Pestle Analysis Of The Car Industry

Pestle Analysis Of The Car Industry This report is a PESTLE analysis of the Car Industry. We have looked at Political, Environmental, Social, Technological, Legal and Environmental issues that affect the car industry based on innovations that have and are taking place. It is political factors which are creating market pulls on innovation in the automobile industry and having the greatest affect on the innovations which are produced. This is because the governments of many countries are concerned about global warming and lowering their emissions. And one way to lower its affects is for the automobile industry to create innovations which have less of an impact on the environment. The main ways through which governments are intervening are, Partnership for a New Generation of Vehicles, FreedomCAR, emission standards and the Kyoto Protocol. Â  The number of accidents and alcohol related accidents, which are social factors, are starting to increase. This has caused the automotive to innovate to help reverse this increase and lower the number of accidents on the road. 2. INTRODUCTION The aim of this report is to have an insight of the automobile industry, how it has been affected by innovation and what actions the car companies have taken in terms of innovation. We will analyse the external factors of the industry through a PESTLE analysis. The word PESTLE is an abbreviation of Political, Economic, Social, Technological, Legal and Environmental. A PESTLE analysis is an audit of an organisations environmental influences (CIPD, 2009) that are having an effect on the organisation/industry. The analysis can lead to seeing possible opportunities that lie within the industry and where the major influences on the industry come from. An innovation is the generation of a new idea and its implementation into a product, process or service (Urabe et al, 1986, p.3). An innovation can fall under one of the following categories: Product Changes in the things (products/services) which an organisation offers. Process Changes in the ways they are created and delivered. Position Changes in the context the product/services are introduced Paradigm Changes in the underlying mental models which frame what the organisation does. (Tidd, Bessant and Pavitt, 2005, p.10) We will refer to this classification of different types of innovations throughout this report. The Henderson and Clark model of innovation will also be used, and according to it there are 4 types of innovation: Incremental innovation is the enhancement of existing products or services. (Gaynor, 2002, p. 25) Modular innovation is when new knowledge is required on a product as one part of a product is significantly improved but the overall the architecture of the product remains the same. (Innovation Zen, 2006) Architectural innovation reconfigures a system of components that constitute a product, process or service (Gaynor, 2002, p.26). Radical innovation is the introduction of new products or services that develop into major new businesses or spawn new industries, or that cause significant change in a whole industry (Gaynor, 2002, p.27). 3. THE PARTNERSHIP FOR A NEW GENERATION OF VEHICLES The Partnership for a New Generation of Vehicles (PNGV) was a program that started in 1993 by U.S president Bill Clinton and vice president Al Gore (PNGV, 2009). The partnership was between many government agencies including the United States Council for Automotive Research. (USCAR) This consisted of the big three American automotive manufacturers (Ford, General Motors and Chrysler), over 300 suppliers of automotive parts, small businesses, Universities and federal Labs (see appendix 1) (Turner et al, 2000). In this partnership the U.S government would match the amount of capital the big 3 manufacturers invested into the research of technologies that would help achieve the partnerships objectives and the big 3 manufacturers, small businesses, universities and laboratories would carry out the research (Jewett, 1997). When this program first started, it had 3 objectives: To increase the competitiveness of the U.S automotive industry. Create a mid -sized vehicle that has the fuel efficiency of 80 miles to the gallon whilst keeping the performance and cost similar to those of vehicles that were available in 1993. This vehicle would need to apply to the emissions standards of 2004. Employ the innovations that were created in the program to conventional vehicles once the innovations became commercially viable. (Fosgard, 1995) The government created this partnership for two main reasons: The first is that they wanted to lower Americas need on foreign oil (an economic factor) through the fact that more efficient vehicles would use less oil and this would increase Americas national security (a social factor) (PNGV, 2009) because the country would be less reliant on other nations for fuel. Secondly, the U.S government wanted to lower the amount of harmful greenhouse emissions that the United States emitted as a whole and lowering the level of emissions that the