Locate and compare what it means to be a slave in Phillis Wheatley's Essay

Locate and compare what it means to be a slave in Phillis Wheatley's poetry and Philip Freneau's poetry - Essay Example This makes clear the importance of Phillis as the first African American writer. Philip Freneau was a friend of Jefferson, and he is also known the â€Å"Father of American Literature†. What slavery means in their poems is the focus of this paper. Fortunately, when Phillis Wheatley was sold in the American slave market, she was bought by a Bostonian named Wheatley, who was kind towards the girl. She was only seven years old, with a fragile body. She could not live long. She was always ill. She learned English within a short period. She was also an ardent Christian. She being the first slave woman to become a poet, the readers naturally had expectations about her. They expected her personal emotions to run through the poems. But she wrote poems mainly addressed to the white people. Her first volume of poems, Poems on Various Subjects, Religious and Moral, was published in 1773. Most of her poems are either dedicated to famous personalities, or they are elegies. Her own situations, revealing her emotions as a slave hardly appear anywhere. In fact, there is nothing much in her poems to bracket her as a slave poet, speaking for the emancipation of the oppressed class in America. The only recognition is that she proved that a slav e is also a human being capable of being intelligent and becoming a great poet, a genius. This gave the abolitionists a chance to quote her as a fine example for giving better attention to the blacks in the field of education. Sometimes, the impression Phillis gives is that she was grateful to God for being a Negro, a slave, and for getting a chance to be a Christian and American. She even pleaded God to save all Negroes similarly. In her poem, â€Å"On being Brought from Africa to America†, she says â€Å"It was mercy brought me from my pagan land†. The word â€Å"mercy† is a confusing word. Mercy to God for whatever happened to her in her life could be the

Tale of Genji-Evanescence of Life Essay Example for Free

Tale of Genji-Evanescence of Life Essay Man has always been the one that chases the woman, and the harder the woman is for them to get the more the man wants her. People tend to not appreciate what they have in front of them until they don’t have them anymore. The evanescence of a man’s relationship with a woman of importance is a recurring theme throughout the book. This is demonstrated frequently through Genji’s relationships with the women and people he cared about throughout his life. In Genji’s life he encounters a variety of women through which the same routine occurs; he falls in love, he loses her then he suffers. An important aspect of this evanescence of women is the consolation phase which follows where male characters seek comfort for lost from women of similar physical traits. In The Tale of Genji, Murasaki Shikibu convey the idea of evanescence of important relationships through Genji’s life. Genji’s mother Kiritsubo, who is the Emperors true love, died when Genji was only three years old. Genji had very little time with his birth mother; this foreshadows Genji’s whole life as he matures of how he continuously suffers from losing the women he cares about. When Kiritsubo passed away the Emperor was filled with unending sorrow, he â€Å"had clung all too foundly to his old love, despite universal disapproval, and he did not forget her now, but in a touching way his affection turned to [Fujitsubo], who was a great consolation to him† (Murasaki14). The Emperor seeks a substitute for his wife while Genji seeks a mother. The Emperors grief over Kiritsubo is eased when he meets Fujitsubo because she almost exactly resembles Kiritsubo. Although Genji does not remember his mother much, when the Dame of Staff told him that Fujitsubo resembled his mother, Genji â€Å"wanted always to be with her so as to contemplate her to his heart’s content† (Murasaki14). In order to find comfort, both Genji and his father seek substitution after losing the women the y love. Genji’s relationship with Fujitsubo was short lived. Fujitsubo was a mother replacement when Genji was young, and when Genji came of age he was denied access to her. Genji had an affair with Fujitsubo, falls in love with her and got her pregnant; even though no one found out he still cannot marry her because she is his father’s wife. When Genji was eighteen, he discovers Murasaki in the hills north of Kyoto. Though Murasaki was only ten years old, she already looked extremely similar to Fujitsubo. To Genji, Murasaki is a subsitude for Fujitsubo; he is drawn into her from the moment he saw her and was determined to adopt her no matter what. Genji told the nun that, â€Å"There is an unfathomable bond between her and me, and my heart went out to her the moment I saw her† (Murasaki 99). He falls in love with Murasaki because of her physical resemblance to Fujitsubo. In the end, Genji successfully took Murasaki away to his household before her birth father could make his proper claim. Genji was a father status to Murasaki when she was young, but when she came of age Genji married her. Genji and his first wife Aoi’s romantic relationship is short lived, Genji and Aoi is married for a while, she passed away when he just began to care about her. Genji did not have a good married relationship with Aoi because he finds her cold and unsympathetic, but when Aoi died Genji was depressed. After giving birth Aoi became very sick, Genji went to visit her, â€Å"The sight of her lying there, so beautiful yet so think and weak that she hardly seemed among the living, aroused his love and his keenest sympathy. The hair streaming across her pillow, not a strand out of place, stuck him as a wonder, and as he gazed at her, he found himself unable to understand how for all these years he could have seen any flaw in her† (Murasaki176). Genji did not appreciate or notice Aoi’s beauty until he loses her. After the Emperor died, Genji’s power and influence d eclined. Genji and Oborozukiyo also had a short relationship. They were caught in the act of making love by the Minister of the Right. After knowing that their affair