Principles of Finance Essay Example | Topics and Well Written Essays - 1000 words

Principles of Finance - Essay Example Together, they help promote stability and balance in the behavior of governments and financial institutions through surveillance, financial, and technical assistance. Based on the summary in Table 1, $282.978 trillion was raised in Japan, the U.K., and the U.S. from 2001 to 2006 from IPOs, debt offerings, and mergers and acquisition activities throughout the world. Of this, the U.S. accounted for 26%, while the U.K. had 9.7% and Japan only 2.3%. The declines from 2001 to 2003 resulted from the dotcom bubble explosion and corporate scandals in the late 1990s until 2001, affecting investor confidence and the ability of firms to raise funds. However, the increasing amounts since then signify a steady recovery that continues to hold. The U.K. issues more equity than either the U.S. or Japan, the U.S. issues more debt securities than the other two countries and that in these three countries debt issues are greater than equity issues by an overwhelming factor of almost 280-to-1. What could explain these findings Figures 1 and 2 (IMF, 2006; BIS, 2006) show that most debt issues are from corporations, and that Japanese (101.7% debt-to-equity) and European (69.6% debt-to-equity) corporations have more debt than U.S. companies (43.1% debt-to-equity). This explains why Japan and the U.K. issued lower amounts of debt compared to the U.S. during the period. Second, debt yields are lower in Japan compared to the U.S. and the U.K., and while equity yields are higher in the U.S. than in the U.K. and Japan, debt returns (5 to 11%) are higher than equity returns (-33% to almost 0%) in all three countries, and interest rates are declining. This means debt is more attractive to issuers and investors than equities. For investors, debt returns are higher, so they would rather lend their funds. For companies, debt is also cheaper since the trend for interest rates is flat to declining. Therefore, investors and corporations both prefer debt over equity. Q2: Vodafone plc Case Analysis Vodafone plc (2006: 2-3) is a London-based telecommunications company with total turnover of 29.4 billion, assets of 127 billion, and over 170 million customers worldwide, making it the biggest telecoms firm in the world. With debt of 20.1 billion and stockholders' equity of 86.9 billion, it has a debt-to-equity ratio of 23%. Net debt is 17.3 billion after taking out cash and cash equivalents. Vodafone raises funds in various currencies by issuing debt securities because it has a good financial network in London, the world's financial center. The company's policy (Vodafone, 2006: 41) is to maintain the currency of debt and interest charges in proportion with expected future principal multi-currency cashflows, which explains why 113% of its net debt is in currencies other than sterling: 73% of debt is in Euro, 21% in Yen, 14% in US Dollars, and 5% in other

