Archive for December, 2014

Current Issues in Stock Market Efficiency and the EMH

December 24, 2014

Current Issues in Stock Market Efficiency and the EMH
Institution Affiliations:

Table of Contents
Table of Contents 2
Current Issues in Stock Market Efficiency and the EMH 2
Chapter 1: Introduction 2
Chapter 2: Literature Review 3
Historical Review and Development of Theories and Hypothesis 4
The Random Walk Model of Effective Markets 5
Efficient Market Hypothesis Appraisal 6
Weak form tests 6
Semi-strong form test 7
Strong-form tests 7
Technical Trading 7
Fundamentalism 8
Beating the Market and the Real World View 8
Chapter 3: Results and Analysis 9
Chapter 4: Recommendations and Conclusions 10
Chapter 5: Appendices 12
The share portfolio 12
Chapter 6: Bibliography 13

Current Issues in Stock Market Efficiency and the EMH
Chapter 1: Introduction
In the recent past, most analysts are questioning the notion that stock markets are efficient. Analysts argue that participants fail to consider any knowledge and information about forthcoming rewards, but rather concentrate on the previous or current performance of the company. They end up buying large amount of shares in the well-performing companies making such company’s shares to rise only for them to return to normal or even fall with time causing losses. An efficient market is the one whereby all operators correctly present all the information they have about the market promptly and without delay. The prospect of future returns forms the basis for the evaluation of the stock prices, and they are deemed to be perfect because information about the market flows accurately and timely. The future returns, on the other hand, can only be affected by new information about changes in the market patterns that could lead to a change in prices. For instance, if a company invents a new method of production, its prices will rise because the chances of making profits in the future will also be high due to improved output. However, the stock prices can also fall if a competing company accesses the new invention first. The paper, therefore, seeks to analyze the current stock market situation, and relate it to the previous theories to assess their viability in the 21st century (Barnes, 2012, p. 48).
Chapter 2: Literature Review
This field has been under thorough research for the whole of the 19th century. Many articles have been written to evaluate the validity of these hypotheses. The first economist to conduct a research, although many scholars ignored his work for a very long time is Bachelier (Bachelier, 2011). He gave paramount principles and tests for the behavior of prices where he made a conclusion that the speculation should be zero. There was an extensive body of empirical results works in search for a rigorous theory. However, it was the Mandelbrot-Samuelson theory that defines the role of fair game returns model and its relationship with the theory of random walks. After the invention of computers, Kendal Maurice examined the behaviors of weekly changes in the industries in Britain’s share prices and spot charges for cotton and wheat. Van Uytbergen also conducted an empirical research on market efficiency with respect to accounting information in which he emphasized on analyzing previous studies and later he concludes by identifying threats to the validity of accounting-based efficiency market tests. This field has had many research work done which make it hard to review all of them, and therefore this paper only discusses a few of them.
Historical Review and Development of Theories and Hypothesis
The empirical work in the field of market efficiency preceded the development of the theories. However, this paper will present the main features of an efficient market. Then, it will discuss the run walk model and show its relation to the other ideas to ease the evaluation of the empirical results and identify which are relevant. The paper will then review the practical works and their results later.
The first feature of an efficient market is that big companies, making enormous profits sell their shares at a higher value than the underperforming companies. The stock prices, therefore, are a relative indication of the performance of the venture; that is eventually measured by the profits it makes; the company with highly priced shares eventually is the successive one. This characteristic of the market is important in the market because it ensures that investment funds are put to the most productive use by investing in the most prospective opportunities which are provided by the profitable companies.
The second fundamental feature of an efficient market structure states that in an efficient market, the actual returns on stock capital should be constant and equal to the real interest rate. If the interest rate is constant over time, the earned amounts of dividends are affected by the price increase. Therefore, the returns on the stock are constant and equal to the rate of the interest
The third feature is that the only things that can cause real change in the returns of the stock shares is acquiring of new information about the future of the share prices. An example is if a company announces an increase in the amount of dividends it will pay for its stock shares. Such a move would attract even more investors, causing an increase in such a company’s share rate over a very short duration of time. However, in the absence of such a case, the investors make their decisions based on the stock prices because this communicates all they want to know about the future.
Also, efficient market participants should expect equal returns in the future. Thus, even if the onset is of higher or lower returns they ought to know that the opposite would happen later. This phenomenon helps to ensure a normal growth at the expected rate (Samuelson, 1965).
The Random Walk Model of Effective Markets
This model assumes that the available information is a full reflection of the current prices. This statement means that changes in price are independent, and are also presumably equally distributed in the market. These are the basis of the model. This model is considered to be an extension of the general extension model in that it makes a thorough statement about the economic environment. This model arises in a context where the business environment is unpredictable, such that the evolution of the investor sense of taste and the process of generating new information produces balance in which return distributions repeat themselves through time. Therefore, empirical tests of the model support it then tests of the additional pure independence assumption. However, the independence of returns over the time is weak. The model fails to consider the fact that information about past proceedings is of no value in assessing the distributions of future returns (Fama, 1970, p. 48).
Efficient Market Hypothesis Appraisal
The EMH was developed by Eugene Fama the 60s, and he assumed that all information in the market is useful, and therefore stock prices reflect the current market value of its expected future income stream. According to Fama, if prices are less than the worth of the income, there demand for it’s the shares will rise. This situation will lead to an increase in the prices until it equals the current value of the returns (Fama, 1990, p. 10). There are three forms of efficient markets hypothesis:
Weak form tests
In these studies, the information subset of interest is just past price histories. It derives its results from the random walk literature. This theory developed from the accumulation of evidence in the mid-50s and early 60s that the behavior of many types of stocks and other hypothetical prices could be well estimated by a random walk. Economists found the need to offer some rationalization. They developed and explained the theory in terms of random walks, but usually suggesting a rather general fair game model. It was Samuelson and Mandelbrot that studied the role of expected returns patterns in evaluating the concept of efficient markets and the relations between these models and the theory of random walks (Benoit, 1996). Even though the Bachelier model had been there even before the development of the above studies, it had been overlooked and unconsidered for many decades. His principle for the behavior of prices was that speculations should be a fair game and be unpredicted in particular; the expected returns to the investor should be zero (Bachelier, 2011).

Semi-strong form test
These studies arose with the arising of tests that supported the efficiency hypothesis. The concern here is the speed of price adjustment to other obviously publicly available information. Every test concerns about the changes in the charges for information; thus they all aim at presenting supportive evidence for the model, having the supposition that they will establish the validity of the model. Economists do not take the splits and the adjustments of stock prices as new information that could affect the business equilibrium. Entrepreneurs have a presumption is that associate splits with the appearance of more fundamental important information. The idea is to analyze security returns of splits to see if they portray any abnormal tendencies and if so, they show how much the relationships between divisions and variables can account for it.
Strong-form tests
The primary concern of these studies is whether any investor or groups enjoy a monopoly in the access to any crucial information relevant to the formation of prices. These studies focus on whether the prices reflect all the information in the market held by the participants. The concern is that no individual should enjoy a higher trading profit because he has a monopolistic access to certain critical information.
Technical Trading
Technical trading is the analysis of price activities with the assumption that all the relevant information is known by the market participants, and this affects stock returns during a particular period. This hypothesis assumes that the availability of the information that is presumed to be indicated by the share prices, this leads to recurring price patterns that can be used to foretell future decisions.
Fundamentalism is a concept that refers to a system in which market analyzes is done using economic data to forecast prices and to determine if markets are over or undervalued. Such can include stock prices against expected returns or by gauging the actual value of a company’s assets compared to their book value. The belief here is that every stock has an inherent value, and the future streams of earnings and dividends are the ones that determine it. Fundamentalist studies, financial statements, industry and firm prospects, managerial ability, government policies, and any other variable that they believe will affect future returns. They then estimate the future incomes of a share, and if its price is less than its inherent value then, they deem it attractive.
Beating the Market and the Real World View
Beating the market is a concept used to denote a situation in which the company realizes better returns than the set targets in the market and also higher than those achieved by competitors. Firms that beat the market get giant profits, even when the stock market is not performing well, when the markets are stagnant and churning.
The first strategy employed by companies seeking to make exemplary profits is predictive of future price relationships between convertible securities and their common stock instead of predicting individual securities. This approach allows them to make preparations and investments before others do. Such companies also invest heavily in research and investigation of advisory services and mutual funds instead of solely depending on current or previous market performance. Such investors are critical readers and reviewers of any book or any available material that could give them crucial information pertaining to the business environment so that they are confident while taking even the highest risks.
In the real world, however, beating the market is not common. Only a few and prosperous entrepreneurs such as Peter Lynch, and Warren Buffet have been able to enjoy such fortunes. Many unmentioned investors have tried but failed. One of the challenges of beating the market is the need to make giant investments. For example, an investment in the 500 index funds performs proportionally to the amount invested. However, the investor will have to deduct the investment fee from the realized returns thus hindering the market-beating. Taxes are another barrier to market-beating because the payment of taxes reduces the profits significantly and even worse an increase in the amount of income earned translates to a higher amount of tax that the investor will have to pay. Entrepreneur’s perception also presents a hindrance because they tend not to be patient enough to wait for the opportune time to sell their stocks. Most investors buy their shares when the prices are high, but when the prices fall a little, they sell them out of panic thus failing to realize any sensible returns.
Chapter 3: Results and Analysis
In the twenty-first century, most economists believe it is possible to predict stock prices to some extent basing on various variables. They argue that proprietors should access the future stock prices on the basis of the preceding performance. Economists using sophisticated nonparametric statistical techniques that recognize patterns have found out that some of the stock market trends can be predictive. Such includes head and shoulder formations and double bottoms used by technical analysts.
They also argue that investors forecast future performance patterns, and this enables them to realize enormous amounts of risk-adjusted returns. They argue that stock prices do not respond to information such as mergers, stock splits, dividends, initial public offerings, etc. The 21st century economists put more focus on cases where investors may earn abnormally high profits due to circumstances such as an investor learning about the future opportunity and implement it early before others. Eventually, other players will come to learn about the opportunity and exploit it to the extent that it no longer gives the exaggerated returns. However, this scenario happens in the short-run.
In the long-run, research has shown a negative relationship in returns. These are explained to be due to investors who tend to have positive or negative attitudes towards market tendencies that cause them to either buy or neglect shares in a particular field thus affecting the prices. There also tendencies for investors buying stock shares in underperforming investments because they are cheap, with the hope that they will improve in the future for them to make profits. They in return avoid shares of a well-performing business because they fear that the enterprise may reach its peak and start recessing.
Chapter 4: Recommendations and Conclusions

From studies conducted especially during the Great Depression period, there are market reversals that keep alternating. It’s, therefore, possible to find a situation where stocks that are performing well for a particular period are the ones that perform poorly in another and vice versa. The interest rates, bond prices, and stocks keep on changing to keep the market competitive.
Another change that has occurred in today’s measurement of market efficiency is the use of dividend yields to predict future returns. In the past, companies used to buy shares capitals with relatively high initial profits in order to earn high rates of returns. However, that has changed in the current business world whereby companies now prefer to repurchase their shares than to increase the dividends. Contrary to the previous phenomenon of big companies making giant profits thus attracting investors, it has been observed that small businesses stocks generate higher returns than the larger companies.
This paper has made a number of recommendations on how to go about measuring a markets efficiency or inefficiency. The following are their outline:
I. Entrepreneurs should not use the previous performance of the enterprise as the sole method of predicting its expected performance in the future. The study has shown that the business environment keeps on changing.
II. Predicting a business’s future action cannot be used as the only basis for making investment decisions.
III. It is not possible to attain perfect information in a market setting. Some players have access to information that others don’t, and this leads to them having a market advantage.
IV. To be a leader in the market involves taking higher risks than other players in the market.
This paper concludes that even though there have been changes that have occurred in the market currently, the efficient market hypotheses are still important in evaluating the capital market system. They can still be used together with other factors to assess the market environment.
Chapter 5: Appendices
The share portfolio




Company Name
Total Cost


Amara Mining


ANS Group


Alliance Trust


Barclays PLC


Ryanair Holdings PLC


National Grid PLC



BAE Systems


Blackrock investment Trust


Britvic PLC

Chapter 6: Bibliography
Fama, E. F. (1990). Efficient Capital Markets, II. The journal of Finance 25.2, Chicago: Center for Research in Security Prices, Graduate School of Business, University of Chicago, 383-417.
Bachelier, L. (2011). Louis Bachelier’s Theory of Speculation: The Origins of Modern Finance. New Jersey: Princeton University Press,.
Barnes, P. (2012). Stock Market Efficiency, Insider Dealing, and Market Abuse. Aldershot: Gower Publishing, Ltd.
Benoit, M. (1996). “Forecast of future Prices, Unbiased Markets, and Martingale Models.” Journal of Business, 39, 242-255.
Samuelson, P. A. (1965). “Proof That Properly Anticipated Prices Fluctuate Randomly.” Industrial Management Review, 6, 41-49.

