Willy Loman Essay Example for Free

Willy Loman Essay Task: Willy Loman is in many ways foolish and objectionable, and yet he still commands our sympathy and even our respect. How far do you share this view of Willy Loman? In your response, you should consider how an actor might interpret the role of Willy.  Willy Loman is the main character of Death of a Salesman by Arthur Miller. The play focuses on the last twenty four hours of his life. The main events of his life of his life are revealed using various techniques. Willy Loman always believed in the American Dream, but his character is now old and tired. We can see both sides of Willys character. The first is how he is foolish and objectionable. The second is how he can command our sympathy and respect. This can make him a figure of pathos. I will be addressing these points in this essay. In addition, I will be exploring how an actor would be able to interpret Willys character. Willy Loman can in many ways appear foolish and objectionable. Willy Loman contradicts himself in many ways. He has a very aggressive attitude towards his family, especially towards his wife Linda. It is as if they are a soundboard for Willys problems and frustrations. Although he displays this behaviour towards the other characters, he shows deep compassion towards his family. We see other examples of this aspect of his character. He sees himself living the American Dream, by exaggerating to everyone of how well he can sell his products. The irony of his job is that we never find out what he actually sells. This then makes us have more questions than answers after we have finished reading the play. He likes to contradict himself, by one minute saying how Biff is lazy; however, he then says Biff is not lazy. This then makes us wonder what the relationship is between Willy and Biff, and if anything has happened to sabotage this. We get introduced to two characters, Willys two sons Biff and Happy. Willy has tried to shape both of their lives, but this has not gone well. We see the first mobile concurrency in the play. This was when both of his children were young. When Biff was young, Willy paid complete attention to Biff, helping him with his football career. Happy however, was trying to be notice[d] by Willy. This can make Willy seems foolish, he even encourages and congratulates him when Biff steals a new football to help his passing. It is as if Willy would encourage Biff, but for all of the wrong reasons. This and other events then makes Biff known as a kleptomaniac, that we see glimpses of throughout the play. Happy is trying to get Willy to notice him, through various ways. However, Willy literally ignores him, what can be signs of neglect. Willy feels deluded, by making himself bigger than most people, even if they try to help him physically and financially. Biff then gets a visit from his friend Bernard. Bernard is not as strong or tall as Biff, but Willy likes to use him to help Biff with his studies. He likes to call Bernard anaemic and a pest. Although at this point, Bernard looks as if he is going nowhere, he turns out to be somewhere in his life unlike Biff and Happy. He then gets back to reality, although he stills has a deluded mind. He tries to tell Linda how he made a large amount of wealth when he was working in Providence. However, he has to come closer to the truth when he lowers the value of how much he earned. He finally tells the truth, when he talks about business not picking up. This shows us how objectionable he can be, even though he knows what the truth is. Linda then gets some stockings to darn. We get taken back into another flashback. We discover how Willy had an affair with a colleague when he went on a business trip. He then feels guilty, because he gave Lindas present of stockings to The Women. We see how the two time switches collide together, when he says how he will make [it] up to Linda, and he can hear the women laughing in the background. Although we know that all of the acts that he has done are all out of foolishness, we can feel some sympathy towards Willy, for he is not finding it easy to cope with this pressure. We then find out that this is the reason why Biff and Willy have not had a good relationship. Biff then de-railed off his education, and then found no point in life. He did not look up to Willy as a role-model anymore. If you had to look at this aspect from an actors point of view, you can imagine him being played by someone who likes to over-exaggerate all of his lines. However, we can also imagine him being very tired in his speech in some parts, and always holding his head, like he is on the verge of a mental breakdown. Willy Loman can have another aspect to his character, which is how he can command our sympathy and even our respect. Willy has tried several times to try and commit suicide, always saying how he works himself to death and emphasises the word kill. This then makes us want to make him a figure of pathos and does he have the power to command our sympathy. We are then able to answer this question, by how he is acting throughout just the first act. This is shown when we see how he is trying to make a living for him and his family, yet he can not make the cut. Linda, his wife has got a naà ¯Ã‚ ¿Ã‚ ½ve aspect towards her, and this is shown when she makes a compassionate speech about Willy. She talks about him not being the finest character ever lived. This shows us that she knows he has got impurities in his character. She even imitates Willys earlier speech, by how attention must be finally paid to him. This shows that she still will support him, no matter what he has done in the past. These events happen throughout the play, until unfortunately he finally commits suicide. If an actor had to interpret this role, we can say how Willy would be very quick with some parts of his speech, but when he does monologues, he would be very slow and express his speech very well.  In conclusion, Willy is able to do be foolish and objectionable in some aspects, but can become a figure of pathos by making us feel sympathy towards him, and show him respect towards him. These events are very unfortunate, and we hope that this does not happen to us the audience in reality.

Business Plan Of The Safe Tissue Marketing Essay

Business Plan Of The Safe Tissue Marketing Essay Everybody these days look for security and sound path to diminish tiny viruses creates around us as the vast majority of us feel it because of the force and essence style that make us apprehensive and need to find clean against-bacterial latrine tissues. The Safe Tissue L.L.C is putting resources into tissues and figure mind items and concerning in regards to this issue. One of the examines in the growth and inspecting branch uncovered some substance that depending on, if it is incorporated in the tissue and let the individual uses them after latrine, it ensures clean and great fragrance after utilization in addition that it is reused and could be utilized as a part of paper industry. A study shows that 35% of youngsters visits to doctors facilities in Abu Dhabi were an explanation for why of microorganisms that is openly and even in private toilets, which sets back the all finances the guardians a considerable measure and make them being apprehensive and pushed. Numerous different explanations pushed The Safe Tissue to give careful consideration for that new finding that can the obligations that dont give us an opportunity to discover the time required, that is the reason the new feature can keep the power of the tissue as needed. That has a focused sum of the substance and particular material that will stay on the skin and blur inside 10 seconds after utilized and it could be made consistent with FDA consistency prerequisites for tissues. Mission: To become the leading safe healthy tissue producer in UAE Vision: To provide health by healthy tissue papers Company Overview: In January 2013 The Safe Tissue step into the market. The perspective of the company is to cater the locals. The companys product is frequently use and highly concern to health. The competitors of the company are mostly foreign brands. People are always conscious about health. The Safe Tissue provides healthy tissue with modern standard competing the all his competitors. Marketing Analysis Plan: Market Trends: In market the trend is of Healthy tissue papers. People prefer healthy and safe side for theirs selves. Branded names are commonly known for their name and secondly for their standard of health maintain for the customers. There are also a lot of types of tissue in the market such as facial tissue, toilet tissue. The Safe Tissue started work with toilet range Supply and Demand Factor: The demand and supply are two primary components that influence the working of any plan of action. The demand is the will and capacity of purchasers to buy a specific product, while supply is the capacity of the business to accommodate the interest of customers. (Scholasticus, 2013).To copes with modern era. Demand and supply factor are critically set according to the market trend. Purchasing Patterns: Two factors of business as explained above influence the purchasing pattern of the customers. Price is the main factor which plays a vital role in the purchasing pattern of the customer. Hence the The Safe Tissue Company set the price accordingly to purchasing patterns of their customer. Life patterns: Peoples always prefer health over anything in this world. The life patterns of local affected by the highly expensive daily use product. The Safe tissue changes the life pattern