Porters Diamond in a Mexican Context free essay sample

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [emailprotected] org. . Springer is collaborating with JSTOR to digitize, preserve and extend access to MIR: Management International Review. http://www. jstor. org This content downloaded from 146. 50. 153. 8 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions mir SpecialIssue 1993/2, 41-54 pp. mir Illfftl lUllLuU Pftviftlif ll  © Gabler Verlag 1993 Richard M. Hodgetts Porters Diamond Framework in a Mexican Context Abstract used as a basis forexamining  ¦ The Porterdiamondmodelhas been widely This examines waysin which the international competitive strategies. article itself theU. S. economy a doublediamond. to via Mexico is linking cluste rs petrochemicals automobiles  ¦ The strategies Mexicosleading of and the within doublediamondframework. We will write a custom essay sample on Porters Diamond in a Mexican Context or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page re considered Key words to  ¦ A doublediamondmodelis alreadybeingused by Mexicancorporations bothcreateand sustaineconomic progress. Author at of is M. Dr. Richard Hodgetts Professor Strategic University, Management FloridaInternational Boca Raton,FL, U. S. A. March1992,revised received April1992. Manuscript mir vol. 33 †¢ Special Issue †¢ 1993/2 41 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions Richard Hodgetts M. Porter Revisited Porters and diamondmodelis well-known bothresearchers practitioners. to In wayofreprise, modelis based on four and determinants the country-specific twoexternal variables. These include: 1. Factorconditions and cost of personnel; suchas: (a) thequantity, skills, (b) rethe abundance,quality,accessibility, cost of the nationsphysical and sources;(c) thenationsstockof knowledge resources; theamountand (d) cost of capitalresources and thatare availableto finance industry: (e) the and usercost of thenationsinfrastructure. type, quality, 2. Demand conditions such as: (a) the composition demandin the home of market: thesize and growth of thehomedemand;and (c) themechrate (b) anismsthrough whichdomestic and demandis internationalized pullsa nationsproducts and services abroad. 3. Relatedand supporting industries as: (a) thepresence internationally such of in indusindustries createadvantages downstream that competitive supplier tries and (b) or efficient, through early, rapidaccessto cost-effective inputs; and can related industries which coordinate share internationally competitive in activities thevaluechainwhencompeting thosewhich involve or products thatare complementary. . Firmstrategy, firms are and suchas: (a) thewaysin which structure, rivalry seekto attain managedand chooseto compete; thegoals thatcompanies (b) as well as the motivations theiremployees and (c) the of and managers; amountof domestic of and and persistence competitive rivalry thecreation in advantage therespective industry. The twooutsideforces, but also affecting competitiveness a nation, not the of direct are determinants, these: 1. The roleofchanceas causedbydevelopments as: (a) newinventions; such (b) in shifts decisions foreign wars;(d) significant political (c) by governments; in worldfinancial markets exchange or discontinuities inputcosts rates;(e) such as oil shocks;(f) surgesin worldor regional demand;and (g) major technological breakthroughs. 2. The variousrolesof government (a) (b) poliincluding: subsidies; education toward of cies;(c) actions markets; theestablishment localproduct capital (d) standards regulations; thepurchase goodsand services; taxlaws; and of (f) (e) and (g) antitrust (Porter, 69-130). egulation pp. an of of Figure1 provides illustration thecomplete system thesedeterminants and external and variables. can be seen,each determinant As affects others the are all, in turn, affected theroleof chanceand government. by 42 mir vol. 33 †¢ Special Issue †¢ 1993/2 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditio ns the Porters DiamondFramework: MexicanContext DiamondFramework 1. Figure Porters The from MichaelE. Porter, Competitive Source: Adapted Advantage Nations (NewYork:Free of Press,1990),p. 127. Critique and Evaluation of the Porter Model business it to modelto international In applying Porters strategy, is important in is the realize First, governmentofcritical importance influenckey eight facts. it as For example, can use tariffs a advantage. inga homenationscompetitive subsidies an as and to barrier penalizeforeign direct firms, it can employ entry firms. the with for vehicle penalizing indirect However, problem foreign-based and can suchas theseis thatthey backfire end up creating actions government thatis unable to competein the worldwide domestic a sheltered industry market 1990). Rugmanand Verbeke in factor international business chanceis a critical Second,while influencing until For and difficult predict guardagainst. example, to itis extremely strategy, was HusseininvadedKuwait,theUnitedStatesgovernment theday Saddam thattherewould be no invasion. In a similarvein,technological predicting in have resulted rapid electronics in and breakthroughs computers consumer mir vol. 33 †¢ Special Issue †¢ 1993/2 43 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions M. Richard Hodgetts ndustries in manycases,werenotpredicted companies and, by changein these weremarket leaders. that,at thetime, in modelmustbe applied business Porters of Third, thestudy international interms company As and of considerations notnational advantages. he specific in international marso wellnotesin his book, Firms,not nations, compete kets(Porter, 33). p. based on statistical modelwas constructed Fourth,thePorter analysisof data on exportsharesfor ten countries: Denmark,Italy,Japan, aggregate the the SouthKorea,Sweden, Switzerland, UnitedKingdom, United Singapore, wereprovided In historical cases studies States,and WestGermany. ddition, the forfourindustries: Germanprinting the patient pressindustry, American and tile the monitoring equipment industry, Italianceramic industry, theJapaand neseroboti cs about thesecountries examples Whatis important industry. nations. Sincemost is thatthey drawn are industrialized from triad other the or as or affluence countries theworlddo nothave thesameeconomic of strength thosestudiedby Porter, is highly it thathis modelcan be appliedto unlikely them without modification. Porter forth sets our distinct Fifth, developcompetitive stagesofnational and wealth-driven. ment:factor-driven, innovation-driven, investment-driven, In thefactor-driven internationally advandrawtheir successful industries stage resources from basicfactors production the of suchas natural tagealmost solely on and thenationslarge,inexpensive labor pool and they compete primarily efficient In the investment-driven companiesinvestin modern, price. stage theseinvestments facilities technology they and and workto improve through not In modification alteration. heinnovation-driven firms onlypurand stage chase technology and methodsfromothers,but theywork to createthem and from i nnovation their on own partas wellas assistance suppliers through in In firms related industries. thewealth-driven beginto lose their stage,firms to ebbs, and thereis a declinein motivation competitive advantage, rivalry Korea is investIn invest. Porters viewSingapore in thefactor-driven is stage, ment-drive, Germanyand the United States are Japan is innovation-drive, and between innovationand wealth-driven, Great Britainis wealth-driven. he influences countrys Since the stage of development competitive greatly in is So theplacement countries thisschema critical. too is thelogic of response, two or thanspanning rather thatcountries move from one stageto another in or to moreof thesestages, sincethere likely be industries companies all are at majoreconomies operating each of thesestages. investment thatonlyoutward direct Porter contends Sixth, (FDI) is foreign investment is valuablein creating and inboundforeign advantage, competitive subnever solution a nationscompetitive to the Mor eover, foreign problems. idiaries are not sourcesof competitive foreign advantageand widespread in investment thatthe processof competitive upgrading an usuallyindicates 44 mir vol. 33 †¢ Special Issue †¢ 1993/2 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions Porters Diamond Framework: the Mexican Context is becausedomestic in firms manyindustries lack economy notentirely healthy their to market thecapabilities defend firms positions againstforeign (Porter, are questionable. For example,Canadianp. 61). These statements highly based scholars (Safarian1968,Rugman1980,and Crookell1990)havedemonand undertaken foreign-owned is not strated research development that firms by different thatof Canadian-owned from companies. significantly Additionally, thatthe20 largest American subsidiaries Canada export in Rugmanhas found rateofexports salesis 25 percent to as muchas they while (the import virtually to tha tof imports sales is 26 percent). reliance natural on resources factor-driven as Seventh, (the stage)is viewed to worldwide stature. nsufficientcreate However, Canada, forone, competitive a of whichhave turned counhas developed number successful the megafirms in natural resources proprietary into comparative advantage firm-specific trys in and and are of processing further refining; these sources advantages resource case studies sustainable of advantage (Rugmanand Mcllveen1985). Moreover, multinationals as Alcan,Noranda,and Nova help such successful thecountrys illustrate methods whichvalue added has beenintroduced themanthe by by resource-based ofthese companies (DCruz and Fleck1987,Rugmanand agers DCruz 1990). odeldoes not adequatelyaddresstherole of MNEs. the Eighth, Porter multinational such as Dunning(1990) have suggested Researchers including as a thirdoutsidevariable(in additionto chance and government). activity MNE activity covered in whether is there good reasonto question is Certainly and some researchers and thefirm determinant; structure, rivalry strategy, determinant both can how have raisedthequestion regarding thesame rivalry for includemultinationality global industries excludeit formultidomestic yet to thatMNEs As industries. Dunningnotes,thereis ampleevidence suggest theconfiguration thediamondin of in are influenced their by competitiveness in and homecountries, thatthis, turnmayimpinge otherthantheir upon the of (Dunning,p. 111). For example,Nestle competitiveness home countries Thus the Swissdiamondof of earns95 percent its sales outsideSwitzerland. in countries shaping thanthatof foreign is lessrelevant advantage competitive of the contribution Nestle to the home economy. This is truenot only for of nations. For example, all but Switzerland for95 percent theworlds virtually of Canadas largemultinationals on sales in theUnitedStatesand other rely is that U. S. diamond morerelevant the it markets. triad Indeed, couldbe argued thanis Canadas own diamond,since multinationals forCanadas industrial takeplacein theUnitedStates. Other of over70 percent their sales,on average, home diamondsincludeAustralia, New nationswithMNEs based on small if as and most, notall, Asian and LatinAmerican countries, Zealand,Finland, in of Even smallnations theEC, wellas a largenumber othersmallcountries. he of havebeenable to overcome problem a smalldomestic suchas