cars in the U.S was one way to fulfil this reason (PNGV, 2009). This was an environmental factor causing the creation of PNGV. There was a requirement of the vehicles that were to be created in 2004, which was that they should be able to travel a certain distance on a full tank of fuel. Also there were short deadlines within the program an example was that by 1997 production prototypes of the vehicles that were most likely to meet the objectives were to be created. These two factors meant that architectural innovations over the regular internal combustion engine like a fuel cell or pure electric vehicle couldnt be pursued because they could not meet the range requirement and required much longer to research than the deadline allowed (Sperling, 1996). These are architectural innovations as they reconfigure the power source of the vehicle and no longer use an internal combustion engine. Such innovations would have been better at meeting objectives as they required little or no oil and emitted far less greenhouse gases. The only option available to the automobile manufacturers was a hybrid electric vehicle. A product and modular innovation over internal combustion engines as they use a regular internal combustion engine in partnership with one or more electric motors (Toyota, 2009). The hybrid electric vehicle was originally created in 1899 by Dr. Ferdinand Porsche (Truett, 2006), which makes the hybrid the big three manufacturers created was an incremental innovation on Porsches hybrid vehicle as their version was an enhancement of an existing technology. In the end no vehicles were produced which could meet all the requirements (Washington Times, 2009) so it could be seen as a failure. However many incremental innovations were created because of this partnership. Examples are, all of todays hybrid vehicles use some battery technology that was created in PNGV (Business Week, 2006), and DaimlerChrysler made large strides in technology which makes vehicles lighter, up to 46% lighter than conventional vehicles which they use in their latest models (Vasilash, 2000). Overall PNGV was a political factor affecting innovation because it was initiated by the government. This caused market pull on innovation in the automotive sector as the innovation was being carried out to meet a specific need. A marketing pull is when a stimulus of innovation comes from the needs of the society or from a particular sector of the market (Open University, ND).This political factor was caused by environmental, social and economical elements. Even though the government wanted to free themselves from the need on foreign oil the conflicting objectives of the partnership did not allow pursuit of architectural innovations which would have allowed this but many useful incremental innovations did come out of the partnership. 4. FREEDOM CAR PROGRAM Due to the failure of PNGV the U.S government created the FreedomCAR program (FreedomCAR, 2002). This program is a partnership between the U.S government, USCAR and five major energy companies (Green Car Congress, 2008). The program is based on the following principles: Freedom from dependence on imported oil. Freedom from pollutant emissions Freedom for Americans to choose the kind of vehicle they want to drive, to drive where they want and when they want. Freedom to obtain fuel affordably and conveniently. (U.S Department of Energy, 2009) The program is based on similar economic, social and environmental issues as PNGV however the latter 2 principles are further social factors that caused the creation of FreedomCAR. The long term focus of the program is to see whether hydrogen fuel cell vehicles can become the norm in the U.S by 2015 (Green Car Congress, 2005), this is because as previously explained the vehicles are an architectural innovation that do not require oil and produces no harmful emissions. The short term focus is to make internal combustion vehicles and electric hybrid vehicles as efficient and environmentally friendly as possible (Green Car Congress, 2005). In terms of innovation in the automotive industry, the partnership is exploring research in a wide range of areas from creating lithium ion batteries for use in vehicles to making carbon fibre much cheaper to produce (Business Week, 2006). These are incremental innovations as they are improvement on existing technology and so it may seem that they are not pursuing the long term focus of the partnership but these incremental innovations are required to make the architectural innovation possible (Business week, 2006). Just like PNGV, FreedomCAR is a political element that is having an effect on innovation in the automotive industry as it was created by the government because of several economic, social and environmental issues. The difference between the two programs is that FreedomCAR lacks restrictive deadlines and its main focus is architectural innovation which will hopefully meet the principles set. 5. CAR EMMISSIONS Car emissions have become an increasingly important issue for car owners and reducing individuals carbon