Candide free essay sample

The novel reflects a type of writing known as bildungsroman. Bildungsroman is a story in which the main character moves from a state of innocence and inexperienced to a state of wisdom and maturity through his or her experiences. The beginning course of bildungsroman is that the protagonist has some reason to go on a journey such as a bad behavior makes the protagonist to leave from his or her current life’s setting. At the beginning of Candide, it tells that Candide was a son of the Baron’s sister. He was a perfect innocent man who worshiped Pangloss, a philosopher of Optimism. He listens to Pangloss’ philosophies attentively and believes innocently. These philosophies have caused Candide and Cundegonde to fall in love with each other. The baron finds out about the relationship and kicks Candide out of the castle. This incident is the most important reason that forces Candide to leaves his current life in Westphalia. We will write a custom essay sample on Candide or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It also starts the adventures that have developed Candide’s state of wisdom and maturity. The process of maturing of Candide is long and consisting of repeated clashed between needs and judgments by the society. On Chapter 14, page 82, Voltaire writes : â€Å"I have delivered thee out of the galleys, I have paid thy ransom, and thy sister’s also; she was a scullion, and is very ugly, yet I am so condescending as to marry her; and does thou pretend to oppose the match? I should kill thee again, were I only to consult my anger. † This is an example of clashes between needs and judgments by the society. In this line, Candide asks to marry Cundegonde even as she is now an ugly and poor woman. Candide’s proposal is being rejected by the Cundegonde’s brother. One of the most important reason for Candide to want to marry Cundegonde is that he wants to keep his promise and doesn’t want the society view him as an untrustworthy man. He has sacrificed his needs for the judgments of the society. In bildungsroman, the character is usually be able to make a smooth movement away from conformity throughout major conflicts such as individuality vs. onformity. During his adventures, Candide acquires wealth and experiences about the world. These factors cause Candide to question his belief in optimism. After Candide listened to Martin’s philosophy of pessimism, he has changed his views from optimism of Pangloss to Martin’s pessimism. At the end of the novel, Candide rejects Pangloss’ philosophy and Martin’s philosophy. He begins aware of both good th ings and bad things. He starts to forms his own life opinions by becoming a gardener. This is an example of individuality vs. conformity. In this novel, Voltaire is able to use bildungsroman to moves Candide from an innocence and honest man to a man of wisdom and maturity. After being forced away from Westphalia, Candide is able to acquired some knowledge about the world. He is now matured enough to be able to sacrificed his needs for his reputation. He has gained wisdoms to develop some opinions for himself. Finally, the novel Candide can be considered as a bildungsroman because of these elements.