was found out, Genji sent a message to Oborozukiyo saying that, â€Å"I am not surprised to have heard nothing from you, but I am sorrier and more disappointed than words can say now that I am leaving all my world behind† (Murasaki 235). Genji was refrained from seeing her and was exiled to Suma by Lady Kokiden. Throughout Genji’s life, he always falls in love with the women, then loses her and suffers in the end. It is also human nature that the harder it is to get something the more we want to get it. Genji fell in love with Utsusemi when he visited the governor of Kii in Kyoto. Utsusemi’s little brother Kokimi appealed to Genji, therefore, he took him into his personal service. Kokimi helped Genji deliever letters to Utsusemi, and Genji â€Å"learned that there was no hope, her astonishing obduracy made him so detest his own existence that his distress was painfully obvious† (Murasaki 44). He tried hard to seduce her but kept on getting rejected. Genji got hurt when he was rejected by Utsusemi, â€Å"It infuriated him that her amazing resistance, far from disappearing, had instead risen to this pitch, and he was beside himself with outrage and injury, although he also knew perfectly well that strength of character was what had attracted him to her in the first place† (Murasaki 44).When Kokimi was unable to set up Genji to meet with Utsusemi, Genji tells him, â€Å"Very well, then you, at least shall not leave me† and had him lie down with him (Murasaki 44). Since Genji was unable to get Utsusemi, in a way Kokimi became a replacement for her. In The Tale of Genji by Murasaki Shikibu, Genji’s always have short lived relationships with the women he cares about. When it comes to love, Genji tends to not have self-control. He knew he should not pursue Fujitsubo, Oborozukiyo, and many other women, but still he does it. Therefore, Genji has to suffer from constantly losing the woman he loves as the consequence to his actions. After falling in love, losing his love, and suffering, Genji always looks for someone who is physically similar as a subsitution. When the first object of desire proves to be out of reach, attention is naturally transferred to the next best thing. Bibliography Murasaki, Shikibu, and Royall Tyler. The Tale of Genji. New York: Viking, 2001. Print.

People And Organisational Development

People And Organisational Development This paper deals with the various problems organizations face while implementing change. It looks at change both from the organizational point of view and the individuals perspective focusing more on the latter. It considers the various process and models involved in change management. The paper compromises gists of a case studies which is attached as an appendice. Finally the paper concludes by pointing out the drawbacks and offering suitable suggestions for the organization undergoing change taking into account the short term and long term benefits. NOTE: Case study summarized in appendix 1   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  CCC- Coxs Container Company   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  BBC- Byfields Business College Introduction Change is a continuous process which every organization or individual undergoes at some point. Defining change management is sometimes a very complicated process. To find the exact definition to fit the purpose underpins the professionalism of the organization. Voropajev (1998) states change management as an integral process related to all internal and external factors in projects, influencing project changes. It also involves identification of possible changes already occurred and coordinated changes across the entire project. (Appendix) write out the 6 points in Voropajev BNET Business Dictionary best describes it by keeping it simple and states it as â€Å"the coordination of a structured period of transition from situation A to situation B in order to achieve lasting change within an organization.† To make it simpler we can describe it as the changes organizations perform to realize benefits or to develop a profit making business. Change is the requirement for competitive success. Change is not a simple process done overnight, it requires thoughtful planning and implementation and should involve consultation and involvement of all the people (stakeholders, employees, consumers) who are going to be affected by the change. Change management faces both internal, external factors and approaches related to projects. Hence managing change is a very important. Change is not a single action or initiative. It involves various theories underpinned by Cameron Green (2004) such as Organizational change Team Change Individual change Cultural change The core objective to be put forward is whether the organization is entitled for benefits due to the changes suggested and the dis-benefits the organization will face if the changes are not initiated. Change needs to be measurable, realistic and achievable for it to have an impact on the organization and individual. Burnes (2009) identified the two dominant managing change approaches as identifying the strengths and weakness of organizations, and situations they are designed to address. But even by applying this does not cover problems organizations face. Burnes (2009) also states that both planned and emergent changes have benefits both practically and theoretically but they neglect other approaches. So a framework built to fit change is a better option and making it flexible for future changes goes even further. The ADKAR model (Appendix) proposed by porsci () acts as a useful tool and when realized in a sequence of steps helps individuals and organizations to manage successful change. Many organizations used this to good effect and Jeff Hiatt (1998,2006) developed it further and prioritized on individuals when achieving change successful. Reasons for Changes Problems facing Coxs Container Company (CCC) Nearing retirement of Founder Managing Director High Market Competition Reduced margins Erica Wilson survey entirely on her own Fear of job cuts No training Change not consulted with employees Cultural issues Non co-operation of manager employees Addition of new consultant Lack of communication between top management employees 