Financial Research Report: Google Essay

The paper will analyze a corporation to determine whether a financial advisor should recommend the company to an investor. The paper will, first, give the company background. Second, the paper will discuss the type of investor the company would appeal to. Third, the paper will go over the financial health of the company. Fourth, after analyzing the financial information, the paper will discuss the company risk. Fifth, the paper will discuss final recommendations as to whether the company is the right fit for the investor. Company Information Google, Incorporated was originally a search engine company founded in 1998 by Larry Page and Sergey Brin (Google, n.d.). The company went public in 2004 and has since broadened their horizons in the amount of products and services they offer. According to Alexa, a website analytics program, Google.com is ranked #1 popular website in the U.S. and in the world. Google currently has a vast number of products and services that people use daily. Google has stated that the have â€Å"Over 1 billion users per week. Over 100 billion searches per month. Over 1 billion Android activations. Over 1 billion YouTube users per month† (Mohan, 2014). Some popular Google products are: Google.com – A search engine Google+ – A social sharing site Gmail – Webmail Google Chrome – A web browser Google Play Store – A digital application distribution platform for Android Google Play Music – A platform to upload music and share music on Android devices YouTube – A website to share music Google Maps – A digital navigation system to find local businesses and residential areas Android Software – Operating software for mobile devices Google Wallet – An application that allows the user to shop online with payment cards Picasa – Application that organizes, edits and shares photos (Mohan, 2014) Google believes in innovation and is constantly trying to evolve with the mission of people using Google products in all aspects of their lives. Some products the company is currently working on are: Google Smart Watch – Wearable computers that connect to the user’s mobile devices Google Glass – Glasses that act as a computer and connect to the user’s mobile devices Google Fiber – A device used to provide users with faster, more reliable internet service Project Loon – A means of internet service through balloons as opposed to cables and telephone lines Google Home Automation – A smart home service where the homeowner can control the home through mobile devices Google Smart Contact Lens – A contact lens that can monitor glucose levels for diabetics Google Self-Driving Car – A car that can drive by itself with robotics technology Chrome Tablet – A mobile tablet with Android software  (Amadeo, 2014). Currently, Larry Page, one of the founders of the company, is CEO of the company. He has graced Forbes Magazine’s Most Powerful People list twice at #17 in 2013 and #20 in 2012, Forbes 400 Richest People in America Category at #13, and Forbes World’s Billionaires list at #20 in 2013 and #13 in the United States (Forbes, 2013). This young mogul has a net worth of $24.9 billion dollars (Forbes, 2013). With his vision he helped turn a 2 person operation to a business with over 30,000 employees worldwide. (Google, n.d.) He helped expand Google from merely being a search engine to creating computer software, phones and making way for new technology such as driverless cars and teleport machines. Larry Page’s management style can be described as someone who is running his business like a startup. He believes in innovation and staying ahead of his competition. As a technology based company, you are only as good as your next big idea. Page encourages his employees to thin k of crazy ideas and cultivate the best of them. â€Å"When no one else is crazy enough to do it, you have little competition,† he says. (Elmer, 2011). Investor Profile The client is a young investor. She is interested in seeing her money grow over 10 – 15 years. She is a multi-millionaire and has the desire to be an  aggressive investor. She wants to accumulate a substantial amount of wealth in the future and is open to investing in a start- up company. Though the company has been around for approximately 16 years, Google is run like a start-up company and is relatively young compared to some of its competitors (i.e.: Microsoft and Apple). The company is always trying to reinvent itself with a diverse portfolio of products and services. They spend a lot of money on research and development to cultivate innovation and improve their products already on the market. Google does not pay stockholders dividends. It uses the dividend money for R&D, data centers, legal issues and diversification (Rosoff, 2012). Since the client is not interested in an instant money maker and can afford fluctuations in the market, Google may be a good fit for her to invest in. Financial Data The financial advisor must use a number of ratios to determine the financial health of the company. Five ratios what will be used are current ratios, quick ratio, earnings per share, price earnings ratio, and debt to equity ratio. Current Ratios Current ratios give the investor the opportunity to see the company’s ability to pay back its short-term liabilities with its short-term assets (Current Ratios, n.d.). The higher the current ratio, the more capable the company is to pay back its debts which would be great for a bank lender. But a high current ratio could also mean the company has a lot tied up in nonproductive assets (Brigham & Ehrhardt, p. 99, 2014). Current ratios are determined by dividing total assets by total liabilities (Brigham & Ehrhardt). 201120122013  52,758 / 8,913 = 5.960,454 / 14,337 = 4.272,886 / 15,908 = 4.6 Companies generally aim for a ratio of 1 to ensure their current assets can at least cover the short term obligations. Having a ratio greater than 1 gives the company a better contingency to be able to cover those obligations. The company started out with a high current ratio of 5.9 in 2011. This means, in 2011, the company was able to cover 5.9 times their short term obligations. It dropped down to 4.2 in 2012, but rose by .4  points in 2013. The drastic fluctuation may be due to the acquisition of Motorola Mobile in 2011 (Goldman, 2012). Both current assets and current liabilities would increase due to the increase of inventory and debt. The technology industry average current ratio is 2.33 (Reuters, n.d.). For all three years, the current ratio is almost twice the industry’s average. Due to the high current ratio, the company is not at risk of bankruptcy. Quick Ratios Quick ratios tell the investor what the company’s liquidity position is or how quickly it can be converted to cash at the going market price (Brigham & Ehrhardt). To calculate quick ratios the formula is current assets minus inventories divided by current liabilities. 