Limited Liability Essay -- Business Finance

The term â€Å"Limited liability† is generally used to describe a situation where a person is excused entirely or in part from incurring a debt after taking an action which would have required under the prevailing rules of the legal system that they pay money. The doctrine of limited liability as it relates to corporate law is central to the principle that a company upon incorporation assumes a corporate personality independent of its members. This means that a new legal person is created at law and accordingly has its own assets, liabilities and rights, inter alia, to enter into and be bound by its own contracts. In some respects, the name, â€Å"Limited liability† Company is greatly misunderstood. It is a common faux pas to think that the liability of the company for its various debts is limited and that the doctrine was created as a loophole by which the company can get out of its contractual obligations. This is however not the case as on the occasion of insolvency, a company must liquidate all its assets to meet the demands of the creditors. Where the value of these assets is insufficient, the company will call on the unpaid share capital of its members or the amount which they have agreed to contribute to the assets of the company in an event of it being wound up . It is the liability of these members that is limited and not that of the company. There are also exceptional circumstances where courts will allow creditors pierce the â€Å"corporate veil† making it mandatory for shareholders to satisfy creditors’ claims. Hence for the shareholder, limited liability mea ns participation in a company with limited risk. For the creditor however, it means the very real risk that in the event of bankruptcy he could remain unpaid for g... ...panies and subsidiaries- The corporate veil [1991] company Lawyer 12(1) pp 16-17 Ireland P (2010), â€Å" Limited liability, shareholder rights and the problem of corporate irresponsibility†, Cambridge journal of Economics, vol 34, pp837-856 Ibid Hatfield was one of a long series of fatal rail accidents in which Rail track’s working practices and safety record was implicated. Blankenburg,S and Plesch, D (2007) â€Å"Corporate rights and responsibilities: restoring legal accountability† Retrieved on 12th of February 2012 from http://www.stwr.org/multinational-corporations/corporate-rights and responsibilities- restoring-legal-accountability-html Ireland P (2010), â€Å" Limited liability, shareholder rights and the problem of corporate irresponsibility†, Cambridge journal of Economics, vol 34, pp837-856 ibid ibid

Generally Accepted Accounting Principles (U.S. GAAP) Essay

The United States Generally Accepted Accounting Principles (U.S. GAAP) and the International Financial Reporting Standards (IFRS) are both effective ways to report financially account for one’s business assets but they have several differences. in this paper I will attempt to outline a few of the more significant differences and allow you to make up your mind as to which of these two systems is the better one. The first difference that is widely accepted between the two methods is that U.S. GAAP is rules based and IFRS is principle based. This means that IFRS allows more for adaption of the circumstances and allows for professional judgment while U.S. GAAP is more stringent and less forgiving. The argument back and forth is that the rules for U.S. GAPP are too large and broad stroked which doesn’t allow for different odd situations, while it is argued that the IFRS is too biased which can allow for too much manipulation. A primary difference between the U.S. GAAP and the IFRS is the way the business financial statements report the value of the company’s property and holdings. The U.S. GAAP method utilizes the Historic Cost Principle (HCP) while the IFRS uses the Fair Market Value (FMV). Under the HCP the asset owned by the company if forever recorded at the price for which it was initially purchased while the FMV approach allows for a periodic re-assessment of the current value of the asset. This has both positive and negative effects based on the economy and the housing market. Over time you would expect that the value of property to rise, for example if a company had bought my parents 2 bedroom home for the listed price of $19,500 in 1980 knowing that the same house is now appraised at $105,000 then it would be beneficial to re appraise the house under the FMV as the asset is worth a lot more than the original $19,500. The down side for using the FMV would have been in 2009 when the housing market collapsed. At that point the house was appraised at $87,000. If the year prior the company recorded its asset at $105,000 then it would have taken a loss when the house was reappraised. So you can see that utilizing the FMV in this case is a gamble based on the fluctuation of the outside market and also raises the question of how often should the re-appraisals be done to be the most advantageous to the company. The next difference I want to highlight is the Last In, First Out (LIFO) method. This is a method commonly used in the United States under the U.S GAAP primarily because it helps with tax purposes. Utilizing LIFO the company applies the latest cost of providing the goods to the entire supply inventory regardless of what the company paid for the good already in stock. This shows a decrease in the gross profit margin therefore lowering the taxes at the end of the year. For example if a company manufactures 1,000 tubes of toothpaste a month at $1 a tube and sells them for $2 each then they would make a profit of $1,000 a month or $12,000 a year. If the price of manufacturing the toothpaste went up to $1.50, 6 months into the year then using the LIFO method the company would record that there profit is only .50 a tube or $6,000 a year and would only pay taxes on that $6,000 vice the $12,000 even though they made the full dollar profit on the toothpaste for the first 6 months. This is a p ractice that is used primarily in the U.S. because of our tax laws and not endorsed by other countries or under the IFRS. Another difference between the two programs falls under the category of Liabilities. A liability as defined in the text is â€Å"An economic obligation (a debt) payable to an individual or organization outside of the business†. This difference between the two programs is slight and goes back to my first paragraph dealing with rules versus principle based assessments. Both IFRS and U.S. GAPP accept the that the future event will probably take place but the