Developing Successful Strategic Alliances

Developing Successful Strategic Alliances The traditional relationship between the client, consultants, main contractor, subcontractors and suppliers within the construction industry using a traditional contract is in most cases but not all very contractual and adversarial one Blame Culture which is not productive in a business as it about relationships, where the client and consultants puts all of the risk on to the main contractor who in turn passes it down the line to their supplier chain i.e. Suppliers Subcontractors, due to the nature of the construction industry i.e. large and complex projects that need to be completed to unrealistic time frames, budget, quality, safety expectations, this is the direct opposite and goes against the grain of Strategic Alliances. Gomes-Casseres 2003 p.1213 combines elements of item 1 2 above Alliances are agreements between two or more separate firms that involve ongoing resource contributions from each to create joint value, are incomplete contracts where the terms of the agreement cannot be completely specified and agreed at the outset and joint decision making to manage the business and share value We will be adopting the characteristics of item 3 above in our business plan. Alliances (large and small) have been around in one form or another since the early 1990s, they are used in all different industries across the world and the construction and engineering industry is no exception some notable projects that have been completed around the world using alliances are: Burj Khalifa, Dubai UAE, the worlds tallest building was built by a Joint Venture (type of strategic alliance) by Samsung Engineering Construction (South Korea), Besix (Belgium) and Arabtec from UAE; The Dubai Mall, Dubai, UAE, the worlds largest retail development was built by a Joint Venture Partnership (type of strategic alliance) by Dutco Balfour Beatty (the author used to work for this company) Al Ghandi and Consolidated Contractors International Company (DBB/AG and CCC); and Gateway Bridge Duplication Upgrade Project, Brisbane, Australia, was built by Leighton Contractors Abigroup Joint Venture at a cost of AUS$1.88b it consisted of the duplication of Gateway Bridge and 20km upgrading of Gateway Motorway, including the Gateway Deviation. This business plan has be developed using the principles of leading alliances academics, experts practitioners in their field in particular Gomes-Casseres work to develop best practices that work, while recognising that each alliance is unique and there is no one size fits all approach. This document is a work in progress and we would be working with the potential partners after the business alliance strategy has been established by MCS Constructions, to jointly develop the alliance operating plan, this will construct a solid foundation for a mutually beneficial relationship. The topic of this report is Defining a Business Plan for a Potential Strategic Alliance, there are many possible interpretations of this topic as strategic alliances have been in existence since the early 90s, are used in across a variety of different industries, companies both large and small, on a domestic and international level which can range from very simple to the complex. Drawing upon my own life/work experiences, knowledge, skills and qualifications in the construction and engineering industry both local and international over the last 10 years plus (refer CV in Appendix ?), and considering I do not have access to relevant information on an existing alliance, I will be looking at the feasibility of developing a potential strategic alliance and defining a business plan which will include but not limited to the following areas as outlined in the elective assignment specification (refer appendix ?): This is drawn on the extensive life/work experiences, knowledge, skills and qualifications gained by the owner/director Mr. Matthew C. Smith in the construction and engineering industry both local and international over the last 10 years plus (refer CV in Appendix ?), which is evident in the business today. We are exploring the feasibility of setting up a Strategic Alliance with other trusted companies within the industry, to provide its clients (Public Private) with single-source of responsibility, a one-stop shop to complete its projects of various sizes and complexity on time, to budget, quality and safety that exceeds the clients expectations and objectives. In order to do this a strategic alliance would provide a vehicle with capital/finance, additional knowledge, skills, experiences, expertise from the potential partner companies (Consultants, Major Preferred Suppliers and Major Preferred Subcontractors) both local international, resources, connections, capabilities and competencies, where the clients projects require a broad range of expertise, some of which we may not have in-house. We would be looking at developing this alliance capability to enter the overseas and remote projects in developing and third world countries in particular Middle East / Africa / Asia etc. We would also welcome alliances closer to home (Australia) when needed and depending on our clients requirements. Is to provide its clients (Public Private) with a single-source