201120122013 52,758 – 35 /8,913 = 5.960,454 – 505 / 14,337 = 4.272,886 – 426 /15,908 = 4.6 As of 2013, the current technology industry quick ratio average is 1.26 (Technology Sector, 2014). The past three years has been higher than the industry average. The higher the quick ratio in comparison to the industry average shows that the company is less likely to be overwhelmed by debt in the near future. A higher ratio is safer than a lower one because it means the company has excess cash. This is a favorable consideration for an investor. Prior to 2011, Google, Inc. did not have any inventories listed on their balance sheets. Google started as a search engine in 1998 and have provided technology services that did not require inventory. In 2011, Google acquired Motorola Mobility, taking it from a strictly software company to a software and hardware company (Goldman, 2012). This puts Google in direct competition with technology companies such as Apple, Inc. and Microsoft, Corp. In partnership with HTC and Samsung, Google has created their line of Nexus smartphones and tablets. They also have Google Glass that is expected to launch for consumer purchase by the end of 2014 as well as the Google Smart Watch. Other items Google is working on for the near future are the self-driving car, Project Loom, and Google Home Automation. Total Assets Turnover Ratio Total assets turnover ratio determines how productive the company is. It shows how much revenue the company generates for each dollar in assets.  Total assets turnover ratio is calculated by dividing total revenue from the income statement by total assets from the balance statement. 201120122013 37,905 / 72,574 = 0.5250,175 / 93,798 = 0.5359,825 / 110,920 = 0.54 The average turnover ratio for Google is 0.53. This means for every dollar worth in assets, the company generates 53 cents in revenue. Some companies have less assets than others, in which the total assets turnover ratio will be lower than a more assets-intensive company. Google is primarily a service related company, so it has less assets than the majority of its competitors who produce a vast number of products. Some of Google’s most popular products are the Google search engine, Google+, Gmail, Google Maps, Google Play Store, Android software, and YouTube. The company does not require as many physical assets. The technology industry total assets turnover ratio is 1.07 (Reuters, n.d.). Though Google’s ratio is lower than the industry average, it is not necessarily a bad thing considering most technology based companies sell a physical product and Google mainly sells services, thus less assets than its competitors. Debt to Equity Debt to equity ratio is a leverage ratio which explains how much of the company’s assets are financed by debt and stockholders’ equity. The debt to equity ratio is calculated by dividing the total debt by the total common equity. The total debt is determined by adding current liabilities with long term debt. 201120122013 14,429 / 58,145 = .2522,083 / 71,715 = .3123,611 / 87,309 = .27 From the three years, the average debt to equity ratio is .28. This ratio translates that Google has 28 cents of debt for every dollar of equity. The technology industry average is 31 cents. The lower number is more favorable because it shows that the company is less risky. The lower numbers indicate that the company relies on less external lenders than other companies. In 2012, the ratio increased by .06. In May 2012, Google, Inc. completed its acquisition of Motorola Mobility in which it acquired the company’s debts as well as its assets. The following year, Google may have paid some of the debt. Stockholders’ equity increased by having a significant increase in retained earnings. Retained earnings are part of the net income that goes back into  the company instead of the company distributing dividends to the stockholders (Brigham & Ehrhardt, p. 1114, 2014). Net Profit Margin Net profit margin measures a company’s profitability. The net profit margin is calculated by dividing the net income by sales. This ratio can determine if a company earns enough money to cover its operating costs. If it does not, the company could eventually shut down which would make it a bad investment. 201120122013 9,737 / 37,905 = .2610,737 / 50,175 = .2112,920 / 59,825 = .22 Based on the past three years, Google’s profit margin dropped by 5% between 2011 and 2012. It slightly increased by 1% between 2012 and 2013. In all three years, the profit margins were higher than the technology industry averages for those years. In 2011, the industry average was 19%; in 2012, the industry average was 16%; and in 2013, the industry average was 19% (Profitability Analysis, 2014). If the company’s net profit margin is higher than the industry’s profit margin, it is a good investment. Company Risk Level Based on the financial analysis for Google, the company has a low risk level based on the industry’s averages. The current ratio average for the technology industry is 2.33. Google’s average is 4.9. This means that the company has a contingency to be able to take care of their short-term obligations over twice the industry average. The industry average for quick ratios is 1.26. Google’s quick ratio average over the past 3 years is 4.9. This shows that the company is least likely to be overwhelmed by debt in the future compared to its competitors. The average turnover ratio for Google is .53 indicating that for every dollar the company has in assets, it generates 53 cents. This is a low number mainly because the company has a low amount of assets unlike its competitors. Google is mainly a service company and does not have a vast number of assets like its competitors that produce products such as tablets, phones, computers, etc. The technology industry’s average for debt to equity is 31. Google’s debt to equity average is 28. This means that there is 28 cents of debt for every dollar of equity. The lower number is more favorable because it means that the  company depends less on external lenders. The industry’s profit margin average was 18%. Google’s profit margin average over the course of the past three years was 23%. This shows that compared to most of its competitors, it is generating more of a profit. A company’s â€Å"beta† measures the company’s volatility in the stock market. A company’s beta depends on how much the company fluctuates within the market. The stock market itself has a beta of 1.0 (McClure, 2012). Anything above 1.0 is considered risky. Anything below 1.0 is considered more stable.According to Yahoo Finance, Google has a beta of 1.14. This means it is 14% above the stock market average and is considered a risky investment. Though the company is considered risky, it has the potential for high returns. The downfall of betas is that they only calculate what happened in the past. Its assessment does not calculate for the future of the company. Recommendations Despite the market risk of the technology based company, Google has shown growth over the past year. According to the Financial Post, Google’s shares have risen 58% in 2013. In January 2014, the company’s stock rose U.S. $2.37 to U.S. $1,141.23 (Ratner, 2014). Of the 48 analysts covering Google, 35 of them