Industry Analysis of Pharmaceutical Industry in Bangladesh

Industry Analysis of Pharmaceutical Industry in Bangladesh In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which is contributing in the country's economy. After the promulgation of Drug Control Ordinance – 1982, the development of this sector was accelerated. The professional knowledge, thoughts and innovative ideas of the pharmaceutical professionals working in this sector are the key factors for these developments. Due to recent development of this sector it is exporting medicines to global market including European market.This sector is also providing 97% of the total medicine requirement of the local market. Leading pharmaceutical companies are expanding their business with the aim to expand export market. Recently few new industries have been established with high tech equipments and professionals which will enhance the strength of this sector. Two organizations, one government (Directorate of Drug Administration) and one semi-governme nt (Pharmacy Council of Bangladesh) control pharmacy practice in Bangladesh.The Bangladesh Pharmaceutical Society is affiliated with international organizations International Pharmaceutical Fede The Bangladesh pharmaceutical market in 2004 stood at approximately US $ 560 million, which is very small when compared to the population base of the country, which currently stands at about 140 million. To put this number on a proper perspective, the total global pharmaceutical sale in 2004 was $430 billion. This is expected to grow at 8. 1% to about $530 billion in 2005.Of course the majority of the sale in 2004 was in brand products, the market segment where Bangladesh does demonstrate safety and efficacy through clinical trials, rather they would have to demonstrate that the drug products that they are filing are therapeutically equivalent to the Reference Listed Drug. One of the major barriers that pharmaceutical companies must overcome to enter the regulated market is to be fully compl iant with current Good Manufacturing Practices (cGMPs).Although many of the firms are ISO certified, it is a fact that virtually none of the pharmaceutical manufacturing plants that are currently in operation in Bangladesh fully complies with cGMP regulations as described in the US Code of Federal Register (CFR). FDA inspections of manufacturing operations are meant to evaluate a firm's cGMPs, and to verify documents, data and manufacturing records submitted in the ANDA. This inspection is a critical part of the drug application approval process.The firms must demonstrate substantial compliance to the satisfaction of the FDA investigators if they are to avoid receiving FDA observations (483's) and approval of their ANDAs. Ration and Commonwealth Pharmaceutical Association. Cross sectional Analysis Pharmaceutical industries are an important means of bringing drug information to health care professionals (1). Their primary goal is to convince clinicians to prescribe their products. Th ese ads often cite external documents in support of their claims (2).Pharmaceutical companies worldwide are heavily involved in aggressive drug promotions through advertisements. But the scientific claims made for drugs are often inaccurate and not based on proper scientific evidences (2, 3, 4). As with many countries worldwide, drug promotion and marketing make up a very large part of the activities of pharmaceutical companies in Bangladesh. It is generally believed that overstatements and misinformation are common promotional activities of drug companies in Bangladesh (5).In a study, drug promotion through industry in promotional brochures showed 50 per cent of claims were based on debatable scientific evidence, while 12 per cent were fake (6). The MediMedia Index of Medical Specialities (MIMS) Bangladesh is an index of important information of available drugs in Bangladesh, mostly used by physicians as a practical reference for daily prescribing. It is a widely available commerci al source published two times a year by MediMedia, Singapore. Beside drug information, each issue of MIMS Bangladesh contains a large number of advertisements, mostly on drugs and medical devices.The extent and types of these advertisements vary in content and size. We conducted a descriptive study to investigate the sources of drug information or claims presented in the advertisements of MIMS Bangladesh. * Materials and methods We selected a convenience sample of the MIMS Bangladesh second issue (2006) for this descriptive study. At first, advertisements on all drugs were separated on the basis of their allocation in the pages. Advertisements containing at least one medical or pharmaceutical claim were considered for evaluation.Other pharmaceutical advertisements containing only drug and company names with no medical or pharmaceutical claims were excluded. Also, some industry on herbal medicines was excluded as well. The competent industry was analyzed for the sources of informatio n provided in support of their claims. The relevant extracted data were presented in the predesigned data forms in a personal computer. Descriptive statistical analyses were performed using Microsoft Excel 2002 on Windows XP Professional. * Results This descriptive study was conducted to measure the sources of information in drug in industry Bangladesh.Advertisements containing at least one medical or pharmaceutical claim were extracted from a convenience sample of the second issue of MediMedia Index of Medical Specialities (MIMS) Bangladesh in 2006. Descriptive statistical analyses including frequency distribution and percentage were performed for data analysis. Of the total 112 industry about 82 per cent did not provide any references in support of their claims. Only 17. 9 per cent did; of which 65 per cent of the references included journal articles, which was followed by â€Å"data on file† in 25 per cent of cases.Superlative claims were commonly used without any scientif ic evidence. The study reported that medical or pharmaceutical claims made in the drug industry in MIMS Bangladesh are mostly not supported by scientific evidence. * Discussion Our study reported a high number of industries with no scientific evidence to substantiate promotional claims. Journal articles were found to be most cited sources of drug information in the advertisements, which was followed by â€Å"data on file†. Books and other sources are rarely used.Extreme claims were frequently used in most of the advertisements, which were not substantiated by proper scientific evidence. In an analytical study, 62. 1 per cent pharmaceutical industry did not cite references for their claims (7). Villanueva and colleagues showed about 44 per cent unsubstantiated claims in Spanish medical journals’ advertisements (8). The most striking report of unsubstantiated pharmaceutical advertisements was found in Germany where 94 per cent of the industry materials were reported to h ave no scientific evidence (9).A cross-sectional study reported the figure for the US to be 61 per cent (10). Drug advertisements in Russian medical journals showed quite a small number (2 per cent) with references (11). We also found quite a large number of advertisements in MIMS with no scientific basis to support their claims. Journal articles are the major source of drug information in pharmaceutical industry. In an Indian study journal articles accounted for 76 per cent of the sources, whereas books and â€Å"data on file† accounted for 15 and 2 per cent respectively (7).Another similar study from Canada showed figures of 98 per cent for journal articles, 86 per cent for books, and 20 per cent for â€Å"data on file† as references (2). This study also reports journal articles as the most cited sources of drug information. In contrast to others, the use of books as references was found insignificant in our study. We also report significant use of â€Å"data on fil e† information as major evidence of information. Besides unsubstantiated information, unnecessary adjectives were commonly used in the advertisements without proper scientific basis.Major players of the world pharmaceutical industry The pharmaceutical industry is characterized by a high level of concentration with fifteen multinational companies dominating the industry. Table 1. 1 contains information about these major pharmaceutical companies that are sorted in the order of their 2004 revenues from the sales of pharmaceutical products. Numbers provided in this table include sales of all subsidiaries and affiliated companies that are consolidated in annual reports of the corresponding companies.In order to facilitate a comparison of different companies revenues of all of them are shown in US dollars; financial data of the companies with headquarters outside of the U. S. was converted to US dollars using average 2004 . Table 1. 2. Company| Revenue of pharmaceutical segment, (tk . 000)| Total sales, (Tk. 000)| Beximco Pharmaceutical Ltd| 46,133| 52,516| Square Pharmaceutical Ltd| 31,434| 37,324| Aristo Pharmaceutical Ltd| 22,190| 47,348| Glaxco Pharmaceutical Ltd| 21,494| 22,939| Opsonim Pharmaceutical Ltd| 21,426| 21,426| Acme Pharmaceutical Ltd| 18,497| 28,247| ACI Pharmaceutical Ltd| 17,861| 18,711|Key Challenges The main challenges for drug companies come from four areas. First, they must deal with competition from within and without. Second, they must manage within a world of price controls that dictate a wide range of prices from place to place. Third, companies must be constantly on guard for patent violations and seek legal protection in new and growing global markets. Finally, they must manage their product pipelines so that patent expirations do not leave them without protection for their investment. * Competition The pharmaceutical industry currently represents a highly competitive environment.One can distinguish three layers of competition for à ¢â‚¬Å"Big Pharma† companies: First, obviously, â€Å"Big Pharma† companies compete among themselves. Although not all leading pharmaceutical companies cover all segments of pharmaceutical market, almost all of them are active in R;D and production of drugs in the segments with the highest potential – such as treatment of infectious, cardiovascular, psychiatric or oncology diseases. Secondly, â€Å"Big Pharma† companies experience significant profit losses due to competition from the generic drug manufacturers.Opposite to the research-oriented pharmaceutical companies, which invest significant financial resources and time to develop new medicines, generic drug manufacturers spend minimum resources on R;D, and start manufacturing already developed by other companies drugs after their patent expiration. Because generic drug manufacturers do not have to recoup high R;D costs, prices of their products are usually much lower then those of major pharmaceutical co mpanies; as the result, after patent expiration, generic drugs manufacturers capture significant market share, dramatically decreasing revenues of the â€Å"Big Pharma† companies.Finally, the whole pharmaceutical industry competes with other health care industries. In this case, pharmaceutical companies should not only demonstrate high efficiency of their products, but also provide obvious proof of cost advantages in comparison with other forms of care. * Protection of patents Generic drugs manufacturers represent a significant threat to research-based pharmaceutical companies. Moreover, generic drugs manufacturers sometimes start production of patent-protected drug analogues even before a patent expires. Although research-oriented companies in many cases are able to rotect their patents, they do suffer from lost revenues. Therefore, protection of patents is one of the key conditions necessary for further development of the pharmaceutical industry. At the same time, non-effic ient legislation that does not provide the necessary level of patent protection is one of the factors that hamper expansion of â€Å"Big Pharma† companies to the developing countries. * Drugs portfolio management Drug portfolio management is one of the most important determinants of long-term prosperity of research-oriented pharmaceutical companies.First, it takes an extremely long time to develop a new drug, and only a very small portion of all projects is successful. Projects that the company starts today will determine