of responsibility, a one-stop shop to complete its projects of various sizes and complexity on time, to budget, quality and safety that exceeds the clients expectations and objectives in an economic, efficient, ethical, environmental sustainable way. At this stage of the business plan we have not identified any particular companies as potential partner organisations but MCS Constructions would be looking to undertake a strategic alliance that consists of both local and international firms (large or small) within the construction and engineering industry supply chain both up and down the line. The rationale for MCS Constructions to partner with the supply chain (as outlined above) both up and down the line (forward and backward integration) for it to deliver the alliances clients within the construction and engineering industry, projects that are on time, to budget, quality and safety and exceeds the clients expectations and objectives. We offer our potential partners our core competency of Technological Know-How and Management Know-How within our chosen area of knowledge, skills, experiences and expertise in commercial construction i.e. new build, fit-out, refurbishment and heritage listed work. We would be looking for a potential partner with which would complement us and provide capital/financing, additional resources, capabilities, competences, skills, experiences, knowledge, connections, expertise etc. The anticipated benefits would be that MCS Constructions would be able to grow and expand its business overseas into new markets with the additional capital/financing, resources, capabilities, skills, experiences and expertise in their chosen area i.e. Consultancy, Major Preferred Suppliers and Major Preferred Subcontractors, to share risk/reward (Gain/Pain Share) and am opportunity to learn. Now we have made the decision to enter a strategic alliance, we have many choices to be made that relate to the design of the alliance, scope, goals, management processes including legal, tax, insurances, financing, structure etc. This will be outlined in a formal alliance agreement (refer to appendix ? for a sample copy). In relation to legal, tax and insurances, performance bonds/guarantees, profit etc. (for the purposes of this report is outside its scope) this will depend on the local jurisdiction that the strategic alliance is under i.e. Country that the alliance is operating in for example Dubai, UAE it is a requirement that international companies setup a joint venture to partner with a local company sponsor where 51% will been owned by the local company and 49% by the international company. The author used to work for Dutco Balfour Beatty LLC in Dubai, UAE which was 51% owned by the local company Dutco and 49% owned by Balfour Beatty the international company. On a separate note the author used to work for Balfour Beatty in the UK. There are three major forms of strategic alliances Joint Venture, Equity Strategic Alliance and Non-Equity Strategic Alliances, the final decision on the form will be negotiated between all parties to their mutual benefit, but it is envisaged that we will use a Non-Equity Strategic Alliance (refer to definitions section) which over time may develop into a Joint Venture. Stage 1: Utilise the alliance partners specialty in their chosen area, we will allocate tasks and responsibilities to each partner on the basis of what they do best, we will tender and bid for constructions and engineering projects in various target markets/segments, tendering and bidding for projects requires capital, resources, time, etc., if we are not successful at winning work we will continue to look for other opportunities, if we are successful at winning work then we will move into Stage 2; Stage 2: Once we have successfully won and been awarded the project/contract from the client we will enter the Project Stage where we will utilise the alliance partners specialty in their chosen area, we will allocate tasks and responsibilities to each partner on the basis of what they do best, the project stage will depending on the type, size, complexity of the project be broken down into various stages which will typically following a traditional matrix: Alliances Specific Strategy and Alliances Analysis Selection this will be undertaken be the Senior Management of MCS Constructions championed by the owner / director Mr. Matthew C. Smith but will including other internal resources HRM, Accounting / Finance / Legal and Operational Managers, as well as external consultants when required and needed such as Facilitator, Lawyer, Investment Bank, Strategic Alliance Management Consultants i.e. Vantage Partners to provide their expertise as this is the first strategic alliance for MCS Constructions. Alliance Value-Creating Negotiations, Operational Planning and Structuring this will be continued by the owner / director Mr. Matthew C. Smith and the senior management of the preferred potential partner once a MOUP has been enacted by all parties including a non-disclosure confidentiality agreement, this is to continue to build the relational capital and trust between the parties moving forward. According to (Gomes-Casseres 2003 p. 120 64% of poor or damaged relationships between firms are the foremost cause of alliance failure.

