture gained power in ninetieth America. Nowadays various opinions exist about the nature of this phenomenon. David Abe said in his article ‘Tupac Plus 10: Hip-hop’s Diminished Potential’ that hip-hop had the power to change the world back in ninetieths, but due to commercialization its potential â€Å"had significantly diminished†, while David Brooks wrote about hip-hop romanticizing crime and violence against women, calling it a â€Å"culture of resistance† in his New York Times article ‘Gangsta’. The music of the rebels, of youth that felt they had no place for them in the society they had been raised in, hip hop became a way to express their thoughts and feelings. Hip-hop was music for youngsters who were not afraid to declare they wanted to change the world, and young people rarely share a non-resistance tactic. Hip-hop explained the world was corrupt, but the only way out it offered was active resistance – antisocial behavior and crime. This kind of ideas tends to attract lots of youngsters, and huge flocks of people around some idea tend to attract money. Soon hip-hop became business, like lots of culture phenomena before. The idea of hip-hop has deceased at the moment it became a merchandize available in nearest mall. Young and poor people in USA and outside it usually do not have means to change the world they live in. They dwell in slums, do not have medical insurance, their chances to get decent education and job are poor. Violence becomes their only way to express their anger and disappointment, and a seemingly easy way to get the things they see on TV and in fashion magazines, like expensive closes, gadgets and money. Hip-hop and rap music describe this problem-solving method in detail, and it is often introduced as the right thing to do, the one that makes boy a real man. â€Å"The gangsta is brave, countercultural criminal† – says Robert Brooks. It builds the image of â€Å"strong violent hypermacho male, who loudly asserts his dominance and demands respect†. And it is no wonder this image attracts ghetto teenagers from all over the world. There is some bond between Robin Hood and gangsta, as they both have this image of the noble bandit. Being gangsta means being â€Å"cool†, being powerful and able to change things that ought to be changed, it means becoming respected and significant. Violence especially that against women is seen at this context as one of the ways to prove significance and masculinity, and assert one’s right to get everything desired by force. In the same time Xzibit, a famous American rapper proves that rap and hip hop should not be blamed for its negative imagery. â€Å"If society wasn’t violent†, he says, â€Å"then hip-hop wouldn’t be violent. You can blame hip-hop but we’re like reporters; we tell you what’s going on in the neighborhood, and we tell you how it is. † Xzibit insists that hip-hop is just a mirror, where all the societal imperfections and problems are reflected. Thus the youngsters who listen and sing hip hop are just confessing about the things they see, and the world they are living in. Before blaming rap music and videos for encouraging children and teenagers to commit violent acts, people should try to find out why is this music so popular among them. Why American teens and young adults, at list part of them, want to listen and watch songs, clips, and movies where people abuse, rape and kill each other? Maybe something is wrong with the educational system, as it’s unable to persuade the youth in the futility and danger of violence, to teach them that their goals can be achieved using other methods? Or the problem lies within the society that cannot offer some of its young inexperienced members other sphere for actualizing their potential than that of crime and violence? Some journalists and psychologists prove that rap videos are just one of the ways of â€Å"selling† hip-hop culture. It’s true, that for many of the rap singers their music is just the way to earn money and popularity, thus they fill their songs with the content that sells successfully. Unfortunately, there is always a demand for violence on our market, and hip-hop is a good form for selling it. David Abe noted that: â€Å"†¦the content of the most requested rap songs and videos overrun in an exaggerated manner by rims, jewelry and thongs, as the business model evolved. † Now hip-hop is quite a profitable activity to be involved in, as Forbes. com website announced that in 2006 the earnings of such rap stars as 50cent, Jay-Z, and Sean â€Å"Diddy† Combs were $33 million, $34 million, and $28 million accordingly. It proves that there is quite a demand for the culture of resistance on worldwide market. Actually hip hop culture, which had been a culture of resistance transformed into a notion of culture of resistance that could be sold and bought in the department stores. Now hip-hop is not an element of cultural resistance, it is just an image of a social position, and even a fashion trend. David Abe proves that nowadays hip-hop â€Å"consistently fails to challenge and inspire critical thought in the people who listen to it† †And the more commercialized hip-hop becomes the more fans it has, as the thing that can be bought and sold is understandable to most people, while concepts that require some brain and spiritual efforts for understanding them are not very popular nowadays. At the beginning of the history of this cultural phenomenon it really had potential to change something, to influence the opinions and actions of people. While there were real emotions behind the words of the songs, while singers told about the things they saw, and that bothered them, asking their listeners questions they were encouraged to answer by themselves, hip-hop was an instrument to make world a little better. In the same time there always existed danger that young listeners would accept role models from often violent hip-hop lyrics. But in the end of ninetieths, when money came to hip-hop culture, hip-hop became the culture of people who wanted to look â€Å"cool† and to act â€Å"cool†. Its change-driving potential diminished; nowadays most of hip-hop lyrics telling about violence has no inner sense in it, no ideas of cultural resistance and changing the world, just poor role models for youngsters. Works Cited 1. Abe,D. ‘Tupac Plus 10: Hip-hop’s Diminished Potential’. The Times 2. Brooks, D. ‘Gangsta’ The New York Times 10 November: A29 3. Goldman, L. ‘Forbes And 50 Cent Get Money’. Forbes. 7 Seb 2007. http://www. forbes. com/home/media/2007/09/18/igetmoney-remix-50cent-biz-media-cz_lg_0918bizigetmoney. html 4. Rodriguez, K. Xzibit Defends Rap Lyrics, Hip-Hop Stigmas. 19 Sep 2006. http://www. nobodysmiling. com/hiphop/news/86714. php