IFRS defines the word probable as anything greater than 50% while the U.S. GAAP with its more stringent rules defines probable as 75-80%. This means that more liabilities would be recognized with IFRS then U.S. GAAP. The last difference that I will go over is that of brand names and patents. Under the stringent rules of U.S. GAAP, the only time a company can account for the capitalization or equity of a patent or brand is if the company purchased the patent from an outside source. If it was thought up or created by the company internally the company would have to record the expenses of the development on the income statement. Under IFRS the company would be allowed to count the potential equity based on the probable future benefits. Most of the world has already adopted the IFRS and the Financial Accounting Standards Board is working on a world wide solution in bridging the gap between these two programs. In closing the U.S. GAAP program is more stringent while the IFRS allows for more flexibility. Although this flexibility associated with the IFRS program seems like it would be more beneficial to more companies, the argument would still be is flexibility better or just a lack of integrity. References: Harrison, Horngren, & Thomas 9th Edition St Joseph’s University (http://www.sju.edu/int/academics/hsb/accounting/IFRS.html) Bass, Solomon & Dowell (http://www.bsd-cpa.com/index.php/comparing-and-contrasting-international-financial-reporting-standards-ifrs-and-generally-accepted-accounting-principles-gaap)

Literature Questions and Answers - 619 Words

Question #1: The poem was written by Lord Byron, the form of the poem is ottava rima. Specifically this rhyming stanza is usually used when discussing heroes; this was something that Lord Byron did. It consists of eight iambic lines, usually iambic pentameters. The poem was written as a response to Robert Southey’s A Vision of Judgment. Much of what we read in the first half of this class was based on satirical works, and this poem is no different as it is a satirical work as well. It is typical of Lord Byron because he usually writes a lot of hero poems, after all he does have the name Byronic hero. Question #2: The passage that you have for us in this question talks about the poet being able to feel all of these things. Basically looking at things with a new eye, uncovering the freshness of things old. Having a judgment that is relaxed and not too critical, but just critical enough to uncover certain things. The last line resonated the most with me in discussing Kubla Khan, â€Å"our admiration of the poet to our sympathy with the poetry.† In lines 42-54 this is exactly what is happening. We are relating to what the poet is hearing. This revival of music, even though we think it is the speakers thoughts we get a deeper sense that all of these things are what Coleridge wants to happen. The words that he uses, they are not normal of a speaker in a poem, Coleridge is using certain words to hint that a lot of times poets are expressing their own thoughts and feelings inShow MoreRelatedLiterature Is the Question Minus the Answer Essays613 Words   |  3 PagesCritic Roland B arthes has said, â€Å"Literature is the question minus the answer.† Choose a novel or play and, or considering Barthes’ observation, write an essay in which you analyze a central question the work raises and the extent to which it offers any answers. Explain how the author’s treatment of this question affects your understanding of the work as a whole. Literature, as any other kind of art, is abstract and gives the readers the possibility of applying different meanings and thereforeRead MoreQuestions and Answers on Mang Tzus Literature2535 Words   |  10 Pagesï » ¿Question 1: Mang Tzu compares minds of people to mountains and fresh verbiage. He thinks that we are born intrinsically fresh and good and that at moments of solitude aspects of this refreshing potential of the past reappears, but that it is too weak and vulnerable to withstand the pressures? What are the pressures? It is those of the greed and pressure of the environment in which we live to conform. Mang Tzu wrote this eons ago in a different culture. Circumstances have not changed. StillRead MoreThe Stranger By Albert Camus Essay1546 Words   |  7 PagesBarthes once said, â€Å"Literature is the question minus the answer† (Barthes 2). This statement hold true for most works of literature that explore a central question. According to Barthes, literature often raises a question, but leaves it up to the reader to determine the answer. The Stranger by Albert Camus is an excellent example of how a central question, â€Å"Is there value and meaning to human life?† is raised and left unanswered, resulting in different interpretations of the answer, depending on theRead MoreTypes of Mythology Worksheet Essay1013 Words   |  5 Pagesï » ¿University of Phoenix Material Types of Myths Worksheet Knowledge, Belief, Myth, and Religion Directions: Answer the following question on knowledge, belief, myth, and religion in 3 to 5 sentences. How are knowledge, belief, myth, and religion related to one another and how are they distinct from one another? Use an example from your life or popular culture to explain this relationship. Knowledge is made up of facts, truth, stories, and more. 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A literature review will almost always have an organized pattern and will combine both summary and synthesis (The Writing Center, 2014). Why are literature reviews written? The answer is straightforward; they provide a handy guide to a particular topicRead MoreCritical Analysis Of Systems, Action Science, And Funries Of Adult Literature1111 Words   |  5 PagesThis paper will discuss plans to collect and organize literature that utilizes systems, action science, and change theory that will explain retention; subsequently, there will be a discussion on a plan to collect and organize literature that uses theories of adult education to explain retention. 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Obesity Obesity And Obesity - 1637 Words

