Debco Corporation Contract with TMI †Business 100 Essay

Debco Corporation Contract with TMI – Business 100 Essay Free Online Research Papers Debco Corporation Contract with TMI Business 100 Essay Debco’s first claim, that its October 25 correspondence prevented the formation of a contract between Debco and TMI, is incorrect. Under the Sales Article of the UCC, a firm offer cannot be revoked for a specified time of up to 3 months, regardless of a lack of consideration. A firm offer must be made by a merchant in a signed writing. In this case, Debco’s October 12 order was a firm offer because Debco, who made the offer, was a merchant and the order was in a signed writing. Therefore, Debco’s October 25 correspondence to revoke the offer was ineffective. Debco’s second claim, that TMI’s October 31 corresponence was not an effective acceptance because it was not received by Debco until November 3, is incorrect. Generally, acceptance is effective when sent, unless offer specifies it is effective when received offer indicates date by which it must be received acceptance is sent by unauthorized means acceptance is sent by means not equal to or better than that used to communicate the offer. In this case, Debco’s offer didn’t indicate date by which it must be received, and TMI’s acceptance was sent by mail, the same means that used to communicate the offer. Therefore, TMI’s acceptance was effective when mailed on October 31. Debco’s third claim, that TMI’s October 31 correspondence was not an effective acceptance because it added payment terms to Debco’s purchase order, is incorrect. Under the Sales Article of the UCC, acceptance of a sale contract does not have to mirror the offer. Therefore, TMI’s October 31 acceptance was effective even though it added payment terms. Research Papers on Debco Corporation Contract with TMI - Business 100 EssayComparison: Letter from Birmingham and CritoWhere Wild and West MeetQuebec and CanadaAnalysis Of A Cosmetics AdvertisementThree Concepts of PsychodynamicAppeasement Policy Towards the Outbreak of World War 2Twilight of the UAWDefinition of Export QuotasRelationship between Media Coverage and Social andThe Project Managment Office System

Biofuel - today essays

Biofuel - today essays In todays world day in and day out we see fleets of cars, buses, two-wheelers and trucks on our streets. Poisonous fumes damaging our lungs, noise pollution deafening our ears and harried commuters fed up with their lot. Is this what mankind has come to? Imagine the situation in a few years when the existing sources of fuel are almost exhausted! Shortage of petrol, shortage of cooking gas and scarcity of fuel in industries. Prices of all types of fuel will shoot up making life all the more expensive. Utter chaos! That is what the scenario will be especially in the major cities of the world. Isnt it time we looked out for alternative sources! Energy is the key for food, housing, production and transportation. There is nothing more important for a developing country like India than a good energy plan. Therefore biofuel is todays extreme need. Well, what is this biofuel? In contrast to fuel based on products derived from the petrochemical industry, biofuel is based on raw material derived from living organisms and therefore can be classified as a renewable resource. Biofuel can be of microbial or of plant origin. Of the microbial biofuel products, three basic types are fuel alcohol, biogas which is also known as methane and hydrogen. At present there are 2 main markets for fuel alcohol, Brazil (Proalcohol) and U.S.A. (Gasohol) used either blended with petroleum or as 95% Ethanol) water mixture in purpose-built engines. Biogas is the term used for anaerobic methane production, a biochemical reaction in which CO2 is the ultimate electron acceptor producing either CO or CH4. Since both of these products are volatile they are relatively easy to obtain in pure form. Biological hydrogen production is done mostly during nitrogen fixation. Biofuel has millions of uses as well. One of the first benefits Rudolph Diesel a german engineer said, The use of vegetable oils for engine fuels may s ...

Cross Cultural Human Resource Management Essay Example | Topics and Well Written Essays - 3000 words

Cross Cultural Human Resource Management - Essay Example Globalization and the development of international trade have led to the emergence of borderless trade that involves the transfer of capital, goods, service and human resource. This has created significant opportunities to different people across the globe and has increased the scales of operation for different companies whose market has been significantly grown (Denison, Adkins & Ashley, 2011). The emergence of international trade has led to the development of multinational corporations whose scale of operations and management practices goes beyond the domestic borders. Most multinationals adopt different human resource management approaches depending on their domestic culture and practices. However, the expansion into the international business environment has presented a major challenge to multinational in developing more flexible and effective human resources practices that suit cross-cultural settings (Claus, 2008). The choice of human resource management approach adopted by an organization will influence largely its success in the global market, thus making it highly important a management practice. Companies use different models of human resource management, including the use of expatriates, local managers or a mixture of both. This is influenced by the MNCs approach to managing cross-cultural differences that arises in the international context (Tabrizi, Ali & Safar, 2012). In order to help illustrate the essence of adopting better human resource management approaches in cross-cultural setting, this paper will use a case study of Samsung. Samsung is an electronic company based in Seoul, in South Korea but with significant global presence. It is currently considered as one of the leading electronic manufacturers across the globe and thus controls significant global market ratio. The cross-cultural human resource management practices adopted by the multinational company that has enabled it to register the significant growth will be evaluated (Denison, Adk ins & Ashley, 2011). Putting in mind the diversification of cultures, societal values and cultural norms, will greatly enhance management of human resource in a setting where a company is set. For instance, if an American company decides to start a company in Japan, it has to consider the aspect of interpersonal relations given the fact that Japanese shake hands and do not make body contacts in public yet America is a free society where no one minds how you interact on corporate issues. Corporate and organizational cultures Organizational culture influences the behaviour of employees towards each other within the organization and the way they represent the organization in market. Organizational culture is defined as a set of behaviour that is nurtured and encouraged within an organization as identical set of behaviours and codes. Within the multinational setting, organizational culture is influenced by the company headquarter and this depends on the cultural setting and behaviour wi thin the country. Different organizations and multinationals define employee relationship and behaviour towards each other and towards the top management in different ways. The hierarchal system of management and authority in an organization is also determined by the organizational culture and behaviour and this depends on the societal culture and power distance (Van Der Westhuizen, Pacheco & Webber, 2012). Corporate cultures within organization differs and this is significantly influenced by the

EVIDENCE BASED PRACTICE Research Paper Example | Topics and Well Written Essays - 500 words

EVIDENCE BASED PRACTICE - Research Paper Example As such, this study aims at reviewing the available literature with regard to VAP bundle; describe the risk factors and etiology and explain the bundled practices; discuss the framework that would promote knowledge translation of VAPBs to clinical set-up; and finally identify the areas needing further research and how this could be use to curb VAP incidence. Despite the paper having the limitation of unclear data collection process, its strength in diversity, thus reliability comes out in the use of inclusion criteria to source data from various search engines – Cochrane Collaboration, PsycINFO, CINAHL, EMBASE and MEDLINE - giving a sample of six peer-reviewed studies published between 1997 and 2007. Each of these studies examined the bundled practices. The findings of the study indicate that the bundled VAP, VAPB practices reduce the rates of VAP. In addition, the practice reduces mortality rates, the length of stay under intensive care and the ventilator days. There was also an indication of increased compliance among clinicians with regard to VAPB protocols as the VAP rates decrease. Even though the study suffered unclear methodology, it provides useful insights on care for patients with respiratory complications. In this study, McCarthy, Santiago and Lau (2008) appreciate the need for evaluating the efficacy of VAPBs against the common ventilator care practices using RCTs (randomized controlled trials) employing clinical outcomes like mortality rates, ventilator days and VAP rates as indicators. However, the study fails to measure the effectiveness of the relationship between VAPBs and the outcomes. The findings in this paper point towards the need to implement research-based VAPBs into the normal clinical practice. For effective implementation, I will adopt the PARIHS (Promoting Action on Research Implementation in Health Services) conceptual framework as it effectively informs on transfer of knowledge

Wild Scenes Essay Example for Free

Wild Scenes Essay Bill Crow’s Jazz Anecdotes is a thought-provoking, often amusing collection of stories from within jazz’s inner circles, told by and about some of the genre’s leading figures. While not a history of jazz, it gives readers some insights to how jazz artists worked, lived, bonded, and coped with an America in which many were still outsiders. The book’s forty-three chapters (expanded from the original 1990 edition) describe the life jazz musicians shared, offering insights into a rather exclusive, unconventional circle of performing artists. The numerous anecdotes are categorized by chapters, gathering related tales and moving from a general overview of jazz life to anecdotes about individuals, like Louis Armstrong, Miles Davis, and Benny Goodman. Essentially, Crow creates a context in which jazz musicians lived, and then places individual musicians within it, giving readers a better understanding of how they functioned in this rarified climate. For example, the volume opens with â€Å"Wild Scenes,† which Crow says describes how â€Å"the individuality of jazz musicians combines with the capricious world in which they try to make a living† (Crow 3). The brief chapter sets the stage for the rest of the book, giving glimpses of the unconventional world jazz musicians inhabited (which explains to some degree their relationship to society at large). â€Å"The Word ‘Jazz’† contains attempts to explain the origins of the genre’s name, and â€Å"Inventions† offers accounts of how certain innovations occurred (such as Dizzy Gillespie’s distinctive bent trumpet), giving the reader a sense of history though the work is not an orthodox history per se. Many of the stories contained in Jazz Anecdotes convey the musicians’ camaraderie and warmth toward each other, as well as each other’s idiosyncrasies. Others convey how difficult and often arbitrary the jazz lifestyle often was. â€Å"Hiring and Firing† demonstrates how unstable many musicians’ careers were, rife with disputes over money or dismissals for their personal quirks. (For example, Count Basie fired Lester Young for refusing to participate in recording sessions occurring on the 13th of any month. ) â€Å"Managers, Agents, and Bosses† offers a glimpse into the seamier underside of jazz, where dishonest managers and mobsters often trapped jazz performers in unfair contracts or worse. Though jazz musicians appear to inhabit a special world, Crow does not discuss jazz in a social vacuum, tying it to social phenomena like race relations. In â€Å"Prejudice,† the tales take a more serious tone by showing how black jazz artists faced abundant racism, particularly in the South. However, Crow notes that â€Å"Jazz helped to start the erosion of racial prejudice in America . . . [because] it drew whites and blacks together into a common experience† (Crow 148). Jazz artists dealt with racism in various ways – Bessie Smith and Billie Holiday stood up to it while Zutty Singleton accepted it. Meanwhile, even white musicians like Stan Smith angered both races – whites for performing with blacks, and blacks for â€Å"intruding on their music† (Crow 152). The final chapters focus on individual artists, illustrating the greats’ personalities. Louis Armstrong emerges as earthy and good-hearted; Bessie Smith as strong and willful but ultimately self-destructive; Fats Waller is an impish pleasure-seeker given to excellent music but poor business decisions; and Benny Goodman as gifted but tight-fisted and controlling. Taken as a whole, Jazz Anecdotes offers a look at jazz’s human side, including its foibles, genius, camaraderie, crookedness, and connection to an American society from which it sometimes stood apart. Its legendary figures are depicted as gifted, devoted artists who enjoyed hedonism, companionship, and particularly independence. If any single thing stands out in this book, it is the latter; for the figures in this work, jazz meant creativity and freedom, which they pursued with equal vigor and vitality. Crow, Bill. Jazz Anecdotes. New York: Oxford University Press, 2005.