of locals by providing the cheap and healthy tissue papers. Factors influencing the target market. Targeting the market is the important key role of business plan. There are few factors that change the target the market. (Jeff, 2007) Geographic: In startup market, The Safe Tissue started business in Abu Dhabi and AL ain. To capture the whole UAE is the big task but not impossible. So focus is only at these two cities. Demographic: Demographic means the age levels and gender. Everyone use tissue for cleaning purpose. Kids and Mature peoples are more conscious about health as compared to youngster. Economic Factors: Economic conditions also change the target market. UAE has come out of the recession. Now the economic conditions of the country are well and good. Stabilize and good opportunity for investment point of view. Due to change in the economic conditions of the country the purchasing pattern of the changes. Interests of buying products are reduced from the customer side. Social Value: Social value is also core of target market. Preference to things change by the customer as by the time passed. The Safe tissue has considered this factor more preferable. Product Positioning: As newly started business The Safe tissue positioned themselves in most competing brands of the market. The Safe tissue manufactures high quality and healthy tissue in the market. Thing is to position their products in the heart of the customers, for that The Safe tissue has a devised advertisement plan and marketing plan to capture the heart of the locals and expats by providing health in cheaper price. Success factors: Success factors of The Safe tissue are health, cheaper and loyal with customers. Providing foreign standard healthy tissue in cheaper price can be the success factor for The Safe Tissue Barriers to entry: It is always difficult to enter in any market. Barriers are always there. The Safe Tissue also facing a lot of barriers. Barriers from government and competitors are always meant to be remove to get success Existing and emerging competitors: There are a lot of existing and emerging competitors in the market. For Example Kleenex, but Kleenex providing wide range of product. Also this is the foreign company. Locals producer of toiler papers are main competitors of The Safe Tissue. Management plan: Initially the company total numbers of employees are 25 peoples including directors and owners. Company having 5 Directors and consist of sales, accounts and marketing managers and rest of all are labor use for production and packing of the product. After 12 months, each manager gets assistant manager under him. After 24 Months Department of Human Resource introduce and implemented increasing the employees to 50. After 36 months each head of business has its team and supervisors. Product or Service Plan: Sales model: As per demands of product of product increasing the sales revenues also increases. The following sales model shows the sales made since company establishment in January 2013 and 2014 and onwards 2015. Table Sales Model 2014 2015 2016 Toilets Papers AED 2,750,060 AED 3,350,567 AED 4,670,678 Facial Tissue papers 2,770,768 3,768,344 Total Sales Revenue 2,750,060 6,121,335 8,439,022 Marketing messages: For marketing messages useful means of transferring the messages to our potential customer is used. Proper marketing research has been conducted to review the market properly Marketing and promotions tactics: The Safe Tissue implements the marketing mix to accomplish their valuable goals. It includes the Price Product: To live in this rapid market industry product should be differentiated to make the sale in the market. People want something different and valuable to them for purchasing product. The Safe tissue company has made this marketing mix by making product of high quality and according to modern standard. Place: Place where to sell your product is also the most important perspective of the company. Place is selected according to suppliers and market. Location of the business helps a lot in gaining more sales. Price: Price of the product has great influence over customers. The Safe Tissue price is reasonable and affordable by locals and middle level and low level of families. Hence this factor has the increase the market share of The Safe tissue in the market. Promotion: The promotion is the element of gaining the customer interest. Promotions are made according to price and market trend and customer buying behavior. Promotion creates awareness about the product and hence in results increase in sales. Strategy: Product Strategy: The Safe Tissue using the product strategy. Facial tissue which is for both facial and anti-bacterial tissue wipes use. This package has increased the sales. The two-in-one strategy is giving a competitive edge over his competitors (Srivastava Shubhra) Packaging Strategy: One more strategy which The Safe Tissue implemented is their packaging strategy; the single fold packing of tissue is really easy to carry in clothes. Also the health tips are also printed on the box of facial tissue pack. Also the wrapping of the plastic prevents the tissue from germs and bacteria (Abrams, 2003) Cost Strategy: The facial tissue packet of dual function has the valuable price. This strategy has offered the customers a golden opportunity to buy The Safe Tissue products. (Kogan, 2004) Distribution Strategy: Another effective strategy is distribution strategy. The location of the business is at main point where the access of the suppliers is feasible and convenient. The Safe Tissue company also have different distribution channels. (Haffor-Letchfield, 2011)Logistics management has efficiently working on this strategy Sales force structure: Sales force structure have significant place in business plan. There are three ways of structuring the sales forces. In house sales force means that the sales team of a company or second type of sales force structure is third party selling your product independently. Third type is sales force is middle way between pervious two strategies. The Safe tissue is using all three types but mainly their sales are depend on first type. The Safe Tissue company has competitive sale team. (A.Zoltners, Prabhakant, E.Loriner, 2006) Operating plan Research Development: The Safe tissue company has research and development department. This department has been started in 2013 after one year of business incorporation. The benefit of R D department is clear that sale entry of new product has increase the revenue of the company. Plant Equipments: New and branded machineries are imported from all over the world to produce the healthy tissue papers. The Safe Tissue has installed all its plants and equipment in the Free Zone area. Head office is situated in Abu Dhabi. Logistics: The Safe Tissue Company has its own logistics used for transporting the goods to market. Production Plans: Production plan is for targeting the niche in the market. They has their own staff and manufacturing unit with head office and site office. Operations: The Safe Tissue has SOPs for its manufacturing and production facility as prescribed by the ISO 9001:2008 and safety precautions are checked by the supervisors. The Safe Tissue company regulating all the legal requirements of the UAE. The Safe tissue further acquires more plant for manufacturing and packaging process. The production plan takes months to finalize the production line. Inventory Plan: Business fundamental stock might as well give a sensible collection of items and ought to be colossal enough to blanket the typical bargains mandates of your business. Depending on if youre a begin-up, you wont have real deals and stocking figures from past years to guide you, you should venture your first years deals dependent upon your business arrangement. Any time figuring fundamental stock, you should likewise figure in lead time-the time span between reordering and appropriating an item. For example, if your lead time is four weeks and a specific feature line pushes 10 units a week, then you should reorder when the fundamental stock level falls underneath 40 units. (Entreprenuer, 2006) Provided that you dont reorder until you really require the stock, youll need to hold up four weeks without the item. Inadequate stock denotes lost deals and excessive, drawn out delay purchases. Using up crude materials or parts that are essential to your handling technique denotes expanded working expenses, as well. Your representatives could be getting paid to sit around on the grounds that theres no work for them to do; when the stock does go in, theyll be paid for working extra time to make up for lost creation time. Avoiding Excess inventory: The Safe tissue company avoiding excess inventory as the inventory control system is up to date on regular basis. Information systems: IT is the key source of every business. In this modern era where everything is happening on computers shows the importance of Information Systems. The Safe Tissue has perpetual inventory system. Technical and efficient information technology team has leaded the company to a huge sale and moreover the functions of the company are implemented quickly. Milestones: In short Term goals, the safe Tissue wanted to be known by their health care about their customer. Medium term goal is to keep trying new and innovative ideas to compete their competitors. Long terms goals are to invent new product regarding tissue and new innovation about their products. To capture the whole GCC; the safe Tissue have to increase their plants and equipment to produce more capacity. Exit Plans: The total assets of the company are enough to sell and clear all debts. The Safe Tissue has valuable exit plan. In case of liquidation, all the assets are sold to clear all the liabilities Financial Plan: Table The Safe Tissue Cash Flow Forecast The Safe tissue Cash Flow Statement Cash Flows 2013 2014 2015 2016 AED AED AED AED Opening Cash Balance 700,000 RECEIPTS Cash Received from Sales 3,750,060 6,121,335 8,439,022 Loan Proceeds 15,000,000 TOTAL RECEIPTS 15,700,000 3,750,060 6,121,335 8,439,022 DISBURSEMENTS Machinery and equipment 13,000,000 Accounts Payable 0 0 0 0 Raw Materials 400,000 0 0 0 Supplies 50,000 50,000 50,000 50,000 Utilities 80,000 80,000 80,000 80,000 Advertising Promo 0 187,503 306,067 421,951 Maintenance Repairs 40,000 40,000 40,000 Wages Salaries 500,000 500,000 500,000 Taxes 0 0 0 0 Loan Repayment 0 2,250,000 2,250,000 2,250,000 Professional/Legal Fees 50,000 50,000 50,000 Total Disbursements 13,530,000 3,157,503 3,276,067 3,391,951 Surplus Deficit 2,170,000 592,557 2,845,268 5,047,071 Notes and Assumptions: The Owner of The Safe Tissue owned manufacturing facility The surplus in 2013 of 2,170,000 Dirhams is the capital reserved for the teams and R D department The cash inflow starts from 2014 The loan taken is 15 million and has to pay back 4 years The interest is 15 % at loan

