Fake US Soldiers Robbing Women Online

The U.S. Army Criminal Investigation Command (CID) warns that women in the U.S. and around the world are being scammed by persons pretending to be U.S. soldiers deployed in war zones. CID warns that these fake soldiers promises of love and devotion only  Ã¢â‚¬Å"end up breaking hearts and bank accounts.† According to CID, the pretend heroes sink so low as to be using the names, ranks and even pictures of actual U.S. soldiers - some killed in action -- to target women 30 to 55 years old on social media and dating web sites. We cannot stress enough that people need to stop sending money to persons they meet on the internet and claim to be in the U.S. military, said Chris Grey, Army CIDs spokesman in a press release. It is heartbreaking to hear these stories over and again of people who have sent thousands of dollars to someone they have never met and sometimes have never even spoken to on the phone. According to Grey, the scams typically employ clever, romantically worded requests for money to help the fake â€Å"deployed soldier† buy special laptop computers, international telephones, military leave applications, and transportation fees needed to keep the budding â€Å"relationship† going. Weve even seen instances where the perpetrators are asking the victims for money to purchase leave papers from the Army, help pay for medical expenses from combat wounds received, or help pay for their flight home so they can leave the war zone, said Grey. Victims who get worried and ask to actually talk to the fake soldiers are typically told the Army does not allow them to make phone calls or that they need money to help keep the Army internet running. Another common thread, according to Grey is for the soldier to claim to be a widower raising a child or children on their own. These perpetrators, often from other countries, most notably from West African countries are good at what they do and quite familiar with American culture, but the claims about the Army and its regulations are ridiculous, said Grey. Report Them All forms of financial fraud, which is exactly what these fake, love for money soldiers are trying to pull, can now be reported through the StopFraud.gov website Military Leave is Always Earned, Never Bought No branch of the U.S. military charges service members money for permission to take leave. Leave is earned, not purchased. As the U.S. Army Criminal Investigation Command recommends: Never Send Money - Be extremely suspicious if you are asked for money for transportation costs, communication fees or marriage processing and medical fees. In addition, be very suspicious if the person you are corresponding with wants you to mail anything to an African country. Where to Turn Them In If you suspect or know you have been victimized by a fake soldier scammer, you can report the incident to the FBIs Internet Crime Complaint Center (IC3). Out of a concern for the safety and privacy of their servicemembers, all branches of the U.S. military have removed their web-based, online personnel locator services. Scams Targeting Veterans, Military Personnel, and Retirees In another despicable outgrowth of the wars in Iraq and Afghanistan, the IRS warns of email phishing scams targeting veterans, current military personnel, and retirees receiving VA disability benefits. The emails falsely claim that individuals currently receiving disability compensation from the Department of Veteran Affairs (VA) may be eligible to obtain additional funds from the IRS. The emails come from a bogus outfit calling itself Defense Finance and Accounting Services, and while the email address ends with a â€Å".mil† domain, it is not a legitimate government military email address. The email promises the victims that by sending copies of their VA award letters, income tax returns, 1099-Rs, Retiree Account Statements, and DD-214s to a colonel at an address in Florida, they can receive additional money from the IRS. Of course, as the IRS points out, they cannot and will not. In fact, by giving the non-existent â€Å"colonel† the personal financial information shown on the requested documents, the victims could face financial disaster. To avoid falling victim to this or similar scams, the IRS reminders taxpayers to watch out for the following: Fictitious claims for refunds or rebates based on false statements of entitlement to tax creditsEmails from unfamiliar senders asking for personal informationInternet solicitation that direct individuals to toll-free numbers and then solicit Social Security numbers or other personal information The IRS never contacts taxpayers by email. The IRS initiates most contacts with taxpayers through regular mail delivered by the United States Postal Service.

Gender Ideals And The Early Modern And Medieval Era

Gender ideals in the early modern and medieval era were supported by the ideals of Christianity. In the 16th century, Christian churches in Europe split into many different churches, which caused some Protestant reformers to create new ideals for men and women that clashed with the old ideals still present in some churches. The usual characteristics that were present in men and women before the split consisted of men working outside the home to support the family financially. The women would typically stay home with the children and were responsible for supporting the family by preforming household chores, such as, cleaning and cooking. The gender ideals that are present in both eras do not show significant change, but new religious ideals†¦show more content†¦Men were ridiculed for taking on a more feminine role in the household, but they were only trying to be obedient and follow what God called them to do. So, the ideals from before the Protestant Reformation and after cl ashed due to what was expected for men. Piety and devoutness to God is another expectation of Christian men and one of the most important duties they should teach to their children. Piety became a new ideal for men after the Protestant Reformation. One important duty for being pious was making sure that the child was baptized and brought up into the Christian faith. â€Å"Amyed Chappuis†¦ presented the infant to be baptized and declared that the child s name was Claude. The minister refused to baptize the child with this name because it was that of a local saint-one of a considerable list of names labeled superstitious, and therefore unacceptable, by the Reformed pastors†¦ the minister baptized the boy Abraham† (Spierling 95). In this situation, male dominance from early modern Europe and piety coming from the Protestant Reformation clashed. Men show dominance through naming their child, especially if the name chosen is a family name the to be carried on through generations. Amyed Chappuis brought his son to be baptized with the name Claude, but was denied by the pastor to name his child this. The pastor interfered with the medieval ideal of dominance that is given to fathers to name their child.Show MoreRelated Gender Roles Essay2315 Words   |  10 Pagesto do with culture. Moreover, the ideals and distinctions of masculine and feminine activities and behaviors are reinforced and redefined through powerful social norms of any particular period. In Medieval and early Modern Europe societies, gender roles were clearly defined by the strong prevailing social structure of the period and were constantly changing because of historical circumstances. For example, in the Greek ancient city of Sparta, masculinity as an ideal was strictly associated with theRead MoreWilliam Shakespeare s The Elizabethan Era1548 Words   |  7 PagesAlthough the importance and presence of love in a person’s life over the ages has not changed, the role of love in one’s life has changed drastica lly in an individual’s personal life, specifically in marriage. During the Elizabethan era, it was â€Å"considered foolish to marry for love† (Ros). Fifteenth century marriage was seen as a means of gaining property, friends, and allies; therefore, marriages among wealthy landowners were more commonly arranged than those among people from lower classes. ManyRead MoreThe West Human Rights1445 Words   |  6 PagesIn the West human rights were born in the modern age as a result of the Industrial Revolution and thrived in the age of the â€Å"liberal state.† With the establishment and consolidation of modern democratic political structure since the late eighteenth century, the value of individual freedom was substantiated and power of individuals recognized. Consequently, the mentality instilled in people for centuries that the sovereignty belongs to the ruler broke off and was replaced by the new mindset that theRead MoreA Social Critique Of The Judgment Of Tast e1661 Words   |  7 Pagesby a mixture of social, economic, and cultural capital. Society includes â€Å"symbolic goods, especially those regarded as the attributes of excellence, the ideal weapon in strategies of distinction.† The comforts, luxuries, and need of goods deemed excellent shape the dominating class characteristics. 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For example, the Catholic Church faced some of its most prominent changes in early modern EuropeRead Morehistory of philosophy5031 Words   |  21 Pages  (April 2013) Philosophy Philosophers Aestheticians Epistemologists Ethicists Logicians Metaphysicians Social and political philosophers Traditions Analytic Continental Eastern Islamic Platonic Scholastic Periods Ancient Medieval Modern Contemporary Literature Aesthetics Epistemology Ethics Logic Metaphysics Political philosophy Branches Aesthetics Epistemology Ethics Logic Metaphysics Political philosophy Social philosophy Lists Index Outline Years Problems Read MoreJudith Butlers Perception of the Female in the Modern Era: Gender Identity and the Act of Becoming in Cindy Shermans History Portraits6698 Words   |  27 PagesPerception of the Female in the Modern Era: Gender Identity and the Act of Becoming in Cindy Shermans History Portraits Introduction There is some disparity between the way critics and philosophers like Judith Butler view Cindy Shermans work and the way that Cindy Sherman speaks of her photographs. It may be the disparity that exists between many modern artists, who often operate on an intuitive level, and the philosopher critics who comment upon them from a theoretical perspective or a pre-establishedRead MoreAn Analysis of Factors Contributing to the End of Domestic Isolation in America1986 Words   |  8 Pagesrequirements of society (p. 82). Ibsen, in other words, was a social revolutionary on the order of the Romantic/Enlightenment era a time whose doctrine was substantially divorced from the old world teachings that unified Europe in the medieval age and brought security to places like Ibsens Norway. Ibsen, like the rest of the modern world of the 19th century, had rejected the medieval mores associated with the old world religion and family structure; it had left the Pauline scriptures for a philosophy bas edRead MoreWilliam Shakespeare s Much Ado About Nothing And King Lear3685 Words   |  15 Pageswisecracking attitudes and fears portraying them as very radical creatures, in a world that perceived women as the feebler sex. He wrote some of the greatest and strongest female characters ever in literature (Cordner 27). Even though Shakespeare is not the ideal feminist today, he can be thought as a proto-feminist. In his plays, the women characters are lovesick brave and witty just like men. In most of his stories, the female characters are the ones keeping it together while the male characters run around

Like water for Chocolate Free Essays