accounting project

December 24, 2014

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2013 2012 2011 2010 2009
Information needed: £- £- £- £- £- £- £- £- £- £- £- £- £- £- £-
BP Average BG Group Average Royal Dutch Shell Average
Gross profit 55 412,00 22 858,00 68 640,00 53 216,00 63 292,00 52 683,60 69 650,00 71 213,00 73 574,00 70 518,00 49 812,00 66 953,40
Sales 246 138,00 308 928,00 386 216,00 388 074,00 396 217,00 345 114,60 13 167,00 13 710,00 17 849,00 19 200,00 19 311,00 16 647,40 451 235,00 467 153,00 470 171,00 378 152,00 278 188,00 408 979,80
Credit sales 246 138,00 308 928,00 386 216,00 388 074,00 396 217,00 345 114,60 13 167,00 13 710,00 17 849,00 19 200,00 19 311,00 16 647,40 451 235,00 467 153,00 470 171,00 378 152,00 278 188,00 408 979,80
Cost of goods sold (cost of sales) 190 726,00 286 070,00 317 576,00 334 858,00 332 925,00 292 431,00 – – – – – – 381 585,00 395 940,00 396 597,00 307 634,00 228 376,00 342 026,40
Net profit before interest and taxation 26 426,00 3 702,00 39 815,00 19 769,00 31 769,00 24 296,20 5 198,00 4 892,00 6 976,00 6 194,00 3 667,00 5 385,40 31 950,00 48 755,00 54 170,00 34 348,00 20 478,00 37 940,20
Net profit after tax 16 544,00 (3 669,00) 25 609,00 11 251,00 23 758,00 14 698,60 3 464,00 3 493,00 4 296,00 4 617,00 2 450,00 3 664,00 16 526,00 26 960,00 31 093,00 20 474,00 12 718,00 21 554,20
Interest expense 1 110,00 1 170,00 1 187,00 1 072,00 1 068,00 1 121,40 214,00 215,00 208,00 360,00 283,00 256,00 1 642,00 1 757,00 1 373,00 996,00 542,00 1 262,00
Payables at the beginning 41 406,00 41 406,00 51 941,00 58 016,00 53 548,00 49 263,40 2 592,00 2 592,00 4 388,00 5 342,00 2 592,00 3 501,20 70 112,00 70 112,00 72 839,00 81 846,00 76 550,00 74 291,80
Payables at the end 41 406,00 51 941,00 58 016,00 53 548,00 56 119,00 52 206,00 2 592,00 4 388,00 5 342,00 5 301,00 5 631,00 4 650,80 70 112,00 72 839,00 81 846,00 76 550,00 67 161,00 73 701,60
Average payables 41 406,00 46 673,50 54 978,50 55 782,00 54 833,50 50 734,70 2 592,00 3 490,00 4 865,00 5 321,50 4 111,50 4 076,00 70 112,00 71 475,50 77 342,50 79 198,00 71 855,50 73 996,70
Total Assets at beginning 235 968,00 235 968,00 272 262,00 292 907,00 300 466,00 267 514,20 26 282,00 26 282,00 50 299,00 61 440,00 65 290,00 45 918,60 357 512,00 357 512,00 350 294,00 337 474,00 322 560,00 345 070,40
Total Assets at end 235 968,00 272 262,00 292 907,00 300 466,00 305 690,00 281 458,60 26 282,00 50 299,00 61 440,00 65 290,00 65 974,00 53 857,00 357 512,00 350 294,00 337 474,00 322 560,00 292 181,00 332 004,20
Average Total Assets 235 968,00 254 115,00 282 584,50 296 686,50 303 078,00 274 486,40 26 282,00 38 290,50 55 869,50 63 365,00 65 632,00 49 887,80 357 512,00 353 903,00 343 884,00 330 017,00 307 370,50 338 537,30
Inventory at beginning 22 605,00 22 605,00 26 218,00 26 073,00 28 203,00 25 140,80 476,00 476,00 655,00 768,00 792,00 633,40 30 009,00 30 009,00 30 781,00 28 976,00 29 348,00 29 824,60
Inventory at end 22 605,00 26 218,00 26 073,00 28 203,00 29 231,00 26 466,00 476,00 655,00 768,00 792,00 838,00 705,80 30 009,00 30 781,00 28 976,00 29 348,00 27 410,00 29 304,80
Average inventory 22 605,00 24 411,50 26 145,50 27 138,00 28 717,00 25 803,40 476,00 565,50 711,50 780,00 815,00 669,60 30 009,00 30 395,00 29 878,50 29 162,00 28 379,00 29 564,70
Trade debtors at beginning 31 284,00 31 284,00 38 123,00 44 904,00 38 702,00 36 859,40 2 923,00 2 923,00 5 994,00 7 375,00 6 369,00 5 116,80 63 638,00 63 638,00 65 403,00 79 509,00 70 102,00 68 458,00
Trade debtors at end 31 284,00 38 123,00 44 904,00 38 702,00 41 219,00 38 846,40 2 923,00 5 994,00 7 375,00 6 369,00 6 900,00 5 912,20 63 638,00 65 403,00 79 509,00 70 102,00 59 323,00 67 595,00
Average trade debtors 31 284,00 34 703,50 41 513,50 41 803,00 39 960,50 37 852,90 2 923,00 4 458,50 6 684,50 6 872,00 6 634,50 5 514,50 63 638,00 64 520,50 72 456,00 74 805,50 64 712,50 68 026,50
Current assets 67 653,00 89 725,00 89 778,00 92 069,00 96 840,00 87 213,00 5 212,00 9 965,00 12 216,00 11 749,00 14 130,00 10 654,40 103 343,00 114 734,00 119 777,00 112 894,00 96 457,00 109 441,00
Current liabilities 59 320,00 82 832,00 83 456,00 76 329,00 72 812,00 74 949,80 5 148,00 8 886,00 9 085,00 8 165,00 8 234,00 7 903,60 93 258,00 96 979,00 102 659,00 100 552,00 84 789,00 95 647,40
Shareholders equity 101 613,00 94 987,00 111 568,00 118 546,00 129 302,00 111 203,20 14 186,00 26 328,00 29 511,00 32 948,00 31 960,00 26 986,60 181 148,00 176 182,00 159 966,00 149 780,00 138 135,00 161 042,20
Cash and cash equivalents 8 339,00 18 556,00 14 177,00 19 635,00 22 520,00 16 645,40 693,00 2 533,00 3 601,00 4 434,00 6 208,00 3 493,80 9 696,00 18 550,00 11 292,00 13 444,00 9 719,00 12 540,20
Total liabilities 133 855,00 176 371,00 180 322,00 180 714,00 175 283,00 169 309,00 11 897,00 23 615,00 31 929,00 32 342,00 34 014,00 26 759,40 176 364,00 174 112,00 177 508,00 172 780,00 154 046,00 170 962,00
Long term (non-current) liabilities 74 535,00 92 492,00 96 328,00 103 539,00 102 471,00 93 873,00 6 749,00 14 625,00 22 745,00 24 019,00 25 780,00 18 783,60 83 106,00 77 133,00 74 849,00 72 228,00 69 257,00 75 314,60
Dividends announced (declared) 10 483,00 2 627,00 4 072,00 5 294,00 5 441,00 5 583,40 446,00 815,00 871,00 864,00 952,00 789,60 11 590,00 11 247,00 10 895,00 10 717,00 10 591,00 11 008,00
Operating cash flows 27 716,00 13 616,00 22 218,00 20 479,00 21 100,00 21 025,80 3 544,00 6 386,00 6 982,00 7 995,00 7 817,00 6 544,80 40 440,00 46 140,00 36 771,00 27 350,00 21 488,00 34 437,80

Ratio 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Ratio 2009 2010 2011 2012 2013
Profitability/Performance ratios BP BG Group Profitability/Performance ratios Royal Dutch Shell
EBIT/capital employed 15% 2% 20% 9% 14% 12% 25% 17% 15% 11% 6% 15% EBIT/capital employed 12% 19% 22% 15% 9% 16%
Return on equity Return on equity
Net income/shareholders equity 16% -4% 23% 9% 18% 13% 24% 13% 15% 14% 8% 15% Net income/shareholders equity 9% 15% 19% 14% 9% 13%
Gross profit margin 22,51 7,40 17,77 13,71 15,97 15,47 0,00 0,00 0,00 0,00 0,00 0,00 Gross profit margin 15,44 15,24 15,65 18,65 17,91 16,58
(Gross profit / sales) x 100 (Gross profit / sales) x 100
Operating profit margin 10,74 1,20 10,31 5,09 8,02 7,07 39,48 35,68 39,08 32,26 18,99 33,10 Operating profit margin 7,08 10,44 11,52 9,08 7,36 9,10
operating profit/sales*100 operating profit/sales*100
Net profit margin 6,72 -1,19 6,63 2,90 6,00 4,21 26,31 25,48 24,07 24,05 12,69 22,52 Net profit margin 3,66 5,77 6,61 5,41 4,57 5,21
(Net profit after tax / sales) x 100 (Net profit after tax / sales) x 100

Asset efficiency ratios Asset efficiency ratios
Asset turnover 1,04 1,22 1,37 1,31 1,31 1,25 0,50 0,36 0,32 0,30 0,29 0,36 Asset turnover 1,26 1,32 1,37 1,15 0,91 1,20
revenue/average total assets revenue/average total assets
Accounts Payable Turnover Ratio 4,61 6,13 5,78 6,00 6,07 5,72 0,00 0,00 0,00 0,00 0,00 0,00 Accounts Payable Turnover Ratio 5,44 5,54 5,13 3,88 3,18 4,63
cost of goods sold/average payables cost of goods sold/average payables
Return on total assets 11,20 1,46 14,09 6,66 10,48 8,78 19,78 12,78 12,49 9,78 5,59 12,08 Return on total assets 8,94 13,78 15,75 10,41 6,66 11,11
(NPBIT / Average total assets) (NPBIT / Average total assets)
Inventory Turnover 8,44 0,09 0,08 0,08 0,09 1,75 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Inventory Turnover 0,08 0,08 0,08 0,09 0,12 0,09
(Average inventory held / Cost of sales) x 365 (Average inventory held / Cost of sales) x 365
Average settlement period for debtors 46,39 41,00 39,23 39,32 36,81 40,55 81,03 118,70 136,69 130,64 125,40 118,49 Average settlement period for debtors 51,48 50,41 56,25 72,20 84,91 63,05
(Average trade debtors / Credit sales) x 365 (Average trade debtors / Credit sales) x 365

Liquidity ratios Liquidity ratios
Current ratio 1,14 1,08 1,08 1,21 1,33 1,17 1,01 1,12 1,34 1,44 1,72 1,33 Current ratio 1,11 1,18 1,17 1,12 1,14 1,14
Current assets / current liabilities Current assets / current liabilities
Quick ratio Quick ratio
(Current assets-inventory)/current liabilities 0,76 0,79 0,76 0,85 0,94 0,82 0,92 1,06 1,27 1,34 1,62 1,24 (Current assets-inventory)/current liabilities 0,79 0,87 0,88 0,83 0,80 0,83
Cash ratio Cash ratio
Cash and cash equivalents/current liabilities 0,14 0,22 0,17 0,26 0,31 0,22 0,13 0,29 0,40 0,54 0,75 0,42 Cash and cash equivalents/current liabilities 0,10 0,19 0,11 0,13 0,11 0,13

Gearing/Financial measurements Gearing/Financial measurements
Total debt to equity ratio Total debt to equity ratio
Long term liabilities / (share capital + reserves + retained profits + LTL) 73,35 97,37 86,34 87,34 79,25 84,73 47,58 55,55 77,07 72,90 80,66 66,75 Long term liabilities / (share capital + reserves + retained profits + LTL) 46% 44% 47% 48% 50% 0,47
Total Debt Ratio Total Debt Ratio
total liabilities/total assets 57% 69% 64% 61% 58% 62% 45% 62% 57% 51% 52% 53% total liabilities/total assets 49% 49% 52% 52% 50% 51%
Interest cover Interest cover
NPBIT / interest expense 23,81 3,16 33,54 18,44 29,75 21,74 24,29 22,75 33,54 17,21 12,96 22,15 NPBIT / interest expense 19,46 27,75 39,45 34,49 37,78 31,79
Equity multiplier Equity multiplier
total assets/shareholders equity 2,32 2,68 2,53 2,50 2,34 2,48 1,85 1,45 1,89 1,92 2,05 1,84 total assets/shareholders equity 1,97 2,01 2,15 2,20 2,23 2,11

Return on investment measurements Return on investment measurements
Dividend cover Dividend cover
NPBIT / dividends 2,52 1,41 9,78 3,73 5,84 4,66 11,65 6,00 8,01 7,17 3,85 7,34 NPBIT / dividends 2,76 4,33 4,97 3,21 1,93 3,44
Dividends per share Dividends per share
Dividends announced during period / number of shares on issue 0,70 0,70 0,64 0,64 0,64 0,66 0,64 0,64 0,64 0,64 0,64 0,64 Dividends announced during period / number of shares on issue 0,64 0,64 0,64 0,64 0,64 0,64
Earnings per share Earnings per share
basic eps 87,34 (21,64) 133,35 57,89 123,87 76,16 8,10 7,40 4,10 36,20 6,90 12,54 basic eps 5,40 8,10 72,50 68,80 18,60 34,68
diluted eps 86,40 (21,64) 131,74 57,50 123,12 75,42 8,00 7,30 4,00 36,00 6,90 12,44 diluted eps 5,30 8,00 72,00 68,40 18,50 34,44
Payout ratio Payout ratio
dps/ basic eps 63% -72% 16% 47% 23% 16% 13% 23% 20% 19% 39% 23% dps/ basic eps 70% 42% 35% 52% 83% 57%
price earnings ratio
mps/eps 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Mps ratios_workbook