Abstract: In today’s society, the amount of overweight and obese individuals has been increasing at a drastic rate. The main discussion is the increase in rates of childhood and adolescent obesity, the health impacts this can have on a child immediately and in the future, and what are the contributing factors to this increase in obese youths. A possible contributing factor is food advertisements that contain poor-nutrient food and are targeted at children. Children and adolescents are constantly exposed to various advertisements on a daily basis. Many studies have suggested that there would be an overall reduction in obesity and overweight rates with the ban or reduction of nutrient-poor food advertisements. The combination of advertisements of poor food choices, with increased technology use, along with less time spent doing physical activities are all huge contributing factors to obesity. Based on the data from the various studies, there should be a ban on advertisements in order to help reduce the amount of obese and overweight children and adolescents. Introduction and Background of Topic: Throughout the past few decades, there has been a drastic increase in the rates of obese and overweight populations, specifically in children. In the past thirty years, the childhood obesity rates has more than doubled in children and more than quadrupled in adolescents (Center for Disease Control and Prevention [CDC], 2015). In 1980, 7% of children aged 6 to 11 years old wereShow MoreRelatedObesity : Obesity And Obesity986 Words   |  4 PagesObesity is one of the major health epidemics that human being struggle to deal with it. Obesity is a chronic disease characterized by excessively high body fat in relation to lean body mass. In the last 20 years, people started complaining that fast food is the main cause of rising obesity. However, a lot of research proves that fast food is not the source of obesity. The rising obesity problem cannot be blamed on the fast food industry; there are several other factors leads to obesity. OverRead MoreObesity : Obesity And Obesity798 Words   |  4 Pages Obesity Close to over one-third of adults living in the United States are obese (Diet and Obesity). Unfortunately, one third of children in the United States are also obese or overweight. Obesity has grown throughout the United States and has led to major health problem and can even be fatal. About 365,000 or more people die every year due to obesity. With numbers increasing obesity should be furthered examined to help prevent these conditionsRead MoreObesity : Obesity And Obesity1442 Words   |  6 Pages5/13/16 Take home Project: Obesity Obesity basically means having too much body fat. Not being overweight for your height, having too much muscle, or water in your body. What exactly is obesity? â€Å"Obesity is a condition that is associated with having an excess of body fat, defined by genetic and environmental factors that are difficult to control when dieting. Obesity is classified as having a Body Mass Index (BMI) of 30 or greater. BMI is a tool used to measure obesity. Obesity increases your risk ofRead MoreObesity : Obesity And Obesity1318 Words   |  6 PagesObesity Epidemic Due to Fast Food or Something More Obesity is rising at a rapid rate here in the United States, especially childhood obesity. The obesity epidemic is one of the country’s most serious health problems. Adult obesity rates have doubled since 1980 from 15 to 30 percent, while childhood obesity rates have more than tripled. Is there a link in obesity and fast food eating? Are fast food restaurants to blame for our nation’s obesity issues? Or are we ourselves and our lack of knowledgeRead MoreObesity : Obesity And Obesity Essay1508 Words   |  7 Pagesleads to health risks and obesity, people are still putting unhealthy food into their body daily.   The United States has the highest obesity rate in the world by 6% and the government should be helping to lower that percentage (http://www.nationmaster.com/country-info/stats/Health/Obesity).   The best for the United States to help the obesity rate is by implementing a fat tax.   A fat tax is a tax on foods that are considered unhealthy and are believed to lead people to obesity.   The main way fat taxesRead MoreObesity : Obesity And Obesity1417 Words   |  6 Pagesconcerned. Doctors often use a formula based on height and weight, called body mass index (BMI), to determine obesity. Children with a BMI over 21 is considered obese and over 18 is overweight (Arnett, J.J.2016). Adults with a BMI of 30 or more are considered obese. Severe obesity, also known as severe obesity or morbid obesity, occurs when a BMI of 40 or more is present. With morbid obesity, there may be serious health problems. If children do not have enough activities, they will not be able to burnRead MoreObesity : Obesity And Obesity1413 Words   |  6 Pagescertificates, diabetes was mentioned as a cause of death (6). The Centers for Disease Control refers to â€Å"twin epidemics of diabetes and obesity, because obesity greatly increases the risk of diabetes, and the number of Americans who are obese has been increasing rapidly† (9). A newly developed term, â€Å"diabesity,† is commonly used to represent the close relationship between obesity and diabetes (8). Type 1 diabetes usually occurs in childhood and is defined when the pancreas fails to produce a healthy amountRead MoreObesity : Obesity And Obesity892 Words   |  4 Pagesadults are considered obese in America. In recent years obesity is the health topic of choice these days because obesity in America is a growing epidemic. One out of twenty people in America have extreme obesity. According to a 2009-2010 survey conducted by the National Health and Nutrition examination this data states that about one third of children and adolescents ages six to nine are considered to be overweight or obese. Adolescent obesity has more than tripled in young adults and doubled in childrenRead MoreObesity : Obesity And The Obesity2209 Words   |  9 Pages OBESITY in America As the world is growing day by day the problem of obesity is also increasing all over the world. Since from1980 to 2014, the obesity has risen two times as compared to the previous years. The obesity is related to the how much energy is left, but the most important cause of having the obesity is â€Å"dysbalance between energy intake and energy expenditure† (Nazarii Kobyliak 1). The obesity is the excessive fat in the body and it can cause to any age group form child to the oldRead MoreObesity : Obesity And Obesity985 Words   |  4 Pages Obesity is one of the major health epidemic that human being struggle to deal with it. Obesity is a chronic disease characterized by excessively high body fat in relation to lean body mass. In the last 20 years, people started complaining that fast food is the main cause of rising obesity. However, a lot of research proves that fast food is not the source of obesity. The rising obesity problem cannot be blamed on the fast food industry ; there are several other factors leads to obesity.