These quotes show Tit’s connection to food, which grow slowly in ever y chapter of the book. TIA prepares certain dishes for special occasions and at different times of the year and the food is connected to her emotions. First, the narrator begins by telling the reader that â€Å"The trouble with crying ova ere an onion is that once the chopping gets you started and the tears begin to well up, the next thing you know you just can’t stop! † (3). We will write a custom essay sample on Like water for Chocolate or any similar topic only for you Order Now The narrator is indirectly telling the reader that food is also like Faber 2 motions. As a matter of fact â€Å"TIA made her entrance into this world, preempt rely, right there on the kitchen table amid the smells of simmering noodle soup, thyme, bay leave s, and cilantro, steamed milk, garlic, and of course, onion. † (Quiver 56). This quote shows the at TIA is connected to food even before she can cook. The fact that Tit’s onion induce d crying caused her to come to the world prematurely show us that in the novel tears are symbol of Tit’s emotional connection, once again making food a really important role in the novel. Second, Food in Like Water for Chocolate doesn’t only represent emotions it a I so represents tradition. â€Å"TIA gets her great cooking skills from Nacho, this is there e way of passing down the recipes from generation to generation. The recipes in Like Water for Chocolate are kept in the family. TIA then passes the recipes to Spenserian. Spenserian then passes them to her daughter who puts them in the book. The recipes that are passes down from generation to generation are also what tell us the story of TIA† (Tradition, Culture, Food in Lie eek Water for Chocolate 1). There was one day when Rosary did attempt to cook. When It TA tried nicely to give her some advice, Rosary became irritated and asked her to leave the kit chem.. The rice was obviously scorched, the meat dried out, the dessert burnt. But no one at the t able dared display the tiniest hint of displeasure, not after Mama Elena had pointedly remarked: â€Å"As for the first meal Rosary has cooked it isn’t bad. Don’t you agree, Pedro? † Of course, t hat afternoon the whole family felt sick to their stomachs† (50). The sickness that the family felt was that of the hate in she prepared the meal with. Third, Esquire’ specifically tells the reader that the cook has the power to do stuff by saying â€Å"The kitchen becomes a veritable reservoir of creative and magical events, in which the cook who possesses this talent becomes artist, healer, and lover. Culinary activity I involves not just the Faber 3 combination of prescribed ingredients, but something personal and creative e matting from the cook, a magical quality which transforms the food and grants its powerful pro parties that go beyond physical satisfaction to provide spiritual nourishment as well† (60). The e use of Magical realism in this novel let’s the reader understand more how in this novel the c ask possesses the talent to become an artist a healer or a lover. In conclusion, Food has a meaning of communication in this novel. F-DOD I s represented to show the emotions of TIA as well as the other characters. Food has a strong r ole in Like Water for Chocolate because food and it’s tradition is what identifies the main char Cater, TIA . Through the novel we see that TIA was born in a Kitchen and lived cooking almost all h ere life. The title of he book is also symbolic because â€Å"the phrase like water for chocolate came f room Mexico. In Mexico,hot chocolate is made with water, not milk. The water is brought to a boil and then the chocolate is spooned into it. A person in a state of sexual excitement is said to be â€Å"like water for chocolate(algebra Dictionary). † The narrator utilized food to represent Tit’s ATT ration to Pedro. Food is extremely important in this novel because without the magical realism m used with the food, it would of been harder for the reader to understand Tit’s affair with Pee door. How to cite Like water for Chocolate, Papers

Definition And Dimensions Project Quality â€Myassignmenthelp.Com

Question: Discuss About The Definition And Dimensions Project Quality? Answer: Introduction A literature review focusses discusses on a particular subject. It is an exploration evaluation of a literature on a specific concept. This literature review gives an in-depth acquaintance of major project/program management areas i.e. quality management, risk management and procurement management. The aim of this literature review is to provide fundamental knowledge of the QRP concept. It defines each concept of QRP explains how it is interrelated to each other. It further describes the significance of quality, risk procurement management in an organization and its objectives. This literature review explains roles responsibilities of a QRP manager, its strategies, planning, processes etc. Many of the project management concepts of QRP system used in this literature review are interrelated to the previous reviews. This literature review gives advance information about QRP functions and its implementation in a project or organization, using the concepts discussed in earlier revie ws like goals, business case, strategic management, time, cost, team definition its role responsibilities etc. Definition of Quality Risk Procurement (QRP) systems QRP system revolves around three facilitating areas of project management. The quality management system is an approach to improve processes, plan, document and deliver a quality product or service in a project lifecycle. It will have project goals, allocation of responsibilities, governance measures, etc. to ensure quality(Knowles, 2011) . Risk management involves planning, analysis, evaluation, tools techniques to manage risks, monitor mitigation of the risks to reduce its impact (Rouse, 2016). Procurement management encompasses planning, purchase, transportation and warehousing of the goods services using standard methodologies. QRP systems framework QRP system is designed to facilitate project strategies, objectives deliver the product or services. Quality, risk procurement functions are integrated into each phase in a project management framework. QRP functions in setting goals, defining strategies, planning, documentation, execution and monitoring to the smooth delivery of the program. Quality, risk procurement are strongly interconnected need to be planned effectively to meet its objectives. Adapting to new plans processes as per the customer need leads to the customer value (Highsmith, 2009). Effective coordination communication is a foundation for the planning forecasting. In an earlier phase, a high-level implementation plan is developed followed by quality risk planning in later stages. These plans are evaluated keeping project objectives into consideration and then the whole planning cycle is repeated to exterminate impacts. A delivery manager should ensure the constant delivery of the project or product by remov ing impediments if any (Stanley, 2012). They shall negotiate with the stakeholders, address procurement issues, facilitate high level planning, remove blockers, etc. Manager should put effort for enhanced service delivery in the agreed budget resources. QRP management concepts Quality in project management refers to the level of a service or a product which meets requirement expectation of the customer. It involves QM master plan, quality control quality assurance, conflict determination its removal, etc. Different authors explain quality in their own way but signifies a common objective. As per Paul J. Fields, quality management are set of processes that regulate quality objectives, policies and responsibilities that satisfy the need of the project (Fields, 2016). Another author Ron Basu suggests a three-dimensional model of project quality as design quality, process quality Organizational quality (Basu, 2004). The efficiency of a project is often measured as the amount of resources, time money used to give desired output or efficient product. It can be seen as how the allocated resources have been used efficiently to deliver the product or service. Productivity on the other hand can be measured as the rate of effectiveness with an organization uses its resource to be productive in planning, quality, monitoring, execution delivery. Responsiveness to the market means that how well an organization is proactive reactive to the changing market trends. It can be denoted as the capability of an organization to respond effectively, timely efficiently to the market threats, opportunities, business environment changes in order to meet customer satisfaction. Organizational resilience is another management concept which is termed as the capability of an organization to forestall respond efficiently to the changes or abrupt distractions in order to survive grow. Resilience of an organization can be well related to QRP functions and measured on effective quality risk planning, mitigation of risks if any, leadership, resource allocation etc. Objectives of Program/Project QRP system QRP system acts as an architect between the business case and the project objectives. It provides the means to achieve business case or project objectives in an integrated and optimized manner. Without a proper quality, risk procurement process it is next to impossible to meet corporate objectives. The plans, policies and strategies of an organization are shaped keeping quality management, risk management procurement management in consideration. QRP main objectives are customer satisfaction, high quality product or services smooth delivery in allocated resources. Sub goals of QRP functions are effective planning, minimize the potential deviations from the set goals, minimizing mitigating risks, efficient procurement management system. Roles responsibilities of the QRP Manager QRP manager should be competent enough to handle all professional, cultural, managerial and technical aspects of a project. One of the significant responsibility of a QRP manager is to supervise the quality and to coordinate with the team other stakeholders to ensure the deliverables. Poor coordination can lead to delays, errors or even failure of the product. Employee performance evaluation, program evaluation, performance reviews are key areas in supervision (Carter, 2016). Successful coordination can be achieved by planning, organizing, directing, controlling etc. Recruitment, coaching, staffing, skill enablement and staff training are also one of the vital responsibilities of a manager which falls under human resource management category. The manager needs to identify the staff with required skills, get them trained in the methodologies, products processes, engage them track their productivity (Heathfield, 2016). Asset management as a responsibility for a QRP manager comes und er the category of the procurement process. It is a practice of maintaining and optimizing the utilization of assets services. It also includes development of asset management information systems, continuous improvement of asset management strategies, evaluation of asset ownership, asset relocation and asset disposal policies. The financial management deals with the procurement, allocation and control of financial resources to be allocated to the project. QRP makes an effort to minimize the potential deviations from set goals of project objectives of financial, performance and environment. To meet the budgetary crisis, there is a need of improved budgeting process and advanced financial management practices (Shukla, 2017). Schedule slippage is one of the major risks, which a QRP manager need to quantify while doing risk analysis. Schedule plan is an integrated part of the project management plan which helps in evaluating the project performance. QRP manager should contribute in the listing evaluating milestones deliverable with start end dates as per the schedule. Best practices to form execute policies procedure is to identify the key policies which need to be clear, intensive consistent. Manager needs to find a reliable source of the information consultation. An organized policy structure shall be created. As stated above, QRP manager should ensure smooth coordination between the different stakeholders the teams which is possible only by effective timely communication. All the relevant information shall be shared with a QRP manager, who shall further communicate