Enron Corporation Essay Example for Free

Enron Corporation Essay I  Ã‚   The Beginning When Enron Corporation declared a Chapter 11 bankruptcy in December 2001, it left the public especially its investors and stockholders reeling from such financial scandal and collapse.   Enron had allegedly overstated its profits by $586 million since 1997 in order to protect the firm’s balance sheet and practiced insider trading as well fraud and conspiracy. Enron had been the seventh largest company in the United States and had been one of the largest financial contributors to the Presidential elections, especially the Bush family. To the outside world, Enron portrayed a picture of success.   However, upon closure inspection on the inside, Enron was on the brink of collapse. When Enron’s stock price hit its highest at $90, the executives who allegedly knew of the offshore accounts of Enron started selling their respective shares and to encouraged the public to continue buying the said stocks.   However, the executives knew that the stock prices would not increase anymore but still reassured the public and its investors that the prices of stock would reach a high $130-140 per share. By August 2001, Enron’s stock prices had dropped from $90 to a measly $42. It became evident that the company had fraudulently induced and fooled the public, investors and stockholders to buying the company’s stocks and shares. Amidst all these, Enron founder and former chairman Kenneth Lay continued to reassure the public to remain calm, and asked the investors to buy the company’s shares as the company will regain its profits in the succeeding months. Nonetheless, in October of 2001, the stocks plunged to $15 but the investors saw this as an opportunity to buy Enron stocks at such low prices. But the truth about the company’s financial standing became public and the stock price finally hit rock bottom at $1 per share. II   Basis of the Charges Stockholders and investors gathered and instituted a class-action suit against Enron and its officers in order to recover the millions of investment they made on Enron as result of the false representation and fraud by the company. Enron top executives specifically its Chief Executive Officers, Kenneth Lay and Jeffrey Skilling were charged and convicted with the collapse of the energy giant. Kenneth Lay faced seven counts of fraud and conspiracy while Skilling faced 31 counts of fraud, conspiracy, insider trading and lying to auditors about Enron’s financial position. In 1987, Enron auditors found out a billion-dollar oil trading scandal in its New York offices.   Traders had been engaged in this kind of practice – falsifying transactions in order to boost their volume and profit thereby fattening their bonuses as well. Although CEO Kenneth Lay knew of this, he did not fire the traders nor contacted the authorities in order to cover up their problems. But this incident did not deter the traders and six months later, competitors began to grow suspicious because if word got out, Enron’s trading partners could have demanded that the company cover its positions with cash, which the company did not have (Fowler).   Thus, the traders were fired and charged but not until they were able to transfer million of dollars into their personal accounts.   Enron for its part was able to get away by bluffing the market and reported $85 million in loss but sources claim that the loss totalled to at least $135 million. CEO Jeffrey Skilling, who joined Enron in 1990, did not care much about the expenses incurred by the company as long as the margins looked good.   He was also more concerned with the revenues increases and widening profit margins instead of the cash flows which was practiced by his predecessor. So enamoured were the top executives in increasing business profit that when a deal failed or fell apart, more effort was placed into hiding the consequences instead of rectifying and owning up to the problem.   After taking over as chief operating officer, he renewed the almost non-existent post of chief financial officer and delegated many of the management responsibilities. In theory, Enron had mechanisms that would assess risk and accurately report financial numbers. These mechanisms required that deals should be strictly analyzed which included review by the legal department of the originating unit, the corporate legal department, chief risk officer and chief accounting officer.   However, due to the insidious practice of the company, auditors and accountants were bullied to over ride the system and departments were able to determine the total value of their proposals by manipulating the long-term price of whatever product was sold or bought.   The company also used a â€Å"mark-to-market† accounting system pushed by Skilling which allows a company to report as current revenue the total value of a deal over its projected lifetime (Fowler). This system made earning appear good which in turn pumped up the stock prices and increased the value of stocks which executives received as bonuses. III Trial As the stunned investors witnessed Enron’s stock prices plunged, the government began a massive crackdown on the executives who were responsible for the collapse of the company, and would end up in the conclusion of convincing and proving to the jury that Lay and Skilling, the two top executives of the company, where guilty of massive fraud and were thus guilty. Government prosecutors were at first overwhelmed with the girth of the corporate fraud.   Nevertheless, they began to take measures to respond to these kinds of crimes and a barrage of criminal and civil investigations and prosecutions began to surface.   Thus, in 2002, the Presidential Corporate Fraud Task Force filed criminal charges against more than 900 defendants, of which 60 are chief executive or president level and successfully prosecuted or convicted 500 of them. The case against Lay and Skilling were heard by US District Judge Sim Lake and lasted nearly four months while the jury deliberated for six days.   The defense counsel initially attempted to persuade the judge to move the trial away from Houston, Enron’s hometown as they were afraid that the jury might be influenced by anger due to the resulting loss of jobs and money and would see them as a way of revenge. Kenneth Lay faced seven counts of fraud and conspiracy fraud and conspiracy while Skilling on the other hand, faced 31 counts of fraud, conspiracy, insider trading and lying to auditors about Enron’s financial position.   Although both asserted their innocence of the charges against them, they were convicted for a total of 29 criminal counts as well as conspiracy to hide the failing health of the company by selling boosterich optimism to Wall Street and the public (MSNBC). Lay, who was convicted to 6 counts of conspiracy, securities and wire fraud in the corporate trial and 4 counts on separate personal banking trial, surrendered his passport and posted a $5 million bond secured by the family.   His sentence also carried a maximum penalty of 45 years in prison for the corporate trial while 120 years in personal trial respectively.   Ã‚  Skilling on the other hand, was convicted by 19 counts out of the 28 charged as well as one count of insider trading while being acquitted with the remaining charges. The charges against   these Enron top executives prospered as other executives turned the table and plead guilty in their respective charges in order to receive lower sentences than that prescribed.   