2/3 staff work in the production department Are people ready to change? What is the best strategy for change? What is the best leadership style Vermeulen (1997) Resistance to change We (human beings) have always constituted to the major share of resistance to change. The bulk of scientific evidence suggests that the more the individual is enabled to exercise control over his/her task and relates his efforts to his fellows it is lot more likely to gain a positive commitment. Paton James (2008) This shows a basis of a democratic government. A fair amount of disagreement and resistant is often seen in change because it is disruptive and stressful. Kotter and Schlesinger (1979) suggested four ways why people resist change Parochial or narrow-minded self-interest Misunderstanding Low tolerance to change Different assessments of the situation People tend to posses fixed ideas and follow certain rules which have worked well for them in the past. But due to advancement in technology, science and trends different organizations tend to be updated with the latest advancement which requires changes or perhaps even re-organising the way they work. Organizational personnels not adapting to this change face the 4 change resistance stated above by Kotter and Schlesinger. But the leader has to assess the situation before implementing the new changes. BBC CCC (Appendix) both dont indicate the assessment being carried out taking all stakeholders involved in the change. Who Performs the Change? A highly debated question is that not many people like change and the people making the decisions come in the firing line if it backfires. Habits are part of every persons life but is counterproductive when it deals with change. Change process or change curve evolves through number of mental phases. Denial Frustration Negotiating or bargaining Depression Acceptance Experimentation Discovery of delight Intergration Baekdal, Hansen, Todbjerg and Mikkelsen (2006) Leaders or managers are the people who initiate the change. As mentioned earlier by Cameron Green (2004) the various changes taking place usually the initiator plays a huge part. At BBCs (Appendix) the director forced changes which affected the work environment and a lot of resistance from employees was portrayed but it invariablelly brought down the performance. Two rather contrasting points to put forward both in BBC CCC the individuals accepted change and the individual repelled changes respectively. John l Thompson 73 Role of Leader in Change Management Leaders seem to infer the phrase change management as means of getting the organization to perform what they want. Cramm (2003) in her research article stress that this only affects the people. This could only lead to the lack of the vision not being migrated from the head of the leader to the hands of the employee. Even strategic planning can go to the drain if there is lack in vision. VISION  Ã‚  Ã‚  Ã‚  STRATEGY  Ã‚  Ã‚  Ã‚  IMPLEMENTATION Leaders need not possess single recommended style. Thompson (1997) Some are autocratic others democratic in the way they make their decisions. Each relies on different strengths such as planning and analyzing, some are intuitive and visionary. What exactly we need of leaders is going up to people and involving them as part of the process. Gaining Inputs Stakeholder views Likes Dislikes Cramm (2003) states that â€Å"true spirit of change management is enabling all employees to express and apply their knowledge in a way that benefits each of them and the organization.† Burnes (2009) also emphasis that employee empowerment as crucial to successful change, especially when there is attitude and culture involved. For this in turn leads us to motivation being an important criterion. He further compared three theories in order to understand employee involvement. Depth of Intervention Cognitive Dissonance Psychological Contract Burnes (2009) There are a few key aspects to be considered by leaders or managers who take on challenge of change. Recognizing group consent a major influence on willingness to change Convey and emphasize two trust Training a part of building process Allowing enough time for change Encourage people to adopt basic idea to fit the real world and them   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Vermulen (1997) et al. Deal Kennedy (1988) The employees have to be convinced that this change is going to benefit them and is done taking into account the best interest of the organization and the employees. Fragmented leadership is a huge cause of outputs being brought down. There always is a need for a well structured plan to achieve transformation. Carr Littman (1990, p. 195) et al. Vermulen (1997) identified nine steps needed for successful cultural transformation process. Planning for cultural change Assessing the current state of quality culture Training managers and the workforce Management adopting and modeling the new behavior Making organizational and regulation changes that support quality action Redesign individual performance appraisal and monetary reward systems to reflect the principles of total quality management Changing budget practices Rewarding positive changes Using communication tools to reinforce TQM principles Hence the leader has to pay extensive attention to cultural change since it is a sensitive issue. Diagnosing and analyzing the organizations character will provide assessment of the strength and weakness. This can be further built upon. This makes the implementation a easier procedure to be carried out. Managing the Individual Culture Changing organizational structure can be done rather quickly but the cultural change is a long process and consumes time. Kanter (1992) et al Burnes (2009) The fact that many people or even teams are repulsive towards the word change is that they are worried if their individual roles and responsibilities would be affected. People are more suited towards performing actions which they are familiar with. Hence Cameron Green (2004) stress the fact that managing the individual and people within the organization is an important criteria. Thompson (1997) states that if culture and power is overlooked, implementation may not be possible. Baekdal, Hansen, Todbjerg and Mikkelsen (2006) state that change management is more about the people and higher efficiency does not come from working harder but from within. Higher efficiency comes from motivation, complete understanding for the entire process and self worth. This has to be focused on a large scale if the company is to improve. The strategic leader plays an important part in the culture of the organization. Attitudes and behavior of employees are affected as well as willingness to accept responsibilities and taking measured risks due to these changes. The culture of an organization is associated to the personality of the individual. Culture and communication cannot be separated and for this to be put in place common assumptions have to be made. Catwright et al Mullins (2005) sees culture as a system of management authority and states three ways employees react. They identify themselves with their organization accept its rules when it is the right thing to do. Internalize the organisations values when they believe they are right and They motivated to achieve the organization objectives Catwright et al Mullins (2005) There are many types of cultures seen in organizations which are cited in Mullins (2005) pg 892 893). But person culture plays as a huge part usually. It sometimes could be people getting together to agreeing with a certain system like the one of sharing cakes on Fridays at BBC. This atmosphere has worked well and has not hindered their success. But forced changes made by the new management has affected the working and led to inefficiencies. Every organization has its own unique culture and large organization posses a mix or cultures. Different people like working in different environments and they get more satisfied and this makes them happy which reflects on their performance. But Dean Kennedy et al Burnes (2005) categorise corporate cultures bearing two factors The degree of risk associated with the organisations activities and The speed at which organizations and their employees receive feedback on the success of decisions or strategies. Change Factors Free market competition is a driving source for organizations and individuals to innovate and change Communication communication strategy Involving people who are going to be directly affected by the changes is crucial and setting up a communication strategy is vital. This has immense effect on reducing the uncertainty people face and assures them of their involvement. By implementing this particular procedure the employees are draw into discussions and gives them the right to debate about the changes. This discussion can convince them why the change is needed rather than just being told to do changes which they really dont know why is being suggested. This can reduce anger, frustration etc being cultivated. This is best described in a mini case study cited in Burnes (2009) where the trade union convenor for NHS had problems with the top managements way of implementing change. Change was not consulted but ordered. This de-motivated the entire department and lack of staff support was evident. The situation seemed not like changing until the new chief executive taking the post on the very first day saw the problem and went to the head of the union. This was a huge step forward since it gave the union head and its employees the assurance of their involvement and them being heard out. This resulted in changes not being possible previously were possible now. It required only a little bit of courtesy and thought to initiate this step. This small win was a big step forward which contributed heavily to the change process. 500 words Management Union Meetings Having management union meetings to address the problems facing the organization and the drop in operational quality is needed. The fact that none of the changes have been discussed with the union is seen as a drawback. The management and the employees can come to mutual agreements and speak over conflicts which are hindering the changes from not being employed. Perhaps suggesting a few compensations to employees might work in favour of the management. Corbett (1994) Drawbacks of Change To every positive there is a negative. If change is not realized tendency to rely on a particular area is too strong and critical factor needed for success will not be built upon. In this every changing world change is the essence for success. Case study at McDonalds Thompson (1997) the smallest change such as change in menu also affects the people involved in making the food since they are accustomed to making the same previous menu. The motivation and moral is suppressed due to this change which will affect quality and time initially. But the organization is going to benefit so this change has to be realized. Forced change and accepted change are two changes which are not discussed often. Case Study Wave management Since over 2/3 of the companys employees work in production department and the fact that they have been working for the past 10 years, managing them to adapt to the changes is critical. Two main steps to put down are Involvement of employees in changes Finding ways to manage them Ezzamel, Green, Lilley Willmott (1995) state that organizations should be leaner, creative and adaptive. Bureaucracy hierarchical control have a lot of drawbacks. Having a network with a shared culture will make the employees committed to the core values of the organization which will bring down the cumbersome hierarchy and its cost. This is needed since there seems to be a vacuum when it comes to confrontation between top management and employees. This new wave management can lead to lot of future emphasis such as Problem-solve through participation Facilitate employee self-discipline Effectively develop HR Flexibly appreciate contingency ambiguity Ezzamel et al. (1995) Ezzamel et al. (1995) also state that managers are not required enforcing rules to control workforce. But this could lead to some problems with respect to disciplinary and motivation. Having cross-functional managers is a way to bring the top management and employees closer. This will bring self disciple as well as a constant monitoring process together which will benefit the organization. This eradicates functional specialism and boundary