Denmark, vol. nth* 33 †¢ Special Issue †¢ 1993/2 45 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions Richard Hodgetts M. market gaining access to one of thetriadmarkets. in applying Porters So by framework international to businessat large,one conclusionis irrefutable: diamonds needto be constructed analyzed different and countries, Different for and thesediamonds and linkagewith diamonds the often integration of require other countries creating double thus a diamond stronger economically paradigm. Mexico and the Double Diamond Paradigm Porters diamond the nations advanhelpsexplain nontriad develop competitive their diamondintothatof triadcountries. Mexicoprovides an tageby linking excellent example. Background Mexicocurrently thestrongest has in The has economy LatinAmerica. country also vigorously to theUnitedStateswhichnow promoted exports, especially counts Mexicofor25 percent all imported on of fruit vegetables and (Bakerand Walker1991a). The maquiladoraindustry another is sourceof ecogrowing nomicstrength thecountry. thesametimeMexicois a majormarket for At for multinational investment. MNE Investment Theclimate foreign for direct investment increasing(FDI) inMexicohasgrown the favorable recent in on Whilethere werestrict controls FDI during ly years. in As introduced 1989reversed 1970s,regulations manyof theserestrictions. a For example, an number MNEs are now investing of there. esult, increasing Ford Motor has beguna $ 700 million plantin expansionin an automotive in to produce cars Nissanis putting 1 billion a newassembly $ Chihuahua; plant forexport boththeUnitedStatesand Japan;Volkswagen investing 950 to is $ million expanditsplant;McDonalds has earmarked 500 million open to to $ 250 new restaurants theyear2000; Sears Roebuckis putting 150 million $ by intonew storesand malls throughout country, additionto renovating in the a older units;and PepsiCo has expandedits snack businessby purchasing stakein Gamesa, Me xicos largest cookie maker(Bakerand Walker majority 1991b). amin One of themajorreasonsforthisincrease FDI is theprivatization thatbeganin 1982and whichhas pickedup speedsincethen. Whilethe paign continues playa majorrolein theeconomy, to through primarily government has the there beensignificant state-owned entities suchas Pemex, giantoil firm, reduction itsownership. in Thesesales havebeenmadeto bothforeign companiesand Mexicaninvestors (Baker 1991). 46 nth* 33 †¢ Special Issue †¢ 1993/2 vol. This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions Porters Diamond Framework: the Mexican Context Another reasonfornewFDI has beenthechangesin investment that laws to hold major equitypositions. In the past, foreign now permit foreigners in had to of but companies beenlimited 40 percent equity, ownership auto-parts the reduces number firms of thatare subject this a newdecreenow sharply to based on percentages exportsales and sales to of law by creating exemptions river lake individuals. and mining, Exceptin someareassuchas petrochemicals, investment permitted to is and telecommunications, foreign up transportation, in and 100 percent (although somecases suchas agriculture, publishing, conis It struction, approval required). as also becomeeasierto acquire government withMexicanfirms. or realestateand to purchase merge Todayapproximately is of 75 percent theeconomy open to fullforeign ownership (Perry 1992). has been theLaw for thePromotion Protection and Another majorchange in a which was enacted 1991and provides muchbroader Property ofIndustrial This also thanpreviously. newlegis lation placestighter ofpatent coverage scope that on Still controls tradesecrets. another changehas beenlegislation endsthe for conneed forofficial requirements technology approvaland registration the thatMNEs willintroduce increase likelihood These developments tracts. nto theirMexican operations. There have also been more hightechnology newprotection software for in copyright thatprovide laws producers changes These changesare designedto attackpiracy,a and the recording industry. in serious inadequate copyright proproblem Mexicobecauseofitspreviously tection. FDI is thelow wage rates. In 1992 minimum factor Another encouraging in MexicoCityand majortownswas around$ 4 perday,whileit was $ wage Thiswage 3. 60 in manyother largecitiesand $ 3. 25 in therestof thecountry. cardin attracting investment. as Thus structure beena strong foreign drawing in over theeconomicenvironment Mexico has improved dramatically thelast decade. Double Diamond Analysis Mexico mustcontinue develop to its I n orderto maintain economicgrowth, Thisis currently done bylinking into international being strength. competitive in and this not theUnitedStatesmarket, particular, viewing market just as a source for exportbut also as part of the home market(see Figure2). In this particular, requires: 1. developing innovative new products and services thatsimultaneously meet theneedsof American and Mexicancustomers, that recognizing close relawithdemanding S. customers U. houldset thepace and styleof tionships product development; ink vol. 33 †¢ Special Issue †¢ 1993/2 47 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions M. Richard Hodgetts 2. Figure U. S. -MexicoDouble Diamond Source: Adapted fromAlan M. Rugmanand JosephR. DCruz, Fast Forward:Improving Kodak Canada 1991). CanadasInternational (Toronto: Competitiveness 2. drawing thesupport of on industries infrastructureboththeU. S. and and to Mexicandiamonds, that theU. S. diamondis morelikely possess realizing and and moreefficient markets suchindustries; for deeper in 3. aking free and fulluse of thephysical and humanresources bothcountries (DCruz and Rugman1992). Strategic Clusters In Mexicos Double Diamond business The primary advantageof usingthedoublediamondis thatit forces and publicpolicy and government leadersto think aboutmanagement strategy as in a different No longer thedomestic diamondtheunitof analysis, is way. now becomes in Porters The singlediamondframework. properperspective of clusters indusviablestrategic thatofidentifying successful potentially and acrossthe and performance within nation and to examine their tries the linkages doublediamond. ocatactivities and A strategic is of cluster a network businesses supporting and firms ed in a specific competeglobally regionwheretheleadingflagship 48 mk vol. 33 †¢ Special Issue †¢ 1993/2 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All us e subject to JSTOR Terms and Conditions Porters DiamondFramework: MexicanContext the In somemaybe foreign-owned. are activities home-based, although supporting business inutsand skillsmaycome from outside someof thecritical addition, and determined themembership relevance usefulnes withtheir thecountry by cluster. f thestrategic will have one or more large multinational cluster A successful strategic is these homeor foreign-ownedirrelevant, are Whether at enterprises itscenter. on a globalbasis are so longas they globally Ideally, they operate competitive. within framework globalcompetithe of and plan their strategies competitive is with related supporting and ofthecluster companies tion. A vitalcomponent In and publicsectororganizations. addition, bothprivate activities, including and institutions research there tanks, supportgroups, educational maybe think theseefforts. ing Mexicos Strategic Clusters The clusters. sixmajorones,in orderof are In Mexicothere a hostof strategic maand arepetroleum/chemicals, automotive, housing household, importance, The and and foodand beverage, semiconductors computers. and terials metals, to the and two thatare mostinternationally competitive provide bestinsights and the cluster how the Mexicandouble diamondis used are the petroleum It Crudeoil is Mexicos largest cluster. automotive industry. accountsfor4. 3 is of and of theworldscrudeexports, 57 percent thisproduction sold percent due beenexpanding has cluster in theUnitedStates. The automotive rapidly to has Since1986carand truck inthis production been globalrestructuring sector. thesetwo clusters, In at an annual rate of 24 percent. examining increasing of determinants competitiveness; four on is attention focused Porters principal and relatedand supporting demandconditions, factor industries, conditions, and firm strategy rivalry. Petroleum Cluster of and 15 accountedfor28 percent all exports Mexicos petroleum industry in the is of GDP in 1991. Of all firms thiscluster, largest state-owned percent is fifth Mexicanos Petroleos largest currentlytheworlds (Pemex). Thecompany firm. Pemexhas a workforce of and crudeoil producer theworlds57thlargest and assets of $45 billion,including refineries, 168,000employees pipelines, and aircraft, railcars. tankers, at reserves theendof1989 base is huge. Proven resource Mexicospetroleum in to barrels the for at werecalculated 66. 4 billion barrels, contrast 26. 3 billion of Mexicois a netexporter energy, UnitedStates. As a result, oil, principally, nuclearand geothermal and coal. naturalgas, hydraulic power, power, mk vol. 33 †¢ Special Issue †¢ 1993/2 49 This content downloaded from 146. 50. 153. 8 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions M. Richard Hodgetts Thereare also strong industries infrastructure. and Over petroleum-related thepast50 years under statecontrol oil exploration, of and processing refining, ofbasicand secondary and a majorindustry infrastrucstrategy petrochemicals, turehas emerged refining for use bothcrudeoil fordomestic and export and ot her refined there suchas gasolines and petrochemicals. present, At products are 1975 companiesoperating basic and secondary 490 plants petrochemical the and 130,000 throughout country employing pproximately people. Foreign in sector with Mexcompanies participate thesecondary petrochemical usually icanjointventure partners. in Domesticdemandof oil-related products Mexico has been increasing in more Pemexto becomeconsiderably sharply recent years. This has forced As in over the productive. a result, 1991 crudeoil outputwas up 7 percent at market thisoil is expected remain current for to previous year. The export levelsforthe foreseeable future. withcapitalexpenditures However, planned overthenextfiveyearscoupledwithrising demandforpetroleum products, crudeoil outputis forecasted riseto around3. million barrels day in to per 1995,comparedto 2. 68 millionbarrels dailyin 1990. The UnitedStateswill from continue be Mexicoslargest to and customer, whiledemandhas declined its1976-1980peak,U . S. conservation willconmeasures depressed and prices NAFTA discussions tinueto createdemandforoil imports. recent Moreover, and through have centered U. S. access to Mexican oil through on imports in theenergy sector. increased forAmerican Major opportunities technologies off are American suchas Arco,Chevron, and Phillips selling some companies outof their domestic and for opportunities properties are looking exploration thatthe sidetheU. S. Mexicois likely provea very to attractive location, except of alter refuses substantially itsownership hydrocarto government currently bon resources. are contracts now beingused to However, turnkey exploration and Mexicandrilling American and efficiency effecintegrate expertise improve Table1. MexicanPetroleum/Chemical Cluster FirmName Petroleos Mexicanos CelaneseMexicanaSA DupontSA CV Industrias Resistol SA Petrocel SA Ciba GeigyMexicanaSA CV FibrasQuimicasSA Tereftalatos MexicanosSA SA GrupoPrimex CV PoliolesSA QuimicaDe. Rey SA CV Source:Expansion, 21, August 1991. 