its financial performance 10-15 years later. Therefore, careful planning of R;D projects is very important for the long-term stability of the company. Second, insofar as patents keep exclusivity of drugs only during a limited time, and soon after the expiration of the patent the sales of the drug sharply go down, the company has to carefully monitor its patent expiration dates, and insure that new products become available by that date.Definitely, planning e rrors or rapidly changing demand in the industry can be corrected by acquisition of smaller research companies or patents from competitors, but in any of these cases the company will have to pay a premium price, thus reducing its profitability. Bangladesh in the World Market for Pharmaceuticals In 2004 Bangladesh’s Pharmaceutical exports reached $971 million. That made it Indiana’s sixth largest export industry – accounting for about 5% of all Indiana exports.Between 2002 and 2004, BANGLDESHI Pharmaceutical exports increased by $425 million – an increase of 78%. The key components are described as medications, hormones, and antibiotics. Bangladesh exports most of these products to Europe – the leading destinations in 2004 were France, Spain, the UK, and Germany. Those four countries took almost 59% of bangladeshi’s Pharmaceutical exports that year. The remaining top 10 destinations were Canada, the Netherlands, Switzerland, Ireland, Mexico, and Austria.Indiana’s Pharmaceutical export profile is very similar to the nations – the United States and Indiana are almost totally focused on NAFTA partners and Europe. Who buys the world’s Pharmaceutical products? The United Nation’s Statistics Division publishes annual values for Pharmaceutical imports and exports for most countries. The key world importers include the United States and Europe. Below we report statistics for 2003 for these two areas as well as for other key areas and countries. There are several things to note from this table.First, the United States is the largest importer of Pharmaceutical products followed by EU15 (the fifteen countries that comprised the European Union before the recent expansion to 25 countries) and Switzerland. Japan and Canada are important destinations but each import less than Switzerland. China imported less than $2 billion in 2003 but remains an interesting destination because of its remarkable growth and development. Table 1. 3. Pharmaceutical industry – international trade Importer| 2003 imports, thousands| Exporter|USA| 31,739,624| 79% from Europe; 13% from Asia; 7% from North America| EU15| 28,351,731| 52% from North American; 35% from Europe| Switzerland| 9,718,628| 88% from Europe; 10% from North American| Japan| 6,193,127| 69% from Europe; 23% from North America| Canada| 6,064,628| 49% from Europe; 48% from North America| China| 1,705,632| 65% from Europe;8% from North America| Table note: These data refer to Standard Industrial Trade Classification (SITC Rev: 3) data for codes 54. 1 and 54. 2. These two codes cover what is traditionally thought of as Pharmaceutical products.EU15 refers to the 15 members of the European Union – those that were members before the increase to 25 members. Europe refers to a very large and wide definition of countries in western and east/central Europe. Switzerland is part of Europe but is not a member of the EU. The data is in thous ands of dollars. The next table shows the largest changes that occurred in Pharmaceutical imports between 1995 and 2003. The largest change was the almost $22 billion increase of imports to the United States from Europe. The United States also received large inflows of Pharmaceutical products from Asia ($3. 5 billion) and North America ($1. billion). EU15 also shows up three times in the table with a total of about $28 billion – from N. America, Europe, and Asia. Canada has two entries showing increased Pharmaceutical imports from Europe ($2. 5 billion) and the N. America ($2 billion). Switzerland, Japan, and China’s largest imports came from Europe. Table 1. 4. Changes in pharmaceutical imports between 1995 and 2003, dollar change Imports to| Imports from| Dollar Change In thousands, 1995 to 2003| USA| Europe| 21,968,851| EU15| N. America| 14,786,491| EU15| Europe| 10,041,165| Switzerland| Europe| 6,853,882| USA| Asia| 3,518,057|EU15| Asia| 3,024,816| Canada| Europe| 2,465,464| Canada| N. America| 1,969,847| USA| N. America| 1,904,983| Japan| Europe| 1,601,565| China| Europe| 859,540| While the above table shows where most of the goods are going, the next one features the hot flows – those that have grown the fastest between 1995 and 2003. Notice that this list is a lot different from the one above. Japanese imports from Africa showed huge percentage growth, as did China’s imports from Central ; South America and Africa. The United States is listed four times with triple digit import growth from Europe, North America, Asia, and Oceana.It is interesting that Europe15 is not on this list. Switzerland is mentioned once with rapidly growing imports from Asia. A look at the second column is instructive. Africa shows up three times – suggesting that Africa is becoming a more important exporter of Pharmaceutical products. Africa has had good luck selling to Japan, China, and Canada. Asia is also included with strong exports  œ primarily to the U. S. and Switzerland. Table 1. 5. Changes in pharmaceutical imports between 1995 and 2003, percent change Importer| Exporter| Percent Change, 1995 to 2003| Japan| Africa| 270,477| China| C;S America| 16,370|China| Africa| 11,256| Canada| Africa| 1,036| USA| Europe| 487| USA| N. America| 431| USA| Asia| 395| China| N. America| 386| Switzerland| Asia| 382| USA| Oceana| 367| The Business Cycle and Industry Sectors Economic trends can and do affect industry performance. By identifying and monitoring key assumptions and variables, we can monitor the economy and gauge the implications of new information on our economic outlook and industry analysis. Cyclical changes in the economy arise from the ups and downs of the business cycle. Structure changes occur when the economy undergoes a major change in organization or how it functions.Rotation strategy is when one switches from one industry group to another over the course of a business cycle. Economic Variables and Diffe rent Industries are:- * Inflation: Higher inflation causes a negative impact for pharmaceutical industries because it increases the market interest rate and uncertainty of future costs. It reduces the purchasing power of the buyers. * Interest Rates: The higher bank interest rate causes a adverse effect on the borrowing of the pharmaceutical industry. * International Economics: To some extend the ups and downs of international economics effects the pharmaceutical industry. Consumer Sentiment: Now a day’s consumer sentiments also make a great impact on the pharmaceutical industry. As a result they introducing herbal products to meet the huge demand Environmental Analysis (PEST) Technological advancements, tighter regulatory-compliance overheads, rafts of patent expiries and volatile investor confidence have made the modern pharmaceutical industry an increasingly tough and competitive environment. Below is an analysis of the structure of the pharmaceutical industry using the PE ST (political, economic, social and technological) model? Economic Value Added:In the decade to 2003 the pharmaceutical industry witnessed high value mergers and acquisitions7. With a projected stock value growth rate of 10. 5% (2003-2010) and Health Care growth rate of 12. 5% (2003-2010), the audited value of the global pharmaceutical market is estimated to reach a huge 500 billion dollars by 2004. Only information technology has a higher expected growth rate of 12. 6%. Majority of pharmaceutical sales originate in the US, EU and Japanese markets. Nine geographic markets account for over 80% of global pharmaceutical sales these are, US, Japan, France, Germany, UK, Italy, Canada, Brazil and Spain.Of these markets, the US is the fastest growing market and since 1995 it has accounted for close to 60% of global sales. In 2000 alone the US market grew by 16% to $133 billion dollars making it a key strategic market for pharmaceuticals. Structural Economic Changes and Alternative Industri es: Structural Economic Changes and Alternative Industries is influenced by the factors: * Demographics * Lifestyles * Technology * Politics and regulations But our pharmaceutical Industry of Bangladesh is only affected by demographic and technological forces, which we discuss in the below. Demographic Growing health awareness among the population has also had an influence on market expansion. Unlike in other markets, the Bangladesh pharmaceutical distribution network tends to be more retail-orientated and the bulk of distribution is done by the companies themselves. However, despite the country possessing huge manufacturing capabilities which supply 96% of domestic need, the complete lack of R;D in domestic companies could cause the market to stagnate, especially if companies have not evolved by the time the TRIPS agreement comes into effect.Multinationals should view Bangladesh as a possible manufacturing base. The balance of pharmaceutical trade remains negative, but it is diffic ult to project how the balance will change throughout the forecast period. * Technology While a particular new technology may either increase or decrease health care spending, researchers generally agree that, taken together, advances in medical technology have contributed to rising overall Bangladesh health care spending. Whether a particular new technology will increase or reduce total health expenditures depends on several factors.One is its impact on the cost of treating an individual patient. Does the new technology supplement existing treatment, or is it a full or partial substitute for current approaches? Do these changes result in higher or lower health spending for each patient treated? In looking at the impact on cost per patient, consideration needs to be given to whether the direct costs of the new technology include any effect on the use or cost of other health care services such as hospital days or physician office visits.It is not possible to directly measure the impa ct of new medical technology on total health care spending; innovation in the health care sector occurs continuously, and the impacts of different changes interrelate. The size of the health sector (16% of gross domestic product in 2005) and its diversity (thousands of procedures, products, and interventions) also render direct measurement impractical. Economists have used indirect approaches to try to estimate the impact of new technology on the cost of health care.    