Financial Statement Analysis Of Marks And Spencers

Financial Statement Analysis Of Marks And Spencers This report will analyze Marks and Spencers financial statements for 2008 and 2009 using ratio analysis. Findings show that Marks and Spencer have not had a very good profitable year in comparison with 2008. The purpose of this report is to analyze the figures and to point out some of the reasons for the deprived performance. Table of Contents Aim of report 1 Ratio Analysis 1 Profitability ratios 1 Liquidity ratio 2 Performance ratio 3 Evaluation on profitability 5 Evaluation of the liquidity position 6 Information provided for the user groups 7 Conclusion 11 Recommendations 12 Bibliography 13 Evaluation of the assignment 14 Aim of Report This report will analyze Marks and Spencers financial statements for 2008 and 2009 using ratio analysis, explanations will be given on why the changes have occurred in the companies profitability, liquidity and what impact the changes have caused on the company. The companies annual report will be examined from the point of view of each set of its potential users. Ratio analysis An accounting ratio as suggested by Melville (1999) is the evaluation of a relationship which exists between two figures shown in a set of financial statements. In the following report mainly the profitability, liquidity and performance ratio will be discussed. Profitability Ratios The profitability ratios are used to evaluate whether the business was able to produce an acceptable level of profit. Gross profit % ratio This ratio shows the gross profit in comparison to sales. The higher the ratio percentage the better it is for the company. Gross profit/ sales x 100 2008 ( £M) 2009 ( £M)  £1,211.3/ £9,022.0100 =13.43%  £870.7/ £9,062.1100 =9.61% The gross profit margin has decreased from 2008 to 2009 by 3.82%. Pretax profit % ratio This ratio shows the net profit before tax in comparison to sales. The higher the ratio percentage the better it is for the company. Profit before taxation/ sales x 100 2008 ( £M) 2009 ( £M)  £1,129.1/ £9,022.0100 =12.51%  £706.2/ £9,062.1100 =7.79% The net profit before tax margin has decreased from 2008 to 2009 by 4.72%. After tax profit % ratio This ratio shows the net profit after tax in comparison to sales. The higher the ratio percentage the better it is for the company. Profit after tax/ sales x 100 2008 ( £M) 2009 ( £M)  £821.0/ £9,022.0100 =9.10%  £506.8/ £9,062.1100 =5.59% The net profit after tax margin has decreased from 2008 to 2009 by 3.51%. Liquidity ratios The liquidity ratios are an assessment so as to ensure whether the business is able to pay of its debts as they fall due. Current ratio This ratio shows how well the company can meet its short-term financial obligations from its current assets. Usually the optimum result is 1:1 or more, but this will vary with each company. Current assets/current liabilities 2008 ( £M) 2009 ( £M)  £1,181.7/ £1,988.9=0.594:1  £1,389.8/ £2,306.9=0.602:1 The current ratio has increased from 2008 to 2009 by 0.008. Quick ratio This ratio shows how well the company can meet its short-term financial obligations from its current assets, removing stock from the calculation. The ratio removes stock because it is the least liquid current asset. Usually the optimum result is 1:1 or more, but this will vary with each company. Quick Ratio = (Current assets- inventory)/current liabilities 2008 ( £M) 2009 ( £M) ( £1,181.7  £488.9)/  £1,988.9=0.348:1 ( £1,389.8  £536.0)/  £2,306.9=0.370:1 The quick ratio has increased from 2008 to 2009 by 0.022. Gearing ratio This ratio shows how much of the companys long-term funds are supported by lenders. Below 50% is seen as low geared and good. Above 50% is seen as a cause of concern. Gearing ratio = Total borrowings / equity * 100 2008 ( £M) 2009 ( £M)  £2815.1/ £1964.0 * 100 =143%  £3060.7/ £2,100.6 * 100 =146% The gearing ratio has increased from 143% to 146%. Debt ratio (Ward, 2010) This ratio shows how much the company is in debt. Usually the optimum result is 1:1 or less, but this will vary with each company. Debt ratio = Total liabilities / total assets 2008 ( £M) 2009 ( £M)  £5,197.0/ £7,161.0=0.726:1  £5,157.5/ £7,258.1=0.711:1 The debt ratio has decreased from 2008 to 2009 by 0.015. Performance Ratio This ratio helps in calculating the efficiency in the operation of the business through effective utilisation of its resources. After Tax Profit as % of Noncurrent Assets This ratio helps as to analyze the percentage of profit the business has made by utilising its noncurrent assets. After Tax Profit as % of Noncurrent Assets = Profit after tax / Noncurrent Assets 2009 ( £M) 2008 ( £M)  £506.8 /  £5868.3 = 8.63%  £821.0 /  £5979.3 = 13.73% From this ratio it is clear that M and S was not able to make much profit in 2009 as compared to 2008. In 2008 M and S was able to produce a profit of 13.73% by the utilization of its fixed assets but by reaching 2009 the profit made has decreased to 8.63% thus there was a decline in the profit by 5.1%. After Tax Profit as a % of shareholders Fund This ratio helps to analyze the amount of profit which the business was able to generate from the utilization of the shareholders fund. After Tax Profit as a % of shareholders Fund = Profit after tax / Total Equity 2009 ( £M) 2008 ( £M)  £506.8 / £ 2100.6 = 24.10%  £821.0 /  £1964.0 = 41.8% From the ratio it is again clear that the utilization of the shareholders fund so as to generate profit has also decreased in 2009 by 17.7%, i.e., in 2008 M and S was able to generate a profit of 41.8% which has reduced to 24.10% in 2009. Even though the company was not able to generate adequate profit from the shareholders fund, the company was able to increase the dividend of the shareholders from 20.3p to 22.5p (Pg: 78). Earnings per Share As suggested by McLaney and Atrill (1999), earnings per share is the amount of profit that has been earned from each ordinary share. 2009 ( £M) 2008 ( £M) 32.3 (Pg: 78) 49.2 (Pg: 78) From the figures listed above it is clear that the shares for 2009 where only providing an earning of 32.3p as compared to last year which was 49.2p thereby creating a difference of 16.9p. Dividend per Share As suggested by Melville (1999), dividend per share is the amount of dividend allotted for each share for the stock held by the shareholder. 