1990sales(U. S. $m) 16,996 757 277 207 189 187 165 139 129 127 84 50 mlr vol. 33 †¢ Special Issue †¢ 1993/2 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions Porters Diamond Framework: the Mexican Context reduce costofbringing to themarket. the oil Thistrend makeMexico will tively in one of thelowestcost producers theworldnextto Saudi Arabia. in firms theMexicanpetroleum cluster reported Table 2. n The leading are As can be seen,Pemexis thedominant firm. company vertically The is flagship in and and stageofthevaluechainin bringing integrated involved every energy to UndertheSalinasgovernment, recent in petrochemicals themarket. changes for of investment theproduction basic and secondary foreign petrochemicals will increasethe role of international firms such as Celanese,DuPont, Ciba haveannounced and other firms suchas Exxonwhich the plansto enter Geigy, Th esecompanies looking growth are for Mexicanmarket. utside opportunities are theUnitedStates. In particular, they seeking cheaperoil and they relyon and The rivalry oil imports their for and refining petrochemical production. has alreadyestablished in the American market thesevertically competition and firms worldleadersin exploration, as transportation, refining, integrated of products. marketing energy-related little nature theenergy of business for The commodity provides opportunity the of bothpricing demand and itself from cyclical Mexicoto insulate changes for to in this cluster. The real opportunities Mexico lie in trying improve efficiencies (a) exploration programs allowingmore by through: liberalizing contractors carry turnkey to out efficient operations; work(b) drilling foreign to withtheunionsto rationalize jobs thatare not required reducethecost ing in Mexicanexpertise lacking; is base; (c) usingforeign technologies areaswhere in of foreign firms producing participation petrochemicals (d) allowing greater of to domesand to expandcapacity competitivenesscommodity products meet MNEs to bringin technology to tic and exportdemand;(e) using foreign to and (f) market; produceadvancedpetrochemicals be used in theAmerican fuels, alternative, cleaner-burning suchas natural and unleaded gas developing and to complywithinternational fuelsto reducerelianceon U. S. imports standards. nvironmental in of looks promising even though recent The potential thiscluster years and have fallen benchmark Mexicanprovenreserves slightly theinternational priceforcrudehas droppe dto the $ 15-20 per barrelrange. The vast unexto a opportunities continue strong ploredareas of Mexico providelong-term cluster. the of Additionally, proximity the UnitedStates, hydrocarbon-based and increased on will withits declining provenreserves dependence imports, economiesof scale and provideMexico withan exportbase forimproving in and exploration fundsforreinvestment drilling activities. Thus generating willbe closelylinkedto theAmerican Mexicoseconomic diamond. progress AutomotiveCluster s The globalauto industry currently a In undergoing worldwide restructuring. as thisprocessMexicois emerging a majorcar and truck Since1986 producer. mlr vol. 33 †¢ Special Issue †¢ 1993/2 51 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions Richard Hodgetts M. theindustry grown has In with was rapidly. 1990totalunitproduction 820,000 of and unofficial over1 million for exports 276,800 figures 1991puttotalou tput units. If a NAFTA is negotiated, units to is production expected top 3 million theyear2000. OverthelastdecadetheBigThreeU. S. automakers havebeen by their in expanding capacities Mexico,whileclosingplantsin theUnitedStates in and Canada. At thesame time, firms investing are Europeanand Japanese to as Mexico,in an effort tap such benefits low cost labor,low capitalcost, in to of auto market theworld, demand, proximity thelargest growth domestic and accessibility relatedsupportindustries. close look at Portersfour A to that occurring is determinants national of the advantage helpsillustrate linkage between Mexicanand U. S. diamonds. the 2. ) (Again,see Figure cluster. Mexico has a strong, its richresource base supporting automotive is Morethanhalfthepopulation under age of20,and there an abundance is the thatthese of young,skilled, are adaptablelabor. Foreignauto firms finding in workers particularly are effective after have been giventraining total they In and quality concepts. ddition, management, just-in-time inventory, related than their unionsin Mexico are much more cooperative withmanagement some to thenorth. a result, resource As this base is nowproducing counterparts of thehighest in and the Hermosillo cars and trucks NorthAmerica, quality on as one plantis widely regarded thenumber auto factory thecontinent. Thereare also strong industries a well-developed and infrastrucsupporting in ture theautomotive cluster. auto parts The consists approximateof industry that workers supply and around51 percent the of ly400 firms employ125,000 auto partsmarket. Thesecompanies forboththedomestic countrys produce and exportmarkets, and manyare a resultof foreign directinvestment by U. S. -based auto part firms. For example,General Motors has component as in a plantsin thecountry, wellas financial participation Aralmex, Mexican auto partcompanythatexportssnobbers, and the Condumexgroup,which Table2. MexicanAutomotive Cluster FirmName GeneralMotorsof MexicoSA CV de Chrysler MexicoSA de Volkswagen MexicoSA CV Ford MotorCo. SA RenaultIndustrias MexicanasSA CV Kenworth MexicanaSA CV Cifunsa CV SA Cummins CV SA MetalsaSA CV Y SUBS Central Industrias CV de SA NemakSA Source:Expansion, 21, August 1991. 1990 sales (U. S. $ m) 2,252 2,090 1,600 1,242 208 143 134 93 92 90 53 52 nth vol. 33 †¢ Special Issue †¢ 1993/2 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions Porters Diamond Framework: the Mexican Context ith and Ford Motorhas a jointventure Mexicanauto harnesses rings. exports and firms thatmanufacture motorheads, plasticparts. security glasses, parts firms have similar Nissan,and a host of otherforeign arrangeV olkswagen, ments. customers auto outputin Mexico are in thelocal market. for The primary of thatgoes forexport increasing is the However, percentage thisoutput every in and In 1986itwas 17 percent; 1988itwas 32 percent; by 1990,thelast year. The forecast 1995 are for yearforwhichstatistics available,it was 34 percent. if In particular, a free tradeagreement signed is Mexicosaccessiis 50 percent. in Thisaccessiauto market theworldwillincrease to sharply. bility thelargest sinceU. S. rotectionism now is critical the country, to is bility particularly A Mexicanacceptance of barriers. thesame time, to raiseimport threatening in The sameis true American carsmanufactured Mexicois at an all-time high. of the where qualityreputation Mexicanassembly in theUnitedStates, plants at is beingfelt thedealershowroom. cluster in The leadingfirms theMexicanautomotive (see Table 2) all have in investments Mexico. For example,General Motors uses these significant Ford makesthe and to Cavaliers; operati ons produceBuickCentury Chevrolet turns the Ram Charger, out and Escortshere;and Chrysler Tracers Shadow, In thesefirms, wellas others as in and Spirit itsMexicanoperations. ddition, of will billions dollarsoverthenextfiveyearsto in theindustry, be spending is and expand theirlocal capacityin Mexico. The results that the upgrade in thiscountry overthenextdecade will of cars and trucks produced quality of to continue riseand Mexicowillbecomea majorworldclass producer cars market. and theexport forboththedomestic is cluster extremely of The market high. Thereare potential theautomotive is thatwill have to be dealt withif thecountry to some problems, however, Primeamong theseis the need for its continueincreasing competitiveness. One of the major reasonswhy Mexican autos are cost technology. greater and It that trend automation robotics. s unlikely this is efficientthelackofhigh and Canadian auto In can continue. addition,as more and moreAmerican on to is business shifted Mexico,thiswi llput majorpressure any NAFTA to from strategy that this and benefit thatthesetwocountries ensure handsomely and Europeans, not. do suchas theJapanese otherforeign producers, Conclusion future closelylinked thatof theUnitedStates,and if is to Mexicoseconomic of a NAFTA is signed,NorthAmerica. When analyzedin terms the Porter mk vol. 33 †¢ Special Issue †¢ 1993/2 53 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions Richard M. Hodgetts iamond someofthecountrys worldclusters havealready strategic developed wide competitive and automotive strength. Duringthe 1990s the petroleum clusters proving be highly the of are to It thatbefore turn competitive. is likely thecentury, into Mexicowillhaveeffectively linked theseindustries theNorth in and American market willbe a majoreconomic and force energy automotive will It thatthecountry beginmaking products. is equallylikely majorinroads in otherareas such as sem iconductors computer. in its automotive and As this as is of success, development lessa result technological prowess itwillbe the defavorable factor relatedand supporting industries, conditions, countrys firms. efore, As Mexico mandconditions, thestructure rivalry the and of and willfindthatitcan linkitsdiamondframework thatof theUnitedStates with in areas(Magnusand in theprocess becomea worldwide other competitor still will son 1992). Once again,Porters diamondframework proveto be a useful paradigm. References Baker, S. (1991) The Friends of Carlos Salinas. Business Week 3223, pp. 40-42. Baker, S. and S. Walker. (1991a) Mexico: The Salad Bowl of North America? Business Week 3201, pp. 70-71. Baker, S. and S. Walker. (1991 b) The American Dream is Alive and Well in Mexico. Business Week 3233, pp. 102-103. Crookell, H. (1990) Canadian-American Trade and InvestmentUnder the Free Trade Agreement. Westport,Conn: Quorum Books. DCruz, J. R. and J. Fleck. (1987) Yankee Canadians in the Global Economy. London, Ontario: National Centre for Management Research and Development. Toronto: DCruz J. R. and Alan M. Rugman. (1992) New Compactsfor Canadian Competitiveness. Kodak Canada Inc. Dunning, J. (1990) Dunning on Porter. Paper presentedat the Annual Meeting of the Academy of InternationalBusiness. Magnusson, P. Building Free Trade Bloc by Bloc. Business Week. No. 3267, pp. 26-27. Perry,N. (1992) Whats Powering Mexicos Success. Fortune125, 3, p. 114. Porter,M. E. (1990) The Competitive Advantageof Nations. New York: Free Press. and Performance, EconomicImpact. Boston: Rugman, A. (1980) Multinationalsin Canada: Theory, Martinus Nijhoff. for Canadas Multinationals. Toronto: Rugman, A. and J. Mcllveen (1985) Megafirms:Strategies Methuen/Nelson. Rugman, A. and A. Verbeke (1990) Global Corporate Strategyand Trade Policy. London: Routledge. for for Rugman, A. M. and J. DCruz. (1990) New Visions Canadian Business: Strategies Competing in the Global Economy. Toronto: Kodak Canada Inc. Canadas International CompetitiveRugman, A. M. and J. DCruz. (1991) Fast Forward: Improving ness. Toronto: Kodak Canada Inc. Toronto: McGraw-Hill. Safarian, A. E. (1968) Foreign Ownershipof Canadian Industry. 54 mir vol. 33 †¢ Special Issue †¢ 1993/2 This content downloaded from 146. 50. 153. 28 on Thu, 30 May 2013 08:40:14 AM All use subject to JSTOR Terms and Conditions