In an often-cited article, New house estimates the impact of medical technology on health care spending by first estimating the impact of factors that can reasonably be accounted for (e. g. , spread of insurance, increasing per capita income, aging of the population, supplier-induced demand, low medical sector productivity gains). The continuing flow of new medical technology results from other factors including the desire by professionals to find better ways to treat their patients and the level of investment in b asic science and research.Direct providers of care may incorporate new technology because they want to improve the care they offer their patients, but they also may feel the need to offer the â€Å"latest and best† as they compete with other providers for patients. Health care professionals, like people in other occupations, also may be motivated by professional goals (e. g. , peer recognition, tenure, prestige) to find ways to improve practice. Commercial interests (such as pharmaceutical companies and medical device makers) are willing to invest large amounts in research and evelopment because they have found strong consumer interest in, and financial reimbursement for, many of the new products they produce. In addition, public and private investments in basic science research lead directly and indirectly to advancements in medical practice; these investments in basic science are not necessarily motivated by an interest in creating new products but by the desire to increase human understanding. Industry Life Cycle Life cycle models are not just a phenomenon of the life sciences. Industries experience a similar cycle of life.Just as a person is born, grows, matures, and eventually experiences decline and ultimately death, so too do industries. The stages are the same for all industries, yet industries cycle through the stages in various lengths of time. Even within the same industry, various firms may be at different life cycle stages. Strategies of a firm as well as of competitors vary depending on the stage of the life cycle. Some industries even find new uses for declining products, thus extending the life cycle. Others send products abroad in hopes of extending their life. The growth of an industry's sales over time is used to chart the life cycle.The distinct stages of an industry life cycle are: introduction, growth, maturity, and decline. Sales typically begin slowly at the introduction phase, and then take off rapidly during the growth phase. A fter leveling out at maturity, sales then begin a gradual decline. In contrast, profits generally continue to increase throughout the life cycle, as companies in an industry take advantage of expertise and economies of scale and scope to reduce unit costs over time. Industry life cycle has five stages : * Pioneering development * Rapidly accelerating industry growth Mature industry growth * Stabilization and market maturity * Deceleration of growth and decline Our pharmaceutical industry in Bangladesh is in Rapidly Accelerating Industry Growth Stage in industry life cycle. * Rapidly accelerating industry growth This stage starts when the product of the industry is accepted by the market. Further demand increases rapidly. The number of firms in the industry is limited at this stage and hence the firms can experience substantial backlogs of orders. Hence prices can be increased or discounts can be decreased and therefore profit margins are high.The capacity utilization goes up and eve n though productive capacity is increased, sales increase more rapidly. Hence high profit margins occur simultaneously with high sales growth. Profits explode. Sales growth can be high up to even 50 percent year and profits can grow over 100 percent a year as a result of the low earnings base and high profit margins and increasing efficiency of the firms. The growth potential of pharmaceutical industry is enormous. As urban population is increasing and people are getting educated, they are now more concerned about healthcare.So the demands of medical products are rising. In Bangladesh unhygienic conditions and poor health maintenance plans provide vast scope for the pharmaceutical firms to sell their products. On the other hand, the constant natural disasters provide opportunities to pharmaceutical companies to boost its sales. The industry is growing the protection of national Drug Policy 1982. But after the GATT regulation, changes are bound to take place. Furthermore, the trend & growth of this industry tends to be positive as the demand of medicines is rising, which have mentioned earlier.Analysis of Industry Competition Competition and Expected Industry Returns, Porter’s concept of competitive strategy is described as the search by a firm for a favorable competitive position in an industry * To create a profitable competitive strategy, a firm must first examine the basic competitive structure of its industry * The potential profitability of a firm is heavily influenced by the profitability of its industry * Porter's five forces Porter's five forces is a framework for the industry analysis and business strategy development developed by Michael E.Porter of Harvard Business School in 1979. It uses concepts developing, Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An â€Å"unattr active† industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching â€Å"pure competition†. For our pharmaceutical Industry Competition we use porters five forces model in the below: Threats of new entrants is low because- Capital requirement is high. * Hard to have access to the distribution channels of excising companies. Bargaining power of buyer is low because- * Undifferentiated or standard product offering competitive price * No potential threats of backward integration by buyer * Customers are fewer prices sensitive. Bargaining power of supplier is high because- * There is little number of suppliers who regulate the market according to their own association. * Lack of substitute product (raw materials) * Credible threats of forward integration by suppliers Threats of substitute are low because- There is minimum substitute product such as herbal products. Industry rivalry is high because- * The market is large. * Industry is growing at a slow rate and yet to attain its best so supply gap is evident. * Fixed costs are high which make it hard for exiting from the market. * Strong capital based and technologically company is in operation and grabbing major market shares. Growth & Trends: The growth potential of pharmaceutical industry is enormous. As urban population is increasing and people are getting educated, they are now more concerned about healthcare.So the demands of medical products are rising. In Bangladesh unhygienic conditions and poor health maintenance plans provide vast scope for the pharmaceutical firms to sell their products. On the other hand, the constant natural disasters provide opportunities to pharmaceutical companies to boost its sales. The industry is growing the protection of national Drug Policy 1982. But after the GATT regulation, changes are bound to take place. Furthermore, the trend & growth of this industry tends to be positive a s the demand of medicines is rising, which have mentioned earlier.Company Analysis Libara Infution Ltd Libra Infusions Ltd – At a Glance Board of Directors: †¢Ã‚  Begum Shamsun Nahar Ahsanullah – Chairperson | | †¢Ã‚  Dr. Roushon Alam – Director & Founder | | †¢ Begum Ayesha Alam – Managing Director| | †¢ Saira Mariam Alam – Director| | †¢ Monami Alam – Director| | Company Secretary: †¢Ã‚  M. A. Rashid | | Auditors: M/s. Muhammad Shaheeddullah & Co. | | Chartered Accountants | | 19 Bangabandhu Avenue | | Dhaka House (2nd Floor)| | Dhaka-1000. | | Bankers: Agrani Bank | Amin Court Branch | 62-63 Motijheel C/A, | Company ProfileThere was always a scarcity of Intravenous (I. V. ) Fluid in the market as Govt. could not manufacture enough to fulfill the local demand. Before 1985, the major portion of the local demand was being covered by the imported I. V. Fluid. To overcome this situation LIBRA made its debut in Feb ruary 1985 under the strong leadership of Dr. Roushon Alam with a view to provide quality products. The company is situated on approx. 2 acres of land at Mirpur I/E, Dhaka . The factory is housed in a centrally Air Conditioning modern building having all necessary facilities. I. V.Fluid, the product of the company is a life saving and a basic medical necessity used in all medical situations involving diarrhoeal disease, surgical operation, loss of blood, weakness and hospitalization in general. LIBRA's I. V. Fluid being a quality product has a tremendous demand in the market. The technology has been supplied by M/S Vifor S. A. , Geneva , Switzerland under a Technical Collaboration Agreement. In addition, implementation of ISO 9001 Quality Management System has ensured customer satisfaction by guaranteeing good design, reliable product quality, safe performance, prompt delivery and efficient service.LIBRA employed a team of highly qualified and motivated staff. Since LIBRA came first in this segment of pharmaceuticals, the company had to struggle with a lot of adverse situations. But today, LIBRA is known to the medical profession and general public as the best and largest manufacturer of I. V. Fluid in Bangladesh. Quality Policy | We at â€Å"LIBRA† are committed to provide total customer satisfaction for all products formulated ; processed. This is achieved by: †¢ Implementing defined quality management system Continuous up gradation of technology †¢ Creating quality awareness ;active participation of   Ã‚  Ã‚  employees at all levels | | Manufacturing Technology | Libra always uses modern technology for manufacturing I. V. Fluid a life saving product. The production is based on imported raw ; packing materials our Quality Assurance System ensure full quality control testing in accordance with product requirements Technical support including LAL test, validation and stability studies are available as a part of our commitment to quality. | | Human Resource |Libra has a experienced dedicated staff members which included pharmacists, chemists, doctors, engineers, accountants and other professionals. Libra’s success depends on sincerity, hard labor and team efforts of employees at all levels. Libra invests in personal and professional development of its employees through training and workshop. | Vision  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   All of our activities should benefit the society to take health care. We strongly believe that in the final analysis we are accountable to our employees, our customers, citizen of our country and shareholders. | Mission To attain Vision will devote its resources to m manufacture world class products using modern technology. | | Commitment * Committed manufacturing world class Quality Products using modern technology. * Committed maintaining Quality Management System (QMS) through documentation of all ac tivities of the Company complying with International standard require ment of ISO 9001 through developing employees at all levels by regular training participation. *   Committed customer satisfaction through service upto their level of expectation. Libra reviews activities and performance of its operation to ensure compliance with commitment| SWOT Analysis: This section identifies the main strengths, weaknesses, opportunities, and threats associated with the Libra Pharmaceutical Company LTD. It involves monitoring the internal (strengths ; weaknesses) and external (opportunities ; threats) marketing environment. Strength The main strengths of Libra Pharmaceutical Co. LTD are: * Higher quality product with lower price. * Focused on the Customer’s satisfaction. * To meet the required specification it maintain the standard and quality. Using modern technology * To enrich the systems they appoint a huge experienced, motivated professionals * It is already been recognized by WH O and ISO 9001 certified as world class manufacturer of I. V. fluid. * To increased sales thy introduced new product every year. * To ensure high quality control facilities they has installed state of art equipment. * The company continuously focusing on expanding sales networks to meet the demand. Weakness The main weaknesses of Libra Pharmaceutical Co. LTD are: * High risk of facing losses, in case of purchasing raw materials in advance, as price is unstable. They can not increase the selling price as the cost of product increased. * Supplier has ultimate control over the material market * Government initiative or incentive in this sector is very insufficient. * The increase of bank interest rate. * The cot of fuel and oil, promotional expenses, transportation expenses are increasing day by day. * Law and order restrictions are quit alarming. Broad environmental analysis Competitive analysis Internal organizational analysis Strengths ; weaknesses of an organization Opportunities f or ; to an organization Need for strategic actionOrganizational long-range objectives Opportunities: The main opportunities faced by Libra Pharmaceutical Co. LTD are: * Company can introduced new product line or improved quality product. * Available customers. * Demand is huge and increasing day by day. * Profit percentage is high. * Company can invest their rest of retain earnings in other projects. * International trading scope is increasing specially in Middle East. * Expand their activities to the root level of the county Threats: The main threats faced by Libra Pharmaceutical Co. LTD are: * Change in technology (i. e. quipments, sharing and cutting machine change). * Threat of new entrance. * Political unrest. * Labor problem * Increasing Tax rate * Increasing cost of product * Increasing bank interest rate * Lower competitive power Market Condition Libra Infusions Ltd Price Change % Change Open High Low Business Segment LIBRAINFU Financial Performance Year| Earning per share | Net Asset Value Per Share   | Net Profit After Tax (mn)  | Price Earning Ratio   | % Dividend   | % Dividend Yield   | 2009| 34. 