Multiculturalism in Human Resource Management Essay

Multiculturalism in Human Resource Management - Essay Example I accept that the quintessence of assorted variety, social or something else, is the concurrence of various traits inside a solitary social condition. For example, if there are various societies included, however each culture is experienced inside the setting of its own social milieu, at that point there is multiculturalism yet no assorted variety, on the grounds that the representatives are not individuals from a minority culture exposed to a predominant culture. Then again, on the off chance that the assortment of societies were experienced inside the United States, at that point one may state that social decent variety existed. The substance of â€Å"diversity† is pluralism inside a solitary setting, â€Å"diversity in the making of a typical society† (McGraw and Formicola, 2005, p. 14). In this manner, if the multiculturalism included a worldwide employing people of various races or societies in various abroad auxiliaries simply because a specific race or culture is predominant in that specific host nation, at that point decent variety didn't exist as majority on the grounds that the way of life were prevailing in their own districts. The response to the third inquiry certifies that assorted variety and incorporation are significant in the business condition, yet isn't sure about why decent variety is significant. The model given is that assorted variety attracts world clients closer to the association instead of estranges them. Be that as it may, culture-touchy showcasing methodology changes customer impression of the firm, without fundamentally changing the parent company into a different and comprehensive substance (Van Mesdag, 1999). A decayed administration approach that utilizes social adjustment in its advertising endeavors doesn't really bring about a various work power, albeit an assorted work power may draw clients of various qualities and foundations, inside the parent company’s condition, closer to it. Reaction for the post of Student 2 (Brandon Burton) The post calls attention to a significant test to assorted variety, that is, the way the beliefs and hypothetical standards of decent variety are realized with the goal that one may state, â€Å"Our partnership has accomplished diversity†. The trouble in showing up at a pertinent depiction of decent variety is underscored by Brandon’s questions: Is it employing more minorities? Is it looking for minorities who think in an unexpected way? While these ambiguities are very much represented, there has all the earmarks of being something missing in the definition that is shown up at. Assorted variety in this post is characterized regarding having various thoughts, individual just as business encounters, and culture (in what sense is unsure †culture identified with nationality or ethnicity, or culture identified with individual childhood and direction?). Apparently this definition crushes the idea driving â€Å"diversity and inclusion† on the grounds that it overlooks the sense behind â€Å"inclusion.† â€Å"It is commonly acknowledged that ‘Inclusion’ implies welcoming the individuals who have been generally bolted out to ‘come in’.† (Asante, n.d.). The post is right in focusing on that the individual with the correct capabilities must be recruited, yet the understood reason here is that assorted variety will urge the business to employ one who isn't qualified. Decent variety and consideration are explicit in that they are activities which plan to sort out the authentic biases that consigned individuals of specific races, doctrines, societies, and different ascribes to patterns of destitution and prohibition. Decent variety is â€Å"a moral basic to guarantee equity and reasonable treatment of all individuals from society†¦The extensive proactive association centers around the business case for assorted variety, yet in addition effectively on the social equity case and what is ‘the right thing to do’

City Development in Northen Virginia and Seoul Essay

City Development in Northen Virginia and Seoul - Essay Example In the event that all the above are accessible and helpfully, found, at that point networks may live well. Notwithstanding, if houses are worked so that they are scattered or in segregation, at that point chances are that neighborhood governments/different partners should spend gigantic aggregates on this. 2 Moreover, such poor city plans cause inordinate utilization of fuel, wastage of time while getting starting with one point then onto the next and constrained profitability. Overabundance utilization of assets additionally irritates the circumstance. At the point when Cities or towns assemble their homes in removed areas, at that point citizens should go through enormous entireties of their cash in developing access streets. In any case, Northern Virginia does not have a portion of these highlights. In Accomack County, a challenging 80% of the representatives in the territory work inside it. Hence, the rest of the rate needs to go to different goals discovered outside it. Then again, thirty four percent of the laborers in Prince William County work inside it. The rest of the laborers need to go outside the district. This infers just about 70% of laborers in some other province need to move to another area when going to work. 3 The general aftereffect of these progressions is... Also, inadequately constructed houses are progressively hard to keep up in light of the fact that they require significant expenses per unit. These significant expenses are inevitably moved to the citizen and he may think that its hard to hurt out a living in such a region. Numerous heads in Northern Virginia have tragically assumed that further street development will take care of the issues nonetheless, this not really evident. The most reasonable choice for Northern Virginia is presentation of brilliant structure plans. On the off chance that houses were worked in helpful areas, there would be a lesser weight on the citizen since houses would be developed in one territory and there would be no requirement for inordinate fuel use in transport. This additionally implies shrewd city advancement likewise forestalls contamination since it will limit carbon outflow. 4 Northern Virginia has recorded significant levels of rambling houses in light of the fact that the nearby government has not tried managing private turns of events. This suggests houses are constructed aimlessly and it turns out to be progressively hard to deal with their asset utility. Northern Virginia's structures are additionally not practically arranged. For example, developments might be done in rich soils that are better wellsprings of farmland. Furthermore, where houses are concentrated, some of them don't have any type of cushion zones to a low fro contrasts in usefulness. For instance, a dairy ranch and a condo are situated close to each other. Maybe the most serious issue in Northern Virginia is the way that the nearby specialists have negligible forces as to land use. The greater part of them come up short on the capacity to design houses in the Coty. Private engineers can figure out which parts will create and which ones won't. The law explicitly

The Patient Protection and Affordable Care Act Free Essays

Davis Weiss The Patient Protection and Affordable Care Act is a government rule that was marked into law in America by President Barack Obama on March 23, 2010. It is partitioned into 10 titles. The bill contains arrangements that will become effective on June 21, 2010 and September 23, 2010. We will compose a custom article test on The Patient Protection and Affordable Care Act or on the other hand any comparable point just for you Request Now Likewise, the extra arrangements will go live in 2014. Title I of H. R. 3590 will guarantee quality reasonable human services for all Americans by disposing of biased practices by wellbeing safety net providers, for example, prior condition prohibitions. Title I additionally stretches out dependant inclusion up to age 26, tops insurance agencies non-clinical costs, and forestalls out of line end of protection arrangements. Title II grows qualification for Medicaid to bring down pay people and accepts government accountability for a great part of the expense of this extension. These bills offer upgraded government help for the Children’s Health Insurance Program, disentangle Medicaid and CHIP enlistment, and improve Medicaid administrations. Title III will reinforce the nature of medicinal services by setting up The Physician Quality Reporting Initiative (PQRI) which is a worth based buying program for emergency clinics that connect Medicare installments to quality execution. Title IV institutes another interagency board to elevate sound arrangements and to build up a national counteraction and wellbeing advancement technique. Title V will support advancements in social insurance workforce preparing, enlistment, and maintenance, and will build up another workforce commission. Title VI makes new necessities to give data to the general population on the wellbeing framework and advances a recently empowered arrangement of prerequisites to battle extortion and maltreatment in pubic and private projects. Title VII permits certain medical clinics and treatment focuses to get limited as well as nonexclusive medications to help their financial plan. Title VIII builds up another, intentional, self-subsidized long haul care protection program, the Community Living Assistance Services and Support (CLASS) Independence Benefit Plan, for the acquisition of network living help administrations and supports by people with practical constraints. No citizen supports will be utilized to pay benefits under this arrangement. Title IX requires an extract assessment of 40 percent on insurance agencies and plan executives for any wellbeing inclusion plan that is over the edge of $10,200 for singular inclusion and $27,500 for family inclusion. It likewise expects bosses to uncover the estimation of the advantage gave by the business to each employee’s medical coverage inclusion on the employee’s yearly Form W-2. What's more, in conclusion, Title X requires bosses that offer and make a commitment towards worker inclusion to give free decision vouchers to qualified representatives for the acquisition of qualified wellbeing plans through Exchanges. The Patient Protection and Affordable