Culture report Essay Example | Topics and Well Written Essays - 1000 words

Culture report - Essay Example The students that attend this high school have many obstacles to overcome in their lives. The reservation is a place of high poverty, high unemployment and high rates of substance abuse. It is the type of environment that keeps people from succeeding in life. Yet, this remarkable high school basketball team seems to find a way to win every year. They have won five state championships against much larger, well-funded schools. One of the secrets to the success of the team is their dedicated coach Al Redman. The movie focuses on Beaver C’Bearing and the work he and his coach put into winning. It shows that the boys on the team succeed by working hard to hone their skills and by working together. The movie shows that unfortunately, the lessons learned on the basketball court often do not translate to life on the reservation. Much of the conversation in the movie centers on players that were once great but have failed to have successful lives. II. Relevance of the movie CHIEFS to M arketing There is a lot of relevance in the movie CHIEFS to cross cultural marketing. One of the aspects of culture that was displayed in this movie of Native American culture seems to be the aspect of a focus on shared ownership of public goods. The Chiefs basketball team belongs to the reservation. It occurs to me that this is truer for this community of Native Americans than it is for the typical American community with a more Euro-centric culture. The Chiefs literally belong to the community, no one person or group has more of an interest in them than anyone else does. That is why everyone leaves the reservation to go see the Chiefs play their games in the playoffs. What this means for marketing is that any attempt to market the mystique, culture or logo of the Chiefs would have to be done in a way that benefits the entire community. If any one single individual or group were to try to monopolize access or attempt to brand the Chiefs in a way that excluded the community at large , I believe that this person would have a difficult time succeeding. This team is truly the heart and the soul of the Wind River Reservation in some ways. It is more than a source of pride, it is a public good, and therefore the public will have to be supportive of any marketing efforts involving the team. III. Personal Reaction to the viewing of the movie CHIEFS. I really enjoyed the movie and the crowd that had gathered to watch the movie. I really got caught-up in the stories of these basketball players and how difficult their lives were. I never felt sorry for them, because they seemed so determined to succeed at basketball. I felt that the writer and director of the film did a great job depicting the challenges Beaver C’Bearing and his teammates faced, without sensationalizing the challenges they face off the court. At times, the movie was sad, but always made me feel as though in the end the people on the team would somehow, against all the odd succeed in life and in th e game of basketball. I could not help pull for the team in each one of their games, even though the players were flawed and imperfect people. Right to the end of the movie, I believed that these people were going to win. I wanted them to win because it appears as though they were dealt such an unfair hand by fate and by their circumstances. However, I liked the fact that the