What Is The Cost Of Capital Structure Finance Essay

What Is The Cost Of Capital Structure Finance Essay The cost of capital is the cost of a companys funds (both debt and equity), or, from an investors point of view the expected return on a portfolio of all the companys existing securities. It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet. In order to be a worthwhile investment, the expected return on equity is greater than the cost of capital. The capital cost of the return to capital is expected to earn in an alternative investment with similar risk. If a project similar to the average risk to the companys business, it is reasonable to use the companys average cost of capital underlying the ratings. The companys securities are typically in the debt and equity, the expected, both because of the cost of debt and equity costs of determining the companys capital. The cost of debt is relatively simple to calculate, since the interest rate is paid. In practice, the interest rates paid by the company modeled as a risk-free rate plus a risk component (risk premium), which also includes the expected probability (and the amount of recovery given default). For companies with similar credit risk or the interest rate is largely exogenous (to be explained by the use of external in this context). The cost of equity is more challenging to calculate as capital is not a fixed return to investors. Than the cost of the loan, the cost of equity, broadly defined as the estimated risk-adjusted returns that investors require, which yields a barely known. The cost of equity, therefore, conclude by comparing the investment and other investment (like) with similar risk profiles to determine the market cost of equity. If the cost of debt and equity costs have been established, a combination of the weighted average cost of capital (WACC), calculated. The WACC is then used to estimate the discount rate for project cash flows. In this paper I will explain, first, 1 chapter, the capital as well. From the second chapter, Sources of Capital, and finally, 3 chapter, capital will be explained. CAPITAL Capital, the most basic conditions for the money. All companies need capital to purchase assets and maintain operations. Corporate capital is available in two main forms: debt and equity. Debt refers to loans and other loans to be repaid in the future, usually with interest. The capital, however, generally do not impose a direct obligation to repay the amount. Instead, investors have a rule in the form of ownership shares in the company. The capital, wage describes the various means by which the capital of the people who save money for businesses that need money. Such transfers can be direct, which means that a company sells shares or bonds directly to investors, who own a business in return. Transfer of capital can also be made indirectly by investment bank or a financial intermediary such as a bank, broker or an insurance company. The indirect transfer through an investment bank, is selling the business assets of the bank, which in turn sells them to investors. In other words, the easy flow of capital investment bank. The indirect through a financial intermediary, however, a new form of capital, which is actually created. The intermediary bank or fund raise capital to invest and issue its own securities exchange. Then the broker uses the funds to buy stocks and bonds of companies. 1.1 Capital Structure Because of the small business capital is expensive, it is particularly important for small business owners to define the structure of the target companys capital. The share capital structure of debt and equity is achieved. Trade-offs are involved: increases the risk of liability to the companys revenue, which tends to reduce the companys stock. However, the debt lead to a higher expected return, which tends to increase a companys share price. As Brigham stated, The optimal capital structure is the one that strikes a balance between risk and return and thereby maximizes the price of shares and simultaneously reduce the cost of capital. Capital structure decision depends on several factors. One of the companys business risks and risks related to operations, which the company participates. Companies in the hazardous industries, such as high technology, lower than the optimal level of debt than other firms. Another factor in the companys capital structure involves tax situation. Since interest on debt is tax deductible, debt is usually better to use the company tax rate is high, and not many are able to protect income from taxation. The third important factor is the companys financial flexibility, or ability to raise capital in less than ideal conditions. The companies that are able to maintain a strong balance sheet resources generally can be more reasonable terms as other companies in the economic downturn. Brigham suggested that each company has a power reserve borrowing to defend themselves in the future. In general, tends to a stable level of sales, assets, collateral for loans to be good, and the high growth rate using a higher debt than other firms. On the other hand, the companies that have conservative management, high profitability, or poor credit ratings that they want to rely on equity instead. 1.2 The Modigliani and Miller Theorem 1.2.1 Definition The Modigliani-Miller theorem states that if there are no taxes, bankruptcy costs and asymmetric information, the efficient market, the companys value affects how it is financed with the equity shares or bonds, or a combination thereof, or what is the dividend policy. The kit is also known as capital structure is essentially irrelevant. A number of principles underlying rate, which agrees with the adoption of the tax and no taxation. The two main principle is that, firstly, if there is no tax, thus increasing the benefits of power does not create value, and second, that if there are taxes, the benefits in the form of interest tax shield occurs when you leverage and / or elevated. The price compares to the two companies one unlevered (ie, funded entirely of their own capital) and the second levered (ie, partially financed by equity and partly debt) and says that if the same value in all other ways the two companies are identical. For example, why it must be true, it is assumed that an investor buys a company or a levered or unlevered company. The investor buys shares in the companys levered or unlevered firm buys shares in a loan of an equivalent amount of money borrowed from the levered company. In both cases, the return on investment should be the same. Thus, the cost of the levered firm is the same as the unlevered firm minus the price of borrowed money, with the value of the levered companys debt. There is an implicit assumption that the investors cost of borrowing money is the same as the levered company, which is not necessarily true in the presence of asymmetric information, or in the absence of efficient markets. A company that is risky debt, as debt-equity ratio increases, the weighted average cost of capital is constant, but there is a higher return on equity, due to a higher risk for shareholders in the companys debt. 1.2.2 Advantages and Disadvantages of Modigliani and Millers Theorem Advantages: In practice, this can be said that none of the assumptions are met in the real world, but we teach the lot, that capital structure is important because one or more assumptions will be violated. Using mail-equations, economists find the determinant of an optimal capital structure and see how these factors affect the optimal capital structure. Disadvantages: Modigliani-Miller theorem, which justifies virtually unlimited economic power has been used to increase the economic and financial activities. However, its use also led to increased complexity, lack of transparency and greater risk and uncertainty in these activities. The global financial crisis of 2008, which saw a number of highly leveraged investment banks, has been partly attributed to the excessive leverage concepts. SOURCES OF CAPITAL 2.1 Debt Capital Small businesses can obtain debt capital from various sources. These sources can be divided into two broad categories, public and private sources. Private sources of debt financing according to W. Keith Schilit in The Entrepreneurs