Beowulf as a Hero Essay -- Seamus Heaney

The poem, Beowulf, by Seamus Heaney, depicts Beowulf as a perfect hero. Beowulf is the mythical son of Edgetho and later becomes the king of the Geats. In the poem, Beowulf's shows heroism in two different phases of his life, youth and old age. Throughout the poem, Beowulf faces three difficult conflicts with Grendel, Grendel's mother, and the dragon. Throughout the novel Beowulf is a noted and respected warrior from Geatland. During Beowulf's youth, he is considered to be a great warrior, portrayed by his strength, courage, and bravery. Beowulf begins his legacy in Denmark with an evil monster, Grendel. Grendel is ruining King Hrothgar's kingdom and is ritually tormenting him. The monster breaks into the castle and eats as many of Hrothgar's men as he can hold each night. King Hrothgar calls Beowulf for help because the king has tried everything else. Beowulf arrives with a ship of his warriors to help King Hrothgar in stopping Grendel. King Hrothgar accepts Beowulf's pledge to kill Grendel. Beowulf pledges to face Grendel with, "no weapons, therefore, for either this night; unarmed he shall face me if face me he dares" (47). When Beowulf meets Grendel he fights barehanded and rips his arm off. Beowulf comes back with Grendel's arm. It is hung in the battle hall as a trophy of Beowulf's bravery, courage, and victory over the monster. Beowulf's defeat of Grendel certifies his reputation for bravery and es tablishes him as a full hero. Even though Grendel is dead, the danger has not passed. Grendel's mother comes to King Hrothgar's battle hall. She retrieves, "their trophy, Grendel's bloodied hand" (91). Hrothgar is very disappointed and calls on the hero, Beowulf, once again. Beowulf travels with his men to the fiery lake whe... ...he only one left of the WaegmundingsÂ…Now I must follow them" (189). Wiglaf is the only warrior who stayed to help Beowulf, the rest fled. Therefore, Beowulf leaves Wiglaf to rule his kingdom. Beowulf should be considered a hero because he gives his life to keep his kingdom safe. Beowulf is a great warrior, portrayed by his strength, courage, and bravery. Beowulf also exemplifies the manner and values dictated by the Germanic heroic code. He is considered to be both a warrior and a king. When Beowulf encounters the dragon, the responsibilities of being king are thrown. He must act for the good of his people, not just for his own glory. Throughout the poem, Beowulf holds a good reputation and is respected by the people. Works Cited Beowulf. The Norton Anthology of English Literature. Ed M H Abrams, et al. Vol. 1. Sixth ed. NY: W.W. Norton & Company, Inc., 1993.

Blackwater USA security

Blackwater Worldwide in the past called Blackwater USA Security-Blackwater is the name for the peat-colored water of the swamp, is the U. S. government has inaudibly hired to maneuver in international war zones and on American soil. The contacts run from deep within the military and intelligence agencies to the upper echelons of the White House. This company that is a self-described private military company founded in 1997 by a man named Erik Prince and Al Clark which is also the same company also referred to as the security contactor or mercenary organization by the international reporters, the founder Erik Prince a former Navy SEAL.Prince attended the Naval Academy, graduated from Hillsdale College, and was an intern in George H. W. Bush's White House. Prince is a major financial supporter of Republican Party causes and candidates emerged from ancestors that was one of the top reservoir rollers of, not only the â€Å"Republican revolution† of the 1990s that brought Newt Ging rich and the Contract with America to authority, but also the growing of what the spiritual accurate or the Christian conventional lobby group. Erik Prince’s family gave the kernel money for Gary Bauer to found the Family Research Council.The founder Erik Prince of the Blackwater USA security is a major bank roller of President Bush, his cronies, and the Christian conservative movement in this nation and in 2002 Blackwater Security Consulting (BSC) was formed. It was one of several private security firms employed following the U. S. invasion of Afghanistan. BSC is one of over 60 private security firms employed during the Iraq War to guard officials and installations, train Iraq's new army and police, and provide other support for occupation forces.Blackwater was also hired during the aftermath of Hurricane Katrina by the Department of Homeland Security, as well as by private clients, including communications, petrochemical and insurance companies in Overall; the company has r eceived over US$1 billion in government contracts. In administration Blackwater's president Gary Jackson, is also a former Navy SEAL and Cofer Black, the company's current vice chairman, was director of the CIA's Counterterrorist Center (CTC) at the time of the September 11, 2001 attacks.He was the United States Department of State coordinator for counterterrorism with the rank of ambassador at large from December 2002 to November 2004. After leaving public service, Black became chairman of the privately owned intelligence gathering company Total Intelligence Solutions, Inc. , as well as vice chairman for Blackwater. Joseph E. Schmitz holds an executive position in Blackwater's holding company, Prince Group. He was previously inspector general of the Department of Defense, an appointment of George W.Bush. Robert Richer was vice president of intelligence until January 2007, when he formed Total Intelligence Solutions. He was formerly the head of the CIA's Near East Division. [20][21] Black is presently senior advisor for counterterrorism and national security issues for the 2008 Presidential election bid of Mitt Romney. Blackwater is based in the U. S. A in the state of North Carolina, where it operates a tactical training facility that it said to be the world's largest.The company trains more than 40,000 people a year, from U. S. A or foreign military and police services, as well as other U. S. A government agencies. The training consists of military offensive and defensive portioning and in smaller scale human resources security. Expertise and modus operandi trained are not limited by U. S. domestic law although we are not yet sure what legal status Blackwater operates in the U. S. and other countries and the fortification of the U. S. extends to Blackwater which is operations globally.Blackwater is the mysterious story of the ascending of a powerful mercenary army, ranging from the blood-soaked streets of Fallujah to rooftop firefights in Najaf to the hurric ane-ravaged US gulf to Washington DC, where Blackwater executives are hailed as new conquerors in the war on terror. Blackwater USA Security has massive of about 6,000 acres of the Great Dismal Swamp acre training facility as part of its headquarters, Moyock in North Carolina (just south of the Virginia border).The firm has additional offices in Baghdad, Iraq, and Kuwait City this is according to The â€Å"About Blackwater† section of its website states: â€Å"Blackwater Training Center which was founded in 1996 to fulfill the anticipated demand for government outsourcing of firearms and related security training. Blackwater has the finest private firearms training facility in the U. S. Blackwater has set a new standard for firearms and security training and is recognized as the industry leader in providing government outsource solutions in training, security, canine services, aviation support services, range construction and steel target equipment.Since its inception howeve r, the main work of Blackwater has been deploying its own mercenary army– recruited from elite U. S. military forces especially from Navy SEALS and Marine Recon, SWAT police forces, and international â€Å"soldiers of fortune. † In February it started training former Chilean commandos–some of whom served under the dictatorship of Augusto Pinochet–for use in Iraq. Blackwater has trained over 50,000 military and law enforcement personnel and provided solutions to hundreds of satisfied customers.This is an extraordinary delineation by one of America's most exciting young radical correspondents called Jeremy Scahill the undercover journalist in his new book â€Å"Blackwater† talks about The Rise of the World's Most Powerful Mercenary Army where he says that Blackwater is the honored Praetorian Guard for the global war on terror with its own military base. Blackwater is presently the largest of the U. S. State Department's three private sanctuary contra ctors, providing a total of 987 contractors.The correspondent in his book writes that Blackwater mercenary firm vehemently demonstrates the grave jeopardy of outsourcing the government’s cartel on the use of force many of which are U. S. citizens. At least 90 percent of its proceeds come from government contracts, two-thirds of which are no-bid contracts. Blackwater Worldwide is currently contracted by the United States government to provide security services in the Iraq War. In October 2007, Blackwater USA rebranded them as Blackwater Worldwide.Blackwater Worldwide has played a substantial role during the Iraq War, as a contractor for the United States government, especially in 2003; Blackwater received its first high-profile contract when it received a $21 million no-bid contract for guarding the head of the Coalition Provisional Authority, L. Paul Bremer. Since June 2004, Blackwater has been paid more than $320 million out of a $1 billion, five-year State Department the fi nancial statement for the Worldwide Personal Protective Service, which protects U. S. officials and some foreign officials in conflict zones. In 2006, Blackwater won the remunerative contract to protect the U.S. embassy in Iraq, which is the largest American embassy in the world. It is anticipated by the Pentagon and company representatives that there are 20,000 to 30,000 armed security contractors working in Iraq. Of the State Department's dependence on private contractors like Blackwater for security purposes, U. S. ambassador to Iraq, Ryan Crocker, told the U. S. Senate: â€Å"There is simply no way at all that the State Department's Bureau of Diplomatic Security could ever have sufficient full-time personnel to staff the security occupation in Iraq. There is no unconventional except through contracts.According to the republicans of early this year 2008, Blackwater USA security will leave the bureau armed and dangerous because Blackwater is the absolutely mesmerizing an explosiv e story of how the Bush Administration has spent hundreds of millions of public dollars edifice a comparable corporate army, an army enthusiastic to grounds it constitutes nothing less than a Republican Guard which is the most imperative and unnerving book about the death throes of U. S. egalitarianism in the estimative coverage about how insane Bush privatization efforts, not an iota is more worrisome than the corporatizing of military struggle forces.Jeremy Scahill admirably exposes a overwhelming example of this baleful scheme, the writer says that the only person interested in the privatization of the military is president Bush due to the advantages that we will gain from keeping the military force in the course of the Iraq fight. This engrossing investigative piece exposing, in shocking detail, a U. S. government-outsourced Frankenstein replete with helicopter gunships may leave you unconvinced. But you better believe it, for it poses a grave and gathering danger to the future of our Republic.According to Ray McGovern, CIA veteran and former intelligence briefer for George H. W. Bush, in this terrorizing and thrillingly written book, Jeremy Scahill initiates us to the shape of things to come, and to the kind of people and conglomerates apt to preside over our lives if we don't do something marvelous about it promptly. According to research from the writer Jeremy Scahill's comprehensive research and reporting elevates the shroud off the ever-tightening relationship between the federal administration and unaccountable private military corporations such as Blackwater USA.This type of mercenary army has no whatsoever reason to have this type of civilian military organization due to its relationship with the US government which is considered to be of intrinsic danger and moral conflicts involved in the using of public funds to engage a clandestine corporation which exists to generate profit to supplement and to supersede the military in its role to endow with for the common defense. Alarming issues leap to mind like a panther springing upon its prey.Moreover the Social Darwinists sitting atop the food chain in the wealthiest, most powerful nation in humanity's history now have access to their own paramilitary force. They can unleash their private army on the unfit when the need arises, whether it be within America's borders or otherwise. New Orleans is a prime example. 150 highly trained Blackwater quasi-military professionals openly armed with assault weapons descended on a tragedy-stricken city. As hurricane victims taking necessities were called â€Å"looters† and shoot to kill orders were in effect, those who value property over people saw to it that their interests were well-protected.Thankfully, Blackwater was there to protect the patrician class from the â€Å"savages† from the Lower Ninth Ward who had the audacity to attempt survival; also Blackwater's global presence includes Iraq, where the murder of four of their employees triggered the US military's revengeful attack on Fallujah in which it committed scandalous war crimes and mayhem against hundreds of Iraqi civilians. Why the four Blackwater contractors were near Fallujah the day of their deaths remains unclear. The mainstream media, Blackwater and the US government claim that they were on security detail shielding a food delivery.However, some suggest that the claims of protecting a food caravan were a ruse to cover the fact that Blackwater employees were completing a military operation. While the facts remain ambiguous, it is certain that the conventional media's description of the Blackwater victims as civilian contractors was significantly inaccurate, this led to the Blackwater's license to operate in Iraq being revoked by the Iraqi Government on September 17, 2007, resulting from a highly contentious incident that occurred the previous day during which seventeen (initially reported as eleven) Iraqis were killed.The fatalities occurre d while a Blackwater Private Security Detail (PSD) was escorting a convoy of U. S. State Department vehicles en route to a meeting in western Baghdad with United States Agency for International Development officials. The US State Department has said that â€Å"innocent life was lost. An anonymous U. S. military official was quoted as saying that Blackwater's guards opened fire without provocation and used excessive force, the incident has sparked at least 5 investigations, with the FBI now saying it will begin a probe.Blackwater helicopters were dispatched to evacuate the Polish ambassador following an insurgent assassination attempt. On October 2, 2007 Erik Prince was subject to a congressional hearing conducted by the Committee on Oversight and Government Reform following the controversy related to Blackwater's conduct in Iraq and Afghanistan. Blackwater hired the public relations firm BKSH & Associates Worldwide, a subsidiary of Burson-Marsteller, to help Prince prepare for his testimony at the hearing. Robert Tappan, a former U. S.State Department official who worked for the Coalition Provisional Authority in Baghdad, was one the executives handling the account. BKSH, a self-described â€Å"bipartisan† headed by Charlie Black, a prominent Republican political strategist and former chief spokesman for the Republican National Committee, and Scott Pastrick, former treasurer of the Democratic National Committee. The case went on until when testifying before Congress came and Prince complained about the lack of remedies his company has to deal with employee misdeeds.When asked why an employee involved in the killing of a vice-presidential guard incident had been â€Å"whisked out of the country† he replied, â€Å"We can't flog him, we can't incarcerate him. Asked by a member of Congress for financial information about his company, Prince declined to provide it. â€Å"We're a private company, and there's a key word there private, he later stated that the company could provide it at a future date if questions were submitted in writing when the term â€Å"mercenaries† was used to describe Blackwater employees, Prince objected, characterizing them instead as â€Å"loyal Americans†.A Committee on Oversight and Government Reform staff report based largely on internal Blackwater e-mail messages and State Department documents, describes Blackwater as â€Å"being staffed with reckless, shoot-first guards who were not always sober and did not always stop to see who or what was hit by their bullets. A staff report compiled by the House Committee on Oversight and Government Reform on behalf of Representative Waxman questioned the cost-effectiveness of using Blackwater forces instead of U.S. troops. Blackwater charges the government $1,222 per day per guard, â€Å"equivalent to $445,000 per year, or six times more than the cost of an equivalent U. S. soldier,† the report alleged, during his testimony on Capitol H ill, Erik Prince disputed this figure, saying that it costs money for the government to train a soldier, to house and feed them, they don't just come prepared to fight. â€Å"That sergeant doesn't show up naked and untrained†, Prince stated.In the wake of Prince's testimony before Congress, the US House passed a bill in October, 2007 that would make all private contractors working in Iraq and other combat zones subject to prosecution by U. S. courts and Senate Democratic leaders have said they plan to send similar legislation to President Bush as soon as possible. The legal status of Blackwater and other security firms in Iraq is a subject of contention, before he left Iraq; L.Paul Bremer signed â€Å"Order 17† giving all Americans associated with the CPA and the American government immunity from Iraqi law. A July 2007 report from the American Congressional Research Service indicates that the Iraqi government still has no authority over private security firms contracte d by the U. S. government. On October 5, 2007 the State Department announced new rules for Blackwater's armed guards operating in Iraq. Under the new guidelines, State Department security agents will accompany all Blackwater units operating in and around Baghdad.The State Department will also install video surveillance equipment in all Blackwater armored vehicles, and will keep recordings of all radio communications between Blackwater convoys in Iraq and the military and civilian agencies which supervise their activities.Also on September 23, 2007, the Iraqi government said that it expects to refer criminal charges to its courts in connection with a shooting involving Blackwater guards. However, on October 29, 2007, immunity from prosecution was granted by The U. S. State Department, delaying a criminal inquiry into the Sept. 16 deadly shooting of 17 Iraqi civilians. Immediately afterwards, the Iraqi government approved a draft law to end any and all immunity for foreign military co ntractors in Iraq, to overturn Order 17.The U. S. Department of Justice also said any immunity deals offered to Blackwater employees were invalid, as the department that issued them had no authority to do so. Legal specialists say that the U. S. government is unlikely to allow a trial in the Iraqi courts, because there is little confidence that trials would be fair. Contractors accused of crimes abroad could be tried in the United States under either military or civilian law; however, the applicable military law, the Uniform Code of Military Justice, was changed in 2006, and appears to now exempt State Department contractors that provide security escorts for a civilian agency.Prosecution under civilian law would be through the Military Extraterritorial Jurisdiction Act, which allows the extension of federal law to civilians supporting military operations; however, according to the deputy assistant attorney general in the Justice Department’s criminal division Robert Litt, try ing a criminal case in federal court would require a secure chain of evidence, with police securing the crime scene immediately, while evidence gathered by Iraqi investigators would be regarded as suspect.To conclude the Backwaters should not have this type of civilian military organization in any part of the world including in the U. S. A because it is too costly especially to the Government of president Bush including the civilians who get to pay a lot to taxes to keep the military running. The innocent people dying all over the world where the mercenary army controls is an abuse of the human rights especially in Iraq, Bagdad and Somalia. References: 1. www. blackwaterusa. com/new/btwarchive. html 2. Blackwater by Jeremy Scahill 2007 by Jeremy Scahill.