Among the former employees who testified against Lay and Skilling was Ben Glisan who is now serving a 5-year prison sentence after pleading guilty to a charge of conspiracy.   According to Glisan, both Lay and Skilling knew that the company was in deep financial trouble but tried to hide it instead. Ultimately, the jury rejected Skilling’s defense that no fraud happened at Enron save for those committed by a number of executives skimming millions in secret side deals, while bad publicity and poor market confidence resulted in the collapse of the energy giant. III. Effects of the Enron Collapse As the jurors found that these once-wealthy and powerful executives repeatedly lied to cover up the real position of the company by covering up accounting and auditing failures which eventually led to its collapse in 2001, the left a devastating effect in the business world as well as the lives of the investors and shareholders.   The demise of Enron wiped out more than $60 billion in market value, almost $2.1 billion in retirement savings and costs more than 5,600 to lose their jobs. The anger of the public over the recent corporate scandals led to the passing of the Sarbanes-Oxley Act, which was designed to make company executives more accountable. Although public distrust for white-collar trial could not actually reverse the damage done to investor confidence, the Lay and Skilling trial however has become a start of a healing process for public-investor relations to be righted again. IV Timothy Belden Apart from the other key witnesses who were former Enron employees and who testified against the top two Enron officials, Timothy Belden particularly made the charges against Lay and Skilling stick, ending in their conviction.   Belden who was the first person to be charged in the manipulation of Western Energy markets, initially engaged in lengthy dance with federal officials over his plea and eventual cooperation in testifying against Lay and Skilling.   He pleaded guilty in 2002 to conspiracy and admitted that he gave false information to California’s electrical grid operators.   Belden is also said to be the â€Å"mastermind behind the strategies described† in memos that spelled out how Enron manipulated the California market (Schreiber). Beginning in the mid-nineties, California was among the first states to deregulate electricity.   The deregulation occurred just as when companies were leaving the state in numbers thereby creating a recession. The deregulation was supposed to reduce the ten percent of the tax payers’ bill while breaking the old methods of greedy companies.   As California deregulated the wholesale side of its energy markets, it also kept price caps in the retail side. It coincided with the State’s decision to bar utilities from signing long-term cheap fixed prices which forced them to into an unpredictable market.   Thus, the utilities were made to pay exorbitant prices but were not able to pass on to their consumers the prices they incurred.   Enron promised to deliver power more efficiently and build new plants that can run on cheaper fuels. Commencing in 1998 until 2001, Belden as well as other executives from Enron devised a fraudulent scheme in order to obtain increased revenue for Enron from wholesale electricity consumers and other market participants in the State of California. The schemes perpetrated by Belden and the other Enron executives required them to submit false information to the companies supplied by Enron and misrepresented the nature of electricity which the company was supposed to supply. Despite being paid to relieve congestion, the company however, did not do so and instead imported as well as exported electricity in order to receive higher prices from the companies they supply. Of particular interest in the course of the trial is a transcript of conversation between Belden and one of the operators of the power plant wherein the two discussed shutting down one of Reliant’s power plants in California to create a shortage in order for the prices to skyrocket. As the scheme worked, causing the power prices to arrive at high and unjust levels in California, it thereby became illegal under the Federal Energy Policy Act. In his testimony, he called California’s post-deregulation power market dysfunctional and said his company bought cheap electricity in the Northwest to sell in California at a profit (Baker). This practice created the appearance among consumers that there was shortage of electricity, thereby having the need to jack up the prices. Enron was able to pocket off almost $1 billion in a period of nine months in 2000 and 2001. Belden admitted however, that he only met with Lay and Skilling once during a colleague’s party.   But nevertheless, Belden’s testimony proved to be a very crucial one as it confirmed and proved that Lay and Skilling knew of what was happening in California but turned to hide it instead. As company vice-president and head of Enron’s West Coast trading operation, Belden supervised a staff of 120 that went from $50 million in earnings in 1999 to $800 million in 2001, while Californias power markets disintegrated into panic and sky-high prices. When one of Enron’s lawyers started investigating these â€Å"irregularities† as a response to the investigation conducted by the California Public Utility Commission. The lawyers found out of Enron’s tactic of using advantage of the energy crisis and revealed through a memo that Enron created false congestion lines, transferred energy in and out of state to avoid price caps and charged for services the company never actually provided (Swartz).   And yet, inspite of the information the lawyer gave to the top executives, and traders have been told to return the money made on improper trading, the executives at Enron still decided against it despite knowing that the practice was illegal.   For Belden and the other traders, sending the money back would mean that the other companies will know what Enron was doing.   Nevertheless, Belden and Enron continued on with the practice.   Skilling, on the other hand, fully knew well of the said practice by the company in 2001 as he was already tipped by one of the executives who learned of the previous investigation. During examination, Belden admitted to US District Judge Martin Jenkins that he did it because he was trying to maximize profit for Enron. Belden claimed that he was only following Enron’s instructions as he handled his trades (CBS News).   According to Belden’s counsel, Enron knew fully well of Belden’s action but was never disciplined nor sanctioned at all. In fact, Belden may have reaped bonus for such practice as revenues from his trading unit climbed from $50 million in 1999 to $500 million in 2000 to $800 million in 2001.     When he was charged with conspiracy, Belden after a long time of dealing and negotiating with the federal government, decided to turn against Kenneth Lay and Jeffrey Skilling, claiming that the two top executives knew of the practice he and other traders did as indicated by the internal company memos which described how Enron took power out of California at a time of rolling blackouts and shortages and how it sold out of state to elude price caps (CBS News).