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Back to Space I found President Bush's "State of the Union Address" was very interesting. As he talked about his new space plans about NASA. As I got to thinking about his new plan, I found myself wondering what is out there in the universe? Should we really be spending so much money on space activities?There are many good reasons why we should send people to mars and moon. Our universe is very complex and mysterious. The more we learn about it the better off we will be. Like what the wise man, Francis Bacon, once said "Knowledge is Power." Many people wonder what is out there. Maybe sending people to mars and moon could answer some of our questions. NASA has had problems in the past, but they have helped us learn so much about space. We have already had the rover on mars for sometime now. The rover has helped us find out many interesting facts.English: President George W. Bush delivers his Sta...Space program all over the world should share information about the finding on the universe. I know th e chinese have just put their 1st astronaut up in space a month or so ago. It may draw conflict with NASA. I think they should just all work together. We all live on one planet.There is some controversy why we shouldn't send people to Mars. For example, the space shuttle Colombia that crashed and killed seven astronauts. What makes them think that something like this won't happen again? Money is also a very big issue. American is in a lot of debt right now. Is spending all this money going to mars a good idea? Think of the Americans we will be putting in danger.Overall I strongly agree with President Bush, and his idea of putting people on mars and moon. We could learn...

ISMG 3000 Essay Example | Topics and Well Written Essays - 750 words

ISMG 3000 - Essay Example This paper will therefore analyze the impacts of information technology in the governance of firm in relation to the case study â€Å"is there a smarter approach to IT governance?† The Accenture IT model is an essential model since enables researchers and businesses to identify or establish their business environment in relation to IT governance. According to the case study the Accenture model measures the effectiveness of existing and new IT policies within an organization. The model therefore enables businesses to measure their level of decision making in relation to their access to information technology. In addition, the model relies on a business’ competitive advantage and the value of IT. The model uses different parameters to classify different companies in to four categories. According to the given quadrants, Aclan can be considered as a responsive solution providing company. This is because the company can only realize competitive advantage over its competitors through efficiency in its production. Aclan produces metal-based products and therefore it is faced with the challenge of high cost of inputs and raw materials (A-G Magazine, Web). Effec tive IT governance models for the company will therefore, work by enhancing efficiency in production and operation. After identifying the category within which a firm or business fall within the governance model, the next step is to establish the decision category of IT governance. The Weill and Ross model of IT governance is based on accountability and desirable behavior for IT users. Organizing model and investment are the main governance style at Aclan. These governance styles have a close connection with Weill and Ross model of IT governance. Aclan Company uses a decentralized system of governance that has a high degree of rigidity. The main reason for having such a governance structure is to facilitate the production and marketing of the company’s products while maintaining as high degree

Musicals in the West End Essay Example | Topics and Well Written Essays - 1750 words

Musicals in the West End - Essay Example Before presenting any logical argument, it is inherent to carry out a practical check on the shows currently running in the West End theatres and those lined up for production later in the year. According to the London Theatre Online by Darren Daglish, there are 23 musicals, 13 comedies, and 11 dramas (or straight plays if you like) currently running. Mathematically, this translates to 48% musicals, 28% comedies, and 24% drama. At this point, one might conclude that there many musicals shows than the other two classes. However, there is a list of shows lined up for production this year, including 9 musicals, 11 comedies, and 37 plays: or 16% musicals, 20% comedies, and 64% dramas [2]. Clearly, plays still dominate the theatre time if these statistics are anything to go by. While there may be repetition of some musicals such as Billy Eliot, Blood Brothers, and Jersey Boys, there is a relatively few number of repetition of plays. Actually, there are fifteen musicals repetitions with on ly six repeated plays. Thus, it would be inaccurate to say that the West End harbours more musicals than other subsidised theatres. However, one must bear in mind that musicals have relatively long runs than plays. Thus, there may not necessarily be a 64% increase in the number of plays. Dominance of musicals Another interesting statistic is that about two-thirds of the straight plays currently showing or planned for production show in subsidized theatres, with only seven and two musicals. Therefore, there will be around 30 musicals, 17 comedies, and 16 straight plays in the commercial theatres. Certainly, this is not a show of unhealthy competition and dominance by musicals! Essentially, the dominant nature of musicals in the West End theatres is a perception rather than a matter of fact. To prove this practically, try asking any average person about any showing musicals in the West End theatres and majority will mention Billy Elliot, Jersey Boys, and The Lion King [3]. The person may also mention Cats and Les Mis, and probably Beauty and the Beast. Similarly, ask the people to mention a few straight plays in the same theatres would probably respond by naming just a single play and add the typical â€Å"some Shakespeare.† This highlights the enormous interest that the public has for musicals as compared to straight plays at all levels, with the exception of real theatrical devotee

The Keys Stages in the Capital Investment Decision-Making Process Essay

The Keys Stages in the Capital Investment Decision-Making Process - Essay Example This research will begin with the identifying investment opportunities. Once the capital investment strategy and budgetary processes are developed, the remaining process hinges on the generation of good investment ideas.   Projects do not exist merely to be discerned, rather opportunities for investment need to be highlighted or created, and subsequently exploited.   Initial investigation of the proposal pursues highlighting the projects’ feasibility (both technically and commercially). The origination of the proposal can come either from laid mechanisms that the entity has established to scan the environment for investment opportunities; technological developments/changes; or from those working in technical positions. Investment opportunities or proposals could emanate from analysis of strategic choices, an investigation of the present business environment, research and development, or legal requirements. A two-stage decision approach can be an effective way of encouragin g investment ideas whereby, first, organizational personnel is encouraged to advance any preliminary undeveloped ideas that they have. The advanced ideas are then reviewed in the first stage and those that fail feasibility test screened out using decision criteria. The most promising ideas continue to the next stage whereby thorough financial and strategic appraisals are undertaken.   The core requisite in this stage details that investment proposal should reinforce the attainment of organizational objectives. It is essential to appreciate that even projects that fail to come to realization may produce ideas and information that benefit future investments; hence, unsuccessful projects are not merely a waste of time and effort. An investment idea cannot be evaluated until the idea has been suitably defined and presented. In reality, within the business world, capital markets are imperfect, manifested by the fact that, among other aspects, companies are usually restricted in the amo unt of finance available for capital investment. Companies, thus, need to decide between competing for investment proposals and pick those manifesting the best strategic fit and the most suitable utilization of economic resources. The company’s capital investment procedures manual should outline the requirements for project information, as well as the format of the proposal. The preferred terminology ought to be specified and defined, and the project appraisal methods and criteria should be made clear. Standardized proposal forms should allow for flexibility in the lifespan, costs, and benefits of projects. However, too much flexibility may constrain the comparability of proposals. Thus, a balance has to be struck to match the organization and the forms of projects it considers. The screening of the projects may spotlight aspects such as cash flow analysis, critical variables, documentation, and sensitivity analysis. Candidate investment proposals require an in-depth analysis and appraisal to establish projects, which avail the most attractive opportunities critical to the attainment of organizational goals such as enhancing shareholder wealth. Analysis and acceptance stage involve undertaking financial analysis of the project and comparing the project to predetermined acceptance criteria, as well as considering the project as per the capital budget for both present and future operating periods.