Financial Analysis- for Royal Dutch Shell Essay Example

Financial Analysis Financial Analysis- for Royal Dutch Shell Essay Financial Analysis- for Royal Dutch Shell Essay Royal Dutch Shell, Plc. (NYSE: RDS. A) Table of Contents Executive Summary3 Introduction4 Financial Ratio Analysis5 Liquidity6 Asset Management7 Debt Management8 Profitability10 Market Value12 Cash Flow and Growth Analysis14 Capital Structure Estimation16 Weighted Average Cost of Capital17 Cost of Debt17 Cost of Equity CAPM18 Cost of Equity DCF19 Cost of Equity BYPRP19 WACC20 Project Cash Flow Estimation21 Capital Budgeting Analysis23 Sensitivity Analysis24 Scenario Analysis27 Conclusion28 References29 Appendix30 Executive Summary This report analyzes Royal Dutch Shell Plc. (RDS. A on NYSE) financial status, history, market space, and growth opportunities. Royal Dutch Shell Plc. (Shell) is one of the world’s largest corporations with annual revenue of $470 billion for fiscal year 2011. When analyzing a company it is vital to ensure all aspects of the firm’s financial standing are stable, this is essential to guarantee its ability to take upon new major projects, such as the one being proposed at this time and evaluated in this report. This report intends to evaluate the possibility of Shell undertaking a project that requires a total initial investment of $580 million in fixed assets as wells as operation expenses of $38 million, for a total of $618 million is startup costs. This report illustrates Shell’s financial standing through, ratio analysis, cash flow analysis, and detailed capital budgeting analysis to help calculate Shell’s capacity to accept the proposed project. The life of the project will be eight years and expected to have a growth rate of 8. 5%. : The Net Present Value of the project is approximately $284 million and is expected to pay for itself in approximately 4. 74 years according to discounted payback calculations (detailed in report). Introduction Royal Dutch Shell plc operates as an oil, gas and energy company that explores for and extracts hydrocarbons worldwide. Royal Dutch Shell also converts natural gas to liquids to provide cleaner-burning fuels; markets and trades natural gas; extracts bitumen from mined oil sands and convert it to synthetic crude oil; and generates electricity from wind energy. In addition, it converts crude oil into a range of refined products, including gasoline, diesel, heating oil, aviation fuel, marine fuel, lubricants, bitumen, sulphur, and liquefied petroleum gas (LPG); and produces and sells petrochemicals for industrial use. The company holds interests in approximately 30 refineries; 1,500 storage tanks and 150 distribution facilities; and fuels retail network of approximately 43,000 service stations under the Shell brand name. Royal Dutch Shell plc also markets its products under the Shell V-Power and Shell FuelSaver brand names. In addition, the company offers lubricants for use in passenger cars, trucks, and coaches, as well as for industrial machinery in manufacturing, mining, power generation, agriculture, and construction industries. Royal Dutch Shell plc sells fuels, specialty products, and services to commercial customers; offers fuel for approximately 7,000 aircraft every day at 800 airports in 30 countries; offers liquefied petroleum gas and related services to retail, commercial, and industrial customers for cooking, heating, lighting, and transport applications; provides transport, industrial, and heating fuels; and supplies approximately 11,000 tones of itumen products. Royal Dutch Shell plc is headquartered in The Hague, Netherlands and employs roughly 23,000 people worldwide. (Royal Dutch Shell, 2012). Financial Ratio Analysis The following table illustrates Royal Dutch Shell’s financial ratios analysis and will assist in the understanding of the current and (estimated) future status of t he organization. The ratios will allow for a general interpretation of the firm’s strength and ability to take on outside projects. The table exemplifies the liquidity, asset management, debt management, profitability, and market value standpoint of the firm. Examining Royal Dutch Shell’s financial ratios presents a positive outlook for the company, in comparison to the industry average Shell is performing exceptionally well. Royal Dutch Shell, Plc. (NYSE: RDS. A) Financial Ratios| Liquidity Ratios| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Average| Industry| Comments| Quick Ratio| 0. 85| 0. 8| 0. 79| 0. 9| 0. 84| 0. 84| 1. 1| Healthy| Current Ratio| 1. 17| 1. 12| 1. 14| 1. 1| 1. 15| 1. 136| 1. 5| Healthy| | | | | | | | | | Asset Management| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Average| Industry| Comments| Inventory Turnover| 13. | 10. 84| 9. 77| 15. 56| 10. 84| 12. 12| 14. 9| OK| Fixed Assets Turnover| 3. 29| 2. 76| 2. 34| 4. 28| 3. 51| 3. 24| 1. 3| Healthy| Total Asset Turnover| 1. 45| 1. 23| 0. 99| 1. 66| 1. 41| 1. 35| 0. 6| Healthy| | | | | | | | | | Debt Management| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Average| Industry| Comments| Debt Ratio| 17. 90%| 22. 80%| 20. 20%| 15. 30%| 12. 60%| 17. 76%| 51. 98%| Healthy| Net Fixed Debt Ratio| 15. 10%| 18. 70%| 18. 30%| 9. 70%| 8. 90%| 14. 14%| 27. 38%| Healthy| Debt to Equity Ratio| 21. 70%| 29. 61%| 25. 36%| 18. 06%| 14. 37%| 21. 82%| 42. 69%| Healthy| | | | | | | | | | Profitability Ratios| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Average| Industry| Comments| Net Profit Margin on Sales| 6. 32%| 5. 47%| 6. 88%| 3. 32%| 10. 19%| 6. 44%| 6. 50%| Healthy| Basic Earning Power | 16. 12%| 10. 96%| 7. 19%| 18. 00%| 18. 77%| 14. 21%| 6. 80%| Healthy| ROA % (Net)| 9. 26%| 6. 55%| 4. 36%| 9. 50%| 12. 41%| 8. 42%| 10. 15%| Healthy| ROE % (Net)| 19. 47%| 14. 15%| 9. 49%| 20. 86%| 27. 28%| 18. 25%| 14. 24%| Healthy| | | | | | | | | | Market Value Ratios| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Average| Industry| Comments| Price per Earning Ratio| 7. 4%| 10. 14%| 14. 24%| 6. 06%| 8. 32%| 9. 28%| 7. 86| Healthy| Dividend Yield| 4. 60%| 5. 03%| 5. 52%| 5. 89%| 3. 34%| 4. 88%| 4. 76%| Average| Book Value per Share| $ 54. 98 | $ 47. 85 | $ 45. 05 | $ 42. 02 | $ 38. 61 | $ 45. 70| $ 46. 43| Average| Earnings per Share| $ 4. 98 | $ 3. 28 | $ 2. 04 | $ 4. 27 | $ 5. 00 | $ 3. 91| $ 3. 26| Average| Table 1 – Financial Ratio Ov erview Liquidity Ratios Liquidity Ratios| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Average| Industry| Comments| Quick Ratio| 0. 85| 0. 8| 0. 79| 0. 9| 0. 84| 0. 84| 1. | Healthy| Current Ratio| 1. 17| 1. 12| 1. 14| 1. 1| 1. 15| 1. 136| 1. 5| Healthy| Figure 1 –RDS. A Liquidity Ratio Trend The current ratio measures a companys ability to pay short-term debts and other current liabilities by comparing current assets to current liabilities. The ratio illustrates a companys ability to remain solvent. Shell’s five year current ratio average is 1. 13, . 37 below the industry average, and their quick ratio is . 84, . 26 below the industry average. Shells liquidity ratios are both below the industry average and illustrate their healthy status and continued strength for liquidity. Asset Management Ratios Asset Management| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Average| Industry| Comments| Inventory Turnover| 13. 6| 10. 84| 9. 77| 15. 56| 10. 84| 12. 12| 14. 9| OK| Fixed Assets Turnover| 3. 29| 2. 76| 2. 34| 4. 28| 3. 51| 3. 24| 1. 3| Healthy| Total Asset Turnover| 1. 45| 1. 23| 0. 99| 1. 66| 1. 41| 1. 35| 0. 6| Healthy| | | | | | | | | | Figure 2 –RDS. A Asset Management Ratio Trend Asset Management ratios give an indicator of efficiency (ability to move inventory and generate sales) within a company, particularly ones with tangible goods as compared to its competitors. You can see from figure 2 that in comparison to the industry average Shell is healthy and efficient in their assets and inventory turnover. Figure 2 reflects a spike in Shells inventory turnover in 2008; however this can also be attributed to the economic downturn in 2008. Even with the spike Shells average is still on par with the industry and exemplifies a healthy asset management turnover. Debt Management Ratios Debt Management| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Average| Industry| Comments| Debt Ratio| 17. 90%| 22. 80%| 20. 20%| 15. 0%| 12. 60%| 17. 76%| 51. 98%| Healthy| Net Fixed Debt Ratio| 15. 10%| 18. 70%| 18. 30%| 9. 70%| 8. 90%| 14. 14%| 27. 38%| Healthy| Debt to Equity Ratio| 21. 70%| 29. 61%| 25. 36%| 18. 06%| 14. 37%| 21. 82%| 42. 69%| Healthy| Times Interest Earned| 41. 54| 36. 49| 39. 78| 33. 38| N/A| 37. 79| 25. 61| Healthy| | | | | | | | | | Figure 3 –RDS. A Debt Management Ratio Trend Royal Dutch Shell’s Debt Management ratios indicate that it has been less aggressive with using debt to finance growth than the majority of its competitors in the Oil Gas industry. Across the board Shell has a lower debt ratio than their competitors; the resultant effect on earnings would be less volatile than related companies. The debt ratio is a solvency ratio that examines how much of a companys assets are made of liabilities. A debt ratio of 20 percent means that 20 percent of the company is liabilities. A high debt ratio can be negative; this indicates the shareholder equity is low and potential solvency issues. A low debt to equity ratio indicates lower risk, because debt holders have less claims on the companys assets. Overall Royal Dutch Shell is in an excellent Debt Management position. Figure 4 –RDS. A Debt Management Ratio (TIE) Trend Times interest earned or Interest Coverage Ratio is a key metric to determine the credit worthiness of a business. Essentially, the number represents how many times in the last 12 months EBIT (earnings before interest and taxes) would have covered the past 12 months interest expenses. Royal Dutch Shell’s times interest earned ratio has a four year average of 37. 79, which is 12. 18 points superior than the industry average which rests at 25. 61. This presents Shell in a healthy credit worthiness business. Profitability Ratios Profitability Ratios| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Average| Industry| Comments| Net Profit Margin on Sales| 6. 32%| 5. 47%| 6. 88%| 3. 32%| 10. 19%| 6. 44%| 6. 50%| Healthy| Basic Earning Power Ratio| 16. 12%| 10. 96%| 7. 19%| 18. 00%| 18. 77%| 14. 21%| 6. 80%| Healthy| ROA % (Net)| 9. 26%| 6. 55%| 4. 36%| 9. 50%| 12. 41%| 8. 42%| 10. 15%| Healthy| ROE % (Net)| 19. 47%| 14. 15%| 9. 49%| 20. 86%| 27. 28%| 18. 25%| 14. 24%| Healthy| | | | | | | | | | Figure 5 –RDS. A Profitability Ratio Trend When it comes to profitability, Royal Dutch Shell is on average with its competitors. Net Profit Margin is the net earnings of a company / sales. This profitability ratio compares the percent of net earnings from a companys sales. Royal Dutch Shell’s Net Profit is on par with other companies in the Oil ; Gas industry, which means it has an equal ability spend assets on business operations when compared to its competitors. Basic earning power shows the raw earning power of a firm’s assets before taxes and other leverages. This will help the firm understand their return on its assets. Return on Assets or ROA, shows the rate of return (after tax) being earned on all of the firms assets regardless of financing structure. It is a measure of how efficiently the company is using all stakeholders assets to earn returns. Royal Dutch Shell has a five year average of 8. 42%, which is 1. 