Values of a servant leader Essay Example | Topics and Well Written Essays - 500 words

Values of a servant leader - Essay Example According to Myra, (1999), the term servant leader is used to describe ones power and authority to serve others through leadership. A nursing director is mandated to guide his or her followers by initiating and sustaining a relationship that support others in their work place and the environment (Savage-Austin, & Honeycutt, 2011). Servant leadership theory is practically a philosophy which explains the support of people that choose to serve first. It also encourages collaboration, trust, listening, and use of ethical power and empowerment. This theory explains the role of a servant leader and emphasizes on their duty to serve his or her followers, thus have desire to serve and this goes beyond desire to lead. Leadership is the art of the conduct and the person in any given organization. When persons are said to possess good or bad leadership qualities, it all depends on the way they carry themselves. According to Savage-Austin, & Honeycutt, (2011), great leadership works through emotions. However, it depends on whether these emotions are positive or negative. Positive emotions bring out the best outcomes from a leader. In this case, much of what a nursing director does when he or she is optimistic, can highly yield positive returns. On the other hand, when the director is negative about what he does, then, this leads to dissonance. Many people try to become leaders but they eventually fail. Those who succeed usually practice leadership strategies that are effective for them to be able to meet their desired goals or targets. One of the character traits of an effective leader is talent (Savage-Austin, & Honeycutt, 2011). Many people say that leaders are born with the talent but for them to be successful, they must gain experience through practice. It is apparent that most of the renowned and successful directors worldwide are very qualified

Product market cyclicality exerts a powerful influence on a car Essay

Product market cyclicality exerts a powerful influence on a car assemblers sales, value added, cash flow and profit performance - Essay Example Not only this it also contains automobile machinery and vehicle-care products, accessories, environment friendly and safety tools, garage and repair equipment, sample and colorant, grease & lubricants, machines deal with gasoline, wheels, and much more. Travelling and transportation of goods farther and faster than before are made possible only by automobile. It has unbolted wide scope and market for commerce and trade. The automobile industry directly influences the economies and wealth of many countries around the world. The manufacture of automobile uses great quantities of iron, steel, aluminum, and natural rubber. Moreover several other industries such as energy, security, assurance, roadway design and civil productions support the automobile industry. All these industries are cyclical businesses. The business environment is improving nowadays. As requirement increases, revenues go up and similarly with this, the companies come across it worth their time and money to practice capacity building plans. The Product market is one in which products are sold to companies instead of to customers. The product market comprises of items like raw materials, machines, and tools and is concerned with acquisition by company for their own use which may consecutively be used to produce items for the customer market. Cyclical is something that happens periodically, i.e. on a regular basis. Cyclicality is a very common frequent subject matter in the field of investment. Cyclicality is something that many small business owners may face. Stocks cyclicality generally means that stocks follow the common macroeconomic circumstances. A cyclical stock is one that characteristically implements fine when the economy is excellent and performs badly when the economy is fragile. Cyclicality is defined in a dictionary as â€Å"of or denoting a business or stock whose income, value, or earnings fluctuate widely according to variations in the economy or the cycle of the seasons† So far small business holders can only take action in order to reduce cyclicality and strengthen their income streams. A business can be moved into black by becoming creative, flexible, and open to new challenges. A business holder can take charge and make sure her firm's success by presenting new services, promoting skillfully, o r practicing new personal speculations. The automobile industry is a powerfully cyclical industry. For the macro-economy, its performance is frequently a lead indicator. It is very perceptive to causes, for instance product raw material input pricing (metals, plastic, glass etc), interest rates (most sales are economized, and the automobile businesses has high operational resources requirements), energy pricing, etc. As the industry goes down, the value-chain also goes downward with it. The automotive market is extremely cyclical. It depends on customer expenditures mainly and to a certain extent on purchaser sales inducements. The consumer demand for automobiles and automotive production is unfavorably affected by economic factors, for instance rising fuel costs. This could also adversely influence our overall sales and overall revenues. If automotive sales and production is declined; it would cause a possible decline in sales to vehicle manufacturers, and the result of this situat ion is a decline in results of operations and economic condition and hence in business. In the past, due to modification in common financial conditions and customer inclination, the automotive industry has been illustrated by periodic