93  | 689. 13  | 4. 37  | 45. 81  | 15. 00  | 0. 94| 2008| 51. 25  | 671. 70  | 6. 41  | 28. 24  | 17. 50  | 1. 1| 2007| 48. 14  | 637. 95  | 6. 02  | 11. 00  | 17. 50  | 3. 3| 2006| 47. 36  | 589. 81  | 5. 93  | 10. 20  | 17. 50  | 4| 2005| 45. 46  | 559. 94  | 5. 69  | 12. 34  | 17. 50  | 3. 12| 2004| 43. 30  | 531. 99  | 5. 42  | 14. 81  | 17. 50  | 2. 73| 2003| 36. 33  | 550. 38  | 4. 55  | 8. 08  | 15. 00  | 5. 11| 2002| 30. 36  | 530. 55  | 3. 80  | 11. 20  | 15. 00  | 4. 41| 2001| 21. 82  | 515. 18  | . 73  | 10. 08  | 12. 50  | 5. 68| 2000| 18. 42  | 510. 86  | 2. 30  | 10. 59  | 5. 00  | 2. 56| Analysis of Financial Statement Of Libra Infusion Common-Size Statement Analysis: Common-Size Statement of Balance SheetLIBRA INFUSIONS LTD partic ular| 2007(tk in %)| 2008(tk in %)| 2009(tk in %)| Assets| Non-current assets| 62. 87| 64. 12| 66. 66| Property, plant and equipmentAt cost/ Revaluation| 96. 64| 97. 43| 91. 78| Accumulated deprecation| (33. 77)| (33. 31)| (25. 12)| Current Assets| 37. 14| 35. 89| 33. 34| Inventories| 18. 57| 17. 59| 19. 17| Account Receivables| 7. 50| 5. 68| 7. 06| Loans , Advance and Deposits| 9. 46| 10. 51| 5. 31| Cash and Cash Equivalents| 1. 61| 2. 11| 1. 80| Total Assets| 100%| 100%| 100%| Share holders Equity| 27. 97| 27. 50| 20. 31| Share Capital| 4. 38| 4. 19| 2. 95|General Revenue| -| 1. 31| 0. 94| Revaluation Reserve| 13. 03| 12. 17| 8. 76| Retain Earnings| 10. 55| 9. 93| 7. 66| Non-Current Liabilities| 26. 40| 29. 75| 31. 37| Term Borrowings| 11. 68| 14. 73| 20. 96| Due to-directors| 7. 55| 7. 97| 5. 03| Other Liabilities| 7. 17| 7. 05| 5. 38| Current Liabilities| 45. 63| 42. 74| 48. 32| Shot term Borrowing| 32. 62| 27. 53| 37. 65| Creditors and others payable| 9. 90| 11. 51| 8. 97| Taxa tion Payable| 3. 11| 3. 70| 1. 70| Total Liabilities and Shareholders Equity| 100%| 100%| 100%| LIBRA INFUSIONS LTD Common-Size Statement of Profit and Loss AccountParticular| 2007| 2008| 2009| Net Sales RevenueCost of Goods SoldGross ProfitOperating ExpensesAdministrative Exp. Selling, Marketing ; Distribution ExpProfit from OperationFinance Cost. NP before Contribution to WPPFWelfare fundsProfit Before TaxProvision for Income TaxNP After Income Tax| 100%(64. 91%)35. 08%(26. 96%) (3. 64%)(23. 32%)| 8. 12%(5. 22%)2. 90%(0. 13%)2. 77%(0. 82%)1. 95%| 100%(67. 01%)32. 99%(26. 15%) (3. 05%)(23. 10%)| 6. 84%(4. 59%)2. 25%(0. 11%)2. 14%(0. 58%)1. 56%| 100%(63. 64%)36. 36%(28. 75%) (3. 38%)(25. 37%)| 7. 61%(5. 88%)1. 73%(0. 09%)1. 64%(0. 45%)1. 19%| Ratio Analysis:A: Internal Liquidity Ratios| Liquidity refers to the ability of a firm to meet its short-term financial obligations when and as they fall due. The main concern of liquidity ratio is to measure the ability of the firms to meet th eir short-term maturing obligations. Failure to do this will result in the total failure of the business, as it would be forced into liquidation. Current Ratio The Current Ratio expresses the relationship between the firm’s current assets and its current liabilities. Current assets normally include cash, marketable securities, accounts receivable and inventories.Current liabilities consist of accounts payable, short term notes payable, short-term loans, current maturities of long term debt, accrued income taxes and other accrued expenses (wages). 2007| 2008| 2009| .79| 1. 50| 1. 41| Comments: 2007: The current ratio of . 79:1 means that for every taka of current liabilities Libra Infusions Ltd. has . 79 taka of current assets, which is unacceptable comparing to the standard 2:1. 2008: The current ratio of 1. 50:1 means that for every taka of current liabilities Libra Infusions Ltd. has 1. 50 taka of current assets, which is unacceptable comparing to the standard 2:1. 009: The current ratio of 1. 41:1 means that for every taka of current liabilities Libra Infusions Ltd. has 1. 41 taka of current assets, which is unacceptable comparing to the standard 2:1. Quick Ratio/ Acid Test Ratio Measures assets that are quickly converted into cash and they are compared with current liabilities. This ratio realizes that some of current assets are not easily convertible to cash e. g. inventories. The quick ratio, also referred to as acid test ratio, examines the ability of the business to cover its short-term obligations from its â€Å"quick† assets only (i. . it ignores stock). The quick ratio is calculated as follows Ouicke Ratio=(Cash+Marketable securites+Recivables)/ Current Libilities 2007| 2008| 2009| .20| . 18| . 18| Comment: 2007: The quick ratio in 2007 of Libra Infusions was . 20:1 which is unacceptable for the company o comparing the standard of 1:1 2008: The quick ratio in 2007 of Libra Infusions was . 18:1 which is unacceptable for the company o co mparing the standard of 1:1 2009: The quick ratio in 2007 of Libra Infusions was . 18:1 which is unacceptable for the company o comparing the standard of 1:1 Cash ratio:The most conservative liquidity ratio is the cash ratio, which related the firm’s cash and short-term marketable securities to its current liabilities as follows: Ouicke Ratio=(Cash+Marketable securites)/ Current Libilities 2007| 2008| 2009| .035| . 049| . 037| Receivable Turnover: This ratio shows the number of times accounts receivable are paid and reestablished during the accounting period. The higher the turnover, the faster the business is collecting its receivables and the more cash the client generally has on hand. The formula is: Net Annual SalesAccounts Receivable 2007| 2008| 2009| 16. 86| 21. 86| 15. 2| Average Receivable Collection Period The average collection period measures the quality of debtors since it indicates the speed of their collection. The shorter the average collection period, the bett er the quality of debtors, as a short collection period implies the prompt payment by debtors. The average collection period should be compared against the firm’s credit terms and policy to judge its credit and collection efficiency. An excessively long collection period implies a very liberal and inefficient credit and collection performance. The delay in collection of cash impairs the firm’s liquidity.On the other hand, too low a collection period is not necessarily favorable, rather it may indicate a very restrictive credit and collection policy which may curtail sales and hence adversely affect profit. The calculation is follow: Average Receivable Collection Period = (365/ average account receivable turnover) 2007| 2008| 2009| 21. 65| 17. 10| 23. 51| Comment: 2007: Average collection period of Libra Infusions Ltd. in 2007 was 21. 65 days. That means the company had to wait 21. 65 days after making a sales before it receives cash. This is comparatively lower than th e industry average of 45. 5 days. That means the customers are paying their bill in time. 2008: Average collection period of Libra Infusions Ltd. in 2007 was 17. 10 days. That means the company had to wait 17. 10 days after making a sales before it receives cash. This is comparatively lower than the industry average of 45. 45 days. That means the customers are paying their bill in time. 2009: Average collection period of Libra Infusions Ltd. in 2007 was 23. 51 days. That means the company had to wait 23. 51 days after making a sales before it receives cash. This is comparatively lower than the industry average of 45. 5 days. That means the customers are paying their bill in time. Inventory Turnover This ratio measures the stock in relation to turnover in order to determine how often the stock turns over in the business. It indicates the efficiency of the firm in selling its product. It is calculated by dividing the cost of goods sold by the average inventory. The ratio shows a relat ively high stock turnover which would seem to suggest that the business deals in fast moving consumer goods. 2007| 2008| 2009| 5. 65| 5. 16| 2. 87| Comment: 2007: Inventory turnover ratio of Libra Infusions Ltd. in 2007 was 5. 5 which are comparatively higher than the industry average 1. 26. That mean the company have maintained liquidity of its inventory and I is productive. 2008: Inventory turnover ratio of Libra Infusions Ltd. in 2007 was 5. 16 which are comparatively higher than the industry average 1. 26. That mean the company have maintained liquidity of its inventory and I is productive. 2009: Inventory turnover ratio of Libra Infusions Ltd. in 2007 was 2. 87 which are comparatively higher than the industry average 1. 26. That mean the company have maintained liquidity of its inventory and I is productive.Cash Conversion Cycle The Cash Conversion Cycle (CCC) measures how long a firm will be deprived of cash if it increases its investment in resources in order to expand custom er sales. It is thus a measure of the liquidity risk entailed by growth. However, shortening the CCC creates its own risks: while a firm could even achieve a negative CCC by collecting from customers before paying suppliers, a policy of strict collections and lax payments is not always sustainable. Payable Turnover= COGS/Average Trade Payable 2007| 2008| 2009| 12. 91| 14. 99| 10. 03| Payable Payment periodA payment period to average inventory period above 1:1 (100%) indicates that the inventory is sold before it is paid for (inventory does not need to be financed). the average inventory period is also known as the inventory holding period. . Payable payment period = 365 day / payable turnover 2007| 2008| 2009| 28. 27| 24. 35| 36. 16| B. Evaluating operational Performance| The ratios that indicate how well the management is operating the business can be divided into tow subcategories: * Operation Efficiency Ratio * Operation Profitability Ratio These two ratios are discussed in the b elow:- * Operation Efficiency Ratio Total Assets TurnoverAsset turnover is the relationship between sales and assets:- * The firm should manage its assets efficiently to maximize sales. * The total asset turnover indicates the efficiency with which the firm uses all its assets to generate sales. * It is calculated by dividing the firm’s sales by its total assets. * Generally, the higher the firm’s total asset turnover, the more efficiently its assets have been utilized. Total asset turnover = Net Sales / Total assets 2007| 2008| 2009| 1. 17| 1. 39| 1. 01| Comments 2007: Total assets turnover ratio of Libra Infusions Ld. In 2007 was 1. 17, which is higher than the industry average of 1. 5. That means the company is generating sufficient level of business. 2008: Total assets turnover ratio of Libra Infusions Ld. In 2007 was 1. 39, which is higher than the industry average of 1. 15. That means the company is generating sufficient level of business. 2009: Total assets turn over ratio of Libra Infusions Ld. In 2007 was 1. 01, which is lower than the industry average of 1. 15. That means the company is not generating sufficient level of business. Fixed Asset Turnover The fixed assets turnover ratio measures the efficiency with which the firm has been using its fixed assets to generate sales.Generally, high fixed assets turnovers are preferred since they indicate a better efficiency in fixed assets utilization. It is calculated by dividing the firm’s sales by its net fixed assets as follows: Fixed asset turnover = Net Sales / Average Net fixed asset 2007| 2008| 2009| 3. 90| 4. 92| 4. 26| Comments: 2007: Fixed assets turnover ratio f Libra Infusions Ltd. in 2007 was 3. 90, which is higher than the industry average of 3. 06. That means the company is generating sufficient level of business. 2008: Fixed assets turnover ratio f Libra Infusions Ltd. in 2007 was 4. 2, which is higher than the industry average of 3. 06. That means the company is generati ng sufficient level of business. 2009: Fixed assets turnover ratio f Libra Infusions Ltd. in 2007 was 4. 26, which is higher than the industry average of 3. 06. That means the company is generating sufficient level of business. Equity Turnover Equity Turnover is a firm's annual sales divided by its average stockholders' equity. Equity turnover is used to calculate the rate of return on common equity, and is a measure of how well a firm uses its stockholders' equity to generate revenue.The higher the ratio is, the more efficiently a firm is using its capital. Also known as capital turnover. Equity Turnover = Annual Sales / Average Equity 2007| 2008| 2009| 4. 05| 5. 05| 4. 