Advantages And Disadvantages Of Shareholder Value Approach Finance Essay

Advantages And Disadvantages Of Shareholder Value Approach Finance Essay Nowadays shareholder value approach reflects to a modern management philosophy, which implies that an organization measures its success by enriching its shareholders. Shareholders or stockholders are individuals or institutions that owns in a legally form shares of a corporation. They are considered to be a subset of stakeholders, which are all individuals or communities, who have a direct or indirect interest in the business entity (e.g. suppliers, customers, government, competitors etc.). The philosophy of the shareholder approach attempts to increase the organizations value by enhancing firms earnings, by increasing the market value of corporations shares and by increasing also the frequency or amount of dividend paid  [1]  . Furthermore according to many business analysts shareholder value approach provides managers with clear mission and it facilitated decision making. Whether is it reasonable or not for the managers and the overall welfare of the organization, this is something, which is analyzed later on the seminar paper. All these objectives, companies strive to achieve, make this value analysis a traditional business measurement used in business today. The idea is that shareholders money should be used to earn a higher return than it could by investing in other assets with same amount of money and risk. It was developed in the 1980s by Alfred Rappaport and it can be used to estimate the value of shareholders Stake in a company or a business unit and also as basis for meeting and evaluating strategic decisions. Furthermore there is a pervasive consensus that managers should strive to maximize shareholder value and by doing so helps the organization to maximize social welfare. According to Hansmann and Kraakman, 2000, most widespread arguments is that corporate managers should act exclusively in the economic interest of shareholders and that the best means to this end, the pursuit of aggregate social welfare, is to make corporate managers strongly accountable to shareholder interest. In fact a precious tool for measuring all the above is the Shareholder Value Analysis, which follows later on the seminar paper, examining also the advantages and disadvantages of its implementation and function. Furthermore will be discussed the financial arguments and the reasonability of the Shareholder Value Maximization as long as relationship between the shareholder value, ethics and social responsibility as well. SHAREHOLDER VALUE ANALYSIS Shareholders value analysis (SVA) is also known as value based management. Its lead by the principle that the management of a company should take into consideration the shareholders interest and advantages before meets any decision, set short-term or long-term objectives and decide companys strategy as well. SVA is a characteristic substitute for trade business measurement, which has improved a lot by time passing. Due to the fact that companys value is calculated based on the value returned to its shareholders, in the past had been criticized for being either short-term measured or only based in past figures. SVA takes a longer-term view and is about measuring and managing cash-flows over time.  [2]  The shareholder value is calculated by estimating the total net value of the company and dividing the figure by the value of shares. Once the value has been calculated the company can set targets and objectives for improvement and measure also its managing performance. For a successful implementation of shareholder value analysis first managers should understand and calculate the organizations shareholder value and gain top management commitment. SVA believes that to assess business performance though maximization of shareholder value is an objective to be accepted by the top management to be achieved and part of the root of the organization. Furthermore managers should identify the key value drivers of the organization and set performance targets providing a framework also with assigning responsibilities to individual managers, reviewing the financial performance of the business and developing strategic plans. To continue with, the approach should be communicated and the staff must be trained. In many case in order to effectively reach the SVA companies are willing to change also the organizations information systems to monitor and measure performance. It is important also to mention that the creation of sustained value will require permanent moni toring and thats mainly the reason for the managers to monitor review progress and refine the targets.  [3]   ADVANTAGES OF SHAREHOLDER VALUE ANALYSIS Shareholder value analysis has as principal that the management of a company should first consider the interest and the advantage of the shareholders, before it meets any decision. The Advantages of Shareholder Value Analysis are performed as follows: It provides a long term financial view on which to base strategic decisions It provides a universal approach that is not subject to the particular accounting policies that are adopted. It is therefore internationally applicable and can be used across sectors It forces the organization to focus on the future and its customers, in particular the value of future cash flows. DISANDVANTAGES OF SHAREHOLDER VALUE ANALYSIS However disadvantages of the shareholder value analysis are performed as follows: Estimation of future cash flows, a key component of SVA can be extremely difficult to complete accurately. This can lead to incorrect or misleading figures forming the basis of strategic decisions. Development and implementation of the system can be long and complex. Management of shareholder value requires more complete information than traditional measures.  [4]   PRINCIPLES AND DECLARATION ABOUT SHAREHOLDER VALUE MAXIMIZATION The commitment of an organization among shareholders is not a theoretical future goal of an organization but is very often stated to the companys mission statement. Usually firms aim at shareholder value creation and maximization when they make claims such us we create value for our shareholders, we want to provide excellent return for our shareholders, and we have a responsibility to our shareholders. Our mission is to remain a strong and independent financial services organization creating value for shareholders, customers, employees and the communities where we do business, while maintaining the highest standards of business ethics. Mission statement, Chemung Canal, Trust company Many academics through the years had an overall perspective that managers should strive to maximize shareholder value and that doing so maximizes social welfare. According to this belief managers should act in the economic interest of their shareholders and thats the fundamental objective of the shareholders. As the shareholder value is difficult to influence directly by any manager, it is usually broken down in components or value drivers, such us revenue, operating margin, cash tax rate, Investment in Working capital, Cost of capital and competitive advantage period.  [5]  Though it is important to mention that quick profit doesnt give return to shareholders; usually competitive advantage takes care of it. If a business choose to sell lower standard products to reduce cost and gain quick profit it may have the danger that its reputation will be destroyed, will lose competitive advantage and the price of its shares will be reduced. Is the shareholder value maximization a healthy defined target for the organizations? Nowadays no country, not even the shareholder-friendly USA has a legal requirement that managers act absolutely in shareholders advantage and in fact the law makes it legal for directors to consider also other interest. Although firm that are willing to have an openly commitment to shareholders seem to do better in comparison with others, there is no case that make shareholders value maximization the societys most desirable corporate target or that competitive markets for goods, capital and labor pressure managers to seek on that specific goal.  [6]   Furthermore, markets are incomplete; meaning that profit maximization is not well defined and possible conflicts of interest cannot be prevented or in many cases resolved. Under this assumption financial researches have shown that stakeholder-oriented firms are usually more successful than shareholder-oriented firms, because market forces are forcing them to do so. What role do market forces play in the shareholder value maximization? Competitive markets are playing a significant role to this argument because they can push managers to act on interest of all stakeholders. Usually they are pushing inefficient firms to cut costs and focus on customer needs rather than shareholders interest. Managers can survive the challenges of competition even though they do not maximize economic profits; but capital markets have this role. It seems that capital markets do not leave managers another way but maximizing shareholders interest and doing so maximizing companys welfare. If investors with many shares of an organization feel that share are going more and more down and start losing money, they may try to take action and influence the decision making, which could mean that managers are risking their jobs. All in all the combination of the different market forces are those, who can affect or even force managers to act in advantage of stakeholders. A mentioned the basic principles of shareholder value maximization are not clearly defined for the market and even if so, are not in many cases reasonable and possible in the real world. Corporate social responsibility is one of the main targets organizations are focusing, because it keeps them competitive and acting in an ethical way can also achieve the maximization of shareholder value. Let us take a closer look to CSR and how can affect the overall shareholder value approach. SHAREHOLDER VALUE AND SOCIAL RESPONSIBILITY How managers and organizations respond to ideas of corporate responsibility is expressed by the idea that organizations have external environment with an interest in, or who are affected by what the organization does. Additional to this are the ethical investors advocating care for the natural environment. With the term ethical investors are mined those people who are investing only in businesses that meet specified criteria of ethical behavior. These stakeholders can affect in a negative way the organization and its environment if they disapprove managers policies among things like: Negative publicity in local and national media Direct action and protests Threats or actual legal action Withholding planning or other permissions necessary for operations If managers can satisfy shareholders expectation they will maintain their support and they will also increase shareholder value. If not investors will flee from unethical companies or those who are not respecting the responsibility among stakeholders, mistreating for example their employees or the environment. Characteristic examples are Nike, Union Carbide and Exxon Mobil. The expectations of the financially centered investors are not only high return on investment but strong corporate responsibility and reputation as well  [7]  . After all corporations have a strong social and environmental impact and role. Businesses need the approval of the society to make profit and as follows to return value to its shareholders. If policymakers, investors and executives want to address corporate responsibility, the corporate governance must be coupled with global corporate social responsibility, which can be defined as business practices based on ethical values and respect for the internal and external environment of the company, such as employees and committees.  [8]   It is important to mention that being social responsible in a proactive way can create an opportunity for the firm to strategically alter production and translate innovation into competitive advantage. This is consistent with Russo and Fouts (1977) who successfully mentioned that environmental management and the associated performance outcome are integral parts of effective management, whereby a pollution prevention policy builds organizational commitment and increase employee productivity and participation. In that way they show also a link between the level of social responsibility and the return on invested shares. Managers dont face a tradeoff between financial performance for the shareholders and eco-efficiency and investors may be able to usefully incorporate environmental information into investment decision.  [9]   However shareholders cannot simply rely on market forces to ensure corporate responsibility because although market has encouraged more and more organizations to act in consideration of social responsibility, market forces have not been sufficient to ensure such a behavior over times. In many case we see that such responsible organizations may have higher costs, which may allow competitors to gain market share. Does a social sustainable environment return value on shareholders? Finally is there any relation between companies on best practices in an ethical way and the returned value on their shareholders? In some cases highly ranked companies do outperform the market (e.g. Filbeck, Gorman and Preece, 1977) while in some other case the returned value on their shareholders is significantly low (e.g. Kolodny, Laurence and Ghosh). Many of the socially responsible studies center among big organizations are performed to diversified stock market indices.  [10]  Many economists do not find statistically significant difference between the earnings of socially responsible funds compared to more traditional funds. In fact many big organizations in India have made a research over the past ten years in order to explore this relationship between dimension of ethics and CSR and shareholder returns. According to National Stock Exchange of India social responsible companies are not expected to perform higher than companies focused only to the economical welfare. CONCLUSION To sum up, shareholder value is something more than a simple organizational approach; its a management philosophy reflecting on the overall firms success, providing managers with a clear mission and facilitating decision making. The most important tool for enhancing this managerial approach is the shareholder value analysis, which gives managers all the principles needed in order to take shareholders advantage into consideration before any decision making and also provides them with practical steps in order to increase firms and investors value from top to the bottom. On the other hand, shareholder value approach often need estimation of future cash flows, which can be very difficult to complete and the development of such a system can be complex for an organization. According to many mission statements of firms, the increasing of shareholders value maximizes social welfare. But this can be reasonable only with the correct strategies and objectives in order to increase profit, gain competitive advantage and consequently return value to the investors; quick profit through lower quality products can damage not only firms reputation but also reduce the price of the shares. Although there are not legal requirements for the organizations in most countries to act in advantage of shareholders interest, and shareholder value maximization is not a clear target for the modern economies, capital markets are the ones which force managers to do so. It is important to mention that this factor is not the most important one for organizations to win competitive advantage, because they mostly have to take under consideration all stakeholders; however is one that could threat their jobs, when investors see their shares undervalued. Closing and adding to all the above external environment is affected in the same way and maybe more in comparison to the internal one. Ethical organizations and those, who are acting on interest of corporate social responsibility and consequently can affect positively the stakeholders (including customers, communities, society etc.), are able to gain ethical investors and maintain their support. For any business action society is the one, which will give the approval to make profit and as follows return value to the shareholders. Shareholder Value Approach is a strategic thinking in modern business management. It shows the balance between competitive advantage, value creation and business strategy. I would like to close this project with a phrase that George S. Day, executive director of the marketing Science Institute Cambridge, successfully generates: For a strategy to win in the marketplace, it must create sustainable advantage; only when a strategy wins in the marketplace can it generate sustained shareholder value.  [11]  