it with the designated teams members. QRP managers should ensure that the supplier meets the demand and the need of the customer within the range of the agreed funds with utmost quality. Quality management is an indispensable part of the product design and construction process. Under quality management, the manager needs to oversee the master plan, quality assurance, conflict resolution k nowledge management to meet the functional requirements. Risks are generally deviation from the designated target. The manager needs to be proactive implement contingency planning technique to control major, moderate minor risks. Active planning coordination is required to deal with endogenous or internal risks, whereas exogenous risks need much consideration mitigation planning as they are beyond control (Sule, 2016). In Procurement management, managers responsibility is to plan the procurement process, identify the goods services, conduct the procurement, administer, supplier coordination, control procurement and closure (Rowley, 2013). Contractual model in procurement management is the best exercise to reduce risks the cost as it is not possible for any organization to manufacture all its products, assets or services. Fixed price contract, time material and cost reimbursable contract are the three major categories of procurement contracts. An effective contractual model gi ves priority to cost optimization improved risk management (Smith, 2016). All the three aspects of QRP equally contribute to organization success influence its working methodologies. The plans, policies and the strategies of an organization are shaped keeping quality management, risk management procurement management in consideration. Functions within QRP Corporate objectives outline the functionality of an organization. All the strategic planning, business planning, budgeting, resource planning etc. are defined and executed keeping corporate objectives of an organization on precedence. It provides the strategic focus, performance measurement relate the business requirement. Strategy for a QRP model is generally to work on the key areas of corporate objectives like market share, product range, productivity, innovation, cost-effectiveness, customer satisfaction, physical financial resources. Financial strategy for growth efficiency, customer strategy to satisfy retain the existing customer and to acquire new customers, operational strategy to ensure quality minimize risks are some of the strategies which are part of a QRP model (Olsen, 2017). Appropriate design aids in understanding the scope of a project, reducing risks, improving quality, re-designing sub processes and developing new technologies. The quality of a service depend s upon effective communication of a supplier purchaser. Planning and controlling are two discrete functions of QRP and yet they are interlinked coexist. Controlling or monitoring actually compares the actual performance with a planned performance to evaluate any deviations act subsequently (Samiksha, 2016). Planning is a dynamic phase of a project lifecycle. In return to ensure the success of planned objectives, controlling or monitoring plays a significant role. The project objectives requirement may change over a period of time it is important to redefine the plan process in quality, risk procurement aligned with changing project objectives to maintain project value. Conclusion To summarize quality, risk procurement management is an indispensable part of a project management process. This literature review provides a broader picture of QRP functions its importance in any organization. It helps in understanding the implementation of quality, risk procurement management in different phases of a project lifecycle. This literature review completely has an edge over the earlier reviews as it provides further detail description of the key concepts of project management fundamentals. In previous literature reviews, focus was given to basic program management definitions, goals, strategic management, business case, project governance, teams definition, their roles responsibilities, scope planning, time planning and cost estimation. QRP management is a constant process to improve project deliverables meet customer needs. There are set of roles responsibilities under QRP function like identifying risk, preparing mitigation plans, providing utmost quality, procu rement management, asset management, supervision, monitoring, effective communication, schedule management etc. which lead to the successful functioning of a project. This literature review has given in-depth information about QRP functions which helps an aspiring management student to understand learn project management concepts. Explanation in this literature review gives a virtual experience of handling projects. References Basu, R. (2004). The Definition and Dimensions of Project Quality. In Managing Quality in Projects. Retrieved from https://www.gpmfirst.com/books/managing-quality-projects/definition-and-dimensions-project-quality Carter, M. (2016). Management Function of Coordinating / Controlling: Overview of Basic Methods. Retrieved from https://managementhelp.org/managementcontrol/index.htm Fields, P. (2016). Project Quality Management. Retrieved from https://projectmanager.org/images/downloads/PDC_2015_Presentations/project_quality_management_x.pdf Heathfield, S. (2016). What Is Human Resource Management. Retrieved from https://www.thebalance.com/what-is-human-resource-management-1918143 Highsmith, J. (2009). Adaptation in project management through agile. Safari Books Online. Retrieved from https://searchsoftwarequality.techtarget.com/feature/Adaptation-in-project-management-through-agile Knowles,https://www.znrfak.ni.ac.rs/SERBIAN/010-STUDIJE/OAS-3-2/PREDMETI/III%20GODINA/316-KOMUNALNI%20SISTEMI%20I%20ZIVOTNA%20SREDINA/SEMINARSKI%20RADOVI/2014/S175%20-%20S200.pdf. Retrieved from https://www.znrfak.ni.ac.rs/SERBIAN/010-STUDIJE/OAS-3-2/PREDMETI/III%20GODINA/316-KOMUNALNI%20SISTEMI%20I%20ZIVOTNA%20SREDINA/SEMINARSKI%20RADOVI/2014/S175%20-%20S200.pdf Olsen, E. (2017). Examples of Strategic Objectives. Retrieved from https://onstrategyhq.com/resources/examples-of-strategic-objectives/ Rouse, M. (2016, August). risk management. Retrieved from https://searchcompliance.techtarget.com/definition/risk-management Rowley, J. (2013). Project Procurement Management Knowledge Area. Retrieved from https://4squareviews.com/2013/08/13/5th-edition-pmbok-guide-chapter-12-project-procurement-management-knowledge-area/ Samiksha, S. (2016). 3 Major Relationships between Planning and Controlling Functions of Management. Retrieved from https://www.yourarticlelibrary.com/management/3-major-relationships-between-planning-and-controlling-functions-of-management/8734/ Shukla, G. (2017). Budgeting and Financial Management in the Public Sector. Retrieved from https://dcid.sanford.duke.edu/academics/exed/budget Smith, P. (2016, August 30). Implementing Cost Reduction Programmes Contract and Supplier Management. Retrieved from https://spendmatters.com/uk/implementing-cost-reduction-programmes-contract-supplier-management/ Stanley, M. (2012, December 12). Government Digital Service. Retrieved from https://gds.blog.gov.uk/2012/12/12/a-day-in-the-life-of-a-delivery-manager/ Sule, E. (2016, May ). Impact Of Exogenous And Endogenous Risks On Systemic Risk In Indonesian Banking. 5(5). Retrieved from https://www.ijstr.org/final-print/may2016/Impact-Of-Exogenous-And-Endogenous-Risks-On-Systemic-Risk-In-Indonesian-Banking.pdf

The Impact of the A380 Project on the Financial Performance of EADS Essay Example For Students

The Impact of the A380 Project on the Financial Performance of EADS Essay ? Acknowledgements We would like to express our gratitude to the department for affording us the time and research facilities without which this report would not have been possible. Special thanks go to the head of department Dr. Anders Hederstierna, our supervisor Dr. Britt Aronsson and the course coordinator Dr. Klaus Solberg. Abstract Airbus has been making headlines in the past few months for all the wrong reasons. This iconic European corporation has undergone a turbulent period due to the problems surrounding the Airbus A380 project. A new flagship product that should have curved out an unassailable advantage for Airbus over Boeing went completely wrong. The Airbus A380 aircraft was a ground breaking concept that was meant to push EADS into a unique market segment. Instead, it threatened the very existence of the company and served as a catalyst for major surgery and a complete reorganization of the corporation starting from the top management down to the production floors. Numerous studies have been undertaken that have documented details of the Airbus A380 project and what, how and why it all went wrong. We will write a custom essay on The Impact of the A380 Project on the Financial Performance of EADS specifically for you for only $16.38 $13.9/page Order now The company and other stakeholders have been undertaking drastic steps to try and put the company back on track and ensure the survival of the commercial aircraft business unit. In this study we look at how the problems surrounding the Airbus A380 project have affected the financial health of EADS. The background to the problems and the financial performance of Airbus is studied and presented. A brief discussion of how the data we collected and used for the study and the data that we could not get access to is also presented early in the paper. From the data and analysis, a comparison of the two dominant players in the commercial aircraft manufacturing industry, Airbus and Boeing, is also undertaken. A brief highlight of the financial impact of a project in the computer/consumer electronics industry is also presented. Finally from these data and prior studies on this subject, we have tried to highlight the impact of the project on the short and long term financial direction of EADS. Table of Contents List of Tables6 6 List of Figures7 1 Introduction8 Theoretical Framework14 3 Data Collection25 4 EADS Background and Analysis27 5 Boeing Background and Financial Data50 6 Comparative Analysis of EADS and Boeing 59 7 Other Factors that Affected the Financial Health of EADS69 8 Long-Term Prospects72 9 Comparison to a Project in a different Industry78 10 Conclusions79 81 11 Future Work82 12 Reference List83 List of Tables Table 4. 1 Business Segment Data of EADS 36 Table 4. 2 Consolidated Cash Flow Statements of EADS. 36-37 Tabl e 4. Consolidated Income Statement of EADS.. 40 Table 4. 4 Consolidated Balance Sheet of EADS 40-41 Table 5. 1: Consolidated Statements for Boeing 55-57 Table 5. 2: Income Statements for Boeing. 57-58 Table 5. 3: Consolidated Cash Flow Statements of Boeing 58-59 Table 8. 1: The Order Book for A380 Aircraft 76-77 List of Figures Figure 4. 1: EADS stock ownership. 29 Figure 4. 2: EADS management structure.. 31 Figure 4. 3: Airbus management structure 32 Figure 4. 4: EADS divisions and revenue. 34 Figure 4. 5: EADS share price (25 Nov 05 to 25 Jun 07)†¦. 49 Figure 5. 1: Boeing distribution of stock. 51 Figure 5. 2: Boeing divisions, revenue and activities.. 52 Figure 5. 4: The management structure of Boeing.. 54 Figure 6. 1: Working Capital Boeing Vs EADS 61 Figure 6. 2: Revenue Boeing Vs EADS 64 Figure 6. 