2009 ( £M) 2008 ( £M) 22.5p (Pg: 90) 20.3p (Pg: 90) Even though the earnings per share and the after tax profit as a percentage of shareholders fund where all less M and S was able to provide a decent standard of dividend 22.5p to its shareholders as compared to 2008 which was only 20.3p. This shows that M and S are taking proper steps so as to keep their shareholders happy. Return on Capital Employed As suggested by Weaver and Lunt (2003), this ratio helps those who have invested in the business to analyze the amount of profit the business is making from the utilization of this capital. Return on capital employed = Profit after Tax/ (Total Assets Current Liabilities) * 100 2009 ( £M) 2008 ( £M) [ £506.8 / ( £7258.1  £2306.9)] * 100 [ £821 / ( £7161-  £1988.9)] * 100 = 10.24% =15.87% From this ratio it is obvious that M and S was not able to utilize its capital to the maximum level. In 2008 the company was able to provide a return on capital of 15.87% which reduced to 10.24% as it reached 2009. Evaluation of the profitability of Marks and Spencers Examining the results from the ratio results show each ratio has decreased in 2009 in comparison with 2008. The reasons behind the gross profit ratio decreasing were because the gross profit had decreased by  £340.6m in 2009 (p78). The gross profit had decreased because of the increase of the cost of sales by  £155m (p87). The increase in cost of sales maybe due to the increase in purchases over the year as MS increased their buying by 10 times a year (p28). The reasons behind the pretax profit ratio decreasing were because the pretax profit had decreased by  £422.9m in 2009 (p78). The pretax profit had decreased because of the increase in finance costs by  £67.9m (p78). The increase in the finance costs is due to the increase in interest payable and the increase in the unwinding on the discount of partnership liability to the MS UK pension scheme (p89). The reasons behind the after tax profit ratio decreasing were because the after tax profit had decreased by  £314.2m in 2009 (p78). The after tax profit had decreased because of the exceptional costs being stated (p78). The exceptional costs have occurred were not regular running costs and were due to property related costs, rationalisation of IT and logistic networks and redundancy costs (p88). Income tax was not a problem has it had decreased in 2009 (p78). Internal factors which had an impact on the profitability of MS were: Despite the economic recession sales revenue figures had gone up from the previous year (p78), giving a positive impact on the profitability. The finance costs of interest payable had increased to the previous year (p89), giving a negative impact on profitability. Exceptional costs and the exceptional pension credit during 2009 gave a negative impact on the profitability, as the Group had decided to make changes to the pension scheme (p88). Selling and marketing expenses had been decreased in 2009 (p87) to keep up with a tight budget (p14), this gave a positive impact on the profitability. Income tax paid this year was less compared to last year (p78), but as this was due to a lower pretax profit (p78), it still played a positive impact on the profitability. Finance income had decreased in comparison to 2008 (p78), this was due to the exceptional costs of  £135.9m and the decrease in franchised stores (p86). Profit before property disposals and exceptional items had decreased over the year (p78) and this created a negative impact on the profitability. External factors which had an impact on the profitability of MS were: The economic recession which MS along with other high street retailers had to face (p14), impacted the profitability of MS. Customers were not spending as freely as they would normally, resulting in lower sales figures in some areas and therefore lower profit levels. The pace of growth of MS and its services was slow due to the recession (p5). Due to the recession costs had to be lowered to lure customers (p14) this in result had a negative result on the profitability. The sterling currency rate had decreased in 2009 compared to 2008 (p104). Therefore any foreign business would have been affected by this change, resulting in a negative impact on the profitability. Evaluation of the liquidity position of Marks and Spencers Liquidity ratios are used to show the ability of the company to turn its assets into cash as quickly as possible and to measure the ability of the company to pay of its short-term debts and expenses within the expected time. One of the two main liquidity ratios are Current ratio and Quick ratio. It is always good to have a high liquidity ratio as it show the ability of the business to pay of its debt within the expected time. However if these ratios are too high this means that the business is having too much of current assets which are not used nor utilized as efficiently as required in order to deal with the day to day activities. Retail sector of M and S involves purchasing goods and trading cash on credit from its suppliers and for this reason cash flow statements are included. A cash flow statement is used in order to show the cash inflows and outflows of the business thereby providing a better liquidity assessment for M and S. This in fact helps outsiders to analyze the whether M and S is able to generate adequate cash from its day to day operations. The closing net cash has increased to a great extend from  £117.9m in 2008 to  £298.3m in 2009. Even though during these recession period M and S was able to show a good closing cash figure this in fact shows their ability to manage cash. Decrease in net cash outflow from operating activities from  £966.2m in 2008 to  £596.9m in 2009. (p80) This cash generated from the operating activities enabled them to spent on financial activities. Increase in net cash inflow from operation activities from  £1069.8m in 2008 to  £1290.6m in 2009. (p80) The main reason for such a good cash flow in 2009 as compared to 2008 is because of the cost reduction where ever possible(p1). By analyzing the liquidity ratios of M and S the following findings were found out: The current ratio of M and S operating in retail sector was 0.59: 1 in 2008 and 0.60:1 in 2009. This shows that M and S had 59p in current assets so as to pay of every  £1 worth of current liabilities in 2008 and 60p of current assets so as to pay of every  £1 current liability in 2009 The quick ratio in fact showed that the company had 37p worth of current assets to pay off every  £1 worth of current liability after deducting closing stock for 2009 and 35p for 2008. This in fact shows that the firm is under liquidity due to the fact that the company has fewer assets than liabilities. As already explained above the debt ratio shows how much the company is in liability over its assets. By looking at debt ratio for M and S it has decreased from 0.73:1 in 2008 to 71:1 in 2009 which is good as it suggests that the company was able to pay of its debts within the due date. The gearing ratio in fact measures the proportion of M and Ss long term funds provided by the lenders. By comparing the gearing ratio in 2009 which was 146% to the gearing ratio in 2008 which was 143%, it shows that M and S was able to increase their credit worthiness. Thus by increasing their credit worthiness they are able to gain further loans in ease. Information provided in the report for its users (Nyarko, 2009) Employees Employees provide labor for the company; they need financial information to ensure they have a secure job and are being made correctly. The report has the following information useful for employees: Closure of 26 mostly Simply food stores (p6) Reduce roles across head office by 15% (p15) Cap level of pay increase (p6) Early retirement reductions given (p6) Legal and safety performance improved from 80% to 92% (p14) Opened 75 stores (p15) Plan to open 10-15 stores within two years in the Indian subcontinent (p39) Introduced new development programs tailor made for growing tomorrows leaders (p46) Reinforced lines of communication between management and colleagues at every level (p46) One of the lowest UK turnover rates (p46) Training given across each