Strategic Management Accounting

December 24, 2014

Strategic Management Accounting

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Table of Contents
1.0 Introduction………………………………………………………………………………………………………………………………………….3
2.0 Management Accounting Principles That Can Be Used To Incorporate Sustainability In A Business……………………………………………………………………………………………………………………………………………….4
2.1 Environmental Accounting Principles Towards Sustainability Development………………………………………………..5
2.2.1 Global Environmental Accounting…………………………………………………………………………………………………….5
2.1.2 National Environmental Accounting………………………………………………………………………………………………….5
2.1.3 Corporate Environmental Accounting……………………………………………………………………………………………….5
2.1.4 Environmental Management Accounting…………………………………………………………………………………………..5
2.1.5 Environmental Financial Accounting………………………………………………………………………………………………..6
3.0 How Sustainability Issues Are Incorporated Into An Organization In such A Way As To Create Competitive Advantage…………………………………………………………………………………………………………………………………………………..6
3.1 Competition…………………………………………………………………………………………………………………………………………..6
3.2 Significance of Sustainable Competitive Advantage To Business Environment……………………………………………..7
3.3 How A Firm Can Acquire Sustainability Competitive Advantage…………………………………………………………………7
3.3.1 Restriction From Internal Weakness Within The Firm…………………………………………………………………………7
Table of Contents 2
References 13

1.0 Introduction
Today, most of the upcoming markets are embracing the need for mass urbanization. The necessity of mass urbanization in the markets in the future may be useful in raising the production rates and the living standards of the people through a sustainable business environment. However, it also comes with such adverse effects to the environment and other significant negative impacts that may hamper the development of the plan.
Presently, most countries work with the inclusion of the theme of sustainable development within their strategies. The process of the economic growth will deploy the use of such strategies. They cause a positive change in the living standards of the people living in such countries about the conservation of the environment and other resources in place. In order to ascertain this strategy, there has to be laid down frameworks that will help in the evaluation of the achievements of such upcoming countries in meeting the expected goal or target (Mudacumura, 2005).
Evolution of recent models towards sustainable growth in most emerging markets facilitates the introduction of new metric index measures that help in the evaluation of the sustainability index of such nations. The sustainability index is important in assessing the gap for implementation by the managerial authorities. It also the investors in coming up with the best methodologies that will assist such countries in attaining the desired sustainability development. The sustainability index, therefore, assists in analysis of the market performance of the upcoming markets. It achieves this through determination of the elements such as finding whether the set index meets the basic needs of the people and also how efficient is the available resource towards uplifting their life standards. Sustainability index also seeks to explain the environmental condition of the country in question and also the composition of that particular environment towards its commitment to the upcoming sustainability issues. Most developing and the developed countries should, therefore, use the sustainability index tool in the economic evaluation processes (Hopwood, Unerman, & Fries, 2010). It should also work through the themes of restructuring of the industries towards the environmental conservation processes by renewing or recycle of waste products.
Other items would also include making the land go green through tree plantation to ensure that the atmosphere remains clean and also the application of charges and standards that are transparent in their nature. Recycling should also take place in a large mass through the involvement of the management authorities in charge to realize its effectiveness (Chapman, Hopwood & Shields, 2007).
2.0 Management Accounting Principles That That Can Be Used to Incorporate Sustainability into Business Decision
For the sustainability in the business, management accounting, therefore, should deploy the use of environmental accounting principles. The environmental accounting applies both the use of economic and the environmental information to realize the sustainability development of the business in place. It evaluates and presents the economic cost that a company incurs in meeting the environmental conservation process (Burritt, 2011). Examples of these costs are the site cleanups, fines that accrue from the environmental regulators of the country in charge. Other expenses include the taxes and the purchase of the implements that aid in the pollution prevention process and also the cost that the company incurs in the management of wastes it produces.
The principles that fall in the environmental accounting towards the realization of the sustainability development are the as outlined below

2.1 Environmental Accounting Principles towards Sustainability Development
2.1.1 Global Environmental Accounting
The principle accounting covers the fields such as energetic, the ecology, and the economics that takes place all over the world.
2.1.2 National Environmental Accounting
The principles cover the environmental accounting methodologies in economics that only take place within a particular nation.
2.1. 3 Corporate Environmental Accounting
It aims to explain the structural costs and the resultant performance of the environment where the company operates.
2.1. 4 Environmental Management Accounting
It is a management accounting that deals with how a policy that relate to the environment conservation takes place and their implementation. The management adopts a deep evaluation and analysis of the findings for making decisions that contribute to the management of the company. The areas it majorly deals in are; Information that relates to the usage, flows and the resultant fate of the natural resources such as the energy, water and the waste materials at large. It also covers the information pertaining to the monetary issues that relate to the environmental costs and savings
2.1.5 Environmental Financial Accounting
It is a type of management accounting principle that seeks to provide the information needed by external stakeholders on the company’s financial performance. Management accounting principles makes it possible for the interested parties to develop an interest in knowing how effective the company operates.
3.0 How Sustainability Issues Are Incorporated into an Organization in Such A Way as To Create Competitive Advantage.
3.1 Competition
Competition in the business world is a process that entails the strategies and the methodologies that a given person or individuals use to outwit each in the area they are fighting for the control over. Competition among the companies does involve the need to contain the customers available in the market structure (Burritt, 2011).
Market in a simple definition is a collection of people with the same interest with the aim of involving in the transaction of goods and services for the exchange of money. In such environments, there exist various types of products and services with the same function. It is from this similarity of goods and services that; therefore, the producers or manufacturers of such products and services have to compete for the potential customers in the market. A firm in this case must come up with most effective strategies that can ensure it not to be competed out in the market structure.
3.2 Significance of Sustainable Competitive Advantage to Business Environment
It will ensure that the organization is in a place to counter the available competition within the existing environment without hitches.
It enables the company to come with new technologies and methodologies that ensure that its products do not get duplicated by the competing firms.
It also creates the room for innovation, expansion, and fulfilling of the policies that will be applicable for countering the future unnecessary completions from the firms producing the same commodities or products in the market system (Rikhardsson, 2005).
3.3 How a Firm Can Acquire a Sustainable Competitive Advantage.
A firm can only attain the sustainable competitive advantages over her competitors through the implementation of the strategies that tries to analyze the internal strengths. However, the issues pertaining to the environment also come in place to the realization the set strategies for attaining the sustainable competitive business advantage for a firm. The issues, therefore in question are;
3.3.1 Restriction from the Internal Weaknesses within the Firm
A firm is only able to attain a sustainable competitive advantage when it has the necessary resources and also able to improve their efficiency and effectiveness in a manner that the competing firms are unable to do. Such resources may either be tangible or non-tangible, all which may have a competitive advantage in the firm.
3.3.2 Human capital resource
It creates the solution and strategies that assist the companies at the times of searching the employees’ skills and talents that may make the company meet its objectives in the long run. Human capital is an essential component in this case for the production to achieve its success. Most businesses these days would love to employ such people with the necessary skills and knowledge in the area they are applying for in the firm (Rikhardsson, 2005). The employees should have the knowledge and skills in their area of work. They should also be intelligent enough with good judgment. They should also implement the expected positive outcomes to the company.
Companies too should also play their role in providing excellent remuneration package to the employees so that they get motivated and deliver their best in the services they offer to the company. However, such attributes and the objectives of both the employee and the company may only come to success through a sustainable business environment (John, 2012).

3.3.3 Physical Capital Resources
Companies must put lot investments in the modern equipment, plants, and also sophisticated technologies (Hopwood, Unerman, & Fries, 2010). Such initiatives will be for the betterment of the production process which in turn would become much efficient in the long run. However, the company can only realize such technological changes when it has the necessary capital.
3.3.4 Organizational Capital Resources
The elements in question are the managerial issues of the enterprise. Administrative issues are planning, controlling, coordination, and organizing of all components within the organization in an efficient way. They form the basis of the business in achieving its desired objectives which must also lie within the environmental conservation.
3.3.5 Organizational Culture
Today, the introduction of globalization trends is bringing reformations in the business. It, therefore, calls for most companies to have the knowledge of the culture they operate. The culture of operation may be the government, society surrounding the company and the culture in general that exists in their area of operation (Chapman, Hopwood & Shields, 2007).
3.3.6 Corporate Entrepreneurship
It focuses on the innovativeness, and the aggressiveness of the company to continuously introduce new products within the market system. Such aggressions by the enterprise must be in line with the sustainability of the environment min place. On and on the introduction of the products on the market by a particular company falls under the corporate competitiveness that such groups show in the market systems Corporate competitiveness in the long run transforms the company into one of the formidable determinants of the market structure in the area they compete in with other firms (Schaltegger, 2008).
4.0 Ways That Sustainability Initiative Directly Impact upon the Profitability of Organization Sustainable Business Operations
A business only operates in a sustainable environment that is conducive. The environment also ensures that the process of manufacturing, production and the processing of its said activities adequately. The firm achieves these objectives by following the environmental concerns in place while maintaining profit (Mitchell, Nørreklit & Jakobsen, 2013).
Sustainability business operations, therefore, entails the process of assessment of the design products that will utilize the present environmental situation. It also requires the evaluation of the best products of that particular company will fit the market structure about the available renewable resources.
4.1 Sustainability Initiatives towards Business Operations
In order for a business to realize profitability through the laid down sustainability initiatives, it must, therefore, consider the below factors;
4.1.1 Environmental Sphere
Any Business Company should strive towards the elimination of the effects that may pollute the environment under which the firm operates. The company should eliminate all forms pollution that may occur as a result of their production processes. Excessive pollution of the surrounding environment by company may cause a lot of expenses that may reduce its accrued profits from the production process. Therefore, the company should operate with the least pollution effects so as to limit or reduce the costs incurred in the conservation processes, thereby maximizing the profits earned from its production activities.
4.1.2 Triple Top-Line Value Production
It consists of three essential and simultaneous requirements for sustainability towards the realization of the profitability of the business. They include the financial benefits of the company and allowances to the community. It also includes the social benefits that the employees of the enterprise. The three measures are the same to the firm, of which all deserve equal attention of the enterprise for the realization of its profitability.
4.1.3 Nature-Based Knowledge and Technology
It involves the application of the modern world technologies which operate with the uttermost efficiency so that the production process occurs with the least cost involved mad also less adverse impacts on the environment at large. With the elimination of such expenses, the business would be operating along the conscious of profitability margins.
4.1.4 Products of Service to Products of Consumption
In this case, it entails recycling of the already used products in a bid to save the costs of acquiring the new raw materials which may be expensive. As such, the company will maximize the profits with also environmental conservation process taken into consideration too.
4.1.5 Solar, Wind, Geothermal and Ocean Energy
In this case, there is the advocating for use of the renewable resources that works towards the realization of a sustainable energy technology. Such forms energy like the solar, wind, geothermal and the tidal energy always fall in this category of the sustainable energy resources. They are easy to maintain and also have very minimal pollution effects to the environment. As such, the company realizes good profit when applying them in the production process.
4.1.6 Local-Based Organizations and Economies
It includes all the partners that work with the form in the environment where it operates for the realization of its success in its operations. Retailers, wholesalers, and the distributing agent are the principal players in this scene of ensuring the efficient distribution of the company’s goods and services. Efficient and reliable operation from these partners will ensure that the company operates with the least cost and also conserve the environment in place of the service (Hopwood, Unerman, & Fries, 2010).
4.1.7 Continuous Improvement Process
The success of any company must also entail continuous improvements and upgrading of its services to meet the present trend in the change of the market structure in place and also the requirements of the existing environment. The company should, therefore, adjust to such changes through upgrading of its existing resources of the production (Bebbington, 2007). The company in the end will find itself in the position of making real profits and also realizing the conservation of the environment in place.
5.0 Conclusion
The implementation of a sustainable business environment has both positive and the negative implications for the profits that the firm gets and also the entire financial impacts it comes with too. It is a challenge that must be given a lot of considerations since it determines the stability of the company in the financial scope. However, the considerations for the environment in place should also form part of such plans when a company draws its financial plan for the period it intends to operate. The firm should involve all the stakeholders including the employees, the community, and the management in place to realize the conservation of the existing environment. The stakeholders would be helpful in the plantation of trees in such areas where there are effects of the land dereliction due to the impacts of the company’s activities. The activities may include effects of dumping of wastes and garbage disposals by the manufacturing and the processing companies.
Through the involvement of the employees and the communities, the company will ensure that the stakeholders appreciate the need for the conservation of the environment. The company will also spend less in the process since it will involve the use the employees’ services and the free services of the community too (Schaltegger, 2008).
A company that carries out sustainable business operations does accrue a lot of profits due the advantage of the sustainable revenue opportunities. Therefore, other firms that have not adopted the initiatives of sustainable operations within their management should do so before late so that they can also realize the same benefits.

Bebbington, J. (2007). Accounting For Sustainable Development Performance. Burlington: Elsevier.
Burritt, R. (2011). Environmental Management Accounting And Supply Chain Management. Dordrecht: Springer.
Chapman, C., Hopwood, A., & Shields, M. (2007). Handbook Of Management Accounting Research. Amsterdam, NL: Elsevier.
Hopwood, A., Unerman, J., & Fries, J. (2010). Accounting For Sustainability. London: Earthscan.
John Y. Lee.,. (2012). Advances in Management Accounting. Emerald Group Pub.
Mitchell, F., Nørreklit, H., & Jakobsen, M. (2013). The Routledge Companion to Cost Management. Hoboken: Taylor and Francis.
Mudacumura, G. (2005). Sustainable Development Policy and Administration. Hoboken: CRC Press.
Rikhardsson, P. (2005). Implementing Environmental Management Accounting. Dordrecht: Springer.
Schaltegger, S. (2008). Environmental Management Accounting For Cleaner Production. [Dordrecht, Netherlands?]: Springer Science + Business Media B.V.