73% lower than the industry average, however still in the healthy zone. Return on equity or ROE is used to measures the rate of return on the money invested by common stock owners and retained by the company from previous profitable years and shows how well a company uses investment funds to generate growth. Royal Dutch Shell’s Return on Equity indicates that it is able to reinvest its earnings more efficiently than the majority of its competitors in the Oil ; Gas industry. Typically, companies that have higher return on equity values are more attractive to investors and can provide for better growth and profitability. Market Value Ratios Market Value Ratios| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Average| Industry| Comments| Price per Earning Ratio| 7. 64%| 10. 14%| 14. 24%| 6. 06%| 8. 32%| 9. 28%| 7. 86%| Healthy| Dividend Yield| 4. 60%| 5. 03%| 5. 52%| 5. 89%| 3. 34%| 4. 88%| 4. 76%| Average| Payout Ratio| 5. 46%| 4. 76%| 8. 41%| 3. 62%| 2. 87%| 5. 02%| 2. 67%| Healthy| Book Value per Share| $ 54. 98 | $ 47. 85 | $ 45. 5 | $ 42. 02 | $ 38. 61 | $ 45. 70| $ 46. 43| Average| Earnings per Share| $ 4. 98 | $ 3. 28 | $ 2. 04 | $ 4. 27 | $ 5. 00 | $ 3. 91| $ 3. 26| Average| Figure 6 –RDS. A Market Value Ratio Trend Earnings per share (EPS) is the amount of income that belongs to each share of common stock. An important tool for investors, EPS is often used in determining the value of a stock. As noted above, Royal Dutch Shell is on average with other firms in its industry. Book value per share has slowly been on a rise over the past 5 years, from $38. 61 in 2007 up to 54. 8 in 2011. Book value is a companys net asset value; a relatively high book value per share in relation to stock price often occurs when a stock is undervalued and might be an attractive buy. Figure 7 –RDS. A Market Value Ratio Trend The price per earnings ratio (PE) is the measure of the share price relative to the annual net income earned by the firm per share. PE ratio shows current investor demand for a company share. A high PE ratio generally indicates increased demand because investors anticipate earnings growth in the future. Royal Dutch Shell has a five year average of 9. 8% PE as compared to the industry average of 7. 86%; Shell is higher by 1. 42%. The dividend yield is the sum of a companys annual dividends per share, divided by the current price per share. When investing in companies an investor should look for a stable and high dividend yield; this can insure an investor a secure a relatively stable cash flow. Royal Dutch Shells dividend yield is on par with other companies. As indicated by the payout ratio, Royal Dutch Shell’s earnings support the dividend payouts more than others in the same industry group. Cash Flow and Growth Analysis Royal Dutch Shell Cash Flow $ Million| 2011| 2010| 2009| 2008| 2007| Cash and Cash Equivalents at January 1| $ 13,444 | $ 9,719 | $ 15,188 | $ 9,656 | $ 9,002 | Net  Cash  from  Operating  Activities| $ 59,393 | $ 42,712 | $ 30,731 | $ 69,787 | $ 53,324 | Net Cash used in Investing Activities| $ (20,443)| $ (21,972)| $ (26,234)| $ (28,915)| $ (14,570)| Net Cash used in Financing Activities| $ (18,131)| $ (1,467)| $ (829)| $ (9,394)| $ (19,393)| Net (Decrease)/increase, Cash Cash Equivalents| $ (2,152)| $ 3,725 | $ (5,469)| $ 5,532 | $ 654 | Cash Cash Equivalents at  December  31| $ 11,292 | $ 13,444 | $ 9,719 | $ 15,188 | $ 9,656 | Figure 8 –RDS. A Cash Flow Trend Information used and interpreted from the Royal Dutch Shell Investors Handbook illustrates that Royal Dutch Shell decreased the amount spent on operations from 2008 to 2009; this can most likely be due to the economic downturn. Conversely, from 2009 to 2011 there has been a steady increase in cash flows for operations. When evaluating charts in figure 9 and 10 you can see that along with a decrease in cash flows from 2008 – 2009 so did Shell have a decrease in revenues, net income and Earnings per share. From 2009 – 2011 all areas show a steady and healthy growth. Growth Analysis| | | | | | Report Date| 12/31/2011| 12/31/2010| 12/31/2009| 12/31/2008| 12/31/2007| Revenue| $ 470,171 | $ 368,056 | $ 278,188 | $ 458,361 | $ 355,782 | Net income for period| $ 31,185 | $ 20,474 | $ 12,718 | $ 26,476 | $ 31,926 | Net earnings per share-diluted| $ 4. 97 | $ 3. 28 | $ 2. 04 | $ 4. 26 | $ 4. 9 | Total assets| $ 345,257 | $ 322,560 | $ 292,181 | $ 282,401 | $ 269,470 | Total stockholders equity| $ 171,003 | $ 149,780 | $ 138,135 | $ 128,866 | $ 125,968 | Net Cash ; Equivalents Flow| $ 11,300 | $ 13,400 | $ 9,700 | $ 15,200 | $ 9,560 | Figure 9 –RDS. A Growth Analysis Trend Figure 10 –RDS. A Growth Analysis Trend Capital Structure Estimation When performing the Capital Structure Est imation, the assessor can exam how the combination of equity capital and debt capital that a firm uses to finance its assets can have a positive or negative affect on the firm. The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Royal Dutch Shell’s use of debt and ommon stock (Royal Dutch Shell does not issue preferred stock) impacts the open market and, as a result, the firm’s cost of capital is impacted in both constructive and/or destructive ways. RDS. A Market Value Method / Weights| Debt| $ 174,250,000,000. 00 | 27. 71%| Equity| $ 454,619,800,000. 00 | 72. 29%| | | | RDS. A Book Value Method / Weights| Debt| $ 174,250,000,000. 00 | 50. 47%| Equity| $ 171,000,000,000. 00 | 49. 53%| Figure 11 –RDS. A Capital Structure Estimation By examining the Balance Sheet and the numbers in figure 11 you can see that Royal Dutch Shell, based on market value, has a capital structure of 27. 1% debt and 72. 29% equity in the form of common stock totaling a market capitalization of $454 billion. When utilizing the book value, the weighing scale becomes 50. 47% debt and 49. 53% equity with a value of $171 billion. Weighted Average Cost of Capital (WACC) Knowing a firm’s weighted average cost of capital is crucial when considering any new projects. A firms WACC is the overall required return on the firm as a whole and, as such, it is often used internally by company directors to determine the economic feasibility of expansionary opportunities and mergers. Generally speaking, a company’s assets are financed by either debt or equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. The weighted average can show how much interest the company has to pay for every dollar it finances. This section of the report will determine Royal Dutch Shell’s weighted average cost of capital. In determining the firm’s factor cost of common equity, the average of three methods will be utilized; Capital Asset Pricing Modem (CAPM), Discounted Cash Flow (DCF), and bond-yield-plus-risk-premium (BYPRP). Calculating the cost of debt (after tax) is figured by using the corporate tax rate and the cost of debt (Kd) which will be based on Royal Dutch Shell’s bond rating. Cost of Debt Royal Dutch Shell’s after-tax cost of debt is calculated at 2. 30%. The calculation was determined using Shells corporate AA 10 year bond rating market value. RDS. A Cost of Debt| RDS. A 10 year Bond Rating| AA|   | Cost of Debt| 2. 43%|   | Risk Free Rate| 1. 62%|   | After Tax Cost of Debt| 2. 30%| Kd(1-T)| Corporate Tax Rate| 41. 85%|   | Figure 12 –RDS. A Cost of Debt Cost of Equity – CAPM Capital Asset Pricing Model (CAPM) is a model that describes the relationship between risk and expected return and that is used in the pricing of risky securities. The general idea behind CAPM is that investors need to be compensated; this is calculated by the CAPM. The time value of money is represented by the risk-free (rf) rate in the formula and compensates the investors for placing money in investments over a period of time. The other half of the formula represents risk; this is calculated by taking a risk measure (beta) that compares the returns of the asset to the market over a period of time and to the market premium (Rm-rf) or Market risk premium (MRP). Figure 13 illustrates the outcome of the calculations and that Royal Dutch Shell’s CAPM is 10. 01%. RDS. A Cost of Equity CAPM| Formulated by: Rs = Rf + ba * MRP| |   |   | Risk Free Rate (Rf)| 1. 62%| Yahoo Finance U. S. Treasury Bond Rate| Market Risk Premium or (Rm-rf)| 6. 50%| Current Rate November, 2012| Beta (ba)| 1. 29%| E-Trade Financial| CAPM of RDS. A| 10. 01%|   | Cost of Debt (Kd)| 2. 43%|   | After Tax Cost of Debt| 2. 30%|   | Figure 13 –RDS. A Cost of Equity Cost of Equity – DCF The Discounted Cash Flow or DCF method uses future  free  cash flow projections and discounts them to arrive at a present value, which is used to evaluate the potential for investment. Figure 14 illustrates a breakdown of how the discounted cash flow is calculated. The growth rate (g) is the average of three outside estimations. After the calculation is computed, the cost of equity is equal to 11. 83%. RDS. A Cost of Equity DCF| Formulated: Rs = (D1/Po)+g so D1= Do(1+g) so (((Do(1+g)/Po)+g)|   | Rs = (((3. 42(1+6. 42%)/67. 02)+6. 42%)| | Average| E-Trade| Yahoo| Y-Charts| Growth Rate (g)| 6. 42%| 6. 80%| 6. 12%| 6. 35%| Dividend (Do)| 3. 42| Y-Charts| Stock Price (Po)| 67. 02| Current Rate November 2012| Rs = 11. 83%| Figure 14 –RDS. A Cost of Equity Cost of Equity – BYPRP Bond yield plus risk premium method is used to calculate cost of common equity for a fir m. Figure 15 shows the calculation, the after tax cost of debt plus bond risk premium rate; which calculates to a cost of equity equal to 8. 80%. RDS. A Cost of Equity BYPRP| | Rs = BY + MRP| | RDS. A After Tax Cost of Debt (BY)| 2. 30%| Shell Investors Handbook| Bond Market Risk Premium (MRP)| 6. 50%| Current Rate November, 2012|   | Rs= 8. 80%| Figure 15 –RDS. A Cost of Equity Weighted Average Cost of Capital – WACC The WACC equation  is the cost of each capital component  multiplied by its proportional weight. To calculate the WACC we first take the average of the CAPM, DCF and BYPRP methods which is calculated in figure 16. RDS. A Average Cost of Equity| | CAPM| DCF| BYPRP| Average| Royal Dutch Shell | 10. 01%| 11. 83%| 8. 80%| 10. 21%| Figure 16 –RDS. A Average Cost of Equity Royal Dutch Shell has no preferred stock, thus weight of preferred stock (Wp) is equal to 0%. Figure 17 breaks down the full calculation of the Weighted Average Cost of Capital calculation and the defined values. Using the Weight of Equity and Weight of Debt calculated from the Capital Structure Estimation in figure 11 we can conclude that Royal Dutch Shell’s WACC is equal to 8. 28%. Royal Dutch Shell Plc WACC | WACC formulated: WACC = Ws*Rs + Wd*Rd*(1-Tax Rate) + Wp*Rp. | Ws| 72. 29%| | Weight of Equity (Common Stock)| Wd| 27. 71%| | Weight of Debt| Wp| 0. 00%| | Weight of Preferred Stock| Rd| 2. 30%| | After Tax Cost of Debt| Tax rate| 41. 85%| | Corporate Tax Rate| Rs| 10. 21%| | Cost of Equity (Average)| Rp| 6. 50%| | Market Risk Premium| WACC| 8. 28%| | Weighted Average Cost of Capital| Figure 18 –RDS. A WACC Project Cash Flow Estimation Royal Dutch Shell has been approached with a proposition for a new project. The project will have a life span of eight years. The proposed project requires initial investment of $580 million to construct building and purchase equipment, and $38 million for shipping installation fee for a total of $618 million is start-up costs. The fixed assets fall in the 7-year MACRS class and has a salvage value of fixed assets at $17 million. It is expected that the new product will sale 2,280,000 units in the first year and has an expected annual growth rate of 8. 