field (p44) Communication improved using tools like In store listening groups (p47) 44 employees celebrated 40 years working for MS (p47) 40,000 great service awards for staff who have excelled in their role (p47) Over 3,500 elected employee representatives from every part of the business in the MS business involvement groups (BIG) (p47) Decrease of 83.3% on bonuses (p48) Pay for performance to be central for decisions (p62) Employees with disabilities given a full and fair consideration for all vacancies (p75) Increase in wage and salary cost by  £48m (p91) Shareholders Shareholders provide equity for the company; they need financial information to make economic decisions. The report has the following information useful for shareholders: Dividends cut by 20.9% (p1) Adjusted profits down 40% (p2) Largest clothes market share (p2) Clothes value market share decreased by 0.3% (p2) M S direct sales up 19.0% (p19) International growth up by 25.9% (p38) Growth by 15% of the Italian range in the food sector (p7) Kids wear increased market share by 0.6%pts and putting MS fourth in the market (p8) Earnings per share 28.0p down by 35.8% (p14) UK gross margin down 1.7% pts (p14) UK market share clothing and footwear down by 0.5% (p18) Carbon emission down by 18% (p19) Reduction in dividends payout by 33.3% (p49) After tax profit down by 314.2m (p78) Increase in retained earnings by  £20.2m (p79) Management The management is the executive and non executive directors of the company, they need financial information to determine if the company is making good progress or not and to make claims for performance related bonus issues. The report has the following information useful for management: Adjusted group profit before tax down by 40% (p2) 39 out of 100 rigorous commitments as part of plan A achieved (p9) New and old members in management team (p10) Group revenue up by 0.4% (p14) Group capital expenditure down by 38.2% (p15) UK sales down by 1.7% (p14) Operating cost up by 4.9% (p14) Adjusted operating profit down by 29.4% (p14) Profit before tax down by 40.0% (p14) 80% of portfolio into modernized format (p15) UK footfall down from  £21.8m to  £21.6m (p18) UKs fourth largest coffee shop chain (p25) Womens wear value market share down by 0.6%pts (p26) Womens wear volume market share down by 0.8%pts (p26) Lingerie value market share up by 0.4%pts (p29) Lingerie volume market share up by 1.2%pts (p29) Menswear value market share down by 0.4%pts (p30) Menswear volume marker share down by 0.2%pts (p30) Kids wear value market share up by 0.6%pts (p31) Kids wear volume market share up by 0.7%pts (p31) Food value market share down by 0.4%pts (p32) UK home sales up by 1.1% (p35) Customers Customers are those who buy from the company, they need financial information to compare financial information and product quality with other companies. The report has the following information useful for customers: New products and services introduced (p1) Building international portfolio (p1) Improve value without compromising quality (p57) Enticed an additional 200,000 under 35s into store for womens wear (p3) Four menswear brands ranging from  £4 to  £499 (p4) New promotions introduced e.g. dress for less (p6) Marketing cost 8.6% lower (p15) Opened 75 stores (p15) Womens wear and menswear divided up into different brands aimed at different customers (p26-30) Style magazines best shop for lingerie 2008 (p29) Top quality food by watchdog survey (p32) Added new products and ranges to home products (p35) Best new skincare product award (p35) Food to order catering service launched (p36) Remodeled 24 stores (p40) Leeds and Liverpool stores modernized upcoming year (p40) Reduced food carrier bag use by 83% (p43) Meet over 67% of the FSAs salt targets for 2010 (p44) The board supported by different committees to help its governance accountabilities (p50) MS core focus on quality, value, service, innovation and trust (p32-34) Suppliers Suppliers are those who sell to the company, they need financial information to check for credit worthiness of the company against others. The report has the following information useful for suppliers: Net debt down to  £2.5bn from  £3.1bn (p16) Increased buying from suppliers to 10 times a year (p28) Trained 1000 suppliers on ethical standards (p34) 2008 compassion in world farming compassionate supermarket of the year award (p34) Paying farmers a fixed and industry leading price for their milk (p34) Engaged in profitable partnerships (p51) Increase in cash flow levels by  £180.4m (p80) Improved net debt by  £586.9m (p80) Increase in current liabilities of trade by  £96.9m (p79) Continue as going concern (p76) Banks and other lenders Usually banks (or other lenders) provide financial help to businesses by providing money. The main concern of these banks and lenders when deciding to provide money to a business is to make sure the business is capable to keep up interest payments during the course of the loan and eventually repay the loan at the due date. Thus the banks require this financial information so as to analyze the financial position and prospects of the business in order to provide them their loans. The bankers and other lenders require the following information from the report: M and S creditors payment policies. (p75) The profit which has decreased by  £314.2m by comparing 2008 an 2009. This might increase the pressure among the lenders to make the company to return their money. (p78) Decreased noncurrent assets by  £111m, so as to seize the assets in case of non return of the loans. (p79) Current assets and Current liability which have both increased by  £208.1m and  £318m respectively. This would enable the lenders and banks to determine liquidity position of the company. (p79) Consolidated cash flow information, repayment of syndicate banks which has reduced to  £108.1m in 2009. This shows the company was able to deal in 2009 with fewer loans. (p80) The Governments The main reason for the governments to use the financial information of the company is to ensure whether the business is keeping up with their tax payments. The other reasons are to regulate the business and to provide national economic statistics. They are also responsible for preventing the business from any fraudulent acts. The report has the following information important for the government. External auditors report (p77) this enables the government to look at the fairness in the operation of M and S. Deferred tax decreased from  £372.1m to  £225.5m.