31| Comments: 2007: Equity turnover ratio of Libra Infusions Ltd. In 2007 was 4. 05. Which is lower than the industry average of 6. 88. that means the company not efficiently using its capital. 2008: Equity turnover ratio of Libra Infusions Ltd. In 2007 was 5. 05. Which is lower than the industry average of 6. 88. t hat means the company not efficiently using its capital. 009: Equity turnover ratio of Libra Infusions Ltd. In 2007 was 4. 31 which is lower than the industry average of 6. 88. that means the company not efficiently using its capital. * Operation Profitability Ratio Gross Profit Margin * Normally the gross profit has to rise proportionately with sales. * It can also be useful to compare the gross profit margin across similar businesses although there will often be good reasons for any disparity. Gross profit Margin=Gross profit/ Net Sales 2007| 2008| 2009| 35. 09%| 35. 36| 32. 98%| Comments: 2007: Gross profit margin of Libra Infusions Ltd in 2007 is 35. 9% which is lower than the industry average 55. 75%. That means the firm is not profitable. 2008: Gross profit margin of Libra Infusions Ltd in 2007 is 35. 36% which is lower than the industry average 55. 75%. That means the firm is not profitable. 2009: Gross profit margin of Libra Infusions Ltd in 2007 is 32. 98% which is lower th an the industry average 55. 75%. That means the firm is not profitable Operating profit Margin ratio Analysis The operating profit margin indicates how much profit a company makes after paying for variable costs of production such as wages, raw materials, etc.It shows the efficiency of a company controlling the costs and expenses associated with its business operations. Operating profit margin = Operating income ? Net sales 2007| 2008| 2009| 8. 13%| 6. 84%| 7. 60%| Comments: 2007: Operating profit margin of Libra Infusions Ltd in 2007 is 8. 13% which is lower than the industry average 11. 02%. That means the firm is not satisfactory at all. 2008: Operating profit margin of Libra Infusions Ltd in 2007 is 6. 84% which is lower than the industry average 11. 02%. That means the firm is not satisfactory at all. 009: Operating profit margin of Libra Infusions Ltd in 2007 is 7. 60% which is lower than the industry average 11. 02%. That means the firm is not satisfactory at all. Net Profit Margin This is a widely used measure of performance and is comparable across companies in similar industries. The fact that a business works on a very low margin need not cause alarm because there are some sectors in the industry that work on a basis of high turnover and low margins, for examples supermarkets and motorcar dealers. What is more important in any trend is the margin and whether it compares well with similar businesses.Net profit Margin= Net Income/Net Sales 2007| 2008| 2009| 1. 93%| 1. 55%| 1. 19%| Comments: 2007: Net profit margin of Libra Infusions Ltd in 2007 is 1. 93% which is lower than the industry average 8. 30%. That means the firm is not profitable. 2008: Net profit margin of Libra Infusions Ltd in 2007 is 1. 55% which is lower than the industry average 8. 30%. That means the firm is not profitable. 2009: Net profit margin of Libra Infusions Ltd in 2007 is 1. 19% which is lower than the industry average 8. 30%. That means the firm is not profitable. Return on paid up capitalThis ratio shows the profit attributable to the amount invested by the owners of the business. It also shows potential investors into the business what they might hope to receive as a return. The stockholders’ equity includes share capital, share premium, distributable and non-distributable reserves. The ratio is calculated as follows: Return on paid up capital =Net Income+Gross InterestAverage Total Capital 2007| 2008| 2009| 48. 10| 51. 25| 34. 93| Risk Analysis of Libra Infusion: * Risk analysis examines the uncertainty of income for the firm and for an investor * Total firm risks can be decomposed into two basic sources: Business risk: The uncertainty in a firm’s operating income, highly influenced by industry factors * Financial risk: The added uncertainty in a firm’s net income resulting from a firm’s financing decisions (primarily through employing leverage). * liquidity Risk : it considers another aspect of risk from an investor†™s Business Risk Variability of the firm’s operating income over time. It can be measured by calculating the standard deviation of operating income over time or the coefficient of variation. In addition to measuring business risk, we want to explain its determining factors.Two primary determinants of business risk: * Sales variability * The main determinant of earnings variability * Cost Variability and Operating leverage * Production has fixed and variable costs * Greater fixed production costs cause greater profit volatility with changes in sales * Fixed costs represent operating leverage Greater operating leverage is good when sales are high and increasing, but bad when sales fall. Business risk =( cofficient of variiation of operating earning) =( OE-OE)2/nOE/N ( OE-OE)2/n| 3636504| OE/N| 25498574| ( OE-OE)2/nOE/N| 14. 26%| Operating leverage= %? oe%? sn %? e%? s| 2. 08739| n| 3| %? oe%? sn| . 70| Financial Risk Interest payments are deducted before we get to net income, these are fixed obligations. Similar to fixed production costs, these lead to larger earnings during good times, and lower earnings during a business decline, fixed financing costs are called financial leverage. The use of debt financing increases financial risk and possibility of default while increasing profitability when sales are high. Two sets of financial ratios help measure financial risk * Balance sheet ratios * Earnings or cash flow available to pay fixed financial chargesAcceptable levels of financial risk depend on business risk. A firm with considerable business risk should likely avoid lots of debt financing. * Proportion of debt (balance sheet) ratios: Long-term debt can be related to Equity (L-t D/Equity) how much debt does the firm employ in relation to its use of equity? And Total Capital [L-t D/ (L-t D +Equity)] How much debt does the firm employ in relation to all long-term sources of funds? Debt to Equity Ratio =Total long term debttotal eqity 2007| 2008| 2009| .94| 1. 08| 1. 54| * Total debt Ratio : Total debt ratio refers to Assessment of overall debt load, including short-term.The formula of calculation is: Debt to Equity Ratio =current Liabilities+Total Long term debtTotal Debt-Total equity 2007| 2008| 2009| .720| . 725| . 975| Comments: 2007: We analyze debt ratio of company from its balance sheet and found that year 2007 company’s debt ratio is 72% this value indicates that the company has financed more than half of is assets with debt. The higher this ratio greater he firms degree of indebtedness and the more finance leverage it has. 2008: We analyze debt ratio of company from its balance sheet and found that year 2007 company’s debt ratio is 72. % this value indicates that the company has financed more than half of is assets with debt. The higher this ratio greater he firms degree of indebtedness and the more finance leverage it has 2009: We analyze debt ratio of company from its balance sheet and found that year 2007 company’s debt ratio is 97. 5% this value indicates that the company has financed more than half of is assets with debt. The higher this ratio greater he firms degree of indebtedness and the more finance leverage it has. * Earnings or Cash Flow Ratios It is Relate operating income (EBIT) to fixed payments required from debt obligations, higher ratio means lower risk.Interest Coverage or Times Interest Earned Ratio Measures the number of times Interest payments are â€Å"covered† by EBIT Interest Coverage = EBIT/Interest Expense. May also want to calculated coverage ratios that reflect other fixed charges Lease obligations (Fixed charge coverage). Interest Coverage =EBITDebt Interest Change 2007| 2008| 2009| 1. 53| 1. 47| 1. 28| * Cash flow ratios Fixed financing costs such as interest payments must be paid in cash, so these ratios use cash flow rather than EBIT to assess the ability to meet these obligations, Relate the flow of cash available from operations to: * Int erest expense Total fixed charges * The face value of outstanding debt Cash flow coverage of fixed financial cost=Net cash flow provided by operating activities+Interest Expense+Estimated Lease Inertest ExpenseInertest Expense+Estimated lease Interest expense 2007| 2008| 2009| 1. 51| 2. 49| 2. 29| Comments: Cash flow is used o determine whether a borrower is going to be able to service interest payment on a loan. Generally lender prefers a cash flow ratio more than 1. Here we can see that the cash flow ratio of Libra Infusion Ltd. in 2007 was 1. 51 and it increases 2. 9 in 2008. and decrease in 2009 at 2. 29. Liquidity Risk Market Liquidity is the ability to buy or sell an asset quickly with little price change from a prior transaction assuming no new information. External market liquidity is a source of risk to investors. The most important factor of external market liquidity is the dollar value of shares traded. This can be estimated from the total market value of outstanding secu rities. It will be affected by the number of security owners. Numerous buyers and sellers provide liquidity. Analysis of Growth Potential:Want to determine sustainable growth potential Important to both creditors and owners, * Creditors interested in ability to pay future obligations, * For owners, the value of a firm depends on its future growth in earnings, cash flow, and dividends. Determinants of Growth * Sustainable Growth Model: Suggests that the sustainable growth rate is a function of two variables: * What is the rate of return on equity (which gives the maximum possible growth)? * How much of that growth is put to work through earnings retention (rather than being paid out in dividends)? g = Percentage of Retain earning * Return on Equity|Formula: year| Percentage of Retain earning=1-Dividend DeclearedOperating earnig After Tax| ROE=Net Income After TaxShareholdres Equity| g = Percentage of Retain earning Return on Equity| 2007| . 64| 7. 55| 4. 83| 2008| . 66| 7. 57| 4. 50| 2009| . 57| 5. 10| 2. 91| DuPont Analysis DuPont Analysis is A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are measured at their gross book value rather than at net book value in order to produce a higher return on equity (ROE). It is also known as â€Å"DuPont identity†.DuPont analysis  tells us that ROE is affected by  three things: – Operating efficiency, which is  measured by profit margin – Asset use efficiency, which is measured by total asset turnover – Financial leverage, which is  measured by the equity multiplier year| EBIT/Sales (%)| Sales/ Total Assets (Times)| EBIT/ Total Assets (%)| Interest Expense/ Total Assets (%)| NBT/ Total Equity (%)| Total Assets/ Common Stock Equity (times)| NBT/ Common Stock Equity(%)| Tax Retention Rate| Return On Equity (ROE)| 2007| 8. 13| 1. 09| 8. 86| 5. 85| 3. 01| 3. 58| 1078| 0. 70| 7. 55| 2008| 6. 84| 1. 35| 9. 23| 6. 34| 2. 89| 3. 64| 10. 52| 0. 72| 7. 7| 2009| 7. 60| 0. 07| . 53| (. 89)| 1. 42| 4. 92| 6. 99| 0. 73| 5. 10| It is believed that measuring assets at gross book value removes the incentive to avoid investing in new assets. New asset avoidance can occur as financial accounting depreciation methods artificially produce lower ROEs in the initial years that an asset is placed into service. If ROE is unsatisfactory, the DuPont  analysis helps locate  the part of the business that  is underperforming. Comparative analysis Ratio| Formula| Years| IndustryAverage| Evaluation| | | 2007| 2008| 2009| | Cross Section| Time Series| Overall| Current Ratio| Current assets/ current liabilities| . 9| 1. 50| 1. 41| 1. 11| Poor| Ok| Ok| Quick Ratio| (Cash+Marketable securites+Recivables)/ Current Libilities| . 20| . 18| . 18| 0. 56| Poor| Poor| Poor| Cash ratio| Cash+Marketable securites)/ Current Libilities| . 035| . 049| . 037| 0. 12| Poor| Poor| Poor| Receivable turnover| Net Annual Sales/ Accounts Receiva ble| 16. 89| 21. 35| 15. 52| 13. 42| Good| Good| Good| Average Receivable Collection Period| 365/Average A/R collection period| 21. 65| 17. 10| 23. 51| 45. 45| Poor| Poor| Poor| Inventory Turnover| cost of goods sold /average inventory| 5. 65| 5. 16| 2. 87| 1. 6| Good| Good| Good| Cash Conversion Cycle | COGS/Average Tra

