Strategic Position For The Future Of Sabmiller Commerce Essay

Strategic Position For The Future Of Sabmiller Commerce Essay In the brewery industry, SABMiller, which has been operating across six continents, is now one of the worlds leading brewers. Regarding of the business environment, the company has started from a developing country, South Africa, and has successfully entered into both developed and developing markets through acquisitions and joint venture. According to the financial report for the last five years, the company has been doing quite well (SABMiller, 2012). For the strategic capabilities, the firms resources and competences are taken into account. Firstly, in 1950, the firm was able to move its headquarters from London to Johannesburg in order to expand its business in Southern Africa due to the restriction of trading between the country and the international businesses. Secondly, the firm is able to raise capital through its listing on the London stock exchange. Thirdly, the firm has entered into the global market by acquiring some major brands such as Dreher from Hungary, Miller from USA and forming a joint venture in China. Then, the company also has made other acquisitions, joint ventures and brewery investments in other countries in recent years. However, acquisition may not be applied for SABMiller anymore in the future because of fewer larger transformational deals and lower prospects of high financial of returns. About the management structure of the firm, it practices decentralization as local managers understand deeper about t he local businesses (Johnson, Whittington and Scholes, 2011). 3.2 The new vision statement, mission statement and the strategic objectives Vision The best in the world in providing the most various choices for beer drinkers Mission Increase product portfolios Find more business partners Provide the most comfortable working environment Strategic objectives Increase profit to 15 % annually Increase the sale of premium beers Forming more joint ventures with local brands Upgrade the latest technology in administration and manufacturing. As time goes by, SABMiller has been growing larger enormously through acquisitions and joint ventures, and it has almost earned much profit from these business deals. Therefore, a new vision statement for the firm is to be the best in the world in providing the most various choices for beer drinkers. In order to support the vision, SABMillers mission is to increase more product portfolios for the consumers. The firm will find more business partners to grow bigger and bigger in the brewery industry. The firm will provide the most comfortable working environment that employees will be most satisfied and efficient by providing the most advanced- technological conditions. Those missions must be carried out in specific strategic objectives. First of all, the firms aim is to increase its profit by 15 % annually. Secondly, It needs to increase more types of beer, especially international premium beers to meet the rising demand in emerging markets. Thirdly, it also needs to find out more opportunities for growth with its existing product portfolios through joint ventures in local brands. Finally, the firm needs to upgrade the latest technology in administration as well as manufacturing, so the employees will feel more convenient and put more effort in their work. 3.3 Three alternative possible strategic options for SABMiller The first strategic option recommended for the firm would be the product development, which deliver new products into the existing markets. In terms of Generic strategies, this strategy should focus on differentiation by building more premium types of beer. The reason is that the beer consumption is growing in these emerging markets, and the people here are earning more (Simon, 2012); therefore, they are willing to pay more for their drink as well. Another reason is that consumers nowadays still prefer high quality beer during the economic crisis (Nadine and Simon, 2012). Although this strategy will fall into question marks in the Bostons BCG matrix as these premium beers are totally new products, they are more likely to turn into stars as the market share is growing, and the consumers will pay more as well. Product development is also a strategy belongs to the Ansoff matrix, so SABMiller needs to add more new premium beers to its brand portfolios in the existing markets such as in C hina, Latin America and South Africa, which are also emerging markets. The second strategic option would be the market development, which the firm will penetrate into new markets with the existing products. Even though the target markets here are Africa and Asia, which SABMiller has already entered, it can actually bring more brands from North America, Latin America and Europe to these countries due to the lack of its brand portfolios in these two regions. This is also a cost-focus strategy, based on the Generic strategies, for the firm as the costs of labor and raw materials in African and Asian countries such as China and Vietnam are cheaper, so it is an advantage for the company to cut costs in manufacturing. In terms of the BCG matrix, this option also fall into a question mark as local brands from Europe, for instance, are new in Africa and Asia. However, there will be a high chance to become a star within a short time as consumption is rising up in these regions. Market development is another strategy belongs to the Ansoff matrix as the firms curr ent products portfolios from North America, Latin America and Europe are totally new for consumers in African and Asian countries. The last option, which SABMiller is capable of doing and actually has succeeded before, is joint venture. Based on the case, the firm can consider entering into a joint venture with Dos Equis Brewer Fomento Economico Mexicano (FEMSA) from Mexico, or EFES Breweries International from Turkey. According to Generic strategy, this can be known as a cost-focus strategy for SABMiller because these two brands are currently doing alright in emergent markets like Latin America, Africa and Asia; therefore, SABMiller is able to have a good start as it is also operating businesses prosperously in these markets. In the BCG matrix, both SABMiller and these two brands are having high market share and growth in those emergent markets with their current product portfolios; therefore, if joint venture takes place, there will be no doubt that SABMillers market share and growth will boost up continuously. In terms of Ansoff matrix, this strategic option actually help SABMiller increase its market share i n its current markets, Latin America, Africa and Asia with the current and combined product portfolios of both the firm itself and it partners (Johnson, Whittington and Scholes, 2011). Lower cost Differentiation Broad target Cost leadership Differentiation Narrow target 3 2Cost focus 1Differentiation focus Competitive advantage Competitive scope Table 1: Porters Generic strategies Market share High Low High 3Stars 2 1Question marks Cash cows Dogs Market growth Low Table 2: BCG matrix Products / services Existing New Existing 3Market penetration 1New products services New 2Market development Conglomerate diversification Markets Table 3: Ansoff matrix Strategic options 1 Product development 2 Market development 3 Joint venture 3.4 The most recommended strategic options for SABMiller Out of the above three strategic options, join venture would be a great move recommended for SABMiller. In fact, the firm has succeeded in forming joint ventures with others firm, so it clearly shows that the company is capable of doing such kind of thing. Furthermore, the two considerable firms for forming joint ventures, FEMSA and EFES, are doing quite well in Latin America, Africa and Asia, where SABMiller is also having a good taste with its business, so it will be an advantage for SABMiller as it can achieve more growth, reduce competitors in these markets. In addition, forming joint ventures also helps SABMiller to expand its product portfolios into other current markets. To sum up, forming a joint venture can be seen as a safer option as the current product portfolios are star products with high market share, while the other two option might be a little bit riskier as the products and the markets are new and unpredictable to measure successes.