(p79) Tax Authorities The taxation authorities are responsible for calculating the taxation liability from the accounting report provided by the company. Competitors Competitors may use the accounting information provided by their rivals so as to find ways to improve their own financial position. Due to this reason, usually businesses are keen in keeping their accounting information as private as possible. The General Public The businesses which are big and powerful are of interest to the general public. They usually require the policies of the organization so as to know how these policies would impact the community. The public would also want to know whether the business is running in profit or not. The general public would use the accounting information for the following reasons: Old people would like to know about the pension schemes. (p102) Whether the business operations are affecting climate change. (42) Conclusion Concluding the report the findings show Marks and Spencer have not had very good profitable year in comparison with 2008, with a deduction of after tax profit by 3.51%. This is vastly due to the economic recession which has been an external negative factor for all the High Street shops. Another reason for the deduction in profit levels was due to exceptional costs which incurred during the year. However MS have managed to increase their sales by  £40.1M by investing in their costs. They were able to gain growth in certain market sectors and make 80% of its portfolio into a modernized format. MS achieved several awards for their products and the services they provided during the year, which improved their brand image. MS were able to achieve 39 out of 100 of its commitments made to Plan A, which is a long term project to create an eco-friendly business. Examples of these are the reduction of carbon emissions by 18% and reducing food carrier bag usage by 83%.While MS closed down 26 u nderperforming stores, they managed to open 75 new stores. MS has one of UKs lowest turnover rates, as they were able to celebrate 40 years of working for MS by 44 of its employees. The employees wage and salary costs had been raised by  £48M in comparison with 2008, this shows MS was employing more people and paying their employees fairly. Although there had been a dividends cut of 20.9%, there had been an increase of retained earnings by  £20.2M; this maybe to due to MS retaining income for a rainy day, in the present times of the economic recession, or for further future investment. Recommendations To improve Marks and Spencers overall performance and to create a sustainable going concern business, it should: Continue to treat its employees well and award them for their performance to avoid losing any trained staff and maintain its good employer record. Increase its costs on selling and marketing to make customers aware of new products and services MS has to offer. This is return should compensate for the decrease in this years market share decreases. Research past data along with any future investment plans, to try to predict any exceptional costs which may occur. These can then be prepared for so the profit levels are not damaged to vastly. Continue to create innovative products and services which help to win awards for MS, as they will improve the brand image of the company as well as generate more sales. Think of ways to compensate the losses the shareholders have incurred this say year otherwise they may decide to sell them back. Continue to achieve more of Plan A commitments to try to help the society MS operates in, this in return will also create a stronger brand image for the company. Continue to improve on their cash flow levels, so they always have enough to counter any recession associated problems and do not run into liquidation. Look for niches in each of the market sectors by carrying out market research and create products and services in tune with the market needs, to attract more customers, generate more sales and improve the companys overall profit levels.

Product Red Case Study Essay

Over the years, businesses have evolved to incorporate consumer views in their practices. As a result, consumer power has become an influential force that directs organizational strategies towards ethical practices. Based on the previously mentioned view, an evaluation of Product red’s strategy provides insight on its strengths, weaknesses, and improvements. Product Red Harvard Business School (2009) argues that numerous challenges face various nations. As a result, business organizations should utilize models that contribute to projects that reduce the scourge. Illustratively, the product red strategy inspired business organizations participate in the production and marketing of RED products with an aim of raising funds for AIDS in Africa. This innovative approach of engaging public and private entities in raising funds has enabled the global fund to fight diseases in Africa. Some of the diseases that the global fund targets include AIDs, tuberculosis, and malaria. According to Harvard Business School (2009), RED partners have managed to attract higher revenues since consumers associate the brands with ethical practices. Strategy Analysis Product red business has made significant gains in inspiring organizations to produce commodities whose revenues can be contributed to ethical activities. As a result, an evaluation of the model’s strengths and weaknesses reveals some improvements that should be made to enhance the model’s efficiency. Strengths of the RED Strategy Harrison (2005) argues that Product RED strategy increases the awareness of consumers and shareholders on the application of ethical practices in their organizations. As a result, consumers and shareholders utilize their influences to demand for social, political, and environmental  responsibility. Given the inadequacies in government policy and challenges in the allocation of funds, multinational organizations may place their emphasis on capitalistic goals thus introducing negative aspects to society. Illustratively, the Red strategy has the strength of inspiring partner organizations to protect and facilitate consumer rights. The above-mentioned strength has advanced the course of ethical consumerism thus enhancing social responsibility among entities. In contrast to the traditional charity model, the RED strategy portrays the company as an equal partner with its associates. The above-mentioned strength is confirmed by the increase in profit in organizations that have participated in RED’s activities (In Healey,2013).The innovative approach has encouraged partner organizations to devote their resources in the development of RED’s products, promote the concept of ethical practice in business and generating additional benefits that simultaneously benefit the needy in society. Additionally, the RED strategy enables organizations to produce ethical products at prices that match their non-ethical equivalents. The RED strategy has facilitated the production of cheap products thus reducing economic pressures on consumers. According to Harrison (2005), high prices associated with ethical commodities have been a hindrance to the adoption of ethical goods. Subsequently, the introduction of ethical commodities with prices equiva lent to that of non-ethical goods has enabled the RED strategy to attract the drifter and conventional groups of consumers In Healey (2013) contends that effective public relations are crucial in the adoption of ethical consumerism within a society. Subsequently, the RED strategy employs concepts of the public relations excellence-theory to develop a suitable communication loop between organizations and consumers. As a result, RED strategy develops a strength that is associated with enhanced co-orientation of messages between environmental, consumer and organizational systems. The above-mentioned strength enhances availability of information among consumers thus promoting ethical consumerism. Weaknesses of the RED Strategy The RED