Care Act changes the medicinal services framework by extending the accessibility of medical coverage, managing health care coverage inclusion, and rebuilding human services conveyance, including how it is paid for. The bill would decrease the quantity of uninsured Americans by 31 million, leaving just 6 percent of nonelderly grown-ups uninsured. Various components are utilized to build inclusion, including growing Medicaid, which gives protection to low-salary guardians and kids at little cost; setting up state-based protection trades with endowments for low-and center pay family units; expecting people to get inclusion; and commanding that most businesses offer health care coverage. The new demonstration would make Medicaid accessible to all people winning under 133 percent of the government neediness line, or $14,500 every year ($29,500 for a group of four) while improving administrations for recipients. The Patient Protection and Affordable Care Act additionally make state-based medical coverage trades, called Health Benefit Exchanges, which are commercial centers where buyers can search for and buy health care coverage. The Patient Protection and Affordable Care Act incorporate various changes of the medical coverage advertise, much of the time managing this market just because. The Congressional Budget Office appraises that around 8 million such people would stay uninsured. Also, the bill confines access to premature birth benefits in the Health Benefits Exchanges and, specifically, for individuals getting government endowments. The Patient Protection and Affordable Care Act sets aside cash by lessening the expense of premiums that families and people pay to keep up their medical coverage arrangements. It additionally sets aside cash by disposing of waste in the clinical business by setting up an inside where doctors can report squander and by supporting examination looking for clinical gear. Likewise, the demonstration encourages private companies to set aside cash by giving them the open door o offer medical advantages to their representatives without obliterating the financial plan of their organization. The Patient Protection and Affordable Care Act raise income by forcing a yearly expense on the medical coverage division. Such charges would be forced on insurance agencies that sell significant expense medical coverage plans. The charge is intended to create more brilliant, more practical wellbeing inclusion decisions. The compromise charge defers this new expense until 2018 with the goal that plans have the opportunity to execute change and start to spare from its efficiencies. The measure of the expense is $8. 0 billion out of 2014, $11. 3 billion in years 2015-2016, $13. 9 billion of every 2017, and $14. 3 billion out of 2018. As indicated by the Congressional Budget Office (CBO), the enactment will lessen the shortfall by $138 billion over the principal decade and by $1. 2 trillion in the subsequent decade, when contrasted with current enactment. The CBO has recalculated its gauges a few times, first anticipating a reserve funds of $132 billion, at that point $118 billion, and $143 billion. It likewise expands the Medicare Hospital Insurance (HI) charge rate by 0. rate focuses on an individual citizen gaining over $200,000 ($250,000 for wedded couples documenting mutually). The incomes from this duty will be credited to the HI trust subsidize. The available base of the HI charge is likewise expanded by including net venture salary. The demonstration would likewise force a 10% duty on sums paid for indoor tanning administrations. The expense is successful for administrations on or after July 1, 2010. Lessens the deficiency in the following ten years and past. The bill is completely paid for with income arrangements that attention on paying for change inside the human services framework. The most effective method to refer to The Patient Protection and Affordable Care Act, Papers The Patient Protection and Affordable Care Act Free Essays 1. Decide how this Federal law will influence advertise driven and non-showcase driven choices. This government will influence the showcasing part of the social insurance industry in any case on the off chance that they are driven or not. We will compose a custom paper test on The Patient Protection and Affordable Care Act or on the other hand any comparable point just for you Request Now On the off chance that the organizations are driven and showcase effectively, at that point they will have the option to pull in individuals that are happy to pay for the administrations they give. This will cause for private medical coverage suppliers to change the manner in which they offer types of assistance. The new advertising systems will show how they are giving better consideration to the individuals who have previous conditions. This law will influence how the private medical coverage area showcases the various kinds of administrations they give. The organizations should return and take a gander at how they are showcasing their administrations to get the customers they need to draw in. On the off chance that they are advertise driven, at that point they will showcase things that are all the more engaging the customers they as of now serve or need to serve, this could include free wellbeing screening, all the more blast for their bucks, and the chance to see all that the organization offers to its protected. Some will be increasingly aggressive to give new advertising plans to keep current customers and pull in new ones while others may loathe change and move more slow towards new thoughts. This will make them either free current customers and not draw in new ones. 2. Depict the conditions at which you would set up a key intend to remember this new law for your showcasing choices, realizing this new law could conceivably produce results. I would concentrate more on the issue of giving current approach holders that as of now have previous conditions with better choices to human services. I would attempt to consolidate lower premiums or not charge them as much as contending insurance agencies do. I would publicize free screening to every one of my clients and assurance inclusion. I would plunk down with every one of my potential arrangement holders and disclose to them the intricate details of what we offer and what might profit them. I would need them to feel thought about and not simply one more strategy number. They would feel good coming to us with questions or concerns they may have about their strategy. I would give a nonstop help line just in the event that they went over a circumstance where they required direction. Likewise something that would be critical is have a site where all the required structures can be gotten to and they would likewise approach their record data on the web. My promoting methodology would stress on family and cordiality, since that’s what’s generally critical to individuals. 3. Examine how every one of the five (5) natural powers will be influenced by the new law, which you accept will be the most influenced and why. - Jockeying for position among current contenders. This is the forceful rivalry between current firms or organizations, the way that these insurance agencies will spend such a great amount on having the best promoting procedure will make the arrival pay be low. This is on the grounds that they spend such a lot of cash on promoting and

Digital Image Analysis Of Yell :: essays research papers

Computerized Image Analysis of Yellowstone National Park Presentation Remote detecting alludes to the tele-observational studying and mapping of physical, urban and natural highlights. Remote Sensing is additionally a composite of numerous different subjects, for example, aeronautical photography, radar looking over, warm studying, climate anticipating and photogrammetry. It has now become very normal practice to utilize remotely detected information to take stock, screen and create compelling administration practices of our regular assets. Objective It is the reason for this paper to additionally upgrade the comprehension of remotely detected information so that we may help the human cerebrum in the extraction and understanding of this information through computerized picture examination information control procedures, for example, amendment, improvement and arrangement. The utilization of regular and non-ordinary picture upgrade/characterization systems will be applied to a territory of The Old Faithful area of the North Fork woodland fire inside Yellowstone National Park as it existed on September 8, 1988. They will likewise be applied to Nile Delta locale of Egypt. Traditional innovation with regards to this paper alludes to symbolism that is uni-dimensional, that is, it has just a single phantom band accessible for examination. The term non-regular will allude to symbolism that has multi groups accessible for control and investigation. Techniques for improvement used in the multi-band part of this undertaking include: - shading and histogram picture upgrade - standardization and picture polynomial math upgrade - sifting picture upgrade - band changes (eigen pictures) picture upgrade - coventional techniques for upgrade Techniques for characterization used in this task include: - signature preparing ( inspecting) - directed characterization, PPD, Mindis, Maximumlikliehood - unaided characterization, histogram balance, grouping Techniques for upgrade utilized in uni-scene segment of this undertaking include: - histogram leveling uni-band - sifting picture upgrade Information Acqisition Information securing alludes to the information by methods for data assembling about the scale choice of the remote detecting groups and the objective distinguishing proof of the studied and mapped assets. In this investigation we have obtained Landsat Thematic Mapper information which comprises of seven ghastly groups and covers a 512x512 picture component territory. The Landsat ground goals or pixel size is 30x30 meters which means a zone inclusion of 235.93 square kilometers of ground inclusion, which is a subset district of the Yellowstone National Park. The Nile Delta area is situated in nothern Egypt and the information procured was initially obtained for delta topgraphy. The information is Landsat MSS with one accessible band and covers a 580x640 picture component territory. The Landsat MSS ground goals is 80x80 meters which means a zone inclusion 2211.