recommend buying the stock whereas 13 of them recommend holding it (Ratner, 2014). Google maintains a strong position in the driving the market share on online advertising in the mobile and video departments. The company has strong control over four pillars of the mobile department: operating system, apps, app store, and payment. YouTube is a leading advertising and video sharing medium. Unlike its competitors, Google has had a steady 20% growth annually (Ratner, 2014). Under the direction of CEO Larry Page, the company constantly improves already existing products as well as produce innovative products. Larry Page wants to make Google a household name so that a person would need to use Google products several times throughout the course of their day. Currently, Google has well over 100 products that, in some cases, have become a necessity in everyday life. There are a number of phones and tablets that have been uploaded with Android software as an operating system. Google’s search engine has become so increasingly popular that when a person wants to do a web search on a topic they simply â€Å"Google it†. The website has become the #1 site globally and nationally according to Alexa.com. YouTube is a popular video website  where people upload everything from home videos, tutorials, music videos, and ad campaigns. Also, one of the most reliable mobile navigation applications is Google Maps. The company is constantly updating its maps to provide better locations and directions. The company has a number of future products that will diversify their product portfolio. For example, Google Glass is a mobile device used as glasses which is like a personal computer or tablet and also interfaces with the consumer’s mobile phone. So far the product is generating a lot of attention with the public. Google is also working on the driverless car, Google Contacts, Project Loom, Google Fiber, and the Google Home Automation. Google is expanding their spectrum from a search engine and mobile apps to automobiles, health care, the internet, and home security. All of these projects show a promising future for the company. For an aggressive investor who does not mind investing in a risky company and is looking to invest for the long-term, Google is a good investment to have. The company has seen a consistent increase in growth and has shown financial stability over the years. Google does not pay stockholders dividends but companies that have a high risk, have the ability to have larger payouts in the long run. Resources Alexa. (2014). Google, Inc. Retrieved from http://www.alexa.com/siteinfo/google.com Amadeo, R. (2014, February 10). The 2014 Google Tracker – Everything We Know Google Is Working On This Year. ARS Technica. Retrieved from http://arstechnica.com/gadgets/2014/02/the-2014-google-tracker-everything-we-know-google-is-working-on-this-year/ Brigham, E. & Ehrhardt, M. (2014). Financial Management (14th ed.). Mason, Oh. Cengage Learning. Current Ratios. (2014). Investopedia. Retrieved from http://www.investopedia.com/terms/c/currentratio.asp Elmer, V. (2011, April). What Would Larry Page Do? Leadership Lessons from Google’s Doyen. CNN Money Online. Retrieved from http://management.fortune.cnn.com/2011/04/18/what-would-larry-page-do-leadership-lessons-from-googles-doyen/ Forbes (n.d.). In Forbes.com. Retrieved from http://www.forbes.com/profile/larry-page/# Goldman, D. (2012, May 22). Google Seals $13 Billion Motorola Buy. CNN Money. Retrieved from http://money.cnn.com/2012/05/22/technology/google-motorola/ Google. (n.d.). Company Overview. Retrieved from https://www.google.com/intl/en/about/company/ Mahesh, M. (2014, January 28). Over 101 Google Products and Services You Probably Don’t Know. Retrieved from http://www.minterest.org/google-products-services-you-probably-dont-know/ McClure, B. (2012, August 7). Beta: Know The Risk. Investopedia. Retrieved from http://www.investopedia.com/articles/stocks/04/113004.asp Profit Analysis. (2014). Stock Analysis On Net. Retrieved from http://www.stock-analysis-on.net/NASDAQ/Company/Google-Inc/Ratios/Profitability Ratner, J. (2014, January 9). â€Å"Why Google, Inc. is a ‘Must Own’ Tech Stock†. Financial Post. Retrieved from http://business.financialpost.com/2014/01/09/why-google-inc-is-a-must-own-tech-stock/?__lsa=389e-8727 Reuters. (n.d.). Technology Overview. Retrieved from http://www.reuters.com/assets/curtainMainContentLoader?view=RSM-US-Curtain-MainConte nt-Sector-Technology Rosoff, M. (2012, April 12). Why Google Would Be Nuts To Declare A Dividend Now. Business Insider. Retrieved from http://www.businessinsider.com/why-google-would-be-nuts-to-declare-a-dividend-2012-4 Technology Sector. (2014). CSI Market. Retrieved from http://csimarket.com/Industry/industry_Financial_Strength_Ratios.php?s=1000 Yahoo Finance. (2014, June 13). â€Å"Google, Inc.† Retrieved from http://finance.yahoo.com/q/ks?s=GOOG+Key+Statistics

Dickens writes Oliver Twist Essay

Dickens creates sympathy for Oliver and the other orphans throughout the first four chapters of the book. He does this by describing in depth the neglect, mistreatment and emotions of the children. There is a strong example of this at the end of the first chapter when Dickens writes â€Å"Oliver cried lustily. If he could have known that he was an orphan, left to the tender mercies of church-wardens and overseers, perhaps he would have cried the louder. † Oliver suffers dearly while living in the workhouse; he is quite regularly made an example of. One of the occasions he is made an example of is when he is forced to ask for more gruel by the other orphans. For doing this he is harshly beaten by cane in front of the other children and is then imprisoned. Oliver and the other orphans were beaten both mentally and physically, neglected and starved from birth, until either leaving the workhouse as slave laborers or dieing. Oliver is terrified of Mr.Gamfield he openly shows his emotion to the whole board of the workhouse when in chapter three he falls to his knees, praying that they would order him back the room, that they would starve him, beat him, kill him. He prays for all of this rather than them send him away with Mr. Gamfield In the time of workhouses the standard of living was near to none. The unwealthy basically had no choice to but to enter a workhouse. They would work for a roof and little food. All of the people in the workhouse had to sleep on the hard floor and receive poor medical attention. Overall the living condition were appalling, Charles Dickens uses irony to create a feeling of how bad the conditions where, a good example of this is that nearly every member of staff is overweight even them giving out the tiny amount of gruel to the orphans. Dickens attempts to create a feeling of pity for the orphans, by doing this we can see that he is trying to relive poverty, stop other people from going through what he went through. Dickens somehow manages to take a subject as important as poverty and put it across by using humor, and at the same time still manages to keep that feeling of seriousness.