Jk Cement Research Report

Indian Institute of Management, Bangalore PGP Program Term 1, 2012 Final Report for JK Cements – Group 2 Section 1 Business Description: JK Cements is one of the largest cement manufacturers in Northern India and the eighth largest overall India with net cement sales of 2545 crores in 2011-12. Itsmain productsinclude grey and white cement. It produced 53. 2 lakh tons of grey cement and 3. 77 lakh tons of white cement in the financial year 201112. Grey cement produced consists of Ordinary Portland Cement (â€Å"OPC†) and Portland Pozzolana Cement (â€Å"PPC†). Their cement products are marketed under the brand names J.K. Cement and Sarvashaktiman for OPC products, J. K. Super for PPC products and J. K. White and Camel for white cement products. JK Wall Putty and JK Water proof are its white cement based value-added products. Housing (74%), infrastructure (17%), commercial & institutional sector (13%) and industrial sector (6%) are the major customers of the cement industry [Refer Figure 1]. Housing constitutes a major chunk of the demand and hence rural and urban housing projects are a key resource generator. Key stock statistics and revenue/earnings data is included in the appendix [Refer Tables 1& 2]Section 2 Market Profile, Competition, Strategy, Risks A. Market Profile: The demand for cement mainly depends on the level of development and the rate of growth of the economy. The major demand drivers for the cement sector in India are housing, infrastructure and commercial construction. These are key components of the country’s GDP and hence, the average growth of the cement industry is approximately 1. 2 times the GDP growth. Significant impetus to both rural and urban housing as per capita income increases in a major driver of the industry.With the increase in national infrastructure investment, the industry is poised to expand further in spite of the worldwide economic recession. The housing sector contributes around 64% of the tot al cement demand. It also accounts for 80% of the total real estate developments in the country. Housing demand is expected to be robust backed by various measures adopted in the budget like continued interest subvention up to 15 lacs, exemption from service tax for low cost housing construction, and increase in investment-linked deduction of capital expenditure on low-cost housing from 100% to 150%.There has been a major push by the government in infrastructure development with the intended investment being US$ 1 trillion in the 12th five year plan period (2012-17), against an investment of US$ 514 billion in the 11th five year plan period. Massive investment in infrastructure would provide boost to Indian Cement industry. India is the second largest producer and consumer of cement in the world, accounting for 7-8% of the total global production with an installed capacity of over 300 Mtpa at the end of 2011-12. India’s cement industry performed better in 1 011-12, on back of robust demand revival in the second half of the financial year. The industry grew by 6. 4 per cent in 2011-12 as against less than 5 per cent in 2010-11. Total cement sales were 223. 02 MT compared with 209. 5 MT in FY11. For 2012-13, CRISIL Research estimates cement demand to increase 7-8 per cent yoy (Crisil). In the near term, demand could be a little weak because of the lower GDP growth. Given that a large part of the demand comes from the housing sector, high interest rates are not conducive to the urban real estate demand. However, in the long term, the industry is expected to grow at an average of 1. times the GDP growth rate. Growth rates of 8-9% can be targeted for the five year period given the increase in investment in infrastructure projects and increasing rural demand. Although India is one of the largest cement markets in the world, per capita consumption of cement is still low as compared to the world average as well as that of other large countries such as China and US. The Indian cement industry, thus, has a huge growth potential. Given the intense shortage of housing, this segment has been a major growth driver for the cement industry.The demand for residential real estate has only increased, fuelled by increasing urbanization, rising income levels, decreasing household sizes and easy availability of home loans. Bulk of the total shortage of 74 million units at the end of the 11th Five Year Plan (2007-2012), is expected to be generated by rural and below poverty line households. The government has launched various initiatives such as NREGS and Indira AwasYojana to improve rural income, which may increase demand for rural housing in the country. Increased infrastructure investments by the government as mentioned earlier is also likely to be a major growth area.Housing (74%), infrastructure (17%), commercial & institutional sector (13%) and industrial sector (6%) are the major customers of the cement industry. Housing constitutes a major chunk of the demand and hence rural and urban housing projects are a key resource generator. Overall industry margins and change in sales trends are mentioned in tables