Approach in Teaching Standard English to Native Speakers

English is used by many people all around the world. Different people use it for different purposes in different settings. The English in the modern times is not considered as a unified and single language because of many factors, one of which is the diverse society that has contributed to the development of the English language. Linguist had developed a number of specialized terms to label the different ways people nowadays use English. The first one is due to the regional variations of the people. People in different regions like the US, Canada, London, Ireland, Australia, India or Asia have different ways in using the English language. These regional variations in different areas differ very much in speaking the English language either on its pronunciation, vocabulary or grammar. (Byrd, 1999)The second is the existing sub-regions within this area. The US has many sub-regions existing; also in England there are considerably many groupings to be considered. The third factor is that all English are different, but all of them are considered and share the common core, the English language. The fourth factor entails that in addition to the regional variations of English, English has sub-groups of speakers which are alike either in education or social status.(Byrd, 1999) There are features of pronunciation and grammar that are used to link people together belonging to a social group and as part of their social identity as members of the group.The fifth factors entails that English can be categorized into subsets belonging to a certain type of communication, say the English language used by engineers, mathematicians, or a group of college students.   The sixth factor attributes the variation on how English is written or spoken. This particular factor is quite complex but the general idea is that there are differences attributed from example, a written research paper compare to a research presentation done in public. This area of topic is essential for English teac hers of ESL/EFL for them to be able to sort which type of English to teach, and how they can effectively teach the type of English to use in a communication setting appropriate with the situation and conditions. Finally, linguist often times discuss the varieties of English based on â€Å"style†. Style is often divided into loose sub-groups which label things such as â€Å"formal†, â€Å"neutral†, and â€Å"informal†. (Byrd, 1999)STANDARD AND NON-STANDARD ENGLISHIn the discussion of Standard English, the topic that greatly affects this discussion concerns with the use of terms and differentiation between standard and non-standard English. Both of these terms must be defined clearly before discussing the right approach in teaching Standard English to native English speaking students. Biber et al. (1988) suggest that â€Å"vernacular† should be used to define the Standard English rather than the tern â€Å"non-standard† because it somehow impl ies a negative connotation to it.For professional teachers of English, they should be very careful with labeling and defining the sub-categories on English. English teachers are faced with issues such as first, with regards to the term â€Å"standard† which is a label in accordance with the people who are dominating a population and are likely to label the term to something that implies to having a prescription to use something that is labeled as â€Å"standard†.The term standard does not imply it being a â€Å"better† or â€Å"best† form of English, it just is a term governed by the rational process of standardization. Second, terms which describe the variety of English with â€Å"un-† or in this case, â€Å"uneducated† should be eliminated because of the negative connotations it brings. Third, there exists the realization that a system is present in contrasting between standard and no-standard. This system gives little help in specifying t he many sub groups of English speaking people based on the vocabulary, grammar or pronunciation. Fourth, it must be understood that any individual must speak more than one version of English because in a diverse society, the skill is needed and can be used appropriately in everyday communication settings.APPROACH IN TEACHING STANDARD ENGLISHIn today’s academic curriculum, specifically in grammar, the debate is not really about grammar, but rather language. Standard American English should be taught to students for them to grasp the essential style in communicating the English language. Katz and Stevens (1997) proposes that there should be a curriculum which is based on the model of foreign-language immersion programs that aims to teach students with Standard English to teach them the value and understanding of English whether it may be in writing, speaking, reading or understanding.The authors attributed their proposal based on the observation that the traditional curricula i n most schools through the traditional method has not been effective in reaching the student’s reading, writing, speaking, listening and grammar skills. Hatwell (1985) study suggests that even with the study on formal grammar rules; the knowledge acquired by students is not translated into practice. Also explained by Brosnahan and Neuieb (1995) mentions that one of the primary reasons why students are unable to transfer their knowledge into action is because teachers are not teaching the right method.The authors suggest that the best way is to create an environment in which students are comfortable in studying the complexities of grammar. After their study, Brosnahan and Neulied conclude that teachers are likely to effectively teach the medium if they themselves like the topic and this in turn motivates their students to learn. This is called the enthusiastic instruction approach in grammar. Unfortunately, the study does not reflect the improvement on the student’s gen eral facility with Standard English.According to Weaver (1979), the isolated grammar instruction could even hinder the language development, this situation because of the idea that the situation entails student’s isolation among their peers. Rather than practicing the formal ideas in the isolation instruction program, students are deprived of the time to either read, write and converse among their peers which could significantly help them in understanding Standard English.Krashen (1985) concluded in his study that the most efficient way to acquire a second language is through immersion. Standard English, in other areas in of the world are considered as their second language because basically, they do not use the language in everyday settings and situations. The immersion approach will allow students to learn Standard English in a situation and environment where they can interact with their peers, and use the language in the direct communication process of the program.Only aft er which student learns the faculty of the second language do they learn about the language itself, and this in the end will refine their usage and style. Immersion program will succeed as a method for teaching Standard English to native English speakers because it initiates the process by which children acquires their first language. This is accredited to the fact that children learn language holistically, first, through the immersion at home, and this leads to their understanding and communication ideas about their surroundings and with other people.Through immersion, children are stimulated continuously through their first language. To affectively teach this approach, it should encompass areas in speaking, writing, listening, and reading activities. Also, different activities should constantly be referring to this method for it to be effectively to be proven in a normal classroom setting. The school administrators should also take their role in being committed with this kind of a pproach; they should be the one to facilitate a cross-curricular immersion environment that explicitly uses the Standard English to emphasize its subjects.Teachers of the immersion curriculum should also work in teams to allow the continuum process of learning for both students and teachers. This will entail a positive direction that will keep students motivated and will provide an environment where cooperation is included in every class. It must be noted though that the Immersion approach will not benefit all students, only those students in an environment where Standard American English is used poses as the best environment to which the approach can be adapted.CONCLUSIONThe traditional instruction of English is seen as ineffective and the need for a language curriculum that adapts to the developing needs of the students to become linguistically competitive is realized. Current grammar instruction and traditional methods had failed to deliver the appropriate language and communicat ing skills to the students. This is the problem that the Immersion program wishes to solve. Standard English, considered as a second language, enables students to effectively communicate with other people that comprise the diverse society we live in today. This will help them become competent and confident later on in their lives. Discreet lessons concerning prescriptive grammar is not evidently shown in the student’s language composition or their oral communicating skill, thus, the Immersion program aims to bring literacy, composition and communication together for students to master the essential concepts of Standard American English.References:BIBER, D., ET AL. (1988) Variation Across Speech and Writing, Cambridge, Cambridge University Press.BROSNAHAN, I. A. N., J. (1995) Teaching Grammar Affectively: Learning to Like Grammar   Porthsmouth, N.Y, Boyton/Cook.BYRD, P. (1999) Standard & Non-Standard English :The Dangers of Ill-defined Concepts.HARTWELL, P. (1985) Grammar, G rammars, and the Teaching of Grammar. College English, 47, 105-127.KRASHEN, S. (1985) Inquiries and Insights: Second Language Teaching, immersion, and Bilingual Education, Hayward, CA, Almany Press.STEVENS, K. A. (1997) Standard English Immersion for Native Speakers  Ã‚   PIPA.WEAVER, C. (1979) Grammar for Teachers, Urbana, IL, NCTE.