Principles and Practices of Management Behaviour

Principles and Practices of Management Behaviour An autocratic manager makes decisions without the consultation of others workers, rather serving as a dictator type in communicating orders because they like to be in control of situations. This style of management guides to work getting done on time because there are less people implicate in the decision making process. The problem with this style is that the staffs are going to eventually lost motivation to work. Paternalistic is a leadership style which is quite dictatorial, decisions are taken in the best interests of the workers. This style is known as consultative management. This process can take a bit longer as there are more voices to be heard. The other side of this style of management and leadership is that workers may feel that you do not value their opinion or are too rigid if after all of the feedback is received you go off and make the decision in your own without incorporating of their feedback. Democratic leadership implicates running a business on the basis on the majority of decisions. A democratic manager is willing to share work with the staff by relegate it to get the job done. Staffs love this type of management style in business because they feel involved and part of the process. In democratic style the job performance is probably to be better than in an autocratic setting. This style has close links with McGregors theory X and Y. All this styles have advantages and disadvantages such as: Autocratic styles advantages: quick decision making, effective when employing many low skilled workers; disadvantages: no two-way communication Paternalistic styles advantages: more two-way communication so motivating, workers feel their social needs are being met; disadvantages: slow down decision making, still quite a dictatorial style. Democratic style advantages: useful when complex decisions are required that needs specialist skills; disadvantages: mistakes or errors can be made if workers are not skilled enough. According to Chemers M.(1997) in his book An integrative theory of leadership, Leadership has been described as a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common emerged. Leadership is composing a group of people to achieve common goals. Leadership is important because help to maximise efficiently an organisation and also help the organisation to achieve the goals. Leadership characteristics are: Proactive vs. reactive (a leader is always thinking three steps ahead). Flexible/Adaptable (a good leader will adapt to new surrounding and situations, doing his/her best to adjust). A good communicator Respectful (treating others with respect will ultimately earn respect). Quiet confidence Enthusiastic (when a leader is motivated and excited about the cause people will be more inclined to follow). Open-minded (a leader work to consider all options when making decisions). Resourceful (a leader must to create access to information). Rewarding (an exceptional leader will recognize the efforts of others and reinforce those actions). Well educated (knowledge is power). Open to change (a leader will take into account all points of view and will be willing to change a policy, program, cultural tradition). Interested in feedback (view feedback as a gift to improve) Evaluative (evaluation of events and programs is essential for n organisations to improve or progress). A strong team Theory X and Y was write by Douglas McGregors Theory X leaders believe that: People should be controlled and directed and punished, if necessary, to put them in a real effort at work the workers want to avoid responsibility and has little ambition most of the workers dislike work Theory Y leaders believe that: working is as natural as play or rest for the average workers workers seek responsibility most of employees have creativity and imagination which may be helpful for organisations to achieve their goals The Hertzberg hygiene factors are: supervision, company policy, relationship with supervisor, relationship with peers, and relationship with subordinates, personal life working conditions, status, and security. Evaluate communication processes in selected businesses Communication is the activity of transfer information through the exchange of thoughts, messages, or information, as by speech, visuals, signals, writing, or behaviour. Communication is transmitting of information from one person to another. The importance of effective communication is immense in the world of business and in personal life. The communication process begins with the sender and ends with the receiver. The perfect guide toward achieving effective communication is the process of communication Most of us spend about 75 per cent of our hours awake communicating our knowledge, thoughts, and ideas to others people. Verbal communication refers to the use of sounds and language to relay a message. Effective verbal communication is dependent on number of factors and cannot be fully isolated from other important interpersonal skills such as non-verbal communication, listening skills and clarification. Non-verbal communication includes facial expression, eye contact, tone of voice, body posture and motions, positioning within groups. It may also include the way we wear our clothes or the silence we keep. Porters division of non-verbal communication: Physical (this is the personal type of communication); Aesthetic (this is the type of communication that takes place through creative expressions); Signs (this is the mechanical type of communication); Symbolic (type of communication that makes use of religious, status); Static features of non-verbal communication Distance Orientation (side to side, face to face) Posture (standing, seating, legs crossed) Physical contact (touching, holding and shaking hands) Dynamic features of non-verbal communication: Facial expressions (smile, raised eyebrow) Gestures (hand movement) Looking (eye contact) Communication styles: rational, emotive and intuitive Rational communication focuses on objective information data, encourages listening carefully to the ideas and focuses on facts and information, this communication is less comfortable with feeling discussions, in this types of communication prefers to take turns when talking, and there is less variation in tone or gestures. Emotive communication focuses on feelings and tends to be more people oriented and passionate, wide variation in tone and gesture, this type of communication can be interrupt while others are speaking, the same there are feelings in voice and regardless of volume, the decisions are announced in terms of how they will affect people. Intuitive communication is focuses on knowing that comes from experience, decisions are announced without justification, increased experience can lead to more rapid decision making. Communication styles change, depending on the situation and our goals and each of the communication style is used at some point