Financial Management

December 24, 2014

Financial Management
Name of Student
Name of Student

Financial analysis report
Mark Lewis has decided to invest his money but he needs help from us. With the information which he has provided we will help him make the best decision and make best of his money in placing it in the right place. Mark Lewis provided the following information to us:
He is 32 years old single male working in an advertising firm. He graduated 7 years ago before joining the firm where he currently works. He likes investing in the stock markets without considering whether they are productive or not. He earns £34,000 per year and a bonus of £1,900 yearly. He does not like saving because he feels that this is an area where much attention is required. The following shows how Lewis spends his money:
Food- £250 per month
Clothes- £110 per month
Miscellaneous- £104 per month
Car loan repayment- £250 per month
Rent and council tax- £900 per month
Travelling, motoring expenses- £240 per month
Socializing- £200 per month
Gifts and birthdays- £42 per month
Holidays- £150 per month
Utilities- £80 per month
Gym membership- £62 per month
Loan interest- £80 per month
Lewis spends a grand total of £2498 per month.

Lewis needs to save towards a deposit of a property which he wants to but in the future, he also wishes to join a pension scheme but he is in doubts whether to join or not and since he likes travelling he would like to take a trip once a year. He needs £2000 for this trip in a year. He does not have any saving plan that will see him achieve these goals. Our client’s goal is move to big firm with the prospect of more specialist work and a higher salary than he currently earns. He sees this coming through in a span of 18 months. After having detailed discussions with our client we realized that have no plans for a family yet and he keeps it as a possibility. With the discussions the client decided that he would like to have a saving of £40,000 towards the property which he plans to take in the future. In order to achieve this goal of a property the client has decided and show s willingness of saving £4000 a year towards that, and save £1000 per year towards his travelling.
From the information provided by our client, we learnt that he has invested in shares in various firms as follows:
a. Shortly after graduating he purchased Gilts which he considered to a low risk investment as follows; treasury 8% 2021 (nominal value £2000)
b. Invested 200 shares in Fidelity China Special Situation and Fund after reading it in an article 2 years ago.
c. Also he has quoted shares as follows
150 shares in Imperial Tobacco Company.
200 shares in BP shares.
100 shares in Centrica.

Investment portfolio

Following the discussions that we had with the client we learnt that he has bought a range of shares and he acknowledged that he had no coherent plan when he was making these investments. He also seems to be having knowledge about the investments and he requested to be enlightened on ethical investments and social impact investments and whether they can suit him. He also seems to know the existence of active and passive investments but does not know what they are.
Ethical and social impact investments
Following the development of ethical investments by the American pioneers in the 1970s and 1980s they came up with a term which was to be used instead of the ethical investments. This term was Socially Responsible Investments in which the term socially was later left out due to the fact that it is linked to socialism which was viewed with disbelief by the Americans. The SRIs in Europe and America differs in many various ways. Firstly there is a difference in the culture of business in both continents in that the American government is less involved in the corporations than the European countries. Secondly there is a strong health care and pension scheme systems than in America where people have to look for themselves (Hancock, 2002). The ethical practices have changed over time in both continents which focused on pension schemes, local community development, employee rights and health care (Schwartz, 2003) thus the word Socially Responsible Investments since all the aspects involved had a social value imbedded in them in America. These aspects did not receive much attention in Europe since most of them were integrated through social democratic governments in the society.
Ethical investing depends on one’s views; some may choose to ignore to invest in certain industries or choose to invest in industries that meet his/her ethical guidelines. Ethical investments is used interchangeably with social investments; social investment funds have overarching set of rules that are used in selecting the portfolio whereas ethical investments bring more personalized results. An ethical investment gives one the power to invest in companies that match their views, whether based on political, environmental or religious perspectives. To invest ethically one should write down areas which he should avoid and those that he/she wants to invest in.
On the other hand a social impact investment aims in generating specific beneficial effects socially or environmentally in addition to financial gain. A social impact investment is a subset of ethical investment but since ethical investments involves avoiding harm, social impact investments seek to make positive impact investment. A social impact investment involves different forms of capital and investment ways. Social impact investments are done through institutional investors where a range of social impact investment companies, investor networks and web-based investment platforms offers an i9ndividual with an opportunity to participate in social impact investments.
Active verses passive investments
Following our discussions with the client he showed having an idea of the existence of active and passive investments. Active investments involve buying and selling of stock by the investors where active investors purchase stocks and monitor them continuously in order to exploit profitable conditions whereas passive investments involve limited buying and selling of stock by investors. A passive investor buys stock with an intention of long-term appreciation. Unlike passive investments where the investors invests in stock only when they believe that it will appreciate in the long-term, active investment is highly involved since the active investors monitors the movement of the stock prices in the market many times in a day, thus they seek for short-term profits than the passive investors who seek for long-term profits.
A passive investment which is also known as buy-and-hold among the investors requires initial research, a patient investor and a well diversified portfolio. Unlike active investors who buy a security for short-term profits, passive investors rely on the belief that the investment is going to be profitable in the long-term.
Following the clients financial status and goals of buying a property in the future, joining a pension scheme and saving enough cash of £2000 per year for his travels, we de have decided to invest his first year’s savings of £4000 in stocks and mutual funds in the following rationale:
We saw it better for our client to invest a total of £4000 in both stocks and mutual funds in a year. We split the £4000 as follows £3000 in stocks and £1000 in mutual funds. Since we took our client to be young that is why we thought it will be good for him to invest £3000 mainly on stocks. This was also reached because he will have all the time to regain his financial position in case he does lose his money from his investments, even though we do not doubt our choices for him. Because he has a goal of buying a property in the future we chose to use £1000 of our client to invest in mutual funds that are registered retirement savings plan eligible. The reason we chose only £4000 per year for his investment is because we kept the option of him having a family open.
Also following the client being cautious to risks we decided to take £65,000 inherited money to invest in fixed income instruments and also in mutual funds. We came to the decision of investing his money in fixed income to be best for him since we felt that this is the best asset allocation for his money due to the low return on this money. And this allocation offers a high return than the saving account which he has taken. The fixed income investment provides a continuous income from the investment and remains fixed over time and offer a fixed interest. This investment also has a low risk which the client likes. Our client will not lose his shirts incase anything happens to his investments. In our first investment decision for our client, the consistency of the stocks that we chose is important for him. This is because he needs to invest in stocks that are not choppy; this is to ensure that the money of our client is not at risk.
We have chosen to invest Lewis’ savings of the first year of £4000 in stocks and mutual funds (£3000 and £1000 respectively). The rationale of our choice of stocks and mutual funds is as follows. We did not compare the rate of returns in selecting the mutual funds and in analyzing the stocks that we chose for our client we did not analyze the financial fundamentals of the companies that we chose. We chose to maintain the companies that he has already bought stocks but to increase the number of holdings in them. This is because he has not complained about them. Therefore, we saw it best for him to increase the holdings. This is how we chose to invest the money in the existing companies which he already has stocks in.
Price per share
Share to be bought
Fidelity China
£ 169
£ 845
Imperial Tobacco Company
£ 157
£ 1570
BP Shares
£ 250
£ 1
£ 335

Following a close examination of the client’s details from the information he gave us I will strongly recommend for him the following:
c.i) Aviva’s personal pension plan for him since it allows only £150/month and a wide range of funds to invest in (Aviva, 2012)
c.ii) Due to his future plans of owning property I will recommend him to take a mortgage.
c.iii) Use the money that he inherited to set up an emergency fund. I recommend him to deposit the money in Barclay’s Cash saver account that is tax efficient.
c.iv) To have a long-term saving plan also in the Barclay’s cash saver account since it is easily accessible and charges a tax of 2.2% in a year.
c.v) In his income and expenditures I will recommend the following;
To pay off his debts
To cut off some expenditures like the gym membership and miscellaneous. This will give him a higher disposable income in each month (Butler, 2012). I will also recommend that he buys an income protection insurance policy. This will enable him to receive some claims from the company in case he gets ill and does not go for work. I will also recommend taking this policy from the Aviva (2012).
c.vii) Since he has shown interest in the stock market I recommend him to be a passive investor because of the long-term interests that comes with it.
Since the client inherited some money from his relative then it is important to ensure that his will is legal and agreed as to the amount of inheritance tax (UK government, 2012). If the client will take my recommendations he will then find it necessary to take a mortgage. He will also have to make a will so that he will decide how his assets will be distributed in case he dies and how who will inherit his amount of the life assurance policy (Butler, 2012). He can write the will himself or ask for a legal advice.

Aviva (2012) Income Protection [online] Available from: protection/ [Accessed Dec, 2014].
Aviva (2012) Personal Pension [online] Available from: [Accessed Dec, 2014].
Aviva (2012) Stakeholder Pension [online] Available from: [Accessed Dec, 2014].
Barclays (2012) Investment ISA (Stock and Shares ISA) [online] Available from: P1242586422530 [Accessed Dec, 2014].
Barclays (2012) ISA Saver – Issue 2 [online] Available from: s%3AH1242557860616 [Accessed Dec, 2014].
Butler, J. (2012) The Financial Times guide to wealth management: how to plan, invest, and protect your financial assets. Hampshire: PEARSON EDUCATION LIMITED
UK government (2012) Making a will [online]. Available from: [Accessed Dec, 2014]
UK government. (2012) State Pension calculator [online]. Available from: [Accessed Dec, 2014]

Triple Filtration in One Pot Ionic Liquid Pretreatment for Biomass

December 24, 2014




Topic: Application of triple filtration in pretreatment and saccharification of ionic liquid



Instructor’s Name:















Background information and significance

Different membrane technology methods have been used in bioethanol production process using one pot method of pretreatment. The difference in these methods is the impact, and the procedures followed. Depending with the objective of the approach used, membrane titration methods have both advantages and disadvantages. They also have different impacts to the environment, economy and the social relations. This proposal, therefore, seeks to explore triple filtration methods and the impacts that it makes on different areas that it affects during production of bioethanol.

Pretreatment is any treatment process that takes place in a substance before other processes takes place (Samuel et al., 2011). It is carried out so as to remove substances that are not required or may hinder the success of other processes taking place after the pretreatment. This process is significant in alteration of the structure of the ionic liquid biomass, in this case 1-ethyl-3-methylimidozolium acetate. The ionic liquid is composed of different layers that differ both chemically and structurally.

The difference in composition of ionic liquid makes the interaction and organization of the structure of the polymer to become recalcitrant to enzymatic degradation. It is, therefore, a significant process in making the ionic liquid accessible to the adsorbates that enhance the degradation process enzymatically. The cellulose lignin seal is broken down, and its crystalline structure is eventually distorted. According to Karki et al. (2011) this pretreatment process is carried out on the basis of a dilute acid. The acid is used in the recovery and concentration that enhances the extraction of sugars using triple filtration.

In this pretreatment process, saccharifiaction is applied to degrade the ionic liquid enzymatically. Saccharification is a hydrolysis process that involves the cleavage of chemically combined bonds through addition of water in which a substance is broken down into its constituent molecules. These two processes, therefore, stage an approach that describes how triple filtration is used in one pot ionic liquid pretreatment for saccharification in the production of bioethanol (Karki et al., 2011).

Filtration is a mechanical operation that is applied in the separation of solids from fluids. The fluids are either liquids or gases. The two entities are separated by interposing a medium that allows only the fluid passage. A technique in this field, triple filtration has been applied in the extraction of sugars from the cellulose. Considering the challenges met in other in one pot liquid pretreatment with the saccharification, triple filtration has been applied in several ways in bioethanol production. The water present in the cellulose lignin undergoes sequential triple filtration and is filtered from the cellulose medium. It is, therefore, a significant process in the solvent extraction that enhances the purification of the residue. The residue, cellulose undergoes purification to remove the molecular cellobiose impurities. These impurities originate from saccharification and pretreatment process and their presence serves as a hindrance to efficient production of bioethanol. Triple filtration, therefore, ensures that the residue is as pure as possible to enhance effective levels of production of bioethanol (Yoza et al., 2013).

Current challenges and limitations

Despite the fact that one pot ionic liquid undergoes pretreatment and hydrolysis for efficient and effective bioethanol production, the process is met with several challenges and limitations. These challenges include:

In the hydro state, the present enzymes and particulates are not removed. The enzymes and the particulates mix with cellulose in the pretreatment and hydrolysis steps of production. This affects the purity of the bioenergy which to some extent affects the yield of production of energy.

In addition, in bioethanol energy production, there is inhibition to accessibility of the enzymes during the pretreatment process. This hinders the conversion of cellulose lignin into glucose as there is a converse enzymatic degradation of the hydro state (Okushita et al., 2012).

The presence of a product inhibiting factor also continuously hinders the conversion of the cellulose and the solvent extraction of lignin from the ionic liquid in this case, 1-ethyl-3-methylimidozolium acetate.