Human Trafficking in the Caribbean

The law is not effective in dealing with the problem of human trafficking. Discuss (using relevant International and Domestic law). According to the Trafficking in Persons Protocol, Human Trafficking is the recruitment, transportation, transfer, harbouring or receipt of persons, by threatening or using force, or any other form of coercion, abduction, fraud, deception, abuse of power or of a position of vulnerability; or giving or receiving payments or benefits to relieve the consent of a person having control over another person, for the purpose of exploitation.Human Trafficking is characterized by 1. The Act (What is done) 2. The Means (How it is done) 3. The Purpose (Why it is done) People may fall victim to Human Trafficking for many purposes. One common purpose is for prostitution. Sexual labour is identified as coerced labour. Other common purposes are for child labour and the sex trade. The Vatican has described Human Trafficking as being worse than slavery and has been describ ed as the â€Å"Silent Crime of the Caribbean†.Regional organizations such as the Association of Caribbean States, CARICOM and the Organization of American States have all expressed their displeasure at the rapid increase of human trafficking cases in the Caribbean. This growing practice impacts many nations across the world and the Caribbean has recently been drawn into what is being called a â€Å"global panic. † In the Caribbean the group causing the most concern in regards to Human Trafficking is Irregular Migrants – this includes the females transported to other locations (countries or regions) as commercial sex workers.The nature of the purpose can, without scholarly or legislative support, indicate that this is a violation of basic human rights. Caribbean governments are being asked to present an annual report to the US government outlining the steps they have taken and will take to challenge unregulated migration and forced labour, which are indicators o f human trafficking. The countries are ranked according to their compliance with US’ wishes and a country that does not rank well or refuses to present a report are threatened with economic sanctions.Jamaica is among some of the countries that have been negatively ranked. However, the US government believes that Jamaica has the will and potential to improve their third tier status. Most victims of human trafficking may find themselves in situations where they fall prey to both physical and emotional abuse. Oftentimes Caribbean women are lured to the US with false promises of employment and are then sold by trafficking gangs, to the highest bidders all over the US and Europe. Caribbean states are eager to remain in good moral standing on an international platform.Hence, concerns about human trafficking in the Caribbean have increased mainly due to the idea of female prostitution and the urgency to rescue and protect a woman’s sexual purity. Makes you think, doesnâ€℠¢t it? Do they actually care about these issues or do they care by extension of their international image? Human trafficking is generally practised in the Caribbean in an effort to supply a demand for cheap, unskilled labour (irregular immigrants) and for sex workers in the tourist industry (irregular migrants).Human trafficking is common in many regions which are overpopulated and have high unemployment and poverty rates. According to the IOM* Legal Review concerning trafficking in the Caribbean statue laws have been put in place for the prosecution of traffickers, the protection of trafficking victims and the prevention of trafficking activities. Outside of the US and Europe, many other countries do not have the resources to put in place extensive legislation to fight human trafficking. However, there are some laws that can offer help to curb trafficking activities.The Caribbean’s inability to compare favourably with the level of the US and Europe’s fight against hum an trafficking is due to many economic, social, and legal factors. Some such factors are * â€Å"Law enforcement including prosecution and sentencing which may also be as a result of often using outdated criminal codes with inadequate penalties, many of which have not been reformed since the countries gained their independence. † (IOM 2005) Most Caribbean nations do have the desire to eradicate human trafficking but the state of their economies paired with their pre-independence law enforcement techniques serve as a deterrent.Of all the countries that have made an effort to combat human trafficking, Guyana has been the most successful by drafting a bill to Parliament which includes life penalties for trafficking persons, and stiff penalties for other trafficking related activities. This bill covers every eventuality concerning human trafficking. Jamaica has also introduced the Child Care and Protection Act which stipulates a penalty of ten years for trafficking children and p rovides protection to child victims. The provision that covers trafficking states that: 10. (1) No person shall sell or participate in the trafficking of any child†24 This leaves the rest of us at the will of traffickers, don’t you think. Unless the victim is a child, there is simply no law to cover such an eventuality. There is no legislation that criminalizes trafficking in women and children; however elements of the crime are upheld in the criminal code. But considering that some instances of human trafficking is likely to be for sexual purposes, sexual offences law can help to prosecute criminals involved.Most Caribbean countries include in their constitutions a guaranteed freedom from forced labour and slavery. This guarantor dictates a fundamental right but does not include how it is to be implemented. This right is only enforceable against the state and not private individuals or entities, which means there is no provision for redress against actual traffickers. There are clearly inadequate provisions for victims of human trafficking, largely due to the limited resources that are available to implement these services.The â€Å"patchwork† criminal approach can continue to be used as a substitute for a better legislative system until concrete provisions are instituted to cover the eventualities of human trafficking. And even then it is recommended that the weak and inconsistent criminal laws are reformed. INTERNATIONAL LAWS AGAINST HUMAN TRAFFICKING 1. United Nations Convention against Transnational Organized Crime 2. United Nations Protocol to Prevent, Suppress, and Punish Trafficking in Persons, Especially Women and Children 3.United Nations Protocol against the Smuggling of Migrants by Land, Sea, and Air 4. United Nations Global Initiative to Fight Human Trafficking (UN. GIFT) 5. Universal Declaration of Human Rights (1948) 6. Coordinated Mekong Ministerial Initiative against Trafficking (COMMIT) * Coordinated by China, Laos, Thaila nd, Cambodia, Myanmar, and Vietnam 7. Caribbean Counter-Trafficking Model Legislation 8. Belize – Trafficking in Persons (Prohibition) Act, 2003 9. Guyana – Combatting of Trafficking in Persons Act 2005 Human Trafficking in the Caribbean The law is not effective in dealing with the problem of human trafficking. Discuss (using relevant International and Domestic law). According to the Trafficking in Persons Protocol, Human Trafficking is the recruitment, transportation, transfer, harbouring or receipt of persons, by threatening or using force, or any other form of coercion, abduction, fraud, deception, abuse of power or of a position of vulnerability; or giving or receiving payments or benefits to relieve the consent of a person having control over another person, for the purpose of exploitation.Human Trafficking is characterized by 1. The Act (What is done) 2. The Means (How it is done) 3. The Purpose (Why it is done) People may fall victim to Human Trafficking for many purposes. One common purpose is for prostitution. Sexual labour is identified as coerced labour. Other common purposes are for child labour and the sex trade. The Vatican has described Human Trafficking as being worse than slavery and has been describ ed as the â€Å"Silent Crime of the Caribbean†.Regional organizations such as the Association of Caribbean States, CARICOM and the Organization of American States have all expressed their displeasure at the rapid increase of human trafficking cases in the Caribbean. This growing practice impacts many nations across the world and the Caribbean has recently been drawn into what is being called a â€Å"global panic. † In the Caribbean the group causing the most concern in regards to Human Trafficking is Irregular Migrants – this includes the females transported to other locations (countries or regions) as commercial sex workers.The nature of the purpose can, without scholarly or legislative support, indicate that this is a violation of basic human rights. Caribbean governments are being asked to present an annual report to the US government outlining the steps they have taken and will take to challenge unregulated migration and forced labour, which are indicators o f human trafficking. The countries are ranked according to their compliance with US’ wishes and a country that does not rank well or refuses to present a report are threatened with economic sanctions.Jamaica is among some of the countries that have been negatively ranked. However, the US government believes that Jamaica has the will and potential to improve their third tier status. Most victims of human trafficking may find themselves in situations where they fall prey to both physical and emotional abuse. Oftentimes Caribbean women are lured to the US with false promises of employment and are then sold by trafficking gangs, to the highest bidders all over the US and Europe. Caribbean states are eager to remain in good moral standing on an international platform.Hence, concerns about human trafficking in the Caribbean have increased mainly due to the idea of female prostitution and the urgency to rescue and protect a woman’s sexual purity. Makes you think, doesnâ€℠¢t it? Do they actually care about these issues or do they care by extension of their international image? Human trafficking is generally practised in the Caribbean in an effort to supply a demand for cheap, unskilled labour (irregular immigrants) and for sex workers in the tourist industry (irregular migrants).Human trafficking is common in many regions which are overpopulated and have high unemployment and poverty rates. According to the IOM* Legal Review concerning trafficking in the Caribbean statue laws have been put in place for the prosecution of traffickers, the protection of trafficking victims and the prevention of trafficking activities. Outside of the US and Europe, many other countries do not have the resources to put in place extensive legislation to fight human trafficking. However, there are some laws that can offer help to curb trafficking activities.The Caribbean’s inability to compare favourably with the level of the US and Europe’s fight against hum an trafficking is due to many economic, social, and legal factors. Some such factors are * â€Å"Law enforcement including prosecution and sentencing which may also be as a result of often using outdated criminal codes with inadequate penalties, many of which have not been reformed since the countries gained their independence. † (IOM 2005) Most Caribbean nations do have the desire to eradicate human trafficking but the state of their economies paired with their pre-independence law enforcement techniques serve as a deterrent.Of all the countries that have made an effort to combat human trafficking, Guyana has been the most successful by drafting a bill to Parliament which includes life penalties for trafficking persons, and stiff penalties for other trafficking related activities. This bill covers every eventuality concerning human trafficking. Jamaica has also introduced the Child Care and Protection Act which stipulates a penalty of ten years for trafficking children and p rovides protection to child victims. The provision that covers trafficking states that: 10. (1) No person shall sell or participate in the trafficking of any child†24 This leaves the rest of us at the will of traffickers, don’t you think. Unless the victim is a child, there is simply no law to cover such an eventuality. There is no legislation that criminalizes trafficking in women and children; however elements of the crime are upheld in the criminal code. But considering that some instances of human trafficking is likely to be for sexual purposes, sexual offences law can help to prosecute criminals involved.Most Caribbean countries include in their constitutions a guaranteed freedom from forced labour and slavery. This guarantor dictates a fundamental right but does not include how it is to be implemented. This right is only enforceable against the state and not private individuals or entities, which means there is no provision for redress against actual traffickers. There are clearly inadequate provisions for victims of human trafficking, largely due to the limited resources that are available to implement these services.The â€Å"patchwork† criminal approach can continue to be used as a substitute for a better legislative system until concrete provisions are instituted to cover the eventualities of human trafficking. And even then it is recommended that the weak and inconsistent criminal laws are reformed. INTERNATIONAL LAWS AGAINST HUMAN TRAFFICKING 1. United Nations Convention against Transnational Organized Crime 2. United Nations Protocol to Prevent, Suppress, and Punish Trafficking in Persons, Especially Women and Children 3.United Nations Protocol against the Smuggling of Migrants by Land, Sea, and Air 4. United Nations Global Initiative to Fight Human Trafficking (UN. GIFT) 5. Universal Declaration of Human Rights (1948) 6. Coordinated Mekong Ministerial Initiative against Trafficking (COMMIT) * Coordinated by China, Laos, Thaila nd, Cambodia, Myanmar, and Vietnam 7. Caribbean Counter-Trafficking Model Legislation 8. Belize – Trafficking in Persons (Prohibition) Act, 2003 9. Guyana – Combatting of Trafficking in Persons Act 2005