5%. The sales price is $275 per unit and the variable cost is $205 per unit in the first year, but they should be adjusted accordingly based on the estimated annualized inflation rate of 2. 3%. The required net operating working capital (NOWC) is 11. 5% of sales. A detailed analysis and calculations for the cash flow estimation and depreciation details must be performed to ensure that Royal Dutch Shell can undertake such a project. Initial Inputs and Parameters for the Proposed Project Start-Up Cost| | $618,000,000 | | | | | | Net Operating WC/Sales| | 11. 5%| | Market value of equipment at Year 8| $17,000,000 | First year sales (in units)| | 2,280,000 | | Tax rate| | | 41. 85%| Sales price per unit| | $275. 00| | WACC| | | 8. 28%| Variable cost per unit| | $205. 00| | Inflation| | | 2. 3%| Non-variable costs| | $0| | Growth in Sales | | | 8. 5%| Figure 19 –RDS. A Project Parameters Depreciation and Amortization Schedule Year| | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Total| | | | | | | | | | | | Rate| | 14. 0%| 25. 0%| 17. 0%| 13. 0%| 9. 0%| 9. 0%| 9. 0%| 4. %| 100%| Cost| | $86,520,000 | $154,500,000 | $105,060,000 | $80,340,000 | $55,620,000 | $55,620,000 | $55,620,000 | $24,720,000 | $618,000,000| Total| |   |   |   |   |   |   |   | $0 |   | Figure 20 –RDS. A Depreciation Schedule Figure 20 illustrates the depreciation schedule of eight years, outlined in the project parameters. Project Net Cash Flow Figure 21 –RDS. A Project Estimated Net Cash Flow Capital Budgeting Analysis Capital Budgeting Analysis is a process in which a business determines whether projects or investing in a long-term venture are worth pursuing. Ideally, businesses should pursue all projects and opportunities that enhance shareholder value. However, the amount of capital available at any given time for new projects is limited, capital budgeting analysis will help to determine if a project is feasible or not. Capital budgeting analysis can include net present value (NPV), internal rate of return (IRR), modified internal rate of return, profitability index (PI), payback period and discounted payback. In calculating if this project is possible or not we have determined the following budgeting analysis results in figure 22. RDS. A Budgeting Appraisal Results| Net Present Value (NPV)| $ 284,606,920. 00 | Internal Rate of Return (IRR)| 17. 0%| Modified Internal Rate of Return (MIRR)| 13. 1%| Profitability Index (PI)| 1. 41 | Payback (Years)| 4. 74 | Figure 22 –RDS. A Project Analysis Results RDS. A Payback Calculation | 0| 1| 2| 3| 4| 5| 6| 7| 8| Net Cash Flow| (690,105,000)| 121,087,715 | 158,870,226 | 148,538,663 | 149,691,454 | 152,108,518 | 166,274,191 | 181,997,451 | 362,518,222 | Cumulative CF | (690,105,000)| (569,017,285)| (410,147,060)| (261,608,396)| (111,916,943)| 40,191,576 | 206,465,767 | 388,463,218 | 750,981,440 | Pay Back|   | 1. 00 | 1. 00 | 1. 00 | 1. 00 | 0. 74 | 0. 00 | 0. 00 | 0. 00 | After review of the budgeting analysis results we can conclude that the project should be undertaken. The Profitability Index (PI) is 1. 41, if the PI is greater than 1 than the project should be taken, additionally the net present value is positive, another good sign for accepting the project. The projects Internal Rate of Return (IRR) is 17. 0%, higher than Royal Dutch Shell’s WACC which is 8. 8%, this is an optimistic calculation for accepting the project. Finally, payback addresses the projects liquidity, shorter the payback the higher the liquidly and with a current estimation of 4. 74 years, the project is hig hly recommended. Sensitivity Analysis The Sensitivity Analysis is a modus operandi used to determine how  different values of an independent  variable will impact a particular dependent variable under a given set of assumptions. Within  specific  boundaries, the sensitivity analysis is very useful  when attempting to determine the impact  the actual  outcome of a particular variable will have  if it  differs from what was previously assumed. By creating a  given set of scenarios as, illustrated in figure 23, the analyst can determine how changes in one variable(s) will impact the  target variable. In this particular case the sensitivity analysis will determine how the net present value (NPV) of the proposed project will be affected by the modification of several variables; these variables and the results can be examined in the following figures. The modified variables are sales price, variable costs, units sold, non-variable costs, weighted average cost of capital, corporate tax rate and start-up costs. For the purpose of this analysis the calculations were performed with a 10% and 20% deviation from the base in both a negative and positive trend. RDS. A Project Sensitivity Analysis Calculations Deviation| 1st YEAR UNIT SALES| | % Deviation| WACC| from| Units Sold| NPV| | from|   | NPV| Base Case| | $284,606,920| | Base Case| WACC| $284,606,920 | -20%| 1,824,000| 144,446,239 | | -20%| 6. 6%| 358,280,443 | -10%| 2,0 52,000| 214,526,580 | | -10%| 7. 5%| 320,454,423 | 0%| 2,280,000| 284,606,920 | | 0%| 8. 3%| 284,606,920 | 10%| 2,508,000| 354,687,261 | | 10%| 9. 1%| 250,612,056 | 20%| 2,736,000| 424,767,602 | | 20%| 9. 9%| 218,353,128 | % Deviation| VARIABLE COST| | % Deviation| SALES PRICE| from| Variable| NPV| | from| Sales| NPV| Base Case| Costs| $284,606,920| | Base Case| Price| $284,606,920| -20%| $164. 00| 723,298,488 | | -20%| $220. 0| (294,245,328)| -10%| 184. 50| 503,952,704 | | -10%| 247. 50| (4,819,204)| 0%| 205. 00| 284,606,920 | | 0%| 275. 00| 284,606,920 | 10%| 225. 50| 65,261,137 | | 10%| 302. 50| 574,033,045 | 20%| 246. 00| (154,084,647)| | 20%| 330. 00| 863,459,169 | % Deviation| NONVARIABLE COST| | % Deviation| TAX RATE| from| Fixed| NPV| | from|   | NPV| Base Case| Costs| $284,606,920| | Base Case| TAX RATE| $284,606,920 | -20%| $0| 284,606,920 | | -20%| 33. 5%| 353,919,217 | -10%| 0| 284,606,920 | | -10%| 37. 7%| 319,304,434 | 0%| 0| 284,606,920 | | 0%| 41. 8%| 284,689,652 | 10%| 0| 284,606,920 | | 10%| 46. 0%| 250,074,869 | 20%| 0| 284,606,920 | | 20%| 50. %| 215,460,087 | % Deviation| START-UP COSTS| from|   | NPV| Base Case| Start-Up Costs  | $284,606,920 | -20%| $ 494,400,000. 00 | 368,892,485 | -10%| $ 556,200,000. 00 | 326,749,703 | 0%| $ 618,000,000. 00 | 284,606,920 | 10%| $ 679,800,000. 00 | 242,464,138 | 20%| $ 741,600,000. 00 | 200,321,356 | Figure 23 –RDS. A Project Sensitivity Analysis Calculations Royal Dutch Shell Project Sensitivity Analysis Chart Figure 24 –RDS. A Proposed Project Sensitivity Analysis Chart Deviation| NPV at Different Deviations from Base| from| Sales| Variable|   | Non-variable|   |   |   | Base Case| Price| Cost/Unit| Units Sold| Cost| WACC| Tax Rate| Start-Up Costs| -20%| ($294,245,328)| $723,298,488 | $144,446,239 | $284,606,920 | $358,280,443 | 353,919,217 | 368,892,485 | -10%| (4,819,204)| 503,952,704 | 214,526,580 | 284,606,920 | 320,454,423 | 319,304,434 | 326,749,703 | 0%| 284,606,920 | 284,606,920 | 284,606,920 | 284,606,920 | 284,606,920 | 284,689,652 | 284,606,920 | 10%| 574,033,045 | 65,261,137 | 354,687,261 | 284,606,920 | 250,612,056 | 250,074,869 | 242,464,138 | 20%| 863,459,169 | (154,084,647)| 424,767,602 | 284,606,920 | 218,353,128 | 215,460,087 | 200,321,356 |   | | | | | | |   | Range| $1,157,704,497 | $877,383,134 | $280,321,363 | $0 | $139,927,315 | $138,459,130 | $168,571,129 | Figure 25 –RDS. A Proposed Project NPV and Range at Different Deviations from Base Scenario Analysis A scenario analysis is the process of estimating the expected value of a portfolio or project after a given period of time under specific changes in variables of the portfol ios securities or changes in key factors. Commonly, scenario analysis focuses on estimating what a portfolios value would decrease to  if an unfavorable event would occur. For the proposed project the scenario analysis was conducted assuming a 25% probability for best-case conditions; each of the variables calculated in figure 25 would be 20% better than its base-case value. Conversely, there is a 25% probability of worst-case conditions, with the variables 20% worse than the base; a 50% probability was used for base-case conditions. All figures have been calculated below in figure 26. Scenario| Probability| Sales Price| Unit Sales| Var Costs| NPV| Squared Deviation times Probability|   | | | | | |   | Best Case| 25%| $330. 00 | 2,736,000 | $164. 00| $1,726,918,338 | 422505172390830000 | Base Case| 50%| $275. 00 | 2,280,000 | $205. 00| $284,606,920 | 10125137435137500 | Worst Case | 25%| $220. 00| 1,824,000| $246. 00| ($588,490,656)| 257759816231319000 |   | | | | | |   | Expected NPV = Sum, Prob. times NPV| | | $426,910,381 |   |   | Standard Deviation | | $830,897,181 |   | | Coefficient of Variation = Std Dev / Expected NPV|   | 1. 9 5 |   | Figure 26 –RDS. A Proposed Project Scenario Analysis Conclusion In conclusion, after performing a complete analysis on the feasibility of the proposed project, it is determined that it would be beneficial for Royal Dutch Shell, plc to implement the project. The IRR and MIRR are greater than the WACC of 8. 28%, at 17. 0% and 13. 1% respectively. It is currently estimated that the project will pay for itself in approximately 4. 74 years according to the discounted payback calculations. The Net present value of the project is positive and the profitability index for the project is 1. 41 (greater than 1) it is a positive sign for the project selection. Royal Dutch Shell is currently moving in a positive direction with a healthy financial base. Financial analyses have bestowed Shell with an AA bond rating, which underlines the financial strength of the organization. Based on all the information listed above, it is with my professional opinion after the evaluation within this report that Royal Dutch Shell takes on the project; with the current and estimated futures of Shell it can only add value to the corporation. References E*Trade. 2011, December 31). Royal Dutch Shell Plc RDS. A. Retrieved November 28, 2012, from E*Trade Financials: https://www. etrade. wallst. com/v1/stocks/snapshot/snapshot. asp? YYY220_/UfRI8EalsBAnXarKLCzPko3kjoyjLMbzW9xSdWWCGroVsRTAdKeDJzNAwM5xeMSzfFm9X4tAHc+eI+8pZ9rdHSsGMEaof+37qAzRA17/MKnpCPFTrRrGXhYPAZVsWXkzq5OKgjy67owAqAG5C1fyJ6IzD55l8M8TB KZkWpNM0lH4j7Jb2aXQsoxNw Morningstar, Inc. (2012). Morningstar research. Retrieved November 2012, from http://financials. morningstar. com/ratios/r. html? t=RDSAregion=GBRamp ;amp;culture=en-US Network, Y. -A. (2012). Yahoo! Finance. Retrieved November 28, 2012, from Bond Center: http://finance. yahoo. om/bonds Royal Dutch Shell. (2012). Building an Energy Future: Investors Handbook. London: Royal Dutch Shell Plc Financials. YCharts Pro Stock Report. (2012). Royal Dutch Shell plc (RDSA). New York: Y Charts. Appendix Royal Dutch Shell Income Statement Billions $ Royal Dutch Shell Balance Sheet Billions $ Royal Dutch Shell Statement of Cash Flow Billions $ [ 1 ]. (YCharts Pro Stock Report, 2012) ] [ 2 ]. [ (YCharts Pro Stock Report, 2012) ] [ 3 ]. [ (YCharts Pro Stock Report, 2012) ] [ 4 ]. [ (YCharts Pro Stock Report, 2012) ] [ 5 ]. [ (YCharts Pro Stock Report, 2012) ] [ 6 ]. [ (YCharts Pro Stock Report, 2012) ] [ 7 ]. [ (YCharts Pro Stock Report, 2012) ] [ 8 ]. [ (Royal Dutch Sh ell, 2012) ] [ 9 ]. [ (YCharts Pro Stock Report, 2012) ] [ 10 ]. [ (Royal Dutch Shell, 2012) ] [ 11 ]. [ (Royal Dutch Shell, 2012) ] [ 12 ]. [ (Royal Dutch Shell, 2012) ] [ 13 ]. [ (Royal Dutch Shell, 2012) ] [ 14 ]. [ (Royal Dutch Shell, 2012) ] [ 15 ]. [ (Network, 2012) ] [ 16 ]. [ (E*Trade, 2011) ] [ 17 ]. [ (E*Trade, 2011) ]