Saturday, October 26, 2019

Facts About Burger King Holdings Marketing Essay

Facts About Burger King Holdings Marketing Essay Burger King (BK) is the second largest fast food hamburger restaurant (FFHR) in the world with operations in 74 different countries. Its major competitors are McDonalds, Subway and Yum! Brands. BK was ranked among Americas 1,000 largest corporations by Fortune Magazine in 2008. Further, Burger King is listed among one of the Top 100 Best Global Brands. History The history of the brand Burger King refers to 1959, when J, M and D.Edg purchased the firm from the original founders. Company was run as an independent entity for eight years, eventually expanding to over 250 locations in the United States, but in 1967 due to some reasons, baking giant Pillsbury repurchased Burger King. In 1978, when McDonalds executive Donald N. Smith came to renovate the company BKC was prominantly modificated in terms of its franchise agreements, strategy, menu, and restraunt look out. But Poor operating performance and ineffective leadership weight down the company during many years, even after Diageo, the global alcoholic beverages company baught Burger King in 1989. Eventually, Diageo damaged the company by neglecting the brand, and major franchises were driven out of business and its total value was significantly decreased. In 2002 Diageo divested itself of the money-losing business and sold Burger King to a group of investment firms lead by TPG Capital. Aft er this acquisition, many positive changes started to happen to Burger King. One of the major issues was first public offering in 2006, which was highly succefful. But there were some spots on Burger King reputation. The case of unsauccessful Buck Double campaign, which promoted $1 burgers, provoking the lawsuits from franchisees, unhappy with selling at a price lower than production costs. Those events somehow were reflected on the BKC stock behavior. By the time the ordinary stock of Burger King was selling at $16 per share, another interesting and totally unexpected thing shocked the global business community. On September 2, 2010, a Brazailian company 3G Capital Management LLC. Announced decision to acquire all the stocks of Burger King for $24.00 per share, or $3.26 billion in aggregate including Burger Kings outstanding debt. As the purpose of this report is to analyse the current state of the company and give recommendation upon this recent transaction, further in this paper we will answer whether it was good or bad acquisition. Key People of Burger King John Chidsey, Ex-CEO, currently is a Co-Chairman of the Board BK Inc. He joined Burger King Corporation as an Executive Vice President and the Chief Administrative and Financial Officer in March 2004. In fact, his effective leadership and strategic thought brought company to a quite successful level of performance. His wide range of responsibilities included monitoring franchise and company operations, finance, corporate strategic planning, and oversight of the annual budget, the information technology function, risk management, and corporate procurement, as well as the Franchise Financial Restructuring Program (FFRP). Mr. Chidsey obtained Doctor of Jurisprudence and MBA from Emory University. Therefore his academic background in law and business, overall professional skills and previous experience bring unprecedented value to the company. As from the recent news, John Chidsey is going to resign from the board and will be employed with BKC until the April 18, 2011. Ben Wells CFO and Treasurer of Burger King, who has more than 25 years of experience in financa. He repots directly to CEO and proves himself as a key member of the executive leadership team. Before joining BKC he held a position of vice president and corporate treasurer at Compaq Computer Corporation, when he successfully led the finance team in stabilizing finance and accounting operations.He also was employed by such famous corporation as British Petroleum and Hewlett Packard. Possessing degree in economics and business administration (University of Missouri, Texas AM University, Canisius College), he is capabable for building a world-class treasury organization and developing capital structure and risk management programs for the global organization. Alexander Behring Co-Chairman of the Board BK Inc. and Managing Partner of 3G Capital Management LLC. Experienced engineer and successful private equity manager, he is the one, who was behind the $4bn takeover of BKC. Becoming one of the inflluential investors of Brazil, he started and lead America Latina Logistica, the biggest railroad and logistics corporation in Latin America. Mr. Behring holds MBA from Harvard Business School and Bachelors Degree from Pontifà ­cia Universidade Catà ³lica do Rio de Janeiro. Bernardo Hees new CEO of Burger King Inc., since September 2010. Previously, he was Chief Executive Officer of America Latina Logistica (ALL), as a successor of Alexander Behring, since January 2005 and served on its Board of Directors. B. Hees is an experienced executive with an impressive track record of enhancing performance, managing a team that drove strong gains in both revenues and profitability. He obtained MBA from the University of Warwick and passed Owners-Presidents Management program at Harvard Business School. According to his sound resume and reputation, he can be fairly considered as an excellent steward of the Burger King brand, inspired by the intention to take company to the next level of competition in the U.S. and worldwide. Business Model of Burger King: A business model is a plan implemented by a company to generate revenues and make profits from the operations