The application of triple filtration method assists in finding a solution for some of these challenges experienced during the hydrolysis and saccharification processes. The objective of this proposal is thus to ensure production of bioethanol with minimum costs and high output whose adverse effects are minimal if not none. Prior to this objective, various strategies have been applied from triple filtration method in the pretreatment and saccharification steps of ionic liquid to counteract the challenges and limitations of these processes (Okushita et al., 2012).

Among these strategies, triple filtration is an effective method of reducing the crystallinity of the cellulose. This can be greatly applied in increasing the accessibility of the enzymes that enhance the degradation of the product cellulose into glucose. This favors the rate of bioethanol energy production.

In addition to this, triple filtration can be applied to reduce the inhibition of the product by removing the final product of the glucose continuously. The element that this process takes place in three steps makes it very efficient to remove any final product of the glucose that may hinder the output of bioethanol. The investigation of the inhibition of the product is done by use of membrane reactor (Samuel et al., 2012).

The method is also very applicable in delignification of the cellulose. Delignification is a process that involves total or partial removal of lignin from a lignin containing substance by the action of applying the appropriate agents. The extent in the concentration of the lignin is a decisive agent in determining bioethanol production from glucose.

Expected outcome and environmental, economic and social benefits

Economic benefits

Triple filtration reduces the cost of treatment of waste water. This is because the fact that water is being recycled using efficient and effective methods assures its purity that decreases the costs incurred in its treatment.

On the other hand, the application of triple filtration reduces the costs of the enzyme. Unlike other methods of filtration in the membrane based theory, this technique increases the accessibility of the enzyme during the enzyme degradation process. This implies fewer amounts of the enzymes are used which consequently decreases the cost of the enzyme input (Mori et al., 2012).

In general triple filtration is a cost competitive method when compared to traditional methods of bioethanol production.

Environmental and social benefits

The use of ionic liquids in triple filtration is environmental friendly. This implies that none of the by-products produced from the ionic liquid is harmful to environmental health. Socially, this creates an environment that is favorable for survival of all living organisms as none is endangered by the use of ionic acids (Yoza et al., 2013).

Moreover, triple filtration reduces the amount of water consumed. Carrying out filtration thrice implies high volume of the filtrate from which water is recycled hence reduced fresh consumption.

To enhance better yields, it is very important that the enzymes be improved so that the rate of conversion increases. Triple filtration can also be improved by adding a membrane reactor like the one used in Nanofiltration to remove the inhibiting product more effectively.


Karki, B., Maurer, D., & Jung, S. (2011). Efficiency of pretreatments for optimal enzymatic             saccharification of soybean fiber. Bioresource technology102(11), 6522-6528.

Mori, T., Chikayama, E., Tsuboi, Y., Ishida, N., Shisa, N., Noritake, Y., … & Kikuchi, J. (2012).      Exploring the conformational space of amorphous cellulose using NMR chemical   shifts. Carbohydrate polymers90(3), 1197-1203.

Okushita, K., Chikayama, E., & Kikuchi, J. (2012). Solubilization mechanism and characterization of the                structural change of bacterial cellulose in regenerated states through ionic liquid             treatment. Biomacromolecules13(5), 1323-1330.

Samuel, R., Foston, M., Jaing, N., Cao, S., Allison, L., Studer, M., … & Ragauskas, A. J. (2011). HSQC             (heteronuclear single quantum coherence)< sup> 13</sup> C–< sup> 1</sup> H correlation spectra of whole biomass in perdeuterated pyridinium chloride–DMSO system: An effective tool        for evaluating pretreatment. Fuel90(9), 2836-2842.

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Lenovo: Chinese multinational Computer Technology Company

December 21, 2014





Lenovo: Chinese multinational Computer Technology Company







Institution +Date


Course Details


Date Submitted


Table of contents

Introduction ……………………………………………………………………………………………………………..4


Political forces both national and International……………………………………………………5

Social factors…………………………………………………………………………………………………..5

Technological forces…………………………………………………………………………………………6

Natural forces……………………………………………………………………………………………………7

Economic forces………………………………………………………………………………………………..7

Micro-environment of Lenovo ………………………………………………………………………………………7






SWOT Analysis of Lenovo…………………………………………………………………………………………….9

Strengths of Lenovo……………………………………………………………………9

Weaknesses of Lenovo …………………………………………………………………………………….11

Lenovo’s opportunities…………………………………………………………….…………12


Marketing Strategy of the Lenovo…. ………………………………………………………..14


List of references…………………………………………………………………………..…17














Lenovo: Chinese multinational Computer Technology Company


Lenovo is a Chinese global computer technology business corporation with headquarters in Beijing, China, Morrisville, North Carolina, and the United States (About Lenovo 2013, 32). Lenovo designs and develops personal computers, smart-phones, workstations, smart televisions, and electronic storage devices. In 2013 Lenovo became the world’s largest personal computer vendors ( 2014). Lenovo also deals in ThinkPad line of notebook processors and Think Center desktops (Fletcher et al., 2011, 23).

According to Armenakes and Bedeian (1999) successful organization is characterized by how well it regulates its tangible and intangible properties to cope with its environment. This paper analyses the micro and macro external environmental forces that affect of Lenovo. In order to effectively understand both the macro and micro environment of Lenovo, and to finally justify a forward strategy for the organization, the PESTEL and the SWOT strategic analysis would be used. PESTEL is a contraction for Political, Economic, Socio-cultural and Technological Environment (Collins). It is a useful analytic method for understanding political, economic, socio-cultural and technological environment within which it Lenovo performs. On the other hand SWOT is an acronym for Strength, Weaknesses, Opportunities, and Threats. The findings will be used in formulating strategies that Lenovo will use for future success, by evaluating market development or decline, and finding company’s strategic market position. According to Dillerup and Stoi (2006) an organization can secure its success in future by adopting strategies that take advantage of its environment.


According to Jeffs (2008) macro-environment encompasses the external forces that an organization cannot directly control; rather an organization can strategise to make fair advantages out of them. These forces, Political, Economic, Socio-cultural and Technological, influence an organization’s performance.

Political forces both national and International

Making the scientific industry bigger and stronger has been the focus of Communist Party of China (CPC). This was stated by the party’s General Secretary through the scientific development forum (Gupta & Rigby 2013, 76). This has shown greater consideration and promotion of scientific research by the Chinese government. This shows that Lenovo is thriving in a politically enabling environment favouring the internationalization vision target of Lenovo.

International business environment is complex. It is an embodiment of economic, political, socio-cultural and technological influence. All these factors are interrelated through globalization. World Trade Organization’s core objective has been to restructure trade liberations to sustain collective international growth (Lenovo; Investor relations 2013, 25). Global diversity shapes the Lenovo strategies, required to respond to the rapidly changing technological environment. Trade Policy Review (TPR) of China highlights the key role the World Trade Organization’s trading policies play in increasing transparency, and facilitating discussion with WTO members in order to avoid misinterpretation and trade disputes when trade friction occur. This has helped Lenovo in expanding its trade to large international markets in Asia and Russia. A well-functioning bilateral trading system has contributed considerably to China’s sustainable economic expansion and development from the recession that struck it in 2008. The Government of China has responded to Trade challenges by establishing expansionary fiscal and financial policies, a as well as Y4 trillion (13% of 2008 GDP) incentive package (Lenovo; Investor relations 2013, 53). China has invested in gradual liberalization of its trade. The government has incessantly reduced authoritarian and other barrier to trade through custom procedures, procedural regulations, certifications, import licensing, and export boundaries focusing taxes and partial VAT rebates. China’s indigenous innovation regulations and their impact in restricting right of entry for foreign products in technology while promoting indigenous creativity has made Lenovo increase its production for the electronic demand within china and other nations.

Social factors

The success of an organization depends on the social trends, views and adjustment towards the consumption of the products it produces. China is a big market for computer based products, considering the country’s population and its ever evolving development in computer technology. Lenovo being a native enterprise in China is well established and enjoys the large China market. Lenovo stretches its markets to the most populous markets in the world, Russia, India and Brazil, which have strong purchasing power and good recommendations on China based products. Lenovo produces electronic products full of leisure, considering electronic games. China having a large population has a big number of youths who pay much attention to leisure and spend on leisure oriented electronic products (Lenovo annual report 2013, 85).

Technological forces

Lenovo enjoys immense technological environment favoured by the political influences. The government favours international acquisition of other technologies such as the IBM, Medion and CCE. These are advanced technologies that supply Lenovo with required electronic products.

Natural forces

Beijing, Shanghai and Huizhou are the location for the production base of Lenovo, cities convenient for transportation and distribution of Lenovo products. In addition, China is rich in natural human resource with sound interest in technology. This has boosted Lenovo in designing, developing, manufacturing, and selling personal computers, tablets computers, workstations, smart-phones, servers, and electronic storage devices.

Economic forces

In the previous years in China there has been international financial predicament that has lead to a worldwide fluctuation in the market. This resulted into a decrease in the purchasing power of consumers who spent less in IT and commercial PC. However, the China’s economy has been steadily growing according to the WTO’s concerns. This has given the population purchasing power that favours Lenovo (About Lenovo 2013, 27)

Micro-environment of Lenovo

A micro-environment consists of diverse stakeholders outside the company. The micro-environment is a constituent of customers, suppliers, creditors, distributors, and dealers. They form its ability to serve the customers. The micro-environment is an external environment to the company as they do not directly control the company, but the company’s management can actively control them through its policies and strategies. (Dr. Karminder Ghuman 2010, 37). The micro-environmental forces that influence the success of Lenovo involve Employees, Suppliers, and Customers.


Employees are the potential human resource of a company. They are critical to any success that can be realised by the Lenovo. The success depends on employing innovative, inventive, and pioneering staff, and self motivated to work in accordance with the mission of Lenovo and to achieve its visions.


Suppliers are those who make available goods and services which are transformed into value by an organization.    Lenovo gets its supplies from companies such as Shenzhen Smart Technology which supplies Lenovo with smartphones and other products (Lenovo 2013, 35)


The customers make the Lenovo market. The major markets of Lenovo are in India, Russia and China itself. Lenovo has made good marketing in Africa as well. India and Africa have been significant to Lenovo due to their low purchasing power, given that Lenovo products are low priced compared to other products from other states like the European countries and the US


Stakeholder is a group or entities who have interest in the company, and whose action influences the organization directly or indirectly (Freeman 2013, 53). Shareholders cause pressure on the company to make profit. Every decision made must involve the interest of the company.


Positive attention of media on the products promotes the company. An organization must manage every media that tends to promote its product. Media help in establishing Public Relationship with the company. Television, for example has a wide and a more direct audience. The modern media that Lenovo exploits for marketing include facebook, twitter, and youtube in addition to the traditional televisions. Companies that do not have access to ever-growing China’s score lowly in marketing. Lenovo controls the its marketing through such media.

SWOT Analysis of Lenovo

After analysing the external environment of Lenovo, in order to develop a strategic plan that will respond to its changing environment, it is imperative that a focus on its Strength, Weaknesses, Opportunities, Resources, and Threats, from which the construction of SWORT is obtained, is carried out for strategic analysis. Professor Les Worrall of Wolverhampton Business School attributes strategic analysis of an organization to the process that involves the detection and evaluation of information about its environment relevant to strategy development using a range of analytical methods (Matthew 2007, 25).

Strengths of Lenovo

Vertical integration: In an organization’s management, vertical integration is an understanding in which the supply chain is partially or wholly owned by the company (Folsom 2007, 94). In common practice the supply chain different market-specific products that at the end satisfy a common requirement (consider horizontal later). Vertical integration has helped Lenovo in avoiding the hold-up problem. According to Rogerson (1992) hold-up problem arises when two parties say Lenovo and its suppliers work efficiently by cooperating but at a time refrain from doing so doing to the ill idea that one may give the other party an improved bargaining power, and thus reduce its own profits. Lenovo’s approach to vertically integrate has been fruitful. The company has been capable of keeping low costs, keep up with both domestic and international competitions while relying less on original equipment manufacturers (OEM)

Good brand recognition and traditional reputation

According to Keller (1993) brand recognition is the degree to which a brand is recognized by a prospective customer. Brand recognition is the key goal for advertisement, promoting a brad by attributes (Percy & Rossiter 1992, 42). Due to Lenovo’s manufacturing of good quality electronic products, the China market easily recognizes its brands. Lenovo as a company has the full knowledge of the market trends. This has made it emerge in China market and continues to be one of the biggest in the domestic market. The firm’s familiarity with the China’s market and the capacity to satisfy Chinese feel has resulted to the wide reception and support for the company’s products.

Low cost production

Low-cost manufacturers utilize economies of scale so as to implement their strategies of low prices. Consumers who are keen at realizing price fluctuations are likely to shop at shops that offer the lowest prices, if the products in the market are of quality and relatively homogenous. Lenovo manufacturers have set nearly half of its hardware in low cost counties such as China, Brazil, and Argentina in order to benefit from higher market margins. Even though the prices are low, the products are price competitive (Lenovo 2013, 254).

Competency in Mergers and Acquisitions

According to Rumyantseva et al (2002), Mangers and Acquisitions (M&A) are all facets of Strategic management, corporate economics, and management concerned with buying, selling, dividing and uniting of diverse business institutions and alike entities that can assist an enterprise grow speedily in its sector. Lenovo continuously acquire firms in order to bring patents, new capabilities, resources and skills to the business. Through flourishing acquisitions and combined ventures, Lenovo expands its markets and distribution networks. Compaq is one of the notable acquisitions in the current years (Gupta & Rigby 2013, 52). By acquiring Compaq and Stoneware, and the use of other firm’s R&D, Lenovo has got together a strong patents portfolio associated to its PC and software business.