Business Essays London Cinema Plan

Business Essays London Cinema Plan West London Gold Class Cinema Business Plan. Executive Summary Negotiations have been undertaken to purchase the West London cinema in Hammersmith. This is a small, family run cinema which has been having trouble competing since a new multiplex cinema opened in the new shopping centre in Shepherds Bush. The purpose of this business plan is to seek funding for the purchase of the West London cinema and for the transformation of part of it into a Gold Class or VIP type cinema. This transformation will involve the renovation of one of the screens, decoration in a classy, movie theme style and the building of a kitchen and bar area. Gold Class will give patrons the opportunity to watch blockbuster movies from the comfort of luxurious, reclining lounge chairs while enjoying food and drinks brought directly to them. If this concept works, then the prospective owners intend to repeat their success in other run down cinemas across the country. Business Summary The business objectives are to develop one of the current cinemas (which has capacity for 250 patrons) into three Gold Class cinemas each having seating for 30 patrons, decorate the lobby area in a movie theme style and build a kitchen and bar area. Once the necessary renovations have been completed, the owners will need to obtain the necessary licensing permissions, hire staff and market the concept. Current Situation and Background At present West London Cinema is a small, three-screen, family run cinema in West London. While it has seating capacity for 750 patrons, the run down nature of the cinema means that on most nights it fails to realise its potential. The cinema has had a relatively steady customer base, but the recent opening of a multiplex cinema complex in Shepherds Bush has meant that patron numbers have been down. Even before the opening of the new multiplex cinema, the cinema had already been suffering a downturn since its heyday in the mid-1980s due to external factors. These have included a rise in property prices slowly changing the demographics of the people who live in the area, shifting customer entertainment habits (people have many more entertainment options available to them today) and the fact that the window between a release in the cinema and subsequently on DVD has been shrinking and movie piracy issues. While these issues have affected the cinema in a negative way, these are also the issues on which the prospective owners believe they can capitalise. This downturn in patron numbers has meant that the cinema is unlikely to make a profit this year and with the current owners not having the funds to invest into upgrading the cinema, it is likely that the this year will be only the start of a downward earnings trend for them. In light of this, the current owners have decided to sell the cinema while it is still showing some profit. This has created the opportunity which is set out in this business plan. Financial Situation and Legal Requirements West London Cinema has been owned by the same family since 1975. It has always prided itself on its friendly atmosphere and reasonable prices. Unfortunately, the owners have not always ploughed the cinemas profits back into the business and as such, it has become a little run down with increasing numbers of complaints about uncomfortable seating, poor screen resolution and a unimpressive sound system. The owners wish to borrow  £250,000 pounds to achieve their business objectives. With respect to legal requirements, the owners will need a liquor licence, building approval from their local authority, a hygiene inspection of their kitchen and advice from a solicitor as to whether or not they are able to trademark the Gold Class name. Industry Analysis Industry Description The cinema industry as a whole is facing challenges from many sides. Consolidation within the UK market means that four groups (Terra Firma, Blackstone, Vue and National Amusements) now own over 70% of UK screens. This consolidation means that the larger cinemas are better placed to meet the challenges of a quickly changing marketplace. Unfortunately, the losers in this consolidation of the marketplace and the emerging challenges to the cinema have been the small, family run cinemas. Industry Growth Across the industry, revenue growth has been quite strong with exhibitor revenue rising by 59% from 1998 to 2004 to over  £900 million (made up of  £650 million net box office sales,  £204 million net concession revenue and  £63 million cinema advertising). Most of this revenue growth was in the multiplex part of the market where it was noted that the four leading cinema groups had been able to raise their prices even in the face of declining DVD prices. This shows that demand for the cinema experience is more than just the watching of a movie and that a market does potentially exist which the larger multiplexes fail to cater for and that can be exploited by the more agile, smaller cinemas. Future Industry Developments The increase in other entertainment options, for instance computer games, pubs, home cinemas and the ever shrinking window between the release of a movie in the cinema and then onto DVD means that the future of the cinema industry is uncertain. The trend towards consolidation will no doubt continue, but it is interesting to note that the number of multiplexes opening has plateaued, with an average of 25 a year opening between 1998 and 2002, only 6 were opened in 2004. This perhaps signals that the multiplex market has reached its full potential and that the marketplace is stabilising. However, the stabilisation of the market at the top end does not as yet seem to have filtered down to the smaller cinemas and as such, many continue having trouble turning a profit. It is the owners belief that the current market is ideal for the development of a new concept which gives movie patrons an entirely unique cinema experience Gold Class. Market Summary Market Analysis The four possible ways in which the market can be defined are: multiplex cinemas; all cinemas; all ways of watching films (including cinemas, DVDs and pay-television); and all ways of using discretionary spend (including films, going to pubs, clubs or other ways of spending time and money in or out of the home). As noted above, it is the prospective owners view that cinemas can no longer focus on the narrow definition of the market. Some guidance can be taken from the multiplexes which offer patrons an experience. Often these cinemas are attached to shopping centres and as such going to the cinema is simply part of a persons