it performs. (Investopedia, n.d.). Burger King uses the franchise business model to generate profits. Under the franchise arrangement, the franchisees invest in the equipment, signage, seating, and decor of the restaurant, while the company owns or leases the land and building. The company generates revenues mainly from three sources: sales at the company restaurants, royalties and franchise fees, and property income from certain franchise restaurants that lease or sub-lease property from the company (Datamonitor, 2010). Resources of the Company Reagrding the resources available for sustainable comptitive advantage, those resources are classified into tanbgible and intangible. As Burger King is a well-establiched global corporation, it has formulated very strong basis for its worldwide operations. In fact, despite of performing in the fast paced indutsry and facing the risk of once to become unclaimed due to unhealthy food provision, as consumers may change their preferences, BKC definitely creates a unique line of products. For instance, famous Whopper sandwich, CroissanWich, flame-broiled hamburgers and etc. Burger King proves itself as genuinly global company by localization of products versions by adding ingredients such as teriyaki or beetroot and fried egg to the Whopper; beer in Germany, Italy and Spain; and halal or kosher products in the Middle East and Israel. They property counts for almost 12 000 restaurants worldwide, of which 60% is concentrated in US and Canada, and 40% is internationally spread. Regards the intangible assets, highly quilified and experienced executive management team is a great value to Burger King, promising effective operations and high and stable earnings growth. While globally recognised brand Burger King is another powerful asset to corporation, as well as reputation and products assocated with it. And last, but not the list is the Knowledge, which mainly brought the Burger King fame for its products. They definitely possess unique production technology, which is constantly updated and successfully implemented. Strategy Analysis Business Strategy Analysis From pdf Business Strategy Analysis helps us evaluate the sustainability of the firm. BK strives to implement the following elements into its business strategy in order to grow. Further drive sales growth: BK is attempting to increase sales growth by enhancing guest experience, expanding hours of operations and emphasizing on restaurant reimaging program. All this is expected to result in higher sales and traffic in these restaurants and yield strong cash on cash returns. Enhance restaurant profitability: BK endeavours to enhance restaurant profitability by leveraging their fixed cost structure by introducing higher margin products and creating efficiencies through improved speed of service and equipment. Further, BK utilizes market based pricing model to achieve optimal pricing in the highly competitive market environment, thus making it a market follower. Employ innovative marketing strategies and offer superior value and quality: BK employs innovative and creative marketing strategies to increase their restaurant traffic and comparable sales. BKs whooper has been one of the best known products in the fast food industry. In addition, BK has also launched AngryWooperTM sandwhich, BK Burger Shots and BK Breakfast ShotsTM in the U.S., the King DealsTM in Germany, the U.K. and Spain and the Come Como ReyTM (Eat Like a King) every day value menu in Mexico. Further, their advertisement campaigns have always created a buzz and improved their visibility in the market. Expand our large international platform: Presently, BK is concentrated in the US and Canadian markets only, therefore they have a significant growth potential in international arena. BK has realized this and has developed a detailed global development plan to accelerate growth over the next few years. However, entering into international markets is tough because McDonalds already has its presence in almost all countries of the world. Further, BK fails to mention the strategy with which they plan to enter international markets. This maybe because they do not want to divulge their strategy to their competitors, or because they do not have a strategy which can provide them a competitive advantage over McDonalds. Use proactive portfolio management to drive growth: BK intends to use proactive portfolio management to drive growth and optimize their Company restaurant portfolio and franchisee participation in new and existing markets, while maintaining our 90/10 franchise to Company restaurant ownership mix. Between April 2008 and May 2009, BK acquired 128 new restaurants in parts US and sold 39 Company restaurants to new and existing franchisee. In addition, they closed under-performing restaurants in UK and sold certain Company restaurants in Germany and Canada to their local franchisees. Thus, the business strategy focuses on driving sales in existing markets and striving for presence in international market. However, almost all quick service restaurants that strive for greater profitability follow a similar strategy. If BK wishes to have a greater market presence, then it has to keep coming up with new, innovative, and creative products and marketing campaigns as these are the only ways by which they can differentiate their brand. Further, we carried out the industry analysis (See Appendix X), and found that per se the industry has a good market potential. Moreover, as the global economic environment improves the industry would again be profitable as the consumers would again become price insensitive and companies coming up with new, innovative and affordable menus would have more power than the buyers and suppliers. In addition, the industry is forecast to increase by 19.2 % till 2014 and there is a growing demand of fast-food in the emerging markets like India, China, and Indonesia etc. Therefore, the industry has good future prospects if tapped in an appropriate manner. Based on the SWOT analysis (see Appendix X1), it can be discerned that the company understands that the only way to increase its profitability is through constant innovation and expansion into new international market; and given the brand reputation, the franchise mix and robust financial performance, we think the company has the capability to grow profitably in the future. 