The Bombing of Hiroshima – source related study

Source A is a picture source, which shows the mass devastation caused by the atomic bomb at Hiroshima. The source is an Ariel photograph, which was taken at the heart of Hiroshima, it was taken a day after the bomb was dropped. Source B is an eyewitness account of the bombs consequences and describes the people around him. Source A focuses on the geographical consequence of the bomb. From the source we can see mass destruction and devastation, there seems to be no signs of life what so ever. There is absolute destruction shown and there is only really one house visible, which is crumbling down into pieces. We see a large area (we can even see the mountains in the background, showing the extent of the damage) as the picture is quite wide and the picture is visually powerful, it shows the viewer a lot, as a picture paints a thousand words. It shows much more than any text would describe. It shows exactly what the Americans wanted to see, destruction to force the Japanese to surrender. It shows the power of the atomic bomb, approximately equivalent to the power of 100 million tons of TNT. The source may be taken for propaganda. It shows annihilation and this represents power. This may have been used to show the American people that the country was still powerful and get their moral up after losing hundreds of thousands of American lives. It may also have been used to show the rest of the world Americas supremacy. It does this very well. The source is extremely useful as it is a clear Ariel photograph which displays a wide area of land in which we can see the physical effects, which ultimately is high devastation. But the source can be unhelpful in some respects as it is only one area of Hiroshima and so there may not have been that much devastation overall. It may be the not be as bad as other parts and could be exaggerated. But ultimately the bomb had a large radius and would have destroyed a large area quite easily. Source B is an account by Mr Kazuo, it is an eyewitness account and so the source should be quite reliable. The source focuses more on the human aspect. He describes the gruesome deaths and mutations of various, innocent Japanese men, women and children. It gruesomely describes how people's eyes hung out, how they had holes instead of noses and how the skin hung like seaweed. The descriptions are extremely effective and gruesome and make people fell angry as innocent people went through such horrific pain. The source however is not as useful as it doesn't really focus on the physical side, although we learn bridges were still standing. It focuses much more on human aspects. It may not be as reliable as we think because the effects of the bomb may have tainted him, and naturally he would exaggerate the disaster to some degree, as the experience was shocking. He would have hated the Americans for what they did so would naturally exaggerate. Overall source A is a much more useful source as evidence of the physical effects of the Hiroshima bomb. The source is an actual photograph, which focuses on the land, and so we can gather much information about the physical effects. Source B is very useful in dealing with the human aspect of the bomb, but the visually powerful picture in source A is much more useful for the physical effects and paints a thousand words. There is so much mire we can learn and conclude from source A. it shows the true devastation to the land and shows the bomb and Americans left nothing standing in there way.