at the end. [Refer to Table 3 & 4]. Please refer to Table 5 for a picture of the industry growth rate based on the Free Cash Flow model where the average P/B was computed with the top 5 firms of the industry and different rates for cost of capital were assumed.This shows that the cement industry is poised for growth for whatever cost of capital that may prevail. B. Competition: Inter firm competition and rivalry in the industry is high. Large number of players, intermittent overcapacity, marginal product differentiation, high storage cost and high exit barrier in form of significant capital investment has led to high competition in the industry. Threat of new entrants is limited since it involves high capital investment, broad distribution network and oversupplied markets deter new entrants.However, given the high potenti al for growth, quite a few foreign transnational companies have made acquisitions and increased their stake in domestic companies to gain full control. There are no good substitutes for cement popular in India. However, there are eco friendly substitutes for cement which include fly ash and slag. Fly ash is the by product when coal is burnt to make electric power and slag is created when producing iron in blast furnaces. Coal fly ash, blast furnace slag and other mineral admixtures can substitute for cement, aving energy and reducing cost. Bitumen in roads and engineering plastics in building are some element of competition. Currently, the top players – UltraTech, ACC, Ambuja Cements, Jaiprakash Associates, India Cements and Shree Cement, collectively control more than half of the cement market in the country. Overall, there are 40 players in the industry across the country. (Source: ibef. org) The closest competitors for JK Cement are Shree Cements, Madras Cements, Birla Cor poration and Binani Cement. The industry has a 4-firm concentration ratio of 58. 18%. 2 C. StrategyDespite challenges, JK Cement has increased revenues and profits owing to higher realisation and volumes in both grey cement and white cement business. The company is in on its way to expanding its capacity in India to cater to the increase in cement demand. It has also diversified its product portfolio by not only limiting itself to varieties of grey cement but also extending to white cement and other value added products. Besides, the Company is also setting up a grey cum white cement plant at Fujairah in UAE to cater to GCC and African markets. The company is making efforts to reduce operating expenses which in turn would increase the ROE.Some of the efforts to reduce operating costs are: Grey Cement †¢ Implementation of CII Audit findings in phased manner to reduce power consumption. †¢ Installation of VFDs in fans to save power. †¢ Replacement of booster fans by hig h efficiency fans to save power. †¢ Installation of pfisterpump for coal firing in calciner. †¢ Replacement of Raw mill -1 separator by high efficiency separator. †¢ Dynamic separator in Coal Mill. White Cement †¢ Covered clinker storage facility for grey and white clinker. †¢ Grinding plant for dolomite for putty product. †¢ Installation of new SG Fan & Driver. The company is also making efforts to increase its capacity.The company is revisiting the size of proposed expansion plan at Mangrol, Rajasthan from earlier envisaged 3. 5 Million Tons to around 2. 5 Million Tons, on account of delay in allotment of new mining area to the Company. Viability study for 2. 5 Million Tons capacity plant is under preparation and a final decision will be taken during the course of the year. D. Risks Three most important risks: 1. Sustained economic slowdown The growth of cement industry is directly proportional to GDP growth rate. Absence of decision making at Governm ent level is affecting economic growth and may have adverse effect for the cement industry.If measures are not adopted against inflation, high interest rates, depreciating rupee, then it would impact the overall economic growth of the country resulting in dragging the sector down. 2. Unavailability of coal linkages Coal costs constitute 14-23% of cost of production of cement. The hike in coal prices is expected to hit the margins. Due to reduced supply of coal linkers from Coal India over the years; the company has to import coal at higher costs from South Africa and Indonesia. The depreciation of the rupee will also add to the increased cost of raw materials. 