Guide for Preparing a winning business plan and venture capital, such as friends and relatives, banks, credit unions, consumer finance, commercial finance companies, trade financing, insurance, factor companies and leasing companies. Public sources of debt financing from a number of loans granted by the state and federal governments to support small businesses. Many types of debt financing to small businesses, including a private placement of bonds, convertible debentures, industrial development bonds and leveraged buyouts, but by far the most common type of debt financing in the conventional loan. Credits include the long-term (longer than a year) and short-term (maturity of less than two years), or the loan (for more immediate borrowing needs). These may be approved by the signatory, as the government, or secured to the property, debts, stocks, savings, life insurance, stocks and bonds, and purchased the product on the loan. In the evaluation of a small company, a loan, Jennifer Lindsey said in his book Guide to the contractor in the capital, the lenders prefer to have a two-year operating history, stable management team, a desirable niche in the industry, market share growth, strong cash flow and the ability to get short-term loan to supplement the funding from other sources. Most lenders require a small business owner to prepare a full proposal for a loan or credit application. The lender will then determine the application taking into account several factors. For example, the lender will consider the small business credit card, and look for evidence of their ability to repay the loan in the form of previous earnings or revenue forecasts. The lender will also consider how much equity in the business, and that management has sufficient experience and skills to function effectively. Finally, the lender seeks to determine whether the small firms in a reasonable amount of guarantee for the loan. 2.1.1 Cost of Debt The cost of debt is estimated by the risk-free interest rate bonds, whose length is equal to the yield curve for corporate debt and then add a default premium. This is the standard premium will increase in debt increases (since all else being equal, all other factors, increased the risk of increasing debt). Since in most cases, the debt burden of the deductible expense is the cost of after-tax cost of debt is expected to be comparable to the cost of equity (after tax). Thus, profitable companies, is debt at a discount. The formula can be written as: (Rf + credit risk rate)(1-T) where T is the corporate tax rate and Rf is the risk free rate. 2.2 Equity Capital Equity capital for small businesses is also available from many sources. Some possible sources of equity include the Farmer family and friends, private investors (the general practitioner, to groups of local business owners to wealthy entrepreneurs known as angels), employees, customers and suppliers, former employers, venture capital companies , to investment banking firms, insurance companies, corporations, and government-backed Small Business Investment Corporation (SBIC). There are two main methods that small businesses use to obtain equity finance: the private equity investors or venture capital firms, public stock issues. The private placement is easier and more common for young companies or start-ups. Even if the stock still closed with a number of federal and state securities laws, does not require formal registration with the Securities and Exchange Commission. The main requirements for private equity that the company did not advertise the offer, and you have to do the transaction directly to the customer. However, the public stock offering includes a lengthy and costly registration process. Indeed, it charges, the public stock offering in more than 20 percent of the capital. As a result, public stock offerings are generally a better choice for mature companies, as a starter. Bids may benefit from intervention maintaining control of a small company, but also expand the participation of different groups of investors, but by concentrating it in the hands of a venture capital company. 2.2.1 Cost of Equity Cost of equity = Risk free rate of return + Premium expected for risk Expected Return The expected return (or required rate of return for investors) can be calculated with the dividend capitalization model, which is: That equation is also seen as: Expected Return = dividend yield + growth rate of dividends. THE COST OF CAPITAL The capital required for a productive, as with any other factor is that there is a cost by Eugene F. Brighams book Fundamentals of Financial Management. In this case, the cost of debt capital the interest which the company must pay to borrow. In the capital cost shall be repaid to investors in dividends and capital gains. Since the amount of available capital is often limited, it is distributed in various companies on the basis of price. Business is the most profitable investment opportunities are willing and able to pay most of the capital and thus attract out inefficient firms, or those for which such goods are not in demand, Brigham explained. The good thing is that in most industrialized countries (eg USA, Germany, Japan, Britain, etc.), there are agencies that help individuals or groups of loans on favorable terms. Among those eligible for such assistance to small businesses, certain minorities, and the company is willing to build plants in areas with high unemployment. As usual, the cost of capital for small businesses tend to be higher than the big, established companies. Because of the higher risk for both service providers and charge a higher price for equity funds. Several researchers found that small stock portfolios have consistently achieved the higher average returns than large company stocks, it is called the small business impact. In fact, its bad news for small firms, where small companies effect means that the market requires a higher return on capital stocks of small companies than otherwise similar stocks of large companies. Therefore, the cost of equity is higher for small businesses. The weighted average cost of capital of the companys return that investors expect the various debt and equity issued by the company, according to Richard A. Brealey and Stewart C. Myers, in his book, Principles of Corporate Finance. Table 1 Cost of Capital 3.1 Capital Asset Pricing Model Capital Asset Pricing Model (CAPM) is used to determine the economics of the theoretically appropriate price of the asset as security. 3.1.1 The Expected Return on Equity According to the Capital Asset Pricing Model Market risk is generally characterized by ÃŽÂ ²-parameter. Thus, investors would expect (or demand) that: Where: Es: The expected return of security RF: The expected risk-free rate in this market (bonds) Î’s: Sensitivity to market risk to the safety RM: The historical performance of the stock market / stock market (Rm-rf): The risk premium in the market risk-free assets in the assets. Writing: The expected yield (%) = risk-free interest rate (%) * + sensitivity to market risk (the historical performance (%) risk-free interest rate (%)) Other expected yield (%) = yield of the bonds closest to the concept of the project or the projects safety + beta * (market risk premium) historically the market risk premium of 3-5% Comments The models show that investors expect a return on risk-free rate plus a market risk sensitivity of the security times the market risk premium. A truly risk-free rate is the lowest offer price for the bonds market, such as government bonds. The risk premium varies over time and space, but some developed countries in the twentieth century, an average of around 5%. The real stock market returns are roughly the same as the annual real GDP growth. The gains in the Dow Jones Industrial Average is 1.6% per year over the period 1910-2005. The dividend increased by all the real return on average equity in the double, about 3.2%. Sensitivity to market risk (ÃŽÂ ²) is unique to each company and depends on the management to every business and capital structure. This value is not known ex ante (beforehand), but may not be retrospective (past) experience with similar guarantees and undertakings. 3.2 Cost of Retained Earnings/Cost of Internal Equity We must remember that the profits from the component of equity, and thus the cost of retained earnings (internal equity) equal to the cost of equity capital as described above. The dividends (income paid to investors, and should not be) part of the return on capital to shareholders, and to influence the capital cost of the mechanism. 3.3 Weighted Average Cost of Capital What makes the weighted average cost of capital WACC does this mean? This estimate is the companys cost of capital, which is weighted in proportion to their capital. Each source of capital ordinary shares, preference shares, debentures and other long-term debt include the WACC calculation. Each equal to the WACC of a company increases the return on equity beta and the woman, and notes a reduction in the WACC increases and a higher level of risk. The total value of equity (for a company that no outstanding warrants and is the same as the companys market capitalization) plus the cost of debt (the cost of debt should be continually updated as a result of changes in the cost of debt interest rate changes). It should also be noted that justice in the debt-equity ratio of the total market value of equity, no equity on the balance sheet. To calculate the weighted cost of capital, we must first calculate the cost of some funding sources, namely: cost of debt Cost of Preference Capital cost of capital. WACC is calculated by an iterative procedure that requires an estimate of market value of equity. WACC formula is: [Rd x D / V x (1-5)] [Re x E / V] Rd = Bond yield to maturity (Y / Y Calculator) D = Market value (NPV) of debt (1 T) = 1 tax shield on interest deduction for interest expense = Re = shareholder return requirements V = value of total capital (debt equity) Generally, a company or assets financed by debt or equity securities. WACC is the average cost of financing sources, each weighted by its use in a given situation. By taking a weighted average, we see that much interest the company must pay for every dollar it finances. Since a companys WACC is the overall expected return on the company as a whole, and as such are often used internally by company directors to determine the economic feasibility of expansionary opportunities and mergers. This is the appropriate discount rate to use the cash flow risk similar to the entire company. 