Breadtalk Analysis Essay Essays

Breadtalk Analysis Essay Essays Breadtalk Analysis Essay Paper Breadtalk Analysis Essay Paper Essay Topic: Talk Executive SummaryThis reports aims to set up the current issues that BreadTalk Group Limited is confronting and how the issues will hold an impact on their net incomes and portion ratings. In our study. a calculation of DuPont ROE Analysis between BreadTalk. Food Junction and Auric Pacific was examined and it was noticed that BreadTalk’s ROE is preponderantly higher than Food Junction and Auric Pacific over the old ages of our prognosis from FY2012 to FY2015. Based on the computations. several premises and restrictions on BreadTalk’s intrinsic value of portion monetary value were analysed and accordingly estimated with four theoretical accounts. These theoretical accounts are Dividend Valuation Model. Free Cash Flow to Equity Model. Price/Earnings Ratio Model and the Price/Book Value Model. Through the usage of the mentioned theoretical accounts. we will carry on an in-depth analysis and measure on the consequences obtained to supply an appraisal of the company’s current place and the future chances. ContentssExecutive Summary11. Introduction to BreadTalk41. 1Overview41. 2Company Structure42. Economic Environment62. 1Overview62. 2Macroeconomic6I. Commodity Price6II. Gross Domestic Product ( GDP ) 7III. Inflation8IV. Consumer Price Index ( CPI ) 9V. Interest Rates103. Industry Analysis113. 1Overview113. 2Market Segmentation113. 3SWOT Analysis12I. Strength12II. Weakness13III. Opportunities13IV. Threats144. Financial Analysis154. 1Recent Financial Performance15I. Diluted Net incomes per Share ( EPS ) 15II. Dividends per Share16III. Payout Ration164. 2DuPont Analysis17I. Return of Equity ( ROE ) Analysis17II. Net income Margin Analysis19III. Total Assets Turnover19IV. Financial Leverage204. 3Required Rate of Return21I. Beta ( ? ) 21II. Risk Free Rate24III. Market Risk Premium24IV. Capital Asset Pricing Model ( CAPM ) 254. 4Growth Rate255. Evaluation Analysis275. 1Dividend Discount Model ( DDM ) 27I. Dividend Forecast28II. Intrinsic Share Price28III. Evaluation of DDM29IV. Sensitivity Analysis295. 2Free Cash Flow to Equity Model ( FCFE ) 30I. FCFE Model31II. FCFE Model Evaluation31III. Sensitivity Analysis325. 3Price-Earnings Ratio32I. Price-Earnings Ratio Model32II. Price-Earnings Ratio Model Evaluation33III. Sensitivity Analysis345. 4Price/Book Value Ratio34I. P/BV Ratio Comparison34II. Evaluation of P/BV Model36III. Sensitivity Analysis366. Conclusion377. Mention List388. Appendix42 1. Introduction to BreadTalk2. 1 OverviewEstablished in July 2000. BreadTalk started out as a bakeshop mercantile establishment at Bugis Junction. Due to increasing popularity of their merchandises. BreadTalk expanded their operations to five other retail mercantile establishments and made programs for franchising operations before being publically listed in 2003. With their proprietary trade names being BreadTalk. Toast Box. Food Republic. RamenPlay and The Icing Room every bit good as franchises from USA’s Carl’s Jr and Taiwan’s Michelin Star receiver Din Tai Fung. Having such accolade bakeshop. eating house and nutrient tribunal. BreadTalk Group Limited became a outstanding nutrient and drinks ( F A ; B ) trade name. Consequently. the Group/BreadTalk grew into a huge web of more than 15 states. such as Mainland China. Singapore. Indonesia and Hong Kong. An operation of this graduated table is sustained by 6000 planetary employees pull offing over 500 mercanti le establishments ( BreadTalk 2012b ) . 2. 2 Company Structure The BreadTalk Group board of managers consists of 5 cardinal persons who are equipped with rich experience from assorted expertness such as research and development. investing. strategic planning and direction ( BreadTalk 2012a ) . The elaborate construction along with the direction study can be found in ( BreadTalk 2011 ) . The managers supervising the operations of BreadTalk consist of: Katherine Lee Lih Leng| Deputy Chairman who is responsible for the Group’s research and development. oversees new constructs and thoughts. | Ong Kian Min| Independent Director. The lead Independent Director who besides chairs the Auditing and Nominating Committees. every bit good as a member of the Remuneration Committee of BreadTalk Group. | Chan Soo Sen| Independent Director who heads the Remuneration Committee. He is besides a member of the Audit Committee and Nominating Committee of BreadTalk Group. | Dr Tan Khee Giap| Independent Director. A member of the Audit Committee. Dr Tan is besides presently the Co-Director of Asia Competitiveness Institute and an Associate Professor of Public Policy at the Lee Kuan Yew School of Public Policy at the National University of Singapore. He besides chairs the Singapore National Committee for Pacific Economic Cooperation and holds directorships in a few listed companies in Singapore. | 2. Economic Environment3. 3 OverviewThis subdivision extends the overview of the macroeconomic factors that will impact BreadTalk Group. Macroeconomic factors refer to an facet that resides outside the environment of the company where it involves the economic system from both regional and national degrees. These factors consist of rising prices. labour cost. currency exchange rate and the planetary economic public presentation. BreadTalk may meet assorted issues such as high labour cost and natural stuffs monetary values which may impact their operating disbursals. These factors can be farther analysed utilizing the assorted macroeconomic issues mentioned below. 3. 4 Macroeconomic I. Commodity Price Table 1: World Agriculture Pricing SummaryDatas obtained from Monetary Authority of Singapore. Table 2: Agribusiness Consumption and Production.Datas obtained from Monetary Authority of Singapore.Wheat monetary values increased greatly from the past 6 months but bit by bit diminishing at an mean rate of 0. 87 % as of 13 September 2012 ( MarketWatch 2012b ) . However. rough oil monetary values decreased significantly during the first half of 2012. But from July onwards. it rose at an norm of 14 % for the following 3 months ( MarketWatch 2012a ) . Similarly. the monetary values of sugar dropped reasonably before lifting at an mean rate of 0. 15 % as of 13 September 2012 ( MarketWatch 2012c ) . In position of the above trade goods fluctuations. we can understand that these indispensable altogether stuffs greatly affects the operating cost for the concerns under the BreadTalk group as they are basic necessities for the input of their day-to-day operations. II. Gross Domestic Product ( GDP ) A recent quarterly Survey of Professional Forecasters released by Monetary Authority of Singapore ( MAS ) reveal that Singapore’s GDP will be expected to spread out at a slower gait this twelvemonth at 2. 4 % compared to a median of 3. 0 % estimated three months ago ( AsiaOne 2012 ) . Singapore’s official economic growing is set to be 1. 5 % to 2. 5 % this twelvemonth with the growing of fabrication and fiscal sectors adjusted down from 3. 0 % to 2. 7 % and 2. 7 % to 1. 1 % severally. At the consumer terminal. retail gross revenues reported important growing in the first few months of January and February. The nutrient and drink services sector has seen an mean addition in their gross revenues of up to 2. 6 % month-on-month. mostly contributed by the addition in figure of locals and tourers who dined at eating houses and other nutrient mercantile establishments ( MAS 2012b ) . Additionally. Singapore’s 2013 mentality on the average prognosis of GDP growing is bes ides reduced from 4. 5 % to 3. 9 % . Businesss are well affected by the economic activities. and BreadTalk is non spared. BreadTalk should take into history of the altering GDP as the addition disbursement by consumer can be reflected by a rise in GDP. By looking at the forecasted GDP for 2013. BreadTalk can look frontward to higher disbursement by consumers. They can break strategise where they enlargement programs can be see during economic roar. or holding eventualities programs such as minimising operating costs when GDP growing is slow. III. Inflation The little addition in consumer monetary values in Q1 of 2012 is expected through the pass-through of cost force per unit areas that are built up over 2010 and 2011. The overall rising prices will stay steadfast with the subsequent monetary value hikings. and will finally ease towards the terminal of the twelvemonth. Analysts have forecasted that the little addition is merely impermanent and overall rising prices will chair to their historical norm. The domestic nutrient monetary values are likely to lift reasonably for the remainder of the twelvemonth due to the increasing trade good monetary values that have yet to be taken upon by the consumers. For case. the spike in trade good monetary values due to external dazes in 2010 and 2011 has yet to be to the full reflected in retail monetary values where providers promises to keep house-brand monetary values stable until the terminal of June. Consumers will be affected subsequently when companies pass these higher operating costs to th em. Therefore. nutrient rising prices this twelvemonth is projected to be 3. 1 % ( MAS 2012b ) . Singapore’s nucleus rising prices mentality is presently targeted at 2. 5 % . which is 0. 2 % lower than the predicted figure of 2. 7 % three months ago. Core rising prices excludes adjustment and conveyance factors that are chiefly influenced by authorities policies. Furthermore. rising prices is besides due to higher trade goods monetary values every bit good as the increased rewards for low-skilled workers. This is caused by the rigorous hiring limitation imposed by the authorities on foreign workers ( MAS 2012c ) . At the same clip. overall planetary trade good monetary values remain below the old twelvemonth degrees. This helps to maintain domestic oil and nutrient rising prices controlled in the close hereafter. Therefore. MAS nucleus rising prices will go on to run between 2. 5 % – 3. 0 % or may be somewhat lower in the following few months or even the whole twelvemonth ( MAS 2012a ) . As for now. the adjusted projection for 2013 rising prices is set at 3. 2 % . up by 0. 2 % where the targeted rising prices of 3. 0 % is to be expected following twelvemonth ( AsiaOne 2012 ) . The addition in rising prices will trip the consequence of lifting monetary values for both merchandises and services in the market. This will do companies like BreadTalk to incur significant costs for their twenty-four hours to twenty-four hours operations. In bend. BreadTalk will be pressurised to increase the monetary values for their merchandises in order to countervail these extra costs. However. the addition in monetary values may besides endanger the gross revenues of BreadTalk as clients may seek other cheaper options. IV. Consumer Price Index ( CPI ) Consumer Price Index ( CPI ) is an instrument to mensurate the current consumer monetary value rising prices due to monetary value alterations in a fixed basket of ingestion goods and services normally purchased by the families over a certain period ( Singstat 2012c ) . It includes all ingestion outgo that are expanded by resident families. less other non-consumption outgos such as purchase of securities. belongings and other fiscal assets. Resident families are defined as individuals held by Singapore Citizen or Permanent Resident ( PR ) . In order to analyze BreadTalk farther. it is of import to estimate the CPI for the peculiar twelvemonth. Whereas BreadTalk trades with the nutrient and services sector such as eating house and bakeshop. we can look into the basket of peddler nutrient ( including nutrient tribunals ) . eating houses. sugar conserves and confectionery in the CPI basket. In the period of Jan – Jun 2011 to Jan – Jun 2012. the per centum addition in monet ary values of these basket of points are 2. 