wjich are seen as obstacles for project management. Strategic management The steps mentioned below is probably the basic best process in achieving change. Planning to achieve the desired output needs a strategy to be implemented. Morgans (1986) et al. Burnes (2009) organizational metaphors 8 point description is good but many people rather prefer Johnsons Scholes (1993) et al. Some problems cannot be solved but only managed and adding value helps to manage change. Values such as awareness, responsibility, teamwork, tolerance and teamwork are supreme just as flexibility and change readiness. Specify time line Specifying the time line for the change to take place is often neglected by organizations. As seen from CCC or BBC case study (Appendix) there is no mention of time frame which does not help to achieve short term or long term wins. This could sometimes weaken the change process and become barriers for change management. Drawing time lines analyzing time lines are crucial to planning and implementation process. 500 words Remedies Motivation Engaging people Ways to make them understand (Educate Regulate them of the situation) Stats (projections) Positive attitude we are not victims, dont take it personal, global competition Get out of a comfort zone loss or opportunities Be a better player you fail company fails Re tool and re invent yourself einstien slogan Ask better questions + attitude Poor planning involve team communicate Dont see the point why will they want to change If ROI is not there then no company will be happy Motivation Manage change Setting Exampes Managing change is an important ingredient to achieving change. It is the responsibility of the management and many organizations fail to do so. There is no point blaming the workers. McCormic () states that effectively dealing with emotional response to change as a key criteria. Managers have their reasons to resist change. This may be due to the fact that they might feel that the change is not going to have effects or lack of trust in the management. Possible solution Top management needs to consider solutions from managers and them in turn from workers. People disagreeing must not be beaten down for their expressions. Top management must review the suggestions and analyze there is enough funds (Executive Sponsorship) to carry out the process if agreed. Open communication two way and honest opinions must be given Expectations must be robust and everyone must be aware of the change. Reporting system must be initiated on mutual grounds. By implementing these steps most managers will tend to be won over by the management and the employees will follow suit. Cultural effects on TQM Culture plays an important part in an organization involving every individual contributing to it and helps change over a period of time. Management plays the most important roles in achieving this transformation. Vermulen (1997) Vermulen (1997) identifies companys culture as major issue hindering TQM and change. Companies through is policies and day to day actions usually send signals defining what is important and proper which in turn helps employees act accordingly. If an audit could be carried out like questionnaires, personal interviews etc this can assess the situation and a feedback system would be created which helps gain commitment and awareness of the present situation. Vermulen (1997) states management must accept and follow accordingly even though there might be differences more than conformance. But what this does in the CCCs situation is that since 2/3 of the company employees work in the same department and are of similar cultural background. This is not always the solution. What effects change can bring STUDENT ID : 469131Page 8

Temperatures effect on Chemiluminescence :: essays research papers

Temperature's effect on Chemiluminescence Sitting by a fire on a fall night one would not think of a campfire as cold light. Could there be such a thing? â€Å"Cold light† is what the word luminescence means (Fluorescent Mineral Society, 1 of 2). Cold light can be seen at many different temperatures. Not only does cold light exist, but there are several types of luminescence including bioluminescence or â€Å"living light†, photoluminescence or fluorescence, â€Å"day-glow†, and phosphorescence which is delayed luminescence or â€Å"afterglow† (Fluorescent Mineral Society, 1 of 2). Chemiluminescence is when two or more chemicals mix and react to create light energy. An example of bioluminescence is a firefly. The production of light in bioluminescent animals is caused by converting chemical energy to light energy (Bioluminescence, 1 of 1). In a firefly, oxygen, luciferin, luciferase (an enzyme), and ATP combine in the light organ in a chemical reaction that creates cold light (Johnson, 42). This bright, blinking light helps the male firefly attract female fireflies as a possible mate. Other examples of bioluminescent organisms are fungi, earthworms, jellyfish, fish, and other sea creatures (Berthold Technologies, 1 of 2). Light sticks work in a similar way. When you â€Å"snap† a light stick, the chemical in the glass capsule mixes with a chemical in the plastic tube and creates light energy. Instead of the chemicals used by a firefly, other chemicals are used to create a glow. The light stick that you can buy at a store usually contains hydrogen peroxide, phenyl oxalate ester, and fluorescent dye (New York Times Company, 1 of 3). The light stick will glow the same color as the fluorescent dye placed in it. In luminescence, the chemical reaction â€Å"kicks an electron of an atom out of its ‘ground’ (lowest-energy) state into an ‘excited’ (higher-energy) state, then the electron give back the energy in the form of light so it can fall back to it’s ‘ground’ state (Fluorescent Mineral Society, 1 of 2). Controlling chemiluminescent light was how Omniglow Incorporated became the first company to produce light sticks. In 1986, when the first light stick was invented, scientists thought they could make a lot of money selling light sticks. However, since they had to make light sticks by hand, it was harder for them to produce very many of them. Until machines were invented to make light sticks, it cost too much money to make them by hand.