footprints. Buying smaller cars have been encouraged to car owners by the media and many politicians. (Quirk, 2008) The European Union is trying to reduce the CO2 emissions from cars and also improve their fuel efficiency which led to the creation of the ACEA agreement. The agreement is between the European Automobile Manufacturers Association (ACEA), the Japan Automobile Manufacturers Association (JAMA), and the Korea Automobile Manufacturers Association (KAMA). The table below shows how these targets can change into fuel efficiency standards for petrol and diesel cars according to the ACEA agreement. Relationships between CO2 targets and fuel consumption Year Target Petrol (Litres of fuel consumed per 100 km) Diesel (Litres of fuel consumed per 100 km) 2012 120 gCO2/km 5.1 4.6 2008 140 gCO2/km 5.9 5.4 A failure for the car industry to meet the 2008/9 targets could lead to mandatory regulation in the future (Rajagopalan Saini 2007). For example BMW has built the Mini Cooper Diesel which meets the targets set above as they are below the criteria, making it an efficient car of its time. 64mpg is the cars combined fuel consumption and 104g/km of carbon dioxide is emitted. The 5-series saloon is also achieving these quality emissions where the 2.0 litre diesel version emits just 136g/km about the same as a hatchback. (Quirk, 2008) The Society of Motor Manufacturers and Trades chief executive said that average emissions have fallen every year during the last decade. Through technological innovation and consumer education, manufacturers have made genuine progress towards meeting tough environmental targets, (Young, 2009) Several manufacturers including Saab think the solution to reducing vehicle emissions is through the use of Flex-fuel cars or bio powered cars. These types of vehicles can run on emissions free E85 ethanol or petrol or a combination of the two (Quirk, 2008) Flexible fuel vehicles have been in production since the 1980s and have been made available to many customers who might not even know they have this type of engine in their car. (U.S Department of Energy, 2009). Flexible fuel vehicles do not experience any loss of performance when using E85 ethanol. However, since a gallon of ethanol contains less energy than a gallon of gasoline, flexible fuel vehicles typically get about 20-30% fewer miles per gallon when fuelled with E85. U.S Department of Energy (2009). Flexible fuel vehicles are an incremental innovation on regular internal combustion engine vehicles as most of the technology is the same. The only difference is that they can run on a different type of fuel. Flexible fuel vehicles produce no harmful emissions so they will help meet emissions targets but first consumers need to switch to using e85 ethanol and this will only happen if the price of e85 is not high as it has lower fuel efficiency than petrol. E85 ethanol is still some way off from being readily made available to the public because there is a lack in the number of refineries to create the fuel and pumping stations to provide it. (Quirk, 2008). Flexible fuel cars are in the fluid phase of the Abernathy and Utterback model (see Appendix 3 for full definition) as a core component (the e85 ethanol fuel) is not widely available. This lack of availability of the fuel is also slowing the innovation of flexible fuel vehicles as the fuel is not there to run flexible fuel vehicles so the vehicle manufacturers are not going to put their full effort into improving the technology. 6. CONVENIENCE AND SAFETY CAR INNOVATIONS There have been many road accidents and the main contributors to these are alcohol and careless driving. To discourage drink-driving there have been many campaigns to reduce the number of casualties from road accidents. (National Statistics, 2009). In recent years there has been an increase in accidents involving alcohol compared to a sharp fall in the mid-1980s and mid-1990s. In 1986, 560 people were killed compared to 1000 people in 2000. (See Appendix 2 for full statistics) (National Statistics, 2009). Also according to Volvo, driver sleepiness is responsible for more road deaths than alcohol. In Germany, it is thought to account for a quarter of all fatal accidents and in the US about 1,500 deaths a year. (Automotive Engineer, 2006).This has therefore meant that car manufacturers have created innovations to help prevent these from happening again such as: Volvo has created the collision warning system to help prevent accidents from occurring. This system uses a wide angle sensor to scan around the car for any objects that may be near much like radar technology. A signal alerts the driver to react, if for example the car is approaching a pedestrian which will give the driver enough time to divert the vehicle away from the pedestrian (Quirk, 2008). To help lower alcohol related accidents Saab has created the Alco-Key. Saab has begun fitting this device as standard in their cars; it is a fully integrated system that requests the driver to blow into a wireless hand-held unit before driving the car. Their breath is then analysed