The History Of International Cybersecurity Politics Essay

The History Of International Cybersecurity Politics Essay The United States, England, and Continental Europe have very different approaches to cybersecurity. The United States and United Kingdom conceive of cyber primarily as a national security problem to be handled by the military- which in turn sees the Internet as a fifth domain of war to be dominated. The rest of the European Union, however, sees cyber threats mostly as an irritant for commerce and individual privacy that should be dealt with by civilian authorities working in combination with private enterprise. Additionally, while the United States can have a single policy, even though its one implemented by many different federal departments, the European Union is made up of twenty-seven nations with their own laws, notions, and philosophical differences over how to approach cyber issues. Finally, there is NATO, where a unified transatlantic cyber vision must be reconciled and arranged in a coherent manner among twenty-eight allies through a cumbersome bureaucratic process. To make sense of these conflicting visions, this essay reviews cyber attacks against NATO members, attempts to outline the challenges of developing a transatlantic vision for cyber policy, and highlights some of the fundamental differences among NATO members. It is helpful to remember that although the Internet is so ensconced in most of our lives that it is hard to envision living without it, the first modern Web browser didnt debut until 1993 and broadband access has only become widespread over the last decade. As a result, senior government and military leaders did not grow up with the Internet and are gradually having to adapt to emerging cyber realities. Franklin Kramer, who worked as assistant secretary of defense under President Bill Clinton, draws a comparison with the Great Fire of London, he notes that it nearly destroyed the city in 1666 because an advance in living conditions- wooden houses for many- was not matched by security measures. There were no firefighting technologies, no firefighting processes, and no resources devoted to fire fighting. This was still true more than two centuries later with the Great Chicago Fire. Despite our slow learning curve, in the modern world, while fire may strike, it is not the city-devourin g scourge that it once was. Through government regulations that established building codes and through volunteer and government-run fire departments, a protective-response was established over the centuries.  [1]   Former Deputy Secretary of Defense William J. Lynn III uses a more aggressive analogy: The first military aircraft was bought, I think, in 1908, somewhere around there. So were in about 1928, he said. Weve kind of seen some à ¢Ã¢â€š ¬Ã‚ ¦ biplanes shoot at each other over France, he added. But we havent really seen kind of what a true cyberconflict is going to look like.  [2]   Currently, European policymakers seem to treat cybersecurity more along fire-prevention lines rather than as biplanes over France. And framing is critical when thinking about cyber issues. As Kramer observes, Ask the wrong question, and you generally will get the wrong answer. And cyber- and what to do about cyber conflict- is an arena where there is generally no agreement on what is the question, certainly no agreement on what are the answers, and evolving so fast that questions are transmuted and affect and change the validity of answers that have been given. He argues that the lack of agreement over the nature of the problem, lack of coherent regulation and authority mechanisms, and conflict between connectivity and security together make cyber a wicked problem not easily susceptible to resolution.  [3]   Lynn manages to frame the issue in military and security terms but fully acknowledges that the reality is quite blurred and that no clear lines exist in this new domain. I mean, clearly if you take down significant portions of our economy we would probably consider that an attack. But an intrusion stealing data, on the other hand, probably isnt an attack. And there are [an] enormous number of steps in between those two.  [4]   Lynn goes on to say, one of the challenges facing Pentagon strategists is deciding at what threshold do you consider something an attackà ¢Ã¢â€š ¬Ã‚ ¦ I think the policy community both inside and outside the government is wrestling with that, and I dont think weve wrestled it to the ground yet. In other words, it is difficult to know whether the house is on fire or biplanes are shooting at each other.  [5]   Correspondingly tricky, defense officials say, is how to pinpoint who is doing the attacking. This raises further complications that are clearly at the heart of the Pentagons mission. At the Council on Foreign Relations Lynn summarized the issue If you dont know who to attribute an attack to, you cant retaliate against that attack, As a result, you cant deter through punishment, you cant deter by retaliating against the attack. He discussed the complexities that make cyberwar so different from, say, nuclear missiles, which of course come with a return address.  [6]   The cyber threat is very much a part of our current reality. Over the last several years several NATO members and partners, including the United States, have been targeted by severe cyber attacks. Estonia What is commonly believed to be the first known case of one state targeting another by cyber-warfare began on April 27, 2007, when a massive denial-of-service attack was launched by Russia against Estonia over a dispute involving a statue. The attack crippled websites of government ministries, political parties, newspapers, banks, and companies.  [7]  The attack was nicknamed Web War One and it caused a resonation within transatlantic national security circles.  [8]   The German newspaper Deutsche Welle wrote that Estonia is particularly vulnerable to cyber attacks because it is one of the most wired countries in the world. Nearly everyone in Estonia conducts banking and other daily activities on line. So when the cyber attack occurred, it nearly shut Estonia down.  [9]  Then-EU Information Society and Media commissioner Viviane Reding called the attacks a wakeup call, commenting that if people do not understand the urgency now, they never will. Her reaction was to incorporate a response into an EU-wide law on identity theft over the Internet.  [10]  Additionally, NATO did establish a Cyber Center of Excellence in Tallinn, which will be discussed later in the essay. Georgia While not a NATO member, Georgia is a NATO partner, and the April 2008 Bucharest Summit declared that it will become a member at some unspecified time in the future, a promise reiterated at the November 2010 Lisbon Summit.  [11]  Weeks before the August 2008 Russian land invasion and air attack, Georgia was subject to an extensive, coordinated cyber attack. American experts estimated that the attacks against Georgias Internet infrastructure began as early as July 20, with coordinated barrages of millions of requests- known as distributed denial of service, or DDOS, attacks- that overloaded and effectively shut down Georgian servers.  [12]  The pressure was intensified during the early days of the war, effectively shutting down critical communications in Georgia. After defacing Georgian President Mikheil Saakashvilis web site and integrating a slideshow portraying Saakashvili as Hitler, coming up with identical images of both Saakashvili and Hitlers public appearances, the site remained under a sustained DDoS attack. Writing as the attacks were under way, security consultant Dancho Danchev believed it smells like a three letter intelligence agencys propaganda arm has managed to somehow supply the creative for the defacement of Georgia Presidents official web site, thereby forgetting a simple rule of engagement in such a conflict- risk forwarding the responsibility of the attack to each and every Russian or Russian supporter that ever attacked Georgian sites using publicly obtainable DDOS attack tools in a coordinated fashion.  [13]  Bill Woodcock, the research director at Packet Clearing House, a California-based nonprofit group that tracks Internet security trends, noted that the attacks represented a landmark: the first use of a cyber a ttack in conjunction with an armed military invasion.  [14]   The nature of cyber attacks is such that, two and a half years later, there is still no definitive answer on who caused the attack. They certainly emanated from Russia, but the precise role of Moscows military and intelligence services remains unclear. Given that the cyber attacks preceded and accompanied conventional military attacks, there appears to be a link to the Russian government. A March 2009 report by Greylogic concluded Russias Foreign Military Intelligence agency (the GRU) and Federal Security Service (the FSB), rather than patriotic hackers, were likely to have played a key role in coordinating and organizing the attacks. They added, The available evidence supports a strong likelihood of GRU/ FSB planning and direction at a high level while relying on Nashi intermediaries and the phenomenon of crowd-sourcing to obfuscate their involvement and implement their strategy.  [15]   United States In a 2010 essay for Foreign Affairs, Lynn revealed that in 2008, the US Department of Defense suffered a significant compromise of its classified military computer networks. It began when an infected flash drive was inserted into a US military laptop at a base in the Middle East. The flash drives malicious computer code, placed there by a foreign intelligence agency, uploaded itself onto a network run by the US Central Command. That code spread undetected on both classified and unclassified systems, establishing what amounted to a digital beachhead, from which data could be transferred to servers under foreign control.  [16]   The upshot is that adversaries have acquired thousands of files from US networks and from the networks of US allies and industry partners, including weapons blueprints, operational plans, and surveillance data.  [17]   Lynn classified this attack as the most significant breach of US military computers ever and stated that it served as an important wake-up call.  [18]  He acknowledged that to that point, we did not think our classified networks could be penetrated.  [19]  The result of this new awareness was Operation Buckshot Yankee, a fourteen-month program that rid US systems of the agent.btz worm and helped lead to a major reorganization of the armed forces information defenses, including the creation of the militarys new Cyber Command.  [20]   United Kingdom In a speech at the 2011 Munich Security Conference, British foreign secretary William Hague revealed that a series of cyber attacks on his country took place the previous year. He noted that in late December a spoofed email purporting to be from the White House was sent to a large number of international recipients who were directed to click on a link that then downloaded a variant of ZEUS. The UK Government was targeted in this attack and a large number of emails bypassed some of our filters.  [21]   Additionally, sometime in 2010 the national security interests of the UK were targeted in a deliberate attack on our defense industry. A malicious file posing as a report on a nuclear Trident missile was sent to a defense contractor by someone masquerading as an employee of another defense contractor. Good protective security meant that the email was detected and blocked, but its purpose was undoubtedly to steal information relating to our most sensitive defense projects.  [22]   Finally, in February 2011, three of my staff were sent an email, apparently from a British colleague outside the FCO, working on their region. The email claimed to be about a forthcoming visit to the region and looked quite innocent. In fact it was from a hostile state intelligence agency and contained computer code embedded in the attached document that would have attacked their machine. Luckily, our systems identified it and stopped it from ever reaching my staff.  [23]  Still, the prevalence and sophistication of these attacks are a principal reason why cybersecurity and cyber-crime were listed as two of the top five priorities in the UKs National Security Strategy.  [24]   Given the interconnectivity of the Internet, Hague argued that more comprehensive international collaboration is vital, noting that, while cyber security is on the agendas of some 30 multilateral organizations, from the UN to the OSCE and the G8, the problem is that much of this debate is fragmented and lacks focus. He continued, We believe there is a need for a more comprehensive, structured dialogue to begin to build consensus among like-minded countries and to lay the basis for agreement on a set of standards on how countries should act in cyberspace.  [25]   US- European Attitudinal Differences We begin to be able to discern a pattern: The United States and the United Kingdom take cyber security very seriously and view it primarily through the lens of national security. The EU and most Western European members of NATO see it primarily as a national infrastructure problem. In the run-up to the November 2010 Lisbon NATO Summit, Pentagon officials were pressing very firmly to incorporate a concept of active cyber defense into the revised NATO Strategic Concept. Lynn argued that the Cold War concepts of shared warning apply in the 21st century to cyber security. Just as our air defenses, our missile defenses have been linked so too do our cyber defenses need to be linked as well. However, this notion was firmly rejected by the Europeans, with the French particularly adamant.  [26]   USCYBERCOM A July 2010 Economist story proclaimed: After land, sea, air and space, warfare has entered the fifth domain: cyberspace.  [27]  It noted that President Obama had declared the digital infrastructure a strategic national asset and had appointed Howard Schmidt, the former head of security at Microsoft, as the first cybersecurity tsar. Peter Coates notes that the air force had actually anticipated this move in December 2005, declaring cyber a fifth domain when it changed its mission statement to To fly and fight in air, space, and cyberspace. In November of the following year, it redesignated the 8th Air Force to become Air Force Cyberspace Command.  [28]   In May 2010 the Defense Department launched a new subunified command, United States Cyber Command, with Gen. Keith Alexander dual-hatted as its chief while continuing on as director of the National Security Agency. CYBERCOM is charged with the responsibility to direct the operations and defense of specified Department of Defense information networks and prepare to, and when directed, conduct full spectrum military cyberspace operations in order to enable actions in all domains, ensure US/ Allied freedom of action in cyberspace and deny the same to our adversaries.  [29]   As the scale of cyberwarfares threat to US national security and the US economy has come into view, the Pentagon has built layered and robust defenses around military networks and inaugurated the new US Cyber Command to integrate cyber-defense operations across the military. The Pentagon is now working with the Department of Homeland Security to protect government networks and critical infrastructure and with the United States closest allies to expand these defenses internationally. An enormous amount of foundational work remains, but the US government has begun putting in place various initiatives to defend the United States in the digital age.  [30]  Even with stepped-up vigilance and resources, Lynn admits, adversaries have acquired thousands of files from US networks and from the networks of US allies and industry partners, including weapons blueprints, operational plans, and surveillance data.  [31]   The cyber policy of the United States is rapidly evolving, with major developments under way even as I write this essay. The White House issued a new International Strategy for Cyberspace in May 2011. While not by any means moving away from a defense-oriented posture- indeed, it generated breathless commentary by declaring the right to meet cyber attacks with a kinetic response- it sought to bring commercial, individual, diplomatic, and other interests into the equation. This was followed by a new Department of Defense cyber strategy in July 2011, which built on Lynns Foreign Affairs essay. European Network and Information Security Agency (ENISA) While CYBERCOM is the most powerful and well-funded US cyber agency, the lead EU cyber agency is ENISA, the European Network and Information Security Agency. Whereas CYBERCOM is run by a general with an intelligence background, ENISA is run by a physics professor with long experience in the IT sector, including the energy industry, insurance company engineering, aviation, defense, and space industry.  [32]  The agencys mission is to develop a culture of Network and Information Security for the benefit of citizens, consumers, business and public sector organizations in the European Union.  [33]   In December 2010 ENISA released a report identifying what it sees as the top security risks and opportunities of smartphone use and gives security advice for businesses, consumers and governments. The agency considers spyware, poor data cleansing when recycling phones, accidental data leakage, and unauthorized premium-rate phone calls and SMSs as the top risks.  [34]  New regulations are proposed that would see the perpetrators of cyber attacks and the producers of related and malicious software prosecuted, and criminal sanctions increased to a maximum two-year sentence. European countries would also be obliged to respond quickly to requests for help when cyber attacks are perpetrated, and new pan-European criminal offences will be created for the illegal interception of information systems. Home affairs Commissioner Cecilia Malmstrà ¶m added that criminalizing the creation and selling of malicious software and improving European police cooperation would help Europe step up our efforts against cybercrime. ENISAs new mandate will let the agency organize pan-European cybersecurity exercises, public- private network resilience partnerships, and risk assessment and awareness campaigns. ENISAs funding will also be boosted, and its management board will get a stronger supervisory role. ENISAs mandate is also to be extended by five years to 2017. The new directive will also supersede a 2005 council framework decision on cybercrime because that previous regulation did not focus sufficiently on evolving threats- in particular, large-scale simultaneous attacks against information systems, such as Stuxnet, and the increasing criminal use of botnets. Stuxnet was recently used to attack Irans nuclear power infrastructure, and a single botnet, Rustock, is estimated to be responsible for two-fifths of the worlds spam.  [35]   Additionally, EU states are constrained by Directive 95/ 46/ EC, better known as the Data Protection Directive, which provides enormous protection for any information relating to an identified or identifiable natural person. Compare this to the USA Patriot Act, which gives enormous leeway to US law enforcement and intelligence agencies to access electronic data held by US companies in order to investigate and deter terrorist activities. In June 2011 Gordon Frazer, managing director of Microsoft UK, set off a firestorm when he declared that European customer data stored on cloud computing services by companies with a US presence cannot be guaranteed the protections afforded under the Data Protection Directive, setting off a demand from some EU lawmakers to resolve this issue.  [36]   Germany In late February 2011 Germanys outgoing minister of the interior, Thomas de Maizià ¨re, unveiled the countrys Nationale Cyber-Sicherheitsstrategie (National Cyber Security Strategy).  [37]  To American eyes, the fact that it was the interior ministry, not the defense ministry, issuing the strategy is striking. It was no accident: this is by no means a defense document. The documents introduction notes that in Germany all players of social and economic life use the possibilities provided by cyberspace. As part of an increasingly interconnected world, the state, critical infrastructures, businesses and citizens in Germany depend on the reliable functioning of information and communication technology and the Internet. Among the threats listed: Malfunctioning IT products and components, the break-down of information infrastructures or serious cyber attacks may have a considerable negative impact on the performance of technology, businesses and the administration and hence on Germanys social lifelines. Contrast this with Lynns analogy of biplanes over France, and his pondering at what threshold do you consider something an attack? German security scholar Thomas Rid laments that the strategy is coming a bit late and that Germanys thinking lags that of the United States and the United Kingdom. Beyond that, he notes that the two agencies created to manage cyber issues are woefully understaffed and tasked with myriad responsibilities related tangentially at best to cyber security. And, according to a cyber kodex established in the new strategy, German interests in data security à ¢Ã¢â€š ¬Ã‚ ¦ would be pursued in international organizations such as the UN, the OSCE, the European Council, the OECD, and NATO- in that order.  [38]   United Kingdom as Outlier As is frequently the case on matters of international security, the United Kingdom is much more in line with its American cousin than its neighbors on the Continent. In an October 12, 2010, speech at Londons International Institute for Strategic Studies, Iain Lobban, director of GCHQ (the UKs National Security Agency analogue, responsible for signals intelligence) noted that his country combines the intelligence and information assurance missions in a single agency, an arrangement shared by only a few other countries, most notably the US. It gives us a richer view of vulnerabilities and threats than those who consider them purely from the point of view of defense.  [39]   He confessed to constant barrages of spam, worms, theft of intellectual property on a massive scale, some of it not just sensitive to the commercial enterprises in question but of national security concern too, and all manner of other attacks that have caused significant disruption to Government systems. Consequently, his government was looking to significantly increase its investment in the cyber realm even at a time when the global recession was forcing significant austerity in other departments, including in more traditional military assets.  [40]   Thomas Rid notes the sheer breadth of Lobbans focus: Cyber encompasses, for instance, more and more online government services (read: steadily increasing vulnerability); critical national infrastructure, publicly or privately run; online crime in all its facets; espionage (both industrial and governmental), and such things as the proper norms of behavior for responsible states.  [41]   The implications are vast, as Lobban hints and Rid explicates: partnerships of a new kind are needed to deal with cyber threats and risks. International partnerships, with like-minded countries that need to establish and maintain appropriate norms of behavior in crisis situations- and intersectoral partnerships, between government agencies and industry, especially the high-tech sector.  [42]   In his Munich Security Conference speech, Hague noted that we rely on computer networks for the water in our taps, the electricity in our kitchens, the sat navs in our cars, the running of trains, the storing of our medical records, the availability of food in our supermarkets and the flow of money into high street cash machines. Further, Many government services are now delivered via the internet, as is education in many classrooms. In the UK, 70 percent of younger internet users bank online and two thirds of all adults shop on the internet.  [43]   Given the new awareness of vulnerabilities and the degree of dependence, then, the United Kingdoms new National Security Strategy ranks cyber attack and cyber crime in our top five highest priority risks. This is not lip service. At the same time that the British military is suffering such severe cutbacks that the Royal Navy is reduced to sharing a single aircraft carrier with France, the current budget provided  £ 650 million of new funding for a national cyber-security program, which will improve our capabilities in cyber-space and pull together government efforts. As part of that effort, Hague said, We have established a new Ministerial Group on cyber security which I chair. And we have boosted the UKs cyber capabilities with the establishment of a new Defense Cyber Operations Group, incorporating cyber security into the mainstream of our defense planning and operation.  [44]   NATO Responses After months of study and debate the 2010 NATO Summit in Lisbon issued a new strategic concept on November 19, 2010. In it, cyber issues were officially recognized for the first time as a core alliance mission. Recognizing that cyber attacks are becoming more frequent, more organized and more costly in the damage that they inflict, NATO pledged to develop further our ability to prevent, detect, defend against and recover from cyber-attacks, including by using the NATO planning process to enhance and coordinate national cyber-defense capabilities, bringing all NATO bodies under centralized cyber protection, and better integrating NATO cyber awareness, warning and response with member nations.  [45]   This was followed in June 2011 by a revised NATO policy on cyber defense and a parallel cyber defense action plan. Combined, they offer a coordinated approach to cyber defense across the Alliance with a focus on preventing cyber threats and building resilience. Additionally, all NATO structures will be brought under centralized protection.  [46]   What practical actions will flow from these policy statements remains unclear, especially in an era of radically declining budgets. But they give an overview of what it terms NATOs principle cyber defense activities.  [47]   Coordinating and Advising on Cyber Defense The cyber-defense policy was implemented by NATOs political, military, and technical