strategy has several strengths that have enhanced it adoption in several organizations. However, the strategy has weaknesses that limit its effectiveness hence an evaluation of each weak spot facilitates the development of suitable recommendations. Foremost, the RED strategy has the  weakness of not regulating organizations based on a set of sustainability standards and social wellness. As a result, RED company certifies organizations that participate in un-ethical practices. For instance, Red’s partner Foxconn received certification despite violating labor standards in its companies. These weaknesses have enabled unethical organizations to paint images of socially responsible entities thus covering their misdeeds. According to In Healey (2013), inadequate certification processes have led to â€Å"red washing† of entities. Secondly, lack of transparency in RED’s activities is a weakness that attracts numerous criticisms to the model. The aforementioned view is supported by market research findings that revealed mismatches between advertising investments and amounts raised for charity activities. Illustratively, market research reveals that RED company invested one hundred dollars in marketing and advertisement but generated eighteen million dollars for charity(In Healey, 2013).The lack of transparency attracts criticism on RED’s efficiency and credibility. This weakness may reduce RED’s influence in the long-run since its opponents hold the view that donating directly to the needy is more effective. Thirdly, the RED strategy has a sustainability related weakness due to the randomness and one-time purchase of RED products. Subsequently, the market based approach is af fected by lack of loyalty among consumers hence its ability to cater for ARV needs in Africa may be jeopardized. Improvements on the RED Strategy Several improvements can be made on product RED’s strategy to enhance its effectiveness. In the first case, Product Red should enhance its screening capabilities to ensure that its partners with organizations with good corporate-social responsibility histories. The aforementioned improvement will enable Product RED to enhance consumer trust thus enhancing sustainability it the company’s activities (Harvard Business School, 2009). In the second case, Product RED should enhance its access to financial reports from partner companies. Improved access to financial data will enhance transparency in associate companies since the right percentage is remitted to the global fund. In addition, Product RED should introduce channels that allow direct donations from individuals to affected individuals in Africa. This will increase revenues raised and reduce overhead costs associated with the transfer of funds (Harrison, 2005). In  the third instance, Product RED should collaborate companies that offer exceptional services on a daily basis. This will enable the entity to enhance consumer loyalty thus improving the sustainability RED projects. Additionally, Product RED should certify competitive and innovative partners to attract and retain consumers. This will promote sustainability the generation of funds. Conclusion Ethical consumerism has led to the introduction of innovative concepts in business organizations. One of the innovative models that was introduced by Product Red with an aim of supplementing government activities in the fight against AIDS is the MBS. The market-based system portrays strengths and weaknesses that determine the adoption of the model among business entities. Some of the weaknesses and strengths include reduction of the prices of ethical goods, increased corporate responsibility among entities, lack of transparency and inadequate screening of partner organizations. Conclusively, an evaluation of Product red’s strategy provides insight on its strengths, weaknesses, and improvements. Reference Harrison, R. (2005). The ethical consumer. London [u.a.: Sage. Harvard Business School. 2009. Product (Red) (A). HBS Case No. 9-509-013. Boston, MA: Harvard Business School Publishing In Healey, J. (2013). Ethical consumerism.

Earth Liberation Front Essay

With over 600 criminal acts resulting to more than $100 million in property damages, the Earth Liberation Front has been dubbed as the most active and destructive domestic terrorist group in the United States by the Federal Bureau of Investigation (FBI). Unlike international terrorism, mostly carried out by Muslim radicals seeking â€Å"Holy War† with America, domestic terrorism falls under the category of special interest extremists according to the FBI, the lead agency in counterterrorism. Special interest extremists conduct acts of politically motivated violence to force segments of society, including the general public, to change attitudes about issues considered important to their causes. These groups occupy the extreme fringes of animal rights, pro-life, environmental, antinuclear, and other movements (FBI, 1999, p. 20). The ELF conducts random economic sabotage by destroying facilities and industries involve in logging, genetic engineering, energy production and auto making to prevent the exploitation of the natural environment. The group believes that in order to preserve the earth’s ecological balance they have to tear down the U. S. capitalist economic system that continually abuses nature for profit. James F. Jarboe, FBI’s Domestic Terrorism Section Chief, testified in 2002 before the U. S. congress describing the ELF as the top domestic terror group which could become a serious threat to nuclear sites. In 2005, the U. S. Department of Homeland Security branded ELF as the most aggressive terrorist element among the radical environmental movement. Members, who call themselves â€Å"Elves†, engage in a new brand of hostility named eco-terrorism. They are committed to defend their cause by all means necessary through direct actions and revolutionary violence. Due to the autonomous nature of the movement with no formal chain of command, law enforcement agencies admitted that they have difficulty in infiltrating the group despite several major arrests and indictments. The FBI alleged that William C. Rodgers was the leader of the group. He was arrested in December 2005 but committed suicide while in jail using a plastic bag. ELF’s base of operation is mainly located in Canada, United Kingdom, and United States. Origin: ELF originated in 1992 in Brighton, England devoted to protect and save the environment. It was established by a more radical group of activists known as Earth First who thinks that criminal acts like economic sabotage would better advanced its cause rather than legal protests. The name was derived from another movement Animal Liberation Front (ALF) who likewise use the same method in promoting their ideals of liberating the animals from abuse. The two organizations forged alliance in 1997 and have claimed more than 1,200 criminal acts causing over $100 million in property damages for the past 15 years. Members employ illegal direct actions by using arson in confronting companies and practices they see as abusive and immoral. With such tactic they hope to impose economic loss or cripple business operations. ELF surfaced in America in 1996 by burning a U. S. Forest Service truck in Oregon’s