and if the blood-alcohol limit is exceeded, a red LED will appear and the engine will not start (Quirk, 2008). Volvo has introduced the Sleep Detection system which includes Lane Departure Warning (LDW) and Driver Alert Control (DAC). LDW uses cameras located between the windscreen and the rear view mirror and monitors the cars position between the road markings. Only after a certain speed is reached does the system become active, if the car then wanders across any lane markings without using an indicator, the driver is audibly alerted (Quirk, 2008). These creations are product innovations as they are new innovations that car manufacturers have created and offer with their vehicles. The fact they have been produced as a response to help prevent alcohol related accidents, which is a social factor, makes them a response to a market pull. The fact that the Alco-key is the first system that prevents drinking driving could lead to Saab gaining the first mover advantage, if such technology was to become mandatory. This advantage would be kept through the fact Saab has a patent on the technology (Free Patents Online, 2009) and a patent prevents other companies from using the technology without Saabs permission. 7. THE KYOTO PROTOCOL The Kyoto Protocol was an international agreement originally created in 1997 but in 2005 it was made legally binding, and is linked to the United Nations Framework of Climate Control. The agreement set targets for industrialised countries to cut their emission of harmful greenhouse gases (carbon dioxide, methane, plus several others) which are partially the cause of the increase of global warming. The countries that signed the Kyoto Protocol agreed to set their own targets e.g. Japan agreed to meet a 5% cut in emissions by 2008-2012 and most EU countries agreed to an 8% cut (BBC, 2005). Carbon dioxide is created by internal combustion engine vehicles and given off from their exhaust; therefore its a cause of global warming. To meet the targets agreed, governments and automobile manufacturers need to work together. In 2007, the Japanese government agreed to spend 200 billion yen on the improvement of hybrid vehicles to lower their emissions (Reuters, 2007) as HEVs emit less harmful gases than a petrol engine (What Green Car, 2009). Also in Japan, Toyota has achieved its target of reducing carbon dioxide emissions, from 2.12 million to 1.78 million tons. It did this through decreasing their energy usage by 40% and replacing multiple production lines with single lines capable of producing different vehicles (I. Rowley, 2005). The change in their use of production lines which increased efficiency is a process innovation as it is a change in the way the vehicles were created. Both of the above examples are market pulls on innovation for the fact the change is a response to a market/government requirement. The Kyoto Protocol is a political factor based on an environmental factor (global warming), having an effect on innovation as the governments in many countries are trying to adhere to it and to adhere to it requires the government to intervene change the vehicles that the automobile industry produces and the way they are produced. 8. CONCLUSION It is clear that out of the PESTLE factors, the main one which is having the greatest effect on innovation in the automobile industry is political. Many governments are concerned about global warming and it is the automotive industry which is adding to worsening of the effects of global warming through the emissions of their vehicles and their manufacturing plants. This has led to governments to intervene in the automotive industry to make vehicle manufacturers improve their own vehicles and facilities, through innovations which have mostly been incremental. However FreedomCAR looks promising for the environment as it is hoping to create an architectural innovation, the hydrogen fuel cell vehicles that have little impact on the environment, and help meet the governments reason for creating these market pulls on innovation. It also lacks the restrictive deadlines and conflicting objectives that PNGV had which will help increase the programs chance of success. So it may be political fa ctors that are having a direct affect on innovation but these political influences are mainly based environmental factors. Social aspects are also having an affect on innovation through the improvement of safety of the vehicles that are produced. The increase in the number of accidents and alcohol related accidents has led to a market pull on innovation for vehicle manufacturers, as they have created these improvements in safety due to this increase. As it is the political factors that are directly influencing the innovations that manufacturers create, means they are not doing it in response to the environmental factors themselves. This means the automotive industry are not wanting to help lower their affect on the environment even though it is them adding to global warming. 