Tobacco Regulation Essay - 497 Words

Tobacco Regulation The U.S. government regulates the sale and distribution of tobacco products in many ways. Some examples of the way the government regulates are setting an age limit and taxing tobacco products. In the economic world, the tobacco wars are a serious issue. The sale of tobacco as we know is very inelastic. The government puts heavy taxes on tobacco products to cut down on the sale of them. They know that the people will buy cigarettes no matter how much they cost. Elasticity has a lot to do with the taxation of cigarettes. The relatively low price elasticity of demand in the tobacco market results in higher tax revenues than in any other type of market. The government knows that the demand of tobacco is high†¦show more content†¦The government does not want the youth to start smoking at an early age because of the higher risks of cancer and other smoking related problems. They know how addictive tobacco is and how hard it is to kick the habit once you have started. Th ere have been many studies showing that people who smoke cigarettes are more likely to die from such diseases as cancer, emphysema, and asthma. On every single pack of cigarettes there is always a Surgeon Generals warning on it. This warning is used to let society know that there are consequences to smoking. Anti-trust regulations also have a great deal to do with the sale of tobacco. Tobacco companies tend to practice oligopolization. Oligopoly describes a market with only few producers and its entry into the market is relatively difficult. Government wants to control these private powers. Cigarette companies all work together to set their prices. If one company lowers or raises their prices the other companies will take notice of this and follow the other lead. From the early twentieth century tobacco companies have always had to deal with all types of anti-trust regulations. The laws are based on the principle of conserving and encouraging a free and competitive marketp lace. In the early days of tobacco sales, the government was afraid that the companies might be trying to monopolize the market, and set up its firstShow MoreRelatedBackground. â€Å"The Tobacco Control And Regulation Of Tobacco1860 Words   |  8 PagesBACKGROUND â€Å"The Tobacco Control and Regulation of Tobacco Products’ Manufacturing, Packaging and Advertising† is the Lebanon’s smoking ban stated in number 174 of the law which bans smoking in enclosed public areas such as cafes, restaurants, bars, government buildings and offices. The law was signed by 126 out of 128 members of parliament in August 2011(initial ban) and the legislation was enacted in 2012. But this edict had never been applied due to weak rule of law and practically unstable countryRead MoreTobacco Regulation Act Of 20031309 Words   |  6 PagesPhilippines campaign backed by Philippine’s Republic Act 9211, The Tobacco Regulation Act of 2003, conducted two related important studies regarding smoking. Both researches were published last February 16, 2012 as factsheets for public references. The first study focuses on Youth/Student population and the second one was on adult. (http://www.smokefree.doh.gov.ph/index.php) Under the youth research, Philippines Global Youth Tobacco Survey (GYTS), it concluded that 46.2% of students had ever smokedRead MoreGovernment Regulation of Tobacco Products Essay634 Words   |  3 PagesGovernment Regulation of Tobacco Products Dawn BUS 250 Corporate amp; Social Responsibilit March 7, 2010 Government Regulation of Tobacco Products Government regulation of tobacco has come under some fierce opposition. Naturally the big tobacco companies do not want any type of regulation and yet one company was a quiet supporter. This company, the Altria Group which is a parent company of Philip Morris, believed the bill would pass so they wanted to make sure they had a say when theRead MoreStricter Strict Regulations For Tobacco Control Essay1935 Words   |  8 PagesThe need to enforce stricter regulations for tobacco control by local communities and individual states is the health policy issue being analyzed. According to The Healthy People (2010) tobacco use and the availability of its products are harmful to our population in various ways, ranked as one of the top ten leading indicators for health concern. The addictive nature of tobacco has created a high demand for their products, boosting the tobacco industry s profits tremendously, and states gainingRead MoreMarketing Regulations Of Indonesia s Tobacco1146 Wor ds   |  5 PagesAs the fourth most populous country in the world, the leniency of Indonesia‟s tobacco marketing regulations presents an opportunity for local and global tobacco companies to penetrate the market and aggressively expand their operations. Indonesia is among the five largest producers and exporters of cigarettes in the world (WHO, 2012). In 2011 Indonesia ranked third in the number of male smokers and 17th for female smokers (WHO, 2012). The number of cigarette consumers is the third-largest in theRead MoreMental Health, Tobacco Regulation, And Medical Marijuana1063 Words   |  5 PagesThe policies introduced at the state level were associated with mental health, tobacco regulation, and medical marijuana. The first bill is HB 1072, which seeks to grant prescriptive authority to psychologists who meet specific education, training, and registration requirements. Supporters include the Hawaii State Center for Nursing, Hawai’i Medical Association (HMSA), and the Coalition for a Drug-Free Hawai’i (CDFH). Due to the widespread shortage of mental health professionals in Hawai’i, theseRead MoreThe Government Regulation Of Tobacco And Alcohol Sales And Supply1848 Words   |  8 Pagesprovides limitations on how specific groups act, some groups are allowed more freedom while others can be more restricted. (Palmer, Short 2014) For example, the state government regulation of tobacco and alcohol sales and s upply. (AIHW 2014) While in pursuit of credibility and self promotion, organisations can develop a self regulation policy which can potentially reduce government interfering. (Palmer, Short 2014) Redistributive policies consist of the change of distribution of income, wealth, propertyRead MoreThe Toxic Truth About Sugar1291 Words   |  6 Pagespresenting readers with possible routes of regulation, the authors firmly suggest government intervention in the production and sale of sugary foods. Although the argument is well executed, I remain unconvinced that government intervention is actually necessary. Sugar is, and has always been, unavoidable; conversely, sugar has not always been toxic. Naturally abundant and technically enhanced, this substance has followed in the footsteps of tobacco and alcohol, becoming just as unhealthy andRead MoreEssay on Advertising Regulations857 Words   |  4 PagesAdvertising Regulation Abstract Advertising today comes in various forms of information such as television, newspaper, Internet, etc. With all these types of outlets of advertising, these regulations are put into place for the industry to follow on what can be put out there for the different type of audiences the advertising can affect. There are many types of advertising that these regulations pertain to for example tobacco and children. Currently, the market isRead MoreThe Importance Of Outside And Non Associating Scientists With Recognition817 Words   |  4 Pagesof tolling forms as hired workers would not be entitled of HR benefits of the company. b) Why this strategy works? The above discussed strategies are easily worked in any country beyond restrictions, litigation, and support of regulation in certain industries like Tobacco and pharmaceutical industries. The major reasons are lack of strong measures and support of law measures to large companies. For instance, in United States (US), the federal regulator authorities are underfunded and underpowered