Informal Reading Assessment Case Study Example | Topics and Well Written Essays - 1000 words - 2

Informal Reading Assessment - Case Study Example Moreover, the class teacher did not brief him about the assessment. After I explained in details the purpose of our meeting, john was extremely inquisitive to know why I was assessing him. In fact, he asked me if their class teacher was not qualified enough to conduct the assessment. I explained to him that all the other students were to undergo the same test. As I was about to start the test, I realized that John was busy trying to find out what was in my laptop. I asked him what his favorite class program was, and he told me about a cartoon TV program that he always watches at home in the evening. I listen to him so that he would feel appreciated. John answered short answer questions extremely well. However, I kept quiet and looked at the laptop when I asked him to explain some questions. This was expected because at his age, a child does not like challenging things or questions. John did not have many problems on the word list. In fact, all the questions on the word list for grade three were not an issue to him. He was able to handle them with a lot of ease. His frustration manifested on instructional and partly independent level, where he could miss the pronunciation of words whose syllables are almost similar. The greatest problem is where he could say the words that are particularly common in the text books whenever he sees a similar word. For example, it was†¦. For any sentence that start with It. This also resulted to confusion of words whose last syllables changes. For instance, he said enabled instead of enabling. Another problem was reading long words. He had a habit of skipping such word because they were hard to pronounce. In addition, he would interchange the pronunciation of some words. For instance, t instead of d. this is attributed to the influence of child’s first language. Goal The teacher needs to give more concentration on john’s points of weaknesses. The best way to improve on such areas is giving more assignments on the same

'Despite the extenxive advances in integration in the European Union, Essay

'Despite the extenxive advances in integration in the European Union, the member states remain in the driving seat'. How accura - Essay Example ember States are Seen to Remain in the Driving Seat.† How Accurate is this Description of Where Power Lies in the European Union? Introduction The European Union The European Union which is more formally referred to as the European Economic and Monetary Union is essentially an economic and political Union that that comprises of 28 different countries that are seen to primarily located in Europe. The European Union (EU) is seen to primarily operate through a number of institutions that variously include; the European Union Council, the EU court of Justice, the Court of Auditors, the European Commission as well as the European Parliament. The Union essentially serves to establish a common market for use by its different member states, a factor that caused the Union to eliminate the restive border controls that existed between the member states. This has allowed for the relatively free flow of both people and goods although there are however, random checks that are normally conduc ted to prevent drug trafficking and crime between the different members states (Staab, 2013). The common market formed by the European Union is seen to allow for the legal sale of products that have been manufactured in one country in another different country without the restrictive influence of any duties or tariffs. Taxes across the Union’s different member countries are also seen to have been greatly standardized. The EU is also seen to allow service providers in various fields such as medicine, banking, law, tourism, and insurance to freely operate across all the different member countries of the Union. While the formulation of successive treaties is seen to have helped provide the EU with an extensively elaborate foreign policy making machinery, the various member states of the EU are seen to not collectively mobilize their strength to help the Union fully realize its power. It is this position that is seen to raise question surrounding power in the European Union and t he general postulation that â€Å"Despite the Extensive Advances in the Integration of the European Union, the Member States are Seen to Remain in the Driving Seat.† The History of The Formation of the European Union The idea behind the formation of a unified Union Europe is seen to not be a new one. During the 9th Century, the Frankish emperor is seen to have made efforts towards the unification of Europe and ended up dominating much of Europe. During the beginning of the 19th century, Napoleon Bonaparte is seen to have led France in an attempt to try and attain this objective and also ended up conquering a large part of Europe. During the 1930’s, the dream of having a unified Europe is seen to have been borne by Adolph Hitler who sparked the second world war in his attempt to conquer all of Europe. Throughout history, numerous wars

Fifties & Advertisements Essay Example | Topics and Well Written Essays - 1750 words - 1

Fifties & Advertisements - Essay Example In the US, these advertisements were very much against the USSR and were bent on expressing opinions against the communism. During the post-World War II era, these advertisements gained much popularity and support from the masses. The government authorities were also eager to support these advertisements even if they portrayed inaccurate details about USSR and communism. This paper shall further explain and provide support to the idea that these advertisements increased the tension between the US and the USSR. This paper is being conceptualized in order to establish a scholarly and academic discussion of the thesis and the subject matter. The thesis of this paper is: that the 1950s Cold War Advertisements were used as propaganda by the US to sell the war to the American people. The 1950s Cold War advertisements depicted scenes and images which were very much anti-USSR and anti-communism. Three reasons why this thesis is true are based on the following explanations: 1. these images were supported by the US government even if they were inaccurate depictions of USSR and of communism; 2. these advertisements focused on gaining support for the Cold War; and 3. these images nurtured the image of the USSR and communism as evil and threats to American democracy and world peace. The Cold War advertisements were used by the US to sell the war to the American people. The advertisements which were posted during the Cold War period had the backing of the US government. The US government used advertisements in order to fuel further the feelings against communism and the USSR. An ad from Scot Tissue Towels reads: â€Å"Is your washroom breeding Bolsheviks?† and another advertisement for â€Å"truth dollars† reads: â€Å"Sure I want to fight communism—but how? With truth dollars—that’s how! The ad goes on to say that the truth dollars â€Å"fight communism in its own backyard –