Impact of Bank Mergers and Acquisitions on Pakistan Banks

Impact of Bank Mergers and Acquisitions on Pakistan Banks 1. INTRODUCTION 1.1 Background of the Study The Pakistani banking sector has undergone extraordinary transformation over the years, in provisions of number of organizations, ownership constitution, as well as the deepness of operations. These modifications have been prejudiced mostly by challenges pretended by deregulation in policies of financial sector, globalization of procedures, technical innovations and embracing of managerial and prudential necessities that kowtow to international principles. The wave of merger and acquisitions that currently swept through the banking sector started after the announcement by the state bank of Pakistan, that banks in Pakistan should beef up their minimum capital adequacy ratio should according to bank risk weighted assets or set by SBP. Mergers and Acquisitions are commonplace in developing countries of the world but are just becoming prominent in Pakistan. Merger and acquisition is simply another way of saying survival of the fittest that is to say a bigger, more efficient, better-capitalized, more skilled industry. Is part of the natural evolution of industries? It is primary driven by Business motives or market forces and Regulatory interventions. The issues therefore , which this study intend to address are whether merger and acquisition will bring about efficient reliable and sound capital base for the bank that fully embraced mergers and to what extend can bank merge boost the confidence of the customers , the investors , the shareholders and ability to finance the real time sector . 1.2 Problem statement The recent sudden increase of bank mergers in Pakistan is attracting much attention, partly because of keen interest in what motivates companies to merge and how mergers affect efficiency. A view holds that companys merger not just to obtain superior but also to be well-organized. It is argued that mergers allow the banking industry to take improvement of new occasions created by transformation in the technical and authoritarian surroundings. A dispute of this is the reduction in the number of banks countrywide but the concentration of power in local banking markets has not increased. The problems of under-capitalization, mismanagement and poor corporate governance have continued to be sources of instability and corruption in successive Pakistani banking crises up till now. Hence, mergers are singing a useful role in restructuring the banking industry with no risk and lack of opposition though, it collide on competence be worthy of attention. This research will consider this inspection by probing the effect of the merger as well acquisition that had taken place in the banking sector of Pakistan on the performance of a selected bank. 1.3 Objectives of the study The reason of this project is to examine the overall impact of Banks mergers and acquisitions in the Pakistani Banking sector. This research also focuses on some issues: To explore the collision of merger as well as acquisition on bank effectiveness, profitability, enlargement and endurance. To observe the impact of the merger as well as acquisition on the stage of competitiveness in the Pakistani Banking Sector. To classify those which will give advantage and be defeated in the merger and acquisition procedures? Does merger boost the capital base of banks? Does merger improve customers service delivery in the area of information technology, innovation and boosting customers confidence? 1.4 Hypothesis The hypothesis with the intention of testing in this research is stated below as: H0: Merger and acquisition has not impact on the banks performance in Pakistan h3: Merger and acquisition has an impact on the banks performance in Pakistan 1.5 Significance of the study The requirement for having a jingle economy and most especially disinfecting the banking sector; It is anticipated that this work will hold out a solution to the importance and recompense of merger and acquisition as a policy tool for the survival of our banking sector. It will equally be of a tremendous significance to those outside the financial sector, who do not know much about some of the benefit of bank merger and acquisition. 1.6 The scope and limitation of the study The study will not in any way inhabit on the technical issues connecting to merger and acquisition or in the locale of work out figures, slightly, it will attempt to examine the impact of merger and acquisition in the Banking industry of Pakistan. The study will be carried out in Islamabad/Rawalpindi. For this reason the result cannot be generalized. Also, the study has nothing to do with other banks even though a number of them have experienced mergers too. CHAPTER 2 2.0 LITERATURE REVIEW There are many companies that coming together to originate another company and companies taking over the currently existing companies to expand their business (Altunbas, 2005). Due to recession many Pakistani companies are facing the feeling of uncertainty rising which become reason to alarmed to businessmen, it is not astonishing when we listen to about the enormous corporate restructurings comes into being, particularly in the previous couple of years. Some companies have been taken over and numerous have going to take internal restructuring, while confident companies in same area of trade have consider it valuable to merge with each other to form one company. There are many gears of merger and acquisitions, offshoot, tender proposal, and many other forms of corporate restructuring in our daily news paper. Thus significant matters both for company decision and policy making and public image have been elevated. No company is considered secure from a conquest risk. On the encouraging elevation Mergers may be dangerous for the strong expansion and enlargement of the company. Victorious entry into innovative product and services and ecological markets may necessitate Mergers at some stage in the companys development. Flourishing contest in international markets may focus on abilities gain in a timely and proficient fashion in the course of Mergers. Most disputed that mergers boost value and competence and move capital to their uppermost and best uses, thus mounting shareholder value (Kruse, 2002). To decide on a merger or not is a complex issue, particularly in provisos of the technicalities concerned. We encompass almost all issues that the management must focus before taking final decision for merger. A lot of brainstorming would be necessary through the managements to attain conclusion. Judgment has to be fulfilled after discussing the advantages and disadvantages of the planned merger and the impact of that merger on the business, administrative benefits, on shareholders value, tax implications including stamp duty. 2.1 MERGER Meaning â€Å"A merger is a combining two companies in one corporation which is completely absorbed by another company. The less significant company loses its name and operates with more important company, which exists with its identity.† (Chawla, 2008) What Mergers actually mean: A merger is a combining two companies in one corporation which is completely absorbed by another company. It may entail absorption or consolidation. In absorption one company acquires another company. For example, Telenor and Tameer Microfinance Bank (TMB). In consolidation, two or more companies combine to form a new company. For example, Polka and Walls. The less significant corporation loses its identity and turn into the more significant corporation, which keep hold of its identity. A merger put out the merged corporation, and the existing company supposes all the rights, civil liberties, and liabilities of the merged company. A merger is not like a consolidation, in which two companies lose their detach uniqueness and join to make a totally new company. A rule is based on the relation that mergers inevitably remove competition between the merging companies. This relation is most sharp where the parties are direct opponent, because courts often believe that such provision are more horizontal to limit output and to raise prices. The terror that mergers and acquisitions decrease competition has inevitable that the government carefully examine planned mergers (Altunbas, 2005). in spite of disquiet about a decreasing of competition, companies are comparatively free to buy or sell whole companies or particular parts of a company. Mergers and acquisitions frequently result in a number of social reimbursements. Mergers can convey better management or technological skill to abide on underused assets. They also can create economies of scale and range that decrease costs, get better quality, and raise output. The opportunity of a takeover can deject company managers from acting in ways that fail to capitalize on profits. A merger can enable to owner to sell the company to someone who is more proverbial with the particular industry and maintain a better position to shell out the highest price. The view of a profitable sale encourages entrepreneurs to form new company. Merger is known as amalgamation too. Merger is the synthesis of two or more companies which are working in same era. All current and fixed assets, short and long term liabilities and the stocks of one company shifted toward other Company in reflection of payment in nature of: Cash Equity share of the acquired corporation, Debentures of acquired corporation, All of the above in mixed mode (Chawla, 2008) 2.2 Mergers vs. Acquisitions These conditions are usually used to describe same thing but in actuality, they have vaguely dissimilar meanings. An acquisition and merger pass on to the act of one corporation attainment of another company and obviously fitting the new possessor. Legally, the target corporation, the corporation that is bought, no more presents. Generally acquisition is use to acquired property in ownership. In the scenario of corporation combinations, an acquisition is to buy one company by getting controlling interest in all resources of other company. A merger is a combination of two or more corporations that are frequently about the similar size and concur to bond into one large corporation. In the scenario of a merger, mutually companys stocks come to an end to trade as the fresh corporation selects a latest name and a new stock is announced in position of the two different companys stock. This view of a merger is unrealistic by real world standards as it is often the case that one company is actually bought by another while the terms of the deal that is struck between the two allows for the company that is bought to publicize that a merger has occurred while the company that is doing the buying backs up this claim. This is done in order to allow the company that is bought to save face and avoid the negative connotations that go along with selling out. 2.3 Purpose of Mergers Acquisition: Purposes for mergers are given below. (1) Procurement of materials: To uphold the resources of supplies of raw materials or mediator product To get hold of economies of purchase as a discount, reduce transportation costs, many overhead costs to introduce new department, etc. To divide the reimbursement of suppliers economies by generalizing the resources (Cartwright, 1995). (2) Revamping production facilities: To accomplish economies of scale by combining production services throughout concentrated utilization of deposit and capital To generalized product specifications, perfection in quality of manufactured goods, growing market and planning at customers satisfaction in the course of amplification subsequent to sale services (Chawla, 2008) To attain improved manufacturing technology and knowledge from the acquired company To diminish cost, improvement in quality and manufacture competitive goods to hang on to and get better market share (Altunbas, 2005). (3) Market expansion and strategy: To get rid of competition and defend present market; To get new market channel in control of the acquirer; Strategic control of patents and copyrights To acquire innovative product for diversification or replacement of accessible goods and to increase products range; (Kruse, 2002) Strengthening keep hold of channels and sale the products to downsize the distribution; To decrease advertising cost and get better public image (4) Financial strength: To perk up liquidity and boast direct right to use to cash. To organize of extra and obsolete assets for cash To improve mechanism to maintain capacity, make use of better strength and the superior assets assistance; (Chawla, 2008) To achieve tax advantages To get better Earning Per Share (5) Commonachievements: To get better representation and draw attentions of better-quality managerial aptitude to administer its associations; To give more satisfaction to customers or product user (Chawla, 2008) (6) Own developmental plans: The main reason of merger and acquisition is reversed by the acquirer corporations strategies. A corporation decide to acquire the other business only when it develop it own goals to enlarge its operation by examining its internal strength where it is not going to face any difficulty in tax, accounting and in valuation of company, etc. It has a goal to attain a suitable amalgamation that provide opportunities to enhancement in its funds by increasing its securities. (7) Strategic purpose: The Acquirer Corporation inspect the merger to attain strategic goals in the course of substitute of amalgamation which could be vertical, horizontal merger, product expansion, market expansion or other particular different goals according to attentions of achieving the corporate strategies. Thus, various types of combinations distinct with each other in nature are adopted to pursue this objective like vertical or horizontal combination. (8) Corporate friendliness: Even though it is uncommon but it is reality that companies demonstrate degrees of cooperative spirit regardless of competitiveness to give security to each other from hostile takeovers and develop circumstances of partnership allotment of goodwill of another to get more efficiency through business amalgamation. (9) Desired level of integration: Mergers and acquisition are hunted to achieve the most wanted level of integration between the two corporations. This type of merger could be an operational or financial. The main reason and the necessities of the acquiring corporation get a long term benefit in choosing a appropriate partnership in merger or acquisition in companionship. (Chawla, 2008) 2.4 Reasons of merger Acquisition: The principal economic rationale of a merger id that the value of the combined entity is expected to be greater than the sum of the independent values of the merging entities. For example, if companys A and B merge, the value of the combined entity, V (AB), is expected to be greater than (VA+VB), the sum of the independent values of A and B. (Chawla, 2008) A variety of reasons like growth, diversification, economies of scale, managerial effectiveness and so on are cited in support of merger proposals. Some of them appear to be plausible in the sense that they create value; others seem to be dubious as they dont create value. The most plausible reasons in favor of mergers are strategic benefits, economies of scale, economies of scope, economies of vertical integration, complementary resources, tax