Hobbes vs the Fool Free Essays

Hobbes vs the Fool In Hobbes case, justice is characterized supporting a covenant, and for those who shatter their covenant will be penalized accordingly. The fool first expresses his assertion having â€Å"said in his heart: ‘there is no such thing as justice’† (L p. I ch: xv [4]). We will write a custom essay sample on Hobbes vs the Fool or any similar topic only for you Order Now If there are no covenants to be broken, this would signify neither just or unjust actions exist. The fool by rejecting the reality of fairness is rejecting the achievement of covenants in general, yet as we currently understand from our own know-how, the fool’s contention is unsound. In every day interactions persons manage in diverse examples support their covenants. Here, Hobbes makes the fool’s place appear blatantly untrue for its conspicuous betrayal of the genuine world. Yet, as he extends, it is not the case that the fool refutes the reality of fairness in this way. He answers, â€Å"[the fool] does not therein refute that there be covenants and that are occasionally broken, occasionally kept, and that such break of them may be called injustice, and the observance of them justice† (L p. I ch: xv [4]). However the fool accepts as factual that it is precisely his right of the covenant, one made in evolving part of a commonwealth, that it is flawlessly in good standing to better ones place even if he will take from his or another covenant. The period covenant from Hobbes viewpoint identifies a kind of agreement in which both parties either acquiesce to fulfill their part, one presently and the other in the future, or both at a subsequent time. This is distinct from a normal agreement in which both parties proceed presently, neither having the possibility to falsify their activities from their agreement. Hobbes identifies a covenant’s susceptibility to deceitful agreement, when one or both parties acquiesces to their part with shady aims, or when one or both parties makes a legitimate responsibility and subsequent end up shattering it. For the fool, if he has a possibility to better himself in any way whatsoever he will manage so despite of any covenant made. But the fool solidly accepts as factual that he has the right to shatter one covenant if he feels that he has revealed himself to strike needlessly increasing his vulnerability as the covenant continues. Hobbes composes as the fool saying â€Å"every man’s conservation and contentment being pledged to his own care, there could be no cause why every man might not manage what he considered conduced thereunto, and thus furthermore to make or not make, hold or not hold, covenants was not contrary to cause, when it conduced to one’s benefit† (L p. I ch: xv [4]). From the fool’s viewpoint it is only sane to shatter covenant with other ones, being foes with all other ones rather than of holding covenants with those who might traverse him in a world where every individual is just seeking to survive. At this issue protecting against of one’s own life as well as exploitation of other ones, premier in numerous situations to their decrease of life, are revealed with some rationale. Hobbes subsequent recounts the likely situation of vying persons and their procedure of attack. Hobbes sees the right of the one-by-one to manage anything is essential to endure, not less than while dwelling inside a State of Nature and Ware, ethics in a sense non-existent. Hobbes refutes the fool, carrying the reality of fairness inside a commonwealth. It is the individual’s right as it is recounted in the State of Nature and Subsequently the State of War of which we are all a part, as long as we subsist without affirmation on and acknowledgement of a mutual sovereign, is therefor habitually called into inquiry while at the identical time identified and supported. Hobbes states â€Å"in a status of conflict wherein every man to every man is an foe, there is no man can wish by his own power or wit to fight back himself from decimation without the assist of confederates† (L p. I ch: xv [5]). Thus in eager to eliminate one’s self from a state of conflict, banding simultaneously is the only salvation and this needs covenant finally producing in a commonwealth. For Hobbes, the less sensible is that considered which adds one to live as an one-by-one contrary to all other ones, shattering covenants or producing none. The more sensible considered then: acknowledging reality as part of a assembly of others; sustaining some allowance of fairness, some reality in affirmation between young individuals under a mutual rule. Some decisive affirmation upon the situation of interactions of persons should be made, identifying a widespread power distinct and overhead the body of the assembly, and more mighty than any one-by-one so as to sustain control. In confederacy Hobbes contends, power and security can be discovered, asserting â€Å"he affirms he conceives it cause to deceive those that assist him can in cause anticipate no other entails of security than what can be had from his own lone power† (L p. I ch: xv [5]). Here, Hobbes weighs the scale between the just and the unjust, the one-by-one and the assembly, honesty and self-centred cunning, revealing the benefit of calm over war. The fool is only involved in short viewed goals, instant retribution for one’s activities, which live mostly in the state of nature. Hobbes considers the larger advantage of relying on other ones, or not less than living in a assembly with a widespread aim contending that living inside a commonwealth is the favorable alternative because the advantages outweigh the loss. He considers the essential situation for the reality of just and unjust actions when he composes, â€Å"there should be some coercive power to compel men identically to the presentation of their covenants†¦ †¦ and to make good that propriety which by mutual agreement men come by, in recompense of the universal right they abandon; and such power there is no one before the erection of a commonwealth† (L p. I ch: xv [3]). Hobbes states that attaining the â€Å"secure and perpetual felicity of heaven† is vein, â€Å"frivolous†, in   a State of Nature, â€Å"there being but one way imaginable, and that is not shattering, but holding of covenant† (L p. I ch: xv [6]). This is his direct objection to the fools fondness for completely acknowledging and exploiting freezing hard individualism. He conceives that not anything will