Weaknesses of Lenovo

According to Mehta (2000), a conversion strategy should be adopted after strategic analysis in order to formulate strategies that can secure the positive development of a company. This involves the conversion of weaknesses or threats in to opportunities or strengths. Business weaknesses are embodiments of features that put the company in a disadvantage strategic market position relative to others. Lenovo’s weaknesses include:

Poor brand perception in the developed economies

The world perception of the idea “China Made” is a big weakness of that Lenovo faces in the developed world market. Lenovo’s main market outside china is Asia, where the company sells most of its products. It is not easy for Lenovo to market in US and the Europe make where its brand perception is low.

Low differentiation

Lenovo’s products are not far much differentiated from other competitors’ products (Lenovo annual report 2013, 05). This presents a competitive difficulty to the company, and especially when other companies also lower their products’ prices.

Lenovo’s opportunities

Business opportunities involve elements that the company can exploit to its advantage (Menon et. al., 1999, 24). Identification of opportunities and threats is important for the organization since they are essential for informing future strategies that can be implemented to achieve its objectives for future success (Collis & Montgomery 2008, 87). Lenovo’s opportunities include:

International expansion

The company has a significantly growing India’s Smartphone market. India’s computer and Smartphone market is currently least penetrated by the by the US and European manufacturers among Asia and Pacific countries. Due low pricing and the low purchasing power of the bigger population in India, Lenovo can easily penetrate the market, as the population can afford low priced electronic products (Lenovo annual report 2014, 35). African states are also crippled economically and may not be in a position to purchase expensive Smartphone from US and other states in Europe. Lenovo can make its expansion to Africa and become a global seller.

Growth of tablets market

Lenovo has made most sales of tablets; it is currently ranked as the 4th biggest seller. By introducing better quality products Lenovo can increase its market shares. It can take the opportunity to become the best world tablet seller.

Obtaining patents through acquisitions

Lenovo can sustain its growth by obtaining more patents though acquisition of firms holding them like it did with IBM’s Compaq.


According to Menon et al. (1999) business threats involve external environmental elements that could cause trouble to the company. It embodies what the company faces, what the competitors do public brand perception, technological changes, and other identified weaknesses. The major Lenovo’s threats are the currently emerging low priced electronic products in the world. Other shoppers occupy the low purchasing power market that Lenovo has monopolized for some years. Other threats include:

Slowing growth rate of the laptops market

The rate of growth of the computer market is diminishing as the market becomes saturated. Expanding a saturated market will not be easy for Lenovo; this will also lower its growth in market share. Saturation is already taking place in developed countries. It will not be easy for Lenovo to expand its markets to developed countries such as US and European countries where the products are also associated with low quality (About Lenovo 2013, 29)

Rapid technological change

This is a common threat though, among the computer related products sellers. Companies are under high pressure to produce new products with most modern technologies. If Lenovo fails to satisfy this demand in the countries where it sells its good s then it will not be able to compete fairly, given that other companies are also working hard to produce low priced products. The company also faces strong competition in all its business segments. It competes in terms of price, quality brand, rapid technological changes, reputation, distribution, and range of products with well Western and European companies that produce of products, with Acer, Apple, Dell, HP and Toshiba from Japan.

Marketing Strategy of the Lenovo

Both PESTEL and SWOT frameworks have been used to strategically analyse Lenovo’s micro and macro environmental forces as well as its strengths, weaknesses, opportunities, and threats that shapes its performance both in the national and international market. Chermack et al (2007) propose that SWOT analytical framework facilitates the organization of information that provides clear insight into an organizations strategic plan. SWOT model facilitates the conversion strategies used in converting weaknesses or threats in to opportunities or strengths. This conversion is applicable in formulating strategies that Lenovo should respond to effectively in order to prosper in its first changing technological environment.

American Marketing expert, Boughton (1964) formed the marketing mix model. The model is used in optimizing the various controllable environmental forces for the purpose of achieving organizations marketing goals. The model facilitates the identification of strategic marketing choices. Strategic choice involves an organization choosing an activity out of several possible actions with an aim of formulating strategise for countering potential threats (Macmillan & Tampoe 2000, 132).

Target marketing strategic choice for LenovoBrand awareness

With regards to the SWOT analysis above, the best options Lenovo should take are those options that will ensure that it gets successful in marketing by converting its weakness to opportunities and strength through; through brand awareness and international expansion. In a competitive and fast changing market environment effective brand awareness is a critical marketing to counter low differentiation and market saturation.

By definition, brand awareness is the proportion of a target population who know Lenovo exists and the services and products it offers. Increasing brand awareness is a critical strategy for changing the attitude and perception the market have towards the products of Lenovo. It also helps in making the potential market know that Lenovo is working hard just to serve. It is no doubt that brand awareness and brand loyalty are the two most significant variables in marketing. Brand marketing partly promotes brand loyalty.

In order that Lenovo expand its brand awareness, the company should do a survey in order to know how well its target market in Asia and Africa know about its products. From this survey Lenovo should do intensive and extensive Integrated Marketing Communication using media in order to sell its products by changing the market attitude from viewing products from as valuable. Lenovo can use the phrase “Not Just China but Lenovo”. This should be aimed at embracing the misconception on China made products and hence distancing itself from them in the global market. It is practical to increase low brand awareness by 100 to 200% with an intensive and extensive marketing campaign using the available media.

There a number of strategies that Lenovo can use in increasing its brand awareness. The tactics will enable the brands to be and the message being passed to be seen by many people over a long a time. These strategies should include the use of outdoor billboards, banners and posters that are constantly seen by many people throughout the day and throughout the months. Over these periods the majority of the target market will get to know about the Lenovo products. The use of international Television channels over time will also help Lenovo in its target market.


Lenovo faces real micro and macro environmental forces that influence its strategic plans and its future success. The company’s long term expansion is inseparable from a combined and correct guiding ideology drawn from constant strategic analysis using such frameworks as SWORT and PESTEL. Using information from these strategic analyses Lenovo will be able to create a sound management framework capable of guiding the company’s direction of development. Brand awareness is a specific marketing strategy that Lenovo can employ to in order to make its products known in the competitive market of computer products. Effective marketing will raise its market strategic position.








List of references

“Our Company”. About Lenovo. Lenovo, 2013. ‘we have headquarters in Beijing, China and Morrisville, North Carolina, U.S’.

Chermack ,T. J. Bernadette K. K. 2007, “The Use of and Misuse of SWOT analysis and implications for HRD professionals”. Human Resource Development International 10 (4): 383–399.

Collins, R. 2014, “A Graphical Method for Exploring the Business Environment”.

Collis, D. and Montgomery, C. 2008, ‘Competing on Resources’.Harvard Business Review July–August 2008 pp140-150.

Dillerup, R., Stoi, R. 2006, “Unternehmensführung”,Vahlen, p. 179 et seq.; p. 187 et seq.

Fletcher, O., Shara T.,Nathalie T. 2011, “Lenovo passes Dell to become world’s No 2 PC maker”. MarketWatch

Folsom, B. 2007 pg 65, The Myth of the Robber Barons 5th edition”only we can develop ability and hold it in our service. Every year should be marked by the promotion of one or more of our young men.” 2013, “Gartner Says Worldwide PC Shipments Declined 6.9 Percent in Fourth Quarter of 2013”. Retrieved 2014 -8 -December

Gupta, P. and Rigby, P.2013, Lenovo entering ‘PC plus’ era, CEO says. Available at:

Jeffs, C. 2008, “Strategic Management”, SAGE Publications Ltd., p. 29 et seq.

Johnson, G., Whittington, R. & Scholes, K. 2011, Exploring Strategy: Texts and cases.9th ed. Harlow, Prentice-Hall Europe. (chapter two)

Keller, K. 1993, “Conceptualizing, measuring, and managing customer-based brand equity”. The Journal of Marketing 1 (22).

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Menon, A. et al. 1999, “Antecedents and Consequences of Marketing Strategy Making”. Journal of Marketing (American Marketing Association) 63 (2): 18–40. doi:10.2307/1251943. JSTOR 1251943.

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Wikipedia, 2013, Lenovo. Available at:












Appendix A Lenovo ownership

Lenovo is not a state owned enterprise. The CEO Yang Yuanqing clarifies this issue as the public more often take it for a state entity. As at October 1, 2011 the general public held about 58% of Lenovo stock. The Legend Holding Limited, a shareholder had its 34% of stock value while 8% was held by other entities. In 1984 Chinese Academy of science invested about $25,000 in Lenovo. Lenovo is no longer part of the academy however.

Appendix B: Corporate culture

Lenovo’s corporate culture is different from other companies in China. While the company was founded from the state seed capita, Lenovo runs a private enterprise with little state interference. The senior executives involve many non-Chinese. Major headquarters are in Beijing, Morrisville, and North Carolina. Two western nationals have served in Lenovo’s Executive committee.

Appendix C: Micro and Macro environmental forces influencing performance of a firm

Figure 1

Figure 2

business 2000 2day

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Through sound information, individual and group understanding and right corporate choices, business sagacity can have a strong effect on organization success. Coordinating prescient investigation inside applications while assembling cutting edge client encounters is enter in that it permits an organization to development through measuring components of business that can be moved forward. It is likewise paramount for organizations to remember that it is more than likely that their rivals are using business insights instruments. Not exploiting accessible information mining innovations can be adverse to keeping up an aggressive edge.

Whether a business is trying to develop, spare cash, or addition further organization understanding, business knowledge is a vital business device for picking up granularity with respect to measuring and comprehension diverse measurements of the association. Having the capacity to concentrate genuine information utilizing existing business procedures is a paramount piece of what makes business insights work.

The key component behind what makes the information compelling is that the organization’s information is sorted out and consequently produces reports that give the diverse subtle elements important to settle on educated choices and enhance business. Organizations that use BI have an essentially more prominent potential to make disclosures that can prompt new or expanded benefits, keen choice making, and bringing down of association expenses through enhanced regulatory administration.

Business sagacity (BI) is an umbrella term that incorporates the applications, base and devices, and best practices that empower access to and investigation of data to enhance and upgrade choices and performance1. Despite your association’s size, there are a few decent markers that a business insights stage may be the right answer for your business. They include:
• The need to coordinate information from different business applications or information sources
• Lack of perceivability into the organization’s accounts and operations
• The need to get to important information rapidly and effectively

• Rapid organization development or late organization merger/obtaining
• Introduction of new items
• Upgrades inside the IT environment
• Business knowledge apparatuses aren’t valuable to simply business experts, yet IT experts apparently equivalent. Such devices permit IT to have understanding into their operations and make recommendations for upgrades, which help to accomplish business objectives all the more effortlessly and all the more proficiently. The reason for BI is to help business choice making through ongoing, intelligent access and examination of imperative corporate data. A fitting BI framework assists with getting the right data, at the ideal time, in the right organization crossing over the crevices between data storehouses of an association. The following are four advantages offered by executing business insights into your current base:
1. Consistent data offering: BI makes it straightforward for everybody inside an association to get to and break down exceptional data from anyplace, whenever. It takes into consideration better choice making at a speedier rate.
2. Rearranging coordinated effort: Having a focal area permits you to screen key execution markers, examine information, and access reports.
3. Convey reporting: BI devices make it simple to track and dissect Kpis against key business objectives to increase a superior understanding of how the association is performing and approaches to decidedly affect that execution
4. Produce data representation for visual understanding: For business and IT experts who learn and disguise data in a more visual way, business insights may have an advantage that different types of information accumulation.

Work cited

Freedman, Lawrence Strategy. Oxford University Press. ISBN 978-0-19-932515-3. (2013).

Mintzberg, Henry and, Quinn, James Brian The Strategy Process:Concepts, Contexts, Cases.

Prentice Hall. ISBN 978-0-132-340304. (1996).

Porter, Mortes. Competitive Strategy. (1980).

Barney, J. B. Firm resources and sustained competitive advantage. Journal of Management,

17(1): 99–121. (1991).

Kvint, Vladimir The Global Emerging Market: Strategic Management and Economics.

Routeledge. (2009).

Rumelt, Richard P. Good Strategy/Bad Strategy. Crown Business. ISBN 978-0-307-88623-1.


Henderson, Bruce“The Concept of Strategy”. Boston Consulting Group. Retrieved 18 April

  1. (1981).

Liddell Hart, B. H. Strategy London:Faber, (2nd rev ed.) p. 3219 (1967)

Giles, Lionel The Art of War by Sun Tzu – Special Edition. Special Edition Books. 2007.

Porter, Michael E. Competitive Strategy. Free Press. ISBN 0-684-84148-7. (1980).

Kiechel, Walter. The Lords of Strategy. Harvard Business Press. ISBN 978-1-59139-782-3.


business 2000 2day

December 16, 2014





Numerous organizations begin as one individual’s thought. The maker is frequently a business person who detects a crevice in the business or a business opportunity. S/he transforms the thought into an attractive item or administration. There are four fundamental sorts of business: assembling, wholesale, retail and administration. The notoriety of a business is vital to its survival. The trust and certainty of the buyer can have an immediate and significant impact on an organization’s primary concern. As of late, the criticalness of notoriety has gotten to be progressively evident, as organizations, for example, BP and Toyota have needed to develop their reactions to emergencies so as to keep up the notoriety and remaining of their organizations to the world.