Joe Gransden Jazz Jam Essay

In the recent course of music, it is evident that changes and development are present. The variety of genres had expanded which led to the arrival of brand new breed of artist that is able to represent various entities and cultures. Moreover one of the genres which are developing is Jazz. For many years, different jazz musicians are present. In the current state of music, it is clear that music is flowing. Due to such realization it is needed as a researcher to see a jazz performer to fully see the development of music as well as the instrumentation of the band. More so, the researcher shall provide details to which different kinds of observation during the performance of Joe Gransden Quartet Jazz Jam. The Joe Gransden Quartet Jazz Jam is a group which is composed of different individuals who are actively performing different types of instrumentations. The most important instrument is the trumpet which is usually utilized in every song of the band. The band is greatly utilizing instruments rather than a vocal instrument. There is a satisfying sound of the base and drums and the cello which highlighted by the shallow sound by different instruments with a lighter sound. More so, the whole set which was played by the band were all complete with different instruments which add drama and emotions with the songs. Definitely the whole band is very great for they are able to present their craft and attain a response from the audience. For the band is jazz, the audience is calm and very appreciative of the music. Due to the excellence o the band, it is inevitable that the audience will be entertained and amused on how individuals could utilize music as a form of emotional and artistic perspective. On the other hand, attending such concert is similar to drinking a cold glass of water. Such kind of band is refreshing to the ears and to the soul. The music of the band and their musicality is unquestionable. Moreover, the excellence of each member in their instruments does not need any improvement. The association of each instrument is in line with each other. Upon this, the researcher sees that the Joe Gransden Quartet Jazz Jam is a unique band which does not present that jazz is a genre which is unlike any other. The presentation is highly classical in the perspective of the researcher. The instruments and the notes are learning to the classical music which is usually done in operas. More so, the instrument was playing a huge role in its own unique way. All the instruments were complementing each other. Therefore, the instruments are all highlighted in their own way. Looking at the perspective of the solo acts, it is slightly evident that each of the musicians has their own flare in providing a different style in playing the instrument. In addition to this, the lead of the band –Joe Gransden is an important player in the band. For he leads the whole group towards his visions, he is allowed the most pristine individual in the group. Although most of the musicians in the group is great in their on instruments, it is through the vision and knowledge of Joe Gransden that the group have gone to the levels and acknowledgement of the press and the audience. Moreover, the whole band was a breath of fresh air for the audiences who are interested

Free Essays on The Marketing Research Process

The marketing research process is the function that links the consumer, customer, and public to the marketer through information. Information is used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions, monitor marketing performance and improve understanding of marketing as a process. The marketing research process specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications. The four steps in this process are : 1). Defining the problem and the research objectives Before starting the actual research process, marketers must determine the source of the problem, in order to be able to conduct the relevant research and avoid wasting time and money. A proper definition of the problem is the basic step to the whole process. Defining research objectives involves carrying out preliminary research and this includes, exploratory research, descriptive research and causal research. Exploratory research is marketing research to gather preliminary information tat will help define the problem and suggest hypothesis. Descriptive research is marketing research tat describes in a better way marketing problems, situations or markets. Causal research is marketing research to test hypothesis about cause and effect relationships. 2). Developing the research plan to collect the information. The second step of the marketing research process requires, determining the specific information needed, developing a plan for gathering it efficiently and presenting it to the marketing management. The plan illustrates sources of existing data, and determines what research approach, contact methods, sampling plan, and research instruments will be employed to gather relevant new data. The research approach includes: observa... Free Essays on The Marketing Research Process Free Essays on The Marketing Research Process The marketing research process is the function that links the consumer, customer, and public to the marketer through information. Information is used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions, monitor marketing performance and improve understanding of marketing as a process. The marketing research process specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications. The four steps in this process are : 1). Defining the problem and the research objectives Before starting the actual research process, marketers must determine the source of the problem, in order to be able to conduct the relevant research and avoid wasting time and money. A proper definition of the problem is the basic step to the whole process. Defining research objectives involves carrying out preliminary research and this includes, exploratory research, descriptive research and causal research. Exploratory research is marketing research to gather preliminary information tat will help define the problem and suggest hypothesis. Descriptive research is marketing research tat describes in a better way marketing problems, situations or markets. Causal research is marketing research to test hypothesis about cause and effect relationships. 2). Developing the research plan to collect the information. The second step of the marketing research process requires, determining the specific information needed, developing a plan for gathering it efficiently and presenting it to the marketing management. The plan illustrates sources of existing data, and determines what research approach, contact methods, sampling plan, and research instruments will be employed to gather relevant new data. The research approach includes: observa...