Beginners Guide for Zend Framework 2.0

Fledglings Guide for Zend Framework 2. 0 When it comes to open source programming and applications, Zend Framework is one of the most favored stages for web applications. Zend Framework 2. 0 has been discharged to defeat the normal issues of the past rendition and give a propelled system to the improvement of web applications. You can expect a great deal of new highlights including distributed computing, unrivaled occasion the executives, and propelled highlights for occasion following. The Beginners Guide for Zend Framework 2. is an arrangement which will help you in beginning with Zend Framework 2. 0. We will talk about every single part of ZF2. 0 with handy model. What’s new in Zend Framework 2. 0 Before beginning with ZF2. 0, let us discover what’s new in this rendition †¢ New and refactored Autoloaders Improved Exception System Advance and refactored View Component New Cloud Infrastructure segment New and propelled Event Manager part New Plugin Broker Strategy Rewritten Session Component New Dependency Injection ComponentPost 1 of arrangement â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€ How to arrangement Zend Framework 2. 0 Zend Framework 2. 0 is a totally different outfit for Zend Framework and you will discover new parts, renamed and changed segments, and expansion of cutting edge administrations for better web applications. You would be flabbergasted with the bug fixes and mistake controlling parts accessible with ZF2. 0. So you need a ton of alterations for this most recent form and let us discover how to begin functioning with ZF2. 0. Introducing Zend structure 2. Above all else you have to download the arrangement of ZF2. 0 and the best alternative is to download Zend Framework Minimal Package for Windows including PHP 5. 3 in it. Spare the record in the library envelope as library/zend. There are vari ous strategies for introducing ZF2. 0 on your machine: †¢ Installation Using Pear Installation Using Subversion (svn) Using Git Installation with Pear For the clients having Pear empowered on their framework, the best strategy for introducing ZF 2. 0 is by utilizing Pear and following two straightforward order as: pear channel-find pear. zfcampus. organization pear introduce zfcampus/zfInstallation with Subversion (svn) Users having Subversion running on their framework can download the product from open store and you are not required to download the entire form, you can just update the edge work with new discharges. Introducing with Git Many developers incline toward Git for downloading the most recent programming redesigns and you can utilize Git for the most recent form of ZF 2. 0. Preparing for your first ZF Project Zend Framework has some particular framework prerequisites like including outline work in include_path and access to contents situated outside the document.You need to have an appropriate index structure before beginning with the task and let us discover the best catalog structure for your first ZF venture 1. docroot/2. list. php 3. application/4. 5. 6. 7. 8. 9. default/controllers/IndexController. php FooController. php models/sees/10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. contents/record/foo/partners/channels/blog/controllers/IndexController. php models/sees/contents/file/partners/channels/news/controllers/IndexController. php ListController. hp models/sees/contents/record/list/aides/Filters/Each of the indexes has a particular job and use, let us discover the significance of every one of these catalogs Application: Application registry is intended for all the codes utilized for the application. Configs: This index is liable for the general application. Modules: Modules are required for at various phases of advancement so make a point to make a registry for modules for any future necessities of the task. Information: Data registry is liable for holding unstable and transitory information including meetings, logs, reserve, and even the transfer data.This index will go about as a simple to discover information obstruct for your application. Library: This catalog is utilized for putting away various libraries that are all through the application. Include this registry in include_path for any reference and necessity. Contents: Script catalog is utilized for keeping up all the contents including patches, order line, and cron contents utilized in the application. Docs: This catalog is made for putting away information created in the application and information legitimately utilized in the application. Setting Up bootstrapBootstrap is the passage and leave point for all the order in some random applications including demands, reaction, course, and even dispatch orders. For setting up your Bootstrap, make list. php document and include the accompanying code in your application. Foundation Process: First of all, you have to characterize all the primary registries as contants for simple access and afterward start Zend/Application/Application for beginning the application. The order bootstrap() is utilized for booting the application and afterward move the control to the first bootstrap of the application.For higher security, make a point to make reference to least subtleties in list. php and attempt to keep all the rationale in the bootstrap class made in your application registry. The subsequent stage in setting up ZF 2. 0 is to make the . htaccess document for taking care of and diverting all the solicitations to bootstrap. Make . htaccess record for your venture The primary capacity of . htaccess document is divert all the solicitations made in the undertaking to the open bootstrap record. Before making the record, you have to specify its worldwide setup like reworking composes and comparable permissions.You can do it by following strategy. M ake a mandate in your vhost document and give authorization to . htaccess to be parsed. permit supersede all none Now make open/. htaccess document with following code: Once you have made the . htaccess document for your application, you are prepared to begin with the venture. Despite the fact that there are some basic advances left in the process including setting up the application. ini document and afterward you can begin with making your first controller, how to include information from client, channel the information, approving information, and various things.Conclusion: ZF 2. 0 has a great deal of value updates when contrasted with the previous rendition and the most ideal approach to utilize these highlights is to follow this guide bit by bit. There are numerous new highlights included ZF 2. 0 which makes it an extremely amazing asset for creating noteworthy web applications. One of the most significant increments is the propelled Event Manager and Cloud Infrastructure device gave in ZF 2. 0. There is a long way to go in this new component stuffed Framework. Next Post Contents: †¢ Displaying data to client How to interface pages together

How to Cope With a Toxic Relationship

How to Cope With a Toxic Relationship Stress Management Relationship Stress Print How to Cope With a Toxic Relationship By Elizabeth Scott, MS twitter Elizabeth Scott, MS, is a wellness coach specializing in stress management and quality of life, and the author of 8 Keys to Stress Management. Learn about our editorial policy Elizabeth Scott, MS Medically reviewed by Medically reviewed by Steven Gans, MD on January 24, 2019 Steven Gans, MD is board-certified in psychiatry and is an active supervisor, teacher, and mentor at Massachusetts General Hospital. Learn about our Medical Review Board Steven Gans, MD Updated on March 15, 2019 More in Stress Management Relationship Stress Effects on Health Management Techniques Situational Stress Job Stress Household Stress In This Article Table of Contents Expand Definition Dynamics Irritating Toxicity Narcissists View All Back To Top We can experience toxic relationships in our families, in the workplace, and  among friend groups.  They can be extremely stressful if the toxicity is not effectively managed. While they cannot always be avoided, toxic relationships can be managed with healthy boundaries, self-care, and above all, awareness. Here is what you should know about toxic relationships, including what makes a relationship toxic, how to detect if youre in one, and the most effective ways to manage the various types. Definition Toxic relationships can exist in just about any context, from the playground to the boardroom to the bedroom. A relationship is said to be toxic when your well-being is threatened, whether it is your emotional wellbeing, your psychological well-being, or even your physical wellbeing. Relationships that involve physical abuse are definitely classified as toxic. Relationships in which one person is consistently giving more than they are getting may be toxic as well, especially if the person who is giving more feels devalued and depleted because of it. In many cases, this person is unable to change the dynamic. Likewise, if you are in a relationship where you feel you are consistently not being respected or that your needs arent being met, you may feel a toll on your self-esteem over time. Relationships where you feel unsupported, misunderstood, overtly or subtly attacked, or in other ways demeaned can classify as toxic. On a basic level, any relationship that makes you feel worse rather than better can be toxic over time. Only you can tell if the bad outweighs the good in a relationship, but if someone consistently threatens your well-being by what they are doing or by what they are  not doing, its time to focus on solutions. Toxic Dynamics Not all relationships are toxic because of the other person. Sometimes its the way the two of you interact that brings out the worst in both of you. For example, you may have a competitive friend who pushes you to be your best, and you do the same for them. If you are both getting enjoyment out of the dynamic, this may be fine. However, if you are seeking someone who can validate your