5. VALUATION The value of any security is determined by its quality and profit potential. The economic environment and industry in which firm operates also have inevitable impact. Hence, we valued of BKC by incorporating these factors into the analysis of BKCs stock value. It is well known that it is very subjective to valuate any company and its stock as the market is changing constantly and the market price heavily depends on peoples expectations and feelings. The good example might be Burger Kings market price that soared from $16.77 to $13.64 after the acquisition announcement (Appendix H). Most analysts use various valuation models to calculate whether a stock is overvalued or undervalued. Those models are just generally accepted ways of assessing a companys stock and make a recommendation. Thus, analysts should not rely on the results of these models only but also take into consideration performance of existing competitors. Using comparables, i.e. ratios of identical companies and their financial performance indicators, as an addition to the valuation analysis should give a better understanding of company health and what it stands for in the market. For that reason, we have imple mented several valuation models, including Dividend Discount Model (DDM), Market premium (MP) and Residual Earnings Model (RE), and compared BKCs performance to its major competitor McDonalds using financial ratios. It should be noted that for the sake of comparison, we have taken the financial data available at the end of fiscal years for BKC and McDonalds i.e. June 30th, 2010 and December 31st, 2010, respectively. Further, the spot stock prices are taken as of June 30th, 2010. 5.1 Performance [I THINK PERFORMANCE SHOULD GO IN HERE] 5.2 Dividend Discount Model Starting from year 2006, when Burger King was first listed on the New-York Stock Exchange, the company has paid the fixed dividend of $0.25  [1]  per share per year (Appendix A). Therefore, we do not expect any future dividend growth and assume zero growth for DDM valuation model. For simplicity, we use DDM-perpetuity and take required rate of return (k) as a discounting factor (r). Therefore, V = D/r à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ (1) According to The Capital Asset Pricing Model (CAPM), required rate of return (k) is calculated as follows: k = rf + B(rm rf) à ¢Ã¢â€š ¬Ã‚ ¦.. (2) where, rf = risk-free rate, B = beta, (rm rf) = market risk premium We have used risk-free rate of 2.92% from company report (Burger King Holdings, 2010, p.87), company beta of 0.80 was taken from on-line source (ADVFN, 2011) and market risk premium 6.75% from Journal of Financial Economics, which is a bit outdated but we believe that this type of market is even riskier then it was 10 years ago (Fama, 1997, p.172). Substituting the values in equation 2, we get k = 2.92% + 0.80*6.75% = 8.32% As mentioned before, since r = k, substituting the value of r in equation 1, we get V= 0.25/0.0832 = $3.00 (The value of BKCs share) However, as of June 30th, 2010 market share price of BKC was $16.84/share (Wikinvest, 2011). Further, in order to assess our valuation, we valued the share price of McDonalds share and got a valuation of $36.28 (for calculations, see Appendix G). However, as of June 30th, 2010 the share price is $65.87. As, McDonalds is more popular brand than BK, and its stock price is twice as high as the valuation figure, whereas BK King is way behind McDonalds but its price is five times higher than the calculated value. To investigate the reliability of this result we calculate the market premium of the BKs share. 5.3 Market Premium Model The measure of stockholders equity on the balance sheet typically does not reflect the intrinsic value of what the equity is worth (Penman, 2003). There is a definition of intrinsic value which states that it is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value (Investopedia, 2011). For that reason it is meaningful to see what extra price, or premium, the market pays for a particular security. In order to calculate market premium we use the formula (Penman, 2003): Market Premium = Market Value of Equity Book Value of Equityà ¢Ã¢â€š ¬Ã‚ ¦.. (3) Calculating the market value of BKC as of June 30, 2010, Market Value = Price per share*Shares Outstanding à ¢Ã¢â€š ¬Ã‚ ¦. (4) = $16.84*135.4m=$2,280.136m The Book Value of BKC = Total Shareholders Equity = $1,128.4m (Appendix C). Therefore, Market Premium = $1,151.736m. With Shares Outstanding = 135.4m, the Book Value per Share (BVPS) = $8.33 and Premium = $8.51. Indeed, the premium constitutes 102% over the book value. As compared to McDonalds, with 1,072m shares outstanding (Appendix D), McDonalds has a BVPS of $12.25 and the premium of $53.62, which is 438% higher than its book value. Thus, we may conclude that market is ready to pay quadruple premium for MCD, which indicates a great brand awareness and customer loyalty; however, they are still ready to pay twice for BKCs shares, which is a good sign for the stock evaluation. 5.4 Residual Earnings Model The residual earnings model relies on book value, which represents shareholders investments into the firm and measures value added to the investments. In other words, the book value of equity is taken and discounted back potential abnormal earnings are added to it. These earnings are returns to shareholders above their required rate of return. These earnings are important because otherwise the shareholders would have no objective to invest into the company if it break-evens at the minimum rate of return (Penman, 2003). Value = Book value + Premium à ¢Ã¢â€š ¬Ã‚ ¦. (5) or Value of common equity (VE0) = B0 + RE1/re à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ (6) where, re = required rate of return, RE = Residual Earnings for Equity Now, Residual Earnings = Comprehensive Earnings (Required Return for Equity * Beginning-of-Period Book Value) à ¢Ã¢â€š ¬Ã‚ ¦.. (7) BK reported $165.8 million of comprehensive income on June 30, 2010 (Appendix B) on book value of $974.8 million. If BKs shareholders required a return of 8.32% in June, 2010; then its 2010 residual earnings were: Residual Earnings = $165.8 (8.32%*$974.8) = $84.70 million The very existence of the residual earnings gives us a sign that Burger King is a good investment to get extra return on invested funds. Further, substitutiting the values in equation 7, we get: Value of common equity (VE0) = $974.8 + $84.70/.0832 = $1,992.83 million VE0/share = $1,992.83/135.4 = $14.72 Assuming that RE remain unchanged (g=0%), then the calculated the intrinsic value of BKs share of $14.72 is close to market price of $16.84. Obviously, market was aware of the existing premium and recognized it by setting market price at that level. 