Marketing Segmentation and Product Positioning

Marketing Segmentation and Product Positioning MKT 500-Marketing Management Strayer University April 27, 2011 In a rush to produce more and more crops to satisfy growing demand, producers have resort to using a lethal cocktail of pesticides to control disease and insect attack. Do you really know what goes into your food? This is why you need to be informed of the advantages of organic food. The quality of food has definitely gone down since the Second World War. For instance, the levels of vitamin C in today’s fruit bear no resemblance to the levels found in wartime fruit. Organic food is known to contain 50% more nutrients, minerals and vitamins than produce that has been intensively farmed. You will have to eat more fruit nowadays to make up the deficiency, but unfortunately that means eating more chemicals, more detrimental affects on your health eating something that should be good for all. Also don’t forget about the cocktail of anti-biotic and hormones that cattle and poultry are force fed. What happens to those chemicals when the animal dies? Digested and stored in human bodies is the answer. If you are as worried as I am about the health of your family then you need to seriously consider converting your family to the organic lifestyle. Organic Food Store SWOT Analysis Strengths Organic food is richer in Vitamins, Minerals, and Fiber and retains the level of nutrients for much longer. You will have more energy through consuming low levels of toxics and chemicals that slow your body down. Weaknesses People are unaware about organic food There is a rigid mentality of people to adapt to the change in their lifestyle. Opportunities Food habits are changing Standard of living is improving Threats Cost – Organic foods are more expensive than other food items Established competitors: Pizza Hut and McDonalds are creating a threat for Organics Fashion of junk food – Young consumers believe in fashion of junk food by not realizing the side effects it causes later

Toy Evaluation

Toy Evaluation Aim: My aim for this toy evaluation is to find out as much information for each toy. Name: Baby Matt Age Range: 0 to 9 months Name: Baby Matt Age Range: 0 to 9 months Skills Learnt: * Colour recoinision * Palmer grasp * Pincer grasp * Rolloing over * Shapes/ animal reconigtion Skills Learnt: * Colour recoinision * Palmer grasp * Pincer grasp * Rolloing over * Shapes/ animal reconigtion With 3 detachable soft toys and a removable arch, perfect for entertaining your baby. The Blossom Farm 2 in 1 Baby Gym is a delightful cushioned play centre for your new baby.It's two in one – first, a baby gym with soft-toy mobile arch, and second, a large playmat. It's also great for using inside your baby's cot, so they can explore as they rest. The three detachable soft toys – Clover the cow, Cloppy the pony, and two bright fabric flowers – jingle, crinkle, squeak, rattle and include a baby-safe mirror, providing plenty of interest for your newborn. Quick facts: †¢Baby gym converts to playmat †¢3 detachable soft toys with textures and sounds †¢Removable arch †¢Great for lying, sitting, kicking and stretching †¢Baby-safe mirror Great for your child’s development:The Blossom Farm 2 in 1 Baby Gym is a lovely, cosy place for your baby to relax – lying, sitting, kicking and stretching. The different colours, textures and sounds of the 3 detachable toys will keep your baby entertained and encourage them to discover their hands and senses. As your baby grows, the mat is great for tummy time play and gives them the space to roll over and discover what's around them. With 3 detachable soft toys and a removable arch, perfect for entertaining your baby. The Blossom Farm 2 in 1 Baby Gym is a delightful cushioned play centre for your new baby.It's two in one – first, a baby gym with soft-toy mobile arch, and second, a large playmat. It's also great for using inside your baby's cot, so they can explore as the y rest. The three detachable soft toys – Clover the cow, Cloppy the pony, and two bright fabric flowers – jingle, crinkle, squeak, rattle and include a baby-safe mirror, providing plenty of interest for your newborn. Quick facts: †¢Baby gym converts to playmat †¢3 detachable soft toys with textures and sounds †¢Removable arch †¢Great for lying, sitting, kicking and stretching †¢Baby-safe mirror Great for your child’s development:The Blossom Farm 2 in 1 Baby Gym is a lovely, cosy place for your baby to relax – lying, sitting, kicking and stretching. The different colours, textures and sounds of the 3 detachable toys will keep your baby entertained and encourage them to discover their hands and senses. As your baby grows, the mat is great for tummy time play and gives them the space to roll over and discover what's around them. Risk assessment Risk assessment Conclusion I really Like this toy and I think that it will be perfect to u se in my first Visit seeing as I had the lowest Age group range. I think Alice will enjoy this activity a lot.Its quite a P. I. L. E. S rounded Toy that will show off her abilities to me so I can see how far she has developed. Conclusion I really Like this toy and I think that it will be perfect to use in my first Visit seeing as I had the lowest Age group range. I think Alice will enjoy this activity a lot. Its quite a P. I. L. E. S rounded Toy that will show off her abilities to me so