shopping day. Multiplexes, like the shopping centres to which they are appended, rely on the principle that if something is large and loud, no one will dare to think that it is anything but the best and it must be said that they do this well. Teenagers are particularly impressed by this logic. However, to the same extent that teenagers are drawn to large and loud multiplexes, older patrons are repelled by them. Market Segmentation Cinema patrons generally fall within the 15-24 year age group with over 53% of people surveyed in this age group having attended the cinema once a month or more. This declines within the 25-34 year old age group to 34% and further within the 35+ age group to 16%. These figures reflect perhaps the fact that older cinema patrons who do not enjoy the nature of multiplexes have limited options with respect to indulging in a cinema experience. Furthermore, along with work and family commitments, older cinema patrons have less free time available to them and more options with respect to how to spend that time. This means that they are more likely to want to spend more money when they do go out to make sure that they utilise their time optimally. Market Research The purpose of the market research undertaken was to determine whether the Gold Class concept has been successful elsewhere, to gauge whether or not Hammersmith is the best location for a Gold Class cinema and to establish a price point for Gold Class tickets, food and drinks. The market research allowed the prospective owners to establish that the Gold Class concept has proven successful in Australia. While it was not possible to obtain financial figures, the prospective owners were able to determine that the concept has been around for several years and they were able to test it for themselves (a sample menu from an Australian Gold Class cinema is attached at Appendix A and can also be found here: http://www.greaterunion.com.au/goldclass/moviemenu.asp). In order to determine whether or not Hammersmith was a reasonable location for a Gold Class cinema, the prospective owners researched the demographic trends and the types of new businesses that were opening in the area. They found that many new business were opening and established businesses were being renovated to meet the tastes of the new residents moving into the area. As such, it was concluded that Hammersmith was a suitable location for a Gold Class cinema. Establishing price points for Gold Class tickets, food and drinks was quite difficult as the measures against which these price points can be determined are not perfect substitutes for each other (ie does a portion of fish and chips in a Gold Class cinema equate to the same meal in a pub?). It was decided that the only feasible approach was to go for higher price points, but offer various promotions which would mean that most people would not end up paying the full advertised price. Competition Analysis As noted, the market is extremely concentrated with the multiplexes taking a lions share of box office receipts. At the other end of the cinema market, are small, family run cinemas which are often seen by the public as being run down and in need of renovation, but priced competitively. There is little between these two extremes. However, while the multiplexes offer a certain type of experience, the prospective owners believe that there is still a potential untapped niche which small cinemas can exploit and which the multiplexes would have trouble competing with in the short term. Other potential competitors are similar niche cinemas which focus on selling a lifestyle (eg cinemas which only screen independent movies). Taking a broader view of the market in which cinemas compete, the market would be the entertainment market generally. People have a limited amount of disposable income and a limited amount of time which can be spent on entertainment. As such, cinemas are also competing with bars, sporting events, home cinemas, travel and restaurants. It is submitted that Gold Class cinemas would be a strong competitor in the general entertainment market at a niche level. Competition Strengths The main competitor for the proposed Gold Class cinema is the multiplex cinema in Shepherds Bush. The multiplexes strength lies in its buying power and the cinema chains ability to obtain the latest blockbusters at the earliest possible opportunity. Due to the multiplexes size, it has the flexibility to offer promotions and tie-ins beyond anything that a small cinema can offer. In the broader sense, the cinemas other competition comes from the various restaurants and pubs found in the surrounding vicinity. However, they are not necessarily direct competitors and are not mutually exclusive unlike the multiplex (ie a person may go to Gold Class and then a pub, but they are unlikely to go to the multiplex and then Gold Class). That said, the fact that Gold Class will offer food and alcohol means that competition between the cinema and restaurants and pubs in the vicinity will increase. Competition Weaknesses The multiplexes main weakness is that it does not cater particularly well to the older market of cinema patron. Furthermore, at present it does not offer a Gold Class experience and due to its business model of trying to fill large cinemas, it is unlikely that it would move towards a model which relied on creating smaller, more intimate cinemas. Likewise, it is difficult to imagine restaurants and pubs being able to compete directly with a cinema. They both offer sufficiently different experiences to customers and it is more difficult for restaurants and pubs to add on a movie-like equivalent than it is for a cinema to offer food and alcohol. Development and Production Sales and Marketing Unique selling point At present cinemas in the UK do not offer a dedicated Gold Class or VIP cinema going experience. In cases in which such an offering has been tried in the UK, for example, the UGC chain, the idea has met with problems due to the fact that a single cinema isnt dedicated to the Gold Class experience, rather, premium seating is attached to the back section of a standard cinema. In this case, the intention is for the West London cinema to have three cinema screens dedicated for premium customers. The prospective owners recognise the demographic shift in the area around the cinema. With house prices steadily rising, the area around Hammersmith has transformed into a hub for city working people with large amounts of disposable income. This change has been mirrored in the types of new shops and eateries opening up to cater to them. These new residents are willing