shields, utilization of surplus funds, and managerial effectiveness. Strategic benefit: As a pre-emptive move it can prevents competitor from establishing a similar position in that industry. It offers a special timing advantage because the merger alternative enables the company to ‘leap frog several stages in the process of expansion. It may entail less risk and even less cost In a ‘saturated market, simultaneous expansion and replacement (through merger) makes more sense than creation of additional capacity through internal expansion Economies of scale: When two or more companys combine, certain economies are realized due to larger volume of operations of the combined entity. These economies arise because of more intensive utilization of production capacity, distribution networks, and research and development facilities, data processing systems and so on. Economies of scale are prominent in horizontal mergers where the scope of more intensive utilization of resources is greater. Even in conglomerate mergers there is scope for reduction of certain overhead expenses. Economies of scope: A company may use a specific set of skills or assets that it possesses to widen the scope of its activities. For example: proctor and gamble can enjoy economies or scope if it acquires a consumer product company that benefits from its highly regarded consumer marketing skills. Economies of vertical integration: When corporations occupied at dissimilar stages of manufacturing and value chain merge, financial system of vertical integration may be comprehend. For instance, the merger of a corporation occupied in searching and production with a company occupied in cleansing and marketing may get better co-ordination and manage. Vertical integration, though, is not forever a good thought. If a company does everything in-house it may not get the advantage of outsourcing from self-governing suppliers who may be additional well-organized in their division of the value chain. Complementary resources: If two companies have harmonizing resources, it may make sense for them to merge. A good example of a merger of companies which complemented each other well is the merger of online gift shop with TCS. Online gift shop is best to know the demands of customer but they dont have excellent transport infrastructure to deliver that gifts to customers but to make its system efficient online gift business should be merge/acquire with TCS or any other service like that. Tax shields: When a company with accumulated losses and/or unabsorbed depreciation merges with a profit making company, tax shields are utilized better. The company with accumulated losses and/or unabsorbed depreciation may not be able to derive tax advantages for a long time. However, when it merges with a profit making company, its accumulated losses and/or unabsorbed depreciation can be set off against the profits of the profit making company and the tax benefits can be quickly realized. (Mylonakis, 2006) Utilization of surplus funds: A company in a mature industry may generate a lot of cash but may not have opportunities for profitable investment. Such a company ought to distribute generous dividends and even buy back its shares, if the same is possible. However, most management has a tendency to make further investments, even though they may not be profitable. In such a situation, a merger with another company involving cash compensation often represents a more efficient utilization of surplus funds. Managerial effectiveness: One of the potential gains of merger is an increase in managerial effectiveness. This may occur if the existing management team, which is performing poorly, is replaced by a more effective management team. Another allied benefit of a merger may be in the form of greater congruence between the interests of the managers and the share holders. (Mylonakis, 2006) Often mergers are motivated by a desire to diversify and lower financing costs. Prima facie, these objectives look worthwhile, but they are not likely to enhance value. Diversification: A frequently acknowledged reason for mergers is to attain risk diminution through diversification. The degree, to which risk is condensed, of course, depends on the association connecting with the earnings of the merging units. at the same time as negative correlation fetches superior lessening in risk, positive correlation takes smaller diminution in risk. Corporate diversification, though, may present value in at smallest amount two special gears. (Chawla, 2008) 1) If a company is overwhelmed with troubles which can put in danger its existence and its merger with one more company can hoard it from possible liquidation. 2) If shareholders do not have the chance of diversification because one of the corporations is not traded in the bazaar, corporate diversification might be the merely possible route to risk diminution. Lower financing costs: The outcomes of larger size and greater earnings and stability, many argue, are to reduce the cost of borrowing for the merged company. The reason for this is that the creditors of the merged company enjoy better protection than the creditors of the merging companies independently. Increase Supply-Chain Pricing Power: Bybuying out one of its suppliers or one of the distributors, a business can eliminate a level of costs. If a company buys out one of its suppliers,it is able to save on themargins that the supplier was previouslyadding to its costs; this isknown asa vertical merger.If a company buys out a distributor, it may be able to ship its products at a lower cost. Eliminate Competition: Many MA dealsallow the acquirer to eliminate future competition and gain a larger market share inits products market.The downside of thisis that a large premium is usually required to convince the target companys shareholders to accept the offer. It is not uncommon for the acquiring companys shareholdersto sell their shares and push the price lower in response to the company paying too much for the target company. Synergy: The most used word inMA is synergy, which is the idea that by combining business activities, performance will increase and costs will decrease. Essentially, a business will attempt to merge with another business that has complementary strengths and weaknesses. (Mylonakis, 2006) 2.5 categories of mergers Acquisitions The resulted merger and acquisition is based on the offeror corporations attention what it desires to attain. Depend on offerors goal, mergers could be conglomeratic, vertical, horizontal, and circular which will explain below. I. Vertical combination: A corporation merged with another company to increase espousing in backward integration and forward integration to absorb the resources of supply in market. The acquiring business due to merger can reduce inventories and finished products. In the vertical combination, the acquirer may be a supplier or a buyer who use their intermediary material for finished goods. (Ahmed Badreldin, October 2009) There are some benefits from merger that acquiring companies achieved i.e. 1. Due to imperfect market and shortage of resources and obtained products, it gets strong position. 2. Has monopoly in goods specifications. II. Horizontal combination: It is a combination of two competitive companies which are at same level of success in industry, and both companies should be related from same business. The main rationale of such mergers is to get economies of scale by removing repetition of conveniences and the processes and expansions the product line, diminution in speculation in working capital, removal in competition attentiveness in product, lessening in advertising costs, raise in market segments and work out improved control on market (Badreldin, 2009). III. Circular combination: Corporations generating unique products look for merger to contribute to general division and investigate facilities to get economies by reducing cost on replication and prop up market growth. The acquiring corporation gets advantaged as diversification and resource sharing. IV. Conglomerate combination: It is combination of two corporations affianced in different businesses. Main reason of this type of merger remains consumption of finances and increase debt capacity by bringing change in their financial system and also boost share holders leveraging and earning per share, lessening average cost of capital and in that way raising present worth of the outstanding shares. Merger increases the on the whole constancy of the acquirer corporation and generates balance in the corporations whole portfolio of various products and manufacturing processes. (Sue Cartwright, May 01, 1995) V. Market-extension This entails the grouping of two corporations that sell the identical products in dissimilar markets. A market-extension permits for the market that can be accomplished to develop into larger and is the foundation for the repute of the merger. VI. Product-extension This merger is flanked by two corporations that sell different, but to some extent associated products, in a same market. This allows the new, larger company to group their goods and sells them with better success to the previously common market with the intention of the two different companies shared. VII. Accretive In accretive an acquired firms earnings per share enlarge. A substitute way of manipulative this is if a corporation with a high cost to earnings ratio obtains one with a less price earning ratio. (Chawla, 2008) 2.6 Concerns of Mergers Acquisitions Conglomerate, Horizontal and vertical mergers each hoist unique competitive alarms. Horizontal Mergers: Horizontal mergers lift up three basic cutthroat problems. The first is the removal of competition among merging corporations, which, depending on their bulk, could be important. The second is that the amalgamation of the merging companys operations might make sizeable market power and might facilitate the merged company to raise prices by falling output unilaterally. The third difficulty is that, by rising concentration in the related market, the deal might make stronger the ability of the markets outstanding contributors to synchronize their pricing and production decisions. The terror is not that the companies will connect in secret partnership but that the decrease in the number of industry members will improve implicit coordination of performance. (Chawla, 2008) Vertical Mergers: Vertical mergers have two essential forms: Forward integration: by which a company purchases a customer, and backward integration, in which a company gets a supplier. Swapping the market contacts with interior transfers can present at least two foremost benefits. First, the vertical merger maintains all transactions between a producer and its supplier, as a result adapt a potentially adversarial association into impressive more like a partnership. Next, internalization can provide management more effectual ways to scrutinize and get better performance. Vertical integration merger does not diminish the total number of economic units working at one level of the market, but it is changing patterns of industry performance. Either its a forward or backward integration, the newly acquired company may make a decision to deal only with the acquiring company, thus changing competition between the acquiring companys suppliers, customers, or opponents. Suppliers may misplace a market for their possessions; retail channel may be destitute of supplies; or opponents may locate that both supplies and channel are infertile. These potential raise to the anxiety that vertical integration will shut out opponents by restrictive their access to resources of supply or to customers. Vertical mergers also might be less competitive because their well-established market power may hamper new industry from entering the market. (Chawla, 2008) Conglomerate Mergers: Conglomerate mergers take many forms, series from provisional joint ventures to complete mergers. Moreover a multinational merger is wholesome, ecological, or a product-line addition, it engages companys that operate in separate markets. Therefore, a corporation transaction generally has no direct result on competition. There is no reduction or other alters in the number of companies in both the acquiring and acquired corporations market. (Chawla, 2008) Conglomerate mergers can provide a market or requirement for companies, therefore giving entrepreneurs liquidity at an open market price and with a key inducement to form new enterprises. The danger of conquest might force offered managers to increase competence in competitive markets. Conglomerate mergers also offer openings for companies to lessen capital costs and transparency and to attain other efficiencies. Conglomerate mergers, though, may lessen future competition by get rid of the option that acquiring company would have come into the acquired companys market separately. A conglomerate merger may exchange a strong company into a leading one with an influential competitive benefit, or else formulate a policy to make it complex for other corporations to penetrate the market. Such mergers also may lessen the number of minor companies and may enlarge the merged companys political influence, in that way weaken the social and political objectives of keeps self-governing decision-making hubs, assurance that small firm will get opportunities, and defending democratic practices. (Mylonakis, 2006) 2.7 Benefits of Mergers Acquisition Diversification: Corporations that want quick growth in dimension or diversification or market share in the variety of products may discover that a merger can be worn to accomplish the intentions instead of obtainable throughout the volume overriding practices of internal expansion or diversification. The company may attain the similar goals in a short time period merging with an existing company. Moreover this type of a strategy is frequently show low cost than the alternative of mounting the necessary production potential and capability. If a company that wants to expand operations in existing or new product area can find a suitable going concern (Altunbas, 2005). It may avoid many of risks associated with a design; manufacture the sale of addition or new products. Moreover when a company expands or extends its product line by acquiring another company, it also removes a potential competitor. Synergism: The scenery of synergism is very simple. Synergism exists at any time the value of the combination is greater than the sum of the real values. We can explain it as; synergism is â€Å"2+2=5†. But categorize synergy on appraise it may be difficult; in fact occasionally its implementations may be very delicate (Chawla, 2008). As generally defined to include any incremental worth is resulting from business combination, synergism in the basic economic good reason of merger. The incremental value may draw from raise in either operational or financial competence. (Chawla, 2008) Operating Synergism: Operating synergism may result from economies of scale, some degree of monopoly power or increased managerial efficiency. The value may be achieved by increasing the sales volume in relation to assts employed increasing profit margins or decreasing operating risks. Although operating synergy usually is the result of either vertical/horizontal integration some synergistic also may result from conglomerate growth. In addition, sometimes a company may acqu Impact of Bank Mergers and Acquisitions on Pakistan Banks Impact of Bank Mergers and Acquisitions on Pakistan Banks 1. INTRODUCTION 1.1 Background of the Study The Pakistani banking sector has undergone extraordinary transformation over the years, in provisions of number of organizations, ownership constitution, as well as the deepness of operations. These modifications have been prejudiced mostly by challenges pretended by deregulation in policies of financial sector, globalization of procedures, technical innovations and embracing of managerial and prudential necessities that kowtow to international principles. The wave of merger and acquisitions that currently swept through the banking sector started after the announcement by the state bank of Pakistan, that banks in Pakistan should beef up their minimum capital adequacy ratio should according to bank risk weighted assets or set by SBP. Mergers and Acquisitions are commonplace in developing countries of the world but are just becoming prominent in Pakistan. Merger and acquisition is simply another way of saying survival of the fittest that is to say a bigger, more efficient, better-capitalized, more skilled industry. Is part of the natural evolution of industries? It is primary driven by Business motives or market forces and Regulatory interventions. The issues therefore , which this study intend to address are whether merger and acquisition will bring about efficient reliable and sound capital base for the bank that fully embraced mergers and to what extend can bank merge boost the confidence of the customers , the investors , the shareholders and ability to finance the real time sector . 