I can see how far she has developed. Toy Evaluation Aim: My aim for this toy evaluation is to find out as much information for each toy. Name: V tech Soft Singing phone Age Range: 3 months to 5 years Name: V tech Soft Singing phoneAge Range: 3 months to 5 years Skills Learnt * Cooing and babbling * Using a telephone * Using their voice * Imagination * Simulates the ears Skills Learnt * Cooing and babbling * Using a telephone * Using their voice * Imagination * Simulates the ears Risk Assesment Risk A ssesment Soft pink fabric phone with non-breakable mirror, rolling beads, flashing lights, textured material and chunky buttons. Features animal sound effects and songs. Soft pink fabric phone with non-breakable mirror, rolling beads, flashing lights, textured material and chunky buttons. Features animal sound effects and songs.Conclusion I think That Alice Will really enjoy this toy because it makes a lot of noises and will be very interesting for her to play with. Also it’s not Hard all the way round so if she lets go of it she won’t hurt herself. This toy is mainly focusing on Alice’s intellectual and language development. Although it does focus on her fine motor skills also. Conclusion I think That Alice Will really enjoy this toy because it makes a lot of noises and will be very interesting for her to play with. Also it’s not Hard all the way round so if she lets go of it she won’t hurt herself.This toy is mainly focusing on Alice’s int ellectual and language development. Although it does focus on her fine motor skills also. Toy Evaluation Aim: My aim for this toy evaluation is to find out as much information for each toy. Name: V-tech Baby walker Age Range: from 6 months Name: V-tech Baby walker Age Range: from 6 months Skills learnt: * Physical Development * Intellectual development * Creativity * Instills confidence * Sound/ noise recognition * Noise and letter knowledge Skills learnt: * Physical Development * Intellectual development * Creativity * Instills confidence * Sound/ noise recognition Noise and letter knowledge Sturdy design to support and encourage your baby’s first steps. Features a detachable learning centre packed with activities. Shapes and light-up musical keys introduce letters, words, numbers, animals, colours, sing-along songs and melodies. Moving butterfly, discs and rollers develop manipulative skills plus a removable rattling phone is great for role-play. Textured wheels, easy grip handle and durable design ensure baby gets ample support for taking those first steps. Assembles very easily and can be stored away in small spaces. Quick facts: †¢Best selling baby walker. Detachable learning centre introduces letters, words, numbers, shapes, animals and colours. †¢Light-up music buttons and melodies stimulate senses. †¢Moving butterfly, puppy button, discs and roller develop manipulative skills. †¢Removable rattling phone is great for role-play. †¢Develops walking motor skills and hand-eye co-ordination. Great for your child's development. Sturdy design to support and encourage your baby’s first steps. Features a detachable learning centre packed with activities. Shapes and light-up musical keys introduce letters, words, numbers, animals, colours, sing-along songs and melodies.Moving butterfly, discs and rollers develop manipulative skills plus a removable rattling phone is great for role-play. Textured wheels, easy grip handle and durable design ensure baby gets ample support for taking those first steps. Assembles very easily and can be stored away in small spaces. Quick facts: †¢Best selling baby walker. †¢Detachable learning centre introduces letters, words, numbers, shapes, animals and colours. †¢Light-up music buttons and melodies stimulate senses. †¢Moving butterfly, puppy button, discs and roller develop manipulative skills. †¢Removable rattling phone is great for role-play. Develops walking motor skills and hand-eye co-ordination. Great for your child's development. Risk assessment: Risk assessment: Conclusion This toy will really show me her physical skills and help develop her walking. I think this toy will have to be the third or fourth toy that I do in my visits because of the higher age range. Conclusion This toy will really show me her physical skills and help develop her walking. I think this toy will have to be the third or fourth toy that I do in my visits because of the higher age range. Toy Evaluation Name : Wooden Toddle Truck Age Range: wooden blocks 3 months+Push along cart: 9 months+ Name : Wooden Toddle Truck Age Range: wooden blocks 3 months+ Push along cart: 9 months+ Aim: My aim for this toy evaluation is to find out as much information for each toy. Skills learnt: The Wooden Toddle Truck helps your young child feel confident about standing up and trying to walk. Your child can hold on to the handle, and feel safe about standing up and walking along. This classic wooden walker also comes with blocks that your child can play and build with. Building with blocks gives your child hands-on experience of shapes and also helps them develop good fine motor skills.The Wooden Toddle Truck is a great toy for helping your baby become a toddler, and for helping your toddler become a really confident walker. Skills learnt: The Wooden Toddle Truck helps your young child feel confident about standing up and trying to walk. Your child can hold on to t he handle, and feel safe about standing