in our lives. We can define top-down communication such as a method of issuing commands or orders within a business using a hierarchical structure. Top-down communication affords a companys managerial structure to control the information and protect that each employment level has necessary information to get done the tasks. The disadvantage of this communication is the risk of orders getting lost in translation; this can cause trouble in a companys project development. We can define bottom up communication such as trebuie sa caut informatie Formal communication is used in professional setting, in this types of communication slang is not use, pronounce of words is correctly. In informal communication we can use slang, can be used short version of words, this type of communication is used with friends and family. Analyse organisational culture and change in selected businesses Organisational culture mains the personality of the organisation, the way the things are done .Organisational culture refers to the fundamental values, beliefs and codes of practice that make a business. Culture according to Schein is A pattern of shared basic assumptions that a group learns as it solves problems. Culture organisation have an important role, the organisation that have strong cultures are capable of increasing revenue, profitability and shareholder value. The same organisation with strong culture finds it easy to change and adapt to market demands. Organisational culture is a focus on culture and process with specific encouragement of collaboration between leaders and members. It is a focus on the human and social side of the origination. Culture has three levels: The artefacts (behaviour of group members) Espoused values (how deal with issues and problems) Basic underlying assumptions Types of organisational culture are: power culture, role culture, task culture and person culture. Power culture depends on central force and a beam of influence from the central figure throughout the organisation, small entrepreneurial organisations. Role culture bureaucracy and works by logic and rationality, role is more important than individual, position is the main source of power. exemple tb sa caut Task culture job and project oriented organisation Personal culture, the individual is in the central focus, when a group of people decide that it is in their own interests to band together. For organisations that manage change effectively, change itself becomes the driving force that leads to future success and growth (Hamlin, Keep and Mullins and Christy,2011). Change is an inevitable and constant feature, an organisation can perform effectively only through interactions with the broader external environmental of which it is part. Factors that influence change in culture are such as: Economic conditions Government interventions Political interests Development in technology Globalisation Other forces of change could be: Demand for high quality goods Customer service Workforce changing nature The main pressure of change is from external forces. Planned change represents an international attempt to improve of the organisation. The objectives of change are: Improving the ability of the organisation Modifying the behavioural patterns of members of the organisationsa mai caut informative sau sa ma uit la handouts Organisational structure is a framework of order and command through which the activities of the organisation can be planned, directed and controlled. The structure defines tasks and responsibilities. Structure is important to any kind of organisation. The objectives of structure are: the economic and efficient performance, monitoring the activities, flexibility in order to respond to future demands. There are three types of organisational structure: Tall hierarchical( large organisation tend to have this type of structure, a tall structure have many different levels of employees all reporting at the top to team leaders and then up to operational management, also have a wide chain of command with narrow set of control. Disadvantage of this type of organisational structure can often lead to slower communication channels and decision-making. Flat hierarchical (is an organisational structure that has fewer layers of management and wider spans of control, this types of structure of organisation gives workers more responsibility for decision-making, and the also we have more motivated workforce. Advantage of this structure is that the business to change rapidly to respond to the market.) Matrix (is the combination of the flat structure with tall structure for the business in order to meet its goals. Matrix structure often is used for specific project). Change management is the set of tools, skills and the processes for managing the people leading to achieve the goals of organisation. LO2 Be able to review own potential as a prospective manager 2.1 Assess own management skills performance For managers to be effective, they must have good management skills. The management skills will ensure that he/she can effectively direct, guide, and delegate. The management skills pyramid: Level 1-this level is basic management skills and includes planning, organizing, directing and controlling. Level 2-build on training and couching, motivational, and employee involvement skills. Level 3-are more complex, developing management career and provides opportunities to advance. Most important management skills are: Project management skills (ability to plan, organize, budget and manage the resources); Time management skills (control of most valuable resource, delegate tasks in minimal time, creating schedules for day/week/month, allocating time according to the task at hand); Conflict management skills (skills to resolve the issue, negotiating and mediating); Self-management skills (ability to make decisions as needed, goals setting, prioritize, self-evaluation, self-motivation, positive attitude); Team management skills (delegate to your team, motivate your team, develop your team, communicate with team); Stress management skills (monitoring performance and behaviour, incorporating effective time management to prevent stress, motivation); People management skills (listening, be motivating and inspiring, handle conflict situations, ask questions that are insightful); Office management skills (storage data, monitor and evaluate the work process, accounting and marketing, budget development); Change management skills (talking to people, being real, be passionate, monitoring progress, critical thinking); The guide line for an effective CV is: Personal details: name, address, telephone number, email address, date of birth, nationality Personal statement, a two-three sentence overview with exceptional qualities and future plans Key skills and abilities Work experience with reverse chronological order(date, organisation name, responsibilities, achievements) Education with reverse chronological order( date, institution, achievements) Hobbies and interests