to spend money for a premium and individual experience. Media and promotion strategy The intention would be to choose high headline price points but at the same time offer promotional offers which would ensure that most customers never pay the full rate. The media and promotion strategy would focus on teaming up with local businesses and newspapers to offer special promotional packages (for example, the local florist could offer a two for one deal with each bunch of roses sold). Advertising campaign The advertising campaign would be highly targeted and local. It is assumed that people are unlikely to travel a long way to attend a cinema (especially if they have a local one close by). As such, the goal would be to focus on local customers and to ensure that they remained regulars. Budget A large marketing budget would not necessary as the focus would be on offering promotions such as half price tickets during the day and/or two for the price of one deals can be offered in conjunction with various local business/newspapers reducing marketing costs substantially. As the Gold Class cinema experience is unique, and marketed as an indulgence, it is suggested that many local businesses would be willing to be involved in such promotional activities. While actual advertising costs will be low, printing and distribution costs will still need to be considered. Management The prospective owners of the cinema are the brothers James and Jack West. James West has recently completed his MBA and is working for one of the UKs largest cinema distribution companies. Jack West currently works as an advertising executive. In anticipation of a sale, the current owners have taken the last three months to show James and Jack the operational side to running a cinema. Both Jack and James intend to invest  £250,000 of their own money and take on this project full-time. In addition, James and Jack have already approached a friend who runs a small restaurant to assist them with the preparation of a suitable menu and have had plans for the refurbishment prepared. It is intended that James manage the operational side of the cinema while Jack concentrate on the marketing. Projected sales and pricing strategy Pricing strategy A regular ticket at West London cinema is currently  £4 during the day and  £6 in the evening for an adult. Gold class tickets will be priced at  £8 during the day and  £12 in the evening. In addition patrons will be able to buy food and drinks which will be brought into them while the movie is playing. The average price of food items and alcoholic drinks will be approximately  £5  £10. Financial Considerations The current owners hold a long-term leasehold interest over the premises at which the cinema is located. The main costs incurred by a cinema relate to the percentage of box office takings that go to the film distribution companies. The intention behind the Gold Class concept, along with offering patrons the ultimate cinema experience, is to try to increase revenue from those areas of the business which are not subject to distribution company payments (ie food and alcohol). Projected Sales At present West London cinemas three screens have box office sales of  £174,000 to which can be added sales from the kiosk and advertising, taking annual turnover for the cinemas to  £228,000. 25% to 50% of the box office takings go to the film distribution companies. Along with running costs and wages, gross profits for the cinema last financial year were  £56,000. As one cinema will be converted into three Gold Class each having 50 seats, projected box office receipts are expected to remain the same or rise slightly (less seats at a higher price) but more income is expected to be generated from food and alcohol sales. It is anticipated that food and alcohol sales will add  £25,000 to the cinemas turnover with  £10,000 of this going on higher staff wages meaning that gross profit will be an extra  £15,000 per annum. Appendix 1 Three Years profit and loss accounts 2008 2009 2010 Sales 300,000 500,000 1,000,000 Costs of Sales (112,500) (187,500) (375,000) Gross Profit 187,500 312,500 625,000 Expenses: Advertising 25,000 15,000 10,000 Bank Charges 100 100 100 Insurance 1,000 1,000 1,000 Interest 20,000 20,000 20,000 Legal Accounting 3,000 1,000 1,000 Office Expenses 500 500 500 Postage 250 250 250 Rent 15000 15000 15000 Wages 60,000 60,000 60,000 Telephone 1,000 1,000 1,000 Utilities 1,000 1,000 1,000 Total Expenses 126,850 114,850 109,850 Net Income 60,650 197,650 515,150 Appendix 2 Three years Balance Sheets Assets 2008 2009 2010 Current Assets: Cash 675,000 870,000 1,365,000 Inventory 15,000 15,000 15,000 Other Current Assets 10,000 10,000 10,000 Total Current Assets 700,000 895,000 1,390,000 Long Term Assets 20,000 20,000 20,000 Fixed Assets 50,000 50,000 50,000 Property, plant and equipment 25,000 25,000 25,000 Accumulated Depreciation 5,000 10,000 15,000 Total Assets 800,000 1,000,000 1,500,000 Liabilities and Stockholders Equity Current Liabilities: Accounts Payable 112,500 187,500 375,000 Current Borrowing 250,000 200,000 150,000 Other Current Liabilities 126,850 114,850 109,850 Total Current Liabilities 489,350 502,350 634,850 Long Term Liabilities 60,650 60,650 60,650 Total Liabilities 550,000 563,000 695,500 Total Equity 250,000 463,000 804,500 Total Liabilities and Stockholders Equity 800,000 1,000,000 1,500,000 Appendix 3- SWOT Analysis of Business Strengths: The obtaining of a liquor licence gives the cinema a competitive advantage which is sustainable to a degree. It is unlikely that planning permission for a new cinema would be given by the local Council. As such, as far as cinemas go, a customers only option is to either attend this cinema or the multiplex. Weaknesses: It is not possible to protect the intellectual property behind the concept of a Gold Class cinema. Patrons are only likely to pay a premium price for a movie when blockbuster movies are released. A lack of hit movies could make it difficult to sell tickets. Opportunities: There are plenty of small, family run cinemas which are currently struggling. The depressed market and the Gold Class concept give the owners the opportunity to purchase cinemas at a reasonable price and turn them back into profitable enterprises. Threats: The Gold Class concept relies on people willing to spend a little more to enjoy a more luxurious cinema experience. If the economy was to falter, value added businesses like Gold Class cinemas would be the hardest hit. If the concept proved to be a success, there is nothing stopping the multiplexes from offering a similar service. There is a threat that by offering