9. RECOMMENDATIONS This report shows that the vehicle manufacturers have only begun being environmentally concerned because of political factors their having on the industry. We would recommend that the manufacturers start thinking in a more environmentally friendly manner e.g. by investing in new machinery and production facilities similar to those of Toyota which emit lower carbon emissions. Another recommendation is the manufacturers start to create more flexible fuel vehicles and promote their availability which will increase the likeliness that consumers will switch to them. But also for consumers to switch will require that more refineries which can produce the e85 ethanol needed for the vehicles to be created. Also the price of the fuel will need to regulate as to prevent it from being too high as consumers may decide not to use e85 for the fact it has a lower fuel efficiency than petrol. 10. APPENDIX Appendix 1 Diagram showing the structure of PNGV. APPENDIX 2 Casualties from road accidents involving illegal alcohol levels, 1986-2000 United Kingdom Thousands Source: Department for Transport, Local Government and the Regions; Royal Ulster Constabulary Casualties from road accidents involving illegal alcohol levels, 1986-2000 ThousandsSeriousSlightAllFatalinjuriesinjuriescasualties 1986United Kingdom 1.03 6.57 19.60 27.20 1987 0.93 6.01 17.99 24.93 1988 0.81 5.18 17.25 23.24 1989 0.84 4.92 17.05 22.81 1990 0.80 4.23 16.01 21.04 1991 0.69 3.72 14.00 18.41 1992 0.69 3.40 13.28 17.37 1993 0.57 2.82 12.25 15.63 1994 0.54 2.95 12.26 15.75 1995 0.56 3.10 12.89 16.56 1996 0.60 3.13 13.93 17.67 1997 0.57 3.07 13.90 17.55 1998 0.49 2.68 13.25 16.42 1999 0.48 2.60 14.64 17.72 2000 0.56 2.71 15.75 19.02 Source: Department for Transport, Local Government and the Regions; Royal Ulster Constabulary National Statistics (2009) Appendix 3 The Abernathy and Utterback model says that technology can be in 3 different phases, fluid, transitional or specific. Fluid Many uncertainties with the technology and in the market prevail. Large amounts of experimentation going on with the technology and core components are not fully available/developed. Very few competitors. Transitional Firms are learning more about the technology and a dominant design has been accepted by many of the competing firms. Specific Companies are creating incremental innovation on the dominant design and are targeting specific market segments (Innovation Zen, 2006)

The Last Turn of the Crew: A “Battle” between the Governess and Miles E

Henry James’ the Turn of the Screw, written in the Victoria era, tells a ghost story of a governess’s experience with two children in the house. By presenting the story in a symbolic way, the ambiguous narrative of the ghost story suggests an inner conflict of immorality and innocence in the governess. It also seems to imply a loss of insanity and a tragedy as a result of the oppression of desire. This paper will argue that chapter 23 is the most crucial part of the story, because it is the first moment the Governess found the weakness of the ghosts and has a real confrontation with the ghost indirectly through Miles. Miles’ suggestion of going out drives her to the wall, which leads to the tragic end that the only way for governess to protect Miles is to hold him in her, even it is too tight to kill him. The paper will first analyze important scenes in chapter 23. Then it will reveal the symbolic meanings and the latent conflicts in the story, which is signific ant to their â€Å"battle† in chapter 23 and the ending. Before chapter 23, Flora is finally â€Å"corrupted† by Miss Jessel as the governess perceives, which signifies a failure of the governess to protect the children. The sudden change not only leaves the governess faces Miles alone, but also forces the governess to make a resolution. The governess realizes that the situation is â€Å"demanding [†¦] only another turn of the screw† (79). And the final turn of the screw which push her into an extremely â€Å"unusual direction† (79) takes place in chapter 23. The chapter starts with a vague dialogue between governess and Miles who are left alone. The governess first denies that they are not absolutely alone, implying the existence of the ghosts. However, Miles seems to accept that by answer... ...riumph, Miles breaks that by asking for going out, which breaks her last nerve and sanity. The only thing the governess can do to defense her power and her innocence is to hold Miles tightly till his death so that â€Å"[Quint] has lost [Miles] forever† (87). In conclusion, since the governess perceives the fight between the ghosts and her represents her inner fight of immoral and moral, the confrontation in chapter 23 is the last turn of the screw as the governess finally discovers the weakness of the ghost and it is the last chance for her to win. Mile’s request starts a quiet â€Å"fight† between them and drives the whole story to an extreme direction that the governess at last loses her sanity with an excessive protection that kills Miles. The story thus seems to imply an insanity and tragedy as a result of oppressed desire and sexuality in the special period of time.