Atlas :: essays research papers

Atlas   Ã‚  Ã‚  Ã‚  Ã‚  In Greek Mythology, the Titans were a race of giants. Atlas was the strongest of all the titans. His father was titan Iapetus and his mother was the Sea Nymph Clymene. His brothers were Prometheus and Cronus. Atlas was the father of the Hesperides (Daughters of the Evening,) the Hyades, and the Pleiades. He was also the king of the legendary Atlantis. In etymology Atlas means “bearer'; or “endurer.'; An image of Atlas is a person with the world on his back. Also a book of maps is called an atlas.   Ã‚  Ã‚  Ã‚  Ã‚  Atlas played a major part in Greek Mythology. He was in the war with Titans against the gods (Olympians.) Atlas partnered with his brother Cronus in the war against Zeus. Atlas stormed the heavens and Zeus punished him. His punishment was to carry the earth, the heavens and the pillar that separates them on his back/shoulders for eternity. This punishment is Atlas’s role in The Odyssey. Hercules became involved with Atlas. Eurystheus, Hercules cousin, challenged Hercules to twelve Labors. The eleventh Labor was to retrieve the golden apples of the Hesperides. Hercules asked Atlas to help him obtain the Golden Apples. In return for Atlas’s help, Hercules took his burden from him while he retrieved the apples. Atlas agreed to Hercules’ proposal. Atlas secured the apples and realized how nice it was not to have the strain of keeping heaven and earth apart for eternity. Hercules deceived Atlas when he returned with the apples. Hercules told Atlas tha t he needed a cushion for his shoulders and asked Atlas to take back the earth momentarily while he can got pads. Atlas agreed and Hercules left never to return. Another part played in Greek Mythology was when Atlas refused to provide shelter to Perseus. Perseus changed Atlas into stone using Medusa. The huge stone is called Mount Atlas.   Ã‚  Ã‚  Ã‚  Ã‚  Atlas has a very distinct appearance. In art, Atlas is depicted as a man bearing a globe. He was strong and well built. His hair was shoulder length and he had a beard and mostache. He was usually depicted kneeling on one knee holding the world on his shoulders.   Ã‚  Ã‚  Ã‚  Ã‚  Atlas had two main values. These values were his strength and his physical endurance.   Ã‚  Ã‚  Ã‚  Ã‚  The main reference to Atlas in the modern world is a book of maps. A book of maps or an atlas is named after Atlas. A figure of Atlas supporting the earth was used in the title pages of early map collections.

Genzyme Corporation Essay

Genzyme has a tradition to be financed with equity. High equity ratio has advantages such as low agency costs related to debt, lower financial stress and more flexibility for management, which is especially crucial for start-up companies, such as in the early stage of Genzyme. However, besides losing the tax shield from debt, high equity financing leads to an increasingly diffused ownership, which would in turn causes problems such as shareholder – management principal – agent problem and asymmetric information problem. Principal – agent problem: As agent of the shareholder (principal), management should aim at maximizing shareholders’ value, i.e. the market value of the equity. However, management tends to serve its own interests. In order to make management act in line with the shareholders’ interest, agency costs of managerial incentives are induced. For Genzyme, to increase leverage is one way to reduce managerial incentives related agency costs . However, management generally does not prefer debt, since higher leverage implies higher risk for bankruptcy as financial distress increases with the leverage level. In order to mitigate this problem, Genzyme can try to offer compensation contracts which reflect compensation to the firm specific risks that managers are facing. This will make sure management to act in line with shareholders’ interest. Beside principal – agent problem, low debt equity ratio can also cause high adverse selection cost induced by asymmetric information. Asymmetric information problem: the separation of ownership and control of the firm will lead to asymmetric information problem. Management obviously has more information than shareholders and often will not disclose certain crucial information about firm’s strategic plans or operations. This will naturally have impact on the market value of a public traded firm like Genzyme. With asymmetric information, the market value of the firm might not reflect the true value of the firm. The market value tends to reflect a pooling equilibrium, because of high adverse selection. Fully separating equilibrium can only be obtained through firm’s sending unique, powerful but costly signals to the market. Therefore, Genzyme Corporation faces high signaling cost relat ed to adverse selection induced by asymmetric information problem. Debt again serves good to mitigate information asymmetry problem and to discipline management.