3.Adverse demand-supply mismatch In case, the additional capacities get commissioned ahead of schedule, then a state of oversupply would rise, consequently prices may head downwards and the sector may suffer a severe blow. Section 3 3 Trend Analysis The demand for the cement mainly depends on the rate of growth of infrastructu re, housing and commercial construction. In Indian context all these areas have been experiencing a significant growth as a result of constant growth in our GDP. As a result we can see that overall the total revenues for both the companies have been rising [Refer to Figure 2].JK Cement and Madras Cements basically cater to northern and southern India respectively. In year 2011, there is a dip in the total revenues of Madras Cement. This was result of a more acute fall in the capacity utilization observed in southern India due to low demands because of political instability in Andhra Pradesh and minimal pick-up in demand in Tamil Nadu and Kerala post elections. The two industries exhibit comparable trend as far as profit margins are concerned [Refer to Figure 4]. So, an overall analysis of cement industry in this period is required.In 2008, the dip can be attributed to reduced demands due to global recession, which reduced capacity utilization thus reducing profits. In 2011, there wa s marginally poor off take in cement demand due to passive construction activity, which lead to excess supply and utilisation fell to a 13-year low of 83. 9% for 2010-11. This has been coupled with rise in input costs, especially prices of coal and petroleum products. As a result, both the top line and bottom line have been affected. Hence this year the capacity utilization increased and the demand dropped. Section 4 Ratio Analysis [Refer Table 6] . Return on Equity : [Refer Fig. 5] ROE has been hovering around 17-20% throughout with some years seeing slight changes. Given that Index of Industrial Production(IIP) grew only by around 2. 8%, it appears that JK and Madras have both done well. However, 2010-11 was a bad year for JK Cements. Their Net Operating Profit plummeted by 39% when compared to the previous year while the same for Madras Cement was only around 27%. This was mainly on account of reduction in sales realisation and substantial increase in the prices of petcoke and fu el resulting in higher input costs (Annual Report 2010-11).This caused the ROE of JK to fall by almost 600% from the previous year. 2. Basic DuPont Model Analysis : [Refer Fig. 4,5 and 6] ROE = Asset Turnover * Profit Margin Asset Turnover of JK is consistently higher when compared with Madras Cements – 42. 46% higher in 2006-07 while this is 39. 87% in 2012. This is because JK’s total fixed assets is lesser than Madras’ by almost 50% while sales of Madras Cements is higher only by around 2025% on an average . However, the low profit margin throughout has been causing the Return on Equity of JK to be lower than that of Madras Cements.The profit margin has been very low in all the years from with the worst hit being in 2011 – reason explained in step 1. Also the Net Financial Rate has dinted the net profit due to expansion efforts coupled with the dim outlook in the industry. A ray of hope for JK would be to perform product differentiation with the white c ement – wall putty market ; it has done right by expanding the white cement units in overseas ; the demand for interior and decor is bound to increase in the near future. 4 3. Advanced DuPont Model Analysis with RNOA & Leverage : [Refer Fig. & 12] It can be seen that the Operating Spread of JK is going negative for 2010-11 & 2011-12 showing that their Financial Rate is on the rise which is due to debts from increased expansion plans. This, along with the increased leverage from high borrowing, has reduced the already low RNOA to yield a poor ROE value. In the same while, for Madras Cements the spread has been positive – in fact, it has never gone negative for them, despite their large debt. Madras Cements has been affected only by the overall increase in costs in the cement industry and not by the leverage effect which JK has suffered from.The leverage effect has beaten JK again in 2011-12 ; though their RNOA has increased by 177% from the previous year and long-term d ebt has actually reduced, the Interest Rates on loans have seem to have gone up – leading to a 117% increase in the NFR. Thus the negative operating spread has again caused JK’s ROE to fall below the RNOA – Madras Cements has remained stable in this period – registering a higher ROE than RNOA due to the positive spread. Again, this shows that Operating Margin of JK is low when compared with the cost of capital. 4. Analysis of Turnover ratios [Refer Fig. 9 & 0] Inventory Turnover and Debt Turnover of JK is considerably higher than that of Madras Cements leading to a better operating cycle. Low inventory holding and low receivables isa positive trend for JK Cements and it should continue this. 5. Analysis of Liquidity and Long-term Solvency : [Refer Fig. 8,11] The Quick Ratio of JK is consistently higher than Madras Cements for all the 5 years taken into consideration – hence the liquidity position of JK is better than that of Madras Cements. The cap ital structure seems more of debt financing in the recent years – owing to expansion plans.However increase in interest rates would make JK vulnerable to low margins which is already discussed in the advanced model. Section 5 – Conclusion – – – The cement industry is estimated to grow as can be seen from the CRISIL analysis quoted in section 1; housing and infrastructure demand are expected to increase – hence JK is bound to do well The cost reducing efforts of JK and the product differentiation into white cement are expected to increase profit margins. The Asset Turnover values of JK are also higher than its competitor. Hence increase in ROE is expected in coming years.The reduced operating cycle of JK shows a positive trend vis-a-vis its competitor. P/B value of JK is 1. 