Night World : Witchlight Chapter 15

But she could hear Alex's sobbing even when she got in the car, and it seemed to follow in her head even when they had left the house behind. They checked with the â€Å"road crew† stationed right outside the Ashton-Hughes front gate. It looked extremely professional, with bright lights and all the accoutrements. â€Å"All secure,† the witch in charge said cheerfully when Keller rolled down the window. He shifted his reflective vest. â€Å"Thirty cars in, nobody out. There hasn't been one for a while-I think you're fashionably late.† He winked. â€Å"Thirty?† Keller said. â€Å"How many people per car?† â€Å"Two in most of them, but some were packed.† Keller glanced at Iliana beside her. â€Å"And that's what they call only inviting a few people?† Iliana shrugged. â€Å"You haven't seen the house.† â€Å"Anyway, it's safe,† the witch foreman said. â€Å"No dragon has gotten in, I can promise you that. And none is going to get in, either.† Keller nodded at him, and they drove on. Diana was right. In considering how big the party was, you had to see the size of the house. Keller had studied the plans, but it wasn't the same. They passed something like a peach orchard on one side of the driveway, and then a carriage house that seemed to have swallowed up a dozen cars. But Nissa dropped them off by the front steps, below the stately white columns that decorated the magnificent porch. Impressive place, Keller thought. They walked in. In the cavernous, softly lit entry hall, there was a girl in a dark uniform who took their coats. There was also Brett. When he saw Diana, he pounced. â€Å"Blondie! I thought you weren't going to make it!† â€Å"You knew I wouldn't miss this,† Diana said gently. But Keller thought she looked much less interested in Brett than the last time she'd spoken to him. She's learned a lot, Keller thought. And, of course, now that she knows Galen, she sees this loser for what he is. Brett was looking the others over in his meat-appraising way. â€Å"So just which of these lovely ladies is your cousin? I never got a chance to ask.† â€Å"Oh†¦ that one.† Diana pointed a random finger. â€Å"You?† Brett's eyes ran up and down Keller's tallness and her blue-black hair. â€Å"I never would have guessed.† â€Å"We're sort of†¦ foster cousins,† Keller said. She didn't like Brett. That was nothing new, but somehow tonight she realty didn't like him. There was something almost creepy in the way his eyes clung to girls, and when he looked at Diana, it was like watching a slug crawl over a peach blossom. â€Å"Well, come with me and join the fun,† he said, gesturing expansively and flashing a smile. Keller almost asked â€Å"Where?† but in a moment she realized that it was pointless. The party really seemed to be all over the house. The entry room itself was big enough to have a party in, and it had a wide, sweeping staircase just like a proper Southern mansion. Above, on the second floor, Keller could see a hallway lined with portraits and statues. Brett led them through room after room, each one impressive. Some seemed to be real sitting rooms; others just looked like displays in a museum. Finally, they went through one last open archway into a ballroom. Paneled walls. Painted ceiling. Chandeliers. An ocean of floor. And the college band at one end playing music that was definitely modern. A few couples were dancing a slow dance, very near the band. They looked small enough to rattle in the enormous room. Keller almost giggled, but Diana looked dreamy. â€Å"It's beautiful.† Brett looked satisfied. â€Å"There's food over there on the sideboard. But most of the food's downstairs in the game room. You want to see that?† â€Å"I want to see Jaime,† Iliana said. â€Å"She's down there.† The game room was amazing, too. Not just pool tables and darts but arcade-style video games, old-fashioned pinball machines, an indoor basketball hoop, and generally just about everything you'd find at a superior arcade. As soon as they walked in, a guy in black pants, white shirt, and black vest offered them a tray of tiny quiches and mini-pizzas. A caterer, Keller decided, not part of the regular staff of the house. She shook her head at the food and went on looking around, keeping her senses open so she could take in everything at once. This was the first time Iliana had been out in public since she'd gone to school last Monday, and it was nerve-wracking. The game room was much more crowded than the ballroom, and everybody was laughing and talking at once. On top of that, this old mansion had some very modern renovations. The band music was being piped into the other rooms. â€Å"Jaime!† Iliana said as a figure emerged from the crush of people. Jaime looked good. Her face had a healthy color, and her dark blue eyes were wide open and shining. Her brown hair was fluffed softly, and she was wearing a very pretty blue dress. Iliana.† She hugged Iliana hard, speaking in her flat but oddly pleasant voice. â€Å"It seems like forever. How are you?† â€Å"Fine. My cold's better, and my hand-† Iliana held up her right hand. There was a neat bandage around the palm to protect the stitches. ‘It itches sometimes, but that's all. How about you?† â€Å"I still have headaches. But I'm getting better.† Jaime smiled at Keller and the others. â€Å"I'm so glad you all could come.† â€Å"Yeah, so are we,† Keller said politely, feeling a stab of instinctive guilt. It was irrational, but she kept expecting this girl to look at her and say, â€Å"You're the one who attacked me! The monster cat!† And she wasn't glad that they had come. Her early warning system was clamoring already; she felt as if her fur was standing on end. She couldn't explain it, but there was something wrong about the house. â€Å"Keep alert,† she said quietly to the others as Jaime led Iliana to the food tables. â€Å"Remember, two of us are with her at all times. The other two can wander the house, check the perimeter, look for anything suspicious. And keep in touch.† She put a finger to her brooch. That was when they found that their transmitters didn't work. Keller had no idea why. All any of them could hear was static like white noise. Keller cursed. â€Å"Well keep in touch physically, then,† she said grimly. She checked her watch. It was almost nine. â€Å"And well get her out of here in an hour. Ten o'clock. Just to be safe.† â€Å"Good idea,† Galen said. Winnie and Nissa said, â€Å"Right, Boss.† Keller stuck close to Iliana, telling herself that they were taking every precaution and that all she had to do was stay cool and they could get out safely. But as time went on, she only got more and more uneasy. The dragon was going to attack. She was certain of it. But how? What form would the attack take? Was it going to be a battering ram of dark power like the one that had brought down the roof of the safe house? Or something tiny and sneaky, some clever way to get past the wards? A mouse? Or an insect? No ordinary shapeshifter could turn into a bug, but it was a kind of animal, after all. Could something like that slip through the wards undetected? What was it she was missing? Nothing to do but keep her senses, open, search every face for enemies, and be prepared for anything. As it turned out, though, she was entirely unprepared when it happened. Nissa and Galen were the two wandering the house at that point. Keller and Winnie were sticking with Iliana. Keller herself didn't plan to leave Diana's side all night. But as she was watching Jaime and Iliana laughing and chattering by one of the food tables- which offered everything from barbecue to shrimp to exotic fruit-Brett walked up chewing his lip. He was heading for Iliana, but he looked undecided and genuinely unhappy. Keller headed him off reflexively. She preferred to keep him away from Iliana just on principle. â€Å"Anything wrong?