Manage Budgets And Financial Plans Essay

This project, I chose Woolworths Limited Annual Report 2012 to answer the following questions: To whom is this report disseminated and how is this done? â€Å"The financial report provides people who are interested in a company – such as shareholders, lenders, analysts and employees – with information about the financial performance and financial position of the company†( A guide to understanding annual reports 2012). It is one means by which directors of the company advise shareholders on how the business has performed during the year. The financial report also provides information to shareholders on how the directors have discharged their responsibilities. In other words, Current shareholders and potential investors remain the primary audiences for annual reports. Employees (who today are also likely to be shareholders), customers, suppliers, community leaders, and the community-at-large are also targeted audiences. Employees The annual report serves many purposes with employees. It provides management with an opportunity to praise employee innovation, quality, teamwork, and commitment, all of which are critical components in overall business success. In addition, an annual report can also be used as a vehicle to relate those company successes—a new contract, a new product, cost-saving initiatives, new applications of products, expansions into new geographies—that have an impact on its work force. Seeing a successful project or initiative profiled in the annual report gives reinforcement to the employees responsible for the success. The annual report can help increase employee understanding of the different parts of the company. Many manufacturing locations are in remote areas, and an employee’s understanding of the company often does not go beyond the facility where he or she works. An annual report can be a source for learning about each of a company’s product lines, its operating locations, and who is leading the various operations. The annual report can show employees how they fit into the â€Å"big picture.† Employees also are often shareholders. So, like other shareholders, these employees can use the annual report to help gauge their investment in the company. In this case, the annual report can serve as a reminder to employees of the impact that the work they do has on the value of the company’s stock value. Customers Customers want to work with quality suppliers of goods and services, and an annual report can help a company promote its image with customers by highlighting its corporate mission and core values. Describing company initiatives designed to improve manufacturing processes, reduce costs, create quality, or enhance service can also illustrate a company’s customer orientation. Finally, the annual report can also show the company’s financial strength. Customers are reducing their number of suppliers, and one evaluation criterion is financial strength. They want committed and capable suppliers that are going to be around for the long term. Suppliers A company’s abilities to meet its customers’ requirements will be seriously compromised if it is saddled with inept or undependable suppliers. Successful companies today quickly weed out such companies. By highlighting internal measurements of quality, innovation, and commitment, annual reports can send an implicit message to suppliers about the company’s expectations of outside vendors. Sometimes an annual report will even offer a profile of a supplier that the company has found exemplary. Such a profile serves two purposes. First, it rewards the supplier for its work and serves to further cement the business relationship. Second, it provides the company’s other suppliers with a better understanding of the level of service desired (and the rewards that can be reaped from such service). The Community Companies invariably pay a great deal of attention to their reputation in the community or communities in which they operate, for their reputations as corporate citizens can have a decisive impact on bottom-line financial performance. A company would much rather be known for its sponsorship of a benefit charity event than for poisoning a local river, whatever its other attributes. Annual reports, then, can be invaluable tools in burnishing a company’s public image. Many annual reports discuss community initiatives undertaken by the company, including community renovation projects, charitable contributions, volunteer efforts, and programs to help protect the environment. The objective is to present the company as a proactive  member of the community. This sort of publicity also can be valuable when a company is making plans to move into a new community. Companies seek warm welcomes in new communities (including tax breaks and other incentives). Communities will woo a company perceived as a â€Å"good† corporate citizen more zealously than one that is not. The good corporate citizen also will receive less resistance from local interest groups. The company’s annual report will be one document that all affected parties will pore over in evaluating the business. The way that the company publish it annual report, most listed companies publish their financial statements and reports on their website and notify shareholders of its action including Woolworths Limited. Alternatively, a company may elect to send shareholders a hard copy or a concise report. A shareholder has the right to receive a hard copy, but must specifically request the printed version. Copies are lodged with ASIC and the ASX and are available for inspection online. Why do these people need the information contained in the annual report? Those people need the information contained in the annual report because the financial accounts provide a wealth of information that is useful to various users of financial information, as summarised below: User Interest in / Use of Accounting Information Investors Investors are concerned about risk and return in relation to their investments. They require information to decide whether they should continue to invest in a business. They also need to be able to assess whether a business will be able to pay dividends, and to measure the performance of the business’ management overall Lenders Banks and other financial institutions who lend money to a business require information that helps them determined whether loans and interest will be paid when due Creditors  Suppliers and trade creditors require information that helps them understand and assess the short-term liquidity of a business. Is the business able to pay short-term debt when it falls due? Customers & Debtors Customers and trade debtors require information about the ability of the business to survive and prosper. As customers of the company’s products, they have a long-term interest in the company’s range of products and services. They may even be dependent on the business for certain products or services Employees Employees (and organisations that represent them – e.g. trade unions) require information about the stability and continuing profitability of the business. They are crucially interested in information about employment prospects and