1.2 Problem statement The recent sudden increase of bank mergers in Pakistan is attracting much attention, partly because of keen interest in what motivates companies to merge and how mergers affect efficiency. A view holds that companys merger not just to obtain superior but also to be well-organized. It is argued that mergers allow the banking industry to take improvement of new occasions created by transformation in the technical and authoritarian surroundings. A dispute of this is the reduction in the number of banks countrywide but the concentration of power in local banking markets has not increased. The problems of under-capitalization, mismanagement and poor corporate governance have continued to be sources of instability and corruption in successive Pakistani banking crises up till now. Hence, mergers are singing a useful role in restructuring the banking industry with no risk and lack of opposition though, it collide on competence be worthy of attention. This research will consider this inspection by probing the effect of the merger as well acquisition that had taken place in the banking sector of Pakistan on the performance of a selected bank. 1.3 Objectives of the study The reason of this project is to examine the overall impact of Banks mergers and acquisitions in the Pakistani Banking sector. This research also focuses on some issues: To explore the collision of merger as well as acquisition on bank effectiveness, profitability, enlargement and endurance. To observe the impact of the merger as well as acquisition on the stage of competitiveness in the Pakistani Banking Sector. To classify those which will give advantage and be defeated in the merger and acquisition procedures? Does merger boost the capital base of banks? Does merger improve customers service delivery in the area of information technology, innovation and boosting customers confidence? 1.4 Hypothesis The hypothesis with the intention of testing in this research is stated below as: H0: Merger and acquisition has not impact on the banks performance in Pakistan h3: Merger and acquisition has an impact on the banks performance in Pakistan 1.5 Significance of the study The requirement for having a jingle economy and most especially disinfecting the banking sector; It is anticipated that this work will hold out a solution to the importance and recompense of merger and acquisition as a policy tool for the survival of our banking sector. It will equally be of a tremendous significance to those outside the financial sector, who do not know much about some of the benefit of bank merger and acquisition. 1.6 The scope and limitation of the study The study will not in any way inhabit on the technical issues connecting to merger and acquisition or in the locale of work out figures, slightly, it will attempt to examine the impact of merger and acquisition in the Banking industry of Pakistan. The study will be carried out in Islamabad/Rawalpindi. For this reason the result cannot be generalized. Also, the study has nothing to do with other banks even though a number of them have experienced mergers too. CHAPTER 2 2.0 LITERATURE REVIEW There are many companies that coming together to originate another company and companies taking over the currently existing companies to expand their business (Altunbas, 2005). Due to recession many Pakistani companies are facing the feeling of uncertainty rising which become reason to alarmed to businessmen, it is not astonishing when we listen to about the enormous corporate restructurings comes into being, particularly in the previous couple of years. Some companies have been taken over and numerous have going to take internal restructuring, while confident companies in same area of trade have consider it valuable to merge with each other to form one company. There are many gears of merger and acquisitions, offshoot, tender proposal, and many other forms of corporate restructuring in our daily news paper. Thus significant matters both for company decision and policy making and public image have been elevated. No company is considered secure from a conquest risk. On the encouraging elevation Mergers may be dangerous for the strong expansion and enlargement of the company. Victorious entry into innovative product and services and ecological markets may necessitate Mergers at some stage in the companys development. Flourishing contest in international markets may focus on abilities gain in a timely and proficient fashion in the course of Mergers. Most disputed that mergers boost value and competence and move capital to their uppermost and best uses, thus mounting shareholder value (Kruse, 2002). To decide on a merger or not is a complex issue, particularly in provisos of the technicalities concerned. We encompass almost all issues that the management must focus before taking final decision for merger. A lot of brainstorming would be necessary through the managements to attain conclusion. Judgment has to be fulfilled after discussing the advantages and disadvantages of the planned merger and the impact of that merger on the business, administrative benefits, on shareholders value, tax implications including stamp duty. 2.1 MERGER Meaning â€Å"A merger is a combining two companies in one corporation which is completely absorbed by another company. The less significant company loses its name and operates with more important company, which exists with its identity.† (Chawla, 2008) What Mergers actually mean: A merger is a combining two companies in one corporation which is completely absorbed by another company. It may entail absorption or consolidation. In absorption one company acquires another company. For example, Telenor and Tameer Microfinance Bank (TMB). In consolidation, two or more companies combine to form a new company. For example, Polka and Walls. The less significant corporation loses its identity and turn into the more significant corporation, which keep hold of its identity. A merger put out the merged corporation, and the existing company supposes all the rights, civil liberties, and liabilities of the merged company. A merger is not like a consolidation, in which two companies lose their detach uniqueness and join to make a totally new company. A rule is based on the relation that mergers inevitably remove competition between the merging companies. This relation is most sharp where the parties are direct opponent, because courts often believe that such provision are more horizontal to limit output and to raise prices. The terror that mergers and acquisitions decrease competition has inevitable that the government carefully examine planned mergers (Altunbas, 2005). in spite of disquiet about a decreasing of competition, companies are comparatively free to buy or sell whole companies or particular parts of a company. Mergers and acquisitions frequently result in a number of social reimbursements. Mergers can convey better management or technological skill to abide on underused assets. They also can create economies of scale and range that decrease costs, get better quality, and raise output. The opportunity of a takeover can deject company managers from acting in ways that fail to capitalize on profits. A merger can enable to owner to sell the company to someone who is more proverbial with the particular industry and maintain a better position to shell out the highest price. The view of a profitable sale encourages entrepreneurs to form new company. Merger is known as amalgamation too. Merger is the synthesis of two or more companies which are working in same era. All current and fixed assets, short and long term liabilities and the stocks of one company shifted toward other Company in reflection of payment in nature of: Cash Equity share of the acquired corporation, Debentures of acquired corporation, All of the above in mixed mode (Chawla, 2008) 2.2 Mergers vs. Acquisitions These conditions are usually used to describe same thing but in actuality, they have vaguely dissimilar meanings. An acquisition and merger pass on to the act of one corporation attainment of another company and obviously fitting the new possessor. Legally, the target corporation, the corporation that is bought, no more presents. Generally acquisition is use to acquired property in ownership. In the scenario of corporation combinations, an acquisition is to buy one company by getting controlling interest in all resources of other company. A merger is a combination of two or more corporations that are frequently about the similar size and concur to bond into one large corporation. In the scenario of a merger, mutually companys stocks come to an end to trade as the fresh corporation selects a latest name and a new stock is announced in position of the two different companys stock. This view of a merger is unrealistic by real world standards as it is often the case that one company is actually bought by another while the terms of the deal that is struck between the two allows for the company that is bought to publicize that a merger has occurred while the company that is doing the buying backs up this claim. This is done in order to allow the company that is bought to save face and avoid the negative connotations that go along with selling out. 2.3 Purpose of Mergers Acquisition: Purposes for mergers are given below. (1) Procurement of materials: To uphold the resources of supplies of raw materials or mediator product To get hold of economies of purchase as a discount, reduce transportation costs, many overhead costs to introduce new department, etc. To divide the reimbursement of suppliers economies by generalizing the resources (Cartwright, 1995). (2) Revamping production facilities: To accomplish economies of scale by combining production services throughout concentrated utilization of deposit and capital To generalized product specifications, perfection in quality of manufactured goods, growing market and planning at customers satisfaction in the course of amplification subsequent to sale services (Chawla, 2008) To attain improved manufacturing technology and knowledge from the acquired company To diminish cost, improvement in quality and manufacture competitive goods to hang on to and get better market share (Altunbas, 2005). (3) Market expansion and strategy: To get rid of competition and defend present market; To get new market channel in control of the acquirer; Strategic control of patents and copyrights To acquire innovative product for diversification or replacement of accessible goods and to increase products range; (Kruse, 2002) Strengthening keep hold of channels and sale the products to downsize the distribution; To decrease advertising cost and get better public image (4) Financial strength: To perk up liquidity and boast direct right to use to cash. To organize of extra and obsolete assets for cash To improve mechanism to maintain capacity, make use of better strength and the superior assets assistance; (Chawla, 2008) To achieve tax advantages To get better Earning Per Share (5) Commonachievements: To get better representation and draw attentions of better-quality managerial aptitude to administer its associations; To give more satisfaction to customers or product user (Chawla, 2008) (6) Own developmental plans: The main reason of merger and acquisition is reversed by the acquirer corporations strategies. A corporation decide to acquire the other business only when it develop it own goals to enlarge its operation by examining its internal strength where it is not going to face any difficulty in tax, accounting and in valuation of company, etc. It has a goal to attain a suitable amalgamation that provide opportunities to enhancement in its funds by increasing its securities. (7) Strategic purpose: The Acquirer Corporation inspect the merger to attain strategic goals in the course of substitute of amalgamation which could be vertical, horizontal merger, product expansion, market expansion or other particular different goals according to attentions of achieving the corporate strategies. Thus, various types of combinations distinct with each other in nature are adopted to pursue this objective like vertical or horizontal combination. (8) Corporate friendliness: Even though it is uncommon but it is reality that companies demonstrate degrees of cooperative spirit regardless of competitiveness to give security to each other from hostile takeovers and develop circumstances of partnership allotment of goodwill of another to get more efficiency through business amalgamation. (9) Desired level of integration: Mergers and acquisition are hunted to achieve the most wanted level of integration between the two corporations. This type of merger could be an operational or financial. The main reason and the necessities of the acquiring corporation get a long term benefit in choosing a appropriate partnership in merger or acquisition in companionship. (Chawla, 2008) 2.4 Reasons of merger Acquisition: The principal economic rationale of a merger id that the value of the combined entity is expected to be greater than the sum of the independent values of the merging entities. For example, if companys A and B merge, the value of the combined entity, V (AB), is expected to be greater than (VA+VB), the sum of the independent values of A and B. (Chawla, 2008) A variety of reasons like growth, diversification, economies of scale, managerial effectiveness and so on are cited in support of merger proposals. Some of them appear to be plausible in the sense that they create value; others seem to be dubious as they dont create value. The most plausible reasons in favor of mergers are strategic benefits, economies of scale, economies of scope, economies of vertical integration, complementary resources, tax