† He glanced at her with something like relief in his dark blue eyes. For once, he didn't look arrogant or patronizing or even well groomed. â€Å"Uh, there's something†¦ I need to tell Iliana about†¦ I guess.† He gulped, his face twisted. â€Å"You guess?† Keller herded him into a relatively private niche beside a video game. â€Å"What do you mean, you guess?† â€Å"Well, I do have to tell her. I just hate to.† He lowered his voice so that Keller had to lean closer to hear him. â€Å"Her mom's on the phone. And she says that her little brother is missing.† Ice water sluiced over Keller. For five seconds, she didn't breathe at all. Then she said, â€Å"What?† Brett grimaced. â€Å"He's missing from his bedroom. And, I mean, I hate to scare Iliana with it, because he's probably just crawled out the window or something-he's that age, you know? But her mom wants to talk to her. She's sort of hysterical.† He wet his lips. â€Å"I guess we should all go over there as a search party.† He's really worried, Keller thought dazedly, while another part of her mind, a clear, cold part, clicked through possible solutions. So there's something under that brand-name facade after all. In spite of the â€Å"he probably crawled out of the window† crap, he's worried about the kid-and he's worried about telling Iliana, too. Because Diana's going to go ballistic, the cold part of her mind put in. She's going to get as hysterical as her mom and insist on rushing back there. And a search party-that would mean all of us outside the wards, crawling around between houses in the dark†¦ No. It couldn't happen. It was undoubtedly just what the dragon wanted. But how had he gotten to the baby? With all those wards and the agents watching the house-how? It didn't matter. Right now, she had to deal with the situation. â€Å"Brett-don't tell Iliana.† â€Å"Huh? But I have to.† â€Å"No, you don't. Ill talk to Mrs.-to Aunt Anna. I'm her niece, remember? And I have an idea where the baby might have gone. I think he's safe, but she has to know where to look.† Brett gawked at her. â€Å"You have an idea?† â€Å"Yeah. Just let me talk to her. And don't say anything to Iliana just yet.† Keller glanced toward the game room bar, which was set up like an English pub. There was a phone, but a girl with red hair was talking animatedly into it, while eating nuts from a bowl. â€Å"It's the other line, Jaime's line,† Brett said. â€Å"She said she called on that one first, but it was busy.† â€Å"Okay, where's the other line?† â€Å"Jaime's room.† Keller hesitated, looking at Iliana. Winnie was on one side of her and Jaime on the other. They were the center of attention, something like the heart of a rose, with other people surrounding them like petals. At least she was in full view of everyone. And somebody trying to get to her would have to go through all of them first, and that would alert Winnie. But I wish Nissa and Galen were here to take over from me. She glanced at her watch. Fifteen minutes before they were supposed to come back to the game room. The baby couldn't wait that long. She forged through the crowd and touched Winnie's shoulder. â€Å"I have to run for a minute-a phone call. Nothing to worry about yet. I'll make it fast,† she murmured in Winnie's ear. Winnie glanced at her, surprised, but then she nodded. â€Å"Problems?† â€Å"Maybe. Stay alert.† Keller said it through a smile for Iliana's benefit. When she got out of the throng, she said to Brett, â€Å"Take me there.† Actually, she knew where Jaime's bedroom was from the plans. But she didn't want Brett hanging around Iliana. His face alone would give away the show. They hurried up the wide staircase. Keller's mind was racing, making plans. I can calm her down, at least. And I can call Circle Daybreak and tell them-if they don't already know. They'll make a much better search party than humans. Iliana doesn't need to know about it at all until after the ceremony. And then†¦ Her mind stalled, and the sick feeling in her stomach grew. No. It wouldn't be enough. She knew what she really had to do. I have to go back there. Just me. I owe Diana that much. I owe the whole family that much. I'll be the best one to search. I can drive over to the house feist and see what's going on. Borrow a car from Brett. That way, when the dragon attacks-and he's going to attack-I'll be the only one there. You'll be the only one dead, a snide little voice in her mind pointed out. But Keller gave it the cold shoulder. She knew that already. It wasn't important. You're going to risk your life-give up your life- for a baby? One who's not a Wild Power, not even a shapeshifter? At least I'll get another chance at the dragon, she told the voice. You're going to risk the mission, the alliance, the whole daylight world, for a single individual? the voice went on. This was a better point. But Keller had only one thing to say to it. I have to. â€Å"Here.† Brett gestured at the open door of a pretty bedroom, then followed Keller when she went in. â€Å"Um, can I help you?† He was getting over his worry and trying to cozy up to her again. â€Å"No.† â€Å"Oh. Well, I'll leave you alone, then.† He slid out the door, closing it behind him. And Keller let him. Later, that was what she couldn't quite believe. That she had been stupid enough to walk into the trap and stand there while it snapped shut. She picked up the phone. â€Å"Mrs. Dominick?† Silence. . At first, just for a moment or two, she thought Hiana's mother might have stepped away from the phone. But then the nature of the silence got to her. There were no sounds in the background at all. It was dead air. Keller hit the plunger to hang up the phone. Nothing happened. No dial tone. She glanced at the phone cord; it was plugged into the wall. She pushed the plunger rapidly, four times, five. Then she knew. She'd been suckered. In one motion, she whirled and sprang to the door. Only to twist the handle uselessly. It was locked. And it was a good, sturdy door, made out of solid wood, the kind they used to make. She found this out by throwing herself against it hard enough to bruise her shoulder. It had been locked with a key from the outside, and the bolt was a good, sturdy one, too. White icy-hot rage swept over Keller. She was more angry than she could ever remember being in her life. She couldn't believe it-she'd been fooled by an idiot human boy. The Night People must have gotten to him somehow, must have bought him†¦ No. Keller knew she wasn't a genius. But sometimes ideas came to her in a flash, allowing her to see a complete picture all at once where other people saw only fragments. And right now, like a bolt of lightning, realization dawned on her, and she understood. Oh, Goddess, how could we have been so stupid? She knew how the dragon had done it.