Religion in Public Schools Essay -- Prayer In Public Schools

Religious Rights in Public Schools "JESUS in the classroom!" Are you feeling uncomfortable yet? Religion in the public school systems is among the top of the list of controversial topics in American society, We've long been advised to avoid this and other religiously politically intertwined subjects in polite conversation. If you're like most Americans, this topic makes you frustrated, high strung, or at least a little queasy. From the day the 1st amendment right appeared in the U.S. Constitution, to this present day, and surely into our nation's tomorrows, the proper role of religion in public schools has been, is, and will continue to be a subject of great debate. It is important for school officials, parents, and students to have a clear understanding of the 1st amendment and how it affects their religious rights and the religious rights of others in a public school setting. Unfortunately, most people are confused or misguided when it comes to this issue. The purpose of this paper is to guide the reader throu gh a clear understanding of the 1st amendment; the impact it has had in education, the religious freedoms it grants to students, and the religious freedoms it grants (or doesn't grant) to teachers. The Constitution exists precisely so that opinions and judgments, including can be formed, tested, and expressed. These judgments are for the individual to make, not for the Government to decree even with the mandate or approval of a majority (Supreme Court Justice Anthony M. Kennedy, 1999). In knowing that, the 1st amendment states, "Congress shall make no law respecting an establishment of religion or prohibiting free exercise thereof…" As you can see there are two clauses in this part of the amendment. ... ... First Amendment Court Cases. Schenck v. United States (1919). Riley, R. (1998). Secretary's statement on religious expression. Retrieved November 15, 2001, from, the World Wide Web: http://www.ed.gov/Speeches/08-1995/religion.html Staver, Mathew. Teachers' Rights on Public School Campuses. Retrieved November 16, 2001, from the World Wide Web: http://www.lc.org/OldResources/teachers_rights_0900.html United States Supreme Court. (1993). Lamb's Chapel v. Center. Washington DC. Government Printing Office. United States Supreme Court. (1994). Mozert v. Hawkins County Board of Education, 827 F.2d 1058 (6th Cir. 1987). Washington DC; US Government Printing Office. United States Supreme Court. (1969). Tinker v. Des Moines School Districk, 393 U.S. 503, 89 S. Ct. 733, 21 L. Ed. 2d. 731. Washington DC; US Government Printing Office.