hard work with some emotional support and your friend is constantly putting you down, this may not be a healthy dynamic for you. Regardless of whether your friends intention is to put you down, this can be especially dangerous if you develop a spite-based competitive streak with this friend that is not enjoyable for you. Similarly, if you find that you are not your best self around someoneâ€"they might bring out the gossipy side of you, or they seem to draw out a mean streak you dont normally haveâ€"it could be that the two of you create toxicity together. How Bad Relationships Affect Your Health What to Do If you find yourself in a toxic relationship where you bring out the worst in one another (or simply fail to bring out the best), you may want to work on the relationship and change the dynamic, particularly if there are other benefits you are getting from the relationship. You may want to attempt to talk to the other person about it. Be assertive about your needs and feelings while also taking responsibility for your part in the situation. In these cases, it is often a good idea to discuss what you see as a problem and decide together if you want to change the dynamic and how. You may be able to change the way you interact so that you both begin to get your needs met in a better way as you bring out the best in one another. Assertive communication and healthier boundaries may be the key. Irritating Toxicity Not all toxic relationships are mutual. Some people can sap your energy with constant complaining or by seeing the glass as half-empty and constantly sharing this perspective with you. Some people feel the need to argue with others constantly, explain why they know better, or point out the flaws of others, which may or may not weigh on your patience. This person may act this way with everyone, and they are likely not even aware of their effect on others. They may not know healthier ways to communicate their need. It is likely that they do not know how to read social cues well enough to know when they are frustrating people or making them feel like they are not being heard. How to Deal With Stressful People What to Do You may simply want to limit your time spent with people who bring frustration or unhappiness into your life. You may, however, want to talk to them about your issues and see what happens. With people who lack self-awareness or social skills, it can be an exercise in futility to expect them to change. However, in smaller doses, they can go from being a toxic force in your life to a mere annoyance. If this person is someone you need to interact with, like a family member or co-worker, you may do better to limit interactions and try to nonconfrontationally stand up for yourself when the situation warrants it. Heavily Toxic People Some people, particularly narcissists (and their less common cousins, sociopaths) tend to feed off of other peoples attention and admiration. Narcissists feel a need to one-up people and make them feel less-than in a quest for feelings of superiority. They may intentionally put you down in subtle ways, throw little insults at you if you share an accomplishment you are proud of, or they may keep you guessing as to whether they will be nice to you from one day to the next. It is not always obvious whether they are aware of what they are doing, but if their behavior is consistently making you feel bad about yourself, it may not matter. The result is the same: Your unhappiness. Potential Solutions With a true narcissist or sociopath, or with anyone draining you of your well-being, the best solution is to put distance between yourself and them. You are probably not going to change them, and confronting them will only bring out their wrath without resolving anything. Narcissists, for instance, are notoriously bad at admitting fault because they truly do not believe that they make mistakes; they find it personally threatening to see themselves as less than perfect. In general, you may have tried and failed to discuss your feelings with the other person in your toxic relationship. Even if you are able to express yourself, it can feel as though your words fall on deaf ears. It is often best to distance yourself from this person, or at least accept that you need to be on your guard. This acceptance wont change them, but it can help minimize the stress of dealing with them. How to Recognize a Narcissist A Word From Verywell When dealing with any type of toxic relationship, the most important thing is your self-care, health, and well-being. If you are dealing with someone who drains you of your energy and happiness, it may be worth it to consider removing this person from your life, or at least limiting your time spent with them. If you are ever in a situation that presents a threat to you and your emotional or physical well-being, it is crucial to seek help from a professional or from friends and family as needed. How to Spot the Toxic People in Your Life

An evaluation of the business and financial performance of morrisons - Free Essay Example

Part 1 Project Objectives and Overall Research Approach 1.1 Introduction Markets across the world are gradually lifting themselves out of the doom and gloom of recession. Most markets in the UK have shown relative resiliency as they try and recover. Consumer spending and confidence have been fairly low due to adverse pressures created by the implementation of stringent fiscal and monetary policies by the government. The past couple of years have seen the worst effects of recession, hence businesses had to improvise and develop strategies which would focus on retaining existing customers while attracting new customers simultaneously. WM Morrison Supermarkets plc (herein after simply Morrison) has been a success story amidst all the large scale corporate failure and has managed to remain profitable while its competitors and businesses in general have struggled a great deal. Morrisons was founded by William Morrison in 1899, operating as an egg and butter stall in Bradford, North West England. From its humble beginning Morrisons grew rapidly both in terms of its size and its product portfolio. It was only in 1967 that Morrisons was first floated on the London Stock Exchange. As per TNSglobal.com (Nov 08) Morrisons accounted for 11.8% of the total retail supermarket share in the year 2008, making it the smallest of the big four supermarkets. Morrisons operated predominantly in Northern England and it was only in 2004 that Morrisons expanded its operations in the southern part of the UK through the acquisition of Safeway superstores. Further, as per the Annual Statements published in 2010, Morrisons turnover stood at 15.4bn which was generated from 420 superstores all across the UK. Morrisons operates entirely in the UK market. 1.2 Reasons for choosing the topic Morrisons mission statement which states Keeping things simple has often fascinated me as to how could such a massive organisation operate effectively by keeping things simple at all times. Therefore I choose to analyse the financial statements of Morrisons PLC over a three year period which would provide me answers to my personal curiosities whilst also completing an important research report in my academic career. Most of the knowledge required to compile the research report was acquired through my ACCA studies but this report took me one step further as it provided me with a platform from where I could apply my knowledge in a real life scenario. 1.3 Project Objectives This project report aims to achieve the following objectives: Analysis of the business and financial performance of Morrison PLC over a period of three years i.e. from the 1st of February 2007 to 31st of January 2010. A reflective analysis of the year on year performance of Morrison PLC with critical analysis of the effectiveness of current business strategies and their adequacy to deal with future business and market challenges. Evaluation of Morrisons competitive market position in comparison with its major competitors (with particular emphasis on J Sainsbury PLC, herein after simply Sinsburys). 1.4 Research Questions The project report aims to answer the following research questions: Effectiveness of Morrisons operational and financial strategies over the three year period in review. How well did Morrison perform in comparison to its major competitors (through the use of analytical analysis tools such as ratio analysis)? 1.5 Research Approach Following is the research methodology adopted while compiling this research report: Evaluating Morrisons business performance through the use of business models such as PESTEL, SWOT and Porters 5 forces. Comparative analysis of Morrisons PLC financial statements through the calculation of key ratios such as: profitability, liquidity, gearing, investor returns and efficiency. Accessing Morrisons competitive position with its major competitors (mainly Sainsburys) through the ratios calculated. Part 2 Information Gathering and Accounting/ Business techniques 2.1 Sources of Information 2.1.1 Annual Reports and Summary of Financial Statements The main source of information utilised for compiling the research and analysis report was the annual statements of Morrison PLC. The annual reports consisted of all the relevant financial information for ratio analysis. 2.1.2 Books on interpretation of Financial and Business Data Numerous business study books and articles were read to mainly understand the scope of business analyses models and their effectiveness in analysing Morrisons performance for the last three years. Books were also consulted to ascertain key ratios and comprehend them. I also had to understand what the ratios meant in the retail supermarket sector and realise the limitation of ratio analyses. 2.1.3 Media and Internet sources Electronic and print media were the most important sources of information. The annual statements were downloaded from the internet and expert views on Morrisons performance were consulted from the Financial Times and other authentic business journals. 