3: Airplane Delivery Boeing Vs EADS. 65 1 Introduction The commercial aircraft industry requires huge capital investments in manufacturing and research and development. This is a very competitive sector where industry consolidation has resulted in the emergence of two major players from either side of the Atlantic, EADS in Europe and Boeing in the United States of America. The two form a duopoly with market leadership in the sector largely rotating between these two corporate giants depending on the market dynamics. Commercial airlines and other air transport operators form the bulk of the customers. Governments are also important customers. The government involvement in the sector extends to investing, supporting (Aboulafia, Richard, 2000; O’Neal, Michael, 1990) and regulating. Any problems in the industry have implications that go well beyond the confines of the affected companies. Governments therefore subsidize and invest in aircraft manufacturing and research and development. This also serves to protect the highly skilled jobs in this sector and ensures that the respective countries remain technologically competitive (Wall, R. Sparaco, P, 2007). Big companies play an important role in the economics of the countries they operate in. They influence the conditions in the industries and directly impact employment rate in the countries where the manufacturing takes place. EADS and Boeing are the leading competitors in the aircraft manufacturing industry and demonstrate the high level of political interest in this sector and the way governments try to influence the business decisions made by such corporations (Wall, Robert Jens, Flottau 2007; Barrie, Douglas 2007). 1. Problem Definition Airbus is a subsidiary of EADS that has been a global leader in the manufacture of commercial aircraft. The launch of the A380 aircraft project was expected to become a huge success and elevate EADS to a new level of market domination. But following production delays and the cancellation of some orders for the A380 aircraft by some customers, the company found itself in a difficult position. The failure of a challenging project such as the A380 project can have far reaching financial consequences that could lead to bankruptcy. It could also serve to expose weaknesses and inefficiencies in the structure of an organization that could be a major hindrance to the success of a company. The popular media and professional journals have been full of news and articles concerning the problems with the A380 aircraft and Airbus in particular. The list of problems include workforce discontent, possible reduction in production activities, delivery delays, customer dissatisfaction and a lack of new orders, to mention only a few. The complex set of problems extends to the influence EADS has that can cause significant economic problems in the concerned countries. Numerous studies and articles have been written about EADS and the A380 project that catalogue the various organisational, technical and financial problems associated with the manufacture of the A380 super-jumbo aircraft. A systematic evaluation of the financial consequences of the project has not been carried out. 1. 2 Purpose The purpose of this research work is to evaluate the impact of the A380 project on the financial health of EADS. The following questions will be addressed: In the short run, what effect has the A380 project had on the financial performance of EADS? In the same period, what was the financial performance of Boeing, the direct competitor of EADS? Should EADS continue supporting the A380 project with additional financing? What long term financial impact will the A380 project have on the future of EADS? Finally, in order to fulfil the purpose we will also briefly discuss other factors that influenced the financial health of EADS, in addition to the A380 project 1. 3 Research Methodology The first stage of this research will involve reviewing the information that is available about the aircraft manufacturing industry with a focus on information about EADS and Airbus. Our focus will be on financial information. As a public company, EADS is obliged to publish financial data about the corporate structure and financial information containing revenues, profits and sales orders per EADS division such as Airbus. The A380 has been a major project at EADS for the past few years that has taken substantial preparations and investments amounting to significant annual expenditures (Thomas, J. , 2001; Gummesson, E, 2006). The main thrust of our research will be quantitative for aspects where we shall obtain the financial data needed to do the analysis. We shall also employ a qualitative approach to evaluate the leadership and organizational structure at EADS. To evaluate the financial impact of the A380 project on EADS, our primary focus will be on financial and ratio analysis of the company. We will examine the financial statements from EADS. This quantitative analysis will include the period from 2004 to 2005 that preceded the initial announcements delivery delay of the A380 as well as the period following the announcements, from 2006 to the first quarter of 2007. To analyze the changes in profits, revenues and cash flows, we will perform a comparative analysis of the years from 2004 to 2006 and evaluate the first quarter of 2007 in comparison to the first quarter of 2006. We will explore what influence the Airbus A380 project has had on the financial health of EADS. In order to get a clearer picture of the financial health of EADS, we will compare the financial performances of EADS and its main competitor, Boeing. The financial statements of Boeing Company are also generally available as it is a public corporation. Boeing has a similar structure, is engaged in the same activities and is comparable in size with EADS. Boeing also operates in the aircraft manufacturing industry, with its commercial aircraft unit also being the major part of the company’s activities. Therefore, the cross-company financial analysis between EADS and Boeing will provide some useful insights into the scale of the finanicial problems. Some A380 aircraft customers have already cancelled their orders and moved to Boeing instead. Since these two companies form a duopoly, most customers that leave EADS for Boeing increase the market share for Boeing. The foreign currency exchange rates between the US dollar and the euro have had an impact on the competitiveness of EADS. The manufacturing plants of EADS are located in Europe. The basic bills are paid in Euros (salaries, taxes etc), while customers outside Europe settle their contractual obligations in US dollars. The lead time between contractual agreements and actual aircraft deliveries, coupled with fluctuating US dollar versus euro exchange rate influence the financial performance of EADS. Depending on the direction the change takes, it can add to the losses from the A380 project, especially with the lead time from the date of agreement to the date of delivery being stretched by the delays The US dollar to euro relationship is therefore an area of interest, we will therefore analyze trends in exchange rates and evaluate its impact on EADS. We will also evaluate trends in stock prices of EADS and compare them to ones of Boeing. This will allow us to see how the market value of the company was affected by the A380 crisis and delivery delays. The market values of stocks are important indicators of financial stability and are of special interest to investors. Trends in the stock price will also show the possible direction of the company. A review of the financial position of EADS, that will include cash flows, revenues in total, total revenues and profits, revenues and profits by divisions in the period starting from 2005 to 2007 (both within the company and in comparison with Boeing), together with review of stock prices and exchange rates in 2005-2007, will help paint the picture of the A380 project impact on the short run financial performance of EADS. Evaluation of trends in profits and cash flows of EADS and review of order and delivery book of Airbus, the major source of revenues and cash flows for EADS will reveal the possible future direction of the company. Upon reviewing the trends in financial position of EADS (through ratio analysis) and examining the order or delivery book of Airbus, taking into account that this type of business involves cash transfers and recognition of revenues upon fulfilment of contracts, we will be able to determine how much of a burden the A380 project is for EADS and if the company can carry on without significant financial reorganization. Finally, we will briefly examine other factors which could additionally influence financial health of EADS. The corporate structure and leadership issues have important bearing on the operations of a company and could also influence financial state of a company. Our evaluation will be based on information from the companies on the existing organizational structures and scientific articles where available. Among others, the following issues will be examined: the composition of the Boards such as the number of independent directors and how focused the Boards are on business activities and how independent they are when making decisions. This will give us some insight into the efficiency of EADS as an organization, which has an indirect influence on profitability as well. The dynamics of exchange rates influence financial health of EADS as the company is based in Europe but sells big part of its products overseas. We will use data on exchange rates obtained from business media sources for this analysis. 1. 4 Possible Limitations We will be unable to accurately estimate certain values without sufficient data. This is a complex case, with several interrelated issues. We will use the available data. The available data will be sufficient to make qualitative conclusions as is usual in case studies. For example, without knowing the values of discounts offered to some customers, the values of penalties incurred, the impact of some customers exercising the option to buy alternative aircraft from Airbus, we may be unable to make exact quantitative conclusions on losses and net cash outflows from the project. We cannot definitely determine sources and values of external (from other projects) financing for the A380 project. We would liked to look at the A380 project appraisal (preferably with more comprehensive appraisal method, like NPV), but it will not be possible to do this as we will lack exact data necessary for this type of evaluation. The A380 project is an evolving story that has new developments all the time. The data from primary data that we sourced from some company’s websites may be skewed in favour of the respective companies as there is tendency for companies to put emphasis on positive information. 2 Theoretical Framework 2. 1 Introduction According to Brealey et al, 2006, managers are agents of the owners of the company, the shareholders. The manager’s main goal is to increase the value of the shareholders’ wealth. The board of directors are part of the corporate governance system and are meant to oversee the performance of the managers and strategic direction of the company. The board ensures that the managers are adequately compensated for the day to day running of the corporation and have the mandate to replace the managers if they do not deliver shareholder value or , among other reasons do not conduct the operations ethically or legally. There are several methods to evaluate potential success of a project in a company. This is an important step. In a large company and/or if a significant investment opportunity is considered, investment appraisal methods, such as NPV (Net Present Value) are applied. To analyse the impact of the A380 project on EADS, our approach was to look at the problem from three angles: the financial angle, the organisation structure (leadership and governance) and to compare EADS to a similar organisation. The theoretical foundations that we base our analysis on are described in the following sections of this chapter. . 2 Assessment of the Financial Health 2. 2. 