Economic Issues Simulation

Health Maintenance Organizations (HMOs) have an important role to their patients and their health care providers. Castor Collins Health Care Plan was found in the year of 1999, in Pantome. This particular HMO service provide health care insurance and health care services to a variety of physicians and hospitals. This company used the capitation idea for compensation to pay its health care providers. Castor Collins is currently serving 100,000 members, throughout Pantome, and is looking for ways to increase the their numbers.I am a representative of Castor Insurance Organization. I am as well the Vice President, Strategy and Financial Planning here at Castor Collins. My responsibilities include but not limited to, interacting with new potential clients and conveying health care plans that will be benefit them. My job here is to try and maximize profit and also minimize the risk for the company. I will do an analysis that will include the demographics of the employees, the health care risk factors or potential areas of high utilization, and the premiums the company is willing to pay.I will give at least two reasons why I would either choose the Constructit or the E-editor plans. I will state the plan I would be willing to sell to my company, and provide the reasons for my choice, and why the other plans would not be beneficial to my company. In January of 2006, Castor Collins was approached by two organizations looking for health insurance. The two groups Castor Collins have to choose from are Constructit and the E-editor. Construcit have total of a 1000 people, and the E-editor consist of 1600.Neither company provide insurance for their employees at the present time. The Constructit group are willing to pay at least $4000 per person, and the E-editor is willing to pay the least possible $4500 per person. The Castor standard plan do not pre-existing medical concerns, and the Castor enhanced insurance to cover pre-existing medical concerns. The plan to be consider ed first is the Castor Standard Plan. This plan will offer prescriptions, emergency facilities, hospitalization, and ways to help for preventive health services.This pan as we stated earlier do not cover pre-existing medical concerns. The fee for this plan is at least $3,428 which is $572 less than what they were willing to pay for each employee. The second option to consider for the insurance would be the Castor Enhanced Plan. This plan do cover pre-existing medical conditions it will provide coverage to all its employees. It will still provide services to the obese employees. The cost for pre-existing conditions can be estimated at a total of $4, 428, which is slightly higher than the company was willing to pay per employee.It would only work if the company agreed to pay the higher premium in order to benefit all employees especially those with pre-existing medical conditions. The last and final option is the Castor Enhanced Minor plan. This is also a good plan because it will cov er pre-existing medical conditions as well. This plan is the only one that will allow certain services to be removed in order to make the premiums at a lower cost. By removing certain services, it will allow the total cost per employee to be under $4000. It will still cover the bare services like hearing and vision care.The Health care plan I feel would be more beneficial to the company and its employees is the last choice. The Castor Enhanced Minor plan. This plan will cover the employees with the pre-existing medical conditions, and will offer the amount they are willing to pay per employee. This plan can be accustomed to fit the needs of the company. If the company wanted to remove obesity medical services as an option they could. This will save the company money on problems that is related obesity such as hypertension and diabetes. Choosing this plan there will bea charge of $3,943, that is a slight less than $4000.Castor Hall will benefit from this. They will make 3. 9million f rom Construcit. The company have a total of 450 women and a total of 550 men. The woman ages range from 26 to 42 years of age, and the men 26 to 45. The company Constructit work duties have 32% of duties that involve heavy physical activities and 25% that will involve light to moderate physical activities. A main factor to consider when choosing which type of insurance to choose from is the level of high risk for the employees. Obesity is the main problem that is affecting their company.Obesity can cause problems such as hypertension, and heart disease. This will include more doctor visits and prescriptions that will increase the cost of health care for this company. The health problems the company will have to deal with are nearly half of the employees are obese. With total of 198 men and 192 women. That is 39% of the personnel. Blood pressure is another cause of major medical concerns at Constructit. The percentage is 19%, 88 men and 105 women. There are employees that suffer with allergy. It affects 85 women and 92 men that is 17% .Migraine are 16%, this include 93 women and 75 men. Only 13% of the personnel surprisingly suffer with Respiratory Disease. That number include 57 women and 78 men. The last medical condition the company should be concerned with since it has lower percentage of employees suffering with is digestive orders is the least at 8% with total of 32 women and 52 men. Knowing the demographics of the medical conditions of all the employees, this help to choose a plan to benefit the employees and be affordable to Constritit also, and not go over the budget of $4000 per employee.As vice President, Strategy and Financial Planning at Castor Collins, I would not choose either plan. The standard plan will not cover obesity. With the rate of 39%, that would be important to make sure my employees are in a situation to receive the medical attention they need. The Castor Enhance plan do cover pre-existing conditions, but it don’t give the poss ibility to add or remove the medical services that’s more beneficial to the employees. The services offered in this plan would increase would extend the amount the employees are willing to pay, it would not be profitable to Castor Hall.

Wesfarmers

Wesfarmers Introduction Wesfarmers is a cooperative that provides services and products in Australia. The Corporation was established in 1914 (Wesfarmers Limited 2011). The organisation became the largest producers of wheat in 1924. Wesfarmers Cooperative became a limited company in 1940. Wesfarmers products include fertilisers, coal exports, agricultural chemicals, and safety equipment (Wesfarmers Limited 2011).Advertising We will write a custom essay sample on Wesfarmers specifically for you for only $16.05 $11/page Learn More The aims of the organisation include customer’s satisfaction, safety, integrity, efficiency, environmental protection and corporate governance. This report provides a detailed analysis of the financial position of Wesfarmers Corporation. To evaluate the companys stock value, we will study their financial position. Thus, the firm’s, financial performance support its financial growth and shareholders strength. This paper will evalua te five financial performances of Wesfarmers Cooperative. The financial variables include short-term solvency, market-based investment, profitability ratios, efficiency ratios and long-term solvency. As a result, we will evaluate Wesfarmers performance for two financial years. Using Wesfarmers Annual Report 2011, we computed five financial ratios of the organisation. Finally, the financial review will be from 2010 to 2011. Ratios Table1: Short-term solvency ratio 2010 ($m) 2011 ($m) Average ($m) Current ratio 1.23 1.17 1.2 Quick ratio 0.64 0.60 0.62 Cash flow from operations to liabilities 42% 33% 38% To calculate the solvency ratios of Wesfarmers Corporation, we will apply different financial formulas. Current ratio = current assets/current liabilitiesAdvertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Thus, for 2010, 9674/7852 = 1.23 For 2011, 10218/8722 = 1.17 Quick rati o = quick assets/current liabilities Thus, for 2010, = 1640 + 1767 + 1384 + 150 + 75/7852 = 0.64 For 2011, 5231/8722 = 0.60Advertising We will write a custom essay sample on Wesfarmers specifically for you for only $16.05 $11/page Learn More Operating cash flow from operations to current liabilities = operating cash flow/current liabilities Thus, for 2010, 3327/7852 = 42% For 2011, 2917/8722 = 33% Table 2: Efficiency ratios 2010 2011 AverageAdvertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Debit turnover 27 27 27 Average days sales uncollected 14 days 14 days 14 days Inventory turnover 2 3 2.5 Inventory turnover in days 122 days 146 days 134 days Debt turnover = net sales/average debtors Average days sales uncollected = days in years debtor’s turnover Inventory turnover = cost of goods sold/average inventory Inventory turnover in days = days in the year/inventory turnover Thus debtors turnover = 49865/ (1893 + 1767/2) = 27 Average days sales uncollected = 365/25 = 14 days Inventory turnover = 9674/ (4665 + 4658/2) = 2 Inventory turnover days = 365/3 = 122 days Table 3: Profitability ratios 2010 2011 Average Net profit margin 3.3% 3.7% 3.5 Interest cost as a percentage of sales 1.3% 1.5% 1.4 Asset turnover 1.3 1.32 1.31 Return on asset 5.7% 5.53% 5.62 Return of ordinary shareholder’s equity 6.4% 7.7% 7.05 Net profit margin = net profit/sales Interest cost as a percentage of sales = interest expense/ sales Asset turnover = sales/a verage total assets Return on assets = net profit + after tax interest cost/average total assets Return of ordinary shareholder’s equity = net profit – preference dividend/ average ordinary shareholder’s equity Thus, for 2010, net profit margin = 1565/49865 = 3.3% Interest cost as a percentage of sales = 650/49202 = 1.3% Asset turnover = 49856/ (39236 +39062/2) = 1.3 Return on asset = 2215/39149 = 5.7% Return of ordinary shareholder’s equity = 1565 0/ (24248 +24694/2) = 6.4% Table 4: Long-term solvency ratios 2010 2011 Average Debt to equity 0.59 0.61 0.6 Debt to total assets 0.37 0.38 0.38 Interest coverage 3.64 3.64 3.64 Cash flow from operations to total liabilities 22.9% 18.8% 20.5 Debt to equity = total liabilities / total shareholder’s equity Debt to total assets = total liabilities /total assets Interest coverage = net profit + income tax + interest / Interest expense Cash flow from operations to total liabilities = operating ca sh flow / total liabilities Thus, for 2010, Debt to equity = 14542/24694 = 0.59 Debt to total assets = 14542/39236 = 0.37 Interest coverage = (1565 + 650 + 149) /650 = 3.64 Cash flow from operations to total liabilities = 3327/14542 = 22.9% Table 5: Market-based ratios 2010 2011 Average Price/Earnings (P/E) 0.18 0.19 0.2 Earnings yield 5.5% 5.23 5.34 Dividend yield 5.54% 5.23 5.3 Net tangible asset backing $0.87 $0.90 0.9 Price/Earnings (P/E) = market price per share/earnings per share Earnings yield = earnings per share/ market price value Dividend yield = dividend per share /market price per share Net tangible asset backing = net tangible asset/ number of ordinary shares issued Thus, for 2010, Price/ Earnings = 24.48/135 = 0.18 Earnings yield = 135/24.48 = 5.5% Dividend yield = 135.7/24.48 = 5.54% Net tangible asset backing = 24694 4328/23286 = $0.87 Evaluation Short-term solvency ratios Short-term solvency ratios describe a firms ability to offset debts and loans. Th us, a firms capacity to withstand financial distress is called short-term solvency (AccountingExplained.com 2013). The features of short-term solvency include cash flow from operations, quick ratio, and current ratio. In 2010, Wesfarmers current ratio was 1.2. By implication, the firm’s current ratio describes the Wesfarmers ability to cover the short-term financial distress. As a result, the firm can offset 1.2 times its liabilities. However, the current ratio dropped in 2011. As a result, the firms obligation to repay short-term liabilities dropped from 1.23 to 1.17. Wesfarmers quick ratio was 0.64 in 2010. Quick ratio describes a firms cash reserves and assets. As a result, the organisation can repay sixty four percent of its liabilities. However, the firms quick ratio dropped to 0.60 in 2011. Cash flow from operations to liabilities describes a firm’s ability to repay debt using operating cash flows (Anderson 2013). Wesfarmers cash flow was 42 and 33 percent in 201 0 and 2011 respectively. The ratio revealed that the firm can generate cash to pay short-term liabilities. As a result, investors will be willing to become shareholders. Efficiency ratios Wesfarmers receivables can be measured by its efficiency ratio. Thus, efficiency ratio describes the firms turnover on assets and liabilities. Wesfarmers debtor’s turnover stood at 27 days in 2010 and 2011. By implication, the firm’s debt collection takes longer time. However, its average sale uncollected was 14 days. Thus, the firms capacity to collect the debtors account was 14 days. However, its inventory turnover rose from 2 to 3 in 2011. By implication, the firm’s investments increased with inventories (The Brandow Company 2012). Wesfarmers turnover in days describes the number of days to sell its inventories. The firms turnover in days dropped from 122 to 146 in 2011. Profitability ratios Net profit margin describes a firm’s capacity to generate revenue after inter est payment (Small Business Development Corporation 2012). Wesfarmers net profit margin increased from 3.3 percent in 2010 to 3.7 percent in 2011. As a result, the firms internal sales increased by 1 percent. The firm’s interest cost as a percentage of sales rose from 1.3 to 1.5 percent. By implication, the firms cost of interest describes its stability and profitability. Wesfarmers asset turnover shows no sign of increase in 2011. The firms average industry was 1.31, which indicates its efficiency in asset turnover. Return on assets marginally dropped from 5.7 to 5.53 in 2011. By implication, market trends, inflation, and depreciation influenced the firms return on assets. Wesfarmers return of ordinary shareholders equity rose from 6.4 to 7.7 percent. Thus, the firms operating performance was significant in 2011. Long-term solvency ratios Long-term solvency describes a firms obligation to offset loans (Mike-Bazley 2013). However, the repayment covers a longer period than sho rt-term solvency. Wesfarmers debt to equity ratio rose from 0.59 to 0.61 in 2011. The ratio describes the connection between equity and debt financing (Peavier 2012). However, the firm’s debt to total assets did not increase in 2011. Wesfarmers average industry was 0.38 in 2011. The ratio describes the portion of assets that cover debt financing. Wesfarmers interest coverage stood at 3.64 in 2010 and 2011. As a result, the firms total liabilities increased from 14,542 to 15, 485 million dollars in 2011. However, the firms cash flow from operations to total liabilities dropped from 22.9 to 18.8 percent. Thus, the firms asset utilisation and savings will improve its net assets. Market-based ratios The market value of an organisation is determined by its market-based ratios (Morningstar, Inc. 2013). Wesfarmers price per earnings rose from 0.18 to 0.19 in 2011. Thus, the stock price reveals the firm’s market value. Asset allocations are determined by the firms earnings yie ld. As a result, Wesfarmers earnings yield over a 12 year period dropped to 5.23 percent in 2011. The firm’s dividend yield dropped from 5.54 to 5.23 in 2011. However, its net tangible asset backing rose from 0.87 to 0.90 in 2011. As a result, the firm’s net worth was 25,329 million dollars in 2011. The ratio reveals that Wesfarmers stock value will remain constant during the next fiscal year. Conclusions The paper analysed various financial ratios of Wesfarmers Corporation. The financial performance and standings described the firm’s liabilities, assets, equity, and market value. Sale of goods at Wesfarmers organisation rose from 49,865 to 52891 million in 2011. As a result, the firms market value increased from 27.48 to 31.85. The firms total assets and liabilities were 40,814 and 15,485 million dollars in 2011. Wesfarmers net asset was increased to 25,329 million dollars in 2011. As a result, the firm’s financial performance increased marginally in 201 1. Thus, investors can utilise the market indicators to forecast the strength of the organisation. Consequently, economic analysts can compare the firms value with its competitors using its financial performance. References AccountingExplained.com: financial accounting 2013, http://accountingexplained.com/financial/. Anderson, R 2013, Financial Management Study Guide. 5th edn, Chifley Business, South Melbourne. Mike-Bazley, H 2013, Contemporary Accounting. 8th edn, Cengage Learning: South Melbourne Australia. Morningstar, Inc.: morningstars take 2013, http://quotes.morningstar.com/stock/ocldy/s?t=OCLDY. Peavier, R 2012, Financial Ratio Analysis Tutorial 101, http://bizfinance.about.com/od/yourfinancialposition/ss/financial-ratio-analysis-tutorial- 101. htm. Small Business Development Corporation: balance sheets 2012, smallbusiness.wa.gov.au/understanding-balance-sheets/. The Brandow Company: industry income-expense statements, 2012, bizstats.com/corporation-industry-financials/manuf acturing-31/chemicalmanufacturing- 325/other-chemical-product-and-preparations-325905/show. Wesfarmers Limited: Wesfarmers annual report 2011, wesresources.com.au/sites/default/files/publications/2011%20Annual%20Report_Main%20Body%20pages%201_65.pdf.