2.2 Methods used in collecting information The entire research is based on secondary data (i.e. data collected by someone else for their own purposes). The reasons for basing the research upon secondary resources were that no obligation to conduct primary research and the limited time period in which the research had to be conducted and then the compilation of the report. Almost all the literature reviewed and consulted was done with certain amount of scepticism (critical review) so at to ensure that the information collected presented a balanced overview. Therefore the research data was collected from various sources. Internal management view was ascertained from the detailed annual statements, as the directors are responsible for producing such documents. A standard unqualified opinion by the auditors gave further authenticity to the financial information on which almost the entire report is based. As Morrison is also a constituent of London Stock Exchange independent media and expert views were available providing key insight in the companys past and present performance and the future outlook. 2.3 Limitations of information gathering As mentioned in the earlier sections of the report the research was entirely based on secondary data therefore a very slight possibility remains that the data might have been inaccurate and unreliable. Even though the research data has been very carefully selected the chances of error remain but the majority of the work can be deemed authentic and accurate. Further, the amount of information available through various resources was immense and therefore impractical to critically review all of it which might indicate that certain key information was either missed or overlooked. Almost all the information in the annual statement is historical in nature and therefore just reviewing past performances might not truly reflect present and future expectations. 2.4 Explanation of the accounting and/or business techniques The research report focuses on evaluating the business and financial performance of Morrison over a period of 3 years. The financial side of the evaluation will be done through the use of key performance related ratios, whilst the business performance will be examined through PESTEL, SWOT and Porters 5 forces models to evaluate macro and micro activities of the business. 2.4.1 Business Performance 2.4.1.1 PESTEL analysis PESTEL is abbreviated for Political, Economical, Social, Technological, Environmental and Legal framework. According to Johnson et al. (2008)[1] it involves an examination of the macro environment of an organisation with a view to identifying the factors that might affect a number of vital variables that are likely to influence the organisations supply and demand levels and its costs. 2.4.1.2 SWOT Analysis Johnson et al (2008) states that SWOT analysis is used to appraise the companys internal strengths, weaknesses, external opportunities and threats. Strengths and weaknesses are usually associated from processes within the company and opportunities and threats arise from factors outside the companys control. 2.4.1.3 Porters 5 Forces Analysis Porter (1980) states that it is essential for companies to have a detailed knowledge of competitors influence on the market and that if a company considers the five competitive forces it will be able to appreciate the structure of its industry and thereby be able to put itself in a position to withstand competitor pressure. 2.4.2 Financial Performance: 2.4.2.1 Ratio Analysis Financial ratios can be calculated by comparing two figures in the accounts which are inter-related in some way. The following ratios will be used to evaluate and analyse the financial performance of Morrison: 2.4.2.2 Liquidity Ratios BPP (2009) states that liquidity ratios illustrate the solvency of a business i.e. whether it is in a position to repay its short term debts. They focus on short term assets and liabilities. Creditors are likely to be interested in liquidity ratios to assess whether they will receive the money that they are owed. The ratios that will be calculated under this category are: * Current Ratio= current assets/ current liabilities, Providers of short term credit prefer a high current ratio. * Quick Ratio= current assets-inventory/ current liability Also commonly known as acid test ratio, it is a more severe test of liquidity as it does not include inventory as a liquid asset as they are not guaranteed to be sold, they may become obsolete or deteriorate. 2.4.2.3 Profitability Ratios According to BPP (2009) stakeholders such as shareholders, owners, managers, employers and potential investors are all likely to be interested in the profitability and efficiency of a business. The ratios calculated under this category will be: * Return on Capital Employed= profit before interest and tax/ capital employed The ROCE relates to the profit generated from operating activities with the capital employed. Capital employed is generally the net assets of the company and is also referred to as shareholders fund plus long term borrowings. * Gross profit margin= gross profit/sales * 100% Shows the gross profit made on sales turnover. * Net profit margin= net profit/sales * 100% The ratio helps to measure how well a business is controlling its overheads. 2.4.2.4 Activity/ Efficiency ratios BPP (2009) states that activity or asset utilisation ratios allow a business to measure how effectively it uses its resources. The ratios that would be calculated under this category will be: * Receivables Turnover = credit sales/ trade receivables * Receivables period = receivables/ sales * 365days Receivables turnover and receivables period would be used to assess time taken by Morrisons to reclaim its short term debt on average. * Inventory Turnover = cost of sales/ inventory According to BPP (2009) this ratio measures the number of times during the year a business sells the value of its stocks * Inventory holding period = inventory/ cost of sales * 365days Stock turnover can be expressed in terms of the number of days it takes to sell inventory. 2.4.2.5 Gearing Ratio BPP (2009) states that the gearing ratio looks at the balance of funding in the capital structure of a business. Under this category the ratios that will be calculated are following: * Debt-equity ratio = total debt/ total equity This ratio establishes the total amount of shareholders fund (equity capital) in comparison to the total amount of borrowed capital (i.e. long term loans). * Interest cover = profit before tax and interest/ interest payable According to BPP (2009) the gearing ratio (i.e. debt-equity ratio) is a statement of financial position measure of financial risk. Interest cover is an income statement measure. The ratio assesses the businesss ability to pay interest by comparing profit and interest payments. 2.4.2.6 Investors Ratio Investors are interested in the returns or dividends they may get from holding shares. BPP (2009) states that a number of ratios can be used to measure these returns. The following ratios will be calculated under this category: * EPS= profit available to shareholders/ no. of shares ranked for dividend BPP (2009) defines EPS as a measure of how much each share is earning. It reflects how much is available to be paid to shareholders. * Price Earnings ratio= share price/ earnings per share According to BPP (2009) the price/earnings ratio is said to reflect the confidence shown in the company It shows how many years, at current earnings, it will take an investor to recover the cost of the share. * Dividend Yield= dividend per share/ market price * 100% BPP (2009) defines the dividend yield ratio as a measure of the value of the return on share for an investor. It shows the dividend per share as a percentage of the market price. 2.5 Limitation of ratio analysis BPP (2009) states that ratio analysis is not necessarily a complete measure of assessing a company financial performance. Limitations that can be associated with ratio analysis are as follows: Accounting principles followed whilst preparing financial statements should represent a true and fair reflection of the company and should be consistently applied over a period of time. Ratio analysis looses its credibility when management deliberately uses accounting policies to manipulate financial statements. Businesses are faced with unique risks even though they operate in the same industry. Hence the way businesses deal with there risks vary, limiting the scope of ratio analysis. BPP (2009) states that ratios on their own are meaningless. They have to be used as a benchmark to compare performance of the organisation against a similar company operating in a similar industry. Certain ratios are of a subjective nature therefore having standard definitions and formulae might not always be possible. Macroeconomic factors such as inflation rates, interest rates, changes in accounting policies and procedures are not accounted for when calculating ratios. Ratios also fail to recognise changes in corporate strategy and risk exposure of the company. 2.6 Limitation of SWOT / PESTEL / Porters Five Forces Results of SWOT analysis cannot be standardised as a threat for one organisation can be an opportunity for the other in a completely different environment. * One of the main disadvantages, as described by Dess et al (2004), is that SWOT analysis is primarily a static assessment. It focuses too much of a firms attention on one moment in time. Hence a SWOT analysis may ignore changing circumstances. * SWOT, PESTEL or Porters 5 Forces   does not describe factors in terms of quantitative performance indicators. Part 3 Results, Analysis, Conclusions and Recommendations. 