convey us out of a State of Nature and War other than mutual acknowledgement of a sovereign power which can, because of it’s power, preside over all men (in commonwealth) such that no one-by-one see’s it in his better concern to disobey. This salvation for man, without rejecting that he actions for the advantage of himself, Hobbes explains:   â€Å"The last origin, end or conceive of men (who routinely love liberty and dominion over others) in the introduction of that restraint upon themselves in which we glimpse them reside in commonwealths is the foresight of their own preservation, and of a more contented life thereby; that is to state, of getting themselves out from that sad status of conflict, which is inevitably consequent†¦ †¦ to the natural passions of men, when there is no evident power to hold them in awe, and bind them by worry of penalty to the resentation of their covenants and fact of those regulations of environment set down in the fourteenth and fifteenth chapters. † (L p. II ch: xvii [1]) Here, Hobbes recounts the trade off. One should vitally stop certain one-by-one privileges, and in come back are exempt from a state of war. The steadiness of the commonwealth, of the current face t of calm, and likewise of the sovereign are all reliant upon this â€Å"awe† Hobbes converses about and the worry which is essential for binding one to the fulfillment of covenant. He contends that acquiescing to covenant out of worry of one’s own life, deserves that one should fulfill it, saying that in â€Å"covenant to yield ransom, or service, for my life, to an foe [in the state of Nature], I am compelled by it† (L p. I ch: xiv [27]). Hobbes indicates the untrue compromise that in dealing away some of you’re right to manage anything you delight, so much as it is permitted in preservation of you’re life in the State of Nature, which has no restrict, you rather than gain worry, not only of the sovereign and it’s direct, but furthermore a worry about those round you who may select to exploit your believe in justice. In the ‘natural’ state worry is glimpsed as essential for the reasonable and tired to sustain protecting against of their life. When matching the State of Nature, to that of a commonwealth we glimpse worry lives non the less, when there is a ruling sovereign. Fear is like the equipment which drives the motor of the commonwealth, which Hobbes states defends contrary to a state of war. This worry he states, is the â€Å"terror of some penalty larger than the advantage they anticipate by the break of their covenant† (L p. I ch: xv [3]). However, worry lives as an absolutely crucial survival constituent in the State of Nature as well, and therefore is not certain thing profited or swapped in justice. Hobbes devotes us the idea of The Third Law of Nature to classify truth, saying that because of that â€Å"which we are obliged to move to another such privileges, being kept, hinder the calm of mankind†¦ †¦ [and thus] men present their covenants made, without which covenants are in vain†¦ and the right of all men to all things residual, we are still in a status of war† ( L p. I ch: xv [1]). Either it is fairness living in a state of calm, or not anything just or unjust living in a state of war. In a very considerable way, the fool presents Hobbes with a grappling colleague, one who can both articulate the ‘other side’ of what he is saying, but furthermore extends to be that sticker in his neck which he can’t assist but fiddle with, its stubbornness departing a fee ling of nearly anxious discomfort. It is unclear at times if Hobbes really contends with the fool or contrary to him, as Edwin Curley remarks â€Å"The place Hobbes ascribes to the fool is very like the one Grotius ascribes to Carneades, who he takes as agent of those who refute natural law. Since Hobbes himself had appeared to be close to carneades’ place in Dcv I, 10 (proclaiming that ‘in the state of environment earnings is the assess of right’)† (L p. I ch: xv [4] 2 ). How to cite Hobbes vs the Fool, Essay examples

Walgreens Case Study free essay sample

INTRODUCTION: It was in 1901 that Charles Walgreen Sr. opted to purchase the Chicago drugstore where he worked as a pharmacist (David, 2013). He offered his own drug line and expanded the drug store with other items (David, 2013). His success allowed him to open a second drug store by 1909; over 100 stores in the next nine years, went public with stock shares by 1933, and in 1946 Walgreens pursued a philanthropic venture, opening a non-profit drugstore in the pentagon (David, 2013). Currently, Walgreens has stores located in all 50 states as well as the District of Columbia and Puerto Rico (David, 2013). Walgreens dedication to be the first choice in the health and the daily living category has helped it expand globally and maintain a competitive advantage. They currently offers prescription labels in 14 languages and were the first to offer child-resistant containers before law required them (David, 2013). Walgreens has proved to be innovative and adaptable to the times, which contributes to many years of success. We will write a custom essay sample on Walgreens Case Study or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page However, in the past few years the economy has seen high unemployment rates, changes in the health care industry and price matching in response to consumer price sensitivity (David, 2013). Walgreens will have to work on offering attractive pricing and other service offerings to maintain its high ranking and competitive advantage. CURRENT MISSION, GOALS, STRATEGY: Walgreens current mission is â€Å"To be the most trusted, convenient, multichannel provider and advisor of innovative pharmacy, health and wellness solutions, and consumer goods and services in communities across America. A destination where health and happiness come together to help people get well, stay well and live well† (David, 2013). To maintain a competitive advantage, Walgreens offers their employees career advancement and training opportunities for career development. They are extending their pharmaceutical services by offering preventative health care services and daily HDL, glucose and cholesterol testing (David, 2013). Walgreens is conscious of the opportunities that have emerged in the industry and are pursuing strategies focused on: pricing, customer service, patients and other categories that will help enhance the Walgreen’s name. They are currently marketing their products through different mediums to promote their private-label brands, and focusing on price and quality. Their current focus on pursuing these strategies will help them become aggressive competitors against major stores like Wal-Mart and Costco to become the largest drug retailer in the U. S. INTERNAL ANALYSIS: See attached IFEM Walgreens is a strong company internally with an IFEM score of 2. 98. FINANCE: Walgreens is very strong financially, as indicated by the following financial measures. Walgreens most recent year-end results indicate that demand is still high. Revenues increased by 6. 4% and net income increased by 4. 