18 while industry average (top 5 firms) is 2. 76 (refer to table on Growth of Cement Industry). Hence JK stock seems to be undervalued [Refer Table 5] JK has declared 50% dividend for the current year and has consistently declared dividend for the past 5 years. However, the inherent risks in the industry – from global crises like the Euro crisis and flagging coal availability pose concerns for the successful implementation of plans.Further, the continuous expansion plans of JK leading to higher debt and hence higher interest rates (which can rise based on RBI measures to contain inflation) cause concern for the profit margins which can again reduce. The positives seem to be strong as JK is trying to stabilize its expansion plans. Hence an acute negative view point would not be correct. Hence we suggest a buy/hold after doing the above analysis. 5 References : – Crisil. (n. d. ). Retrieved August 21, 2012, from Crisil Web site: crisilresearch. com – Dion Insight. (n. d. ). Retrieved August 21, 2012, from Dion Insight Web site: https://insight. ionglobal. in/Insight/Industry. asp? pageLink=IndProfile&Ind=151 – equitymaster. com. (n. d. ). Retrieved August 21, 2012, from equitymaster. com: http://www. equitymaster. com/research-it/sector-info/cement/Cement-Sector-AnalysisReport. asp – Gupta, N. (n. d. ). Ernst & Young. Retrieved August 21, 2012, from Ernst & Young Web site: http://www. ey. com/Publication/vwLUAssets/cementing_growth/$FILE/cementing_growth. pdf – India Brand Equity Foundation. (n. d. ). Retrieved August 21, 2012, from India Brand Equity Foundation Web site: http://www. ibef. org/industry/cement. aspx – Jagdesh Sunku. 2006). Advantages of using fly ash as supplementary cementing material (SCM) in fibre cement sheets. 10th Int. Inorganic Bonded Fibre Composites Conference, (pp. 25-32). Sao Paulo. – JK Cement Annual Report 2010-11 & 2011-12. JK Cement. – moneycontrol. com. (n. d. ). – PlanningCommision. (n. d. ). Planning Commission. Retrieved August 21, 2012, from Planning Commission Web site: http://planningcommission. nic. in/plans/mta/11th_mta/c hapterwise/chap14_invest. pdf 6 Appendix A Division Figure 1: Division of customers of cement industry into major sectors Major Major customers of cement industryCommercial & Institutional 13% Industrial 6% Infrastructure Infrastructure 17% Housing 64% Figure 2: Total revenue for JK Cement & Madras Cements Ltd. (Revenue in crores)(Before 2005 financial financial statements for JK Cement wasn’t prepared. It was then treated as a division under JK Groups for financial purposes) Total revenue 3,500. 00 3,000. 00 2,500. 00 2,000. 00 1,500. 00 JK Cement Madras Cements Ltd. 1,000. 00 500. 00 0. 00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 7 Figure 3: Change in sales % change in sales 60 50 JK Cement Madras Cements Ltd. 40 30 20 10 0 -10 -20 2003 2004 005 2006 2007 2008 2009 2010 2011 2012 Figure 4: Profit Margin Profit margin 25. 0% JK Cement Madras Cements Ltd. 20. 0% 15. 0% 10. 0% 5. 0% 0. 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Figure 5: Return on Equity ROE (%) 60 JK Cement 50 Madras Cements Ltd. 40 30 20 10 0 2007-08 2008-09 2009-10 2010-11 2011-12 8 Figure 6: Asset turnover Asset turnover (%) 110 JK Cement 100 Madras Cements Ltd. 90 80 70 60 50 40 2007-08 2008-09 2009-10 2010-11 2011-12 Figure 7: Return on Net Operating Assets RNOA (%) 40 JK Cement Madras Cements Ltd. 30 20 10 0 2007-08 2008-09 2009-10 2010-11 2011-12Figure 8: Debt – Equity Ratio Debt – Equity Ratio 2. 5 JK Cement Madras Cements Ltd. 2 1. 5 1 0. 5 0 2007-08 2008-09 2009-10 2010-11 2011-12 9 Figure 9: Spread Operating Spread 0. 5 JK Cement 0. 4 Madras Cements Ltd. 0. 3 0. 2 0. 1 0 -0. 1 2007-08 2008-09 2009-10 2010-11 2011-12 2010-11 2011-12 -0. 2 Figure 10: Holding period Operating Cycle (days) 120 JK Cement Madras Cements Ltd. 100 80 60 40 20 0 2007-08 2008-09 2009-10 Figure 11: Quick ratio Quick Ratio 2 JK Cement Madras Cements Ltd. 1. 5 1 0. 5 0 2007-08 2008-09 2009-10 2010-11 2011-12 10 Figure 12: Net Financial Rate NFR 0. 18 JK Cement 0. 6 Madras Cements Ltd. 0. 14 0. 12 0. 1 0. 08 0. 06 0. 04 0. 02 0 2010-11 2011-12 11 Appendix B: (Tables) Table 1: Key stock statistics Stock Report| 24 July 2012 |Symbol : JKCEMENT (NSE); JKCEM (BSE); ISIN NUMBER INE823G01014 J K Cements Stock Price (closing) Investment Style 213. 30 (as of 20 July 2012) Large CAP Sector Cement Summary : JK Cements is one of the largest cement manufacturers in Northern India ; it is the second largest white cement manufacturer by production capacity in India Key Stock Statistics 52 Wk Range 95. 80 to 219. 70 (BSE) 25. 36 8. 41 11,839 EPS (Twelve Month Trailing)P/E (Twelve Month Trailing) 10K investment 5 yrs ago Credit Rating Long Term Bank facilities Short Term Bank facilities Common shares outstg. 69927250 Market Cap Yield (%) Dividend rate per share 1491. 55 Crores 2. 34 5 A+(CARE) A1+(CARE) Table 2: Earnings per Share Earnings Per Share of 10 each ( ) June Q1 September Q2 2011-12 7. 