3.1 PESTEL analysis 3.1.1 P- POLITICAL As per the Annual Statement (2010) Morrisons did not make any political donation which is the Group policy. However this does not mean that Morrisons operation are not affected by the political decisions made by the government in the UK. Consumer spending power, both in the long and the short term are dictated by the governments fiscal and monetary policies. The UK economy like most other global economies suffered adversely due to the global recession which was directly linked with the global credit crunch crisis. During tough economic times consumer spending power is generally low due to soaring unemployment and uncertainty in the economic environment. Government in the UK has taken important measures to stimulate growth such as reducing VAT (indirect taxation) from 17.5% to 15% in the year ending December 2009, quantitative easing (i.e. pumping money in to the economy) and keeping interest rates low, encouraging people to spend rather than save. Morrisons activities in the retail supermarket industry are regulated by the Competition Commission which keeps a close eye on the activities of the so called big four supermarkets. This ensures that supermarkets do not enter in to price wars or collude to fix prices. Morrisons is also bound by UK and European legislations such as Health and Safety at work Act and National Minimum wage Act. Morrisons cannot legislate for changes in government policy but should pre-empt decisions and ensure that it is ready to face challenges which might result from changes in government policies. But it is safe to assume that Morrisons operates within a very coherent political set up and faces no barriers to trade due to governments political decision making. 3.1.2 E- Economical Morrison operates only within the UK retail supermarket industry and is therefore directly affected by the macroeconomic environment. The UK economy has been under recession over the past few years, which means contraction in the economy, leading to unemployment and weak consumer spending power due to reduction in disposable income. The direct affect of this is that customers look for bargain shopping rather than spending on premium quality products. But as Morrison operates in the retail grocery market the demand for most of its products remains largely in-elastic due to the fact that people have to feed themselves and provide for their daily needs no matter how hard their budgets are squeezed. Additionally people tend to buy food from supermarkets and eat at home rather than spending money in restaurants. Morrison has massively improved its own brand products which offer value for money and appeals to consumers who are willing to buy bargain products rather than premium quality products especially during tough economic times. Annual Statement (2010) states Sales of our own label Value range grew by 34% as consumers tightened their belts in a challenging economic environment. The following table taken from the Annual Statement 2010 further illustrates how Morrisons has consolidated its position in the UK market during the past few years: Therefore it can concluded on the basis of the above figures that Morrisons was able to enhance its position with the retail supermarket industry during adverse economic climate due to the fact it was able to supply quality products at modest prices than its competitors. 3.2.3 S- Social The social trend in UKs grocery market is that families shop almost regularly every week, mostly on the weekends targeting large supermarkets which provide them with all their family requirements under one roof. As stated in the Annual Statement 2010 Morrisons operates from 425 mega stores all across the UK catering towards the social trend of the market. Furthermore there is an ever growing emphasis towards health eating and a sustained fight against obesity. People are getting more and more conscious about what they eat. Morrisons remained a step ahead of its social demands and re-launched its Eat Smart product range and as per the Annual statement (2010 pg 21) Sales were up by 7% reflecting consumers continuing demand for a healthier diet and their concern over the nutritional value of the food they eat. 3.2.4 T- Technology Businesses across the UK are spending heavily on technological advancements, in order to gain competitive advantage over their competitors. Customers in the grocery market are increasingly using the internet to shop for their grocery needs therefore Morrisons has developed a very efficient (website) and robust (delivery system) mechanism to cater for such customers. Morrison has also launched self service check-outs in almost all of its large supermarkets resulting in improved customer service (i.e. decrease in waiting time to be served) subsequently increasing sales. Morrison is also rolling out the use of Voice-picking technology across all its grocery warehouses which has proved particularly successful in increasing depot productivity and pick accuracy and hence improving in-store product availability. (Grocerytrader, 2011) 3.2.5 E- Environmental Businesses across the world are under intense pressure to reduce their carbon footprints on the environment and adopt eco-friendly and sustainable processes. Morrisons thoroughly understands its environmental responsibility and has taken important steps to reduce its carbon footprints and subsequently become GREENER. Below is a graphical representation of decrease in Morrisons carbon footprint as stated in their Annual Review 2010 (pg14) (Source Morrison Annual Review 2010, pg 14) Morrison Annual Report and Financial Statements (2010) states that during the year, free reusable bags were issued to customers, and as a result of this and other initiatives carrier bag consumption was reduced by 126 million bags.   Morrisons during 2010 also completed the conversion of filling station pumps to highly efficient vapour recovery pumps which emit much reduced levels of fuel vapour in to the atmosphere. Morrisons Halifax store was awarded an excellent rating from the Building Research Establishment Environmental Assessment Method indicating as to how much Morrison regards the environment in which it operates. (Morrisons, 2011) 3.2.6 L- Legal Morrison is obliged to operate in accordance with the British and European law. It has to ensure that labour and employment laws are not compromised in handling staff affairs. Any violation would result in expensive lawsuits and negative publicity. Morrison has to satisfy the minimum wage requirements. 3.3 SWOT analysis: 3.3.1 S- Strengths: Morrison has been regarded as one of the best providers of fresh quality food items. Morrisons business strategy of being the The food specialist for everyone distinguishes it from other grocery chains. Morrison takes immense pride in the provision of quality fresh food which is prepared in-store. This allows customers to choose from a variety of fresh food items such as: baked bread, meat cut to order, fish, seasonal deli selections and a range of delicious cakes and treats. Such diverse fresh food range is a major strength of Morrison and is also widely acknowledged by its customer base. Following is an illustration of the three distinct brand values of Morrison that strengthen their vision as stated in Annual Statement 2010 (pg 6): (Source Morrison Annual Review 2010, pg 6) As it is evident from the above diagram, Morrisons overall business strategy of Keeping things simple allows Morrison to concentrate on its historical strengths which is providing fresh quality food at reasonable prices. 3.3.2 W- Weaknesses: Morrison only expanded its operation in the Southern part of the UK in 2004 after the acquisition of Safeway superstores and still heavily relies on the Northern part of the UK which accounts for the major chunk of the sales revenue (55%). This leaves Morrison vulnerable to any adverse fluctuations in the economic activity of the Northern part of the UK. The following illustration taken from Annual Statement 2010 (pg 7, Courtesy Kantar World panel) depicts Morrisons market share by geographical region in the UK: (Source Morrison Annual Review 2010, pg 5) Morrison does not operate a loyalty scheme which rewards customers for shopping repeatedly in Morrison stores. This is a major weakness as some of the other loyalty schemes operated by competitors such as Tesco (Tesco Club card) and Sainsburys (Nectar Card) are able to attract secondary shoppers and retain primary shoppers through attractive rewards. Morrison at present largely operates through megastores whereas its competitors are increasingly investing in smaller convenience stores which are able to cater for local businesses and day to day shopping requirements. Tesco, Sainsburys and ASDA are increasingly capturing the local convenience stores market and if Morrison does not follow suit it risks losing a major chunk of the grocery market to its competitors. Morrison only operates in the UK market. Its main competitors ASDA and TESCO operate globally and are in a better position to offset their UK losses against any foreign gains whereas Morrison will have to bear the losses. The current recession indicated that developing economies such as India, Brazil and China were still posting strong growth patterns whereas the UK economy might be heading towards a double dip recession which would further dent Morrisons profitability. 3.3.3 O- Opportunities Morrison can further improve on its own brand products. In 2010 sales of own brand products were up by 34% indicating strong growth. During tough economic times customers tend to buy value for money products rather than premium quality products. Morrison can cater for such customers and further improve its revenues. E-commerce is increasingly becoming socially popular and more and more people are shopping for their grocery needs on-line. Morrison can improve its website and develop a more robust delivery system. Hence it can improve on its revenues and market share. Morrison should expand its operations in to lucrative developing economies and take its trusted brand over to countries such as India, China, Russia and Brazil and further consolidate its position as a highly trusted supplier of quality fresh food products. 