2% year over year (David, 2013). This is good news for a company that has faced increased costs and extreme competition. Walgreens increased the rate of store conversions which increased conversion costs over the prior year from $5 million to $45 million (David, 2013). Although Walgreens has seen an increase in operating costs over the prior year, their gross margin of 28. 15% is the highest among the industry (David, 2013). The current ratio stands at 1. 60 which suggests that Walgreens is fully capable of paying its short-term obligations (David, 2013). The company’s quick ratio is at . 61 which suggests that a high rate of the company’s assets derive from product inventory which isn’t considered as liquid as other assets (David, 2013). Although the quick ratio doesn’t suggest a favorable liquidity rating of short-term obligations, the company has a low debt to assets ratio. The debt to assets ratio stands at . 09 which is a small decrease over the prior year of . 2% which indicates that Walgreens is less dependent on debt to grow their business (David, 2013). Should Walgreens face any drastic downward market changes, they are in a position that would allow them to borrow, or liquidate assets. MANAGEMENT: Over the course of 113 years, Walgreens has grown from a single location pharmacy to a chain of nearly 8,000 locations (David, 2013). The great leadership of Walgreens has helped to grow the company into one of the largest pharmacies in the world. The company has a strong organizational structure, culture, vision, and mission. The company’s management has continued to build its core pharmacy business as well as find ways to innovate and expand its product offerings. Fast Company ranked Walgreens as the sixth most innovative health care company for leadership in health care services (David, 2013). This ranking is well deserved and identifies the management’s determination to move forward, in the competitive business world. Walgreens management faces the challenge of diversifying its business portfolio. Nearly 65% of Walgreens business derives from prescription drugs and 10% derive from non-prescription drugs (David, 2013). As the number of competitors continues to grow, management must continue to innovate through technology and introduce new products and services to limit risk. Walgreens can also benefit from providing career growth opportunities for its employees. The company offers a variety of career advancement and training opportunities for their employees. On-the-job training, professional career development, financial assistance programs for pharmacy students, and management and pharmacy internships are among the career development opportunities Walgreens has provided to its employees (David, 2013). The company’s commitment to employee growth will provide a satisfied and well trained workforce that will help the company succeed for years to come. RESEARCH AND DEVELOPMENT: Walgreens has a clear vision and mission of who they want to be and what their business is. This clarity has helped them identify and quickly respond to changes in consumer shopping habits. Walgreens is a fierce competitor and through acquisitions has increased their market share in the industry. Drugstore. com, with $456 million in sales and an addition of 3 million customers, was acquired to compete with CVS Caremark, a leader in mail-order prescriptions (David, 2013). They also added an online chat service and a mobile application for prescription refills. Walgreens must keep this momentum to meet the demand expected to rise for prescription drugs due to the increase of insured Americans in the upcoming years, resulting from the Patient Protection and Affordable Care Act. According to the U. S Census Bureau, 32 million Americans will have health coverage in the next decade, 95 percent by 2019 (www. census. gov). MARKETING: Walgreens has extended their advertising to publicize their private-brand as well as branded health and wellness products to its customers (David, 2013). However, they need to better promote their mobile application and online services and sell the convenience of shopping online and filling up prescription refills via their mobile application to maintain their competitive advantage. Many current and potential customers are not aware of these helpful tools. EXTERNAL ANALYSIS: See attached EFEM Walgreens appears to be responding to external threats and opportunities well as indicated by the EFEM score of 2. 74. COMPETITION AND THE INDUSTRY: Three of the fourteen EFEM factors are â€Å"competitive,† including two major threats and one minor threat. The external environment is certainly competitive due to the recognition and resources available to competitors such as Wal-Mart and CVS. The industry itself includes a minor threat of prescription sales slowing over the past half century (David, 2013). This is something that is affecting all competitors and will likely be alleviated by the new Patient Protection and Affordable Care Act which is predicted to increase health care coverage to 95% of Americans by 2019 (David, 2013). The growth of in-store health clinics is a major opportunity. â€Å"Retail clinics offer superior convenience by curing the ills and the frustrations of waiting patients (i. e. , no appointments needed, evening and weekend operating hours, and 15-minute-or-less wait times) and by situating themselves in convenient locations† (Deloitte Center for Health Solutions, 2008, p. 6). Walgreens already operates in all 50 states (David, 2013). Growing the number of in-store health clinics seizes the opportunity for additional revenues and recognition by customers on the convenience of their stores. The increase in consumer spending on nondurable goods provides the opportunity for Walgreens to offer promotions for non-health related items to increase foot traffic in the stores and use of the online store. This will continue to make Walgreens a staple in customer’s routine of going to Walgreens to become more of their one-stop shopping experience. TECHNOLOGY: During Fiscal year 2010, the Walgreens online pharmacy received an average of 15,000 visits per month (David, 2013). A U. S. Census Bureau â€Å"E-Stats† online publication showed that for 2010, Online sales were less than 40 percent of total sales† for prescription drugs (U. S. Census Bureau, 2012, p. 3). However; â€Å"[r]etailers’ e-commerce sales increased by 16. 3 percent. As a share of total retail sales, e-commerce sales was 4. 4 percent ($169 billion), up from 4. 