A Problem Statement Of Quality Services Information Technology Essay

A Problem Statement Of Quality Services Information Technology Essay CHAPTER 1 1.1 INTRODUCTION Library is the important place for the people especially the students since it helps the students in their learning process. As it seems important for the students, library should be able to provide a conducive environment in order to help the students to do their revision for example. In other words, student satisfaction is an important measure of quality while providing the services in libraries. However, students perceptions about libraries seem to have been largely ignored by library management in developing countries. So, the assessment of quality while giving the services provides an important feedback for libraries to assess and improve its services to its users (Yrd.Doc.Dr. Zeynep Filiz -2007). Good service delivery to students is one of the primary goals of service organizations like libraries and is the ability of any service provider to provide promised products or services. Libraries are essentially learning organizations stimulating academic and research activities by providing access to world-class information resources. Traditionally, the success of any library is measured in terms of the size of its collection, staff, and budget. But in the present day competitive world, the libraries need to go beyond the traditional modes of assessments and apply marketing techniques for understanding customer requirements. Students focus in services delivery is essential for satisfying the students. The success depends on students perceptions or judgment on the quality of products/services provided by the service personnel in libraries and quality is the measure of how well the products/ services delivered meet students expectations (Manjunatha K and Shivalingaiah D-2004). 1.2 PROBLEM STATEMENT Quality services in library are very important aspect in order to satisfy the students through having continuous improvement and the students perception is an important aspect to reveal how satisfied the students towards the library contribution in helping them in learning process. Library must provide a good quality of services, sufficient of collection/information, good activities and staff attitude at the same time solving the challenging faced by them. This can ensure that library can play their role as an academic centre that contributes to a conducive learning environment. If the challenges faced not being solved, it will make students satisfaction become lower and it is hard for the students to find what they want in the library. Therefore, library must find out what kind of solution that needs to be done in order to face the challenges since every year new students come with different needs and expectations. Then, library should do the continuous improvement every time so tha t they could give focus on quality services which makes the service runs smoothly. For that reason, this research is made to know the quality of services provided by UMS library and any continuous improvement can be done if needed. The issues that arise is in terms of the ability of UMS as a learning places to contribute a conducive learning environment in helping the students to access information sources and University to produce a knowledgeable and successful graduate This is accordance with the mission of UMS library Providing comprehensive resources and services to support the university requirements in teaching, learning, research, innovation and publication. So that, this research can measure whether student satisfaction on UMS library services provided fulfill the students need through examine the ability of UMS library in terms of quality services, collection/information, library activities and staffs attitude. 1.3 RESEARCH OBJECTIVE The objectives of this study are: To investigate the students satisfaction on the contribution of UMS library in supporting learning environment process. To determine services at UMS library that need for improvement. 1.4 SCOPE OF STUDY The scope of the study covers the public as the user at UMS library. Public in this scope will involve the final year students that consists of part 6 (semester 2 year 3) students in economy. The purpose by choosing part 6 students is because they are more experience in using the library services. They will now either the UMS library has help them in supporting their learning process over the three years study at UMS. 1.5 SIGNIFICANT OF STUDY 1.5.1 This study as a basis to determine students dissatisfaction towards services given by UMS library. 1.5.2 This study as a platform for the students to express their perception on services given by UMS library. 1.5.3 This study as a basis to identify the area of concern at UMS library. 1.5.4 This study as a platform to suggest possible solution to the problem and for improvement. 1.6 DEFINITION OF TERMS/CONCEPTS 1.6.1 Learning environment The place and setting where learning occurs; it is not limited to a physical classroom an includes the characteristics of the setting (www.teach-nology.com/glossary/terms/l/). 1.6.2 Quality Nunan and Calvert (1992) point out that: The term quality defies any definition which will be universally accepted. When it is linked to performance, quality implies evaluation for comparative purposes; `measures of quality involve norms and standards and judgments of quality are assisted through use of norm or criterion referenced indicators. Where measurement focuses on the student as a product of education, quality is seen as `value-based by the process of education. When the emphasis is management of quality, attention focuses on strategies for achieving or improving quality. 1.6.3 Perception Perception is the process of attaining awareness or understanding of sensory information. 1.6.4 Satisfaction The good feeling that you have when you have achieved something or when you wanted to happen does happen (Oxford Advanced Learners Dictionary) 1.6.5 Library A considerable collection of books kept for use, and not as merchandise, as a private library; a public CHAPTER 2 LITERITURE REVIEW AND CONCEPTUAL FRAMEWORK 2.1 LITERITURE REVIEW The concepts of satisfaction and quality are often used together, and sometimes interchangeably. Few researchers have identified the particular relationship between the two concepts, however a number of general statements have been made. According to Oliver (1981:42) à ¢Ã¢â€š ¬Ã‚ ¦ satisfaction is the emotional reaction following a disconfirmation experience which acts on the base attitude level and is consumption-specific. Perceived quality, on the other hand, is defined and contrasted to satisfaction by (Parasuraman, Zeithaml and Berry, 1988:16) as à ¢Ã¢â€š ¬Ã‚ ¦ a global judgment, or attitude, relating to the superiority of the service, whereas satisfaction is related to a specific transaction. Thus, these two concepts are related in that incidents of satisfaction, over time, result in perceptions of quality (Hebert, 1993:21). However, academic libraries are facing two major threats: a global digital environment and increasing competition. They must improve the quality of their services in order to survive (Rowena Cullen, 2001). Each year new students enter the learning environment with varying library usage and information gathering skills. Millson-Martula and Menon (1995) state that one element of high quality service is the incorporation of users personal needs and expectations into the development of programs and service. The concept of user satisfaction in the library literature likewise has evolved to include a broader focus on the users perspective of the library. Applegate (1997) defines user satisfactionà ¢Ã¢â€š ¬Ã‚ ¦ as a personal, emotional reaction to a library service or product. Bitner and Hubbert (1994) suggest that it consists of service encounter satisfaction, the consumers dis/satisfaction with a discrete service encounter, and overall service satisfaction, the consumers overall dis/satisfaction with the organization based on all encounters and experiences with that particular organization. In addition, a characteristic of service delivery is the simultaneous nature of production and consu mption (Zeithaml Bitner, 1996). Customers are usually involved in some (if not all) of the production processes and therefore have an impact on the outcomes of the service delivery and their satisfaction with it. Bowen (1986), Mills and Morris (1986), and Kelley, Donnelly and Skinner (1990), have shown that participation, or the use of customers as partial employees, can improve productivity for providers as well as improving service quality and customer satisfaction. Bateson (1985) note that problems in the service encounter are often due to conflicts over who is in control of the service interaction, and hence, a way of increasing control for the customer is to offer alternatives or choices within the service setting, such as providing on-site or remote access to electronic resources, loan or photocopying of printed materials, self-service or staff service facilities, silent study or discussion areas, on-site or telephone or email or postal reference consultation. Service providers must develop mechanisms in order to ensure that customers provide the required information and effort to facilitate the service encounter and outcome (Kelley, Donnelly Skinner, 1990). However, though quality is a much studied subject in manufacturing as well as service sectors, there is no universally accepted definition to define quality. The definition of quality is subjective, personal and changes from person-to-person, place-to-place, organization-to-organization, situation-to-situation and time-to-time. However, Conformance to Standards and Fitness for Use is the classic definitions of quality. The quality as a subject of academic interest took momentum in 1950s as a result of the studies on the subject of quality by management gurus like Deming, Juran, Crosby, Taylor, Feigenbaum, and Peters. However, the concepts of quality were mainly applied to products in the manufacturing sector. Due awakening of consumerism in 1980s, the quality of service as a subject of academic interest caught the attention of marketing professionals and they attempted to define service quality from customers perspective. Experts like Kotler, Levitt, Gronroos, Garvin, Cronin, Taylor, Teas, Rust, Parasuraman, Zeithaml, and Berry have contributed to the growth of the subject and many models were developed on its measurement. The team of Parasuraman, Zeithaml and Berry (hereafter PZB) had conducted several research studies to define service quality and identify the criteria that customers use while evaluating the service quality in service organizations. They define service quality as the extent of discrepancy between customers expectations or desires and their perception of what is delivered. In other words, it is the comparison of what customers expect before the use of product or service with their experience of what is delivered. According to Professor Gaynor Taylor, Deputy Vice-Chancellor of Leeds Metropolitan University in her talk on seminar of the impact of Libraries on Learning, Teaching and Research (LIRG) (2001), she spoke of the impact of libraries on cultural and educational life across the country and their key role in enabling and expanding participation in education and lifelong learning. She then went on to praise the role of libraries, arguing that they were central to academic communities. She emphasized the benefits of integrating libraries fully into the student learning experience. Libraries need to be involved from the very beginning of course development and need to make relevant information available in ways that suits users access needs. According to Stamatoplos (1998), consideration of satisfaction should be an important part of the evaluation of library services. Satisfaction depends, to some extent, on patron expectations of services. Satisfaction appeared to be related to student perceptions of information accessibility, staff competence and helpfulness, computer usefulness and ease of use, and skill level for using libraries. He questioned why should library administrators care about patron satisfaction? Some think patron satisfaction is of secondary importance that the purpose of a library is to provide information services and that evaluation of the library performance ought to be judged from that perspective alone. However, others recognize that failing to satisfy the patron is failing to serve the patron. This is not about just making patrons feel good. There is a basic reason for focusing on patron satisfaction: Who is the best judge of whether a patron has been served well or poorly? Professional librarian s may know whether they have provided accurate, timely information in response to a request. Is that enough? Clearly, accurate and timely information is a minimum requirement, but unless the patron is satisfied, in general, the service could have been better. Based on his research on the Effects of Library Instruction on University Students Satisfaction with the Library, he found that the patrons experienced less difficulty in finding material than expected, the patrons also received materials faster than expected; average and maximum wait times were shorter than expected for both books and articles. In terms of the perception of staff helpfulness, patrons perceived the library staff to be significantly less helpful than expected. In addition, in his findings on the perceptions of information accessibility he found that the proportion of needed materials available at the library, the difficulty of finding the materials, and the maximum wait time for articles are all significantly re lated to overall satisfaction with the library. Besides that, in terms of the perceptions of staff competence and helpfulness, it shows that the perceptions that library staffs are competent and helpful are highly correlated with overall satisfaction. Based on the research done by Steve Hiller (2001) on the Assessing User Needs, Satisfaction, and Library Performance at the University of Washington Libraries, the 1998 survey asked whether libraries were open when needed on evenings, weekends, summer, and interim periods. Graduate students, as the case with the previous two surveys, had the lowest satisfaction with hours while faculty had the highest, undergraduate student satisfaction had slipped from 1995 when it was similar to faculty satisfaction. When asked to choose from a list of priorities, more than 37 percent of graduate students and 42 percent of undergraduates chose increased library hours as a priority compared to 17 percent of faculty. Graduate students also wrote more comments about hours than any other group. So, responses to overall library satisfaction questions on the 1998 survey showed faculty had the highest satisfaction while undergraduate students the lowest. According to research done by Noriah Mohamed Ali on the Staff Professionalism in University (Universiti Teknologi MARA, Shah Alam), she said that in organization fulfilling customer satisfaction is very important. It is a part of staff jobs. Customers do not ask for too much, it is enough if staff can provide them with clear information, courtesy, the ability to answer them politely and the service can easily be accessible. In service oriented organizations, staff has a big responsibility to treat customers well. This is because service is their core business like in library. As an important person in library, there is no emotional influence in delivering services to the students. Staff must be professional in dealing with students. They should be helpful, polite, friendly, respectful, well trained and knowledgeable. All these will lead to the students satisfaction. Based on this research also, it shows that there is linear relationship between knowledge level of staff and customers satisfaction. Customers need to get information and staff needs to be able to respond to customers questions. It may be that, staff needs to have some alternative methods in answering customers questions. Staff should not cause customers to doubt and be confused about the solution offered by them. Staff needs to have better knowledge in academic affairs and other matters that related to the university. On the other hand, based on the research done by Norliya Ahmad Kassim (Faculty of Information Management, Universiti Teknologi MARA, Shah Alam, MALAYSIA) and Khasiah Zakaria (Perpustakaan Tun Abdul Razak , Universiti Teknologi MARA, Shah Alam), they were investigate users perceptions on the contributions of Universiti Teknologi MARA (UiTM) Libraries in creating a learning environment. It shows that the library users were only quite satisfied in terms of the services, collection/information, and activities of the library as a whole. The findings revealed that users were least satisfied with the attitude of the library staff compared with other aspects of the library evaluated. Among the four aspects of the library, respondents were relatively most satisfied with collection/ information (mean score = 3.27), followed by services to users (mean score = 3.18), library activities (mean score = 3.16) and staff attitude (mean score = 3.06) in that order. The information produced through this study will be of use to the improvement of library services and betterment of the library profession, and serve as a contribution to the body of knowledge in the area of user satisfaction on libraries contribution and their services to users. There is an urgent need to examine the perceptions of the students on the contribution of UMS library in creating learning environment process. 2.2 CONCEPTUAL FRAMEWORK Independent variables Dependent variable Perception of the students Collection / information provided Library activities Staffs atitude Quality services Figure 1 2.2.1 INDEPENDENT VARIABLES: SERVICES 2.2.1.1 Quality services Quality services is refer to opening hour, signage, reference service, willingness to help, performing services right, photocopy services and etc. 2.2.1.2 Collection/Information Collection/Information is refer to past exam papers, OPAC stations, comprehensive online database, accessible on digital collection, up-to-date information, comprehensive books collection and complete relevant journal. 2.2.1.3 Academic activities Teaching, learning and training that library provide to the students. 2.2.1.4 Staffs attitude Appearance, knowledgeable, confidence, availability and motivate learning are refer to the attitude that shows by the librarys staff. 2.2.2 DEPENDENT VARIABLE: PERCEPTION Perception is the process of attaining awareness or understanding of sensory information. CHAPTER 3 RESEARCH METHOD 3.1 Research Design For the purpose of this study, the research design will be sample survey. It means the administration of questionnaires to a sample of respondents selected from some population. Types of approaches being used is by a questionnaire survey. 3.2 Unit of Analysis As the study will identify public perception towards the contribution of UMS library in supporting learning environment process, therefore the unit of analysis will be the final year students in school of Economy and Business study. 3.3 Sample size The sample size for the purpose of this study is 100 respondents. 3.4 Sampling Technique In this study, the stratified random sampling will be used. This sampling design which is the most efficient is a good choice when differentiated information is needed regarding various strata within the population which are known to differ in their parameters (Sekaran 2003). The population from this study consists of the user of UMS libraries. 3.5 Research Measurement/instrument The questionnaire used was structured into 3 sections. Section A focused on the personal data of the respondents such as age, gender, education level and the frequency using the UMS library services. The respondent only need to label the data related to them. Section B focuses on the perception of the students on contribution of UMS library in supporting learning environment process. The question is regarding on four elements that consists the quality of services, collection/information, library activities and staffs personality. The respondents were answer according to five-point of likert scale that indicate 1 is strongly disagree, 2 is disagree, 3 is neither agree or disagree, 4 is agree and 5 is strongly agree. The respondent required to circle one of it. Respondent perception is measure according to five-point of likert scale. Respondents were ask with certain statement to look their respond on that statement either they agree or disagree. Agree or disagree on that statement will reflect their perception. Finally, Section C consist only one question which is regarding the satisfaction on the contribution of UMS library in supporting learning environment process. This is the overall satisfaction of the students based on the question ask in section B. In this section, the respondents answer were also based on the likert scale (5 points) .The respondent were required to express their satisfaction towards the UMS library contribution from 1 is refer to worst perception to 5 refer to better perception. 3.6 Data collection Basically, there are two method used for the collection. Those are primary data collection and secondary data collection. Primary data is a data which collected originally by the researcher based on his effort. Example, the data for this study will be collected through questionnaire to the focus group. This method was chosen because the designed questionnaire could be sent personally to them in a limited time and they have to return it back on that time. While, secondary data is the information which is already in existence that related to the study. It includes the data from the journal, book, and internet search. For this study, both of the data collection method is being used so that it will be help in term of an understanding and the accuracy of information that will be received. 3.7 Data Analysis The data analysis for this study conducted through Statistical Package for Social Science software or SPSS version 17.0 which use the descriptive analysis and also crosstab. SPSS will be used as medium to analyze the data where the raw will be entered in the computer as a data file. By using the tools, any missing value can easily be identified. The tool will help in analyzing data such as table, figure also percentage.