14 0. 51 2010-11 4. 22 -2. 98 2009-10 10. 04 9. 35 December Q3 6. 22 0. 26 6. 65 March Q4 11. 49 7. 66 6. 28 Year 25. 36 9. 16 32. 32 ? ? ? ? ? ? ? ? Table 3: Industry Margins OPM(%) GPM (%) NPM (%) Mar ‘12 21. 78 21. 49 9. 14 Dec ‘11 19. 65 18. 45 10. 13 Industry MarginsSep ‘11 15. 66 13. 6 5. 05 Jun ‘11 24. 41 22. 48 11. 76 Mar ‘11 22. 46 20. 9 11. 92 Dec ‘10 17. 18 15. 32 5. 84 12 Table 4: Industry sales Mar ‘ 12 Industry sales (in crores) % change Change in industry sales (quarter)(%) Dec ‘ 11 Sep ‘ 11 Jun ‘ 11 Mar ‘ 11 Dec ‘ 10 20841. 87 17953. 16 15649. 20 17017. 73 17388. 15 14201. 79 16. 09026 14. 72254 -8. 04179 -2. 1303 22. 43633 Table 5: Industry Growth Projections (for different values of ‘r’) using Free Cash Flow Model Company Name Ultratech Ambuja ACC Shree Cements Madras Cements India Cements JK Cement Average P/B ratio as on 26/08/2012 3. 66 3. 64 . 5 4. 55 2. 19 0. 68 1. 14 2. 765714286 ROE (from March 2012 BS) Cost of Capital (%) Growth (%) 19. 02 15. 28 18. 42 10. 55 18. 78 7. 21 13. 75 14. 71571429 10 11 12 13 14 7. 329288 8. 895631 10. 46197 12. 02832 13. 59466 Table 6: Ratio Calculations Ratios Profit Margin (%) Asset Turnover (%) ROE (%) Return on Assets (%) Net Operating Profit Margin (%) Net Operating Asset Turnover (%) Return on Net Operating Assets (%) = NOPAT/Avg. Net Operating Assets JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras CementJK Cement 2011-12 8. 154156 12. 06512 77. 80004 55. 62438 17. 04343 20. 87036 6. 343937 6. 711146 10. 83703 15. 17511 139. 8798 83. 81691 15. 15882 2010-11 1. 654139 7. 964254 79. 85371 47. 82047 3. 49563 12. 67786 1. 320891 3. 808544 4. 320325 11. 0728 126. 2029 68. 65512 5. 452374 2009-10 10. 84236 12. 59667 88. 57764 56. 65368 22. 29768 25. 09332 9. 60391 7. 136478 12. 51604 16. 10394 160. 5309 81. 84813 20. 09211 2008-09 8. 421552 14. 40591 94. 35595 63. 17162 16. 78291 32. 91344 7. 946235 9. 10 0446 10. 11265 17. 00776 212. 7993 93. 59998 21. 51965 2007-08 16. 62175 20. 30998 107. 4567 75. 2185 41. 51821 50. 27496 17. 86118 15. 31816 17. 88877 21. 64552 209. 9905 128. 6868 37. 5647 Madras Cement 12. 71931 7. 602044 13. 18078 15. 91926 27. 85493 13 Interest Coverage (%) Leverage – Measure 1 Debt-Equity Ratio Current Ratio Quick Ratio Debt Turnover Debt Collection Period (days) Inventory Turnover Inventory Holding Period (days) Operating Cycle (days) NFO NFE NFR Op. Spread FLEV*Spread ROE = RNOA + FLEV*Spread (Advanced Dupont Analysis) JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras CementJK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement 392. 0551 615. 8751 2. 686571 3. 109805 0. 837413 1. 0309 99 1. 197299 0. 601965 0. 833253 0. 343679 35. 22924 16. 62681 10. 21879 21. 65177 5. 924257 5. 223089 60. 76712 68. 92473 70. 9859 90. 57651 401. 46 1719. 03 68. 278 101. 808 0. 170074 0. 059224 -0. 01849 0. 067969 -0. 01548 0. 070076 13. 61077 19. 72691 254. 5852 468. 6705 2. 646419 3. 328794 1. 150731 . 609198 1. 367937 0. 931981 0. 916991 0. 599238 33. 11155 15. 49891 10. 87234 23. 22745 7. 497843 4. 941565 48. 01381 72. 85141 58. 88615 96. 07886 802. 04 2307. 32 62. 958 81. 466 0. 078497 0. 035308 -0. 02397 0. 040713 -0. 02759 0. 065515 2. 693658 14. 15354 666. 585 579. 4166 2. 321729 3. 516204 0. 939762 1. 647142 1. 144753 1. 00381 0. 764784 0. 639154 30. 43733 22. 88671 11. 82758 15. 72965 8. 619538 5. 233222 41. 76558 68. 79127 53. 59316 84. 52092 705. 23 2034. 43 34. 363 98. 455 0. 048726 0. 048394 0. 152195 0. 083413 0. 143027 0. 137394 34. 39482 26. 92014 619. 7696 717. 6917 2. 112058 . 616684 0. 580401 1. 954809 1. 968687 0. 982285 1. 675142 0. 628742 30. 17987 33. 40915 11. 92848 10. 77549 10. 69177 6. 127751 33. 67075 58. 74912 45. 59923 69. 52461 -143. 99 2006. 67 28. 147 65. 807 -0. 19548 0. 032794 0. 410675 0. 126398 0. 238356 0. 247085 45. 35528 40. 62774 851. 7743 1451. 897 2. 324494 3. 28205 0. 626681 1. 714777 1. 762163 1. 019801 1. 467784 0. 702189 26. 72182 31. 59228 13. 47214 11. 39519 10. 49671 6. 782897 34. 29647 53. 07467 47. 76861 64. 46986 37. 91 1183. 64 20. 216 26. 782 0. 533263 0. 022627 -0. 15762 0. 255922 -0. 09877 0. 43885 27. 68721 71. 73993 14

Indian Ocean Trade Routes Asian History

AP World History - Learn What Test Score You Need

World History is a popular Advanced Placement subject, and in 2017 nearly 300,000 students took the AP World History exam. Many colleges have a history requirement as part of their general education programs, and a high score on the exam will often fulfill the requirement and qualify students to take upper-level history courses. About the AP World History Course and Exam AP World History is designed to cover the material one would encounter in a two-semester introductory-level college world history course, although the reality is that very few colleges will award two semesters of credit for the course. The course is broad and covers important people and events from 8000 B.C.E to the present. Students learn to make historical arguments and historical comparisons, and they learn how to analyze and write about both primary and secondary sources. Students