0 percent ($145 billion) in 2009† (U. S. Census Bureau, 2012, p. 1). This shows how a minor opportunity could very well transform into a major opportunity for Walgreens. Competition is certainly high with retailers such as CVS and Wal-Mart that already have a major online presence. Walgreens success will depend on how they invest and market their online presence as the consumer trend towards ecommerce continues. ECONOMIC: High unemployment rates and the increasing costs of energy are both considered minor threats. Although higher rates of unemployment coupled by increases in costs will decrease their spending, Walgreens offers over the counter and prescription medical products that in many cases are considered by consumers as a basic need. Consumers will likely trend towards decreasing spending on items of entertainment rather than those of basic needs. Subsequently, â€Å"[a]s the economy expands further, the rate of unemployment is projected to continue declining until, in 2016, it reaches 5 percent† which is much more favorable than the 2010 rate of 10 percent and will likely allow for the trend of consumer spending on nondurable goods upwards (Congressional Budget Office, 2010, p. 23-25). Increased revenues at Walgreens from all product types and more income available for consumers will decrease the effect of higher energy costs on both the business and the consumer. STRATEGIC OPTION ANALYSIS: See the I/E, SPACE, TOWS and QSPM THE IE MATRIX: The IE Matrix places Walgreens in a difficult position. The matrix officially places Walgreens in the Hold and Maintain position, but borders on Build and Grow. Both the EFEM and IFEM averages are favorable and strong consecutively. This would be expected since the company does have a large amount of stores. The issue lies in building those stores to customer demand and company standard instead of building new stores. This can be seen with the suggested strategies to advance the old and incorporate the new. Walgreens has a strong foundation giving it the ability to expand and evolve. The Space Matrix: The Space Matrix shows Walgreens positioned in the AGGRESSIVE quadrant in the lower left portion towards COMPETITIVE. With a strong financial position (FS+4. 5), moderate competitive position (CS-2. 8), moderate environmental position (ES-2. 33), and very strong industry position (IS+4. 75), confirm the plot position. The SPACE Matrix follows the placement of the IE Matrix’s Hold and Maintain position. The very strong industry position confirms the previous suggestions of evolving existing products to compete with competitors. THE TOWS MATRIX: The TOWS MATRIX YIELDED FOURTEEN STRATEGIES. Of the fourteen strategies, eleven are B/C strategies and three are functional strategies. The functional strategies fall into the categories of management and innovation. The B/C strategies developed include an assortment of retrenchment, combination, marketing, market penetration, market development, service development, technology and innovation. The QSPM and the QSPM score Summary Sheet: The eleven distinct B/C strategies were evaluated by the QSPM and QSPM Summary. The strategies developed aligned with the TOWS Matrix yielded low Max Possible Scored (MPS) on all strategies. The highest strategy was #2, determining strategies to increase online sales revenue and membership, with a MPS of 36%. This would be considered as weak to moderate. This being said, this strategy and other B/C strategies should still be considered based on the results of the IE Matrix and Space Matrix. RECOMMENDED STRATEGIC THRUST AND SUPPORTING STRATEGIES: Walgreens should plan its strategic thrust on evolving and developing established locations. The industry is aggressive and Walgreens is a key player. As seen in the case, Walgreens is one of the top three competitors with 7,562 drugstore locations across all 50 states (David, 2013). It would be unnecessary to develop too many more new facilities without evolving and expanding on current locations. FUNCTIONAL STRATEGIES The following functional strategies should be carried out in the time frames indicated. F/MK: Focus on online shopping format and build it bigger and stronger. Time Frame: Short-Range. F/MK: Launch of new label marketing campaign. Time Frame: Mid-Range. F/SK: Focusing on getting the attention of the 600K people who connect via Social Media such at Facebook and Twitter. Time Frame: Short to Mid-Range. F/SV: Building and growing so that they can operate globally. Time Frame: Long-Range. B/C (BUSINESS/CORPORATE STRATEGIES) SHORT RANGE-INITIATE IMMEDIATELY AND IN PRIORITY: Strategy #1– MK (SO): Incorporate more advertising and deals via media. Try to focus on adding more advertising on television, radio, and online. Speak with different social media groups to advertise with them. This should include but not be limited to Facebook and Twitter to reach the younger generation. Strategy #4 – MP (SO): This is also similar to strategy #1, but expands on reaching the younger generation. This is all about advertising and creating products and marketing them to the younger generation. Strategy #6 –MK (WO): Add more incentive programs for getting prescriptions filled with Walgreens by promoting other store goods. Offer customers deals for switching their prescriptions to Walgreens as well as offering deals for each time they refill by offering free store products. Strategy #10 – RT (WT): Look at leasing options within existing retail outlets to avoid construction expenses. Instead of building and spending the time and money it would easier and more cost effective to lease buildings already in existence. MID RANGE – BEGIN PLANNING IMMEDIATELY FOR IMPLEMENTATION IN 2 TO 3 YEARS. Strategy #9 – MD (ST): Increase marketing expense for Walgreens. com and phone application. This expense should go towards updating the website so it’s easier to navigate and making the telephone system easier for the elder population to use. Strategy #2- TC (SO): Determine strategies to increase online sales revenue and membership. Work on different programs and specials to interest people into purchasing products as well as membership. Strategy #3- SC (SO): Expand on in-store health clinics. Expand current clinics to handle a different variety of vaccines, physicals, and diagnosing as well as prescribing commonly used medications. Strategy #11 – CB (WT): Look to partner with popular health brand as some competitors have done. Securing the partnership would help to gain and keep brand-loyal customers. LONG RANGE-BEGIN PLANNING NOW FOR IMPLEMENTATION IN 4 TO 5 YEARS. Strategy #8 –SD (ST): Invest in remodeling out-of-date stores to add convenience. Customers are more inclined to visit stores that make them feel comfortable and especially for a store selling medications, cleanliness and modernization is a must. Strategy #5 – MK (WO): Add In-Store Health Clinics. While some of the stores offer in-store health clinics, this should be expanded to include all of the stores. NOT RECOMMENDED: Strategy #7 – IN (ST): Continue to acquire like businesses to build strong national recognition. Work with and join forces with other companies to build their national recognition. Walgreens has strong national recognition already. They need to continue to build the company to increase revenue. In Conclusion, there are many different threats to the success of Walgreens. The threats include direct competition from large retailers such as Wal-Mart and CVS as well as a variety of grocery stores, and even small â€Å"Mom and Pop† pharmacies. The economic market is also affecting the sales and profits of Walgreens. Walgreens should focus on factors that will help raise Walgreens from sixth most innovative health care company to first or even second as well as work on their online products, and make getting products or prescription easier for the older population. This includes utilizing on-line access to refilling prescriptions and ordering products. END