3.3.1 Example of Weighted Average Cost of Capital (WACC) A Corporation issued 10,000 units of the bonds, which currently sells for 98.5. The coupon rate of 6% this year bonds, the interest semi-annually. The remaining period of these bonds is 3 years. The companys current share price of two million common shares for $ 10 a share. The stock beta 1.5, a 4.5% risk-free rate on government bonds and the expected return on equity of 14.5%. The tax rate is 30% Table 2 Bond and Stock Calculations Bond Calculations Stock Calculations N = 3 x 2 = 6 I/Y = ? (Rd) PV = 0.985 x 10,000 x $1000 = $9,850,000 (D) PMT = (-10,000,000 x 0.06) / 2 = $-300,000 FV = $-10,000,000 P/Y = 2 C/Y = 2 Solution: I/Y = 6.56% Re = Rf + B[Rm Rf] Re = 0.045 + 1.5 [0.145 0.045] Re = 0.045 + 0.15 = 0.195 (19.5%) Market Value of Equity = E Stock price x common shares O/S $10 x 2,000,000 = $20,000,000 V = Total Capital Structure V = 9,850,000 (bonds debt) + 20,000,000 (equity of common shares) V = 29,850,000 3.4 Cost of Capital in Islamic Banking Proper use of investment criteria is important for industry and agriculture as well. Although the assessment can be used for both public and private sectors of the economy, should the public sector in its own special problems considered complementary, because the social costs and benefits. Therefore, we will participate in the private sector and the problems of evaluating investments in various industrial projects. Contradictions abound in the relative merits of different methods of investment valuation. But the most important points with different match. It is worth noting that almost every economist in the treatment discounting as a method of evaluation, as the only possible way to choose between different investments. Essentially two methods frequently used economists, namely the net present value (NPV) and the enlarged internal rate of return (IRR). The concept of internal rate of return (IRR) was JM Keynes (perhaps better known as the marginal efficiency of capital MEC) schedule, called the marginal efficiency of investment (MEI). It is defined as the rate at which the present value of future income exactly equal to the market price for the project. In other words, this is Return on capital employed. It is, committed while the return of the project. NPV of the project is formally defined as the value today of the surplus that the company can do in addition to the investors own marginal. IRR on the basis of the extended to the negative cash flows are discounted back to the companys cost of capital as long as it does not outweigh the positive cash flow. Both methods (the extended NVP and IRR) on its own common deficiencies, such as non-IRR NVP can be used either in the usual way that the correct ranking of projects in situations where the entrance is a rationing system. But there are ways to eliminate gaps and allow them to appropriate methods of investment evaluation. We will have a higher degree of internal rate of return, which is simply called the internal rate of return. A simple rule of decision in cases where the decision is all or nothing about which projects should be chosen from the various investment options, to implement all the projects whose IRR exceeds the cost of capital. Cost of capital, the capitalist system, the rate that a loan company and the investment is likely to be, which is simply the interest. In other words, that cut off rate, in relation to the internal rate of return regulation, which are also found in the literature as a barrier percentage. Note that the NPV approach to investment decisions, it is essential that decision-making, that there is no explicit prior discount rate, which, as already mentioned, is nothing more than to get money market rates. But they did not have a pre-determined percentage of the IRR method, except when its time, where debt capital is rationed in the various projects. This makes it completely independent of the IRR method is very appropriate rate and can be used for investments in the Islamic interest-free option and follow the debate. In the case of capitalism, is the internal greater than or equal to the market, the project will be implemented. The project also encourages companies to maximize profits, which last carried out the projects internal rate of return equal to interest. Apparently, the internal time of a declining function of investment, more projects, which would reduce the internal rate of return (in the same trade, of course). Already adopted (the Western economists) that the interest rate plays a decisive role in determining which projects will be implemented and also how much capital to be invested in various projects. Roll the relationship between these two terms seem to be exaggerated. Since only one project, the established criteria are quite valid and applicable as the optimal size of equity should be considered. As the number of projects increases, the IRR should be calculated for each project will increase so much. Moreover, it happens to all nodes in the two IRRs. This complicates the problem, and this will reduce the importance of interest, especially if interest rates happen to be far from the IRR to the last possible projects. Given that an investors risk-taking entrepreneurs, he is usually in front of the chains of investment options from which to choose allegedly, the first of the highest IRR. Assuming that you know, a lot of project finance, there may be dozens of projects whose IRR is higher than the going rate. There is no doubt that these projects are attractive, but to varying degrees, the contractor and will be selected in descending order rate. This is the case in the real economy, the role of interest rates is rather passive, even useless. This is because in such circumstances, the project IRR rate range. This is beyond that point to the role that a reasonable interest rate, and the role of the cut-off ratio. In other words, it is a long process before the existence of the interest rate becomes irrelevant, because the IRR for a couple of projects related to each other because of the interdependence refers to the ratio of investment is not at all. Exogenous real interest rate in the sector (especially investment), it is ironically suggested the capitalist system and then used to determine the optimal level of investment. In addition, the speculators, who needs money market interest in the products, allowing decisions to lead the business, whose activities are so important to the economy. It seems reasonable to link the contrary, ie, because of the interest, but we assume it to be the real sector, led by the monetary sector, if any. The abolition of an Islamic state, it would not be an external variable such as interest, what type and level of investment. Investment projects, in this framework are competing with each other, and the investment will be needed to achieve full employment, that is, until there are idle production factors in the economy. This is particularly true of human resources make it necessary and inherent meaning, as we see in Islam, the authorities should not keep the unemployed, for the sake of the interests of capitalists. Can easily be shown that in an Islamic context, for each part of the money (ie, the potential capital) that comes out of the interest-free banks to finance various projects under various types of contracts, it becomes possible to go directly to the products and / or services. Is a term, and it is: a prerequisite for an Islamic state is strictly prohibited, and appear to prevent speculation in any market (be it either money or goods). It has long been a misunderstanding among some Islamic scholars in the financial support that speculation can take place, and the abolition of interest is permitted. Easy to show that one-to-one correspondence between the interest (rate), and speculation. Interest rate (rate) is necessary and sufficient condition for the speculation that takes place. Although the lack of clearly illegal-frame-rate, if speculation is allowed in any market, you will definitely be of interest in its own nature. Therefore, the prohibition of interest leads logically to a ban on speculation. This interdependence between interest and speculation is not only very rarely in the economic literature, but also its negligence was the source of serious misunderstandings. Economic relations are rarely a single direction. A collection of the IRR can be measured both by an Islamic bank, Islamic banking sector, an independent agency authorized to appropriate guidance on the nature and viability of the project. This measure is to be used so that the expected