3 % . 3. 9 % and 2. 2 % severally ( Singstat 2012c ) . Inflationary force per unit areas can be felt highest in eating houses. Further prognosis towards the terminal of the twelvemonth signals the overall consumer monetary value index lifting from 4. 2 % to 4. 4 % based on a polled by Survey of Professional Forecasters done by MAS ( Singstat 2012c ) . BreadTalk. being an international concern. is able to use these CPI indexes to calculate the consumers’ outgos of relevant states and accommodate to the monetary value sensitiveness of the consumers by estimating the consumers’ current and future buying power. I. II.III.IV.V. Interest RatessPrime loaning rates remain dead at the per centum of 5. 38 without any alterations since 2008 ( Singstat 2012a ) . The addition in involvement rates will do a direct impact on BreadTalk as it has to depend on the Bankss to borrow money. In the concerns perspective. they will incur higher costs for loan refunds from the higher involvement disbursals. 1.2.3. Industry Analysis3.4. 5 Overview Graph 1: Business Life CycleThe industry life rhythm indicates that BreadTalk is presently in the rapid speed uping growing phase as they are still seeking enlargement in the planetary and local market. due to the increasing demands from the consumers. The grounds for such addition is due to the population growing along with the turning GDP of developing states like China and Indonesia. where consumers seek higher criterions of life and with better buying power to purchase or patronize quality merchandises every bit good as services offered by BreadTalk. Market impregnation in Singapore besides suggests the ground why BreadTalk is developing programs for their planetary enlargement in order to derive more market portion. 4. 6 Market Segmentation Market cleavage is the separation of consumers in the market based on their geographical. psychological. behavioral and demographic differences. Due to the different features. we can place possible consumers of BreadTalk. This is to let preparation of a program that will be able to stir their involvement in order to increase gross revenues and maximise gross. 4. 7 SWOT Analysis I. StrengthUnique BrandingThe alone stigmatization every bit good as its advanced scope of merchandises from its bakeshops appealed greatly to the consumer’s involvement. Coupled with the company’s typical designs of its mercantile establishment consisting of a diaphanous glass window that allows client to see the bakers at work. this displays a friendly environment for the consumers every bit good as portraying a modern-day image of the company. Merchandises Due to the dynamic gustatory sensation and penchants from the consumers. BreadTalk seeks to constantly develop and present new merchandises amounting to every bit much as 10 points every one-fourth as an add-on to its bing 150 choices of pastries. bars every bit good as staff of lifes. By revolutionising the bread civilization. BreadTalk has successfully gained consciousness of its merchandises through the acknowledgment from assorted international involvements due to its alone gustatory sensation and physical entreaty. Locally. BreadTalk had besides gained acknowledgment from assorted local awards such as the Singapore Promising Brand Award. which suggest the popularity of the merchandises. Strategic Locations Majority of BreadTalk mercantile establishments are located either in shopping promenades or near to public conveyance hubs. Strategic arrangements of BreadTalk mercantile establishments at high traffic volume topographic points attract possible clients. Therefore. the location of the mercantile establishments plays an of import component to drive high volume of gross revenues. In add-on. by puting the BreadTalk mercantile establishments near other popular retail shops. such as supermarkets and departmental shops. will further pull more possible clients. II. Failing PricingWith its merchandises being priced higher as compared to its rivals. budget witting consumers will be put off to buy BreadTalk merchandises. particularly with bread being a trade good. Selection of Merchandises Although holding a wide mixture of merchandises. BreadTalk’s mixture is confined to bread and bars. as opposed to some of its rivals that extends its choice to include pastries and other mixtures. Rising Wagess In Singapore. the alteration of employee policy by authorities might raise costs of the low skilled workers for employers. For illustration. employers are required to increase their parts towards employees and levies of the foreign workers. Workers might besides increase their pay outlooks in future ( Lim 2012 ) . III. Opportunities Nature of MerchandisesSince staff of life is considered a basic and trade good in legion states. BreadTalk has potency for planetary growing as there is continual demand for staff of life ; an chance for spread outing its concern internationally. Future developments of Shopping Centres Shoping Centres in new strategic location provides ample chances for BreadTalk to spread out its ventures which will lend to a larger market portion in its operating industries. International Markets BreadTalk ventures into other markets by organizing partnerships with states such as China. Indonesia. Philippines and Hong Kong. IV. MenacesProduct/Brand Concept ReplicationThe reproduction of BreadTalk’s product/brand construct is considered a weak menace in Singapore due to its current market portion and presence. However. a greater menace would be the reproduction by bakeshops in parts that have non been ventured into by BreadTalk. such as the States. Australia and Europe.presenting as a barrier of entry for BreadTalk ; particularly in China where reproduction is common. Competition With the addition in emerging bakeshops. BreadTalk encounters a tough competition against rivals like Delifrance along with other rivals in the nutrient tribunal industry such as Food Junctions. Fluctuations of natural stuff monetary value BreadTalk may be affected by fluctuations of the natural stuffs monetary values. such as wheat. sugar. rough oil and terrible climatic conditions as this will take to an addition in supply costs. These are some external factors which are beyond the control of the company. 4. Fiscal Analysis5. 8 Recent Financial PerformanceMentioning to Appendix IV. BreadTalk experienced positive growing in footings of gross from 2007 to 2011. However. there was a lessening in gross growing in 2009 and 2011. amounting a sum of $ 246. 493. 000 and $ 365. 904. 000 severally. The cause for this slow growing is due to the important addition in outgos from distributions and administrative disbursals for both old ages. Despite the slower growing in grosss and the rise in disbursals. BreadTalk is still doing overall net income as the Earnings. Before Interest and Tax ( EBIT ) are exposing a positive per centum yearly. As EBIT does non take into history of the different external factors such as the revenue enhancement policies and the fiscal involvement. it can accurately cipher the overall profitableness of the company every bit good as concentrating on the company’s ability for net income coevals based on its gross revenues. In the instance of BreadTalk. the EBIT bord ers indicated positive per centum yearly but experienced a lessening in 2011. Due to factors such as lifting flour monetary values during the drouth in China. there were guesss that China may be required to import wheat ( Coonan 2011 ) . Another factor was the lower net income coevals from the Singapore and China bakery mercantile establishments which are compensated by the belongings disposal in China. which amounts to $ 4. 2 million ( BreadTalk 2012b ) . I. Diluted Net incomes per Share ( EPS ) Diluted Net incomes Per Share ( EPS ) is a measuring of the quality of a company’s net incomes if all the company exchangeable securities were exercised ( Reuters 2012 ) . These securities will ensue in an addition in the entire outstanding portions. The net incomes will be divided by all the company securities. Year| FY2008| FY2009| FY2010| FY2011| Diluted EPS ( cents ) | 2. 76| 3. 94| 3. 99| 4. 10|Increment ( % ) | -| 42. 75 % | 1. 27 % | 2. 76 % |Table 3: Diluted EPS Table: From 2008 To 2011The diluted EPS increase of 42. 75 % from FY2008 to FY2009 is due to the accommodation as BreadTalk issued fillips portion in 2010 ( BreadTalk 2011 ) . However. there is a steady increase from 2010 onwards. II. Dividends per Share Dividends per portion ( DPS ) measures the most recent dividend paid over entire figure of portions held by the company ( Investopedia 2012 ) . It really determines how much the stockholders receive by manner of dividends and may besides be used to cipher the dividend output. This can be computed by the expression below: D – Dividends paid to equity stockholders for a period ( including interim dividends )SD – Special Dividends. dividends that are issued one timeS – Total figure of outstanding issued equity portionsThe entire figure of ordinary portions can be calculated utilizing the leaden norm over the coverage period. Year| FY 2008| FY 2009| FY 2010| FY2011|DPS ( cents ) | 0. 55| 1| 1| 1|Table 4: Displaced person tabular array: From FY 2008 To FY 2011As shown in table 3. dividends per portion has somewhat increased by $ 0. 0045 from 2008 to 2009 and remained at changeless rate of $ 0. 01 per twelvemonth from FY2009 to FY2011. III. Payout RationPayout ratio is use to exemplify how companies proportionate their net incomes. For case. a high payout ratio indicates that the company is giving out more of the company’s net incomes to their investors. Whereas a lower payout ratio indicates that the company retain more of their net incomes for future investings. It besides acts as an index to how good the company’s net incomes can back up the dividend payouts. It is easier to pay out dividends of a smaller sum than a larger amount. Therefore. it demonstrates the security of buying a portion with a smaller payout ratio. The payout ratio is calculated as follows: DPS – Dividends per ShareEPS – Net incomes per Share Year| FY 2008| FY 2009| FY 2010| FY 2011|Net incomes Per Share ( cents ) | 2. 76| 3. 95| 4. 01| 4. 12|DPS ( cents ) | 0. 55| 1| 1| 1|Payout Ratio| 0. 199275| 0. 2531646| 0. 2493766| 0. 2427184| Table 5: Past Payout Ratio from Year 2008 to 2011.Datas obtained from BreadTalk Annual Report 2008 to 2011Base on past dividends payouts from 2008 to 2009. there was a significant addition in the payout ratio from 19 % to 25 % due to increment in both EPS and DPS that was given out as mentioned before. As from FY2009 to FY2011. the payout ratio remains dead at an norm of 24 % . 5. 