1 Financial Statements – Ratio Analysis Potential investors, as well as other interested parties, always analyze past/present financial performance of a company before making investment. This is necessary to evaluate possibility of future returns. Trends in profits and cash flows of past few years not only show how effective was a company in the post, but can also indicate future direction of a company. Probably the best way to evaluate possible return from investment is by analyzing data available from financial statements of a company (40). The major financial statements are: Statement of Balance Sheet, Statement of Cash Flows and Income Statement. Income Statement is intended to disclose revenues and expenses, as well as profits of a particular period. It should be noted, that profits are often different from cash flows, as items like depreciation of fixed assets are not taken into account in net cash flow calculations, but they do influence profits. Statement of Balance Sheet shows the financial position of a company at a particular point in time. Namely, it shows the values of assets (both current and non-current), liabilities (both current and non-current) and equity. Following balance of Balance Sheet components is always maintained, if the statement is correctly prepared: Assets-Liabilities=Equity Statement of Cash flows discloses the way all cash resources have been used throughout a particular period of time. Cash Flow Statement consists of three basic parts: Cash Flows from Operating Activities, Cash Flows from Investment Activities and Cash Flows from Financing Activities. Income Statement, Statement of Balance Sheet and Cash Flow Statement can be analyzed to find out how effective the performance of a company in the past was and to forecast, what can be expected in the future. It should be pointed out, that basic financial statements of listed (parent) companies are readily available to general public (through company web sites, etc), while financial statements of subsidies (â€Å"daughter† companies), like Airbus, usually are not readily available. A. Millichamp, 1997, suggests three methods for assessing financial performance. Each figure (or number) in the financial statement should be compared with: 1) The corresponding figure of previous statements 2) The corresponding forecasted (budgeted) figure 3) The corresponding figure of another company in the similar business While comparison of subsequent statements of a company is important (to see improvements/backward steps etc), it is sometimes even more important and interesting to see how well a company is performing in comparison with direct competitor (e. g. in our case Boeing vs. EADS). The first method of assessment shows trends within a company, while cross-company evaluation shows if those steps are more effective than the ones taken by a competitor. Third method of an evaluation (i. e. comparison with budgeted values), while definitely being important, usually cannot be performed by an outsider, as budgets (i. . internal data) are rarely disclosed by companies. While comparison of absolute values of financial statements is often performed, comparison through financial ratios is frequently more relevant. Many financial values are inter-related. Besides, some trends are better seen through relative analysis of values, for instance, when two companies construct their financial statements in dif ferent currencies. Boeing does this in US dollars while EADS uses the euro. According to Williams et al, 2005, (p606): â€Å"Ratio is a simple mathematical expression of the relationship, of one item to another. .u69e1382ecf5ca546a058109ffc84c791 , .u69e1382ecf5ca546a058109ffc84c791 .postImageUrl , .u69e1382ecf5ca546a058109ffc84c791 .centered-text-area { min-height: 80px; position: relative; } .u69e1382ecf5ca546a058109ffc84c791 , .u69e1382ecf5ca546a058109ffc84c791:hover , .u69e1382ecf5ca546a058109ffc84c791:visited , .u69e1382ecf5ca546a058109ffc84c791:active { border:0!important; } .u69e1382ecf5ca546a058109ffc84c791 .clearfix:after { content: ""; display: table; clear: both; } .u69e1382ecf5ca546a058109ffc84c791 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u69e1382ecf5ca546a058109ffc84c791:active , .u69e1382ecf5ca546a058109ffc84c791:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u69e1382ecf5ca546a058109ffc84c791 .centered-text-area { width: 100%; position: relative ; } .u69e1382ecf5ca546a058109ffc84c791 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u69e1382ecf5ca546a058109ffc84c791 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u69e1382ecf5ca546a058109ffc84c791 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u69e1382ecf5ca546a058109ffc84c791:hover .ctaButton { background-color: #34495E!important; } .u69e1382ecf5ca546a058109ffc84c791 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u69e1382ecf5ca546a058109ffc84c791 .u69e1382ecf5ca546a058109ffc84c791-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u69e1382ecf5ca546a058109ffc84c791:after { content: ""; display: block; clear: both; } READ: Should Racist Speech Enjoy Protection under the Fi EssayEvery percentage may be viewed ad a ratio-that is, one number expressed as a percentage of another†. 2. 2. 1. 1 Ratio Analysis Assessment of three basic types of activities can be conducted to evaluate overall financial performance of a company (35). Changes since previous period show short term improvements/steps backward, while overall trends in years can also indicate what can be expected in the future. These three activities are: Liquidity, Profitability and Gearing/Leverage. It should be noted, though, that this is not a strict classification and some ratios may â€Å"belong† to more than one perform ance appraisal subgroups. For better representation of subsequent statements, they are usually placed next to each other and percentages of each corresponding values are also given. 2. 2. 1. 2 Liquidity Measures Liquidity of a company refers to its ability to manage short term obligations. Short term obligations are those ones, which should be repaid within a year. In other words, it is an ability to repay current liabilities with available current assets. Current assets are assets readily convertible into cash. While current liability is an obligation which should be settled within a year. The basic term often used in relation to Liquidity is Working Capital. Simply, it is an excess of current assets over current liabilities. Basic ratios used to assess liquidity of a company are: 1) Current Ratio=Current Assets/Current Liabilities It is a measure of how well are current liabilities covered by current assets. To some extent, the more it is (hopefully over 1. 5), the better it is for a company, but too high Current Ratio may imply that current assets are not entirely utilized. 2) Quick Ratio=(Current Assets-Inventories)/Current Liabilities It is a similar measure to Current Ratio, but with the exclusion of inventories-the least liquid current assets. Sometimes it is a more relevant measure. Again, a value of Quick Ration in excess of 1 is usually expected, but it varies from industry to industry. 3) Working Capital Cycle is considered to be an important illustrative measure of Liquidity. It is calculated in days/months. By Working Capital Cycle we measure the period from the date purchase of raw materials to the date of cash collection from products manufactured from those materials. Working Capital Cycle equals: Period to collect cash from customers+ period to turn over inventories- period to settle trade liabilities Days to collect cash from customers= (Average Receivables/Sales Revenues) x 365 Days to turn over inventories = (Average Value of Inventories/Cost of Sales) x 365 Days to settle trade obligations = (Average Payables/Cost of Sales) x 365 If average values are not available, year end values can also be used. Generally, the shorter is the Working Capital Cycle, the better it is for a company, as it is an indicator of effective performance. 2. . 1. 3 Profitability Measures Profitability ratios can help us evaluate trends in profitability and help us find out if a company earns sufficient profits in comparison with available resources. One thing should be noted here. If a company has a very high profitability but low cash balance, it can lead to a collapse-company can run out of cash. It is called Overtrading. On the other hand, excessive cash balance wi th corresponding low profitability is an indicator of Overcapitalization-sign of inefficient use of available resources (assets do not generate sufficient profits). Trends in Profitability can be measured both in absolute terms and with the use of ratios. Following measures are used: 1) Gross Profit Percentage: Gross Profit/Sales Revenue It is an indicator of what is percentage of Gross Profit from Sales Revenue Earnings per Share: Earnings for Ordinary Shareholders/Number of Outstanding Shares is an indicator of earnings for one share. Two important measure of profitability are also used to evaluate the efficiency in use of assets and equity to generate profits. Return on Equity = Net Profits/Value of Equity Return on Assets = Operating Profit / Value of Total Assets Maintenance of high levels of profitability is the primary objective of a company. It is a sign of relatively safe continuity. But as it was stated above, high levels of profitability should not be confronted with low Liquidity. 2. 2. 1. 4 Measures of Gearing and Leverage By Gearing we mean the ability of a company to meet long term debt obligations. Debt composition of Balance Sheet is an important indicator of Gearing. Higher share of long term debt in comparison with to equity is an indicator of higher Gearing. While, generally, long term debt is considered to be the least expensive source of finance (less expensive than common stock issue), too much reliance on debts puts accompany into danger, as interest on debt should be repaid (unlike dividends) regardless of profitability level. Good indicator of Gearing is the Debt Ratio: Debt Ratio= Total Liabilities/Total Assets Another indicator of Gearing is Interest Cover: Interest Cover= Profit before Interest and Tax/Interest Expense The higher it is, the easier it is for a company to settle its long term debt interest. This ratio is also related to Liquidity of a company. All above mentioned ratios are calculated from Statements of Balance Sheet and Statements of Income. Additionally, examination of Cash Flow Statements can reveal how cash is used in a company, which items of the statement are seem to generate more/less cash than was expected and by how much has cash decreased/increased in the considered period. 2. 2. 2 Limitations of Financial Evaluations using Ratios Financial analysis through ratios is an important and useful method to evaluate financial performance of a particular company. But this type of evaluation has its limitations. One can never make convinced conclusions purely based on ratio analysis. One of the reasons can be so called â€Å"window dressing†, i. e. a case when a company intensively â€Å"improves† performance by the end of accounting period to make year end financial statements look â€Å"attractive†. This can lead to incorrect assessment of a company. Besides, measures used in financial analysis are relative measures, which indicate to relative changes and therefore do not always allow us to make absolute judgments on companies (Millichamp A, 1997; Williams R. t al, 2005). Nevertheless, comprehensive (including cross-company) evaluation of company performance through financial ratios can disclose not only past problems of a company but even allow us make forecasts on future financial health of the company. This evaluation is well supplemented by other non-ratio financial indicators, like stock price trends and (where rele vant) trends in currency exchange rates. 2. 2. 3 Stock Prices The wealth of shareholders in a company is generated from: 1) Dividends received; 2) Market values of shares Return from investment to shareholders can be generated from both received dividends and from capital gain due to increase in value of shares. Very important measures a company value is market value of all its outstanding shares. In order to increase the value of a company, management should achieve high profits so that it could distribute higher dividends and insure high values of shares (to allow higher capital gains). When market value of shares is low, the possibility of takeover from an outsider company is more likely. What is also significant, value of shares and trends of share prices are very important indicators of a company financial health for a potential investor. It is taken into account together with financial statements of a company (Millichamp A. 1997, Brealey R. et al, 2006). 