Windows XP Essay Example

Windows XP Essay Example Windows XP Essay Windows XP Essay Computer security and protection has become a prime necessity of today’s era and Windows XP has proved itself as a quite efficient software or operating system. This OS works on different derivatives that determine protection. First it determines the Goals of Protection and follows it with Principles of Protection and Domain of Protection. Then the access matrix is formed and the Access Matrix is implemented with the help of access control and then it is determined by the aspects of Access Rights Revocation. However, in general it can be stated that Computer security and protection of Windows XP is mainly based on two aspects. The first is Capability-Based Systems and the second one is Language-Based Protection.In general it can be stated that there are several areas of threats for a computer system and these includes Breach of confidentiality, Breach of integrity, Breach of availability, Theft of service and Denial of service. All these means are instrumented by the help of c ertain methods like Session hijacking, Man-in-the-middle attack and breach authentication or Masquerading. But the good news is that Windows XP has been successful in negotiating these problems so far. The main reason behind this success is the four level operation of security in Windows XP. These four levels are the Network structure, Operating System configuration, physical protective measures and being more user friendly by making the human elements involved more aware and informed. However, it should be remembered that weakness in any of the four aspects may cause the failure of the entire security and protection measures. Thus it is important to update and keep informed at all levels. (Lamb, 2004)The most common and menacing threats of the Computer security and protection of Windows XP are Trojan horse or Trojans. These are extremely threatening and they operate on misused environment in Code segment and exploited mechanism that allow programs written by users to be executed by other users. They also operate as covert channels, pop-up browser windows and spyware. There is another security related threat and it is called Trap Door and these could be included in a compiler and threats specific user identifier or password that circumvents normal security procedures. Furthermore, there is another computer treat called the Logic Bomb and it is a Program that initiates a security incident under certain circumstances. Computer security and protection of Windows XP negates and identifies these threats and protects the computer successfully.This application of security and protection are varied and meticulous in Windows XP. As defense in depth is most common security theory the OS uses multiple layers of security. Windows XP also has a Security policy that describes what is being secured making the system more informative and particular. The Windows XP also uses vulnerability assessment compares real state of system / network compared to security policy and there is also intrusion detection endeavors to detect attempted or successful intrusions. It also uses a Signature-based detection spots that enables the knowledge of bad patterns and also uses Anomaly detection methods that spots differences from normal behavior. Along with all these specifications the Windows XP also provides Virus protection and the entire procedure is supported by Auditing, accounting, and logging of all or specific system or network activities. (King, 2006)References:King, H; (2006); OS Today: Windows XP; Auckland: HBT Brooks LtdLamb, D; (2004); Cult to Culture: The Development of Civilization on the Strategic Strata; Wellington: National Book Trust

The Price of Doing Good - 12 Criteria Assignment - 1

The Price of Doing Good - 12 Criteria - Assignment Example Survival of business: Business ethics are mandatory for the survival of business. The businessmen who do not follow it will have short-term success, but they will fail in the long run. This is because they can cheat a consumer only once. After that, the consumer will not buy goods from that businessman. He will also tell others not to buy from that businessman. So this will defame his image and provoke a negative publicity. This will result in failure of the business. Therefore, if the businessmen do not follow ethical rules, he will fail in the  market. So, it is always better to follow appropriate code of conduct to survive in the market. Safeguarding consumers rights: The consumer has many rights such as right to health and safety, right to be informed, right to choose, right to be heard, right to redress, etc. But many businessmen do not respect and protect these rights. Business ethics are must to safeguard these rights of the consumers. Protecting employees and shareholders: Business ethics are required to protect the interest of employees, shareholders, competitors, dealers, suppliers, etc. It protects them from exploitation through unfair trade practices. Develops good relations: Business ethics are important to develop good and friendly relations between business and society. This will result in a regular supply of good quality goods and services at low prices to the society. It will also result in profits for the businesses thereby resulting in growth of economy. Creates good image: Business ethics create a good image for the business and businessmen. If the businessmen follow all ethical rules, then they will be fully accepted and not criticized by the society. The society will always support those businessmen who follow this necessary code of conduct. Smooth functioning: If the business follows all the business ethics, then the employees, shareholders, consumers, dealers and suppliers will all be happy. So they will give full cooperation to the business. This will result in smooth functioning of the business. So, the business will grow, expand and diversify easily and quickly. It will have more sales and more profits.

Global Purchasing Essay Example | Topics and Well Written Essays - 1000 words

Global Purchasing - Essay Example Purchasing is central to any organization’s activity. They need to purchase raw materials, components and machinery in order to produce or manufacture products. It is stated by Williams (1975, 1985) that an organization’s primary purpose is to reduce negotiations around transactions and to reduce the scrutiny of the same later on. This means that good bargaining and settlement of beneficial terms and conditions ensure that problems do not surface later during delivery or the manufacturing process. It is clear that the profits that will be made on the sale of the product will be largely determined through the effective purchase itself. It is the responsibility of the purchasing department to make what is known as an effective purchase. A purchase is effective when the best price is obtained subject to best delivery schedule and in conformity to the quality parameters that have been explained and accepted by both the supplier and the purchaser. Apart from this, the terms and conditions must also be suitable and not detrimental to the purchaser. There are three types of purchase. One is purchase of Routine Products that are of low financial value not complex and their nature, quality, consistency and value can be determined easily. They are readily available and purchase departments do not spend too much time on their procurement as otherwise the procurement can become more costly than the product itself. Here the relationship with the supplier is nominal. The other type is purchase of Bottleneck Products that are products with a low financial risk and a high complexity. Professional purchasers spend time and money in their determination and in simplifying the relationship with the supplier in order to reduce their complexity. The supplier has the power in this relationship (Five Force Analysis: Porter M.E) and the purchaser is