Investment Analysis about two companies.-Pratt Ltd and Dana Ltd. Essay

According to a detail investment analysis by assessing performance, efficiency and financial stability between two companies, we may find a company that is suitable for investment. During the period of analysis, accounting ratios are utilized to direct the discussion. However, there are some limitation relates to ratio analysis, which can be addressed further. At last, a company would be recommended by combining discussion of many factors. Introduction Potential shareholder faces two options about whether investing in Pratt Ltd or Dana Ltd. According to detail information from financial statements, we can use accounting ratios to make a better prediction and analysis about potential advantages and drawbacks in investing in one of these companies. Through interpretation of accounting ratios, we can look closely at the financial state of two companies-profitability, efficiency, and financial stability, and then decide which company to invest in. Profitability Profitability relates to companies’ past and future performance, according to Jacklin.et.al(2007), performance is important , not only because it determines investment returns, but also the analysis of performance may provide a good indicator of the risk of bankruptcy. There are a number of ratios that assist in predicting performance. The first one is gross profit margin, which is represented by net sales divided by gross profit. The ratio calculated in Pratt Ltd is 31.2%, while 37% in Dona LTD, which reveals that every dollar sales of returns 0.37$ in Dona is better than 0.31$ in Pratt, after deducting the cost of goods sold. The second ratio is selling expense ratio, which can be represented by sales divided by selling expense. This measures the relative importance of various expenses in the earning of profit by comparing them to the sales for the period. The result is 3.6% in Pratt, compared with 3.9% in Dana, which indicates higher sales revenue involves higher expenses i n Dana than in Pratt. The next one is net profit margin, which measures net sales divided by earnings after interest tax. This reflects final return to shareholders, the result got is 8.9% in Pratt, 10.5% in Dona. Dona achieves a better return for shareholders. The quality of income ratio focus more on cash generated, it is a measure of management’s efficiency. The result got is 43.5% in Pratt, 4.1%in Dana, which indicates that a lower quality of income occurs in Dana, which relates to the level of income in the form of cash flow. The next one is asset turnover ratio, which measures the relationship of sales to total assets. It indicates how effective it is in generating sales from total investment in assets. The result got is 4.86% in Pratt, compared with 4.28% in Dana, which beyond the industry average level. Assuming valuation used the same for each company, the ratio reveals that for every dollar of investment in assets, Pratt produced more sales than Dana. The next ratio is return on assets, which shows earnings from using the total investment in assets results from net profit margin and asset turnover; we can compare firms on their performance in generating profit from their investment in assets. The result is 57.75%% in Dana, which is higher than Pratt’s 56.76%. Both ratios indicate good operating performance, compared with industry average’s 54.39%. However, it is clear that Dana produce more profit than Pratt. Given their low asset turn over rate, Dana has a higher return on sales, because both them are the same type of furniture store. The last ratio to evaluate operating performance is return on equity, which combines the impacts of performance and financial structure. Jackling.et.al(2004) indicates the success or failure of management in using leverage to improve owners’ returns, when compared with ROA. Dana produces 79.87% in ROE, while Pratt brings 78.35%. Both firms experiences better performance than industry average. However, it is wise to chose Dana because more returns can be achieved by the use of leverage. Efficiency Jacking et.al. (2007) indicates that operating efficiency relates to capabilities of firms to manage its assets so that maximum return can be obtained for the lowest level of assets. The first ratio to measure efficiency is inventory turnover. The result got in Pratt is32 days, which is less than 34 in industry average, 36 in Dana. This ratio indicates that Dana takes more time to turn over into sales, compared with Pratt. Inventory levels are higher in relation to sales and may imply poor inventory management in Dana, which results in high inventory holding costs and obsolete stocks that is difficult to sell. However, in Pratt, although it may indicate good management, it also indicates inadequate stock levels, causing lost sales and excessive restocking costs. Therefore, there is no applied standard to justify whether the higher inventory turnover rate, the more efficiency it can achieve. All what we need is a reliable comparable figure, which represents the overall perfect situation. The next ratio is accounts receivable turnover, usually expressed as the average number of days credit customers take to pay their debt to the firm. Generally, a rapid turnover of accounts receivable is desirable, however, it should not be so rapid to require credit terms that deter prospective customers. The maximum allowed normal credit period is 30 days, which is longer than 23 in Pratt, 27 in Dona. Pratt takes fewer days to collect cash perhaps due to lack of credit sales. Besides, it may indicate poor control over accounts receivable in Dana. This may result in some liquidity difficulties and finally, extensive writes-offs of bad debts. The last ratio to measure efficiency is accounts payable turnover, which represent the average number of days the firm takes to pay debts to suppliers of goods and services. Usually, more days firm takes to pay debt, a worse reputation can be established, which may lead to difficulties in gaining finance from suppliers and financiers in the