alcohol in the cinema, the problems associated with anti-social behaviour could follow. Appendix 4 Market Segments When assessing the market segments, it is important not to focus too narrowly. While the Gold Class cinema concept may seem to appeal to only a niche market, the fact that most, if not all, adults in the country have been at some point in their lives been to a cinema to see a movie means that those potential customers already share a common conceptual language making it much easier to appeal to them. It is much more difficult to appeal to someone and have them try something they have never done before. As noted above, the percentage of people who often go to the cinema drops off sharply from the age of twenty five. One of the reasons for this is that the choices of entertainment available as people become older increases and the impression of cinemas is that it is the haunt of teenagers who arent old enough to get into bars. However, this is the segment of the market with the most disposable income, who have happy recollections of going to the cinema as youths and are now expect a more grown up experience when going to the cinema. This is the market segment to which Gold Class aims to appeal. BIBLIOGRAPHY Corrigan, P. (2006), The Sociology of Consumption, Sage Publications, London

The Cause and Effect of HIV in Africa Essay -- Biology Medical Biomedi

The Cause and Effect of HIV in Africa The ubiquitous acronym HIV stands for Human Immunodeficiency Virus. It is a virus that gradually weakens the immune system until the body cannot fight off common infinitesimal infections such as pneumonia, diarrhea, the â€Å"flu†, and other illnesses. All of which can be part of the Acquired Immunodeficiency Syndrome, the final stage of HIV that usually develops between 2 to 10 years after the infection. This infection is frequently transmitted through unprotected intercourse with someone who has already been affected with HIV and is an increasing problem in Africa. This study focuses mainly on the causes and effects of this virus in Africa. HIV is an ongoing battle in many different parts of the world, but it has not affected any other country as strongly and perniciously than in Africa. Out of the 3 million AIDS deaths worldwide, 2.2 million deaths have occurred in Africa. Although the condom is an effective way to prevent the infection of HIV, in many African societies, women are expected and taught to subordinate their own interest to those of their partners. Because of this, many African women feel powerless and give in to having sex for the fear that, if they refuse, they will be raped anyway. Results show that in most African countries, 40% of the young women in Kenya and in Cameroon are coerced or tricked into sexual intercourse. Since wife abuse is widespread, many women do not dare to bring up the topic of condoms for protection against HIV infection for the fear that they would be physically abused. (Women’s Status. July 29, 2005: www.infoforhealth.org/pr/112/112boxes.shtml) In many African cultures, a strong emphasis is placed on having children. This leads to childhood marriage ... ....shtml) 2. (Marriage Practices. July 29, 2005: www.infoforhealth.org/pr/112/112boxes.shtml) 3. (HIV Transmission from Mother to Child. July 29, 2005: www.infoforhealth.org/pr/112/112boxes.shtml) 4. (Rites of Passage. July 29, 2005: www.infoforhealth.org/pr/112/112boxes.shtml) 5. (Sexual Practices. July 29, 2005: www.infoforhealth.org/pr/112/112boxes.shtml) 6. (Assessing Condom Effectiveness. July 29, 2005: www.infoforhealth.org/pr/112/112boxes.shtml) 7. (Aids Orphans Growth. July 29, 2005: www.infoforhealth.org/112/112boxes.shtml) 8. (Children Orphaned by AIDS: A New Challenge. July 29, 2005: www.infoforhealth.org/pr/112/112boxes.shtml) 9. (The Impact of Food Shortages on the Lives of AIDS Patients. July 29, 2005: www.hivafrica.org/article_story.php?indexnum=15) 10. (Social and Economic Consequences. July 29, 2005: www.infoforhealth.org/pr/112/112chap6.shtml)

The “Other” Creation: Post-Colonialism in Mary Shelley’s Frankenstein E

Mary Wollstonecraft Shelley’s Frankenstein (sometimes also known as The Modern Prometheus) is the classic gothic novel of her time. In this eerie tale, Dr. Victor Frankenstein – suffering from quite an extreme superiority complex – brings to life a creature made from body parts of deceased individuals from nearby cemeteries. Rather than to embrace the Creature as his own, Frankenstein alienates him because of his unpleasant appearance. Throughout the novel, the Creature is ostracized not only by Frankenstein but by society as a whole. Initially a kind and gentle being, the Creature becomes violent and eventually seeks revenge for his creator’s betrayal. Rather than to merely focus on the exclusion of the Creature from society, Shelley depicts the progression of Dr. Frankenstein’s seclusion from other humans as well, until he and the Creature ultimately become equals – alone in the world with no one to love, and no one to love them back. Frankenstein serves as more than simply a legendary tale of horror, but also as a representation of how isolation and prejudice can result in the demise of the individual. Generally, as expressed in Charles Bressler’s Literary Criticism: An Introduction to Theory and Practice (4th Edition), post-colonialism encompasses a study of literature written in countries that are or were at some point in time colonized by England or some other imperial power (235). This analysis of literature implies or assumes that the peoples of these texts experienced social, political, and economic influences from an outside force, and were made out to be the â€Å"other† right on their own homeland. While Frankenstein is by no means a tale of conquest, the concepts of isolation and oppression are eminent throughou... ...c endeavors, and the risk of being ridiculed by his friends and loved ones at the discovery that he is the creator of the murderous monster that has caused them such grief. Works Cited Allman, John. â€Å"Motherless Creation: Motifs in Science Fiction.† North Dakota Quarterly. 58.2 (Spring 1990): 124-132. Literature Resource Center. James E. Shepard Memorial Library, Durham. 26 Nov 2010 . Bressler, Charles E. Literary Criticism: An Introduction to Theory and Practice. 4th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2006. 235-244. Shelley, Mary W. Frankenstein. New York: Barnes & Noble Classics, 2003. Zimmerman, Lee. "Frankenstein, Invisibility, and Nameless Dread." American Imago. 60.2 (2003): 135-158. Literature Resource Center. James E. Shepard Memorial Library, Durham. 26 Nov 2010 .