3.3.4 T- Threats As the current UK government aims to reduce budget deficit it is introducing austerity measures and has also increased VAT (from 17.5% to 20%), putting more pressure on disposable income. Many experts fear a double-dip recession which might prove disastrous for businesses in the UK. Morrison has to ensure it remains a step ahead and continues to provide products which offer value for money or otherwise will risk losing sales and its market share to its competitors. This is validated by the fact that there has been a significant increase in demand of value goods compared to premium goods. (Source Morrison Annual Report and Financial Statements 2009, pg 16) Morrison so far seems reluctant to expand through convenience stores and depends largely on opening new megastores. There remains an imminent threat that Morrison might fail to seek planning permission from local authorities and might fail to expand. But however this further advocate towards the fact that Morrison should look to expand through both megastores and convenience stores. As per the TNS report of December 2008 the market was affected from the ALDI effect, this meant people were hunting for bargain products rather than quality products at premium pricing. Even though discount brands such as LIDL and ALDI represent a very small segment of the market Morrison should remain vigilant of their presence as they can easily erode in to Morrisons market share. (Source: https://adage.com/article/news/u-k-supermarket-chains-feel-aldi-effect/131086/, Accessed 20th March 2011) 3.4 Porters Five Forces 3.4.1 Threat of new entrants The threat of new entrants in to the UK retail grocery market remains largely low due to the massive amount of capital outlay required and the power of the existing so called big-four. TESCO, ASDA, Sainsburys and Morrisons operate very powerful marketing and advertisement campaigns making it very difficult for new entrants to gain a foot hold in the market. Following is a diagrammatic illustration of the big four dominance in the UK market: (Source Morrison Annual Review 2010, pg 5) Furthermore supermarket giants like TESCO and Sainsburys operate a very sophisticated and rewarding loyalty schemes. This ensures that customers stay loyal and do not switch to other brands. Large supermarket chains such as Morrison are able to offer significant price reductions and a large product portfolio. This also acts as a significant barrier to entry. Even though the threat of new entrants is low, Morrison has to be proactive to new competition and steps should be taken to neutralise their affect on the market.   3.4.2 Bargaining power of suppliers According to the Competition Commission report published in 2008 suppliers in the grocery/retail sector have little or no influence on the big four supermarket chains. The reason for such lack of influence is that supermarket chains such as Morrison can achieve a high volume of turnover on a very short period of time and therefore can dictate product prices to their suppliers. Suppliers have little or no choice but to enter in to such agreements with large supermarkets as they ensure regular cash-inflows and large orders. (Source: https://www.competition-commission.org.uk/rep_pub/reports/2008/538grocery.htm, Accessed 27th March 2011) Morrison ensures that it has a very cordial relationship with all its suppliers as the products they supply are of a paramount importance to the Morrisons brand name. As per Morrisons (2010 pg 13) the board adopts a policy which is to be fair and honest in dealings with farmers and suppliers. As of 2010 Morrisons average credit period stood at 29 days as compared to 33 days in 2009. Suppliers who constantly ensure quality products are supplied on time are given necessary incentives. 3.4.3 Bargaining power of customers The bargaining power of customers in the retail grocery market remains significantly high. Although the customers are not in a position to directly affect the price of an individual product but due to readily available alternatives they can alienate Morrison without any prejudice or prior notice. Therefore Morrisons has to remain very proactive when forecasting market trends and should always try and innovate ways through which it can look after its customers. 3.4.4 Threat of substitutes The threat of substitute products and retailers is significantly high as cost of switching products or suppliers is virtually non-existent. Customers in the retail grocery market do not follow a predictive trend and get disillusioned very quickly ,without any specific reason. Morrisons business strategy of Keeping things Simple and being the Food Specialist goes a long way in attracting customers to its megastores all across the UK. But regular incentives such Eat Healthy, Special Offers and Discounts should also be utilized to attract new and retain existing customers. 3.4.5 Rivalry amongst competitors Rivalry amongst the top-four competitors remains very aggressive and direct. Apart from the direct competition from the big four Morrison should also be vary of local (Iceland) and European (ALDI and LIDL) discount brands as they can also erode in to Morrisons market through aggressive pricing policies. Even though customers buying patterns are unpredictable but generally during tough economic times customers tend to hunt for bargains and therefore are prone to be attracted towards discount brands but Morrison should further diversify its own brand range and cater for such customers. As Morrison solely focuses on the provision of fresh quality food items it can eliminate aggressive rivalry by further improving on product quality and pricing. 3.5 Ratio Analysis Ratios on their own are meaningless and provide little information unless they are benchmarked against something appropriate. Therefore Morrisons ratio will be benchmarked against Sainsburys as it represents a major competitor and operates within the same industry facing similar kind of risks and rewards. Morrisons ratio will also be compared with previous year figure in order to achieve a relative trend in the financial performance over the past three years 3.5.1 Liquidity Ratios 2008 2009 2010 Morrison Liquidity Ratios Current Ratio   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   0.49   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   0.53   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   0.51 Acid test Ratio   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   0.25   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   0.28   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   0.24 Sainsburys Liquidity Ratios Current ratio 0.62 0.54 0.64 Acid test Ratio 0.36 0.30 0.39 3.5.1.1 Current Ratio An increasing trend can be observed in Morrisons current ratio from 2008 to 2010(Appendix C). The current ratio indicates the ability of Morrisons PLC to pay its short term liabilities from its short term assets. On the contrary Sainsburys current ratio has seen a see-saw effect going from 0.62 to 0.54 to 0.64 from 2008 to 2010(Appendix F). It is also worth considering that Morrisons operates almost entirely on cash and carry business approach and also adopts a very aggressive selling approach therefore little inventory is left over. 3.5.1.2 Acid Test Ratio Acid Test ratio of both companies reveal a similar trend as the current ratio:   a small increase in 2009 for Morrison and a small dip in 2009 for Sainsburys. Acid test ratio is a much more stringent test of liquidity as it removes stock or inventory from the calculations in order to reveal the instant solvency of Morrison / Sainsburys. The numbers represent the fact that the stock constitutes almost 50% of the current assets (577/1094=53%) in the three years on average which fulfils Morrisons sales intensive approach. This also points out towards the fact that almost all goods sold are financed by creditors (i.e. suppliers). 3.5.1.3 Reasoning The decrease in the current and acid test ratio of Morrison from 2009 to 2010 can be attributed to the increase in financial liabilities from 1 m in 2009 to 213 m in 2010. This increase in bank loans has been due to aggressive expanding strategy of Morrison where they have opened 19 new Co-op/Somerfield Stores in the first half of 2010. (Source Morrison Annual Report and Financial Statements 2010, pg 60) Opening new stores does require a large capital expenditure hence increasing gearing ratio, but this also means that more cash is required to buy stocks that will be sold in those supermarkets.   From 2007 to 2010 Morrison has opened a total of 57 new stores nationwide under their strategy of National to Nationwide. The following picture explains the increase in Morrison stores from 2007 to 2010: (Source Morrison Annual Report and Financial Statements 2010, pg 7) 3.5.2 Profitability Ratios 2008 2009 2010 Morrison Profitability Ratios Return on capital employed (ROCE) 13.98% 14.85% 18.33% Gross Profit Margin 6.31% 6.28% 6.89% Net Profit Margin 4.72% 4.62% 5.89% Sainsburys Profitability Ratios Return on capital employed (ROCE) 10.74% 15.38% 14.30% Gross Profit Margin 5.62% 5.48% 5.42% Net Profit Margin 2.97% 3.56% 3.56% 3.5.2.1 Return on Capital employed Morrisons return on capital employed has increased from 2008 to 2010 from 13.98% to 18.33% (Appendix C). Comparatively Sainsburys ROCE has only increased marginally from 10.74% to 14.30 in the years 2008 to 2010 (Appendix F). The ROCE indicates the percentage of profit made on capital invested; hence a higher value of ROCE indicates efficient use of capital and a lower value vice versa. Morrisons average ROCE for 2008 to 2010 is 15.72% and that of Sainsburys is 13.47%, revealing more profitability in Morrison. The improvement in Morrisons ROCE is good news for both existing and potential shareholders. 