Willamette National Forest and spray-painted the building with anti-logging slogans. Since then, ELF continued attacking big businesses year after year becoming the most wanted terrorist group. The movement is funded by wealthy benefactors and other allied organizations sympathetic to its cause like the People for Ethical Treatment of Animals (PETA). Organization, Ideology and Tactics: ELF is an underground movement with a decentralize structure. It is a loose network of small groups or individuals who sympathize with the movement. Anyone can be a member as long as he or she simply follows the ELF’s guidelines: to inflict maximum economic damage on those profiting from the destruction and exploitation of the natural environment, to reveal to, and to educate the public about the atrocities committed against the earth and all species that populate it and to take all necessary precautions against harming life (Rosebraugh, 2004, p. 18). The group is practically invisible with no official members, leaders or spokesperson. In this manner, they can continue to freely fight for their cause without the fear of being imprisoned and this practice has been proven to be very effective. The group is rooted in an ideology that considers all living organisms on earth possess moral rights and deserve equal care as the humans. In addition, the ELF also believes in deep ecology favoring the rollback of civilization and restoring the environment damaged by selfish interests brought about by the industrial age. This philosophy maintains that modernization has created endless injustices on the planet that will lead to the destruction of human existence on earth and the extinction of wildlife habitat. ELF recognizes that the environmental movement has failed to bring the message across and brought about changes in preserving the environment. The legal protests did not catch the attention of the public and the government but instead laws have encouraged many big businesses to profit from the exploitation of the earth’s natural resources. Members of the group believe that it is within their rights to protect the environment and enforce the natural law. They accomplish their mission in many innovative tactics or techniques. Their primary weapon is arson burning various properties, research laboratories, vehicles, equipment, and buildings. They would use crude incendiary devices like candles that are attached to a plastic jugs filled with gasoline. They use booby trapped letters with poisoned razor blades and issue death threats to exploiters. Members also engage in vandalism by spray painting their targets as well as break windows and glue locks. In addition, the ELF advocates â€Å"monkeywrenching,† a euphemism for acts of sabotage and property destruction against industries and other entities perceived to be damaging to the natural environment. â€Å"Monkeywrenching† includes tree spiking, arson, sabotage of logging or construction equipment, and other types of property destruction (FBI, 2002,  ¶10). Their main goal is merely to channel public attention to their cause and not kill people. So far of all the criminal acts the group committed there has been no single human casualty reported. The group has become effective in their campaign while eluding authorities because of its leaderless resistance. Leaderless resistance is a technique by which terrorist groups can carry out violent acts while reducing the risk of infiltration by law enforcement elements. The basic principle of leaderless resistance is that there is no centralized authority or chain-of-command. The various cells are linked by shared ideology but otherwise are autonomous, for the most part unconnected and unknown to each other (Leader & Probst, 2004, p. 2). Before an attack is executed, the group plans carefully its every move. Members would thoroughly study the target with video and photo surveillance, conduct intelligence gathering, and research the industry. In 2001, the ELF came out with a handbook entitled Setting Fires with Electrical Timers: An Earth Liberation Front Guide. The 37-page manual details how to assemble an Old-Fashioned Kitchen Timer and a SCR Digital Timer complete with instructions, tips, diagrams, materials, and tools needed. It advises members on the rules of a successful arson, where to place incendiary devices, and fuel requirements to burn down a building. Currently, ELF has launched a nationwide campaign of arson against genetic engineering and genetically modified organism activities. The group believes that these actions, genetically alternating life forms, are types of oppression and destruction. In its Illegal Incidents Report: A 25 Year History of Illegal Activities by Eco and Animal Extremists, the Foundation for Medical Research in Washington, D. C. noted that both ELF and its partner ALF were responsible for 529 attacks against research facilities, universities, drug discovery companies, and various organizations from 1981 to 2005. The assaults were made up of vandalism (45%), theft (23%), harassment (15%), arson (10%), and bombing (7%). According to U. S. law enforcement, radical environmentalism currently poses the most visible homegrown threat to the national security of the United States. As recently as June 2004, the FBI designated â€Å"eco-terrorism†Ã¢â‚¬â€the use of or threat to use violence in protest of harm inflicted on animals and the world’s biosphere—as the country’s number one militant challenge emanating from inside its own borders (Chalk, Hoffman, Reville, & Kasupski, 2006, p. 47). Criminal Activities: This shadowy movement has unprecedented record of criminal activities that continuously threaten American society and democracy. Their history of violence expands across the U. S. hitting various institutions such as government, private citizens, education, and other forms of development. In 1997, ELF burned down the Bureau of Land Management horse corral in Oregon and on the following year set fire on a ski resort in Vail, Colorado that resulted in $12 million in damages. The group set seven separate fires destroying three buildings and damaging four chairlifts. The FBI considered this event as the most destructive act of eco-terrorism in U. S. history. In 1999, ELF radicals were involved in the burning of an 8,000 square-foot structure of the Boise Cascade logging company in Monmouth, Oregon and the destruction of the Agricultural Hall of the Michigan State University. In September 8, 2001, the group burned a McDonald outlet in Tucson causing $500,000 in damages. In 2003, this extremist set fire on a housing complex that was under construction in San Diego knocking down a five-storey building and a 100-foot crane. The damage was estimated at $50 million. Six weeks later, they burned three other houses that were being built within the area. In addition, the ELF assaulted three car dealers in Southern California setting ablaze 40 Hummers and SUVs amounting to $2 million in damages. The group vandalized the cars by painting the words â€Å"Fat Lazy Americans†. They did the same in Los Angeles where 125 sport utility vehicles were also vandalized and burned inside auto dealer shops and along the neighborhood. According to FBI investigations the ELF were responsible for attacking vehicle