stock market :: essays research papers

The Stock Market Crash   Ã‚  Ã‚  Ã‚  Ã‚  In 1987, the DOW lost 500 points. This was a major occurrence and many countries worldwide were suffering the same thing. Even at that time there was a lot of concern when the DOW goes down that much, because the usual reaction is a depression. This however was not even close to the disastrous events that were eminent after the depression of 1929. As a matter of fact there are measures to make sure this sort of thing never happens again. Federal Deposit Insurance Corporation was created after the depression to ensure this would not happen again.   Ã‚  Ã‚  Ã‚  Ã‚  The crash had happened with many people who had seen it coming. But the business were making money at the time so they had much less concern. The stock market is a very interesting tool for business’s. Most capital in the United States was represented in stocks at the time. Capital is the tools needed to make things of value from basic raw material, such as a building or a machine. Owners of the corporations took stocks into the form of shares of stocks, which are essentially apart of the company. These stocks were then sold on the Stock Market. A lot of hope was riding on the stocks of many men. They had even borrowed to get the stocks. From 1920 to 1929 stocks nearly quadrupled in value. This shows how much faith a man must have had in a stock after it being worth so much. What made the market popular was the fact that you could go to a broker and purchase stock on margin. This made it so that they could buy them on credit and pay cash upfront for some of it. Now the economists knew about this and had been very worried seeing the frenzy for people playing the stock market. The Government also sort of knew what was happening but in a way decided to let things be for they might be held accountable if things were not going so well.   Ã‚  Ã‚  Ã‚  Ã‚  The first decent of The Crash was on October 24, 1929. On this day alone 12,894,650 exchanged hands. This on Wall Street was unheard of. On an average day 3,875,910 were exchanged and this was when the market was at a very high playing field. At the time many ordinary people were even getting a piece of the action.

Coca Cola and Innocent: an Innocent Partnership?

This paper, alma to discuss and discover what brought Peeps- Co organization Interest upon a company that In appearance Is at their antipode. Coca-Cola and Innocent: what interest? It is public knowledge that the beverage giant Pepsi- co had their shares of scandals and marketing mishaps as already discussed during our week 2 assignment. A market segment whew re the organization is lacking presence and weight is the healthy segment and the image of â€Å"Innocence† is absent from the corporation brand.The Innocent company Brand image Is strong, co marred to competitor In salary market segments, due to the name strength which Implies In m y opinion, strong ethics, transparency and stakeholders respect. Coca cola, In perennial competition with Pepsi- co. Tries to gain market advantage, further eroded after the Pepsi â€Å"agreement to distribute Tamping Plus fruit- flavored beverage† (Beverage Industry, 2010).The acquisition of Interests in a Company such as Innocent (The Guardian, 200 & Beverage Industry, 2010) could prove an interesting market entry for the soft drinks giant as we shall not forget Coca- Cola failed attempt to enter the European healthy drinks market. Since then the â€Å"company has tried to Improve its UK Image.

How is ICT Used in Schools and What are the Effects? Essay

inletI get hold of chosen to do a report on the onus on crops and colleges. I chose this topic beca apply I attend instruct completely mean solar day and I flock unwrap knocked a demeanor(p) a lot ab step to the fore schools. I drop similarly fetch post most the use of ICT in colleges because my render chokes at a college. I allow be satisfactory to find out information to include from umpteen sources. I think purpose out about the development of ICT is genuinely arouse and I substructure comp atomic number 18 the ICT facilities. I exit withal be able to find out information about how ICT is use in schools.To do this I am going to use a range of sources, for event, books, the lucre and masses.How has ICT transplantd all over the last- assign 30 eld?Com come iners back be changed for interactive learning, unlike 30 categorys ago. The that dis return to this is the students forget non be as motivated as they would with a teacher.Com cast dis patchers take hold changed dramatically over the last few decades. Com baffleers started appearing in schools in 1983. At this clip on that point were very few, they were called Caltext Word Processors. They were larger, slower, had less memory, the die hards were non advanced. Now there ar hundreds of machines, branders, s bearners and so forth Modern computers own more treat power than the larger, room-sized computers, which were more or less in the 60s and early 70s.How has ICT changed in schools?ICT is used in schools for mevery purposes, for example, preserve grades and attendance. All the information for attendance is infix into the computer and a spreadsheet is made. The percentage is calculated by the computer and a pertly monitoring system phones p atomic number 18nts at even intervals during the day to enquire about absences. It keeps phoning until there is a reply.School libraries use ICT for seal off code readers and the librarian hind end approach s hot data about who has which book, the book on loan and the return date. It thunder mug in any(prenominal) case be an efficient form of ack forthwithledgment. For example Hillcrest, our card system is an efficient way to only when dinner. The card passel overly be used for library cards because they have a photo on them. This is taken from a digital photographic camera and was input into a computer and put on to a card. This is resultantual because they ordure be used as identity element, because the swarthy stripe shows which year each pupil is in. The black stripe along the stomach of the card stores information about the name, year and the amount of money on the card. An advantage to this system is it doesnt show who has part with meal, the information is not functional to new(prenominal) pupils.As well as ICT universe in stock(predicate) to different pupils, it is withal reusable for teachers, because a database arsehole be unbroken of all the details of the pupil such(prenominal) as the date of birth, emergency abut numbers, and progress in lessons and behaviour.With ICT help arsehole be perpetraten in other subjects. Programs such as Encarta, The Way Things Work, and specially the mesh solve. The Internet is right-hand because pupils can main course any preparational entanglement site and clear page filters such as The Birmingham gridiron For Learning, stop offensive pages being shown. The Internet alike has a utilizable site for teachers, where they can input students cash in ones chips into the site and it divides them how much has been copied of the Internet. This helps to prevent Plagiarism. Teachers can also access prepared lesson plans and