Free Essays on The Nature Of Appearance’s Relationship With Reality In Modern English Satire

England, England, a sardonic novel by Julian Barnes, explores the dichotomy of man’s satisfaction with reproductions of authentic experiences. The story draws from the twisted ideas of the enigmatic Sir Jack Pitman, a well-known London entrepreneur who wishes to build a theme park on the Isle of Wight based on stereotypes and clichà ©s associated with England. His company purchases the island and creates an independent country where participants can visit and even live in a manufactured culture and history based on common preconceptions. Pitman rules the new nation as virtual dictator and hires actors posing as English people to inhabit the park. The protagonist Martha Cochrane, who suffers under Pitman’s yoke of influence as a â€Å"Special Consultant† (Barnes 45), eventually intervenes and takes control of â€Å"England, England† when she feels Jack has overstepped his authority. The author’s underlying philosophy is that humans prefer an ide alistic representation of the truth to the truth itself. Barnes employs two- sided characters and a counterfeit England to develop his theme that the world is an illusion. The private behaviors of Sir Jack Pitman’s character vastly deviate from the commanding personality he projects to his employees. To the public eye, the president of PitCo comes across as a ruthless, strict, and matter-of-fact businessman. Barnes characterizes him as having a bored and condescending tone with his coworkers. Indeed, when his subordinate Mark asks him how he intends to go about solving the problem of birthing a small sovereign nation from scratch, the stern Pitman only responds, â€Å"you do it by doing it† (128). A man with an obvious sense of innate encouragement, Pitman believes that the two means of achieving a goal are his way or the highway. One of his traits, however, stands out from the rest. An interesting quirk in the man’s character concerns his affection and loyal, scheduled sessions... Free Essays on The Nature Of Appearance’s Relationship With Reality In Modern English Satire Free Essays on The Nature Of Appearance’s Relationship With Reality In Modern English Satire England, England, a sardonic novel by Julian Barnes, explores the dichotomy of man’s satisfaction with reproductions of authentic experiences. The story draws from the twisted ideas of the enigmatic Sir Jack Pitman, a well-known London entrepreneur who wishes to build a theme park on the Isle of Wight based on stereotypes and clichà ©s associated with England. His company purchases the island and creates an independent country where participants can visit and even live in a manufactured culture and history based on common preconceptions. Pitman rules the new nation as virtual dictator and hires actors posing as English people to inhabit the park. The protagonist Martha Cochrane, who suffers under Pitman’s yoke of influence as a â€Å"Special Consultant† (Barnes 45), eventually intervenes and takes control of â€Å"England, England† when she feels Jack has overstepped his authority. The author’s underlying philosophy is that humans prefer an ide alistic representation of the truth to the truth itself. Barnes employs two- sided characters and a counterfeit England to develop his theme that the world is an illusion. The private behaviors of Sir Jack Pitman’s character vastly deviate from the commanding personality he projects to his employees. To the public eye, the president of PitCo comes across as a ruthless, strict, and matter-of-fact businessman. Barnes characterizes him as having a bored and condescending tone with his coworkers. Indeed, when his subordinate Mark asks him how he intends to go about solving the problem of birthing a small sovereign nation from scratch, the stern Pitman only responds, â€Å"you do it by doing it† (128). A man with an obvious sense of innate encouragement, Pitman believes that the two means of achieving a goal are his way or the highway. One of his traits, however, stands out from the rest. An interesting quirk in the man’s character concerns his affection and loyal, scheduled sessions...

Analysis of LinkedIn Research Paper Example | Topics and Well Written Essays - 1000 words

Analysis of LinkedIn - Research Paper Example Current ratio- The firm’s current ratio is increasing and getting stronger as the year progresses. A ratio of above one indicates the firm can settle its short-term obligation within a financial year and still conduct its operation effectively. This is proven by the networking capital across the year which increases across the year. In the year 2012, the ratio was 2.45 it rose to 4.7 in the year 2014. Return on Assets- The value of assets owned by LinkedIn Corporation is increasing across the financial years that have been analyzed above. However, the return on this asset is decreasing. This simply means that the assets the firm have invested on are not been utilized to the maximum or the resources are in surplus. In the year 2014, the return was in the negative figure because the firm had incurred losses. The revenue generated across the three years was increasing as well as the costs for revenue generation. However, the rate at which the cost of revenue was increasing was hi gher than that of revenue being generated. This has to be taken into account because if this continues LinkedIn profits will be â€Å"eaten-up†. Equity ratio- This ratio indicates a firm dependence on debt to run its operations. From the above analysis, the equity ratio for LinkedIn is good because over 60% of the firm’s asset was financed by its shareholders. However, in the year 2014, the equity ratio dropped to 61.3% from 78.4 % in 2013. According to (Samuels, and Wilkes, 72), it indicates the firm had increased its borrowing.