future. The result got is 32 days in Dona, which is longer than 29 in industry average, 25 in Pratt. This indicates Dona’s debt repayment is less efficient than Pratt; perhaps a large amount of leverage finance is used to promote sales. As well as we know, operating performance in Dona is clearly better than Pratt. The financial structure in Dona is complicated, which needs to be reorganized. Inefficiency in Dona may result in discounts for early payment being missed. this would cause larger amount of expenses in Dona. Financial Stability Short-term Jackling.et.al (2007) indicates that short-term solvency can be assessed by liquidity ratios, these ratios reveal whether the entity has managed its liquidity or cash flows accurately, they can also measure the entity’s ability to repay its short-term debts. The first ratio used is current ratio, it indicates that the percentage of debts arising within the next 12 months that can be met by assets expected to be liquidated within the same period. The result got in Dana is 170%, compared with 150% in Pratt. This reveals that Dana has excessive current asset holding, perhaps due to a poor turnover of inventory or accounts receivable. The efficiency achieved in Pratt is better than Dana. However, liabilities are more likely to be repaid within one year in Dana. Another ratio used is quick asset ratio, which excluding the less liquid current assets and the less pressing current liabilities, the result got is 0.64 in Dana and 0.60 in Pratt. Although there is more stable financial structure in Dana, it is not significant if inventory cannot be sold and debtors will not pay. The ideal ratio may depend on how readily inventory and debtors can be converted into cash and how rapidly sales can be converted to a cash flow into the organization. Long-term Jacking et al. (2007) indicates that the main goal of financial management is to balance the maturity structure of assets and liabilities. Debt to assets ratio and debt to equity ratio can be used. Both of the result got in Pratt is 45%.81%, compared with 43%, 76% in Dana. This result indicates that Pratt has higher leverage of the entity, it may result in increase in the cost of finance relating to interest payments and in the risk of bankruptcy. Pratt is less likely to repay all debts because proceeds from liquidation will be insufficient. Moreover, Pratt may be likely to have difficulty borrowing funds or at the least, may accept higher interest charges. The creditors are more likely to take action to appoint an official receiver or liquidate the organization, if it defaults in payment of debenture interest. Another ratio is used, which measures the safety margin of profit over interest payments, is called times interest earned ratio. The result got in Dana is 5.3, which is better than 4.7 in Pratt. It is safer in Dana that interest charges are well covered by EBIT. Limitation Timing problems The analysis is a static one, the ratios produced from the balance sheet show financial position at a point in time. The income summary cannot reveal any trend during the period. The information base The important information is frequently not disclosed, the data that is disclosed lacks detail. The comparison is difficult because of length of time an asset has been held or different valuation policies adopted by entities. End use Ratios use information from the past and they are not good indicators of the future. No evaluation can take place until some standard for evaluation has been established. The use of ratios arises when some ratios appear satisfactory and some appear unsatisfactory. Recommendation Based on my analysis from three areas of profitability, efficiency, financial stability, Dana is more suitable company to be invested in. Operating performance in Dona is clearly better than Dana. Although operating efficiency in Pratt is better than Dana, it reversely reflects that Dana has a more stable financial structure; the credit risk is lower in Dona. There are some limitations for analysis, but for both of two companies, their encountered impact is certain. Reference List: Jackling, B, Raar, J, Williams, B& Wines, G2007, Financial Statement Analysis, Luisa Cecotti, North Ryde.

Good will definition Essay

An account that can be found in the assets portion of a company’s balance sheet. Goodwill can often arise when one company is purchased by another company. In an acquisition, the amount paid for the company over book value usually accounts for the target firm’s intangible assets. Goodwill is seen as an intangible asset on the balance sheet because it is not a physical asset like buildings or equipment. Goodwill typically reflects the value of intangible assets such as a strong brand name, good customer relations, good employee relations and any patents or proprietary technology. Method: There are three methods of valuation of goodwill of the firm; 1. Average Profits Method 2. Super Profits Method 3. Capitalisation Method 1. Average Profits Method: This method of goodwill valuation takes the average profit of previous years as its basis. This average profit is multiplied by the number of purchases made in that year. Goodwill = Average Profit x Number of Purchases in the year Before calculating the average profits the following adjustments should be made in the profits of the firm: a. Any abnormal profits should be deducted from the net profits of that year. b. Any abnormal loss should be added back to the net profits of that year. c. Non-operating incomes eg. Income from investments etc should be deducted from the net profits of that year. Example: An Ltd agreed to buy the business of B Ltd. For that purpose Goodwill is to be valued at three years purchase of Average Profits of last five years. The profits of B Ltd. for the last five years are: Year| Profit/Loss ($)| 2005 | 10,000,000| 2006| 12,250,000| 2007| 7,450,000| 2008| 2,450,000 (Loss)| 2009| 12,400,000| Following additional information is available: 1. In the year 2008 the company suffered a loss of $1,000,500 due to fire in the factory. 