up and walking along. This classic wooden walker also comes with blocks that your child can play and build with. Building with blocks gives your child hands-on experience of shapes and also helps them develop good fine motor skills.The Wooden Toddle Truck is a great toy for helping your baby become a toddler, and for helping your toddler become a really confident walker. The Wooden Toddle Truck is a classic walker with secure non-slip wheels. It comes with 24 bricks, and helps your child take their first steps. The Wooden Toddle Truck is a classic wooden walker that your young child can enjoy pulling up on. The Wooden Toddle Truck has a sturdy handle so your child can enjoy a secure grip. When your child is ready to take their first steps, they can push the sturdy Wooden Toddle Truck along for support.It has non-slip wheels and the truck comes with 24 blocks, which add stability to the walker. Your toddler can also enjoy transporting, building and playing with the blocks. The Wooden Toddle Truck is a timeless toy which helps your young child to pull up and start to walk in confidence. As they grow, your child can enjoy pushing the truck around wherever they like, and they can use it to move their favourite toys around too. Quick facts: †¢Wooden Toddle Truck: a classic wooden walker †¢Great for building walking confidence †¢24 shaped and coloured blocks Fun for toddlers to push around The Wooden Toddle Truck is a classic walker with secure non-slip wheels. It comes with 24 bricks, and helps your child take their first steps. The Wooden Toddle Truck is a classic wooden walker that your young child can enjoy pulling up on. The Wooden Toddle Truck has a sturdy handle so your child can enjoy a secure grip. When your child is ready to take their first steps, they can push the sturdy Wooden Toddle Truck along for support. It has non-slip wheels and the truck comes with 24 blocks, which add stability to the walker .Your toddler can also enjoy transporting, building and playing with the blocks. The Wooden Toddle Truck is a timeless toy which helps your young child to pull up and start to walk in confidence. As they grow, your child can enjoy pushing the truck around wherever they like, and they can use it to move their favourite toys around too. Quick facts: †¢Wooden Toddle Truck: a classic wooden walker †¢Great for building walking confidence †¢24 shaped and coloured blocks †¢Fun for toddlers to push around Conclusion: I think this toy would be really good as my final visit.It will show me her Physical development both gross motor skills (walking) and fine motor skills (pointing at blocks) it will also show me here creativity by stacking them up. It will also show me some of her social skills like playing co-operatively and sharing. Conclusion: I think this toy would be really good as my final visit. It will show me her Physical development both gross motor skills (walking ) and fine motor skills (pointing at blocks) it will also show me here creativity by stacking them up. It will also show me some of her social skills like playing co-operatively and sharing. Toy Evaluation 1. I did my research on toys at Target. What I discovered was that mostly all gender-neutral toys have to do with educational toys and toys for children whose mindset does not see that’s a girl or boy toy. All the gender-neutral toys were colorful, but mostly used green, blue, yellow, and red colors, thus making targeting boys and girls. What I found in the masculine toy section was that mostly all the toys were blue, black, or dark colors. Lots of toys promoted violence like the Nerf guns and Power Ranger toys with their swords and killing the bad guys.They also promoted sports balls and cars only in the boy section when girls can play with these as well. What I found interesting is that they had Jake and the Neverland Pirates toys and in that show they have a girl pirate, but her toy was nowhere to be found. They had dress up things for boys, but they only involved mostly hand accessories, like The Hulk hands and Wreck it Ralph hands, which are used to hit people. Lego toys were mostly all cars, airplanes, and superheroes they did not involve any kind of home making.Another thing the boy section had was a â€Å"boy dollhouse†, which was a joker jail for batman to lock up the joker. I like how they make is seems as if it is not a dollhouse. Now the feminine toy section was so bright and pink, no other colors were really used, but pink. Mostly all the toys in this section promoted home making due to the fact that all the baby dolls had accessories such as strollers, swing, carriers, high chair, play pen, bottles, play food. The play food was even in a pink box. Dress up clothes involved full outfits only dresses, crowns, jewelry, high heels, and hairpieces.The Lego toys all involved pink colors and houses with moms, babies, and dad’s hardly any other variation of play. I also found the Bratz dolls to be very interesting and very grown up for little girls. The Bratz dolls were wearing very sexy clothing like very short skirts, shirts, high h eels, and make-up. They are very sexy and glamorous almost trying to have girls grow up fast. I feel as if these dolls should be in a more grown up section for girls. 