Airline Economics Essay Example for Free

Airline Economics Essay Choose cite format: APA MLA Harvard Chicago ASA IEEE AMA Haven't found the essay you want? Get your custom sample essay for only $13.90/page ? The purpose of this note is to provide background to the study of the airline industry by briefly discussing four important economic aspects of the industry: (1) the nature and measurement of airline costs; (2) economies of scope and hub-and-spoke networks; (3) the relationship between yields and market characteristics; and (4) the S-curve effect. The Appendix to this note contains a glossary of key terms used throughout the discussion. Airline costs fall into three broad categories: flight sensitive costs which vary with the number of flights the airline offers. These include the costs associated with crews, aircraft servicing, and fuel. Once the airline sets its schedule, these costs are fixed. traffic-sensitive costs which vary with the number of passengers. These include the costs associated with items such as ticketing agents and food. Airlines plan their expenditures on these items in anticipation of the level of traffic, but in the short run, these costs are also fixed. fixed overhead costs which include general and administrative expenses, costs associated with marketing and advertising, and interest expenses. The largest category of costs is flight-sensitive. An important point about an airline’s cost structure, and a key to understanding the nature of competition in the industry, is that once an airline has set its schedule, nearly all of its costs are fixed and thus cannot be avoided. Because it is better to generate cash flow to cover some fixed costs, as opposed to none at all, an airline will be willing to fly passengers at prices far below its average total cost. This implies that the incidence of price wars during periods of low demand is likely to be greater in this industry than in most. There are two alternative measures of an airline’s average (or, equivalently, unit) costs: cost per available seat mile (ASM) cost per revenue passenger mile (RPM) Cost per ASM is an airline’s operating costs divided by the total number of seat-miles it flies. (An available seat mile is one seat flown one mile.) It is essentially the cost per unit of capacity. Cost per RPM is the airline’s operating costs divided by the number of revenue-passenger miles it flies. (A revenue passenger mile is one passenger flown one mile.) It is essentially the cost per unit of actual output. These two measures are related by the formula: Cost per RPM = cost per ASM ( load factor where load factor is the fraction of seats an airline fills on its flights. In the end, it is cost per RPM that an airline must worry about, for it must cover its cost per RPM to make a profit. Airlines differ greatly in both their costs per ASM and costs per RPM. For example, in 1992 Southwest had a cost per ASM of 7.00 cents, while USAir had a cost per ASM of 10.90 cents. Similarly, Delta had a cost per RPM of 15.33 cents while American had a cost per RPM of 13.81. Differences across airlines in cost per ASM reflect differences in: 1) average length of flights (cost per ASM declines with distance). 2) fleet composition (cost per ASM is smaller with bigger planes). 3) input prices, especially wage rates. 4) input productivity, especially labor. 5) overall operating efficiency. Differences across airlines in cost per RPM reflect differences in cost per ASM plus differences in load factor. Two airlines might have very similar costs per ASM, but quite different costs per RPM because of differences in load factor. For example, in 1992 USAir and United’s cost per ASM differed by less than 2 cents (USAir 10.90, United 9.30), but their costs per RPM differed by nearly 5 cents (USAir 18.54, United 13.80) because of USAir’s lower overall load factor (USAir .59, United .67) Economies of Scope and Hub-and-Spoke Networks Economies of scope play an important role in shaping the structure of the U.S. airline industry. The source of economies of scope in the airline industry is the hub-and-spoke network. In hub-and-spoke network, an airline flies passengers from a set of â€Å"spoke† cities through a central â€Å"hub,† where passengers then change planes and fly from the hub to their outbound destinations. Thus, a passenger traveling from, say, Omaha to Louisville on American Airlines would board an American flight from Omaha to Chicago, change planes, and then fly from Chicago to Louisville. In general, economies of scope occur when a multiproduct firm can produce given quantities of products at a lower total cost than the total cost of producing these same quantities in separate firms. If â€Å"quantity† can be aggregated into a common measure, this definition is equivalent to saying that a firm producing many products will have a lower average cost than a firm producing just a few products. In the airline industry, it makes economic sense to think about individual origin-destination pairs (e.g., St. Louis to New Orleans, St. Louis to Houston, etc.) as distinct products. Viewed in this way, economies of scope would exist if an airline’s cost per RPM is lower the more origin-destination pairs its serves. To understand how hub-and-spoke networks give rise to economies of scope, it is first necessary to explain economies of density. Economies of density are essentially economies of scale along a given route, i.e., reductions in average cost as traffic volume on the route increases. Economies of density occur because of two factors: (1) spreading flight sensitive fixed costs and (2) economies of aircraft size. As an airline’s traffic volume  increases, it can fill a larger fraction of seats on a given type of aircraft and thus increase its load factor. The airline’s total costs increase only slightly as it carries more passengers because traffic-sensitive costs are small in relation to flight-sensitive fixed costs. As a result, the airline’s cost per RPM falls