study how to contextualize historical events, and how to understand cause and effect in relation to historical phenomena. The course can be broken down into five broad themes: The ways that humans have been shaped by the environment as well as the way that humans have affected and transformed the environment.The rise and interaction of different cultures, and the ways that religions and various  belief systems have molded societies over time.Issues of state including the study of agrarian, pastoral, and mercantile states, as well as the ideological foundations of governing systems such as religion and nationalism. Students also study types of states such as autocracies and democracies, and conflicts and wars between states.Economic systems including their creation, expansion, and interaction. Students study agricultural and industrial systems as well as systems of labor including free labor and coerced labor.Social structures within human societies including those based on kinship, ethnicity, gender, race, and wealth. Students will study have different social groups are created, sustained, and transformed. Along with the five themes, AP World History can be broken down into six historical periods: Name of Time Period Date Range Weight on Exam Technological and Environmental Transformation 8000 to 600 B.C.E. 5 percent Organization and Reorganization of Human Societies 600 B.C.E to 600 C.E. 15 percent Regional and Interregional Interactions 600 C.E. to 1450 20 percent Global Interactions 1450 to 1750 20 percent Industrialization and Global Integration 1750 to 1900 20 percent Accelerating Global Change and Realignments 1900 to the Present 20 percent AP World History Exam Score Information In 2018, 303,243 students took the Advanced Placement World History exam. The mean score was a 2.78. 56.2 percent of students received a score of 3 or higher, meaning they might qualify for college credit or course placement. The distribution of scores for the AP World History exam is as follows: AP World History Score Percentiles (2018 Data) Score Number of Students Percentage of Students 5 26,904 8.9 4 60,272 19.9 3 83,107 27.4 2 86,322 28.5 1 46,638 15.4 The College Board has posted preliminary score distributions for the World History exam for 2019 test-takers. Note that these numbers may change slightly as late exams get recorded. Preliminary 2019 AP World History Score Data Score Percentage of Students 5 8.7 4 19 3 28.3 2 28.9 1 15.1 College Credit Course Placement for AP World History Most colleges and universities have a history requirement and/or a global perspectives requirement, so a high score on the AP World History exam will sometimes fulfill one or both of these requirements. The table below presents some representative data from a variety of colleges and universities. This information is meant to provide a general overview of the scoring and placement practices related to the AP World History exam. For other schools, youll need to search the colleges website or contact the appropriate Registrars office to get AP placement information. AP World History Scores and Placement College Score Needed Placement Credit Georgia Tech 4 or 5 1000-level history (3 semester hours) LSU 4 or 5 HIST 1007 (3 credits) MIT 5 9 general elective units Notre Dame 5 History 10030 (3 credits) Reed College 4 or 5 1 credit; no placement Stanford University - no credit or placement for the AP World History exam Truman State University 3, 4 or 5 HIST 131 World Civilizations before 500 A.D. (3 credits) for a 3 or 4; HIST 131 World Civilizations before 500 A.D. and HIST 133 World Civilizations, 1700-Present (6 credits) for a 5 UCLA (School of Letters and Science) 3, 4 or 5 8 credits and World History placement Yale University - no credit or placement for the AP World History exam A Final Word on AP World History Keep in mind that college placement isnt the only reason to take AP World History. Selective colleges and universities typically rank an applicants  academic record  as the most important factor in the admissions process. Extracurricular activities and essays matter, but good grades in challenging classes matter more. The admissions folks will want to see good grades in college preparatory classes. Advanced Placement, International Baccalaureate (IB), Honors, and Dual Enrollment classes all play an important role in demonstrating an applicants college readiness. In fact, success in challenging courses is the best predictor of college success available to the admissions officers. SAT and ACT scores have some predictive value, but the  thing they best predict is the income of the applicant. If youre trying to figure out which AP classes to take, World History is often a good choice. It is a popular exam ranking below just five subjects: Calculus, English Language, English Literature, Psychology, and United States History. Colleges like to admit students who have broad, worldly knowledge, and World History certainly helps demonstrate that knowledge. To learn more specific information about the AP World History exam, be sure to visit the  official College Board website.