Is Hamlet a man of inaction? Essay

Humans are creatures of habit, we get into a daily routine, and over time, learning from experience our mind equips itself to dealing with certain situations that we encounter on a regular basis, when this routine is broken by an unexpected event our minds can be inadequately equipped to deal with this because you can only learn from teaching or experience. When a lightening bolt strikes out of the blue; a death of a loved one or such we immediately see things from another perspective, something like this can make us see things in a whole different light, things that you once thought you were sure of can take on a whole new face and cause us to wonder how we were ever so stupid to see what may now appear blatantly obvious. This may be for the better or for the worse but in any case it will almost certainly cause a turnaround in how we may see things in the future, this is what makes us human, are ability to learn from experience and put it into practice to hopefully avoid a similar situation ever befalling us again. A personal tragedy will obviously affect every person differently, it all depends on how many comparable situations we have encountered before, how much we expected it and how much we are willing to accept that bad things happen and move on. For any student away studying at university in a foreign country to be recalled out of the blue for such a matter as the death of their seemingly healthy father, who has apparently lost his life in such an unceremonious way as being bitten by a snake while asleep would be a devastating experience. Even in a modern day world something of this nature has enough potential to cause someone so much distress and confusion that it can be emotionally destroying. Now put yourself in hamlets situation you are a seventeenth century prince, a scholar based in a sheltered world, a world where you are oblivious to the fact that people lie, that people can be two faced and it is unbeknown to you that people are selfish and will put there needs before yours and others and will push as many people out of the way as they have to, to get what they want. None of these are things that would ever be part of his thought pattern, this other world; he has never seen it ; never heard of it, for him his world is the world of a prince, a place where no-one would ever make a remark about you to your face or to anyone that may have the ability to let you know about it, a world with servants and sycophants where your wish is everyone else’s command, a world where the most emotionally distressing thing you are likely to encounter is that maybe your best tunic has not been properly pressed for you by your legion of servants. You can already see even before his discovery of his mothers marriage to his uncle and the appearance of  his fathers ghost, that, for a person so uninformed of real emotional issues as Hamlet, that this would lay waste to all his current feelings and desires, leaving him with nothing on which to cling to support him through this time of hardship and solitude. This is why Hamlet is the perfect lead for Shakespeare’s tragedy, here he is saying â€Å"what if? † what if someone so unprepared as hamlet was to have to face something like this? Would the fibres of his whole human existence hold up to what he is about to face? He is forcing a collision between two different ends a scale, not even the same scale, he is submitting a characters (albeit fictional) mind and emotions to the whim of his most unimaginably ill fated predicament. You can understand that when he makes his first appearance speaking to Claudius and his mother, he has a tangible sense of bitterness towards them, especially when they speak to him in such a way that you would think it not uncommon for a woman to marry her deceased husbands brother within only two months of him passing. They enquire why he still is in his mourning dress, and think it inappropriate for him to still be actively grieving as death is â€Å"common. † They do not seem able to accept that they have had time to mourn, and that to him his fathers memory is fresh in his mind and that he is still besotted with grief not only about the death of his father, but even more so about their marriage. Claudius denounces him as showing lack of respect to their marriage and that â€Å"’tis unmanly grief† (act I scene II line 94 pg 13 OUP) he also lets Hamlet know that it is â€Å"most retrograde of their desire† for him to return to university at Wittenburg. For young Hamlet of course the memory is still green, and he has the added emotional trauma of seeing his mother wedded to his dead uncles brother and we get a strong tone of insensitivity from both of them, especially Claudius, you can imagine that hamlet, after just finding out about their marriage would be in a very fragile emotional state and their lack of consideration of his feelings can only be making him question him trust for anyone and pushing him further away from them, and driving his grief deeper inside him causing him to suppress his anger after not being able to relate this to them.