shields, utilization of surplus funds, and managerial effectiveness. Strategic benefit: As a pre-emptive move it can prevents competitor from establishing a similar position in that industry. It offers a special timing advantage because the merger alternative enables the company to ‘leap frog several stages in the process of expansion. It may entail less risk and even less cost In a ‘saturated market, simultaneous expansion and replacement (through merger) makes more sense than creation of additional capacity through internal expansion Economies of scale: When two or more companys combine, certain economies are realized due to larger volume of operations of the combined entity. These economies arise because of more intensive utilization of production capacity, distribution networks, and research and development facilities, data processing systems and so on. Economies of scale are prominent in horizontal mergers where the scope of more intensive utilization of resources is greater. Even in conglomerate mergers there is scope for reduction of certain overhead expenses. Economies of scope: A company may use a specific set of skills or assets that it possesses to widen the scope of its activities. For example: proctor and gamble can enjoy economies or scope if it acquires a consumer product company that benefits from its highly regarded consumer marketing skills. Economies of vertical integration: When corporations occupied at dissimilar stages of manufacturing and value chain merge, financial system of vertical integration may be comprehend. For instance, the merger of a corporation occupied in searching and production with a company occupied in cleansing and marketing may get better co-ordination and manage. Vertical integration, though, is not forever a good thought. If a company does everything in-house it may not get the advantage of outsourcing from self-governing suppliers who may be additional well-organized in their division of the value chain. Complementary resources: If two companies have harmonizing resources, it may make sense for them to merge. A good example of a merger of companies which complemented each other well is the merger of online gift shop with TCS. Online gift shop is best to know the demands of customer but they dont have excellent transport infrastructure to deliver that gifts to customers but to make its system efficient online gift business should be merge/acquire with TCS or any other service like that. Tax shields: When a company with accumulated losses and/or unabsorbed depreciation merges with a profit making company, tax shields are utilized better. The company with accumulated losses and/or unabsorbed depreciation may not be able to derive tax advantages for a long time. However, when it merges with a profit making company, its accumulated losses and/or unabsorbed depreciation can be set off against the profits of the profit making company and the tax benefits can be quickly realized. (Mylonakis, 2006) Utilization of surplus funds: A company in a mature industry may generate a lot of cash but may not have opportunities for profitable investment. Such a company ought to distribute generous dividends and even buy back its shares, if the same is possible. However, most management has a tendency to make further investments, even though they may not be profitable. In such a situation, a merger with another company involving cash compensation often represents a more efficient utilization of surplus funds. Managerial effectiveness: One of the potential gains of merger is an increase in managerial effectiveness. This may occur if the existing management team, which is performing poorly, is replaced by a more effective management team. Another allied benefit of a merger may be in the form of greater congruence between the interests of the managers and the share holders. (Mylonakis, 2006) Often mergers are motivated by a desire to diversify and lower financing costs. Prima facie, these objectives look worthwhile, but they are not likely to enhance value. Diversification: A frequently acknowledged reason for mergers is to attain risk diminution through diversification. The degree, to which risk is condensed, of course, depends on the association connecting with the earnings of the merging units. at the same time as negative correlation fetches superior lessening in risk, positive correlation takes smaller diminution in risk. Corporate diversification, though, may present value in at smallest amount two special gears. (Chawla, 2008) 1) If a company is overwhelmed with troubles which can put in danger its existence and its merger with one more company can hoard it from possible liquidation. 2) If shareholders do not have the chance of diversification because one of the corporations is not traded in the bazaar, corporate diversification might be the merely possible route to risk diminution. Lower financing costs: The outcomes of larger size and greater earnings and stability, many argue, are to reduce the cost of borrowing for the merged company. The reason for this is that the creditors of the merged company enjoy better protection than the creditors of the merging companies independently. Increase Supply-Chain Pricing Power: Bybuying out one of its suppliers or one of the distributors, a business can eliminate a level of costs. If a company buys out one of its suppliers,it is able to save on themargins that the supplier was previouslyadding to its costs; this isknown asa vertical merger.If a company buys out a distributor, it may be able to ship its products at a lower cost. Eliminate Competition: Many MA dealsallow the acquirer to eliminate future competition and gain a larger market share inits products market.The downside of thisis that a large premium is usually required to convince the target companys shareholders to accept the offer. It is not uncommon for the acquiring companys shareholdersto sell their shares and push the price lower in response to the company paying too much for the target company. Synergy: The most used word inMA is synergy, which is the idea that by combining business activities, performance will increase and costs will decrease. Essentially, a business will attempt to merge with another business that has complementary strengths and weaknesses. (Mylonakis, 2006) 2.5 categories of mergers Acquisitions The resulted merger and acquisition is based on the offeror corporations attention what it desires to attain. Depend on offerors goal, mergers could be conglomeratic, vertical, horizontal, and circular which will explain below. I. Vertical combination: A corporation merged with another company to increase espousing in backward integration and forward integration to absorb the resources of supply in market. The acquiring business due to merger can reduce inventories and finished products. In the vertical combination, the acquirer may be a supplier or a buyer who use their intermediary material for finished goods. (Ahmed Badreldin, October 2009) There are some benefits from merger that acquiring companies achieved i.e. 1. Due to imperfect market and shortage of resources and obtained products, it gets strong position. 2. Has monopoly in goods specifications. II. Horizontal combination: It is a combination of two competitive companies which are at same level of success in industry, and both companies should be related from same business. The main rationale of such mergers is to get economies of scale by removing repetition of conveniences and the processes and expansions the product line, diminution in speculation in working capital, removal in competition attentiveness in product, lessening in advertising costs, raise in market segments and work out improved control on market (Badreldin, 2009). III. Circular combination: Corporations generating unique products look for merger to contribute to general division and investigate facilities to get economies by reducing cost on replication and prop up market growth. The acquiring corporation gets advantaged as diversification and resource sharing. IV. Conglomerate combination: It is combination of two corporations affianced in different businesses. Main reason of this type of merger remains consumption of finances and increase debt capacity by bringing change in their financial system and also boost share holders leveraging and earning per share, lessening average cost of capital and in that way raising present worth of the outstanding shares. Merger increases the on the whole constancy of the acquirer corporation and generates balance in the corporations whole portfolio of various products and manufacturing processes. (Sue Cartwright, May 01, 1995) V. Market-extension This entails the grouping of two corporations that sell the identical products in dissimilar markets. A market-extension permits for the market that can be accomplished to develop into larger and is the foundation for the repute of the merger. VI. Product-extension This merger is flanked by two corporations that sell different, but to some extent associated products, in a same market. This allows the new, larger company to group their goods and sells them with better success to the previously common market with the intention of the two different companies shared. VII. Accretive In accretive an acquired firms earnings per share enlarge. A substitute way of manipulative this is if a corporation with a high cost to earnings ratio obtains one with a less price earning ratio. (Chawla, 2008) 2.6 Concerns of Mergers Acquisitions Conglomerate, Horizontal and vertical mergers each hoist unique competitive alarms. Horizontal Mergers: Horizontal mergers lift up three basic cutthroat problems. The first is the removal of competition among merging corporations, which, depending on their bulk, could be important. The second is that the amalgamation of the merging companys operations might make sizeable market power and might facilitate the merged company to raise prices by falling output unilaterally. The third difficulty is that, by rising concentration in the related market, the deal might make stronger the ability of the markets outstanding contributors to synchronize their pricing and production decisions. The terror is not that the companies will connect in secret partnership but that the decrease in the number of industry members will improve implicit coordination of performance. (Chawla, 2008) Vertical Mergers: Vertical mergers have two essential forms: Forward integration: by which a company purchases a customer, and backward integration, in which a company gets a supplier. Swapping the market contacts with interior transfers can present at least two foremost benefits. First, the vertical merger maintains all transactions between a producer and its supplier, as a result adapt a potentially adversarial association into impressive more like a partnership. Next, internalization can provide management more effectual ways to scrutinize and get better performance. Vertical integration merger does not diminish the total number of economic units working at one level of the market, but it is changing patterns of industry performance. Either its a forward or backward integration, the newly acquired company may make a decision to deal only with the acquiring company, thus changing competition between the acquiring companys suppliers, customers, or opponents. Suppliers may misplace a market for their possessions; retail channel may be destitute of supplies; or opponents may locate that both supplies and channel are infertile. These potential raise to the anxiety that vertical integration will shut out opponents by restrictive their access to resources of supply or to customers. Vertical mergers also might be less competitive because their well-established market power may hamper new industry from entering the market. (Chawla, 2008) Conglomerate Mergers: Conglomerate mergers take many forms, series from provisional joint ventures to complete mergers. Moreover a multinational merger is wholesome, ecological, or a product-line addition, it engages companys that operate in separate markets. Therefore, a corporation transaction generally has no direct result on competition. There is no reduction or other alters in the number of companies in both the acquiring and acquired corporations market. (Chawla, 2008) Conglomerate mergers can provide a market or requirement for companies, therefore giving entrepreneurs liquidity at an open market price and with a key inducement to form new enterprises. The danger of conquest might force offered managers to increase competence in competitive markets. Conglomerate mergers also offer openings for companies to lessen capital costs and transparency and to attain other efficiencies. Conglomerate mergers, though, may lessen future competition by get rid of the option that acquiring company would have come into the acquired companys market separately. A conglomerate merger may exchange a strong company into a leading one with an influential competitive benefit, or else formulate a policy to make it complex for other corporations to penetrate the market. Such mergers also may lessen the number of minor companies and may enlarge the merged companys political influence, in that way weaken the social and political objectives of keeps self-governing decision-making hubs, assurance that small firm will get opportunities, and defending democratic practices. (Mylonakis, 2006) 2.7 Benefits of Mergers Acquisition Diversification: Corporations that want quick growth in dimension or diversification or market share in the variety of products may discover that a merger can be worn to accomplish the intentions instead of obtainable throughout the volume overriding practices of internal expansion or diversification. The company may attain the similar goals in a short time period merging with an existing company. Moreover this type of a strategy is frequently show low cost than the alternative of mounting the necessary production potential and capability. If a company that wants to expand operations in existing or new product area can find a suitable going concern (Altunbas, 2005). It may avoid many of risks associated with a design; manufacture the sale of addition or new products. Moreover when a company expands or extends its product line by acquiring another company, it also removes a potential competitor. Synergism: The scenery of synergism is very simple. Synergism exists at any time the value of the combination is greater than the sum of the real values. We can explain it as; synergism is â€Å"2+2=5†. But categorize synergy on appraise it may be difficult; in fact occasionally its implementations may be very delicate (Chawla, 2008). As generally defined to include any incremental worth is resulting from business combination, synergism in the basic economic good reason of merger. The incremental value may draw from raise in either operational or financial competence. (Chawla, 2008) Operating Synergism: Operating synergism may result from economies of scale, some degree of monopoly power or increased managerial efficiency. The value may be achieved by increasing the sales volume in relation to assts employed increasing profit margins or decreasing operating risks. Although operating synergy usually is the result of either vertical/horizontal integration some synergistic also may result from conglomerate growth. In addition, sometimes a company may acqu