5.5 Summary The three valuation models have revealed Burger Kings financial performance from different angles. For the reason that todays market is different from yesterdays, the DDM model is not really appropriate for security valuation, because contemporary market is mature and, as we have observed, dividends do not grow along with growing earnings as used to be in the past. However, this model was implemented just to see the consistency and get a better understanding of the value of the stock. The market premium model gave us a good sense of what market is ready to pay for the BKs share and McDonalds share. Further, the residual earnings model is said to be more reliable as compared to the other two models because it uses book value of the equity as well as market premium model. Overall, it can be seen that BK per se has performed well in the market; however it has been far behind its main competitor McDonalds. 6. RISKS Burger King is exposed to a variety of risks (3G Capital, 2011). The most prominent and important risks come from internal characteristics of the firm and market-determined factors. Internal characteristics of the firm include: Business risk: This risk might arise as a result of decreasing demand due to changes in consumer preferences, possible suppliers delays or adverse economic conditions. Also, the business model is based on franchising contracts, so franchisees financial strengths and ability to manage increasing costs is also subject of risk. Financial risk: BK has long-term and short-term debt outstanding, so it should have enough operating cash to meet these obligations. According to the notes to companys financial statements, BK uses derivative instruments, such as interest rate swaps and foreign currency forward contracts, which imply a higher risk exposure. Legal risk: As every food company, BK is in charge of risk related to food safety and toys as promotional instruments in their restaurants, as well as any legal judgments and pressures from competitors. Country risk / Exchange rate risk: BK is an international company, therefore fluctuations in foreign currencies and adverse government regulations create substantial risk exposure. Reputation risk: Customers in FFHR industry are very sensitive to the reputation and brand awareness of the company. Market-determined factors include: Systematic risk: This is an unmanageable risk, which can arise as a result of recessions and wars. Analyzing the risk associated with the functioning of the company, it can be discerned that BK acknowledges that there are some risks associated with the business. And therefore, has some measures such as following a market based pricing model, using trusted suppliers, etc. for overcoming these risks (Annual report, 2010). Further, BK is still vulnerable to the unknown risks such as exchange rate risks and systemic risks. However, these risks are faced by all companies. It is just a matter of the way in which they respond to these risks that determines how they fair in the market. As for BK, the impact of the systemic risk is has been high as compared to its competitor McDonalds (Datamonitor, 2010). However, they have realized this and have tried to overcome these setbacks by implementing promotional, other price discounting actions, and closing non-profitable company restaurants. (Annual report, 2010) 7. CONCLUSION Based on our analysis of companys background, strategy and people, as well as industry analysis and financial performance valuation we discern that the financial performance of BK was stable and improving during last five year, and the valuation revealed that the market believes that Burger Kings stock is worth investing. Therefore, we can conclude that the company is financially healthy and hence the acquirer, 3G Capital, made a good decision. However, because the new management does not have any experience in the food industry and adding to this the current economic situation, Burger King might be in a vulnerable position right now. Further, in the industry analysis, on one hand, there was a threat of customers switching to the healthier options, which might imply a risky acquisition decision by 3G Capital. And on the other hand, there was a positive outlook towards the quick service restaurant industry, which is expected to grow at a rate of 3% per year. Analyzing the annual repor t of BK, we realized that BK is aware of these issues and has been trying to improve them by introducing healthier meals and innovative marketing campaigns. Moreover, the strategy of the company is very ambiguous. The strategies and goals of BK are very generalist and unclear how the management is going to achieve these. However, the new management might set a new and a sound strategy and provide necessary resources for achieving it. In conclusion, in light of the business strategy and the comparison of the performance of the company with its competitiors , we think that the BKs acquisition was hugely overvalued. However, because of the stable financial performance and positive industry outlook it was a good acquisition and if the new management is able to tap the potential in the existing and new markets in a appropriate manner then the companys growth potential is huge. [PLEASE FEEL FREE TO ADD/AMEND SOMETHING IN CONCLUSION] APPENDIX A Consolidated Statement of Income Burger King Source: Burger King Holding, Inc. Form 10-K, 2010 APPENDIX B Consolidated Statement of Stockholders Equity Burger King