2. 3 Additional Factors that can affect the Financial Health In this section we look at other factors that can have a bearing on the finances of EADS as factors like corporate structure, leadership and foreign exchange rates can have an influence on the financial stability of a company or indirect impact on projects within a company. The indirect influence of factors like corporate structure and leadership is reflected in the ability to avoid or reduce the negative impacts caused by a project while fluctuations of exchange rates can magnify losses or profits from projects when exchange rates are either favorable or unfavorable. However, the primary purpose of this thesis is to look at the impact of the A380 project. 2. 3. 1 Leadership The corporate culture, leadership and governance of a corporation influences the way the success of a company. Dubrin A. , (2007) has further catalogued the types of leadership characteristics that are needed for organisational success. These are especially relevant in organisations of the scale and complexity of EADS or Boeing that depend on the creativity and the innovation of the workforce. Dubrin also describes leadership traits needed to effectively manage international or geographically dispersed companies that are also culturally diverse are also. Other characteristics that have relevance to our subject matter relating to Airbus and EADS include teamwork, leadership development, succession and transformational leadership skills are required to lead an organisation through a crisis. This list is not exhaustive, it only seeks to provide a brief background to some of the leadership failures that could have led to the problems at Airbus, impacted on organisational efficiency and subsequently translated into financial woes for the company. 2. 3. 2 Corporate and Governance Structure Organizational structure can play a vital role in the performance of a company. The way the board of directors coordinate performance of top management and the manner it communicates with groups of shareholders is often as important as contemporary financial health of a company. The central role in organizational structure belongs to board of directors which usually consists of 8-15 members in a large corporation. The board should be independent to ensure independent and objective reporting and decision-making of the board (15). According to Walter J. Salmon: â€Å"Inside directors are often too committed to tradition and their new ideas. Outside directors, without independent sources of information are usually only capable of anaemic discussion and dissent. The result: consumers, competition, technology, and the economy may all change, but the company fails to keep up† (15, p4). According to Walter J. Salmon, a board of 8-15 members is optimum, with at least 2/3 of it being outside directors. An empowered board (15) has the ability and independence to monitor activities of management and to influence top management to revise their activities if their performance does not correspond to the strategic direction of a company determined earlier. The board should monitor the performance of the CEO and interfere if the company moves in the wrong direction to improve things before further damage occurs. The following steps are essential for Board empowerment (15): Directors receive independent and competent information on the performance of a company in the most easy-to-understand format The board consists of independent, competent members. It is an integrated board. Members of the board freely and frequently communicate with each other The board members also monitor the performance of the board itself. They set objectives for themselves and try to achieve them. 2. 3. 3 Governed Corporation vs. Managed Corporation According to John Pound, there are two types of organizational structures: a governed corporation and a managed corporation. The board of directors has a passive role in a managed corporation. Its main tasks are monitoring and selection and appointment of top management. The managers retain all leadership and decision-making rights (15). It is not considered to be the best governance model nowadays. Today many problems of large organization do not stem from power imbalances, but rather from poor decision-making. The governed corporation model proposed by John Pound is designed to remove the imbalances of the managed corporation model. It is centred on the decision making process in the company. The board of directors, top management and shareholders are more integrated and share responsibilities in decision making and formulation of the strategic direction of a company. Managerial duties are retained by CEO’s, but the board is not a passive onlooker. 2. 3. 4 The Impact of Foreign Exchange Rates Exchange rate of a currency is a rate at which one country’s currency can be traded in exchange to another country’s currency. Basically, exchange rate is determined by supply and demand of currencies at exchange markets. Following factors influence exchange rates: Government policy to influence exchange rates (limitation of maximum exchange value etc) Interest rates in the countries of those currencies The rates of inflation in those countries Trends in exchange rates (Euro to Dollar) can become a source of troubles for both importers and exporters of products, because â€Å"actual† amount received by them can fluctuate as exchange rates vary (35). There are some measures to be taken in order to avoid or reduce negative influence of exchange rates: 1) Contracts can be agreed in local currencies (Euro, in case of EADS) 2) Outsourcing of some activities can be done, i. . a company, operating in foreign country can deal with local suppliers-sell products manufactured from local supplies to local market etc. The danger, regarding exchange rates, for an importer is that enough revenues in local currency should be earned so that upon exchanging domestic currency, expected value is obtained (Brealy R. , 2006) To reduce impact of negative excha nge rates, following measures can be taken: Matching of receipts and payments should be made. This implies offsetting payments in one currency, with receipts in the same currency Company can also make forward exchange contracts. It implies fixed exchange rate for the future cash transfers to/from importer/exporter. Employing options for future contracts Employing hedging. For instance, an exporter can hedge against exchange risks by converting foreign currency into domestic one at the spot rate 3 Data Collection The financial data used for this study was obtained from the statements published EADS and The Boeing Company. They are listed companies whose stock is traded publicly. They are therefore legally bound to publish this and other information for the benefit of stakeholders. This data included: Annual reports containing: Income statements, cash flows, financial statements/position, statements of operations, segment information and statements on shareholders equity. Stock price data was also available from the company’s websites. Additional information was obtained from the Annual Reports published by the European Union Transport Commission on airplane manufacturers, EADS and Boeing. Statistical information published by the United States Department of Transport Federal Aviation Administration was also examined. The financial data was used in the ratio and other financial analysis, we employed a quantitative method for this data. Additional information about the aeronautical industry in general and EADS, Airbus, the A380 project and The Boeing Company in particular was sourced from scientific journals and articles that are listed in the references section. Our requests for detailed and specific information about the A380 project such as details about the feasibility studies, financial and cost projections (the method and data applied for investment appraisal), and the organization of the project team did not bear fruit. We did however obtain information about the expected number of airplanes to be delivered over the lifetime of the project and the number of airplanes needed to be delivered for the project to breakeven. Other data that we could not obtain was pricing information of the airplanes the financial value of the penalties incurred when planes were not delivered, the value of the discounts and the value of the options that Airbus negotiated with customers for them to buy alternative aircrafts if they did not wish to wait for the A380. Information on leadership, governance and organizational structures of EADS and Boeing was obtained from the companies-this data is available to general public. We employed a qualitative approach to analyse and compare the leadership, governance and organizational structures of these two organizations. 4 EADS Background and Analysis 4. 1 Background and Corporate Structure European Aeronautic Defence and Space Company, EADS, is one of the largest aerospace corporations in the world. It was formed in July, 2000 after a merger of French company Aerposspatiale-Matra, Spanish company Construcciones Aeronauticas (CASA) and German company Daimler-Chrysler Aerospace AG (DASA). Currently there are 800 million EADS shares outstanding. 30% of the share capital is held by French shareholders, 22. 5% by Germans, 5. 5%-by Spanish shareholders and the rest of shares are held by various minority shareholders. The diagram below shows the EADS stock ownership. Figure 4. 1: EADS stock ownership The EADS Board of Directors consists of a maximum of eleven members appointed and removed by the shareholders’ meeting. EADS has two chairpersons and Chief Executive Officers. The Board of Directors determines the manner of appointment and the responsibilities of the Chairmen and the Chief Executive Officers. As of December 2006, EADS had over 116,000 employees. The management structure with the extension to Airbus is shown below. The corporate governance of EADS reflects the complexity of the company. EADS is a multi-national company, with significant shareholding from governments or state agencies. In order to balance the requirements of the different large shareholders, the company has two Chief Executive Officers (CEO’s). One of them is nominated by Daimler-Chrysler group and the second one is chosen by SOGEADE group. There are 10 directors in the Board of Directors at EADS. Similar to nominations of CEO’s, four members of the board are nominated by German Daimler-Chrysler and four other inside directors are nominated by SOGEADE (i. e. French and Spanish) group. There are two independent directors, one of them nominated by Daimler-Chrysler and second one by SOGEADE. The directors nominated by Daimler-Chrysler elect one CEO, while the second one is elected by SOGEADE. The Board of Directors appoints two chairmen (again, chosen by two large stakeholders). In case of dispute between two CEO’s the issue is transferred to the chairmen. Figure 4. 2: EADS management structure Figure 4. 