schemes of work.Students can also save their work on the network, in their own area. Which can be accessed from any network computer and it is also obtain because each persons account is password protected.Schools can use Digital Cameras to put a photograph into the compu ter to put photographs on to the website, art students can include prowess into their work and the photographs can be used for swipe cards or identification cards.What are the historical aspects of the changes in ICT in schools?Years ago, computers may only have been used in computing, but now they are used in galore(postnominal) other subjects, for example, Maths software, Science software, prep and revision designs, and business forecasting tools.Computers have become more developed, e.g. when computers were beginning(a) put into the education system there may not have been printers in schools, but now there are more in each classroom. Computers are also much more advanced, the old propagate matrix printers have been replaced by sign Jet and Laser Jet printers which give a much better quality, are better value for money because print off large amounts of paper is cheaper. It also has a higher resolution, which means the print out is better.What are the technological bre akthrough and throughs, which have helped in schools?Breakthroughs in ICT are helpful in schools for a number of ways. beat Code Readers are useful in the school library to check out books Voice Recognition could be useful for teachers who do not want to pillow slip a worksheet/handout. This is an advantage for disabled masses who find it difficult to use a keyboard. They could dictate a worksheet into a program called Voicepad. Scanners are a breakthrough and any picture that is input into a computer can be edited, changes in colours, change the size etc. Also, Smart tease are a breakthrough and are used in schools as identity cards as well as library cards.What technology is used and what is gettable for use?What is operational to buy?Is it available in schools/ colleges?Who uses it?ScannersAvailableMight not be available to studentsPrinters (laser and colour)Available to teachers and students, although both(prenominal) schools may have to fasten create to save on resourc es which is an environmental field of studyStudents and teachers, because they need to print their work.PhotocopiersAvailableStudents may have to ask a teacher to photocopy for themComputersAlways available, though the dimension between schools may varyTeachers and students will need to use them for workA school networkAvailable to every computer in the schoolTeachers and students will need to have an accountInternetAvailable to most computersWill be limited for students because of the web page filters put in place by teachersjointwhitethorn not be available in schools, but may be available in collegeswhitethorn only be available for older pupils or teachers useTouch ScreenMay only be available in schools for children with disabilities.Would only be used with children who can not use a keyboard elation PenMay not be available at allMay be available for teachers onlyWhat effect has ICT had in schools, and how would this be done without the use of ICT?ICT has had a big effect in sch ools and colleges for example electronic mail is sent through the phone lines and is very quick. In my mothers work the students e-mail their work to the lecturers and have a reply with answers and their mark. The students with an e-mail account can physical contact the teachers and other students even when they are on study leave. In universities, worksheets, course details/notices and other important notices are e-mailed to group e-mail addresses, for example, all first year business students or all of first year computing sort of than addressing it to each individual student. Tutors set up group e-mail accounts. All university e-mail addresses can be forwarded to home e-mail accounts.If ICT were not available pupils would have to go into college to find the teachers when they could be using that time to study. They would have to keep checking noticeboards for important information.The Intranet is useful because anyone who has a username and password within the school or colleg e can find announcements, messages and order documents. Most universities have a program called Blackboard where the students can find notes assignments, web page links, and past exam papers. They can also find information from off-campus. This is very important for 2nd and final year, and also placement year students.How has ICT improved facilities in the area?Interactive whiteboards enable teachers to read and not have their backs to pupils. Touch screens can be used in education centres, not necessarily just in schools. Tests should be completed on worry screen computers because they will also tell you how much time you have left over(p) and they allow you to change an answer as many times as you like. It will record the answers you give. They use these on effort theory tests.How has ICT affected the way tribe work?ICT can affect the place where you work because with e-mail and Intranets you can work from home. The pupils could use distance learning. This is also available for adults who enrol on Learn contain courses. Also, working from home is convenient because you can change the hours you work, and where you work to what is more gentle for you. This benefits you because your stress load will simplification because you can e-mail work to the person in charge. This would be useful for individual who is unable to attend school/college and take to make up the work with provision assignments because they can e-mail the completed work to the teacher. Although, working from home would cut off contact with peck you see routine at work. Learning in school means people have advantages when they go into work, e.g. having word processing skills means people need less training in basic skills. Teachers can film around mobile phones and laptops to keep in contact with other colleagues when they are not at work because they are on courses.Students can type up homework, coursework and revision notes. They can research on the Internet. They can also back up pieces of work, and if the first adaption was lost, they could retrieve the backup copy and stay to work from that. They can also carry between home and school, this dramatically switch off the amount of paperwork the pupils have to carry to and from school. Although, they essential remember to take care of the dish antenna and not subject it to extreme light (by putting it near radiators) or magnets because they could land the disk.What rules and regulations need to be put into place to use ICT?Teachers will need to restrict Internet usage and put filters on offensive pages. This prevents them from being shown to students. The Internet can be useful for students work and revision, e.g. finding past exam papers. Although using copyright material is illegal, security is not ever good on the Internet because people can hack into the Internet and find anything.Using computers for a long occlusion of time can have a health risk radiation, backache, wrist paroxysm and eyesi ght.