The Army and the Organizational Structure

The Army and the organizational structure that makes it run on the surface is a simple one. It is a Hierarchal/ Chain of Command structure, the orders come from levels so far above those of us at my level that we receive them in the form of Fragmented Orders (FRAGOS), Warning Orders (WARNOS), Military Personnel Messages (MILPER Messages) or simple word of mouth from the First Sergeant or my Platoon Sergeant. These are the only two levels above me in a company. Outside of the company, there is only one additional rank other than that, and that is the Sergeant Major and he is the one that passes the information to the First Sergeant.From there, the messages or orders are passed down from me to my employees, or Sergeants and they handle the Soldiers in our ranks. If you look above the â€Å"inner circle† of a Battalion, then you start looking at â€Å"Big Army† or the Department of the Army and then eventually Department of the Defense and those decisions are ones that we have no control over (Walcott, C. E. , Warshaw, S. A. , & Wayne, S. J. 2001). We simply get the order, and execute, the movement of the order is a horizontal and vertical move of the order to ranks.This is the natural order of things and the problems occurs when a subordinate bypasses someone in the Chain of Command and goes directly to a member in the Chain of Command directly, and this can be either way horizontally, because then you start losing track of what that member of the team is doing, or what their level of knowledge of the plan is. (Tanguay, 2006) In a Tank Company, the first level of management that you will actually experience is the gunner. The lowest rank that he can be is a Corporal and is actually promotable waiting to be promoted to Sergeant.From there you have the Sergeant, and these are the Non-Commissioned Officers where the â€Å"metal meets the meat. † They have daily interactions with the employees, the Soldiers and they are responsible for the everyd ay well-being of these guys. The next level of management that you have is the Staff Sergeant and he is the Section Sergeant and runs two Gunners and four Soldiers. His job is to monitor the counseling, and ultimate progression of these personnel. Then you have the Platoon Sergeant who is a Sergeant First Class who is in charge of two Staff Sergeants, four Sergeants, eight junior enlisted soldiers and he monitors the platoon.Finally inside of the platoon you have the Platoon who is a 2nd or 1st Lieutenant who is the youngest officer in the military and is there to honestly learn from us and prepare for his further endeavors. Every Tank Company has three line platoons, with the same make up as listed above. The only addition to those personnel is that the company has a Headquarters Platoon which is made up of a Headquarters Platoon Sergeant who can be a Sergeant First Class or Staff Sergeant and the number of personnel inside of the HQ Platoon vary per company.However, inside this pl atoon, there are two additional tanks, and they are for the Company Commander and the Executive Officer and their crews. The First Sergeant runs the company from the enlisted side of the house and is in charge of all of the enlisted personnel and makes all of the decisions on that side. He is the highest ranking person in the company. The Company Commander is a Captain and all officers in the company answer to him. The final person is the executive officer who is a 1st Lieutenant who is waiting to go to Captains Career Course and get his own company.Decisions, simply flow down through the chain of command and arrive at whichever level you are at. The problem that is noted with the Chain of Command method is that the ability to make any meaningful decisions is diminished (Heathfield, 2013). The mission of the military is simple, to do whatever we are called upon to do by our country whenever and wherever we are sent to do it. Tankers are combat arms and our mission is to close with a nd destroy the enemy. However, in times such as now when there is no rapid deployment actively going on, it falls upon us to constantly train to be ready.While we may simply want to go forth and find the â€Å"bad guy† and destroy him that is not always what we are doing. In the Pacific, we are also a contingency force that is used for humanitarian missions and we have to constantly train for this mission. This means that we can go from training to go to Afghanistan one day and fight Taliban, to the next day going to the Philippines to help with a Tsunami disaster relief. It just depends on the mission that we receive and we are constantly on a two hour recall and we have to be prepared for it. The military is such a different job and it is not a job that is for everyone.Honestly it is more of a lifestyle than a job and it is something that you have to embrace or you will not be successful for any period of time. In this area of operations, adaptability is paramount because w e cannot guarantee where we will go at any time, we recently deployed some units to Afghanistan, while we are preparing to be ready to respond to anywhere in the Asia area of responsibility. To actually try and break it down into another type of organizational structure honestly would not work from a strategic or tactical point of view.

Ethics in Marketing Term Paper Example | Topics and Well Written Essays - 1500 words

Ethics in Marketing - Term Paper Example The necessity for ethics in marketing research is; thus quite evident. This paper will examine the issue of ethics in marketing research noting the significance of ethics in all processes involving marketing research. Ethical behavior is a vital component in marketing research since marketing research directly controls the realization of strategic decision making in businesses. Businesses rely on information, which marketing researchers provide, to make day to day decisions, which affect business operations in one way or another. Consequence of the significance of marketing research, trade associations constantly establish guidelines to ensure ethical behavior by marketing researchers (Murphy, Gene, Norman and Bowie 79). The American Marketing Association (AMA) provides a number of ethical norms to guide the conduct of marketing research. These include the following: 1. Honesty; ensuring that marketing researchers remain forthright and faithful in all their contacts with stakeholders such as clients. 2. Responsible behavior, which entails accepting the implications of researchers’ marketing strategies and decisions. 3. ... 6. Citizenship, which aims at fulfilling the legal, economic, societal and philanthropic responsibilities, which serve stakeholders in strategic ways. Marketing researchers have immense responsibilities when it comes to different stakeholders such as research respondents, the public, clients and researchers. Ethical decisions encompass a number of characteristics that ensure that marketing researchers uphold. Firstly, ethical decisions provide for the realization of long term effects on business situations. In addition, although a majority of ethical decisions are sometimes rather doubtful, they encompass a variety of alternatives, which enhance the opportunity for ethical marketing research decisions (Murphy, Gene, Norman and Bowie 99). The points of view inherent in ethical decisions are essentially either negative or positive. Lastly, the results of ethical decisions, which include negative or positive outcomes, are relatively unpredictable and uncertain. For members of the public , ethical concerns deal primarily with the methods used by marketing researchers in obtaining and reporting research outcomes. The public sometimes depends on the outcomes of marketing research for information regarding products. If marketing researchers provide distorted information, the public stands to lose by purchasing faulty or wrong products. Therefore, it is the shared responsibility of researchers and the public to deter the incident of misguiding and incomplete reporting and biased research. Incomplete reporting occurs when either a client or researcher fails to reveal complete research results. This unethical behavior is likely to take place when marketing researchers conceal negative information, which customers would find undesirable. A misleading environment

Brother from another mother Essay Example | Topics and Well Written Essays - 500 words

Brother from another mother - Essay Example It is like I now live in a dream. Before I met Keifer, I worked myself too hard to try and grasp any opportunity that was coming my way so as to succeed and have a good life just like anybody else. Being fresh from college with my ambitions down deep in my veins, I could never find that perfect opportunity that would help me change my life. I was broke and tired of living from hand to mouth. In my sleep, I used to dream of big things; having great wealth; a multi-billion dollar company and a mega yatch I used for my holidays. In my dreams I owned a piece of the world but in reality I was poorer than a church mouse. Keifer became a milestone for me the moment he stepped into my life and the life I had dreamt of owning a piece of the world, started to become a reality. First, he showed me a path that led me to my financial freedom that was basically my goal in life. He enabled me to achieve this by carefully selecting reading books and hundreds of magazines on financial matters and how to deal with the financial issues. This has not only ensured my financial freedom, but has also assisted me in running a business that he assisted me to start. Secondly, he ideally put me closer to God by ensuring that I have changed my thinking in terms of believing in God. He not only took me to church, but also introduced me to his pastor and I began attending the Church service every Sunday. This was unlike me; I never even used to get a hundred meters close to triangular shaped buildings with crosses on them. Lastly, Keifer helped me improve my relationships with other people and cultivate a good relationship with them. He struggled hard to make sure that I realized how terribly I could not control my anger and deal with stresses aspects in my life something that had major contributions to numerous failures in life. Truthfully, Keifer helped me restore a very important aspect in life, hope. Ever since he