3: Airbus management structure Manufacturing, production and sub-assembly of parts for the Airbus aircraft are distributed around 16 sites in Europe, with final assembly in Toulouse in France and Hamburg in Germany. These locations are: The EADS centers of excellence are organized as follows: The UK has 2 locations specializing in wings and electrics .uf6eff859ff7c041ef95977e79146b0d7 , .uf6eff859ff7c041ef95977e79146b0d7 .postImageUrl , .uf6eff859ff7c041ef95977e79146b0d7 .centered-text-area { min-height: 80px; position: relative; } .uf6eff859ff7c041ef95977e79146b0d7 , .uf6eff859ff7c041ef95977e79146b0d7:hover , .uf6eff859ff7c041ef95977e79146b0d7:visited , .uf6eff859ff7c041ef95977e79146b0d7:active { border:0!important; } .uf6eff859ff7c041ef95977e79146b0d7 .clearfix:after { content: ""; display: table; clear: both; } .uf6eff859ff7c041ef95977e79146b0d7 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uf6eff859ff7c041ef95977e79146b0d7:active , .uf6eff859ff7c041ef95977e79146b0d7:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uf6eff859ff7c041ef95977e79146b0d7 .centered-text-area { width: 100%; position: relative ; } .uf6eff859ff7c041ef95977e79146b0d7 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uf6eff859ff7c041ef95977e79146b0d7 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uf6eff859ff7c041ef95977e79146b0d7 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uf6eff859ff7c041ef95977e79146b0d7:hover .ctaButton { background-color: #34495E!important; } .uf6eff859ff7c041ef95977e79146b0d7 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uf6eff859ff7c041ef95977e79146b0d7 .uf6eff859ff7c041ef95977e79146b0d7-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uf6eff859ff7c041ef95977e79146b0d7:after { content: ""; display: block; clear: both; } READ: Ted Bundy (1453 words) EssayGermany has 7 locations specializing in cargo and cabin customization, forward and aft fuselage, vertical tail plane and electrics France has 4 locations working on nose and center fuselage And finally Spain has 3 locations that specialize in horizontal tail plane and A380 rear fuselage sections and belly fairing The major assembly and production is carried out in French and German factories and basic production associated with civil and military aircrafts. Besides aircrafts, EADS manufactures helicopters (it is the biggest helicopter producer in the world), satellites, missiles and other products. Airbus is a subsidiary and most important part of EADS and is involved manufacturing civil aircrafts. It is a direct competitor to the American aircraft-manufacturing company, Boeing. Airbus is a private company that is wholly owned by EADS. It has been the major generator of revenues and profits as well as cash for EADS. See the chart below that shows the size of the EADS divisions in terms of activity and revenue. Figure 4. 4: EADS divisions and revenue 4. 2 Airbus Airbus SAS is a subsidiary company of the EADS group and as stated earlier the company is one of the leading manufacturers of commercial aircrafts in the world. The main competitor of Airbus is The Boeing Company. Airbus recently increased its market share after obtaining larger number of orders and propelling it to number one in aircraft manufacturing and sales share. Airbus is a pan-European company that was founded in 1970. EADS initially had an 80% stake in Airbus with the remaining 20% held by the British company BAE Systems. In April 2006 BAE Systems sold its 20% stake to EADS through a put option, making EADS the sole owner of Airbus. The company manufactures aircraft components in four European countries: France, Germany, Spain and UK. Approximately 57,000 people are employed by Airbus. The company was formed as a European competitor to American aircraft manufacturing giant, Boeing. The first aircraft was manufactured by Airbus in early seventies but aircrafts of EADS had not been popular until 1981. Only after the launch of the A320 model in 1981 the company established itself as an important player in aircraft production business. Thereafter, the number of orders for aircrafts has been increasing significantly. Airbus manufactures the A300 range of aircrafts. Its smallest aircraft can accommodate 100 passengers. Recently it started the development of the A380 aircraft touted to be the biggest civil aircraft in the world with capacity to carry up to 850 passengers. Airbus competes with Boeing in similar aircraft market segments and also has different planes intended for different groups of customers, mainly airlines. 4. 2. 1 The Airbus A380 Project The A380 project was launched in December 2000. Jurgen Thomas was a Senior Vice President in the Large Aircraft Division of Airbus and gave a lecture that gave pertinent insight into factors that are taken into consideration when this project was undertaken. The following paragraphs summarise that lecture and present a background to the A380 project from its conception. The A380 was going to be the biggest aircraft ever built. It was meant to open up a new segment by addressing the changing market needs, congestion at the hub airports being one. With the environment having gained a profile, the A380 was designed with low emissions and low noise. The project took five years of preparatory development and testing that cost over US$600 million. The development cost was projected at US$10 billion and a tax windfall of 3 billion euro in Europe alone and induced worldwide employment creation of about 200,000 jobs. It was also going to give Airbus a foothold in all commercial aircraft market segments meant to challenge and surpassing Boeing in the over 500 passenger carrier aircraft segment as well. The innovative manufacturing processes and novel materials required for the aircraft meant that there were however, going to be little or no synergies between the manufacturing of the A380 and the other Airbus families of aircraft. Other factors that promised success for the project included the growth in air traffic that was twice the industrial average, increasing revenue per passenger, ground and air congestion and the availability of new technology to improve the economics of operating large aircraft (11,15). The aircraft had 50 firm orders immediately after it was launched. The market for the A380 was projected to be 1235 aircrafts, 8% of all commercial aircraft deliveries and worth around US$77. 4 billion. Numerous tests involving potential customers around the world were carried out. The A380 is the biggest civil aircraft in the world and is produced by Airbus with a capacity to carry between 555 and 850 passengers. The development of this aircraft was probably one of the most significant and expensive project in the history of Airbus. Before the development of this plane, it had been assumed that due to growing number of long-distance flights and corresponding increase in fees paid by airlines per landing, it was reasonable to construct a double-deck, large capacity aircraft. That type of plane would have been capable of minimizing the operating costs for airlines especially on long haul flights such as between Europe and the USA. The average price for one A380 was estimated to be US$ 290 million, making it, by far, the most expensive aircraft in the world. The first orders for the plane were received in late 2001 from Emirates Airlines for seven aircrafts. Further orders followed soon and the company seemed to be very successful in attracting new customers. In 2006, the first test flight took place. 4. 2. The A380 Project Crisis In order to become successful, the company needed to fulfil its delivery and manufacturing obligations to customers. That did not happen. In June 2005, Airbus announced that due to technical problems, mainly problems attributed to internal wiring in aircrafts, there were going to be delays in the delivery of the A380 to customers. Initially, the delays were scheduled to last six months. But on 13 June 2006, Airbus announced anoth er delay of further six to seven months. This caused major shifts in the delivery schedule. The company was not going to supply the promised quantity of aircrafts on time in the following years. As a result of delays the chief executive officers (CEO’s) of both EADS and Airbus resigned. The EADS share price fell by 26%. The effect the announcement of delays to the delivery of the A380 had on the stock is illustrated in figure 5. 2. Existing customers began to express their discontent and some of them cancelled the contracts with Airbus and chose to place new orders with the rival, Boeing instead. Airbus set up a research group to analyse the problems and find a way out of the crisis. Upon completing its internal review, the Airbus crisis research group decided that further delays in manufacture were unavoidable and on 3 October 2006 the new delayed schedule for delivery was announced. This meant further delays to airlines. For instance, the first A380 aircraft to Singapore Airlines is now expected to be delivered in October 2007. In November 2006 and in March 2007 FEDEX and UPS opted to abandon Airbus and chose 747 and 777 aircrafts from Boeing. The 747 and 777 planes do not have similar specifications to the A380. EADS is currently trying hard to retain the existing customers and orders. It has also tried to maintain its market share by allowing substantial discounts to existing and new customers. Heavy losses and significant cash flow shortages are affecting EADS now. 4. 3 Financial Analysis EADS The following tables contain EADS’ financial data that is used in subsequent ratio analysis and in the chapter comparing EADS to Boeing. Table 4. 1 Business Segment Data of EADS EADS Consolidated Cash Flow Statements(In Million Euros, for Years Ended by 31 December) 2006 2005 Profit for the Period Attributable to Equity Holders of the Parent (Net Income) 99 1,676 Profit Attributable to Minority Interests 16 4 Adjustments to Reconcile Profit for the Period (Net Income) to Cash Provided by Operating Activities Depreciation and Amortization 1,691 1,653 Valuation Adjustments and CTA Release 426 261 Deferred Tax (Income)/ Expense -193 386 Change in Tax Assets, Tax Liabilities and Provisions for Actual Income Tax -160 63 Results of Disposal of Non-Current Assets -336 -170 Results of Companies Accounting for by Equity Method -152 -210 Change in Current and Non-Current Provisions 2,150 175 Change in Other Operating Assets and Liabilities -143 1,239 Cash Provided by Operating Activities 3,398 5,107 Purchase of Intangible Assets 2,708 -2,818 Proceeds from Disposal of Intangible Assets 76 101 Acquisition of Subsidiaries and Joint Ventures -82 -131 Proceeds of Disposals of Subsidiaries 86 89 Payments for Investments in Associates and Other Investments and Long Term Financial Assets -421 -659 Proceeds from Disposals of Associates and Other Investments in Long Term Financial Assets 813 485 Dividends Paid by Companies Valued at Equity 46 36 Increase in equipment of Leased Assets -147 -40 Proceeds from Disposal of Leased Assets 215 256 Increase In finance Lease Receivables -16 -219 Decrease in Finance Lease Receivables 79 85 Disposal of Non-Current Assets/Disposal Groups Classified as Held for Sale and Liabilities Directly Associated with Non-Current Assets Classified as Held for Sale 690 0 Change of Securities 3,357 1,008 Change in Cash from Changes in Consolidation 0 12 Cash Provided by Investing Activities 1,988 -1,795 Change in Long-Term and Short-Term Financial Liabilities 784 -344 Cash Distribution to EADS Shareholders -520 -396 Dividends Paid to Minorities -16 0 Payments Related to Ability for Puttable Instruments -2,879 -93 Capital Increase 94 187 Purchase of Treasury Shares -35 -288 Cash Used for Financing Activities 2,572 -934 Effect of Foreign Exchange Rate Changes and Other Valuation Adjustments on Cash and Cash Equivalents -57 17 Net Increase in Cash and Cash Equivalents 2,757 2,395 Cash and Cash Equivalents at the Beginning of Period 5,386 2,991 Cash and Cash equivalents at the End of Periods 8,143 5,386 Table 4. 2 Consolidated Cash Flow Statements of EADS 2006 % 2005 % 2004 % Dev(05-06) Eu ro % Revenues 39,434 100 34,206 100 31761 100 5,288 15 Cost of Sales -34,722 -88 -27,530 -80 -25522 -80 -7,192 26 Gross Margin 4,712 12 6,676 20 6239 20 -1,964 -29 Selling, Administrative and Other Expenses -2,462 6 -2,336 -7 -2296 -7 -126 5 Research and Development Expenses -2,458 -6 -2,075 -6 -2126 -7 -383 18 Other Income 297 1 222 0 314 1 75 34 Share from Profit from Associates under Equity Method 189 0 225 1 84 0 -36 -16 and Other Income from Investments Profit Before Finance Costs and Income Taxes 278 1 2,712 8 2215 7 -2,434 -90 Finance Costs -244 -1 -177 -1 -330 -1 -67 38 Income Taxes 81 0 -825 -2 -664 -2 906 -110 Profit for the Period 115 0 1,710 5 1221 4 -1,595 -93 Attributable to: Equity Holders of Parent (Net Income) 99 0 1,676 5 1203 4 -1,577 -94 Minority Interests 16 0 34 0 18 0 -18 -53 Earnings Per Share Basic 0. 12 2. 11 1. 5 -1. 99 Diluted 0. 12 2. 09 1. 5 -1. 97 Table 4. 