profits can be divided into an Islamic bank and finance company demanding. The matrix is very useful for determining how much funding should be allocated to projects that are in the priority list for economic development. To determine the companys share of the profits, various factors, such as the following may be considered: the risk premium, the rate of poverty in different parts of the countrys priorities for economic development plans, the degree of capital intensity, taxes, employment considerations of the burden of rates and the like. All of these factors, or a combination thereof may affect the companys demanding (my fiancee) share of the profits that can be safely manipulated without interfering with the market mechanism. It gives interest-fr ee banking system, the IRR method, the absolute advantage of the artificial manipulation of interest rates, which is quite often the case in capitalist countries, and an obvious interference with market mechanisms. This contrasts with the situation are often held in the Western economists who argue that market mechanisms should be avoided. Add to this the expected negative correlation between interest and investment as both a classical and Keynesian economists have empirically demonstrated that infertile. This is so, while the bill may be taken into account the positive correlation between the rate of profit and investment. This bill provides not only the interest cost of the capitalist system, but also that profit maximization is consistent with the aims of each company. Surprisingly, however, this goal is at the micro level, the capitalist will change textbooks without a logical explanation for the negative correlation between interest investment at the macro level. Using the IRR method of an Islamic state is not only compatible with the goal of maximizing profits (if proof was not suitable for such a system) and to avoid interfering with market mechanisms but it is an absolute advantage in another, so the opportunity cost of capital to zero. The logic is simple. This lack of interest, all projects compete with each other (with due regard to their own priorities), internal rate of return. Also, the fact that the investment projects against each other at each other and there is no reason to ensure that any external factors to determine the same extent as the cost of capital for each project. The capitalist system, the current interest rate to be logically the next best alternative, or the cost of capital for each project. The logic of the independence of the IRR for the project. The second best option not to report to the IRR for a project according to an account must be seen as the opportunity cost of capital. This is because of the interdependence of all projects do not meet any of the BMR in another appropriate opportunity cost of the project, otherwise it would cost hundreds of alternatives to the capitalist framework, while the interest rate will be to measure the opportunity cost of all capital investment. In other words, to allow costs to be met independent state. Failure to consider the interdependencies between projects and independent degree of internal rate of investment has led to that many writers to form the misconception about the opportunity cost of capital. This lack of interest, there is nothing to compare the IRR of the various projects (with the exception of the IRR of the project by themselves). Interdependent and common to the Islamic banks, these proje

Othellos Loss for Words Essay -- Othello William Shakespeare Essays

Othello’s Loss for Words Othello’s character throughout the play demonstrates a skill and confidence in the art of language. From the beginning we see long, eloquent speeches that dazzle his audience – eloquently mixing complex words that help portray him as not only a strong warrior but also a fighter with a sound mind. However when Iago pressures him about the possible relationship between his wife Desdemona and Cassio, Othello’s passion for his beloved wife breaks down his self-control. In the next few pages I will demonstrate how Othello’s speech during the beginning of the play helps to strengthen his character, and by his death, he’s but a stuttering empty shell of a man. In addition, we’ll compare the language of the moor with that of Iago and see how anti-heroic words shape the way we see this self-interested character. During the third scene of the first act, Othello speaks eloquently about how he’s won and married Desdemona. This is a beautiful forty-line speech that really shows his capacity to articulate and communicate effectively before the higher court. The language that he uses helps us see Othello as a true, confident leader. Shakespeare writes: Hath this extent, no more, Rude am I in my speech, And little blessed with the soft phrase of peace, For since these arms of mine had seven years pith Till now some nine moons wasted, they have used Their dearest action in the tented field And little of this great world can I speak More than pertains to feats of broils and battle. (I.iii.81-87) Here Othello uses irony to subtly demonstrate his grasp of the English language. His claim that he is â€Å"rude† in speech is particularly revealing because he knows all too well that no one in that room would believe that he has rudimentary abilities. Similarly, the remaining line of this example shows us his poise with regard to physical strength and the leading of armies. Ultimately, use of this kind of language reflects Othello’s lofty ideals. From the onset, we are given words that mirror powerful, dramatic images that know no bounds – and with that, we see his strength and passion for being both an idealized military general and a devoted, loving husband. In contrast, if we look at the language of Iago we see long soliloqui... ...use of animal imagery continuing as before. In the final act of the play we see Iago’s language shift from long lines filled with evil thoughts to shorter sentences – much like Othello in act four. However, Iago’s slyness remains. Shakespeare writes: I have rubbed this young quat almost to the sense, And he grows angry. Now, whether he kill Cassio Or Cassio him, or each do kill each other, Every way makes my gain. (V.i.11-14) It isn’t until Othello begins to understand what has happened that we see a shift in each characters word selections. Once Othello slowly comes to realize Iago was behind the scandal, his confidence in speech begins to come back – and we start to notice more coherent thought. It’s interesting to think about how words play the most crucial role in creating imagery for an audience. In the case of these two characters, particularly Othello, the emotional wave he rode was only represented by his ever-changing use of words. In the beginning, we cheered for him – and by the end of play we weren’t sure what to think. Had he become as evil as Iago? Iago on the other hand, well, he’s just Iago.

Canterbury Tales Essay - Marriage and the Role of Women in the Wife of

Marriage and the Role of Women in the Wife of Bath’s Prologue  Ã‚   The Canterbury Tales, begun in 1387 by Geoffrey Chaucer, are written in heroic couplets iambic pentameters, and consist of a series of twenty-four linked tales told by a group of superbly characterized pilgrims ranging from Knight to Plowman. The characters meet at an Inn, in London, before journeying to the shrine of St Thomas a Becket at Canterbury. The Wife of Bath is one of these characters. She bases both her tale and her prologue on marriage and brings humor and intrigue to the tales, as she is lively and very often crudely spoken. Her role as a dominant female contrasts greatly with the others in the tales, like the prim and proper Prioress represents the argument for virginity, whereas the Wife upholds the state of marriage. Women were very much perceived as second-class citizens in the Fourteenth Century, they were rarely educated and had little status in society. In contrast, the two female characters in the book are from areas of society where it was possible for women to have influence probably as these characters would hold more interest for his readership. The prioress was undoubtedly the most powerful person in the nunnery and the Wife’s position as a weaver would gain her respect and power although it is implied that she achieves this through other means. Through the Wife Chaucer shows how women achieved authority through marriage, using humor typical of modern mother-in-law comedy. His tongue in cheek approach shows how the Wife controls her husbands, by terrorizing them so that each were "ful glad" when she "spake to hem faire". The reason for the Wife’s cruel treatment after marriage was that she no longer needed "to winne hir love, or do... ...ant in the modern day church. The aspects of marriage portrayed in the Wife of Bath’s prologue feature heavily around sexual pleasure and wealth. Her description shows the struggle for power causes conflict, occasional violence and abuse; all the while she is justifying her lifestyle and fighting for female equality. Despite no fidelity, love, or trust as deceit and affairs that seem to be commonplace the Wife of Bath ‘s description of married life is very much a comical one, which she does seem to enjoy especially if she achieves fulfillment. Altogether Chaucer’s portrait of 14th Century married life is at best a humorous battleground for independence, wealth and pleasures of the flesh. Works Cited: Chaucer, Geoffrey. The Canterbury Tales. The Norton Anthology: English Literature. Sixth Edition, vol. 1. Ed. Abrams, M.H. Norton & Company: New York, 1993.