Fear Is An Emotional Response Induced - 983 Words

According to PhycologyToday.com fear is an emotional response induced by a perceived threat, which causes a change in brain and organ function, as well as in behavior. Fear can lead us to become narcissistic, to run away from various issues, or to freeze up and become victim under circumstance, or it may come in the form of a discovery. When I was younger my fear came in form of darkness, not knowing what was in the space. Over the course of time that form of fear of course changed. You will always be afraid of something, it doesn t necessarily have to be physical. Sometimes fear comes in masses specifically referring to White America being afraid of the educated, prospering Black American. Since slavery, the lore of the predacious Black individual has been used to fear Whites and to justify their brutality and violence done against Black individuals, communities and continents. â€Å"The enslavement of Africans resulted in a plethora of uprisings, from the Haitian Rebellion to Nat Turner’s rebellion. Since then, whites have developed a pathological fear that oppressed Blacks will one day rise up and inflict vengeance upon their oppressors† . In 1826, John B. Russwurm became the first Black college graduate. Today just about 4.6 million African Americans hold a four-year college degree according to The Journal of Black in Higher Education . This number is ridiculously large considering that at the time of the Harlem Renaissance only one in 1,000 Blacks were collegeShow MoreRelatedA Persons Emotional Response to Food1166 Words   |  5 Pagesguests and serve a feast full of Roman delicacies. Since then food has become an emotional aspect of our lives. 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Brown’s Installation Service Free Essays

Brown’s Installation Service is the leader in installation, relocation, and reconfiguration of office furniture. In business since 1972, you can be sure that their thirty five years of experience will help you in setting up or changing an office easily and efficiently. Along with their expertise in the installation of modular furniture, Brown’s also offers moving services as well as inventory management. We will write a custom essay sample on Brown’s Installation Service or any similar topic only for you Order Now All of the crews sent from Brown’s Installation Service are highly trained and familiar with all manufactured office furniture systems and casegoods, including such brand names as Haworth, Steelcase, and Herman Miller. Brown’s Installation Service is aware that businesses are always looking for good quality at a low price. Unfortunately, there are furniture companies that quote really low prices and make a lot of promises, but they rarely follow through. Brown’s is not that kind of company. You will be provided with excellent service at a reasonable price, and the crews will work as quickly as possible to ensure that your business is not disrupted. To make this possible, Brown’s Installation Service will come to your office at any time of any day, including weekends. The office is open from 8 to 5 Monday through Friday, but you may reach someone by cell phone 24/7. Brown’s prides themselves on always being available to their customers. There is no job too big or too small for Brown’s Installation Service. Everything is handled in house, so one phone call will take care of your entire project. With years of experience, fair pricing, round the clock service, and one call to take care of everything, there is no reason not to call Brown’s Installation Service for your office furniture needs! Don’t be fooled by the competition. Come to Brown’s first, and come away satisfied! Call 803-735-7196 for inquiries, 803-796-5801 for a quote, or email todd@brownsinstallation. com, and get your office project started today! How to cite Brown’s Installation Service, Papers

Security Breach at Tjx free essay sample

Top-level executives need to understand that IT security is a business issue and not just a technology issue. As seen by the attack, an IT security breach can mean hundreds of millions of dollars in losses, which definitely has an adverse affect on the bottom-line of the business. Further, as a Level 1 business (those that processed over six million credit card transactions per year), the PCI DSS auditor had failed to accurately assess TJX’s network, missing three of twelve encryption requirements: absence of network monitoring, absence of logs, and the presence of unencrypted data stored on the system. The lack of thoroughness on the auditor’s part certainly made the penetration of the system by attacks easier, to the point where they were so confident that they would send each other encrypted messages through the backend of the system. Furthermore, the in-store clerks dropped the ball by not monitoring the self-checkout kiosks more heavily, which resulted in attackers using USB drives to upload software on those terminals! Work process failure points that require attention are the personal information required for non-receipt merchandise returns, such as driver’s license and social security numbers. We will write a custom essay sample on Security Breach at Tjx or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Either do not allow returns without a receipt or implement a system for nonreceipt returns that does not require the customer to give out very personal information. Technology failure points at TJX that need attention are stronger wireless protection, more complicated and unintelligible encryption, stronger firewall configuration to protect cardholder data, updated anti-virus software, and a regularly used log so that there was a track record of added, changed, and accessed information. 2. How should the company’s IT security be improved and strengthened? What should its short-term priorities and long-term plans be? Hiring Richel as the Chief Security Officer was one big step towards a better IT security program at TJX; he’s an executive who understands the harsh and costly consequences of a weak IT security system and has plans to implement the strongest system possible. Short term priorities include 1) addressing Mary Smith’s letter and taking care of the $5,000 theft, 2) implement network monitoring, 3) implement logs, 4) encrypt ALL data and minimize the time where data goes from ‘scrambled’ to ‘unscrambled’, and 5) update all components of the system, both hardware and software, to the most modern and secure in the industry. Long-term priorities should include minimizing risk by making everyone in the company, not just top-level executives, aware of the potential of another massive attack on their system. The reason why I think store clerks and managers should be made aware of their respective branch’s IT system (wireless, kiosks, card swipers, etc) is so that they know what an attack looks like when it is happening. More times than not, the invasion is happening right in front of the cashier’s face yet they have absolutely no idea. Increasing training and updating systems regularly will help ensure another attack from not happening. 3. Was TJX a victim of ingenious cyber crooks or did it create risk by cutting corners? How do smart, profitable retail organizations get into this kind of situation? Based on the article, I really have to place most of the blame on PCI DSS’ auditor. TJX is not in the business of IT Security, they are in the business of selling apparel and home goods at discount prices, and they do it on a massive level. TJX hired a company who specializes in IT Security and they failed to properly analyze their system. Nevertheless, the CTO/CSO at the time should have been well aware of minimum system requirements for a Level 1 company and could have remedied the situation long before the attacks. When you are the biggest and most profitable business in ANY industry, you become the most vulnerable for attacks, mainly because attackers get more out of the time they spend hacking. Bigger systems mean more loop holes, and the attackers won on this one.