dealerships and construction sites. In February 2005, the group burned down a new Pinewoods apartment complex in Sutter Creek, California with an incendiary device leaving a graffiti that said â€Å"We Will Win – ELF†. Five months after, the same group torched two homes that were under construction in Whatcom County, Washington causing $100,000 in damages to the other house while the other one was destroyed. They also vandalized and damaged a number of construction equipment. The arson campaign went on in 2006 with the burning of more houses. In Camano Island, Washington, the ELF set fire on a 9,600 square foot trophy house worth $3 million. In its official communication made in 1997, the ELF declared their struggle to free all species in the planet. We are the burning rage of this dying planet. The war of greed ravages the earth and species die out every day. ELF works to speed up the collapse of industry, to scare the rich, and to undermine the foundations of the state. We embrace social and deep ecology as a practical resistance movement. We have to show the enemy that we are serious about defending what is sacred. Together we have teeth and claws to match our dreams. Our greatest weapons are imagination and the ability to strike when least expected (Pickering, 2007, p. 10). Operation Backfire: In response to the attacks, the FBI initiated in 2004 Operation Backfire intended to investigate acts of terrorism by the ELF. It put together several independent investigation bodies from the agency’s Portland, Oregon field office and rounded up suspected eco-terrorists. Seven people were arrested in four different states. They were Stanislas Meyerhoff, Chelsea Gerlach, Daniel McGowan, Darren Thurston, Kevin Tubbs, William Rodgers, and Kendall Tankersley. In addition, five others were taken into custody namely Jonathan Paul, Josephine Overaker, Rebecca Rubin, Suzanne Savoie and Joseph Dibee. Federal prosecutors together with U. S. Attorney General Alberto Gonzales indicted in 2006 11 suspects with 65 counts of conspiracy charges to commit arson in Oregon, Washington, Wyoming, Colorado and California. Many of those apprehended turned informants for the government. The arrests and indictments were the outcome of a nine-year old investigation on the series of arsons in America where the ELF claimed responsibility. The operation is on going around the country. Those participating in the investigation besides the FBI are the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Eugene Police Department, the Portland Police Bureau, the Oregon State Police, the U. S. Forest Service, the U. S. Bureau of Land Management, the U. S. Department of Agriculture, the Oregon Department of Justice and the Lane County Sheriff’s Office. Some of those arrested have been convicted of the crime in U. S. Federal Courts. They are as follows: Stanislas Meyerhoff – 13 years, Kevin Tubbs – 12 years 7 months, Chelsea Gerlach – 9 years, Kendall Tankersley – 3 years 10 months, Suzanne Savoie – 4 years 3 months, Darren Thurston – 3 years 1 month, Daniel McGowan – 7 years, Jonathan Paul – Sentencing in abeyance, Joyanna Zacher – 7 years 8 months and Nathan Block – 7 years 8 months (DOJ, 2007,  ¶4). Other suspects were released on bails while some were placed on restrictions pending their trial. A few decided to cooperate while the rest remain imprisoned. Operation backfire was highly criticized because of coercion and paid informants. Other sectors called the bold move unconstitutional but Atty. General Gonzales argued that such acts only constitute violent criminal activity, which may violate the right of every U. S. citizen. Conclusion Terrorist groups like the ELF are anti-progress and as long as development continues they will not stop their modus operandi in terrorizing the public and businesses, which already have incurred heavy losses. The scenario is extremely dangerous and alarming. It is imperative that authorities and intelligence organizations have to assess the threat and study the behavior of these terrorists who are becoming more advanced and knowledgeable in their strategies. There is a need for effective counterstrategies to detect and prevent acts of terror at the same time proper allocation of resources in order to efficiently combat these adversaries. As a loose organization, ELF could become even more dangerous because its members do not follow any rules. The group constantly poses great risk to the country’s democracy, endangers American lives and undermines the constitution that guarantees protection to the citizens. There is also possibility that such group could turn violence as a way of life and spread its corrupt ideals to the younger generation, which is already affected by media violence. For the government to combat this kind of domestic terrorism, it has to take more proactive actions in preventing further destructions to the economy. While doing so, its programs should remain within the framework of freedom without violating one’s constitutional rights. Authorities must strengthen their intelligence network to prevent arson attacks. Though the ELF has its right to voice their concerns, they must be contained and stopped immediately. References FBI (Federal Bureau of Investigation). (1999). Terrorism in the United States 1999. Counterterrorism. 30 Years of Terrorism: A Special Retrospective Edition. Threat Assessment and Warning Unit Counterterrorism Division. Report. Federal Bureau of Investigation Rosebraugh, C. (2004). Burning Rage of a Dying Planet (P): Speaking for the Earth Liberation. Lantern Books, New York. Leader, S. H. & Probst, P. (2004). The Earth Liberation Front and Environmental Terrorism. Retrieved December 2, 2007, from http://cjc. delaware. gov/PDF/ELF%20ALF%20article. pdf Chalk, P. (2006). Trends in Terrorism: Threats to the United States and the Future of the Terrorism Risk Insurance Act. RAND monograph series. RAND Center for Terrorism Risk Management Policy. RAND Corporation, Santa Monica, CA. ISBN: 0833038222 Pickering, L. J. (2007). Earth Liberation Front 1997-2002. Arissa Media Group; 2nd ed. , New York. FBI. (2002). Testimony of James F. Jarboe, Domestic Terrorism Section Chief, Counterterrorism Division, FBI Before the House Resources Committee, Subcommittee on Forests and Forest Health. http://www. fbi. gov/congress/congress02/jarboe021202. htm DOJ (Department of Justice). (2007). Final Sentencing Hearing Held in Case of Earth Liberation Front (ELF) and Animal Liberation Front for Acts of Eco-Terrorism in Five Western States. Press Release. Retrieved December 2, 2007, from http://portland. fbi. gov/dojpressrel/2007/elfsentencing080307. htm

History of Science and Technology - 1800 Words