2. In the year 2009 the company earned an income from investments outside the business $ 4,500,250. Solution: Total profits earned in the past five years= 10,000,000 + 12,250,000 + 7,450,000 – 2,450,000 + 12,400,000 = $ 39,650,000 Total Profits after adjustments = $ 39,650,000 + $ 1,000,500 – $ 4,500,250=$ 36,150,250 Average Profits= $ 36,150,250à ·5=$ 7,230,050 Goodwill = $ 7,230,050Ãâ€"3=$ 21,690,150 Thus A Ltd would pay $ 21,690,150 as the price of Goodwill earned by B Ltd. 2. Super profits method: Super profit refers to a situation where in the actual profit is higher than what is expected. Under this method, Goodwill = super profit x number of years’ purchase Steps for calculating Goodwill under this method are given below: i) Normal Profits = Capital Invested X Normal rate of return/100 ii) Super Profits = Actual Profits – Normal Profits iii) Goodwill = Super Profits x No. of years purchased For example, the capital employed as shown by the books of ABC Ltd is $ 50,000,000. And the normal rate of return is 10 %. Goodwill is to be calculated on the basis of 3 years purchase of super profits of the last four years. Profits for the last four years are: Year| Profit/Loss ($)| 2005 | 10,000,000| 2006| 12,250,000| 2007| 7,450,000| 2008| 5,400,000| Total profits for the last four years = 10,000,000 + 12,250,000 + 7,450,000 + 5,400,000 = $35,100,000 Average Profits = 35,100,000 / 4 = $ 8,775,000 Normal Profits = 50,000,000 X 10/100 = $ 5,000,000 Super Profits = Average/ Actual Profits − Normal Profits = 8,775,000 − 5,000,000 = $ 3,775,000 Goodwill = 3,775,000 Ãâ€" 3 = $ 11,325,000 3. Capitalisation Method: There are two ways of calculating Goodwill under this method: (i) Capitalisation of Average Profits Method (ii) Capitalisation of Super Profits Method (i) Capitalisation of Average Profits Method: As per this method, Goodwill = Capitalized Value the firm – Net Assets Capitalized Value of the firm = Average Profit x 100/ Normal Rate of Return Net Assets = Total Assets – External Liabilities For example a firm earns $40,000 as its average profits. The normal rate of rteturn is 10%. Total assets of the firm are $1,000,000 and its total external liabilities are $ 500,000. To calculate the amount of goodwill: Total capitalized value of the firm = 40,000 Ãâ€" 100/10 = 400,000 Capital Employed = 1,000,000 − 500,000 = 500,000 Goodwill = 500,000 − 400,000 = 100,000 (ii)Capitalisation of Super Profits: Under this method, goodwill is calculated as: Goodwill = Super Profit x 100/Normal Rate of Return For example ABC Ltd earns a profit of $ 50,000 by employing a capital of $ 200,000, The normal rate of return of a firm is 20%. To calculate Goodwill: Normal Profits = 200,000 Ãâ€" 20/100 =$ 40,000 Super profits = 50,000 − 40,000 = $10,000 Goodwill = 10,000 Ãâ€" 100 / 20 = $50,000 Partial Goodwill Method In the partial goodwill method, goodwill is calculated as the difference between the purchase consideration paid and the acquirer’s share of the fair value of the net identifiable assets. In partial goodwill method, only the acquirer’s share of the goodwill is recognized. Goodwill under full goodwill method exceeds goodwill under partial goodwill method by the non-controlling interest share of the goodwill. Partial goodwill method is not allowed under US GAAP but it is allowed as an option under IFRS (besides the full goodwill method). Goodwill under partial goodwill method differs from goodwill under full goodwill method only in situations in which investment by the acquirer is less than 100%. Example Let’s follow the same example that we discussed in full goodwill method. Company A acquired 75% shareholding in Company B for $20 million. Book value of net identifiable assets of Company B is $14 million. The fair value of Company B’s asset is the same as their book value except accounts receivables which are impaired by $1 million. Book value of assets is $54 million while book value of liabilities is $40 million. The purchase consideration is the cash paid to acquire 75% ownership and it equals $20 million. Fair value of net identifiable assets is $13 million ($54 million book value minus $1 million on account if impairment in accounts receivable minus liabilities of $40 million). The acquirer’s share of the net identifiable assets equals 75% of $13 million which equals $9.75 million. Goodwill is hence $20 million minus $9.75 which equals $10.25 million. Company A will pass the following journal entry to record the business combination. Goodwill| $10.25 M| | Assets| $53 M| | Liabilities| | $40 M| Cash| | $20 M| Non-Controlling Interest| | $3.25 M| Non-controlling interest is calculated as 25% of fair value of net identifiable assets. It equals $3.25 ($13 million multiplied by 0.25). It can also be arrived at the balancing figure: (goodwill under full goodwill method + assets acquired − liabilities assumed − cash paid). Total goodwill under full goodwill method was $13.67 and non-controlling interest was $6.67 million. The difference is non-controlling interest in case of partial goodwill is only because in partial goodwill method the non-controlling interest share of goodwill is not recorded which equals $3.42 million (0.25 of ($26.67 minus $13 million)). Weighted average profit method This method of goodwill evaluation can be explained as a modified side of the he average profit method. This method involves the relevant number of weights, i.e. 1, 2, 3, 4 multiples profit of each year so as to find out value product. The total of products is thereafter divided by the total of weights so as to calculate the weighted average profits. Goodwill = Weighted Average Profits x No. of years Purchase Weighted Average Profit = Total of Products of Profits/ Total of Weights EXAMPLE The profit of X Ltd. for the last five years and the corresponding weights are as follows. Calculate the value of goodwill on the basis of 3 years’ purchase of the weighted average profit. Solution: Weighted Average Profit = Rs. 21, 30,000 à · 15 = Rs. 1, 42,000. Value of Goodwill = 3 years’ purchase of weighted average profit: Rs. 1, 42,000 x 3 = Rs. 4, 26,000