Poor Richards Almanac Essay -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  First published by Benjamin Franklin in 1732, â€Å"Poor Richard’s Almanack† was a guide to both weather forecasts and wise sayings. Franklin used the pseudonym Richard Saunders in writing the text, which became an annual publication up until 1757. Response to the almanac was tremendous, and it sold as many as 10,000 issues a year. Second only to the bible, â€Å"Poor Richard’s Almanack† was one of the most popular and purchased publications in colonial America. The almanac stressed the two qualities Franklin found to be essential to success, industry and frugality. Benjamin Franklin wrote this in hope of having a positive effect on the colonies.   Ã‚  Ã‚  Ã‚  Ã‚  Franklin wrote â€Å"Poor Richard’s Almanack† as a service to the American people, hoping to educate them and entice their intellectual cravings. Since it was extremely common for the almanac to be the only publication a person ever purchased, Franklin felt indebted to write as much as he possibly could. This important publication opened the discussion of many important issues people did not previously think about in their daily exchange (Giblin 24). From guidance on friendship to a prediction on the season’s weather, â€Å"Poor Richard’s Almanack† was a must-have on every colonists list.   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"Poor Richard’s Almanack† contained advice and readings having to do with many various subjects including women, marriage, economy, servants, wit, law, food, security, wealth, vi...