as flight-sensitive fixed costs are spread over a larger traffic volume. As traffic volume on the route gets even larger, it becomes worthwhile to substitute larger aircraft (e.g., 300 seat Boeing 767s) for smaller aircraft (e.g., 150 seat Boeing 737s). A key aspect of this substitution is that the 300 seat aircraft flown a given distance at a given load factor is less than twice as costly as the 150 seat aircraft flown the same distance at the same load factor. The reason is that doubling the number of seats and passengers on a plane does not require doubling the number of pilots or flight attendants or the amount of fuel. Economies of scope emerge from the interplay of economies of density and the properties of a hub-and-spoke network. To see how, consider an origin-destination pair – say, Indianapolis to Chicago – with a modest amount of traffic. An airline serving only this route would use small planes, and even then, would probably operate with a low load factor. But now consider an airline serving a hub-and-spoke network, with the hub at Chicago. If this airline offered flights between Indianapolis and Chicago, it would not only draw passengers who want to travel from Indianapolis to Chicago, but it would also draw passengers from traveling from Indianapolis to all other points accessible from Chicago in the network (e.g., Los Angeles or San Francisco). An airline that includes the Indianapolis-Chicago route as part of a larger hub-and-spoke network can operate larger aircraft at higher load factors than an airline serving only Indianapolis-Chicago. As a result, it can benefit from economies of density to achieve a lower cost per RPM along the Indianapolis-Chicago route. In addition, the traffic between Indianapolis and the other spoke cities that will fly through Chicago will increase load factors and lower costs per RPM on all of the spoke routes in the network. The overall effect: an airline that serves Indianapolis-Chicago as part of a hub-and-spoke network will have lower costs per RPM than an airline that only serves  Indianapolis-Chicago. This is precisely what is meant by economies of scope. Relation Between Airline Yields and Market Characteristics An airline’s yield is the amount of revenue it collects per revenue passenger mile. It is essentially a measure of the average airline fares, adjusting for differences in distances between different origins and destinations. Airline yields are strongly affected by the characteristics of the particular origin-destination market being served. In particular, there are two important relationships: Shorter distance markets (e.g., New York-Pittsburgh) tend to have higher yields than longer distance markets (e.g., New York-Denver). Controlling for differences in the number of competitors, flights between smaller markets tend to have higher yields than flights between larger markets. The reasons for relationship 1) are summarized in Figure 1. higher cost per RPMlower load factor Cost per ASM generally falls as distance increases. This is because, say, doubling trip mileage does not require doubling key inputs such as fuel or labor. Thus, shorter flights have higher cost per ASM than longer flights, and airlines must achieve higher yields to cover these higher costs. In addition, shorter distance flights generally have lower load factors than longer distance flights, which implies a higher cost per RPM for shorter distance flights, again requiring higher yields. Why are load factors lower for shorter flights? The reasons has to do with the greater substitution  possibilities that consumers have in short-distance markets (e.g., car of train travel are more viable options). In short –distance markets, we would therefore expect that some fraction of time-sensitive travelers (e.g., vacationers) would travel on these alternative modes, so short distance flights would have a higher proportion of time-sensitive travelers (e.g., business persons) than longer distance flights. Competitive pressures thus force airlines to offer more frequent flight schedules in short-distance markets, which leads to lower load factors. The reason for relationship 2) has to do with the economies of density discussed earlier. Smaller markets will have lower traffic volumes, and airlines will generally operate smaller aircraft at lower load factors, increasing costs per RPM and yields. The S-curve effect refers to a phenomenon whereby a dominant carrier’s market share (share of RPM) in a particular origin-destination market tends to be greater than the carrier’s share of capacity (share of ASM). Thus, for example, if United offers 70% of the seats flown between Denver and San Francisco, and Continental flies the remaining 30%, then the S-curve effect says that United’s share of the actual traffic in this market will be greater than 70% and Continental’s will be less than 30%. This translates into an S-shaped relationship between â€Å"share of capacity† and â€Å"market share,† as shown in Figure 2. The S-curve effects stems from two sources. First, an airline with a greater share of capacity in a market is likely to have greater visibility in that market, so passengers are likely to contact it first. Second, an airline with a greater capacity share is likely to have more frequent – and thus more convenient – departures. This, too, works to boost its share of the actual traffic. The S-curve phenomenon makes capacity an important competitive weapon in the rivalry among airlines. An airline with the financial resources to purchase  aircraft and airport gates to achieve a dominant capacity share on key routes is likely to win the fight for market share. This suggests that, in general, it will be very difficult for a small carrier to challenge a dominant carrier at a hub airport, unless the small carrier can achieve significant cost advantages unrelated to scale. The history of competition in the post-deregulation airline industry seems to bear this out. Airline Economics. (2016, Oct 10).