E-goverment in angola Dissertation Example | Topics and Well Written Essays - 9500 words

E-goverment in angola - Dissertation Example One aspect of change is e-governance. Though existing literature has outlined the possibility of e-governance spiraling economic lives of citizens, little has been done to unravel understanding of the prospects, challenges, and practices of e-governance in improving literacy levels, championing the values of democracy, increasing economic transactions, and improving government administrative functions. This report seeks to explore the prospects of E-governance in Angola, assess the challenges facing implementation of e-governance, and ultimately establish best practices that have effectively promoted the governance in Angola. A survey will help gather qualitative data to be analyzed using descriptive statistics. The target population will be government departments, businesses, citizens, and government employees. This study will help guide the government of Angola to determine how e-governance has and will help in service delivery, know sections of the population not reached or utiliz ing the services and promote effective inter-ministerial or departmental communication in the nation of Angola. Table of Contents Abstract 2 Table of Contents 3 1.0 Introduction 5 2.0 Literature Review 6 2.2.1Government and Governance 7 2.2.2 E-Government and E-Governance 8 2.2.3 Components of E-Government 8 2.2.4 E-governance 9 2.3 E-Government in Angola 10 2.3.1 Overview of Angola 10 2.3.2 Demography 11 2.4.3 Telecommunications Infrastructure 14 2.4.4 Human Development (Human Index in Angola) 16 2.6 Opportunity 18 2.6.1 Quality of Public Services to Citizen 18 2.6.3 Encourage Use of ICT Africa 20 2.7.1 Angola: Country Profile 21 2.7.2 Demography 22 2.7.3 Economy 22 2.7.4 Governance 24 2.7.5 Description 26 2.7.6 Specific Objectives 27 3.1 Sample size 30 1.0 Introduction This study intends to analyze the role of e-governance in fostering democracy in Africa by critically assessing its contribution on the Angolan governance and how these aspects have contributed to effective service delivery and improved the standards of living of Angolan people. It outlines how to subdue the challenges of instituting e-governance and further inform the knowledge bank of the Angolan government on the current and new challenges likely to be faced in implementation. 1.1 Research Question To what extent has e-governance influenced democracy and good governance in Africa? 1.2 Objectives: 1. Explore the prospects of e-governance in Africa. 2. Assess the challenges facing implementation of e-governance in Africa. 3. Establish best practices that have effectively promoted democracy and good governance in Africa. 2.0 Literature Review 2. 1 Introduction In 1990s, the IMF imposed structural adjustment programs meant to ease Africa’s economic hardships and act as an avenue for developing good use of public resources and promotion of accountability by governments to citizens. In order to meet the donor demands and increased pressure by citizens to have their governments perform, Afr ican countries gradually began to appreciate the use of internet, PCs, mobile phones, and other gadgets to deliver government services online. E-government is taunted as the most efficient way of streamlining public sector reforms and citizen involvement in administration and governance of public affairs. Though the process of e-governance is highly admired, there are many challenges, facing its implementation.

Writing for Criminal Justice Administrators Essay - 1

Writing for Criminal Justice Administrators - Essay Example It generally extends the normal working days to beyond eight hours. However, it minimizes the number of consecutive days a person works to less than five, for instance, in a schedule of around three days of 12 hours or four days of ten hours. In this instance, it will be a schedule of three days of 12 hours. Compressed workweek is advantageous, for the employers it is for their advantage because it permits the extension of working hours and; thus, it also results in the reduction of expenses linked with start-up costs (starting operations). For the employees, it gives them fewer working days. These are among the many advantages that compressed workweeks offer both to the employer and to employee. It will be imperative if the 12-hour day work shift is adopted. This is concerning the meeting held on Thursday 14 February 2013 about the adoption of a 12-hour day work shift. Enough research has been done on the viability of the changes, and it is in our view that the changes be adopted. After consultation with various stakeholders in the company, we have found that the 12-hour work shift will work for the benefit of all of us. Therefore, it is our expectation that the management team will give us the necessary support and attention. We have gathered all the resources needed for the realization of the changes. Compressed workweek has become popular in most organizations because of its flexibility and other benefits. The 12-hour work shift schedule is the preferred choice by most employees. The schedule offers extraordinary coverage during the peak times. The popularity of the 12-hour work shift is attributed to the fact that it tends to provide more off-days and compress the workweek. The schedule also stimulates greater effort and increases the motivation of the workers. It is essential that the population characteristics of the worker be considered during the selection of the work schedules. The way

Auditing Essay Example | Topics and Well Written Essays - 1500 words

Auditing - Essay Example The auditor is responsible for collecting and evaluating the evidence in order to make an opinion on the financial position of a company. In the contemporary business world, various changes have been experienced as auditors embark on addressing the challenges that face them as professionals. Quality auditing by independent auditors is a vital aspect in that it ensures that capital markets are effectively working while at the same time public and investor’s interests are protected. This paper seeks to examine the changes in the auditing environment and the resulting challenges. Additionally, the paper will discuss key lessons that auditors can draw in order to capitalize on emerging opportunities. During the annual conference for American Accounting Association (AAA), the issue of auditing skepticism was noted as one of the key challenges that are faced in the field of auditing. According to the PCAOB, every audit who is focused at coming up with a fair view of the clients fina ncial position must emulate professional skepticism throughout their audit process. This implies that firstly, the auditor should portray a general duty of care during their duties. Secondly, professional skepticism entails having a questioning mind on the appropriateness of the audit evidence (James, 2013). Thirdly, it comprises of there key elements that includes mindset, actions and attributes. The three aspects must be emulated together in order to come up with a quality audit. One of the major issues that results to change in the audit are the skeptical judgments arrived at during the audit planning. This can be due to the variation in the level of skills as well as the expertise of the individuals involved in the process. Additionally, auditing may be affected by the judgments of other auditors who have undertaken an audit process of a particular company. Being a complex issue that is experienced by auditors during their duties, skepticism entails various fields such as theory , auditing literature, corporate governance, business models and ethics among others. As a result of complexity of the auditing process in some companies, there has been a continued increase in the audit deficiency during the inspection of the financial information and records (Charan, 2005). According to McKenna (2011), majority of these deficiencies are caused by lack of adequate professional skepticism. Auditing standard calls for emulation of professional skepticism if an audit sees the possibility of a significant misstatement that may be caused by a fraud activity. During their duties, auditors should exercise professional skepticism especially during the gathering of information and evaluating the evidence. This implies that even if the auditor beliefs that the management team is honest, the auditor should not be satisfied with less persuading information. Another major challenge facing the auditing profession is hindrance to maintain its significance in the capital markets. It is vital to note that auditing plays an essential role of advancing capital formation. Similarly, it is subject to changes in demand. The profession faces significant choices of how and when to meet these changes. Though just like other professions, auditing must be in line with the public needs and regulate capital markets; it is faced by various factors that limit it. One of these factors is the statutory franchise. In order to

Picasso's Les Demoiselles DAvignon and de Kooning's Woman Essay

Picasso's Les Demoiselles DAvignon and de Kooning's Woman - Essay Example The title refers to the so-called Maisons D`Avignon, â€Å"the houses of pleasure in Avignon Street in Barcelona†. The painting nevertheless faced rejection from his close friends and family, because of its nakedness and carnality. This art was a good example of the African influence on modern European art. Many art historians have noticed the striking resemblance between certain African mask style and the mask-like faces of the five women. African art was used in this context, either as visual evidence for the spread of cultural traits from innovative centers, or as evidence for the social evolution of cultures; from groups which were capable of natural representation, to those which had presumably graduated to the mastery of geometric stylization and abstract forms.Picasso had found a source for a new, non-naturalistic way of representing the world and it blocks the real features of a woman. In this art, a woman is a significant symbol; Picasso represents her as a desecrated icon already torn into bits, and reveals more of rock foundation of sexiest anti-human and celebrates the control of a woman by man.Willem De Kooning was a painter and sculptor of Dutch birth. He was a leading figure in the abstract expression. His work is characterized by an â€Å"inherent stylelessness, resulting from the constant parallel exploration of divergent themes and techniques† (Marter 44). For two years, he worked on his art the woman 1 (1950-52, in New York), â€Å"an image which has become a totem and icon of the times†.

Business Requirements-HR Essay Example | Topics and Well Written Essays - 1000 words

Business Requirements-HR - Essay Example The company, with the use of IS, can enable employees to be trained using virtual training centers and conferences. The quality assurance at different outlets is a major task to standardize as the teams are not the same in different places. Centralized quality standards and assurance procedures may help them to avoid any differences in the quality of products at different outlets. Using information systems to maintain a quality database containing standards and procedures for sharing among various quality teams will result in a centralized procedures and checks. Using the information systems, the information sharing has become easy and quick. The evaluations can be done online and the tabulation, analysis and consolidations can be done automatically at runtime . the management can now get instantaneous update of the evaluations and performance reports. Hiring and training are major aspects of any HR department. Hiring the right people is attributed to the information systems to a great extent as they allow a bigger reach to the potential candidates. The comprehensive online tests, interviews and testing features allow for a thorough test of abilities and potential of the candidates. This helps in getting better employees and a more efficient HR department. Trainings are also carried out using teleconferencing and virtual training rooms whereby a trainer in any location can be transmitted to anywhere in the world. The company can train all its employees remotely from one location to any place and at the same time allowing the participants to participate and interact with the trainer and other participants. This allows the trainer to carry out interactive exercise online. Payment correctly Payrolls are confidential and critical for the employer and the employees. Using efficient payroll mechanisms is vital for the coffee business. Payroll systems are an alternate to manual payment systems. They are efficient, reliable, fast and provides an easy to use payroll management. New policies, increments and changes in pay structure can all be easily incorporated into the system. Retaining and rewards programs Employee performance appraisal, rewards and incentives can be applied and handled using the HR module. This allows for a better and efficient integration of the incentive plans, monitoring and rewarding employees based on their performance and to keep them motivated. The current system does not cater to the needs of appraisals of employees based on their performance and routine feedback. Appraisals take too long to reach the relevant personnel as they require manual and physical transportation of documents. The results are then analyzed and communicated to relevant personnel. This creates a state of risk whereby a poorly rated employee may result in lost customers to the organization. With the implementation of the HR module of