2. The toys that promoted violence were only in the masculine/boy section at Target.I would say about 90% of the toys that promoted violence had to do with a movie or T. V. show. The movies would be The Hulk, Spiderman, Wreck it Ralph, Iron Man, and Batman. The shows that promoted violence were Power Rangers, Ninjago, and Teenage Mutant Ninja Turtles. The other 10% would be Nerf guns or just guns in general that boys can play with to shoot each other. I find this very disturbing given the fact that there have been so many shootings in school and it has been found that boys tend to shoot up schools more than a girl would, thus you would think they would try to pull them from the toy section.Also, I know a lot of this has to do with money and that is why they do not pull it from the shelves because boys want to be superh eroes and do everything they see on TV. I also do not understand why they do not promote these kinds of toys to girls because girls enjoy these things as well. 3. The feminine toys that promote pro-social behavior would be the baby dolls and the accessories that come with the toy. These dolls promote girls to act as mothers and take care of the baby doll as a mother would take care of their children.This shows girls how to be caretakers. The dress up clothes also promotes pro-social behavior by showing them that girls need to be dressed pretty and look and act like princess, thus girls are prompted to always look there best. In the masculine toy section the sports balls promote pro social behavior by telling boys that they have to know how to play sports and be active. The guns promote violence, showing boys that they have to be tough and protect themselves. I feel as if pro social behavior is used toward feminine toys more than boy toys. 4.At target what I encountered was that all the gender-neutral toys were mixed in with the infant and toddler toys. The gender-neutral section was followed by the very bright and pink feminine toy section, which is filled with rows of dolls, princesses, girly animals, dress up clothes, and kitchen supplies. After the feminine toy section the masculine toy section followed which were displayed in three rows of blue and dark colors filled with action figures. After the boy toy section was done it lead right to the Lego’s, Bikes, and sports section.I find this interesting because the sections that follow the boy section are still considered masculine products. 5. I feel as if the toy sections do not promote a variety of cultures and ethnicities. The girl section promotes Hispanic and African Americans because they have Dora dolls, and African American dolls. The boy section is mostly action figures and I do not think that boys relate action figures to their culture or ethnicity at a young age. These toy sections promote g ender more than cultures and ethnicities.The toy sections do promote stereotypes because mostly all the girl section is pink and home making things, indicating that girls should like the color pink and should learn at a young age how to be a homemaker/mother. The stereotype for boys is very bad because they promote violence with the action figures and guns. They do not promote any type of responsibility for boys like they do for girls with the home making toy items. Since, the toy sections are gender identified, they should promote responsibilities for boys such as cutting the grass, building things, working on cars.These are all stereotypes, but at least they can learn responsibility and it is like the home making things that are promoted to the girls. 6. Mostly all the toys I observed were for ages 5-7 years of age. I do not agree with this age limit when it comes to the Nerf guns and swords. I feel that children should not be able to play with guns at such a young age when there brain has not fully developed because they do not fully understand what a gun can do and how they can harm themselves and others.I think guns should come with warning labels and parents should teach their kids about them when they can fully understand what they can do. Another toy I did not agree with was the Bratz doll. They were for ages 5-7 and I feel they put that age because at 5 years of age you know not to put things in your mouth rather than putting an age on it for girls that are developed enough to know that the dolls are make believe and you should not want to be or dress like them. These dolls are very sexy, wear lots of make-up, and seem like they are rebellious.I feel these dolls are for older girls because their brains are more developed and they would know what is right for them and not want to be a follower, thus these dolls should either be changed or given a warning label for parents because they are very sexy to me. 7. What I learned about children’s toys in doing this assignment is that the ages on some of these toys should be changed due to brain development not if a child can choke or play correctly with the toy. As a mother I would not let my daughter buy certain toys and I will not allow my son to play with guns.I tend to buy gender-neutral toys so that way once my son is born he can play with his sister. Another thing I learned is that there is not much at Target involving gender-neutral toys, maybe I should start a gender-neutral toy line and see how that goes. All in all I feel toy lines are in it for the money they want to get children’s attention and take into consideration what a parent will buy their child, so in order to change this people in a society need to change in order for toy line makers to change as well.