3.5.2.3 Gross Profit margin Morrisons gross profit margin (GPM) was calculated as 6.31%, 6.28% and 6.89% for 2008, 2009 and 2010 respectively (Appendix C). Gross profit margin indicates the profit margin achieved by Morrisons on it sales revenue after deducting direct costs. Sainsburys on the other hand had a GPM of 5.62%, 5.48% and 5.42% in 2008, 2009 and 2010 respectively(Appendix F). This indicates Morrisons has adopted a much stringent cost control mechanism, compared to Sainsbury, while being profitable at the same time. 3.5.2.4 Net Profit Margin Morrisons net profit margin (NPM) has increased from 4.72% in 2008 to 5.89% in 2010(Appendix C). The increase in NPM of Morrisons in 2010 can be largely attributable to reduction in administrative (overhead) expenses. This is achieved by minimising waste and maximising efficiency in individual cost centres. 3.5.2.5 Reasoning One of the main reasons for the increase in the profitability of Morrisons is its ever increasing market share that has been climbing from 11.9% in 2007 to 12.6% in 2010. As per Morrisons Annual Report and Financial statements 2010 total average basket sizes increased by 2.4% and customer numbers were up 6.7%. On average 10.5m customers are now visiting our stores each week This is confirmed by the fact that the UK grocery market has increased by 4.7% in 2009/10 and in that increase Morrisons percentage increase has been 9.1%. (Annual Report and Financial Statement 2010, pg 5) 3.5.3 Efficiency Ratios 2008 2009 2010 Morrison Efficiency Ratios Receivable turnover (times)   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   65.17   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   59.30   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   76.67 Receivable collection period (days)   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   5.60   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   6.16   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   4.76 Inventory turnover times   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   29.34   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   29.41   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   26.71 Inventory turnover in days   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   12.44   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   12.41   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   13.67 Sainsburys Efficiency Ratios Receivable turnover (times) 86.59 96.98 92.86 Receivable collection period (days) 4.22 3.76 3.93 Inventory turnover times 26.19 27.45 28.44 Inventory turnover in days 13.94 13.30 12.83 3.5.3.1 Receivable turnover and receivable collection days Morrisons receivable collection days has decreased from 5.6 to 4.76 in the years 2008 to 2010(Appendix C). This is because Morrisons rarely sells its grocery and food products on credit. Hence the amount of receivables and the time taken to recover the receivables is low. In comparison while Morrisons receivable period averaged 5.51 days that of Sainsburys averaged 3.97 days(Appendix C and F). 3.5.3.2 Inventory turnover The inventory turnover in times has of Morrisons has decreased from 29.34 to 26.71 times in the years 2008 to 2009(Appendix C). On the contrary that of Sainsburys has seen the opposite effect of increasing from 26.19 to 28.00 times(Appendix F).   3.5.3.3 Reasoning The decrease in the receivable days indicates efficient credit control procedures. The advantage of having a lower value for this ratio is that, the lower it is the more Morrison can invest and earn interest or pay up their trade creditors. The decrease in the inventory turnover days can lead to the conclusion that since 2008 to 2010, either Morrison has raised its price or their customers have started buying more premium products. This observation can be supported by Morrisons claim that the sales growths of their value products have seen a dip in 2009 with growth in their premium products as UK tries to come out of recession. (Source: Annual Report and Financial Statements 2010 , Morrison, pg 5) 3.5.4 Gearing Ratios 2008 2009 2010 Morrison Gearing Ratios Gearing   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   0.32   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   0.37   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   0.34 Interest Cover (times)   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   10.20   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   11.18   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   15.12 Sainsburys Gearing Ratios Gearing 0.41 0.50 0.47 Interest Cover (times) 4.02 4.55 4.80 3.5.4.1 Debt/equity ratio Morrisons gearing stood at 34% in 2010, 37% in 2009, and 32% in 2008(Appendix C). This indicates that the companys operations are funded largely by equity capital rather than debt capital. It also means that for every 1 invested by the equity holders 0.34 pence were invested by borrowed capital. Sainsburys gearing on the other hand was calculated as 47% in 2010 and 50% in 2009(Appendix F) 3.5.4.2 Interest Cover This was calculated as 15.12 times in 2010 and 11.12 times in 2009(Appendix C). The relative stability in interest cover ratio is very encouraging and guarantees a good credit rating for the company before its financiers. 3.5.4.3 Reasoning Even though Morrisons gearing is in line with industry expectations but it can be argued that borrowed capital is easier than raising capital. Morrisons net debt has increased significantly during the past three years as depicted above. The small increase in 2009 is due to organic growth of Morrison in 2009, where they opened 11 organic stores and 34 former Co-op/Somerfield stores opened (preliminary results 31 January 2010). This led to Morrisons taking in heavy long term loans hence increasing their gearing ratio in 2009. (Source: Annual Report and Financial Statements 2010, Morrison, pg 25) 3.5.5 Investors Ratios 2008 2009 2010 Morrison Investor Ratio Earnings per share (pence)   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   20.79   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   17.39   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   22.80 Price/earnings ratio   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   13.90   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   15.57   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   13.13 Dividend per share (pence)   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   4.80   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   5.80   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   8.20 Dividend Yield 1.66% 2.14% 2.74% Sainsburys Investor Ratio Earnings per share (pence) 19.14 16.62 32.10 Price/earnings ratio 19.69 17.63 10.45 Dividend per share (pence) 11.4 13.2 14.2 Dividend Yield 3.02% 4.51% 4.24% 3.5.5.1 Earnings per share Morrisons earnings per share were calculated as 22.8, 17.4 and 20.8 pence for 2010, 2009 and 2008 effectively(Appendix C). After a slight dip in 2009 which meant shareholders were losing on their wealth Morrisons has posted a strong EPS in 2010 indicating to its equity shareholders that they will increase their wealth if they continue to invest in Morrison. Comparing that to Sainsburys EPS, we can see an immense increase in its value from 2008 to 2010(Appendix F). 3.5.5.2 Price earnings ratio Price/earnings ratio indicates the amount of time in years it would take Morrisons equity shareholder to recover their investment at current earnings. Morrisons PE ratio was calculated as 13.13, 15.57 and 13.90 times in 2010, 2009 and 2008(Appendix C). The decrease in PE ratio could be largely attributable to the fall in share prices as a result of uncertainty faced by the investors in both the UK and global markets. A similar trend is observed in the P/E ratio of Sainsburys from 2008 to 2010(Appendix F). 3.5.5.3 Dividend Yield Morrisons dividend yield was calculated as 2.74, 2.14 and 1.66% in 2010, 2009 and 2008(Appendix C). After retaining profits in 2009 and 2008 Morrisons is willing to give more profits as dividends to its equity shareholders. It must be noted that profits retained are utilised for business development and expansion. 3.5.5.4 Reasoning The dip in 2009 could be largely attributed to very tough business environment which meant contraction in demand and consumer purchase power. Although a decrease in EPS and P/E ratio is observed Morrisons dividend Yield has increased significantly from 1.66% to 2.74%(Appendix C). This can be confirmed by the diagram below from its Annual report and financial statements 2010. (Annual Report and Financial Statements 2009, pg15) The following graph portrays Morrisons share price compared to Sainburys and its other competitors. 3.6 Conclusion and Recommendations Morrisons financial and business analysis presents a very healthy position. Morrisons key ratios present a very good picture to both its existing and potential shareholders. Morrisons is also improving on its year on year profits and liquidity figures. In terms of macro business environment Morrison operates in a very cordial and coherent infrastructure which supports growth and competition which are vital to improve effectiveness and efficiency. Government in the UK is taking positive measures to enhance economic growth and improve customer purchasing power. Morrisons has been strong during the recession and should consolidate its position further when the UK economy shows signs of growth. Morrisons has always been true to its traditions and despite the temptations to diversify in non-food products it continues to remain resilient and offers best quality fresh food to its customers. Morrisons at present only operates in the UK market and has only recently diversified its business in the southern part of the country. They are a trusted brand in North of England but hard work and dedication is required to acquire such status in other parts of the country. They also face stiff competition from rival retailers such as Tesco, Sainsburys and ASDA in the UK market. Therefore Morrisons should aim to diversify its business into lucrative developing markets such as China, Russia and India. The opportunities in these markets are enormous and through the use of the right product mix and advertising campaigns Morrisons can further improve its profitability.