Source: Burger King Holding, Inc. Form 10-K, 2010 APPENDIX C Consolidated Balance Sheet Burger King Source: Burger King Holding, Inc. Form 10-K, 2010 APPENDIX D Consolidated Statement of Income -McDonalds Source: McDonalds Corporation, Form 10-K, 2010 APPENDIX E Consolidated Statement of Stockholders Equity -McDonalds Source: McDonalds Corporation, Form 10-K, 2010 APPENDIX F Consolidated Balance Sheet -McDonalds Source: McDonalds Corporation, Form 10-K, 2010 APPENDIX G Dividend Discount Model McDonalds For valuation of McDonalds share, we have used the same risk-free rate of 2.92% and market risk premium of 6.75%, company beta of 0.49 was taken from the same on-line source (ADVFN, 2011). Substituting the values in equation 2, we get k = 2.92%+ 0.49*6.75% = 6.23%. The dividend per share was virtually stable; therefore we took the figure of $2.26 per share, as of 2010. As, r = k, substituting the value of r in equation 1, we get V = 2.26/0.0623 = $36.28 Therefore, as of June 30th, 2010 market share price of MCD was valued using the DDM model as $36.28, whereas the spot share price was $65.87 per share. It should be noted that for the valuations using the DDM model, we take the same risk-free rate and market risk premium, because companies are competing in the same industry, however beta is different because MCD is more stable than BKC which is why the risk of volatility is lower. McDonalds price history Source: Morningstar investment research, 2011 APPENDIX H Price History -Burger King Source: Wikinvest, 2011 Industry Analysis: Using the Porters Five Forces Model (Datamonitor, Industry analysis) Porters five forces model helps in analysing the profit potential of an industry which would eventually help in determining a firms chances of generating long-term profits. (book) Bargaining power of buyers: The economic recession has strengthened the buyer power as the industry players try to secure price sensitive consumers using competitive pricing strategies. However, due to the sheer convenience of having fast-food makes fast-food more important to the consumer than a simple source of food. Therefore, the buyer power is assessed to be moderate. Bargaining power of suppliers: For a fast food company to make profits, it is vital that the company has reliable suppliers that offer food of marketable quality and at a low margin. However, a large number of these suppliers serve other kinds of foodservice and cost service customers, thereby decreasing their dependence on fast food players. Therefore, the supplier power is considered to be moderate. Threat of new entrants: As large capital reserves are not required for setting up a single, independent fast food outlet, the entry into the global fast food market is easy. However, to build a global brand requires precise market knowledge, an excellent management team, and an admirable brand reputation, therefore the threat from new entrants is assessed to be moderate. Threat of substitute products: The substitutes for fast-food include other forms of profit foodservice and also food retail (ready meals or ingredients for home cooking). However, these are considered to be unhealthy and take time in preparing, whereas convenience and availability are considered to be the main drivers for choosing fast-food. Therefore, the threat of substitutes is assessed to be moderate. Rivalry among existing firms: Rivalry in the fast-food industry is considered to be intense as the fast food markets can be very concentrated. The burger segment is close to being a Burger-King/ McDonalds duopoly. Further, prices especially of value meals and brand power form the greatest sources of competition in the fast-food market. SWOT Analysis: The SWOT analysis helps us determine a companys strengths and weaknesses, and then helps us evaluate whether the company has the ability to effectively exploit its opportunities and overcome its threats. Adapted from (Datamonitor, 2010) Strong market position and brand equity BK enjoys a strong market position and possesses an established brand reputation. This has enabled it to gain economies of scale, increase its bargaining power, and enter international markets. (Datamonitor, 2010) High franchise mix The company has franchise stores and company restaurants in the ratio of 90-10. This restaurant ownership mix provides BK with a strategic advantage as the capital required to grow and maintain the BK system is funded primarily by franchisees, while the Company restaurants give it a sizeable base to demonstrate credibility. (pdf) Innovative marketing campaigns and advertising to provide greater visibility BK uses innovative marketing, advertising and sponsorships to drive sales and generate restaurant traffic. The main target market of BK is the 18-35 year old male with a love of fast food. (Datamotiner, BKcase study). Therefore, its advertisements are made to appeal to this segment. Further, BKs advertisements campaigns such as Whopper Sacrifice campaign and Cheat on beef campaign help the company gain better visibility which helps it to have an impact on the revenue generating capacity. Weaknesses Declining comparable sales growth BK saw a decline in its comparable sales growth in 2009. This was mainly because of continued adverse macroeconomic conditions, higher unemployment, more customers eating at home, and heavy discounting by other restaurant chains. This only means that the management has to focus on various product offerings that cater to the value conscious customers during times of poor economic conditions. Concentrated operations-in terms of geographic presence and dependence on selected distributors increases business risks Although BKC operates in 74 countries, its operations are heavily concentrated in the US. Approximately 61% of its restaurants are located in the US. US and Canada account for about 68.7% of the total revenues, whereas BKCs competitor McDonalds generates only 35% of its total revenues from US. Concentrated operations increase the business risk of the company and impact its results of operations and thus its financial condition. Opportunities Expansion in existing and new markets BKC should focus on expanding into existing and new markets and the company has taken steps to expand into international markets. 2009 saw a 28% rise in new restaurants in international markets. The company also entered two new in