the maintenance of pension funding and retirement benefits. They are also likely to interested in the pay and benefits obtained by senior management! Government There are many government agencies and departments that are interested in accounting information. For example, the IR&CE needs information on business profitability in order to levy and collect Corporation Tax. Various regulatory agencies (e.g. the Competition Commission and the Environment Agency) need information to support decisions about takeovers and grants, for example. Analysts Investment analysts are an important user group – specifically for companies quoted on a stock exchange. They require very detailed financial and other information in order to analyses the competitive performance of a business and its sector. Much of this is provided by the detailed accounting disclosures that are required by the London Stock Exchange. However, additional accounting information is usually provided to analysts via formal company briefings and interviews. General public Interest groups, formed by various groups of individuals who have a specific interest in the activities and performance of businesses, will also require accounting information. Table: User of account (Riley 2012) What financial information does the report offer-describe the contents of the report and explain Under the Companies Act is required to prepare a set of accounts that give a true and fair view of its profit or loss for the year  and of its state of affairs at the year end. Woolworths Annual accounts include: Performance Summary Growth Plans Chairman’s Report Managing Director’s Report The Results in Brief Food, Liquor and Petrol General Merchandise Hotels Home Improvement Consumer Electronics Discontinued Operations Overheads, Expenses and Balance Sheet Capital Management and Outlook Board of Directors Directors’ Statutory Report Remuneration Report Auditor’s Independence Declaration Corporate Governance Statement Financial Report to Shareholders Shareholder Information For Woolworths Limited, It is a parent company due to it also owns other companies subsidiaries. Therefore, there are consolidated accounts in its annual report. There are many contents contained in Woolworths Limited Annual Report because Woolworths is the big company and also owns other companies subsidiaries which lead to many transactions occurred in the company. Therefore, I will explain some contents to give some idea. Managing Director’s Report: The directors’ report of a listed company is required to contain information that shareholders of the company would reasonably require to make an informed assessment of: †¢ the operations of the company reported on †¢ the financial position of that company †¢ the business strategies of that company and its prospects for future financial years (unless their inclusion would be unreasonably prejudicial) The report by the directors will identify the names of the directors and officers of the company, and is required to contain information about options including share options, executive options, indemnity and insurance. The directors’ report includes a remuneration report that must include a discussion of the board’s policy on remuneration and its relationship to company performance. The remuneration report includes information about the cost to the company of providing its directors and key management personnel with short-term employee benefits, post-employment benefits, other long-term employee benefits, termination benefits and share-based payment arrangements. For the managing director’s report of Woolworths reveal that Woolworths pleased to report that we are making significant progress against their goals. Also, for this financial year Woolworths pleased to report a solid increase in net profit after tax from continuing operations of 3.6% and by the end of FY12 Woolworths was Australia’s leading online retailer. These statement shows that they were achieve their goals and success during financial year 2012. Directors’ declaration The Directors declare that: (a) in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; (b) in the Directors opinion, the attached financial statements are in compliance with International Financial Reporting Standards, as stated in Note 1 to the Financial Statements; (c) in the Directors’ opinion, the attached Financial Statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity; and (d) the Directors have been given the declarations required by s.295A of the Corporations Act 2001. Examine the financial summaries for information about the fiscal condition of the company. Did the company show a profit? Yes, Woolworths show a profit  and for financial results net profit after tax from continuing operations increased 3.6 per cent to $2.18 billion on total Group sales from continuing operations of $55.1 billion, up 4.8 per cent. These results were affected by provisioning for the disposal of the Consumer Electronic business, which has been impacted in recent years by significant price deflation, around the world. On a one off basis, this reduced our after‑tax profits by 14.5% and earnings per share by 14.9%, compared to the previous year. What sorts of recommendations are made and what suggestions are made regarding business activities for the up-coming year? Business activities for the up-coming year: Leadership in food and liquor Act on Woolworths portfolio to maximize shareholder value Maintain track record of building new growth Woolworths expect further earnings growth in FY13, with net profit after tax from continuing operations expected to grow in the range of 3% ‑6% (on a normalised 52 week basis), subject to the uncertainties detailed above (note: FY13 will be a 53 week year). Section 2 Explain the following statement. â€Å"Ratio analysis can help in measuring business performance and setting objectives/goals†. Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm’s financial performance in several key areas. The ratios are categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset Management Ratios, Profitability Ratios, and Market Value Ratios. Also, ratio Analysis as a tool possesses several important features. The data, which are provided by financial statements, are readily available. The computation of ratios facilitates the comparison of firms which differ in size. Ratios can be used to compare a firm’s financial performance with industry averages. In addition, ratios can be used in a form of trend analysis to identify areas where performance has improved or deteriorated over time. However, ratios are not just a device used by accountants, but a useful tool that identifies strengths and weaknesses of a business and leads to questions about performance that  should result in action. Moreover, â€Å"ratios can be used to set performance goals. For instance, a business seeking to improve its cash flow position may do so by setting targets to reduce average debtors and inventory turnover† (Manage budgets and financial plans 2010). Understanding the relationship between these items and their impact on cash flow, gives greater control over the business and the ability to clearly communicate performance objectives.