9 DuPont Analysis I. Return of Equity ( ROE ) AnalysisImportance of ROEThe Return on Equity ( ROE ) refers to the rate of return that the direction earned with the capital invested by the shareholders. after subtracting the payments to all other capital providers. The deliberate ratio is deemed of import to the company as it will be used as an index for the company’s profitableness. every bit good as for comparing with other rivals in the same industry. DuPont AnalysisThe dislocation of ROE will let us to see the assorted factors which can act upon the company’s public presentation. The analysis identified 3 factors that will act upon ROE. These are known as Operating Efficiency. Asset-use Efficiency and Financial Leverage. Chart 1: Comparison of ROE. Refer to Appendix III.The DuPont Analysis indicates that BreadTalk is surpassing its rivals like Auric Pacific Ltd every bit good as Food Junction. Judging from Chart 1. the ground for the lessening in ROE from BreadTalk is chiefly due to the addition in operating disbursals of 54. 42 % from $ 117. 952. 000 in FY2009 to $ 182. 146. 000 in FY2011. Over the period of 3 fiscal old ages. BreadTalk experienced a instead changeless ROE with their ROE decreased by 3. 41 % from 2009 to 2011. The changeless ROE that BreadTalk experience is comparatively normal in comparing with other companies in the same industry. However. due to higher cost of goods and disbursals of Auric which exceeded the generated gross. there is a negative impact on the computed ROE. II. Net income Margin Analysis The net income border is defined as the extent of the company’s ability to pull off the coevals of grosss from cost control. This includes the considerations of the company’s operating efficiency which constitutes portion of their scheme ( Fairfield A ; Yohn 2001 ) . Chart 2: Comparison of Profit Margin. Refer to Appendix III. BreadTalk had a lower net income border as compared with Food Junction in FY2009 and FY2010. Both are diminishing from FY2009 to FY2011. However. the lessening of BreadTalk net income border is considered to be moderate as compared with the drastic bead of Food Junction net income border. From the chart above. BreadTalk remains in a strong place in comparing with their rivals in FY2011. III. Total Assets Turnover The Asset Turnover is the measuring of the company’s effectivity to bring forth grosss from their assets. This will reflect the company’s plus use. Chart 3: Comparison of Total Assets Turnover. Refer to Appendix III. BreadTalk had the highest productiveness as compared with Food Junction and Auric Pacific. We can detect a little lessening of 0. 23 % . from 1. 48 % in FY2010 to 1. 25 % in FY2011 while the per centum motion for Food Junction and Auric Pacific remains undistinguished. This implies that Food Junction and Auric Pacific is more efficient in bring forthing stable assets turnover. Information on the future profitableness of BreadTalk can besides be observed from the alteration in plus turnover ( Fairfield A ; Yohn 2001 ) . IV. Financial Leverage Fiscal Leverage Analysis is the survey of the grade whereby the company purchase on the common equity in order to borrow money to get assets. A company with a low purchase ratio will be perceived as less hazardous when comparison with another company with a higher purchase ratio ( Guo. Wang A ; Wu 2011 ) . Chart 4: Comparison of Financial Leverage. Refer to Appendix III. The BreadTalk high purchase ratio indicates a higher hazard over their rivals. During the roar period. the high purchase is good as it permits the company to accomplish greater net incomes. In contrast. the company will meet hard currency flow jobs during the recession periods. as the company might non be able to pay off the involvement refunds with the gross revenues gross. 5. 10 Needed Rate of Return I. Beta ( ? )Beta is defined as holding a additive relationship matching to the rate of return of an investing every bit good as the market index. Beta fundamentally measures the grade of an asset’s volatility to the market or the volatility of the fund to the benchmark. Stockss with beta larger than 1 are considered aggressive stocks and being more volatile than the market index while beta with less than 1 are considered as defensive stocks that are less volatile than the market index ( Tofallis 2008 ) . Graph 2: Beta Computation. Refer to Appendix I.The expression to deduce the Beta utilizing the characteristic line is: RBreadTalk = a + bBreadTalk ( RSTI ) + vitamin E whereby:RBreadTalk| = realized returns of BreadTalk|RSTI| = realized returns of STI Index 1|a| = intercept return independent of the market|b| = incline of the characteristic line|e| = unsystematic hazard ( norms to zero ) | The premise is that the returns of the STI Index are to be used as a placeholder for the market portfolio. When the above expression is rewritten and applied in similar footings with the CAPM expression. the Beta of BreadTalk is: ?BreadTalk= Covarance ( RBreadTalk. RSTICovariance of RSTI BreadTalk Raw Beta is computed utilizing the arrested development analysis based on market portfolio of STI and BreadTalk’s monthly realized returns for the period of September 2011 to August 2012. Based on the information collected. the construct of Holding Period Yield ( HPY ) is applied based on annualized computation in order to happen out how much output can obtain from an investing in a same period. This HPY figures calculated are so farther used to plot the arrested development graph in order to develop a best fit characteristic line to analyze the correlativity between the returns. The slope/gradient of the arrested development curve will so bespeak the Raw Beta of BreadTalk. As shown in the above chart. the scattered graph shows a additive relationship between the HPY of STI and BreadTalk. The Raw Beta from the gradient is at 1. 0047 where the correlativity coefficient is found to be 0. 7149 ( mention to Appendix I ) . However. this natural beta might non be accurate as other factors such as market placeholder and clip interval may impact the beta significantly. Therefore. it is necessary to set the natural beta. Using the adjusted beta expression: Adjusted beta = ( 2/3 ) ( natural beta ) + ( 1/3 ) ( 1. 0 ) Therefore. the forecasted beta of BreadTalk is:( 2/3 ) ( 1. 0047 ) + ( 1/3 ) ( 1. 0 ) = 1. 00313It is assumed that the historical Beta is an accurate contemplation of the hazard in a stock. This shows that any stock returns that is out of line with themarket returns will be adjusted into line with the market. II. Table [ 6 ] : Output for Singapore Government Securities ( Reference from IMF ) Risk Free Rate We will be utilizing the 10 old ages authorities bonds yield as the market hazard free rate to move as a criterion of measuring for all fiscal sectors. because it is simpler to manage states that do non publish Treasury measures in a consistent mode. The hazard free rate based on 17 Sep 2012 will be 1. 55. III. Market Risk Premium Market hazard premium determines the degree of compensation that risk-averse investor can anticipate to have from puting in a volatile market by subtracting the expected returns from predominating hazard free rate ( Han 2011 ) ) . It deals with factors that include market systematic hazard and market volatility. Therefore. it is indispensable to take into history the hazard premium that is link with volatility hazard in order to analyze the relationship between market hazard and returns. Risk Premium= Rm- Rf Rm=Market ReturnRf=Risk Free RateSince our prognosis is based on portion monetary value of a local stock listed on STI. we decided to utilize the 10-years securities issued by the Singapore authorities in order to aline with market with consistence. Base on this premise. the 10-years securities is used in calculating the geometric hazard return. We obtained 0. 0735 to be used for our market return for hazard premium computation ( mention to Appendix V ) . Therefore. the hazard premium is calculated to be 0. 058 based on the market return and hazard free rate. IV. Capital Asset Pricing Model ( CAPM ) Capital plus pricing theoretical account ( CAPM ) is use in measuring hazardous stocks or portfolios of stocks every bit good as lucubrating the relationship between the expected return and systematic hazard in the market ( Chen. Lin A ; Yu 2012 ) . Rf=0. 0155| Rm=0. 058|( Rm- Rf ) =0. 058|?=1. 00313| CAPM FORMULA Through the usage of the CAPM equation above. we are able to find the needed rate of return on the stocks for BreadTalk to be 7. 37 % . 5. 11 Growth Rate Harmonizing to our industry analysis. BreadTalk is still in the enlargement stage with the purpose of 1000 mercantile establishments within the following 2 to 3 old ages. from 2012 onwards. BreadTalk went into a joint venture. with Nipponese Ajinomoto Bakery Co. Ltd. which was opened on January 2012 in Shanghai. We foresee that this joint venture every bit good as the 1000 mercantile establishments mission will take to a supranormal growing in the future DPS of 25 % in FY2012 and 33 % for FY2013 to FY2014. We would anticipate the supranormal growing to stabilise and finally cut down to a changeless rate of 3. 4 % . The derivation of 3. 4 % growing rate is based on the undermentioned premise. The forecasted Singapore GDP for 2015 is 3. 7 % and we would anticipate the changeless growing rate to be lower than the forecasted GDP every b it good as the needed rate of return of 7. 37 % ( IMF 2012 ) . Phase 1: Low to Moderate Growth Stage2012| Phase 2: High Growth Rate2013-2014| Phase 3: Changeless Growth Rate2015 onwards| Forecasted growing rate of 25 % . Joint ventures with Nipponese Ajinomoto Bakery Co. LtdIncrease of mercantile establishment by 144. from 534 to 678 ( refer to Appendix II ) | Forecasted growing rate of 33 % . Venturing into new market such as Taiwan. Further addition of mercantile establishment to 1000 by 2014. | Forecasted growing rate of 3. 4 % . Stable economic system. Reaching the phase of adulthood. stable income watercourse. reduced capital required/| Table 7: Forecasted growing rate 5. Evaluation Analysis6. 12 Dividend Discount Model ( DDM )All the present values of the expected future stockholders dividend payout by the company is being determined by the DDM theoretical account. The appropriate price reduction rate being employed is the cost of equity. For case. the stock will be considered overvalued if the value obtained from the DDM is lower than the current stock value. This theoretical account will non work if the company does non pay out dividends. It is good to observe that non all companies issue dividends even if they experience increasing growing rate as these net incomes may be used to reinvest back in the company ( Brown 2009 ) . Even though DDM is good for measuring mature companies. this does non use to BreadTalk because they do non belong to the mature stage of their life rhythm. The dividends are non expected to turn at a changeless rate as shown in the equation below: In fact. holding a changeless growing rate is comparatively unrealistic. Changes in a firm’s concern schemes or sing state of affairss will do the chances of the house to be adjusted. Taking this into consideration. the multi-levelled dividend growing rate theoretical account maintains the likeliness of different degrees dividend growing. As shown by the equation below. I. Dividend PrognosisWe will calculate the dividend per portion for 2012 to 2015 based on the premise of the future growing rate as discussed in growing rate under subdivision 4 of the study. | FY2011A| FY2012F| FY2013F| FY2014F| FY2015F| Dividend Growth Rate ( DGR ) | -| 25 % | 33 % | 33 % | 3 % |DPS ( $ ) | 0. 