Thursday, October 24, 2019

Susan Brownell Anthony Essay -- Biography Biographies Essays Women Suf

Susan Brownell Anthony: The Mother of America If the Majority of this nation agrees that George Washington was the founding father of America, then Susan B. Anthony would have to be the founding mother of America. She was the ultimate leader in the woman's suffrage movement. The Suffrage movement started around 1840 and in a way, it still continues today. Women have only been voting for 84 years (in America) while men could vote from the start of civilization. In her time, women were not allowed to have anything under their name from the moment they were born. If anything had the potential to be theirs, it would instead legally be their father?s or male guardian?s until she was married. Even then, the object would be given to her husband because women were not considered to be worthy of such things. There was only one college in the whole world that admitted women and women doctors and lawyers were unheard of. Although women are still not treated with complete equality, the constitution fuly supports their right to defend themse lves. If the 19th amendment was not created in 1920, then it would have taken that much longer for women to gain respect. Susan B. Anthony revolutionized America?s outlook on women of all colors; without her, women would not have attained complete enfranchisement in 1920. Susan was born on February 15, 1820 in Adams, Massachusetts to Daniel and Lucy Anthony. She could read and write at the age of five and learned arithmetic even though most other girls weren?t allowed to. She continued her education at Miss Deborah Moulson?s Select Seminary for Females and became the assistant principal of a boarding school in New Rochelle (Untermeyer 61). When she succeeded a man to work as a teacher, after havin... ...or giving them every right that men have been given. There are a few people who still discriminate women, but because women have rights, they are forced to accept the equality of women regardless of their opinion. Works Cited Burns, Ken. ?Our Big Time.? American Heritage. Nov 1999: 98. Kowalski, Kathiann. ?Cady Stanton and Anthony Friends Fighting for the Cause.? Cobblestone. March 2000: 14. Stansell, Christine. ?The Road from Seneca Falls: the Feminism of the Mothers, the Feminism of the Daughters, the Feminism of the Girls.? The New Republic. 10 Aug. 1998: 26-38. Susan B. Anthony. Thompson Gale. 9 Feb 2004 . ?Susan B. Anthony: Women?s Suffrage Movement.? Monkeyshines on America. May 1997: 28. Untermeyer, Louis. Makers of the Modern World. New York: Simon and Schuster, Inc., 1955.

Wednesday, October 23, 2019

Case Analysis: Ski-Right Essay

I. Background of the Case The case begins with Bob Guthrie, a retired physician and an avid skier, who realized that there was a need for a special ski helmet following the recent incidents that lead to serious head injuries for skiers. There were existing ski helmets in the market, but Bob believed that he had a chance to make helmets more appealing to the people, by adding new features. Bob took this idea as something that could not only be an outlet for his creativity, but as a way for him to make some money. He set out with the goal of making helmets that were attractive, safe and fun to wear. With this in mind, Bob came up with several ideas for his new helmet, which he named ‘Ski Right’. Bob wanted his helmets to be attractive, so they had to come in several colors and feature the latest fashion trends and designs. But aside from this, they also had to be fun and useful. To achieve this, Bob thought of putting a built in AM/FM radio and cellphone to the helmets, with controls in a pad on the skier’s leg or arm. Before proceeding to build the helmet, Bob thought of the possibilities of success and failure in his venture. He figured that there was a 20 percent chance that there will be an excellent market for his product, a 40 percent chance that the market will be good, a 30 percent chance that the market will just be average and a 10 percent chance that the market will be poor. With this in mind, he continued his plans. Bob found several companies that could help him build his helmets. Progressive Products agreed to be a partner in developing Ski Right and would share in the profits and losses. Bob also discovered Leadville Barts, who specializes in bike helmets. They could be of great help in the production of the helmets itself. Bob was also talking to Talrad TR, a radio company in Florida, who had experience in making military radios. They could assist in putting the AM/FM radios in the Ski Right. Finally, Bob was meeting up with Celestial Cellular, who could develop the cellphones. Bob Guthrie now has to take into consideration all this information in making the decision of how to make and launch his new product, with the intention of making the most money he can as possible and avoiding failure. II. Problem Statement Bob’s problem now is deciding which combination of partners would result in the best profits for his new product, Ski Right. His first option is to partner up with Progressive Products in developing the helmets. He also has the option to ask Leadville Barts to make the helmets, which will then be taken by Progressive Products for finishing. His third option is to contract Talrad TR to make the radios for the helmets, which will then be brought to Leadville Barts and Progressive Products. Bob’s fourth choice is to work with Celestial Cellular to make the cellphones which will be passed to Progressive Products for the rest of production and distribution. His final option is to forget about Progressive Products completely, contract the three other companies and hire some friends to assemble and market Ski Right. Other than choosing which of the options would be the best recommendation for Bob, the case also calls for us to compute the expected opportunity loss that Bob would have if he chose one option over another. The group also has to determine what the value