Jack Sparrow Ca

Jack Sparrow Character Analysis. The Pirates of the Caribbean film series is one of the most popular film series to run its course through theaters in recent years. Action, adventure, and romance are some of the things we come to expect when we sit down to watch these amazing film adventures. But one of the things we can rely on most is the presence of Captain Jack Sparrow. While Sparrow was conceived to be only a supporting character, he proved to be popular after he was added into Disney’s theme park ride that spawned the movie series.Of course, a character as â€Å"far out† as Captain Jack had to be played by someone equally out-there: Johnny Depp. First we’ll talk about how Depp got into the role of Captain Jack and then I will analyze how Jack is portrayed as a character. In 2001, Depp was at Walt Disney Studios looking to do a family film. However, the fact that the Pirates theme park ride was going to be adapted into a film caught his attention first.Depp looked at the movie adaptation as a chance to revive his favorite movie genre,  and he was even more pleased when he found out the script fit his personality perfectly: a quirky pirate looking for adventure and in the end, showing he has a soft side. Depp was cast on June 10, 2002. Producer  of the series Jerry Bruckheimer  said that Depp was â€Å"an edgy actor who will kind of counter the Disney  Country Bears  soft quality and tell an audience that an adult and teenager can go see this and have a good time with it. When the cast got together for their read-through of the script, Depp surprised everyone by portraying the character in an off-kilter manner. After Depp did some research of his own on 18th century pirates, he compared the swashbucklers to modern rock stars and said he would base his performance on  Keith Richards. In a comic follow-up, Richards would later appear in two cameos as Jack's father,  Captain Teague, in  At World's End  and  On Stranger Tides. Director Gore Verbinski and Jerry Bruckheimer had confidence in Depp, in part because Orlando Bloom would be playing the traditional â€Å"hero† character in the series.Depp also improvised the film's final line, â€Å"Now, bring me that horizon†, which was writer Ted Elliot’s favorite line. Disney executives were, at first, confused by Depp's performance. Some even asked him whether the character was  drunk  or gay. Michael Eisner  even proclaimed while watching the events unfold, â€Å"He's ruining the film! †Ã‚  Depp actually fought back and responded, â€Å"Look, these are the choices I made. You know my work. So either trust me or give me the boot.   Some industry insiders also questioned Depp's casting, as he wasn’t known for working in a traditional studio setting and had even been called an unconventional actor. Depp's portrayal as Captain Jack Sparrow was critically acclaimed. Alan Morrison said â€Å"Gloriously over-the- top  Ã¢â‚¬ ¦ In terms of physical precision and verbal delivery, it's a master-class in comedy acting. †Ã‚  Roger Ebert  also found his performance â€Å"original in its every atom. There has never been a pirate, or for that matter a human being, like this in any other movie  Ã¢â‚¬ ¦ his behavior shows a lifetime of rehearsal. Ebert also praised Depp for moving away from the how Captain Jack was written. Depp won a  Screen Actor's Guild  award for his performance, and was also nominated for a  Golden Globe  and an  Academy Award for Best Actor, the first in his career. Film School Rejects  argued and wrote, â€Å"That because of Pirates, Depp has become as much a movie star as a  character actor. Johnny Depp returned as Jack Sparrow in  Dead Man's Chest, the first time the actor ever made a sequel. Drew McWeeny  stated, â€Å"Remember how cool  Han Solo  was in  Star Wars  the first time you saw it?And then remember how much cooler he seemed when  Empire  came out? This is that big a jump. †Ã‚  Depp received an  MTV Movie Award  and a  Teen Choice Award  for  Dead Man's Chest, and was also nominated for an  Empire Award  and another  Golden Globe. For his performance in  At World's End, Depp won an  MTV Movie Award  for Best Comedic Performance, as well as a  People's Choice Award, a  Kids' Choice Award, and another  Teen Choice Award. He has signed on to reprise the role for future sequels. Captain Jack appeals to us as moviegoers because he brings out our inner-most sense of adventure.We want him to succeed and we feel like we are right there when he takes us on an adventure. The first time we meet Captain Jack in The Curse of the Black Pearl he is sailing into Port Royal on a dinghy-like boat that is sinking to the ocean floor the during the whole scene. He eventually walks onto the dock from the crow’s nest, acting if nothing ever happened. He immediately pays off a dock worker in order to skip the mandatory ID check required to enter the city. This is what we love from a character; someone who makes the best of his situation and finds a way to get into the crowd.In the real world, we would never considering acting like Jack does. But in the movies, his adventure-seeking nature is something we crave. Despite all of the moral faults of Sparrow, the audience still finds him loveable. This is all thanks to Johnny Depp’s masterful portrayal. Depp was able to create a very human, multifaceted, believable character. What’s even weirder is that Jack is not the typical pirate that peaks our interests. He is not bulky, muscular, or very intimidating. His actions at some times are very effeminate.Although he used his brain more than brawn, the films will show us that he is very athletic on his own. Sparrow also shows us that it doesn’t matter who our friends are. Just look at his crew while he is commanding the Black Pearl. It is the most rag-tag group of pirates you will ever see. It even included a woman in the first movie, something that was very taboo for Captains to have in their crew at the time. Another bright spot on Sparrow is that he uses everything that is available to him. He may not be the best swordsman, but if there is anything that could possibly be a weapon near him, he will use it.Anything you can think of really; whiskey barrels, horses, even him fighting on a water-wheel that generates power. In Dead Man’s Chest Jack was found to be the accepted leader of a tribe of Caribbean natives. He somehow mastered their language and was living in the lap of luxury until he found out that he was going to be a human sacrifice. Things like this are what draw us to The Captain. His wild and crazy adventures may come to an end someday, but he will always be memorable to me and definitely left a mark on the movie world.