Canine Heartworm Disease Essay -- Heartworm Disease Dogs

Canine Heartworm Disease Canine Heartworm Disease is a serious and potentially fatal disease caused by the parasite Dirofilaria Immitis. The disease can infect over 30 species, including humans, however dogs are the definitive host. The most common way this disease is transmitted from one animal to the next is through mosquitoes. A mosquito carrying infective heartworm larvae bites a dog and transmits the infection to them. The larvae grow, develop, and migrate in the body over a period of 6 to 7 months, in which time they become sexually mature male and female worms. this is the prepatent period. The worms then reside in the heart, lungs, and associated blood vessels. The worms begin to mate and release microfilaria into the blood stream. When a mosquito bites an infected dog it takes in some of the microfilaria in the blood. After 10 to 30 days there is larvae in the mosquito’s salivary gland which can then be passed on to the next dog the mosquito bites. Canine Heartworm Disease can also be transmitted to puppies through the placenta of an infected mother. However in this case the puppies will only be carriers, but this makes them at risk of severe reactions when starting canine heartworm prevention. Another way larvae can be passed is through blood transfusions. To prevent this all donors must be cleared of heartworm disease before donating. Dogs infected with Canine Heartworm Disease can have from 1 to 250 worms living in them for 5 to 7 years. The organs us...

Eugenics Laws In Japan: How And Why It Came To Be Essay

Francis Galton’s eugenics certainly has an enormous impact on the common mindset. Eugenics literally means â€Å"coming into being well† and also referred to as the â€Å"science of being well-born†. A concept initially introduced by Plato in order to produce only superior governing classes as stated in his Republic, this idea is confronted with issues regarding ethics and human rights policies. Eugenics in the real sense is concerned only with so much of genetics as concerns man (Castle, 1930), and social control plays a significant part of its implementation. The application of the ideology of natural selection to the human populace through medicine adversely affected the human race as a whole – basically referring to its effect on the different cultures, ethnicities and mores all over the world (Barondess, 1998). Eugenicists believe that it is necessary for each man to acknowledge his place in the real physical world, in terms of biological composition and relevance to society (Glad, 2006). In pursuit therefore of producing a brighter future for the next generation, man should know how to suppress his interests in order to prioritize the other. If human progress is to be taken as precedence, principles concerning natural selection must be compromised. Two agencies can be identified as the primary determinants of human progress: the first, sociological; the other, biological (Castle, 1930). Man can be unquestionably improved sociologically or culturally, because the environment where he finds himself in is tangible and thus, manipulable. However, the biological aspect is quite complex – it involves the improvement of the germplasm itself. If the human race is as manageable like animals in a farm, the idea of eugenics would be very viable, and the only limitation onto producing outstanding offspring is the availability of the parents with the sought after genes. Although germplasm is considered tangible, it does not singly constitute the human as a whole – therefore the complexities of employing methods of enforcing eugenics. Germany was the first to become controversial in terms of the application of eugenics methods. Within a year of enactment, it was reported that the Nazi sterilization program sterilized thousands – and implemented a system of â€Å"hereditary health courts† – which act on appeals conveyed by public health officials requesting that people identified to possess a long list of disorders be subjected to obligatory sterilization; and with Hitler’s appointment as Chancellor in 1933, active euthanasia was introduced, resulting to a more grave and radicalized condition of eugenics (Barondess, 1998) . Parallel to the eugenics methods exercised in Germany, Japan was able to implement its own eugenics studies and measures, primarily aimed on controlling population growth, reduce birth defect rate, and maintain purity among the Japanese race. Programs focusing in the breeding only of the intelligent and the superior were implemented. Eugenics laws implemented in Japan however are not as extensive as the implementation by the Nazis, who were considered to have largely broadened the goals of eugenics. The National Eugenic Law of Japan was approved in 1940, which includes edicts requiring sterilization of the mentally incompetent, legalization of abortion as in cases of rape, or if the birth is assumed to be life-threatening to the mother, and if the parents are considered to be possessing â€Å"undesirable† traits (Sheingate and Yamagishi, 2006). The Japanese are known to take pride in their heritage and culture, thus justifying the drive of coming up with â€Å"pure† and â€Å"superior† offspring. Aside from these cultural motivations, statistics showed that the number of abnormal offspring produced soared to high levels, specifically in the years 1926 to 1938. It was immediately a year after when the National Eugenics Law was made official – as a response to the alarming increase of â€Å"inferior† individuals in the society. The original draft of the law was initiated a few years before the outbreak of the Sino-Japanese war in 1937, and noticing the need to enforce laws in order to regulate population increase, the law was promulgated in 1940 and put into effect on 1941 (Hirosima, 1981). The initial draft composed by the Imperial Diet did not include rules realizing abortion and sterilization; however as the constraint on birth control strengthened, the law adapted policies targeted on population increase and therefore entwined with population increase policies becoming identified with such. Proponents of the eugenics laws remained firm in their stand for its implementation, though at first the legislative body did not recognize their efforts and endeavors. It was in 1939 where Representative Yagi Itsuro, initially a local family physician, mentioned of encountering people living in fear of producing offspring considered undesirable, and as a result felt the need to propose for laws authorizing medical doctors to perform sterilizing operations. Upon authorization of the eugenics laws during World War II, sterilization became compulsory for certain genetically transmitted diseases, mental illness or retardation; and a variety of contagious diseases (e. g. tuberculosis, venereal diseases, and leprosy) which were assumed to be heritable through Lamarckian analysis (Roth, 2005). With eugenicists in the 1990s being unfamiliar with the concept of genetic engineering, it was hard to visualize active intervention in an individual’s germ line thus preventing them to pass on deleterious and unwanted genes. Thus, eugenics in those times generally has to deal with the issues of natural selection on a larger scale and not just on the genetic level. Along with it, it is forced to deal also with issues on ethics, cultural ethos and mores. As a result, the issue endlessly was forced to answer questions regarding the necessity and importance of manipulating natural selection. One primary subject which the eugenics concept particularly affected was the legal status of abortion in Japan. Eugenics discourse even went to the extent of shaping postwar debates on the specific inquiry concerning the instances abortion to be permitted. One of the reasons that eugenic activists pursued the argument of loosening abortion parameters was due to concern regarding the reversal of natural selection: due to personal preferences, the tendency for the amount of good human genes to be reduced is high, while bad genes on the other hand are increased. Their assumption is that highly educated people from upper and middle classes, who are considered to produce superior progeny, are the ones exposed to and thus frequently use birth control methods. On the other hand, couples from lower classes cannot afford the use of birth control methods and may even have no knowledge regarding those, thus producing a high number of progeny which may be of lesser quality. In the quest of stabilizing population size, abortion was considered criminal in the 1880s, even without the background of Christian ethics and Western thought. The development of capitalism and militarism in Japan fostered the need for an increase in manpower, thus childbirth was once encouraged (Fujiki et al. , 2001). Rules and parameters regarding abortion little by little were perceived. Compared to the succeeding years, it was at that time officially prohibited, yet tacitly permitted. The idea of eugenics being also recognized as a population growth policy resulted to several debates, and contradictions especially made in the context of Shintoism. In 1948, the Eugenics Protection Law was implemented, in pursuit to control the baby boom and population expansion brought about by the post-war conditions (Fujiki et al. , 2001). Abortion was legalized and permitted given several conditions, and it alleviated the tension of prioritizing maternal health at the same time not compromising the general goal of slowing down population growth (Hirosima, 1981). This was successful in promoting decline of fertility rates in Japan after the war. Still, the absence of knowledge on genetic engineering led disputes among the proponents and the legislative body regarding the eugenics laws. This led to the birth of the Maternal Protection Law, which focused more on the removal of the eugenic idea and therefore shifting the perspective from the elimination of inferior offspring to maternal fitness (Fujiki et al. , 2001). Women’s reproductive rights are now taken into major consideration rather than the genetic make-up of the offspring. Genetic discrimination was alleviated, and as the years progressed, the need to coexist regardless of whether inflicted with genetic diseases or disabilities was realized. Eugenics laws in Japan remained steady in its goal to improve the lives of the next generation, ensuring them progress through ways that are constantly improving through the years. Germany, in Hitler’s time has gone through the limits of what is called â€Å"good science†, and imposed â€Å"racial hygiene†, with goals very much contrary to the primary goals of Japan’s eugenic methods. Constant improvement of Japan’s eugenic laws transcended the expectations of the act of disregarding a man’s right to live despite his incapabilities and abnormalities, and even went to the extent of shifting the major focus of producing superior progeny onto the act of primary consideration for the mother’s health and well-being. Political manipulation of natural selection therefore became instrumental rather than detrimental, and enforcement of the Maternal Protection Law has almost completely erased the appearance of the eugenic thought as basis for controlling population growth. The underlying concern of these laws and the proponents that exerted effort to argue for it is to win the struggle for human rights – not just for the living, but for those living after. The assurance of passing over less of one’s flaws and more of the good qualities is at one point necessary in ensuring a bright future for the next generation. At least now, manipulation of natural selection does not necessarily involve manipulation of the human as a whole, and thus eliminate the possibilities of compromising the right to live a normal life with the act of ensuring the survival of the progeny. With the advent of genetic engineering, it is now feasible to produce children in vitro, and then execute embryo screening known as pre-implantation genetic diagnosis; afterwards selecting a healthy embryo for implantation (Glad, 2006). These advanced methods provide a brighter future for both parents and offspring, taking into consideration both the biological and sociological aspects of human progress, rather than compromising one over the other.