Science and Technology has been around from the beginning of time. It evolved from the everyday efforts of people trying to improve their way of life. Throughout history, humankind has developed and utilized tools, machines, and techniques without understanding how or why they worked or comprehending their physical or chemical composition. Before we go any further a definition has to be given for both Science and Technology because they are both different in their own right even though the two are almost indistinguishable. According to the Oxford Dictionary Technology can be defined as the knowledge or use of the mechanical arts and applied sciences, while Science can be defined as the branch of knowledge involving systematized observation†¦show more content†¦New Developments could be found in many countries ranging from Africa to Meso-America. In West Africa which at the time was very wealthy, the Dogon people discovered the Sirius Star System with their naked eyes and in Tanzania steel was being melted and forged into different forms with temperature reaching up to 1800 Celsius which at the time was a huge advancement. In south and Central America the indigenous people had put in place an impressive irrigation system to cultivate their crops especially maze which was a source of livelihood for them. During this same period huge progress had been made in Mathematics from China and India. Equations had been formulated for the calculation of Algebra by using matrices and arithmetic triangle, which as fifth form students you must be very familiar with because it will be coming on your upcoming CSEC examination. It is so cool to see that some of the things we still use in or way of life such as mathematical equations is still influenced by things invented hundreds of years ago and will still be used in years to come. Also during the Middle Ages which is most often call the Dark Ages, warfare had improved tremendously gone were the days when soldiers fought with out any form of armour for protection and bow and arrow and swords were the only means of weapon. About 500 AD lance and saddle was invented toShow MoreRelatedHistory of Science Technology in Indian Subcontinent5042 Words   |  21 PagesHistory of science and technology in the Indian subcontinent * Outline of South Asian history * History of Indian subcontinent | Stone age (7000–3000 BC)[show] * Mehrgarh Culture (7000–3300 BC) | Bronze age (3000–1300 BC)[show] * Indus Valley Civilization (3300–1700 BC) *   Ã¢â‚¬â€œ Early Harappan Culture (3300–2600 BC) *   Ã¢â‚¬â€œ Mature Harappan Culture (2600–1900 BC) *   Ã¢â‚¬â€œ Late Harappan Culture (1700–1300 BC) * Ochre Coloured Pottery culture (from 2000 BC) * Swat culture (1600–500 BC) |Read MoreThe Science Fiction Film Genre Essay1683 Words   |  7 PagesScience Fiction Films The science fiction film genre has been around almost as long as movies have, but like the cinema it is still a fairly young art form. This genre came into existence shortly after the invention of the movie camera in 1888 and has endured for over one-hundred years. Science fiction is adaptive; it changes with the times and this trend can be seen in its incorporation of other genres, cultural history and technology. This essay will attempt to define the genre, chronicle the historyRead MoreThe History of Chemistry Essay798 Words   |  4 Pages Chemistry and technology are together and separate. Chemistry uses technology and technology uses chemistry. The history of chemistry and technology is long going back to the ancient times. Chemistry was used even by the oldest civilizations, like Egypt. It was really popular during the medieval times. Back then it was called Alchemy, which is turning metal into gold or even about the philosopher’s stone. As the years went by, Alchemy b ecame a lost art and chemistry took it in place. Chemistry ledRead MoreAccuracy And Accuracy Of Knowledge1595 Words   |  7 Pagesaccuracy in the natural sciences is vital as any error can be catastrophic. In 1986, a flawed reactor and human error caused the Chernobyl disaster that exposed millions to radiation and had significant long term impacts. However in history, complete â€Å"accuracy† is almost unattainable. As historians cannot first-hand experience past events, they can only try to make connections with available sources to suggest what happened in the past. The accuracy of knowledge in history is greatly influenced byRead MoreHumans have come to accept that History by mere definition is the exploration and study of history1000 Words   |  4 PagesHumans have come to accept that History by mere definition is the exploration and study of history whereas the Human Sciences are defined as the in depth study of social, biological and cultural aspects of human bei ngs. History and Human Sciences seek to influence humans through language, reason, and emotion. By looking at the title, I am coming to the conclusion that historians only focus on understanding the past and the human scientist is only looking to change the future. That conclusion is reasonableRead MoreScientific Contributions Of Buddhism And Technology1062 Words   |  5 Pages Chinese Buddhism and Technology Name: Hongyi Jin Student ID: 301277714 E-mail: hongyij@sfu.ca Words Counter: Contant Table: Abstract ——————————p.g Background and History —————————— p.g Scientific Contributions of Buddhism Impacts of technology to Buddhism Positive Impact ————————— Negative Impact ————————— Results of Interviews observations —————————p.g Comments and Evaluation ———————————p.g Summary ——————————— References ——————————— Abstract Read MoreThe Relations between Science and Religion Essay1630 Words   |  7 Pages The relations between science and religion. Humans are servant of God who descended to earth as its inhabitants. Humans are creatures of God are given the advantage of reasonable than other creatures. With that human minds can do more than any other creature. At the beginning of its creation, only human beings who do not know anything and therefore people need a hint for his life. Humans need a guideline in order to survive life in the world and in the hereafter. Guideline for humans isRead MoreAn Abstract on the Hubble Telescope792 Words   |  3 Pages Abstract The Hubble Telescope is a piece of technology that has affected human history. This paper will offer concise description of the telescopes history, function, and contribution to society. The Hubble Telescope is due to land within the next decade, approximately. We can only imagine what scientists will discover once the telescope is back on Earth and they prepare for the next generation of telescopic, deep-space gathering. Technology has made vast gains since 1990, the year the HubbleRead MoreV For Vendetta Comparison Essay1006 Words   |  5 Pagesabuse of science and technology and its effect on life and society in their texts. Orwell and McTeigue both explore the aspects of a dystopian future in their work, Orwell in his book 1984 and McTeigue in V For Vendetta. Both of the men use these works to explore and connect with the experiences, ideas, values and beliefs of their readers or viewers. One of the main themes in both of the formats is the abuse of technology. The movie and the book both explore the exploitation of technology and howRead MoreComputer Science Essay540 Words   |  3 PagesComputer Science Computer science is one of the fastest growing career fields in modern history. Dating back only a few decades to the late 1950s and early 1960s, it has become on of the leading industries in the world today. Developed through the technological architecture of electrical engineering and the computational language of mathematics, the science of computer technology has provided considerable recognition and financial gain for many of its well deserving pioneers. Originally conceived