Being Bad in Spanish is Malo

Malo is a common Spanish adjective meaning bad or in some way undesirable. The translation can vary depending on context. Its feminine form is mala, and through the process of apocopation, which is shortening, it can become  mal when it comes before a singular masculine noun. Its usual adverb  form is mal, although the another related adverb form,  malamente, can be used to mean badly. As an adjective, malo, mala or mal can almost always be translated as bad, although other translations may be more suitable depending on the context. The plural forms are malos and malas. Mal-  is also a prefix that typically means bad or undesirable. An example of that would be maleducado, which means impolite, as someone who didnt learn their manners. Mal, Malo, Mala, Malos and Malas Used as Adjectives Form of Malo Spanish Sentence English Translation malo Quiero comprar un coche y tengo crdito malo. I want to buy a car and have bad credit. mala Muchas personas consideran que tienen mala memoria. Many people think they have a poor memory. malo No hay libro tan malo del que no se pueda aprender algo bueno. Theres no such thing as a book so bad that you cant learn something good from it. mal No puedo eliminar el mal olor de refrigerador. I cant get rid of the bad refrigerator smell. malo Hay algo malo con mi telfono? Is there something wrong with my telephone? mala El principal causante de la mala circulacin es la arterioesclerosis. The main cause of poor circulation is atherosclerosis. malas No estoy preparado para escuchar las malas noticias. Im not prepared to hear the bad news. malos Son los jugadores ms malos de la galaxia. Theyre the worse players in the galaxy. mal Los superhroes son un mal ejemplo para los adolescentes. Superheroes are a bad example for adolescents. Mal Used as an Adverb Common translations for mal as an adverb include badly and poorly, although others can be used as well to fit the context. Spanish Sentence English Translation Nadaron mal en el mundial. They swam poorly in the world competition Nuestro equipo estaba mal preparado. Our team was poorly prepared. Nuestros hijos comen mal. Our children eat poorly. Muchos pacientes estn mal diagnosticados. Many patients are incorrectly diagnosed. Mi bebe duerme mal durante la noche. My baby sleeps poorly at night. Estudiamos mal la historia de otros pases. We do a bad job of studying the history of other countries. Mal as an Adjective and Adverb at the Same Time Sometimes mal functions as an adverb in Spanish, such as with estar, but in English may be translated as an adjective.   Spanish Sentence English Translation Algo huele mal en mi casa. Something smells bad in my house. Me parece mal que no vengan todos. I feel bad that not everyone is coming. La ciudad no est mal, pero hay mucho desempleo. The city isnt bad, but there is much unemployment. Mal as a Noun Especially when used with estar, mal sometimes means sick or ill. Hoy yo y mi familia estamos mal, which means,  My family and I are sick today. This sentence can also be translated to mean literally and colloquially understood as feeling sick as in, My family and I feel poorly today. Mal can also be translated to mean evil. In this case, it would need the definite article the, literally translating to the bad, which is the Spanish way of saying evil.