Erie Polymers joint venture Essay

INTRODUCTION ERIE speciality chemicals was a company which is based in Cleveland, Ohio, which moved to china due to the key support provided by them in expanding their industrial capacity relating to chemicals. In order to expand its production in China performance polymers had merged with Wuhan plastics factory to form Wuhan Erie Polymers (WEP). Stanley Wong was the manager of the team that negotiated the joint venture and soon became general manager and then chairperson of the Joint venture. Though he was very pleased with his transfer back to Gary, he wasn’t finished yet. He wanted to nominate a successor who would take the company to another level. He was a great leader as he motivated his employees in many aspects and he had also created a unique culture between the Chinese and the western practices. Ans1) if I had to advice the organisation on who to succeed Wong then I would choose MR Henri Boulanger as he has been in the organisation for the past 16 years and he also has 24 years of work experience. Though he lacks Chinese skills he yet gets along well with his Chinese subordinates. He has also been very effective in his current position and he has also introduced certain techniques such as marketing and networking which is very important for any organisation. According to me due to his intelligence and energetic levels he would also be able to inculcate leadership and adapt certain principles in the organisation in order for it to run efficiently and smoothly. He would follow a democratic leadership style where he will consult many employees in the organisation before taking any important decision regarding the company’s future. Certain theories relating to leadership are needed in many organizations for it to perform on a high scale. 1) Trait approach to leadership-Managers can utilize the information from the theory to evaluate their position in the organization and to assess how their position will be made stronger in the organization. This theory makes the managers realize their strengths and weaknesses and they can also get an understanding of how to develop their leadership qualities 2) Behavioral approach- this approach involves structuring the roles of the subordinates by providing them with instructions, and behaving in ways which will increase the performance of the group. Certain types of tasks are given to employees in order to meet the goals of the organization 3) Contingency approach to leadership-this theory refers to the group atmosphere and to the degree of confidence, loyalty, and attraction the followers feel about their leader. If certain favourable situations occur then there has been a positive relationship between the followers and the leader which means that the task was clearly defined and there is a clear leader position power. Certain principles which would be inculcated by MR Boulanger in the organization such as 1) Division of work 2) Authority and responsibility 3) Discipline 4) Unity of command 5) Unity of direction 6) Remuneration 7) order ans2) cross cultural differences and diversity conflicts the success of the joint venture depends upon the compatibility of the partners and this compatibility involves culture as well. Culpan (2002) suggests that each partner in the joint venture brings its own culture and if these cultures are not compatible then they will make the joint venture vulnerable. depending upon the source, it was reported that 37 and 70 percent joint ventures fail because of cross cultural differences between partners. These joint ventures have been reported to suffer from communication,  cooperation, commitment, and conflict-resolution problems caused by partners value and behaviour differences, which in turn causes interaction problems that adversely affects the joint venture performance. Moreover, value and behaviour differences between culturally distant partners influence interpretations and responses to strategic and managerial issues, compounding difficulties when making transactions and sharing information in international joint ventures (Mohr and Spekman, 1994). There are two types of cultures that directly affect the joint venture, first one is the organizational culture and second one is the national culture. Lane and Beamish (1990) stated that the problem in IJV’s is due to the influence of the national culture on the behaviour and management system that leads to conflicts and differences in the workplace. The organizational culture plays a significant role in the flow of knowledge within the organization but at the same time it can also act like obstruction in the process (Almeida et al. 2002). The national culture evolves around societal norms consisting of values which are shared by major part of the population. Once, a system has been developed it is very hard to change and any variation in the institution does not affect the societal norms due to the deeper levels of values and beliefs. (Hofstede, 2001, p.11) There are 3 broad categories used by the western organizations in order to manage differences in cultures when operating internationally. The first is that the organization can build a strong organizational culture internationally so that all parts of the organization, wherever they are located, share the same organizational culture. This approach assumes that the homogeneity of cultures creates the best way of managing the organization. This approach had also been criticised because in order of reproducing the culture to its simplest form the distinctiveness of the culture can be lost. The second approach for managing differences in culture is to develop a common technical or professional culture. This approach does not try to ensure homogeneity within the work force but it rather, seeks uniformity through strong financial and planning systems. The organizational structure dictates procedures and processes, as well as specifying the sources of expertise and decision making within the organizational hierarchy. The third approach is to leave each culture alone, allowing each subsidiary to develop its own organizational culture, which is probably tied to the national culture with varying degrees of influence. Hofstede (2001) came up with five dimensions of the national culture which all societies have to cope with and they used to measure cultural differences between organizations 1) power distance- the higher the power distance the more centralized and hierarchical the structure of the organization is. All organizations should increase their power distance in order to overcome any cultural barriers 2) uncertainty avoidance- organizations with high uncertainty avoidance are usually bigger in size and the loyalty is much stronger. These organizations are usually reluctant towards new technology and are more prone towards change. (Hofstede 2001) 3) Individualism and collectivism- this dimension measures the extent of the relationships an individual has towards the organization. Organizations having high IDV show individualistic and task –oriented behaviour of employees (Hofstede 2001) 4) Masculinity and femininity- organizations with high masculinity, promotes competitiveness and personal accomplishments and the managers are treated as heroes (Hofstede 2001) 5) Long vs short term orientation- if the organizations have a low LTO then importance is given to short term results. (Hofstede 2001) On the basis of these dimensions we can easily evaluate and improve the national culture which directly influences the culture of the organizations working within that environment. Ans 3) Evaluating a successor Stanley Wong who was the general manager of this company wanted to find a successor who would lead this company very well in order to maximize its sales and increase their productivity. With reference to certain concepts we can evaluate Wong’s challenge of finding a successor 1) Performance management- performance management should be seen as a collective responsibility of employees and employers to see that there is continuous improvement in the tasks, activities and jobs that are agreed upon for achieving the organizations vision, mission goals and objectives. Mathis and Jackson (2008) suggested that certain responsibilities managers need to take into account while managing the company. 1) Setting agendas- this includes taking responsibilities and setting goals and objectives for themselves and the teams. 2) Handling relationships- managing people is about managing superiors, customers, suppliers and other external contacts 3) Management values- understands what differentiate successful and appropriate management behaviour 4) Personality qualities- developing the necessary personal and psycho-logical characteristics to be able to deal with inevitable chaos, ambiguity and stress associated with managerial jobs 5) Self- awareness- understanding ones personal style of leadership and working patterns and how this might have an impact on others. There are also methods for management development 1) Coaching- this is relevant for particular individuals experiencing motivation or self-confidence 2) Project work- this involves working in cross cultural teams on particular projects. It provides exposure to different functions, ways of thinking and doing things, as well as providing an opportunity to learn about different parts of the organization. 3) Action learning- this approach capitalises by the fact that many people learn most effectively is by doing things. It also represents a team activity by which members are set out to define and solve a problem. 4) Secondments- this provides development for an individual through a job in another organization for a defined period. It also provides a way of broadening experience and of forcing the individual to leave their comfort zone by having to experience different way of doing things 5) Development  centres- the purpose of development centres is to focus on opportunities for directly to employees might undermine their power base and again concessions might be made unwisely. Thus there are certain concepts which are related to the challenges faced by Mr Wong in finding a successor. Conclusions Thus I would like to conclude by saying that the company might face a difficult period for a short time when Wong gets transferred. The new general manager would have to go through a challenging process in order to overcome cultural barriers and diversity conflicts in the organization. By introducing certain western management practices the company will be able to challenge on many fronts and also all the other employees will get along well with the Chinese employees and the company will run efficiently and smoothly. 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