Coca-Cola Company Essay

Environment is an important aspect in our lives, allover the world, concerns are being raised on how the world can have a sustainable environment. Companies are under pressure to come up with programs that support environment. For the purpose of this paper we are going to examine the Coca-Cola Company environmental programs and polices. Coca-Cola Company is a multinational company that is well known for its production of carbonated soft drinks that are sold in over 200 countries allover the world. Coke soft drinks are sold in stores, vending machines and in restaurants. According to business week, coke is the most recognized brand from the company. This paper is going to analyze the environment issues that impact the company. Many nutritionists argue that soft drinks from Coca-Cola and other companies are harmful when consumed in access especially by the young ones, who may take a lot of soft drinks at the expense of a balanced diet. Studies indicate that those who regularly take soft drinks do have lesser calcium intakes in their body systems. The coca cola company in India has come under a big controversy that concerns pesticides together with other dangerous chemicals that purported to find in the bottled products from the company. In the year 2003, center for Science and Environment (CSE) which is a non governmental organization based in New Delhi, reported that aerated waters that were being produced in India by multinational big companies such as coca-cola, did contain toxins. These toxins included DDT, lindane, Malathion and chlorpyrifors, which can contribute greatly to cancer and also the breakdown of an individual immune system. Among products that were tested was coke which has found to have 30 times the amount of pesticide remains that is allowed by the European Union regulations. This lead to formation of a parliamentary committee that was given mandate to develop pesticide levels for soft drinks; this was first of its kind in the world. The company response was its products are well filtered in order to remove any potential contaminants before being marketed and that the normal have a minimum level of pesticides as required by health standards. In the sate of Kerala in India, sell of Coca-Cola products together with other soft drinks was banned, until the high overruled the decision. Suppliers Coca-Cola Company has a policy with its suppliers to follows all international and national laws that encourage ethical business dealing. The company has built its reputation on trust, respect and integrates. The company promotes the principles of human rights, shun child labor and encourage environmental conservations practices. The Coca-Cola Company has several supplies who supplies various material to the company that are used in production and overall distribution of the company products. (Coca-Cola – Our Brands 2007). To start with the company is supplied with aluminum from different supplies coming from different countries. Aluminum is also supplied to the company’s bottling plants in many parts of the world; it is used for manufacturing of cans and other containers that the company uses in packaging. Other suppliers of the company are farms who grow coco plant, sugar, corn and other plants that are used as raw material by the company. Some companies do enter into dealership with the company of supplying the raw material to the company. Over the years the company has acquired many suppliers as the demand of its products increase. Companies dealing in glass also supply a lot of it to the company as it is used in making of bottles for packaging soft drinks from the company. Effects of demographics Globalization, technology, and population are among key factors that affects the company business. Over a period of three years demographic factors will play an important role on the company sale and overall performance. In line with world growth, it is believed that the world have more aged people than today this is because the birth rate in many countries is falling while at the same time life expectancy is improving. Studies indicate that young people consumer a lot of the company products than the aged ones. In line with this the company may experience slight reduction in consumption of there products. This reduction of consumption may not occur since at the same time the world population is increasing there fore cautioning any decrease that may occur in consumption patterns. Other than aging and population, the company also will have to deal with environmental issues brought about by technology change and global changes. As technology continues to advance, the issue of environment also continues to attract more attention on how viable such technology is. To day people allover the world wants companies which are environmental friendly. Consumers have become more aware of their environment and prefer companies that value the environment and have policies that protect the environment. The company will be affected positively in three years to come if they have embrace technology that sustain environment, if not then the may experience negative effects. Environment and health issues have been a big issue in the company, in 2006 the United States Food and Drug Administration, had to respond to concerns of consumers by carrying out a survey on more 100 soft drinks and also other beverages which established that though, the soft drinks had amount of benzene, it was not a health concern to consumers. The Coca-Cola Company has a vision that seeks to promote sustainable growth and making a positive change in the whole world. In regard to environment the company has made significant and quantifiable progress. The company has integrated environmental issues in its business strategies and decision making methods. As it can be noted the company improved its usage of water ratio by 4%, the energy usage ratio by 5% and the recycling rate went up by 3%. These improvements have a direct benefit to communities where the company operates and to the company stakeholders. However, the company still is undertaking more measures to improve the environment. The company has taken key measures in improving the environment, which focus mainly on environmental performance measures of the company systems. These measures include improving the company operations and improving ways of conducting business which are geared towards minimize environmental effects that the company has. The environment impacts created by the company operations from the company bottling systems are for example sustainable packaging inventiveness, protection of climate and â€Å"eco-freshment†, the company has undertaken alternative refrigeration programs that are more environmental friendly. To further improve the environment, Cocacola Corporation has invested a lot in clean technology that fuels the company innovations; this includes the environment board; the company community and watershed schemes; and making partnerships with charity organization, non governmental agencies and peer companies that targets developing solutions that are innovative towards environmental issues. The Coca-Cola Corporation which is a global corporation has a unique challenge in managing the environmental effects to the company business. The corporation has a challenge because it does not own nor manage many of coca cola bottling companies around the world. Thus, these data will examine the corporation environmental management. Water The most essential need for all life forms is water; however accessing safe and clean water has remained dream to many. It is estimated that around 1. 3 billion people allover the world do not reach to clean and safe water. This has a great impact on the environment as a whole. Allover the world, from United Nations to community organizations are working in order to increase access to water, the company is doing its part by protecting and preserving water resources Water is an important factor in management of environment the corporation in line with undertaking sustainable water methods, it improved it water effectiveness by 4% in the year 2005, over three previous years the company has been improving its water efficiency, and the company projects that water efficiency usage will level off soon. To ensure this, the company has undertaken changes in product mix, meaning the growing of tea and coffee products; this is anticipated to make the company productions ways more water concentrated. The management in 2005 did a comprehensive risk analysis of water dangers that face the company systems and host communities in 811 company bottling plants and has continued in improving efficient water use. Wastewater disposal is an issue that the management is addressing by working with bottling partners in the whole world to improve wastewater treatment. In addition, conservation processes have been undertaken by the company and the company is strict on these processes to achieve and even surpasses applicable laws. The management has put up requirements for their bottling plant to have on site an effluent treatment plants that will be used in attaining the goal of increasing water efficiency. The goal of the company is to be 100% water efficiency by the year 2010 (Coca-Cola – Our Brands 2007). The company is focusing on other projects that will address the issue of water scarcity in world. At the end of 2005, the company had established around 20 watershed joint ventures with local communities and to help in providing access to clean water and also sanitation services in the communities allover the world where the company have their bottling plants. In line with enhancing access to water the management of the company entered into partnerships with Emory Global center for Safe Water, the United Nations Foundations, Millennium Water Alliance and others in establish Global Water Challenge. This all important combination aim at providing safe water for drinking, improving sanitation together with hygienic education in developing countries. The program depends on collaboration of partners, funding, mobilizing additional partners, and sharing of resources, best practices and expertise. Global Water Challenge has a program Water for Schools which focus on supplying water and also sanitation to many schools in Kenya in nyanza province. There is already great prospective of implementing the same project elsewhere. These efforts greatly enhance environment. Packaging Coca-Cola beverage is taken by people allover the world over 1. 3 times in a day, in order for the company to satisfy this consumption rate, the company depends upon packaging its products in containers. These containers are offer protection and enable distribution of the products to the consumer. The management has been working throughout in enhancing environmental along side social value packaging, by improving designs of containers in order to meet the set standards. In the year 2005 the company made a lot of progress towards achieving sustainable packaging distinction (Coca-Cola – Our Brands 2007). The company has pursed environmental friendly way of packing by reducing amount of material used on its can, bottles and polyethylene terephthalate. In 2005 the new technology of the company reduced use of glass by 52, 000 tons annual ii all of its plants in the world. The managed has also managed to reduce the emission of carbon dioxide. In line with keeping the environment clean, the management has come up with recycling systems which are more efficient. An example of such recycling plants is CEMPRE in Brazil. These recycling plants have been used to produce recycled containers which the company reuses. This initiative have gone along way in improving the overall environment as broken bottles and cans used to pause a danger to the environment(Coca-Cola – Our Brands 2007). Solid waste and recycling The management of the company is committed in having an efficient lasting waste management that will reduce waste generated in the company’s plants and facilities. Majority of waste products around 98% is created in the bottling process, the waste products includes products like empty containers, plastics wraps secondary packaging and many more. (Pendergrast 2006). The management makes efforts to reuse or recycle such materials have continued to improve the efficient of managing the wastes. In the year 2005 the company achieved a 3% improvement of waste management from the previous year. The view to the environment this is a positive aspect from the company as waste management has always poised a serious challenge to many manufacturing plants. Energy and climate Global climatic changes and global warming have become an issue of create concern to the world. Companies are requested to reduce the amount of carbon emissions that they emit to the environment. Energy saving is another important issue that is being stressed. In terms of saving energy, the management of the company has developed a sustainable technology of refrigeration. The technology â€Å"eKOfreshment† has seen more than 4,000 CO2 refrigerated cooler on the market and a demand for more has already been created. These coolers are much environmental friendly and the company intend to produce more of them slowly by slowly to take over the old ones. In addition the management is introducing new energy management solutions by the year 2010. Today, the company cold drinks apparatus are over 40% more effective than ten years ago. This has reduced the amount of carbon dioxide in the environment by 700,000 tons per year which is same as removing 150,000 vehicles from the roads. In so doing the company has management to improve the environment management (Pendergrast 2000).