Debt Equity For Funds Essay Example Pdf - Free Essay Example

Sample details Pages: 5 Words: 1617 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? The generation of fund is one of the most important decisions for firms. When the firm is unable to generate enough internal funds to invest in various projects then firm take a decision to issue debt or equity for funds. The objective of study is to determine the financial characteristics that lead firms to choose Equity or Debt. Don’t waste time! Our writers will create an original "Debt Equity For Funds Essay Example Pdf" essay for you Create order This study helps to predict the choice of firms for funds through the Multiple Discriminant Analysis on the basis of their distinctive financial characteristics. In this study financial characteristics like Leverage, Profitability, Liquidity, Market Price of common stock, Firm Size, Dividend Policy, Sales growth and variability and variables relate to specific firms ratios with Industry norms (average) will be analyzed to predict the future firms decision for funds. INTRODUCTION The selection of debt or equity is basic issue for the financial management of company. The decision of firms to issue debt or equity might depend on the following variable like leverage, liquidity, profitability, dividends market price, firm size, sales growth and variability. Generally it is predicted that company or firms with low leverage ratios as compare to industry average tend to issue debt rather than equity. In the same way company will issue debt rather than equity if it possesses the higher profitability and liquidity ratios. There is no any specific rule to conclude that if the firm is issuing debt or equity having low or high payout ratios but more possibility is that if the firm issues equity under certain characteristics its payout earnings will be lesser as compare to those firms which are issuing debt. The price earnings ratio of debt issuing firms are lesser than of equity issuing firms, likewise larger the firm size issues debt and lower firm size issue equit y. The firms having high sales growth and variability prefer to issue equity rather than issuing debt( John D. Martin and David F. Scott, Jr. 1974). In this study only the sample of firms is taken which are issuing debt or equity in the financial year 2008 and firms are used to analyze the distinctive financial characteristics. In this study the dependent variable is choice of debt or equity and several independent variables are Leverage, Profitability, Liquidity, Market Price of common stock, Firm Size, Dividend Policy, Sales growth and variability and variables relate to specific firms ratios with Industry norms (average). With the help of financial characteristics (independent variables) of Company the Choice for funds will be predicted by using Multiple Discriminant Analysis technique. Literature Review Main Article- A Discriminant Analysis of the Corporate Debt-Equity Decision This study was conducted in USA (Standard and Poors Standard Corporation Descriptions), by Martin and Scott, in 1971 to determine the general financial conditions actively affecting the debt-equity decision of industrial firms. This study conducted during the time period between 1971 and 1972, total one hundred and twelve firms qualified for this study out of one hundred and twelve firms sixty two firms were those which were issuing bond and remaining fifty firms were issuing equity. The hypothesis here is that companies choosing to issue debt instead of common equity (or vice-versa) possess distinctive financial characteristics. Discriminant analysis methodology used for the prediction of the Choice of firms for issuing debt or equity. A linear discriminant function is used to distinguish between two types of firms on the basis of their financial characteristics which are issuing debt or equity. Capital structure is the combination of debt and equity used in the firms operations. In this study the dependent variable is Choice and the other independent variables used to predict the choice for debt or equity are Leverage, Profitability, Liquidity, Market Price of common stock, Firm Size, Dividend Policy, Sales growth and variability and variables relate to specific firms ratios with Industry norms (average). The empirical findings of this study are the group means analysis of the above variables is showing the equity issue firms are smaller on balance than the firms issuing debt and those firms which are issuing common stock during test period displayed greater profit ability, interest coverage ratios and price earnings ratios. Similarly the firms which are issuing equity maintained lower dividend payout rates and showing higher debt ratio than debt issuing firms. Firms with larger asset bases and lower price earnings ratio have tendency to issue debt. Article-2 The Choice between Equity and Debt: An Empirical Study This study was conducted in UK by Marsh, to find how companies actually select between financing instruments at a given point in time. The sample for this study is taken from UK companies over the period from 1959-70 and total sample of 748 firms issue equity and debt, the holdout sample of one hundred and ten firms were taken from the year 1971 to 1974. The hypothesis is a companys choice of financing instrument is a function of the