of perfect information is, which represents the maximum that Bob should pay in order to get perfect information. The group will also identify if Bob was logical in his approach to setting up his business and making decisions. III. Model Development The objective of this study is to identify what would be the most profitable course of action for Mr. Bob Guthrie. Another objective is to identify the opportunity loss in this situation as well as the value of perfect information. In all of the options available to him, Mr. Guthrie calculated the possible profits or losses he would have for every possible state of the market. He also determined the probabilities of each of the states of market given. The information is shown in the table below. In order to meet the given objectives, the group will apply the method of Decision Making Under Risk due to Mr. Guthrie being aware of the probabilities of all outcomes. There is also a need to identify the possible amount of losses Mr. Guthrie may incur which means that gaining a perfect or accurate forecast would be beneficial to better clarify what is the best decision to take. V. Conclusion After applying the method of Decision Making Under Risk, based on the decision table used to sort out and categorize the information given, the group was able to analyze and interpret the results, and found out he best decision Mr. Guthrie could choose for the new product he’s about to make. After determining the EMV for each alternative, option 2 which EMV for $2,600, came out as the highest among the other EMVs. Next, the group was able to identify the possible amount of losses Mr. Guthrie may incur. After getting all the opportunity loss for each alternative, the one with the lowest value of EOL which is $14,300 is determine. The result is once again, option 2. This was made sure by getting the EVwPI and subtracting it to the maximum EMV, thus giving us the EVPI of $14,300 which is equal to the EOL we determined earlier. According to the option 2 which is getting Leadville Barts to make the helmets, and Progressive Products to finish them, LB had extensive experience in making bicycle helmets which gives Mr. Guthrie a higher chance of assurance in getting the job done right, especially that he considers the quality of the helmets to be produced. On the other hand, he’s facing a greater risk since he’s handing out to job to two different companies.

Tuesday, October 22, 2019

Free Essays on Rock N Roll

The Birth of Rock and Roll The birth of rock ‘n’ roll speaks of racial barriers bridged through the fusion of Afro-American musical styles with white popular music in 1950s America. Not only did white record producers and radio disc jockeys market Afro-American artists, but white artists began to cover their songs, as well as incorporate Afro-American style into their own song writing. The term rock and roll is credited to Alan Freed a disc jockey who endorsed live performances where black and white would perform on stage with an inter-racial audience. The common views of teenagers’ participated in the creation of rock ‘n’ roll as an act of rebellion. The song "Rock Around the Clock," recorded by Bill Haley and the Comets in 1954, changed the course of American music. It turned popular music on its ear, and opened a door for a new sound to music. "Rock Around the Clock" was the first true worldwide Rock and Roll success and it is the first Rock and Roll record to reach No. 1. Many different artists throughout the world have recorded this famous song. The song has been heard on numerous movies and television shows. The most famous is Happy Days theme song, American Graffiti, and Bull Durham just to name a few. The screaming vocals, rattling keyboard style and outrageous showmanship of Little Richard born as Richard Penniman set the standard for the flamboyant excess rock 'n' roll has come to symbolize. Mr. Richard had an infectious, hyperactive personality that was contagious and made him popular. By age fifteen he was a regular with Sugarfoot Sam's Minstrel Show. The song we know as â€Å"Tutti Fruiti, aw rootie† was first know as â€Å"Tutti Fruiti, good booty†. Inclosing we must thank these artist because they assisted in revolutionizing the musical industry. They paved the way for the artist we now enjoy listening to.... Free Essays on Rock N Roll Free Essays on Rock N Roll The Birth of Rock and Roll The birth of rock ‘n’ roll speaks of racial barriers bridged through the fusion of Afro-American musical styles with white popular music in 1950s America. Not only did white record producers and radio disc jockeys market Afro-American artists, but white artists began to cover their songs, as well as incorporate Afro-American style into their own song writing. The term rock and roll is credited to Alan Freed a disc jockey who endorsed live performances where black and white would perform on stage with an inter-racial audience. The common views of teenagers’ participated in the creation of rock ‘n’ roll as an act of rebellion. The song "Rock Around the Clock," recorded by Bill Haley and the Comets in 1954, changed the course of American music. It turned popular music on its ear, and opened a door for a new sound to music. "Rock Around the Clock" was the first true worldwide Rock and Roll success and it is the first Rock and Roll record to reach No. 1. Many different artists throughout the world have recorded this famous song. The song has been heard on numerous movies and television shows. The most famous is Happy Days theme song, American Graffiti, and Bull Durham just to name a few. The screaming vocals, rattling keyboard style and outrageous showmanship of Little Richard born as Richard Penniman set the standard for the flamboyant excess rock 'n' roll has come to symbolize. Mr. Richard had an infectious, hyperactive personality that was contagious and made him popular. By age fifteen he was a regular with Sugarfoot Sam's Minstrel Show. The song we know as â€Å"Tutti Fruiti, aw rootie† was first know as â€Å"Tutti Fruiti, good booty†. Inclosing we must thank these artist because they assisted in revolutionizing the musical industry. They paved the way for the artist we now enjoy listening to....