The Efficacy Of Economic Sanctions As Instruments Of Foreign Policy in Essay

The Efficacy Of Economic Sanctions As Instruments Of Foreign Policy in The ase of Iran - Essay Example trument for Foreign Policy Although using of economic sanctions, as an instrument for foreign policy, tends to face various criticisms within the global realm, it can also be implemented by the countries to achieve multiple goals with an intention to strengthen its political, economic and trade relations with other global countries. Conceptually, economic sanctions were generally used by countries in order to obtain better control of its economic sources from being exploited by foreign investors, thereafter making the domestic economy more dependent on the partnered nations. Arguably, it also enables the targeted country to influence stable and sustainable growth in the foreign market. With respect to the implementation of the sanction by numbers of global countries, it has been widely recognised that the sanctions are quite effective in terms of empowering nation’s power of domination and dealing with the negative influences of the particular country(s) (United States General Accounting Office, 1992). In this regard, the major advantageous implications, which can also be classified as the major motivations to countries applying economic sanctions as a tool for foreign policy measures, have been briefly demonstrated in the following discussion. The use of sanctions always tends to obtain adequate facility to the nation for accumulating a stable support in demonstrating authoritative supremacy and differentiating capability of the nation against the sanctioned country(s). Hence, it can also be used as a tool to obtain global power advantages to a substantial extent. Moreover, it also enables the country to uphold international policies through taking adequate measures against the targeted country, regulating controlled trade measures with the imposition of taxation...This research paper aims to to bring adequate insights regarding the efficacies and implications of economic sanctions as an instrument to regulate foreign relationships, taking the example o f Iran in the recent global context. The policy analysis sources in this globalisation era has long been concerned regarding the usage of economic sanctions by the countries with the aim of achieving favourable and more constructive outcomes. Various countries have experienced numbers of disagreements through the implementation of economic sanctions as a measure to control foreign relationships, during the period of 1990s Although using of economic sanctions, as an instrument for foreign policy, tends to face various criticisms within the global realm, it can also be implemented by the countries to achieve multiple goals with an intention to strengthen its political, economic and trade relations with other global countries. Conceptually, economic sanctions were generally used by countries in order to obtain better control of its economic sources from being exploited by foreign investors, thereafter making the domestic economy more dependent on the partnered nations Although the implementation of economic sanctions is effective to protect countries from different external threats, it is also essential for the countries to be supported by a large number of global participants. The example of Iran can be further stated as a major concern which had faced numerous challenges due to the political turmoil with the US.

The Gay Option by Stephanie Fairyington Essay Example | Topics and Well Written Essays - 1000 words

The Gay Option by Stephanie Fairyington - Essay Example For the same sex attractions of an individual, it is incorrect and futile to blame parenting of mother or immediate relatives. None should volunteer to tender him concepts of happiness; none should give opinions after opinions to rob him of his private dignity. Such a gay should remove from his dictionary phrases like â€Å"shattering experience,† â€Å"self-loathing,† etc. The gay’s normal world must run according to his plans; terms and conditions should not apply for his existence with honor. Instead of hide and seek, it is better to deserve and remain contented with what the gay has been blessed with without asking. About the experience undergone by the protagonist Stephanie Fairyington writes, â€Å"It worked. Five years later, my mother continues to talk about my lesbianism as if it were a genetic defect like Down syndrome—a parallel she’s actually drawn—because clearly, in her mind, no one would choose such a detestable and challengin g state of being.† (http://www.utne.com)These are the punch lines and the ultimate philosophy for the gay to live with honor. This is the ideal that a mother can do for her dear child. The second step the author rightly chooses is to let the mother know that the gay has the option on the issue. This awareness in her was the new beginning in the life for the gay. The immediate question is what could be that choice. Many forces of opposition that are waiting in the wings to see the drama of gay’s life will arrive on the stage to express pity, opposition, condemnation, intolerance about attack on the established norms of the society, loss in the societal equilibrium, with the ardent advice to change the decision. Change decision and do what? None has the answer. The actors have left the stage and disappeared behind the curtain. The protagonist was alone again. Back to square one! The homosexual inclination of the gay is one’s natural trait. The physical structure an d mental horizon of the gay is true to the design of the nature that created him thus. Why the nature did this for the gay is one of the many unsolved mysteries of nature. The interventions of the societal leaders about the issues related to the gays needs to be of benevolence and not malevolence. Social reformation and rehabilitation are the easiest words for the philanthropists to pronounce. Solve this practical problem, if you are worthy of the trust of the gays. If the societal leaders and family members are unable to appreciate the complexity of the issue they should not create mental hurdles for the gays. Homosexuality is the fact of life. Accept it, tolerate it, or reject it but it is desirable not to meddle unnecessarily with the gays. What the gay does is of his choice. He does not â€Å"infringe the rights of others.† There are many types of sex-related crimes and a gay is not an individual with criminal tendencies. One can get lots of information from newspaper rep orts, interviews and discussions in the electronic media, articles in the magazines, etc. about the abnormal behavior of the so-called normal individuals of the society. Where do you place the gays in comparison of such individuals who indulge in heinous sex-related criminal activities? Gays choose the option available to them, and by no consideration it is mean, they are just

BHS 328 - Team Building (Mod 3 CBA) Essay Example | Topics and Well Written Essays - 750 words

BHS 328 - Team Building (Mod 3 CBA) - Essay Example nt helps to nurture a culture where every individual is given an equal opportunity regardless of his/her designation, age, gender and race to participate in an organization’s decision making process. In recent years, there has been a growing number of organizations that focus on delegating power to employees to make decisions since it warrants an environment where everyone can give their opinion and this not only enhances the creativity of an individual, it also increases the sense of ownership. In Books4Us, there is a concept of authoritative management which requires that every employee needs to ask his/her manager for making decisions which hampers him/her from taking any risk and thinking out-of-the box. Due to stiff competition, the organization needs innovation ideas to capture the market share but due to low level of empowerment, employees rely on their managers to give them instructions for each task regardless of its complexity and novelty. An Open Book Management culture will encourage employees to study the external environment and leverage the strengths of the organization to avail the opportunities at hand. Moreover, delegating authority to employees helps in building trust between the employee and his superior since the employee senses that he is trusted with the job therefore he strives to his best capability and this results in a higher-level of motivation. Lack of empowerment has resulted in lack of shared vision, mission and goals due to which every employee is pursuing personal goals and focusing on individual achievement rather than the success of Books4us. Increase in the level of authority held by each employee will result in the organization working as a team seeking identical objectives rather than acting as discrete groups. â€Å"What better way to tap into workers brains as well as their brawn than to encourage them to think on the job, to bring to it a greater sense of professionalism and self-motivation and to feel committed to the