0100| 0. 0125| 0. 0166| 0. 0221| 0. 0229|Table 8: Forecasted Dividends for 2012 to 2015Given the forecasted dividend from 2012 to 2015 along with the expected changeless growing rate of 3. 4 % and needed rate of return of 7. 37 % . we will be able to calculate the portion monetary value of BreadTalk based on the expression below. II. Intrinsic Share Price Given the forecasted dividend from 2012 to 2015 along with the expected changeless growing rate of 3. 4 % and needed rate of return of 7. 37 % . we will be able to calculate the portion monetary value of BreadTalk based on the expression below. III. Evaluation of DDMIn comparing to BreadTalk portion monetary value of $ 0. 55 on 18th September 2012. the computed portion monetary value of $ 0. 50919 suggests that BreadTalk portion monetary value is somewhat OVERVALUED ( SGX 2012 ) . Therefore. the DDM implies a SELL determination.IV. Sensitivity Analysis As the needed rate of return computation is based on past public presentation with some prediction and the growing rate is based on premise. there will be opportunities that existent public presentation will non fit the coveted result. Therefore. we will be utilizing sensitivity analysis to foretell the public presentation in instance the state of affairs did non turn out to be as predicted based on  ± 1 % for needed rate of return and the growing rate. Table 9: Computed Data for DDM’s Sensitivity ModelFrom the comparing of Table 7. we can understand that higher growing rate will ensue in higher portion monetary values whereas the higher needed rate of return will ensue in a lower portion monetary values. Required rate of return can be affected by the hazard factor ( ? ) . Therefore. if the needed return for BreadTalk additions by 1 % . there will be a noteworthy bead of portion monetary value given a changeless growing rate. 6. 13 Free Cash Flow to Equity Model ( FCFE ) In order to measure the portion monetary value of BreadTalk by utilizing the Free Cash Flow Equity ( FCFE ) theoretical account. we have forecasted the income statements of BreadTalk from 2012 to 2015 ( mention to Appendix VI A ; VII ) . We need to see a few premises when prediction. Premise for Gross The corporate purpose of BreadTalk is to go a strong trade name internationally and locally with its rapid enlargement programs to accomplish its mark of 1000 mercantile establishments within the following three old ages ( BreadTalk 2011 ) . In the planetary spending. the figure of bakeshops found in 43 metropoliss in mainland China has increased by 5 mercantile establishments over the past twelvemonth. With the mentality for Mainland China staying positive. BreadTalk has capitalised on its moneymaking chances. For case in January 2012. BreadTalk has entered into a collaborative venture with taking participant in bakeshop dough merchandises. Nipponese Ajinomoto Bakery Co. Ltd. to put in a frozen dough mill in Shanghai ( BreadTalk 2011 ) . BreadTalk has besides added a sum of 3 iconic Din Tai Fung outlets that includes the gap of a 7. 200 sq ft mercantile establishment at Central World Mall in Bangkok. a duplex eating house at 112 Katong shopping Centre and Marina Bay Sands in Singapo re ( BreadTalk 2011 ) . Premises for operating disbursals With a larger graduated table of BreadTalk operations globally and locally. we are presuming that there will be a rise in outgos and costs from trade goods. labour rewards and belongings leases. This includes the disbursals from the distributions and merchandising disbursals along with other concern administrative outgos. Additionally. revenue enhancements may besides be affected by the alterations in the authorities policies in the several states. The FCFE theoretical account can be referred to as the hard currency flow available for refunding the firm’s common shareholder after subtracting capital outgo and debt payments ( Brown A ; Reilly 2009 ) . II. FCFE Model Similar to the DDM theoretical account. the discounted FCFE theoretical account is used to measure the intrinsic value of a company’s portion monetary value. It is appropriate to utilize this theoretical account in state of affairss where the company does non pay a uninterrupted flow of dividends or in worst instance. no dividends pay out at all. Hence. this is to mensurate the company’s present values of the expected FCFE available to stockholders in the hereafter. The expression as represented: Using the expression. the FCFE was computed to be:FY2012F: 0. 00042FY2013F: 0. 00327FY2014F: 0. 00227FY2015F: 0. 03362( Mention to Appendix VIII ) III. FCFE Model EvaluationUsing the FCFE with the growing rate of 3. 4 % and 7. 37 % needed rate of return. the intrinsic value for BreadTalk portion is computed to be $ 0. 68922. Comparing with the market value of $ 0. 55 based on 18 September 2012. it can be seen that BreadTalk portion monetary value is UNDERVALUED. This will take to higher demand for BreadTalk Share. which will finally cut down the needed rate of return and conveying the existent portion monetary value back to computed equilibrium. $ 0. 68922. Therefore. the place of this would be to BUY. IV. Sensitivity Analysis However. similar to DDM. we will be utilizing  ± 1 % for needed rate of return and the growing rate for the sensitiveness analysis. Table 10: Computed Data for FCFE’s Sensitivity Model Based on the tabular array. we can detect the tendency of higher growing rate or reduced required of return for BreadTalk lead to the addition of intrinsic monetary value exponentially. Therefore. wrongly forecasted of hazard factors which can impact the needed rate of return will ensue in incorrect determination. Given 3. 4 % growing rate. utilizing 7. 37 % needed rate of return will propose a bargain determination given the portion monetary value of $ 0. 55. But an addition of 1 % needed rate of return would province that the stock is overvalued. 6. 14 Price-Earnings Ratio I. Price-Earnings Ratio ModelPrice Net incomes Ratio measures how much an investor is willing to offer for per dollar of reported net incomes ( Brown A ; Reilly 2009 ) . It can be merely put as the figure of times the investors are willing to pay for the stock. multiplied by the forecasted net incomes for the undermentioned twelvemonth. For case. a high P/E ratio would bespeak that investors will be anticipating higher growing of net incomes in comparing with a lower P/E ratio. Consequently. it is an added advantage for an investor to compare the assorted ratios between two companies within the same industries. market or even its ain historical monetary value net incomes records. Therefore. the P/E ratio would non be utile for investors if they are comparing companies of different industries as chances differ from each industries. The expression as shown below: Table 11: Price Net incomes Ratio Computation and Comparisons.The P/E value of BreadTalk in 2012 can be calculated utilizing the expression as of below:V2012 = P/E 2012F x EPS 2013FV2012 = 11. 33086115 Ten 0. 06188= 0. 7012Value of BreadTalk for 2012 was calculated to be S $ 0. 70II. Price-Earnings Ratio Model EvaluationThe P/E ratio of BreadTalk is higher in comparing to its rivals. The value of BreadTalk computed utilizing the Price/Earnings Ratio is higher than the current portion monetary value. We believe it is due our strong forecasted net incomes and the premise that the figure of portions remained the same. For illustration. if BreadTalk decided to increase the figure of portions to fund for their future enlargement. the computed value of BreadTalk’s portion would diminish. Therefore. this would do the overall net incomes per portion to diminish. Our computed P/E ratio of 11. 33 suggests that investors are willing to pay $ 11. 33 for every $ 1 of net incomes that the c ompany generates. Furthermore. the P/E ratio is diminishing which indicates BreadTalk stocks are sing superior risk-adjusted consequences comparative to the market public presentation. The portion monetary value of $ 0. 70 justifies this premise that BreadTalk’s growing potency is being UNDERVALUED. Therefore. this is an index to BUY. III. Sensitivity AnalysisSensitivity analysis allows us to find the sensitiveness of portion monetary value value to alterations in P/E ratio and EPS. For this sensitiveness analysis. the EPS and the P/E ratio are varied at  ± 1 for observation of the tendencies in the portion monetary value. Table 12: Computed Data for P/E Ratio’s Sensitivity ModelLooking at the tendency from the figure. we can deduce that EPS has a significant bearing on the intrinsic value of BreadTalk portions. In other words. a larger addition in the intrinsic value of the portion is due to the addition in EPS. Therefore. the EPS forecasted affects the truth of the rating of the P/E ratio. 6. 15 Price/Book Value Ratio I. P/BV Ratio ComparisonThe Price/Book ( P/B ) value ratio is being used for the comparing of the company’s stock market value to its book value. Even though a low P/B ratio may perchance bespeak that the stock is undervalued which may pull investors. it can besides reflect that the company is confronting certain cardinal jobs such as the company assets gaining hapless or even negative return ( Brown A ; Reilly 2009 ) . The Price/Book value ratio can be calculated by utilizing the expression below: Book Value: Entire Asset – IntangibleAsset – Total Liability Book Value per Share = Book value / no. of outstanding portions Price/Book Value Ratio 2011 = Market Value / Book Value We can therefore value the portion monetary value of BreadTalk for the fiscal twelvemonth ( FY ) utilizing the expression: Value = P/BVFY2012 x NAVFY2013Premises:1. Market Share monetary value remains changeless at $ 0. 552. No. of Outstanding Shares remains the same at 281. 197. 676 3. Income Statement sum are forecasted from the twelvemonth 2012 to 2015 4. The growing rate is assumed to be zero.Value of BreadTalk for 2012 was computed to be around S $ 0. 60. II. Evaluation of P/BV ModelFrom the tabular array above. we can clearly see that the values of BreadTalk computed utilizing the Price/Book Value Ratio is somewhat higher than the current market monetary value and is increasing at a moderate rate. We evaluated that this is due our strong forecasted income statement public presentations every bit good as the premise of the outstanding figure of portions and market monetary values staying changeless. Therefore. the P/BV ratio indicates the determination to BUY. III. Sensitivity A nalysis The sensitiveness analysis is used to analyze the relationship between the P/BV ratios to assorted values of the NAV. For this sensitiveness analysis. the P/BV ratio and the NAV are varied at  ± 1 for observation of the tendencies. Table 13: Computed Data for P/BV Ratio’s Sensitivity Model Looking at the tendency from the figure. we can find that the P/BV ratio has a positive relationship with the NAV. This is apparent when the value of the P/BV ratio additions. the value of NAV additions every bit good. The chief aim is to calculate the sensitiveness and truth of the P/BV ratio to the assorted NAV. An accurate NAV prognosis will ensue in the accurate analysis of the P/BV ratio. Hence. in order to accurately foretell P/BVratio. accurate NAV prognosis is important. 