Previously, organizations depended on verbal exchange by their stakeholders to make, assemble and keep up their notorieties. In this cutting edge time of long range informal communication, sites, and different strategies for moment correspondence, organizations must be reliable of their notorieties on a consistent premise and be receptive to any emergency that may have an effect on their notoriety.

While an immaterial idea, having a great notoriety can advantage a business in a large number of ways including: purchaser inclination; help for an association in times of emergency or contention; and the future estimation of an association in the commercial center.

On the off chance that an association has a decent notoriety in the commercial center, customers may have an inclination for that organization regardless of the possibility that there are comparative organizations offering the same items or administrations at distinctive costs. The notoriety of an association can empower an organization to separate its item in profoundly focused markets, permit it to have premium estimating, and can turn into a definitive variable in whether a client chooses to disparage one business over an alternate.

Business discernment (BI) keeps on positioning high on the need rundown of most associations, however “examination” has the more prominent star force. BI, which commonly rotates around questioning and reporting, is starting to be underestimated as a major aspect of the data framework. Investigation, then again, is seen as having higher effect: scientific courses of action are regularly centered around revealing information bits of knowledge that can convey quick points of interest through more brilliant client connections, more focused on advertising crusades, and less inefficient operations, in addition to different profits. Business administration master Thomas Davenport portrayed it well when he said “Associations are contending on examination not simply in light of the fact that they can – business today is inundated with information crunchers – additionally on the grounds that they ought to.”

Becoming enthusiasm toward examination is driving usage of fresher advances, for example, Hadoop and Mapreduce that permit deeper revelation of expansive volumes of crude information, including semi-organized and unstructured data. Standard BI and information warehousing advances have demonstrated very capable for organized information, however less direct for data and investigation prerequisites that fall outside of expected information sorts and utilization designs.

Putting further weight on exceedingly controlled BI and information warehousing situations is the ubiquity of information revelation and visual examination devices that give non-specialized clients abilities for performing imagine a scenario in which investigation and making visualizations all alone – without heading from IT – while decreasing the requirement for force clients versed in online explanatory transforming (OLAP) methods.

The new advances have numerous Cios and C-level business administrators investigating their interests in BI and information warehousing and pondering whether, given the blast of enthusiasm toward examination, Hadoop and related innovations ought to take their spot.

Adding to the draw is the idea that Hadoop, in view of open source, is less expensive – in any event until the truth of improvement and upkeep expenses sets in. Nonetheless, substitution could be an unsafe system. Without basically reevaluating engineering wheels effectively performing admirably in conventional BI and information warehousing situations, Hadoop and related advances are prone to miss the mark.

Supplement as opposed to contend

As opposed to supplanting BI and information warehousing, associations ought to seek after a corresponding system. BI needs examination, and investigation needs BI. In spite of the fact that OLAP capacities give a few investigation usefulness, BI/OLAP frameworks don’t convey the deeper, more exploratory viewpoint that progressed, prescient examination, for example, information mining gives. Such investigation could help BI clients investigate the “why” inquiries encompassing inquiry results and measurements they see in the dashboards and reports gave by their BI frameworks.

Then again, the aftereffects of investigation are frequently hard for clients to expend without legitimate visualization and proper connection. BI frameworks’ dashboards and execution measurements can help clients comprehend the centrality of investigation for their parts, obligations and choices.

Don’t disregard business/IT pressures

The integral methodology should not to stop with innovation execution. Associations need to address individuals and hierarchical contrasts. Examination frequently causes pressure in the middle of IT and specialties units. IT is accustomed to owning all improvement and information get to and social event clients’ prerequisites at the same time. This doesn’t work when business clients and information researchers performing investigation need to test speculations and investigate information before knowing precisely what they require.

Associations must unite pioneers from IT and specialties units, especially advertising, to enhance understanding and cultivate better joint effort. Although an undeniably prevalent and acknowledged engineering for enhancing business execution, BI – like some other framework – must be deliberately considered before choosing to execute it. Profits must be clear and comprehended and they must defend the ventures.

So how about we expand on the definite profits of executing a BI framework in your association.

To begin with, a bit of prologue to my point of view on this subject. In the event that you ask organizations which profits they need from their BI frameworks you will get one answer. In the event that you ask a BI master you will get an alternate. As far as I can tell, most organizations just handle the profits in modest pieces and they either can’t express the profits they are getting or they are not mindful that they can get them.

With the end goal of giving the most finish picture of Business Sagacity advantages I have decided to depict them from a master perspective. I.e. from the viewpoint of an expert who has been working with numerous BI frameworks at various associations for as far back as 15 years.

  1. Diminished work costs

The most unmistakable profit of BI is the time and exertion spared with physically creating the standard reports for the association. It is infrequently the biggest profit however. Then again, on the grounds that it is so substantial it is frequently piece of the mathematical statement when a choice must be made about executing BI, and on the off chance that it just so happens these reserve funds alone can support the BI framework, then it is the least demanding approach to defend it.

BI frameworks decrease work costs for creating reports by:

  • Automating information gathering and collection
  • Automating report era
  • Providing report configuration devices that make programming of new reports much less complex
  • Reducing preparing required for creating and keeping up reports
  1. Decrease data bottlenecks

The BI framework permits end-clients to concentrate reports when they require them instead of relying upon individuals in the IT or budgetary division to set them up. The BI framework will even permit approved clients to plan new shows up for match their necessities.

BI frameworks lessen data bottlenecks by:

  • Providing individualized, part based dashboards that gather the most vital information for every day operations
  • Letting the client open and run reports self-sufficiently
  • Providing documentation of Kpis and other data
  • Allowing clients to investigate and accept the information without including IT masters
  • Allowing clients to make new perspectives of information as required
  1. Make information significant

What happens when representatives in an association get a lot of information, excessively little information, excessively old information, excessively definite information or simply immaterial information?

Nothing happens. Everyone is simply squandering

that are assigned all through the organization. To verify everybody has each data they require, various types of reports are sent to representatives – normally on an extremely point by point level. Subsequently representatives feel overpowered by the measures of data that don’t give an agreeable picture of the general circumstance. What’s more in addition, since so much exertion is obliged to collect the reports they typically touch base at the representatives’ desktop days or weeks after they were generally significant.

All set up together this implies that the potential restorative and shrewd activities that these information could have prompted, are missed because of either being past the point of no return or in light of the fact that the representatives neglected or were out of time to discover the significant patterns in the bunches of data.

At the point when representatives attempt to discover head and tail of the information they even regularly find that the numbers are not equivalent between diverse reports and wind up investigating the distinctions as opposed to deciphering the real numbers. Also since trust in information is lost, no one challenges to settle on a choice focused around the numbers.

In any case more terrible yet: Numerous representatives don’t have the preparation and information to translate the numbers keeping in mind the end goal to distinguish dangers and opportunities.

BI frameworks make data noteworthy by:

  • Providing data through brought together perspectives of information where Kpis are collected and ascertained utilizing a focal store of definitions – an information model – to counteract clashing definitions and exceptional report information
  • Providing to-the-moment data continuously reports that demonstrate the condition of the business in this exact second – not an authentic perspective of how it looked days or weeks prior
  • Allowing clients to inquiry and configuration reports self-rulingly as opposed to being subject to pros in the IT division
  • Showing information in a connection, e.g. by benchmarking KPI values against practically identical qualities (e.g. midpoints, plan/target and last period) to let the client translate whether the KPI worth is satisfactory or needs restorative activity
  • Using standards to highlight KPI edges as “great” or “terrible”
  • Providing incorporated documentation to help the client comprehend the importance and meaning of the Kpis
  • Providing connections once again to the operational frameworks that make it simple for the client to do remedial activities (shut circle)
  • Making information community oriented, e.g. let the client forward and offer chose information with different clients and appoint targets and mindful persons to Kpis
  • Only demonstrating information significant to the particular client in a part based environment to keep away from “Data over-burden”
  • Sshowing information on a high, amassed level where general patterns can be effectively spotted and afterward let the client drill-down to detail information in a top-down way

Information examination is the methodology of creating responses to inquiries through the examination and elucidation of information. The fundamental steps in the expository procedure comprise of distinguishing issues, deciding the accessibility of suitable information, choosing which routines are proper for noting the inquiries of enthusiasm, applying the systems and assessing, compressing and imparting the results.

Scientific results underscore the helpfulness of information sources by revealing insight into important issues. A few Insights Canada projects rely on upon explanatory yield as a real information item in light of the fact that, for privacy reasons, it is impractical to discharge the microdata to people in general. Information investigation additionally assumes a key part in information quality evaluation by indicating information quality issues in a given overview. Investigation can along these lines impact future enhancements to the study process.

Information investigation is vital for comprehension results from overviews, managerial sources and pilot studies; for giving data on information holes; for outlining and overhauling reviews; for arranging new factual exercises; and for defining quality goals. A factual organization is concerned with the importance and handiness to clients of the data contained in its information. Examination is the vital instrument for acquiring data from the information. Information from a review can be utilized for unmistakable or diagnostic studies. Elucidating studies are guided at the estimation of rundown measures of a target populace, for instance, the normal benefits of manager worked organizations in 2005 or the extent of 2007 secondary school graduates who went ahead to advanced education in the following twelve months. Investigative studies may be utilized to clarify the conduct of and connections among qualities; for instance, an investigation of danger elements for heftiness in youngsters would be explanatory.

To be successful, the examiner needs to comprehend the pertinent issues both current and those liable to rise later on and how to present the results to the gathering of people. The investigation of foundation data permits the investigator to pick suitable information sources and fitting measurable routines. Any conclusions exhibited in an examination, including those that can affect open strategy, must be upheld by the information being broke down.

Work cited

Freedman, Lawrence Strategy. Oxford University Press. ISBN 978-0-19-932515-3. (2013).

Mintzberg, Henry and, Quinn, James Brian The Strategy Process:Concepts, Contexts, Cases.

Prentice Hall. ISBN 978-0-132-340304. (1996).

Porter, Mortes. Competitive Strategy. (1980).

Barney, J. B. Firm resources and sustained competitive advantage. Journal of Management,

17(1): 99–121. (1991).

Kvint, Vladimir The Global Emerging Market: Strategic Management and Economics.

Routeledge. (2009).

Rumelt, Richard P. Good Strategy/Bad Strategy. Crown Business. ISBN 978-0-307-88623-1.


Henderson, Bruce“The Concept of Strategy”. Boston Consulting Group. Retrieved 18 April

  1. (1981).

Liddell Hart, B. H. Strategy London:Faber, (2nd rev ed.) p. 3219 (1967)

Giles, Lionel The Art of War by Sun Tzu – Special Edition. Special Edition Books. 2007.

Porter, Michael E. Competitive Strategy. Free Press. ISBN 0-684-84148-7. (1980).

Kiechel, Walter. The Lords of Strategy. Harvard Business Press. ISBN 978-1-59139-782-3.


Effect of Improvement in High St Retail Logistics on British Customer Loyalty

December 15, 2014

Effect of Improvement in High St Retail Logistics on British Customer Loyalty
Institutional Affiliation

Contents 2
Effect of Improvement in High St Retail Logistics on British Customer Loyalty 3
Introduction 3
Challenges facing logistic operations 3
Impacts of improvement in high street retails 6
Strategies changing the face of logistics 8
Recommendations 10
References 13