3 Consolidated Income Statement of EADS 2006 % 2005 % 2004 % Non-Current Assets Intangible Assets 10,855 15 11,052 16 10549 15 Property, Plant and Equipment 14,315 20 13,951 19 12956 19 Investments in Associates under the Equity Method 2,095 3 1,908 3 1738 3 Other Investments and Long-Term Financial Assets 1,666 2 1,938 3 2110 3 Non-Current Other Assets 4,231 6 3,610 5 2548 4 Deferred Tax Assets 2,624 4 2,980 4 466 1 Non-Current Securities 1,294 2 1,011 1 7096 10 37,080 52 36,450 51 37463 55 Current Assets Inventories 16,892 23 15,425 22 12334 18 Trade Receivables 4,852 7 4,802 7 4406 6 Other Current Assets 4,545 6 3,675 5 5242 8 Current Securities 549 1 4,189 6 0 0 Cash and Cash Equivalents 8,143 11 5,386 8 8718 13 34,981 48 33,477 48 30700 45 Non-current Assets/Disposal Groups Held For Sale 76 0 881 1 0 0 Total Assets 72,137 100 70,808 100 68163 100 Total Equity Equity Attributable to Equity Holders of the Parent Capital Stock 816 1 818 1 810 1 Reserves 7,593 11 8,699 12 7899 12 Accumulated Other Comprehensive Income 4,955 7 3,982 6 7678 11 Treasury Shares -349 0 -445 0 -177 24 13015 19 13054 19 16210 Minority Interests 137 0 153 0 144 0 13,152 19 13,207 19 16354 24 Non-Current Liabilities Non-Current Provisions 9,063 13 7,997 11 6074 9 Long-Term Financial Liabilities 3,561 5 4,189 6 4405 6 Deferred Tax Liabilities 2,465 3 2,376 3 4134 6 Other Non-Current Liabilities 12,680 17 11,295 16 10267 15 27,769 38 25,857 36 24880 36 Current Liabilities Current Provisions 3,631 5 2,727 4 2350 3 Short-Term Financial Liabilities 2,196 3 908 1 818 1 Liability for Puttable Instruments 0 0 3,500 5 3500 5 Trade Liabilities 7,461 10 6,634 10 5860 9 Current Tax Liabilities 218 0 174 0 178 0 Other Current Liabilities 7,646 25 17,739 25 14223 22 31,152 43 31,682 45 26929 40 Liabilities Directly Associated With Non-Current Assets for Sale 64 0 62 0 62 0 Total Equities and Liabilities 72,137 100 70,808 100 68163 100 Table 4. 4 Consolidated Balance Sheet of EADS 4. 3. 1 Ratio Analysis of EADS from 2004 to 2006 4. 3. 1. 1 Liquidity For the years 2004, 2005 and 2006 Liquidity condition was quite good and become even better in 2006. As the first news on delivery delay appeared in June 2005, it can be expected to see more trends in 2006 and 2007-impact of financial performance usually takes time to become evident. Working capital in 2006 was 34,981 31,152 = 3829 That is more than in 2005: 33477 – 31682 = 1795, more by 113% Between 2004-2005 working capital decreased by 1,976 million euros, 53% decline. Therefore, following decline in 2005, Working Capital recovered in 2006. As for most liquid current assets like cash and cash equivalents with currents securities (accounting treatment of both has been changing over years but sum of them can be compared) 9% increase in 2005 was followed by decrease in 2006. Both Liquid and Quick Ratios are slightly improved in 2006: 2004 2005 2006 Liquid Ratio 1. 14 1. 05 1. 12 Quick Ratio 0. 68 0. 56 0. 58 Although, generally, quick ratio is expected to be above 1, due to high value of EADS inventories and the peculiarity of the industry this level seems to be acceptable. But overall working capital balance is only increased by 4%, because significant cash increase is balanced by substantial reduction in current securities. Let’s have a look at inventory turnover: Increase occurred in 2006 after significant decline in 2005. 2004 2005 2006 2. 06 1. 78 2. 05 To complete the picture, it is reasonable to calculate working capital cycles in days (365 days per year): Days to collect Receivables Days to pay Payables Days to Sell Inventories Working Capital Cycle 2004 47 (84) 176 139 2005 51 (88) 205 168 2006 45 (78) 178 145 Again, some improvements are seen in 2006 after working capital cycle became longer in 2005. At first, days to sell inventories figures seem to be quite high but it is generally due to the nature of the industry. Cash flows provided by operating activities reduced by 1,709 million Euros in 2006, although are still much higher than net profit. 4. 3. 1. 2 Profitability The increase in total revenues in 2005 was 8%, it continued to increase up to 15% in 2006. It is a significant increase. But although percentage increase in cost of sales was 8% in 2005 (in comparison to 2004), it rose to 26% in 2006, leading to 29% decline of Gross margin in 2006. Net profit over 3 year period has been changing quite significantly, it was 5% of revenues in 2005, 4% of revenues in 2004 and almost equal to zero in 2006. The contributions from Airbus revenues in EADS total revenues have been stable equal to 63% in each research years (2004-2006). Contributions from Airbus in Earnings before Interest and Tax figure of EADS have been substantial. It was equal to 78% in 2004, 80% in 2005. It was 1919 millions in 2004, 2307 in 2005 and -572 in 2006, which is a radical drop of earnings in 2006. Therefore it is clear that substantial drop in Airbus is solely responsible in EADS being almost non-profitable in 2006 (just 399 millions in 2006, while it was 2852 in 2005 and 2432 in 2004). Therefore it can be concluded that difficulties in Airbus (exclusively) led to profitability crisis of EADS in 2006. In the following paragraphs we analyze how effectively the company used its resources and perform a ratio analysis of profitability. Earning per share figures were 1. 5 euro in 2004, 2. 11 euro in 2005 and just 0. 12 euros in 2006. These changes can be exclusively attributed to trends in earnings over years as actual number of outstanding stock has not changed significantly (in percentage terms). The number of outstanding shares was 797,000,000-802,000,000. Return on Assets (ROA): 2004 2005 2006 3% 3% 0% ROA=Operating Income/Average total Assets Return on Equity (ROE): 2004 2005 2006 7% 13% 0% ROE=Net Income/Average Total Equity As both operating and net income in 2006 was very low it is not surprising that ROA and ROE were equal to zero. Both equity and assets were employed very poorly and in particular, because of poor performance at Airbus. In 2004-2205 ROA remained constant as both operating income and Total assets changed slightly and to the same direction (both increased slightly). ROE was higher in 2005 than in 2004 because total equity reduced in 2004, while net income increased. 4. 3. 1. 3 Gearing/Leverage For a complete picture it is necessary to evaluate Gearing in each year. Non current liabilities increased just by 1% in 2005, but rose by 7% in 2006. Debt Ratio = Total Liabilities / Total Assets 2004 2005

Japan country analysis- overview of Japan. geography, government, etc.

Japan country analysis- overview of Japan. geography, government, etc. I. ContextA. GeographyJapan consists of many mountainous islands with active and inactive volcanoes. About 75 percent of Japan's area is mountainous, and scattered plains cover the other 25 percent. Tokyo is set on the Kanto plain, which is only 13,000 square kilometer. The total land area of Japan is 374,744 square kilometers. Japan has four main islands. The islands include Hokkaido, Honshu, Shikoku, and Kyushu. All of these islands are prone to earthquakes. The highest point of Japan is Mount Fuji, which is 3,776 meters. The nearest point to Asia is Korea. The distance between Japan and the Korean Peninsula is about 200 kilometers. Japan has always been liked to Asia through trade routes. There are also numerous steep, rapid flowing rivers, which provide water for irrigation and power. However most of these rivers aren't navigable. Extensive coastal shipping compensates for the lack of navigable rivers. The pacific coastline south of Tokyo consists of generally long narrow rivers, which has created many natural harbors.English: The in TokyoHowever the north pacific coastline and the Sea of Japan weren't intended for harbors. Much land has been reclaimed from shorelines and building artificial islands to develop ports. A port was even built for the new Kansai International Airport in Osaka Bay. Hills and even mountains have been raised to provide flat areas for housing.The climate is generally rainy and humid. Since Japan runs from the north to south the weather is diverse. Climate also varies with altitude and with location on the Pacific Ocean or on the Sea of Japan. There are long cold winters in the north with snow and in the south there are long hot humid summers. The range can be compared to that of the east coast of North America. Five or six typhoons hit Japan every year...

Discuss a dilemma from a legal and professional viewpoint Essay

Discuss a dilemma from a legal and professional viewpoint - Essay Example Assessing Capacity f. Key Points about Mental Capacity Act (2005) g. UK Statutes of Law 3. Professional Implications of the Case a. Mental Capacity in Medical Profession b. Consent to Treatment c. Principles of Medical Laws d. Medical Principles 4. Conclusion Mental Capacity and Consent Scenario in Clinical Practice Alexander James is a 19 years old deaf teenager admitted in a mental institution for paranoid personality. Alexander was born deaf and abused by his siblings and friends because of his disability. He grew up believing that everyone is trying to plot a mischief against him. James’ parents admitted him in the mental institution because his paranoid disorder affected his academics, social life and relationships with other people. While at the mental institution, Alexander’s mental disorder intensified when he saw doctors communicating and laughing. He thought that they were laughing at his disability and were plotting to harmful activities against him with thei r medical practice. James became violent towards the mental health providers and other patients. He was sedated and kept in isolation while his mental health treatment began. During his treatment, James was diagnosed with early symptoms of leukemia. Doctors summoned his parents and informed him that immediate treatment would eliminate the cancer. However, James refused this treatment because he believed that God intentionally planned for his deafness and leukemia, which means that he wanted the cancer to take its own course. The doctors respected James wishes in the presence of an attorney and he received hospice care for the remaining months. In 1994 in England, a similar case of mental capacity and consent occurred when a 68 years old man refused treatment. The case is referred to as Re C (Adult: Refusal of Treatment) [1994] 1 WLR 290, where Mr. C was confined in a mental hospital because of a prolonged paranoid schizophrenia (Tan 4). He further explains that Mr. C had a gangrenou s foot that threatened his wellbeing if untreated by amputation. However, Mr. C refused treatment and filed a case to deter doctors from amputating his foot in future. Justice Thorpe ruled in his favor because his delusions and mental illness did not affect his capacity to listen, understand and make solid judgments about his desires (Tan 4). Legal Implications of the Case In the case of James and the medical professionals in the mental institution, his wishes and beliefs were granted after a thorough consultation. Below is a discussion and analysis of the impact of James’ case on UK’s legal system. Capacity in Law Capacity is legally defined as individuals’ ability and freedom to make their own decisions or take necessary actions that will affect their own lives (Law 2). She further explains that the Law Commission of UK implemented a Mental Capacity Act that empowered and encouraged people to make their own decisions about important issues in their lives. Pati ents in the UK that refuse emergency treatment must be legally competent by exhibiting a high capacity. The wishes of these patients are respected after proving to the court that they have mental stability to reason clearly and deliberate (Buchanan 2). They should hold appropriate objectives and values concerning their refusal of treatment. The law requires patients that refuse emergency medical care to appreciate and acknowledge their current circumstances. Patients are required to understand the information presented by their doctors and finally communicate their desired choice,