10 Sets of Doublet Nouns

10 Sets of Doublet Nouns 10 Sets of Doublet Nouns 10 Sets of Doublet Nouns By Mark Nichol The store of nouns in English, just like that of English verbs, is enhanced by the language’s generosity in permitting adaptation of words from other tongues more than once. In the case of most of the word pairs listed below, the terms were introduced at different periods of history, hence their slight differences in spelling. (Two of the pairs demonstrate how words that are superficially similar can stem from the same Indo-European roots.) 1. Aperture/overture (Latin apertura, â€Å"opening†): Both words refer to an opening, but aperture means â€Å"a physical opening,† as for a camera lens, or applies to the diameter of such a hole, while an overture is a more figurative concept; it can be an introduction (as in music), a prelude, or a proposal. 2. Car/chariot (Latin carrus, â€Å"vehicle,† borrowed from Celtic also the source of carry): The first word, denoting an automobile, a vehicle that rides on rails as part of a train, an elevator compartment, or an airship or balloon component for carrying passengers and cargo, is an abbreviation of carriage, in the sense of a horse-drawn vehicle, though carriage has other senses, including the figurative one of posture. A chariot is a two-wheeled vehicle formerly used in parades, races, and warfare, or, later, a type of carriage; the word is also sometimes used jocularly to refer to a car. 3. Castle/chateau (Latin, castellum, â€Å"fortress†): Castle refers to buildings or compounds formerly employed as fortified structures, or to an excessively large house or any place figuratively considered a refuge. A chateau is a French castle or a mansion or a vineyard estate. 4. Cattle/chattel (Latin, capitalis, â€Å"of the head† also the source of capital): Cattle refers to domesticated bovine animals (or, figuratively, humans collectively as a mob easily manipulated); chattel, from which cattle is derived, denotes personal property. 5. Cave/cavern (Latin, cavus): A cave is a natural or excavated underground hole, chamber, or tunnel; cavern refers to an especially large, complex cave. 6. Chef/chief (Latin, caput, â€Å"head†): Chef, another word for â€Å"cook,† is from the phrase chef du cuisine (â€Å"head of the kitchen†), and chief means â€Å"leader,† or â€Å"the most important.† 7. Corn/kernel (Old English; related to Latin granum): Corn refers to the edible seeds of a plant originally cultivated in Mexico and to the plant itself, as well as to grains in general. The word also applies to something old-fashioned and sentimental (hence, the adjective corny). Kernel, from an Old English diminutive of corn, applies to the seed or, technically, the inner part of a seed or similar plant part. It also denotes the impetus or essential component of a phenomenon. 8. Guile/wile (distantly related: guile from Middle English gile; wile from Old English wil): Guile means â€Å"deceit or trickery†; wile is a direct synonym that also means â€Å"a stratagem or trick.† (The latter word’s adjective and plural-noun forms, wily and wiles, are more common.) 9. Hostel/hotel (Latin, hospitale, â€Å"hospice† hospitable and hospital are also related): A hostel is an inn or a permanent residence that is part of an institution or a temporary, simple, and inexpensive one for travelers, especially younger people. A hotel is also a place of lodging, but one that is designed to provide primarily for mainstream travelers. 10. Static/status (from a common Indo-European root: static from Greek statikos, â€Å"causing to stand,† status from Latin status, â€Å"position† state, in its various meanings, is also related): Static, from â€Å"static electricity† (the adjective means â€Å"stationary, or slow moving†), refers to noise produced by artificial or natural electrical interference, or the interference itself; it’s also used figuratively to refer to criticism or interference. Status means â€Å"condition or state.† Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Spelling category, check our popular posts, or choose a related post below:100 Beautiful and Ugly WordsConfused Words #3: Lose, Loose, LossPunctuation Is Powerful

The Most Current Changes in GCSE English Syllabus to Keep in Mind

The Most Current Changes in GCSE English Syllabus to Keep in Mind The Most Current Changes in GCSE English Syllabus to Keep in Mind Wondering what the fuss around GCSE 2015 changes is all about? Sit comfortably and prepare to read an article as we’re going to explain all the new features for you. Why do you need to take the trouble at all? Well, if you are a student planning to pass GCSE English, pay attention because these changes will have a great effect on both exam process and grading (in case you worry about your results). 1.   New Grading System The most notable change is transfer from A-C marks to 1-9 points with 1 being the lowest, and 9 – the highest. Moreover, the Department of Education limited the number of people who can get the best card to 20% of those who receive 7 and higher. So, if you counted on the top score, you’ll have to press harder. What does it mean for you? Nobody can predict the exact results, but the teachers are worried that the students will get worse grades because of the variation (for example, you could do fine and receive a C while, right now, your â€Å"fine† will be also graded as â€Å"worse fine† (4) or â€Å"better fine† (5). 2.   Only New Texts for Reading Comprehension The easy life has ended. Now during the examination you will get only texts that you haven’t seen before because the purpose of the test is to evaluate you reading comprehension skills, not a good memory of info your teacher told you about the excerpt you previously had analysed. 3.   More and Longer Exams Enjoyed a one-time, two-hour test? Prepare to miss it as according to the new implementations there will be 2 exams, two-hour long each. But the silver lining is that you will get more time on reading and writing tasks ☠º 4.   No Counting of Speaking and Listening Speaking and listening were counted before into the overall grade. But after the changes they will be assessed separately without having any impact on the final result. Generally, students do better at speaking and listening than at other tests, thus, improving the grade. But now, in GCSE near the main score, there will be just â€Å"Pass†, â€Å"Merit† or â€Å"Distinction† (evaluation markers for speaking and listening) that won’t be taken into account. 5.   Taking Exams Only Once There won’t be any controlled assessments or courseworks during the preparation course. There will be only one evaluation session at the end that will fully rely on the exam results. Yeah, it implies that you will have to go above and beyond to do your best because you have only one chance (in an epic case scenario, in real life you can just start all over again and take another exam). See? These are major changes that have been totally worth your 5 minutes to read this article. In case you’re asking yourself why all this is happening, we have a theory that the Department of Education wants to raise the standards in order to make students more competitive on the internal as well as international job market. But we’ll see what comes out of it. Good luck!