6. DecisionModels| Forecasted Price ( SGD ) | Actual Price ( As of 18 September 2012 ) | Evaluation| Decision| Dividend Discount Model ( DDM ) | $ 0. 51| $ 0. 55| Overvalued| SELL| Free Cash Flow to Equity ( FCFE ) | $ 0. 69| $ 0. 55| Undervalued| BUY| Price / Earnings Ratio ( P/E ) | $ 0. 70| $ 0. 55| Undervalued| BUY| Price / Book Value Ratio ( P/BV ) | $ 060| $ 0. 55| Undervalued| BUY| Table 14: Comparisons and Summarized Data for Different Models. Based on our findings from the 4 ratings theoretical accounts and analysis. our group recommends an overall BUY determination for BreadTalk’s stocks. Through our elaborate analysis on the forecasted consequences. we concluded that the ratings should non be used independently as premises are besides taken into consideration when calculating the consequences. Therefore. it may non be a true contemplation of the world. Last. we believe that BreadTalk’s portion monetary value will lift within the following few old ages. Howeve r. due to uncertainnesss in the hereafter. we would rede investors to take on a proactive attack by following BreadTalk’s fiscal public presentation on a regular basis. 4.5.6.7. Reference List1. AsiaOne 2012. Economists cut Singapore 2012. 2013 GDP mentality – MAS canvass. AsiaOne Business. Singapore. viewed 18 September 2012. lt ; hypertext transfer protocol: //news. asiaone. com/A1Business/General % 2BNews/Story/A1Story20120912-371111. hypertext markup language gt ; . 2. BreadTalk 2011. Annual study 2011. BreadTalk Group Limited. Singapore. viewed 18 September 2012. lt ; hypertext transfer protocol: //BreadTalk. listedcompany. com/misc/ar2011. pdf gt ; . 3. BreadTalk 2012a. Board of managers. BreadTalk Group Limited. Singapore. viewed 18 September 2012. lt ; hypertext transfer protocol: //www. BreadTalk. com/board-of-directors. hypertext markup language gt ; . 4. 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AppendixAppendix I| BreadTalk| STI|Period| Return| HPY| Return| HPY|Aug-11| 0. 5500| -| 2885. 26| -|Sep-11| 0. 4750| -0. 13636| 2675. 16| -0. 07282|Oct-11| 0. 5150| 0. 08421| 2855. 77| 0. 06751|Nov-11| 0. 5500| 0. 06796| 2702. 46| -0. 05368|Dec-11| 0. 5400| -0. 01818| 2646. 35| -0. 02076|Jan-12| 0. 5600| 0. 03704| 2906. 69| 0. 09838|Feb-12| 0. 5650| 0. 00893| 2994. 06| 0. 03006|Mar-12| 0. 5800| 0. 02655| 3010. 46| 0. 00548|Apr-12| 0. 5550| -0. 04310| 2978. 57| -0. 01059|May-12| 0. 4750| -0. 14414| 2772. 45| -0. 06920|Jun-12| 0. 5000| 0. 05263| 2878. 45| 0. 03823|Jul-12| 0. 5400| 0. 08000| 3036. 40| 0. 05487|Aug-12| 0. 5500| 0. 01852| 3025. 46| -0. 00360|| ? =| 0. 07351| ? =| 0. 05231|| Correl: | 0. 714929| | || Beta: | 1. 004727| | | Appendix II| 2007| 2008| 2009| 2010| 2011| 2012 2Q| 2012F| 2013F| 2014F| Bakeries| 170| 241| 301| 395| 471| 530| 603| 757| 899| Food Court| 24| 29| 33| 32| 37| 41| 42| 49| 56| Restaurant| 6| 8| 8| 21| 26| 28| 33| 39| 45|Total| 200| 278| 342| 448| 534| 599| 678| 845| 1. 000| Appendix III| Net Income| Net Sales| Total Assets| Common Equity| Profit Margin| Total Assets Turnover| Financial Leverage| Return on Equity ( ROE ) | Industry Average ROE | FY 2011|BreadTalk| $ 11. 592| $ 365. 904| $ 292. 305| $ 77. 970| 0. 03168 | 1. 25179 | 3. 74894 | 0. 14867 | 0. 07131 | Food Junction| $ 828| $ 56. 986| $ 51. 450|$ 30. 404| 0. 01453 | 1. 10760 | 1. 69221 | 0. 02723 | | Auric Pacific| $ 8. 566| $ 383. 415| $ 368. 978| $ 225. 193| 0. 02234 | 1. 03913 | 1. 63850 | 0. 03804 | | FY 2010| BreadTalk| $ 11. 266| $ 302. 888| $ 204. 197| $ 68. 562| 0. 03720 | 1. 48331 | 2. 97828 | 0. 16432 | 0. 09252 | Food Junction| $ 2. 645| $ 48. 226| $ 50. 181| $ 31. 169| 0. 05485 | 0. 96104 | 1. 60997 | 0. 08486 | | Auric Pacific| $ 6. 302| $ 381. 814| $ 374. 478| $ 221. 960| 0. 01651 | 1. 01959 | 1. 68714 | 0. 02839 | | FY 2009| BreadTalk| $ 11. 092| $ 246. 493| $ 172. 085| $ 60. 662| 0. 04500 | 1. 43239 | 2. 83678 | 0. 18285 | 0. 09207 | Food Junction| $ 3. 248| $ 48. 788| $ 44. 963| $ 29. 800| 0. 06657 | 1. 08507 | 1. 50883 | 0. 10899 | | Auric Pacific| $ 3. 405| $ 405. 964| $ 362. 793| $ 217. 952| ( 0. 00839 ) | 1. 11900 | 1. 66455 | ( 0. 01562 ) | | | BreadTalk| Food Junction| Auric Pacific|| 2009| 2010| 2011| 2009| 2010| 2011| 2009| 2010| 2011| Revenue| $ 246. 493 | $ 302. 888 | $ 365. 904 | $ 47. 274 | $ 47. 362 | $ 55. 712 | $ 405. 964 | $ 381. 814 | $ 383. 105 | % change| -| 22. 88 % | 20. 81 % | -| 0. 19 % | 17. 63 % | -| -5. 95 % | 0. 34 % | | | | | | | | | | | Cost of Sales| ( $ 112. 334 ) | ( $ 137. 646 ) | ( $ 165. 846 ) | ( $ 8. 538 ) | ( $ 7. 930 ) | ( $ 9. 294 ) | ( $ 252. 970 ) | ( $ 225. 249 ) | ( $ 225. 128 ) | | | | | | | | | | |Gross Profit| $ 134. 159 | $ 165. 242 | $ 200. 058 | $ 266 | $ 39. 432 | $ 46. 418 | $ 152. 994 | $ 156. 565 | $ 157. 977 | | | | | | | | | | |Gross Profit Margin ( % ) | 54. 43 % | 54. 56 % | 54. 67 % | 0. 56 % | 83. 26 % | 83. 32 % | 37. 69 % | 41. 01 % | 41. 24 % | | | | | | | | | | |Operating Expenses A ; other income| ( $ 117. 952 ) | ( $ 147. 919 ) | ( $ 182. 146 ) | ( $ 36. 402 ) | ( $ 36. 967 ) | ( $ 45. 706 ) | ( $ 154. 672 ) | ( $ 146. 964 ) | ( $ 147. 191 ) | | | | | | | | | | |EBIT | $ 16. 207 | $ 17. 323 | $ 17. 912 | ( $ 36. 136 ) | $ 2. 465 | $ 712 |( $ 1. 678 ) | $ 9. 601 | $ 10. 786 | | | | | | | | | | |Operating Net income Margin ( % ) | 6. 58 % | 5. 72 % | 4. 90 % | -76. 44 % | 5. 20 % | 1. 28 % | -0. 41 % | 2. 51 % | 2. 82 % | Appendix IV Appendix VPeriod| STI index| HPR|30/8/2002| 1488. 5| -|29/8/2003| 1599. 25| 1. 074404|31/8/2004| 1918. 34| 1. 199525|31/8/2005| 2275. 43| 1. 186145|31/8/2006| 2482. 39| 1. 090954|31/8/2007| 3392. 91| 1. 366792|29/8/2008| 2739. 95| 0. 807552|31/8/2009| 2592. 9| 0. 946331|31/8/2010| 2950. 33| 1. 13785|31/8/2011| 2885. 26| 0. 977945|31/8/2012| 3025. 46| 1. 048592|Geometric Mean| 0. 0735| | Appendix VIIncome Statements| | | | | || | | | | | || 2011A| 2012F| 2013F| 2014F| 2015F| || $ ’000| $ ’000| $ ’000| $ ’000| $ ’000| |Revenue| 365. 904 | 428. 108 | 539. 416 | 690. 452 | 716. 903 | | Cost of sales| ( 165. 846 ) | ( 197. 221 ) | ( 254. 416 ) | ( 330. 740 ) | ( 350. 154 ) | | Gross profit| 200. 058 | 230. 887 | 285. 000 | 359. 712 | 366. 749 | | | | | | | | | Other points of income| | | | | | |Interest income| 824 | 764 | 756 | 862 | 983 | |Other income| 7. 875 | 8. 943 | 10. 016 | 10. 718 | 10. 910 | | Share of consequences of joint ventures| 93 | 633 | 753 | 979 | 1. 003 | | | | | | | | |Other points of expense| | | | | | |Selling and distribution expenses| ( 145. 900 ) | ( 162. 114 ) | ( 194. 536 ) | ( 237. 334 ) | ( 240. 869 ) | | Administrative expenses| ( 45. 038 ) | ( 57. 656 ) | ( 73. 799 ) | ( 95. 496 ) | ( 98. 651 ) | | Net income before involvement and tax| 17. 912 | 21. 457 | 28. 190 | 39. 441 | 40. 125 | | Interest expenses| ( 785 ) | ( 959 ) | ( 873 ) | ( 1. 039 ) | ( 1. 221 ) | | Net income before tax| 17. 127 | 20. 498 | 27. 317 | 38. 402 | 38. 904 | | Income revenue enhancement expense| ( 5. 370 ) | ( 6. 641 ) | ( 9. 560 ) | ( 12. 672 ) | ( 12. 835 ) | | Net income after tax| 11. 757 | 13. 857 | 17. 757 | 25. 730 | 26. 069 | | | | | | | | | Attributable to: | | | | | | |Stockholders of the Company| 11. 592 | 13. 648 | 17. 401 | 25. 293 | 25. 603 | | Non-controlling interests| 165 | 209 | 356 | 437 | 466 | | Net income After Tax| 11. 757 | 13. 857 | 17. 757 | 25. 730 | 26. 069 | | | | | | | | | No. of shares| 281. 197. 676 | 281. 197. 676 | 281. 197. 676 | 281. 197. 676 | 281. 197. 676 | | EPS| 0. 04122 | 0. 04854 | 0. 06188 | 0. 08995 | 0. 09105 | | Dividend Per Share| 0. 0100 | 0. 0125 | 0. 0166 | 0. 0221 | 0. 0229 | | | | | | | | | Appendix VIIBalance Sheet| | | | | | || 2011A| 2012F| 2013F| 2014F| 2015F| || $ ’000| $ ’000| $ ’000| $ ’000| $ ’000| |Assets| | | | | | || | | | | | |Non-current asset| | | | | | |Property. works and equipment| 88. 898 | 120. 381 | 145. 542 | 201. 398 | 233. 812 | | Intangible assets| 9. 214 | 9. 841 | 12. 912 | 12. 331 | 14. 629 | | Investing in associates and joint ventures| 12. 091 | 13. 109 | 19. 001 | 18. 712 | 19. 982 | | Other receivables| 1. 389 | 5. 336 | 8. 901 | 8. 172 | 9. 181 | | Deferred revenue enhancement assets| 2. 120 | 3. 441 | 3. 562 | 3. 781 | 3. 776 | | Entire Non-Current Asset| 113. 712 | 152. 108 | 189. 918 | 244. 394 | 281. 380 | | | | | | | | | Current assets| | | | | | |Inventories| 7. 397 | 13. 881 | 17. 920 | 17. 092 | 25. 082 | | Trade receivables| 7. 792 | 9. 018 | 9. 382 | 10. 981 | 12. 019 | | Other receivables| 39. 008 | 43. 483 | 48. 019 | 49. 682 | 50. 918 | | Prepayments| 5. 389 | 6. 582 | 7. 098 | 8. 910 | 10. 920 | | Tax recoverable| 230 | 291 | 367 | 554 | 608 | | Amount due| 1. 717 | 1. 841 | 1. 990 | 2. 181 | 2. 894 | | Cash and hard currency equivalents| 87. 060 | 72. 810 | 70. 091 | 63. 719 | 53. 361 | | Total Current Assets| 148. 593 | 147. 906 | 154. 867 | 153. 119 | 155. 802 | | | | | | | | | Entire assets| 262. 305 | 300. 014 | 344. 785 | 397. 513 | 437. 182 | | | | | | | | |Equity and liabilities| | | | | | || | | | | | |Current liabilities| | | | | | |Trade payables| 22. 896 | 25. 091 | 32. 091 | 34. 481 | 35. 772 | | Other payables| 51. 178 | 52. 091 | 55. 049 | 53. 627 | 52. 511 | | Other liabilities| 41. 124 | 42. 141 | 40. 901 | 43. 298 | 40. 729 | | Provision| 5. 871 | 6. 591 | 7. 801 | 7. 762 | 6. 859 | | Amount due| 395 | 1. 987 | 2. 593 | 2. 273 | 2. 674 | | Finance rental duties. secured| 37 | 14 | 26 | 48 | 56 | | Loans and borrowings| 24. 360 | 23. 019 | 20. 091 | 20. 038 | 20. 928 | | Tax payable| 5. 623 | 6. 891 | 7. 670 | 9. 018 | 10. 943 | | Total Current Liabilities| 151. 484 | 157. 825 | 166. 222 | 170. 545 | 170. 472 | | | | | | | | | Non-current liabilities| | | | | | |Loans and borrowings| 16. 038 | 40. 869 | 68. 912 | 100. 283 | 105. 912 | | Deferred revenue enhancement liabilities| 2. 276 | 2. 760 | 2. 891 | 3. 172 | 3. 091 | | Other payables and liabilities| 7. 039 | 9. 291 | 11. 928 | 11. 729 | 13. 981 | | Entire Non-Current Liabilities| 25. 353 | 52. 920 | 83. 731 | 115. 184 | 122. 984 | | | | | | | | | Entire liabilities| 176. 837 | 210. 745 | 249. 953 | 285. 729 | 293. 456 || | | | | | | |Net assets| 85. 468 | 89. 269 | 94. 832 | 111. 784 | 143. 726 | | | | | | | | |Equity attributable to proprietors of the company| | | | | | | Share capital| 33. 303 | 33. 303 | 33. 303 | 33. 303 | 33. 303 | | Treasury shares| ( 609 ) | ( 781 ) | ( 819 ) | ( 981 ) | ( 1. 029 ) | | Accumulated pro?ts| 41. 558 | 45. 695 | 51. 409 | 67. 962 | 98. 301 | | Other reserves| 3. 178 | 3. 391 | 3. 041 | 3. 281 | 3. 232 | | | 77. 970 | 81. 608 | 86. 934 | 103. 565 | 133. 807 | | | | | | | | | Non-controlling interests| 7. 498 | 7. 661 | 7. 898 | 8. 183 | 9. 919 | | Total equity| 85. 468 | 89. 269 | 94. 832 | 111. 748 | 143. 726 | | Total equity and liabilities| 262. 305 | 300. 014 | 344. 785 | 397. 477 | 437. 182 | | | | | | | | | Appendix VIIIFree CASH FLOW TO EQUITY| | | | || 2011A| 2012F| 2013F| 2014F| 2015F|| | | | | |Net income / EPS| 11. 757 | 13. 857 | 17. 757 | 25. 730 | 26. 069 | Depreciation expense| 23. 920| 27. 657 | 30. 987 | 37. 870 | 39. 882 | – Capital expenditures| | 38. 396 | 37. 810 | 54. 476 | 36. 986 | – Change in working capital| | (