The retail industry is one of the most flexible industries. It is easily affected by technological advances and economic turmoil which tend to reshape its landscape. Therefore, the modern consumer is faced with a lot of different and more complex expectations for the product provided in the market. The boundaries that once strongly barred physical and virtual space are slowly being out phased where the retailers have come to confusion on their role in serving the consumers.
Faced with online competition, as well as the global economic downturn, many high-street retailers have been facing a slow decline, with declining numbers of shoppers coming through their doors. The improvement in the high St Retail logistics has made customers more loyal. In this report, I will seek to identify challenges facing logistic operations, and then determine the indicators of British customer loyalty in relation to High St retail logistics. The paper will also cover the impacts of the improvement in High St retail logistics.
Challenges facing logistic operations
In the last decade, there have been several challenges that have been facing logistic operations in various sectors.
i) Customer expectations
The tastes and preferences of the customers have prompted a shift in customer expectations. According to a study by the BVL international supply chain, the factor of changing customer expectations as identified as the leading factor that challenges logistic operations (Fernie, et al., 2010). This particularly applies to the firms that tend to adopt changes in technology or adapt to changes in the economy at a slower rate. Traditional measures have failed in efforts to target customers.
ii) Cost pressure
It’s the general trend of many consumers to always expect low costs. Cost pressure has emerged as a remains the main criterion for customers. The suppliers have therefore had an uphill task in trying to offer reduced costs in the light of the increasing customer expectations. It also proves had among key factors being increasingly discussed in the media such as sustainability, social issues or risk mitigation capabilities (Lowson, et al., 1999).
iii) Networked economy
The world economy has significantly evolved. Companies were used to considering themselves as independent entities in the market. They often managed interfaces that directed supplies and customers themselves. However, the modern economy required much more than that. Collaboration with partners has proven to be the better option in order to try and extend the supply network. In these partnerships, each party is expected to integrate their processes and systems, thereby shifting their focus on a network thinking rather than individual.
iv) Globalization
Logistics performance has been seen to deteriorate significantly when measured by delivery reliability. This has all been seen to stem from the factors of greater volatility, increased customer requirements, and problems dealing with infrastructure. Globalization has forced companies to adopt a new transport system. This has seen many companies’ logistics capability being influenced by poor transportation infrastructure. Globalization has greatly influenced other trends thus increasing complexity (Fernie, et al., 2010).
v) New technology
With new opportunities in investment, there comes a need for new technology. This is necessary especially in the sector of data analysis. This has led to problems that hinder the development of capabilities around comprehensive handling and connecting data in an intelligent non-negligent manner. Companies that have already adopted these infant technologies have already started realizing the increased gains. However, some technologies need to be well materialized in order to offer a level competition ground.
vi) Talent shortfalls
The field of logistics is dependent on many variables. Talent shortfalls in this field are expected to occur in the near future. These inadequacies have been witnessed at various levels; such as the planning, controlling as well as operational levels. This is worsened by the fact that some countries experience shortfalls occurring as a function of demographics (Capon & Hulbert, 2007).
vii) Volatility
The market has been in a turbulent wave over the last years. Financial and economic crises have then added salt to the wound. The demand and supply sides of the market have also contributed to the market turbulence, considering fluctuations on one part also affect the other part significantly.
viii) Sustainability pressure
The world economy has always been governed by laws and regulations. Already, a very high percentage of companies have been battling and trying to be up on standards on green issues. Corporate social responsibility has also complicated logistic operations as there remains a great void in the manner off deployment of those strategies.
ix) Increased risk and disruption
Many companies in their logistic operations have recognized the importance of mitigating internal and external issues. The ‘chameleonistic’ market characteristics has seen a rise in the number of risks surrounding demand and planning. The process of instituting strategic framework has proven to be a lengthy process (Piercy, 2012).
Impacts of improvement in high street retails
Therefore, there have been numerous strategies introduced to boost themselves as well as prepare themselves with these emerging trends. Top companies are also seeking to exploit these to gain a competitive edge in the market. The winners in the process are those that attain the best relationships with their customers (Fernie et al, 2010).
The first improvement made in the logistics sector is prioritizing talent management as a priority for growth. These companies have developed a strong affinity to hire, retain and incent individuals with strong analytical and team-building skills. This is done with an emphasis on communication, agile decision making and the complete ability to work in a highly multicultural environment.
The top players have also constructed a global governance process constraining persons to a high standard of behavior and conduct. However, there is ensured space for integrated planning and enough room to be able to maneuver around regional issues among the global business strategies. These standards have been fruitful, in that they are procedures and policies that bring the right outcomes and properly align plans throughout the supply chain.
Technology roadmaps were initiated. These initiatives were meant to drive better capabilities in product and services pricing in innovations that will seek to meet and exceed customer expectations. The innovations in technology are always conceived in the light of customer satisfaction. They provide an incentive for the customer involved to make decisions in an integrated manner.
The leading performers have also managed to come up with a precedent that seeks to create network partnerships, outsources relationships and bundled products and services with main global partners. These has then resulted in a number of key capabilities that prove hard to replicate. Due to past experiences, organizations are slowly recognizing that they cannot do it alone and that those with the most efficient and capable network of suppliers have a higher chance of succeeding in their logistic operations (Fernie & Sparks, Logistics and Retail Management: Insights Into Current Practice and Trends from Leading Experts, 2004).
Strategies changing the face of logistics
Investing in green initiatives has also pushed the top performers. This is done by using the policy of leaving the environment in a better condition than they found it; done using the terms of carbon footprints and other global standards. Apart from the main objective of customer loyalty, there are other specific areas that the top performers in logistical operations focused on. These include process, technology, network and community (Harrison & Hoek, 2008).
Organizations have seen the need to develop a strong main set of policies and procedures in their daily operations. These however must be engineered to meet any situation globally as well as culturally. The organization has therefore embarked on promoting persons who grasp the concept of their culture through mentoring, shadowing and a good deal of educational opportunities that provide plenty of training. This improved retention capabilities in the process allowing innovation and new means and modes of working to flouring in global networking.
Workers who have strong analytical and rational foundations are in a position to be hired more by logistical operators.These individuals are able to use data to define environmental conditions, and act on their logical interpretation of this data. The top companies also seek managers who can deliberate the long-term impression of their decisions, not just the direct situation in front of them. Topperforming companies also prefer experts who have deep acquaintance in a specificarea, and thus have the capability toassess the situation.Finally, they want persons who have ability to work in unacquainted global environments as well as individuals who are prepared to work in a global setting (Capon & Hulbert, 2007).
As organizations expand globally, the need for a global viewpoint is also important, and this is increasingly harder to find. This therefore presents the challenge of identification and recruitment of individuals across multiple channels. The process requires a positive and broad mind in order to succeed in it.
Less successful enterprises are more likely to be a stand-alone logistics organization and less likely to be part of the procurement organization. Logistics has proven to be a main global process with the means of its independent governance. Although procurement has often reflected logistics as simply a purchasing activity, there is a strong necessity to distinguish the types of logistics subjects that need a different approach. This has therefore warranted the close coordination between procurement and logistics, with logistics playing a more or less consultative role.
Technology has seen many persons leveraged to provide insights, visibility, and promote an action oriented culture. High streets and town centres play a vital role in supporting communities and boosting local growth. We live in a world that is increasingly reliant on digital technology (Lamming, et al., 2008). Technology investments that have a direct tie to user requirements, customer responsiveness, and accountability for results have the best promise of being adopted successfully. The retailers are investing in a concrete foundation of healthy logistics and supply chain data, through confirming that their data systems can track events, transactions, and form a strong data-based analytics foundation.
Customer responsiveness, accountability and user requirements are often the key things to be met in technological innovations. Globalization in technology has seen an end to end integration as well as global material visibility. Planning processes have been integrated in order to produce a masterpiece of analytic tools that will in turn prove viable in future. It also enables tracking of events beyond first tier suppliers, and provides a real-time update of key performance indicators used to ensure optimization of supply chain plans (Harrison & Hoek, 2008).
The interdependencies of globally interacted supply chains means any commotion at a node radiates throughout the network. One of the most important aspects of networking is end to end integration. Retailers have to thereforeinitiate measures that see the increased sharing of tactical market data. Other distinguishing features is that they are sharing information across a broader arc of supply chain members. Logistic decisions therefore are made with respect cost to serve analytics.
In the retail sector, it has become important for customers to be aware of environment. Therefore, active establishments are reconnoitering new ways to screen and measure transport networks, end of life product strategies and packaging. Corporate social responsibility is establishing its position as a more important part of logistics strategy (Fernie et al, 2010). Organizations will increasingly need to work both vertically and horizontally with other agencies to form industry coalitions and government partnerships that will make the world a level playing field and one that continues to reduce its carbon footprint over time.
Organizations are holding their suppliers to one global standard when it comes to labor and human rights violation. The community has increasingly being made part of the logistic strategy, thereby enhancing customer retention. Improvement in the supply chain management CSR has been established as a pillar of strengthening logistic operations (Fernie & Sparks, Retail logistics: changes and challenges, 2009).
The high street retailers who followed the above strategies have seemingly excelled in improving British customer loyalty. Retailers were once the passive recipients of products allocated to stores by manufacturers in the hope of purchase by consumers and replenished only at the impulse and timing of the manufacturer. They have now emerged as the key controllers of product supply in major markets.
Retailers have become the channel captains and set the pace in logistics. Having protracted their channel control and focused on corporate efficiency andeffectiveness, retailers have thenattempted to engender a moreintegrated, cooperative, andcollaborative position in manyaspects of logistics and supplychain management. The high level of retail product brand penetration has enabled them to build up store loyalty and diversify into other businesses.
Having enhanced the competence of their own logistics operations, many retailers have instigated to cooperate diligently with suppliers to exploit the efficiency of the retail supply chain as a whole. With these initiative, the consumers are more satisfied. The overall focus on getting a more competitive edge in Britain has therefore greatly boosted the logistics departments. The retail supply chain is definitely getting more complex, so it’s no surprise that the logistics industry has also evolved dramatically in recent years, and even the industry terms have begun to change.
All in all, it is evident that the rapid evolution of high St retailers has greatly impacted the loyalty of consumers in the UK. Strategies implemented have had a profound effect on customer activities resulting in an increasing level of trust ultimately resulting to consumer loyalty. The retail supply chain is now adjusting to a wider and more diverse variety of just about everything

Capon, N., & Hulbert, J. M. (2007). Managing Marketing in the 21st Century: Developing and Implementing the Market Strategy. Wessex: Wessex Incorporated.
Fernie et al. (2010). Supply Chain Management and Retailing. Supply chain forum; an interantional journal, 11(4), 4-12.
Fernie, J., & Sparks, L. (2004). Logistics and Retail Management: Insights Into Current Practice and Trends from Leading Experts. London: Kogan Page.
Fernie, J., & Sparks, L. (2009). Retail logistics: changes and challenges. London: Kogan Page.
Fernie, J., Sparks, L., & McKinnon, A. C. (2010). Retail logistics in the UK: past, present and future. International Journal of Retail & Distribution Management, 39(11/12), 894-914.
Harrison, A., & Hoek, R. I. (2008). Logistics Management and Strategy: Competing Through the Supply Chain. New York: Prentice Hall Financial Times.
Lamming, R., Lawson, B., & Squire, B. (2008). Strategic Supply Management: Principles, Theories and Practice. New York: Prentice Hall Financial Times.
Lowson, B., King, R., & Hunter, A. (1999). Quick Response: Managing the Supply Chain to Meet Consumer Demand. New York: Wiley.
Piercy, N. F. (2012). Market-Led Strategic Change. London: Routledge.
Steers, R. M., Sanchez-Runde, C. J., & Nardon, L. (2010). Management Across Cultures: Challenges and Strategies. Cambridge: Cambridge University press.

Cultural assessment and change! Muslim culture and childbirth practices. Nurse cultural competency to Patient culture during childbirth and postpartum.

December 14, 2014

Cultural Assessment and Change! Muslim Culture and Childbirth Practices: Nurse Cultural Competency to Patient Culture During Childbirth and Postpartum Care

  • The Problem

–Nurses assume that particular labor and postpartum practices apply to all

–Different religions have different labor and postpartum care values

–Culturally incompetent nurses are insensitive to client’s cultural persuasions (O’Connor, 2002)

  • The goals

–Make nurses sensitive to Muslims’ values regarding childbirth and postpartum care

–Nurses to deliver effective and proper care to Muslim mothers via technique and approach changes

–Help Muslim mothers to enjoy the birthing process

  • How will the problem be identified?

–The nurses will be observed when helping mothers deliver

–The nurses will be observed when managing labor, delivery, and postpartum care rooms

– Reports filed by nurse managers will be studied

–Nurses’ clients will be interviewed

  • Key informants


–Mothers after delivery

–Nurse managers

  • Who does the problem affect?

–Nurses in executing their roles



–Hospital administrators

  • Who does the problem affect?

–Nurses in executing their roles



–Hospital administrators

  • Resources

–Muslim clerics

–Medics who attend to large Muslim populations

–The internet

–Islam scholars

  • Prefer modesty
  • Females to be in medical team
  • Female relatives in labor wards
  • C-Section acceptable but not preferred
  • Postpartum breastfeeding common
  • Postpartum abstinence defined
  • Modesty not critical
  • Sex of caregivers inconsequential
  • Husband to be in labor ward
  • C-section preferred
  • Postpartum breastfeeding common
  • Postpartum abstinence not define
  • The intervention

–Nurses and Muslim mothers will have guided discussions in multiple classes

–Discussions based on preferred childbirth and postpartum care, sensitivities and values

–Nurses to identify information on the mother’s cultural sensitivities

–Follow-up of nurses to ensure implementation of learned content

  • Nurses and Muslim mothers to discuss

–Modesty requirements

–Preferred composition of medical teams

–Visitors in labor wards

–Acceptability of c-section

–Postpartum breastfeeding and abstinence

  • Nurses to implement the views of mothers in structured, verifiable ways
    • Signs that the intervention succeeds in addressing the problem

    –Nurses ensure modesty in birthing processes and postpartum care

    –Male nurses not entering labor wards

    –Nurses allowing only female relatives into labor wards

    –Exploration of possibility of using the alternative to C-Section

    • Signs that the intervention succeeds in addressing the problem

    –Encouraging mothers to breastfeed in postpartum care

    –Advising new most to observe applicable postpartum abstinence

    • Expected behavior changes among the nurses

    –Nurses will become more and more modest in offering birthing and postpartum care

    –Nurses to accept gender-based assignment of birthing and postnatal roles

    –Nurses to develop preference for the natural birthing process

    –Nurses to base the advice they give to mothers on Quran teachings

    • Acceptability of care practices is informed by cultural sensitivities and persuasions
    • Discussions between nurses and Muslim mothers makes the latter culturally competent
    • Declercq, E., Sakala, C., Corry, M., Applebaum, S. & Risher,   P. (2002). Listening to mothers: Report of `the first   national U.S. survey of women’s childbearing   experiences. New York: Maternity Center   Association.

      Leininger, M. & McFarland, M. (2005). (Eds.). Culture care   diversity and universality: A worldwide nursing   theory. New York: Jones & Bartlett.

    • Moran, D. E & Kallam, G. B. (1997). The gift of motherhood:   Your personal journey through prepared childbirth.   Arlington, TX: Customized Communications,   Incorporated.

      O’Connor, J. (2002) .Healthcare beliefs and practices of Arab   American women. International Journal of Childbirth   Education, 17(4), 42–44.