Aint I a Woman Essay

In the year 1851 in the town Akron, Ohio a woman delivered a speech at a women’s convention that would be forever remembered for its greatness, genuine and powerful message. In the speech Sojourner Truth talked about her experiences not only about being a women but being a black woman in that society. In the speech she uses her personal experiences to connect with her audience and provoke them physically and emotionally. Sojourner Truth uses repetitive language, personal experiences, and sacred references to connect with her audiences emotionally and invokes her audience with the power to overcome racial and gender inequality. In her speech Sojourner Truth recognizes herself as a victim of inequality by stating how she faces discrimination everyday as a black woman. In order to provoke an emotional response in her audience she uses her personal anecdotes and invites her audience who are mostly women facing discrimination from the society. She also references to a man claiming that he says â€Å"women need to help into carriages and lifted over ditches and have the best place everywhere.† After saying the following quotes she follows an immediate denial. She says that no one is polite to her. She angrily exclaims â€Å"no one ever helps me into carriages, lifts me over ditches or gives me the best place!† By saying this quote she shows how hypocritical the society was at that time. In her speech Sojourner Truth creates the feeling of resentment in her audience by depicting the hypocrisy between men and women in the society. She also creates the feeling of empowerment in her audience. By explaining the hypocrisy in her own life Sojourner Truth invites her audiences to realize their own unfairness happening in their lives which they may want to change. She also exclaims her vulnerable state which grabs the audience’s emotions and asks for their sympathy. After she has talked about the unfairness in her life Truth empowers her audience by exclaiming and repeating a rhetorical question â€Å"ain’t I a woman?† She repeats this question again and again because she believes that she has her right to her own equality. She repeats this question because she wants her audience to feel the same empowerment she is feeling and she wants them to realize that they deserve their right to their equality. She exclaims this question over and over again each time with her personal story and builds up the energy in her audience. She also compares herself to a man by saying â€Å"I have ploughed, planted and gathered into barns and no man could head me.† She continues to repeat this question to make the claim that she is equal as a man and she needs equality. Sojourner Truth also uses religion and faith to make her point to the audience. She makes references to the bible when she is giving her speech and makes an emotional connection with her audience who are mostly Christians. Since most of the audiences were Christians she realizes that they can relate more positively to her ideas and her claims. When she opens up her speech she uses the word â€Å"children† referencing that she sees everyone in her audience equally like a mother treats her children equally. By using the word â€Å"children† she also foreshadows that her speech is going to be equality among the society. Sojourner Truth ends her speech with her most empowering fact. She states that a man said that a woman can’t have as many rights as a man because Christ was not a woman. She cleverly contradicts this statement by stating the quote â€Å"cause Christ was not a woman! Where did your Christ come from? From God and from woman. Man has nothing to do with him.† After she says the following quote she also says a really empowering statement to the audience. She claims â€Å"If the first woman god ever made was strong enough to turn the whole world upside down all alone, these women together ought to be able to turn it back and get it right side up again.† In this statement she references the strength of a Christian figure of the world’s first woman, Eve. When she says this statement Sojourner clearly wants each and every member of her audience to know to know they are emotionally and physically capable of fighting injustice. Sojourner uses multiple rhetorical tools to engage her audience. She uses her personal stories as pathos and connects to her audience through her inspirational stories. When she references Christ in her speech she tries to use ethos to prove her point. She also uses repetition to engage and empower her audience. Even though we were not there to hear Sojourner’s speech we can still feel the empowerment and inspiration the speech holds. In the speech it is clear that she does not want violence to fight for her injustice she explains that she only wants equality because she believes that men and women are not different. Although this speech is about woman’s equality she also explains the injustice African Americans had to suffer from. In her speech Sojurner Truth easily connects with her audience emotionally and allows them to realize that do not need this injustice and deserve equal rights.

Italian Unification

To what extent did foreign intervention impact the Italian unification movement? Italy, 1870. The unification movement of Italy has just been completed, the movement that could not have been successful without the efforts of Italy itself. Though foreign intervention was a minimal part of the unification, and at times even more of an obstacle than aide, without the militaristic action, internal economic and political change within Italy, the unification would not have been sparked, much less completed as successfully as it was.One of the important factors that contributed to the successful unification of Italy, was the decision to take militaristic action by joining wars and invading states that were crucial to the completion of the unification and would benefit Italy in the long run. By making the decision to join the Crimean war, and therefore aiding France and Great Britain, not only did Piedmont make a name for itself among all of Europe, gaining respect and fame, but the benefits for Italy in the long run were also known by Cavour, the leader of Piedmont at that time.Just by making the decision to aide France and Great Britain, it demonstrates how aware Piedmont was of the benefits of joining the war, and how the future Italy, and its unification would be impacted through it. Additionally, in the midst of the unification, it was the leaders of Italy that decided to invade the Papal States, to eventually complete the unification of Italy.This proves that the efforts of Italy itself completed the unification, because if the Papal States were not invaded, then Rome still would not have been part of Italy and the unification would have remained uncompleted. In addition to the militaristic action that was taken by Italy, the internal economic change that occurred within the nation also sparked the unification of Italy by furthering Piedmont, and eventually the rest of Italy’s image of a state in the process of modernizing.The textile industries, such as t he wool, silk and cotton industries were prime examples of Piedmonts economic industrialization. By industrializing the state, more citizens were happily employed, thereby creating a sense of unity among the people. Additionally, the construction of the railways advanced communication, and this economic development would eventually lead to benefits similar to those in Great Britain and in France.This development was again one instituted by Italy, and contributed greatly to the unification of Italy. Finally, under Cavour’s rule, trading treaties were signed with states such as France, Portugal, Britain and Belgium. Through these treaties, Italy was able to gain economic growth and support, resulting in import and export increases. Through these economic changes, the nation grew as a whole, and the citizens gained a greater sense of unity and recognition as a unified country from foreign states.And lastly, the political change that occurred under Cavour’s rule within Ita ly also shows the measures Italy took to complete a successful unification. A large part of the new political changes that were occurring in Italy stemmed from the new leaders that were instituting them. Mazzini, Garibaldi, Victor Emmanuel II and Cavour were all political figures that contributed to the unification of Italy, and without Mazzini’s motivation, Garibaldi’s military strength, Cavour’s brain or Victor Emmanuel II as King, the unification would not have been possible.Additionally, the statuto that was retained as a liberal constitution in Piedmont was an important factor in the unification, as it signifies the start of political freedom that began in Piedmont, and eventually spread throughout Italy. These ideas, which sparked the unification, could not have been put in place by any foreign nations. In conclusion, through the militaristic actions taken by Italy, in addition to the internal economic and political changes that occurred, it is clear that foreign intervention was not the cause of the successful unification movement that occurred in Italy.

Domestication of the Dog essays

Domestication of the Dog essays Todays dogs serve as a number of different tools. We train dogs to see for the blind, we train them to sniff for drugs, we train them to save peoples lives, and we train them to be our faithful companions. There is no doubt that the dog has a wide variety of skills and jobs. We selectively breed the dog to gain the certain attributes we are seeking, and we know which dogs will perform the best at what we want them to do. The question is how long ago, and why did the dog become our aids, tools, and companions? Answering this question means dealing with the four fields of Anthropology: Ethnologically, Archaeologically, Physically, and Linguistically. The most obvious way to learn about the past of the dog species, is to treat it the same way we treat ancient societies. Archaeologists study where they once were, look at their remains. Where they lived, what they looked like, and how they changed over time. An example of using the Archaeological field of Anthropology would be the excavation of the Roman city, Pompeii, which was destroyed by the volcano Vesuvius in AD 79. When finally excavated, searchers found the remains of a dog lying across a child, apparently trying to protect him. By looking at this individual skeleton, we can estimate that just 1900 years ago, the inhabitants knew of the dogs desire to protect. They probably counted on dogs similarly to the way we do today. Other archaeological digs have suggested that the relationship between dogs and humans dates to about 14,000 years ago. Most experts do agree the dog was the first domesticated animal, was domesticated around 14 to 15,000 years ago. The earliest bones of dogs that we have recovered come from a site called ein Mallaha in Israel. This site was discovered in 1979 and the bones date back to 12,000 years old but historians believe the dog had been domesticated even a few thousand years before that. Another field of Anthropology is t...

CHAPTER ONE Personal Statement Example | Topics and Well Written Essays - 250 words

CHAPTER ONE - Personal Statement Example an enterprise in regard to retention or acquisition of customers is highly influenced by market trends and the interaction and relationship between that enterprise and its customers. The evolution of firm-customer relations have made companies more persistent on acquiring new customers than they pursue customer retention. This has come at a time when companies face industrial and informational change, thus the need to diversify their customer base. Essentially, acquisition of customers provides for this need effectively and efficiently. Market competition is another critical factor that makes companies persistent on acquiring new customers. Customer-driven competition requires that companies align their view of the customer with all the underlying business functions, thus becoming customer-strategy enterprises (Peppers and Martha 32). The ultimate objective is to enhance the realization of enterprise profitability while ensuring that the diverse and dynamic customer interests are met. Changing the new-customer-acquisition course would be influenced by a redirection of priority to retention when it comes to growing customer base

Labeling and crime Research Paper Example | Topics and Well Written Essays - 2500 words

Labeling and crime - Research Paper Example These difficulties notwithstanding, this particular analysis will seek to engage the reader with a broader understanding for how labeling of individuals contributes to the pervasive levels of crime that are oftentimes found within certain demographics. As with so many of the questions concerning causality, the analysis will seek to understand how labeling and societal definitions of expectation impact upon the way in which individuals within groups tend to understand the environment within the world around them. Accordingly, rather than tackling the impact of societal â€Å"labels† throughout the criminal justice system, the essay will instead focus upon the way in which racial/ethnic labels tend to reinforce or create unnatural constraints that define the behavior and expectations of individuals within the system. With regard to the segregation into distinct neighborhoods, this a sociological construct that has existed since the dawn of time. Taking the United States as an example, it can be seen that since the United States was ultimately a nation that was founded upon immigration, the power of this influx of â€Å"new† people into the United States created a need for a high level of housing space for them to live (Peterson & Krivo, 2012). Naturally, as Italians, Irish, Polish, and a litany of others began to arrive in a foreign land, they found themselves at a distinct disadvantage; oftentimes not speaking the language and having few if any opportunities. As a function of this, and the level of rejection that they received by clannish groups of more established Americans, ghettos began to pop up all over the nation. Looking further back in history, the freedom from slavery created a situation in which tens of thousands of African Americans moved North in search of a better life and m ore equality (Plumm & Terrence, 2013). Sadly, this search oftentimes led to a dead