difference between its current and target debt ratios. Logistic analysis and descriptive model of the choice between equity and long term debt is used in this study. The variables which were used long term debt, short term debt, Market Price of Common Stock, asset composition, Firm Size, payout ratios, Return on investment. The results of this study are as First, it exhibits that companies are heavily influenced by market conditions and the past history of security prices in choosing between equity and debt. Second, this study provides proof that compa nies do appear to make their choice of financing instrument as though they had target levels in mind for both the long term debt ratio, and the ratio of short term to total debt. Finally, the results are consistent with the notion that these target levels are themselves functions of company size, bankruptcy risk, and asset composition. Article-3 The Debt-Equity Choice This study was conducted in UK by Hovakimian, Opler, and Titman. The sample for this study is taken from UK companies over the period from 1979 to 1997 and total sample of 39387 taken and equity issuance and repurchase are identified from the statement as change in cash flows reported in compustat. The hypothesis tests (1) Firms tend to move toward a Target Debt ratio when They either raise new Capital or retire or repurchase existing capital. (2) Leverage deficit will be related to the firms issuing choices as long as there is a tendency for firms to move toward their target debt ratio. (3) Firms with high NOLC (net operating loss carry forward) have low target leverage. Regression analysis is used in this study. The variables used (leverage) target debt ratio, Market Price of Common Stock, NOLC (net operating loss carry forward), ROA, Ret, and M/B. The results of this study since observed debt ratios are Likely to deviate from the optimums suggested by these static models. Furthe rmore the study suggest that the past profits are an important predictor of observed debt ratios firm often make financing and repurchase decisions that offset these earnings-driven changes in their capital structures. Article-4 Investment, Capital Structure, and Complementarities between Debt and New Equity This study was conducted in UK by Stenbacka, and Tombak to demonstrate theoretically and empirically the important interaction between different instrument of external financing and impact of these interactions on the investment of financially constrained firms. The sample for this study is taken from 3119 Publicly Traded manufacturing and telecommunications corporations from 1982-1992. The Propositions are (1) when restricted to debt as the only instrument for external finance, debt-financed investment is an increasing and concave function of the firms net worth with a positive intercept. (2) When restricted to new equity as the only instrument for external Financing, the firms equity-financed investment is an increasing and concave function of internal funds. (3) There are complementarities between new equity and debt as instruments of external financing. These complementarities are functions of the firms incumbent equity. Furthermore, the product of these complementarities (( dD**/dK) x (dK**/dD)) is less than one. The variables which were used Long term debt, retained earnings, Common stock ranking, interest rates, Sales of Common and preferred Stock. The results of this study are in the presence of capital market imperfections, the complementarities between debt and new equity as instruments of external finance are particularly important for small firms facing severe financial constraints in relationship to their available investment projects. Finally it is concluded that policies enhancing the exploitation of complementarities will be more significant with the Higher the degree of imperfections prevailing in the Capital market. Article-5 The Determinants of Capital Structure Choice This study was conducted in USA, in 1988 by Titman and Wessels to enhance the empirical work on capital structure theory in different ways. The data for the firms is taken from Annual compustat industrial files and U.S department of Labor Bureau of Labor Statistics. The variables included in the sample for the study were analyzed in different time periods of 1974 to 1982 and in these period total 469 firms were analyzed. The hypothesis here is that significant coefficient estimates for either the market value or book value equations are consistent with debt ratios being chosen randomly. Factor analytic technique is used for this study. The variables used in this study are Collateral Value of Assets, Non-Debt Tax Shields, Growth, Uniqueness, Industry Classification, Size, Volatility, and Profitability. The firms with unique or specialized products posses low debt ratios and as compare to large firms the small firms use more short term loans. Methodology Hypothesis: The Distinctive Financial Characteristics have significant impact to choose the Debt instead of Equity or to choose Equity instead of Debt. Technique: Multiple Discriminant Analysis Sample: All textile industry firms which are only borrowing long-term debt or issuing equity in 2008. The 70% of the sample will be used for prediction and the remaining 30% will be holdout sample and will also be used for prediction of choice of decision.