Define the medical model of health and describe the differences when Essay - 1

Define the medical model of health and describe the differences when compared to the social model of health - Essay Example The concept of social model of health is much advanced than the medical model and is currently being used in the field of medicine, nursing, sociology, health psychology, psychiatry, clinical social work and chiropractic medicine. According to the medical model of health, physical illness is caused by a particular "pathogen" or disease causing organism (Curtis, p.48). The pathogens cause the disease because of which some physical changes occur within the body. The causative factors are not only organisms but some chemical imbalances and genetic predisposition. According to the social model which is commonly known as the biopsychosocial model, illness is caused due to an interplay of a multitude of factors and that most of the times illness results from an interplay of biological factors like pathogens, psychological factors like beliefs and behaviors and social factors like economic status and employment. This model of health was developed by Engel in the 1970s. The psycho aspects of health which this model proposed were cognitions like expectations of health, certain emotions like fear of treatment and important health-related behaviors like consumption of alcohol, smoking, diet and exercise (Curtis, p.53). Emotional turmoil, lack of self-control and negative thinking have been incriminated in the development of disease. The social aspects of health which this model proposed were social drinking, peer group pressure and expectations, social values of health, ethnicity, parental pressure and expectations and social class. The social model of health is basically based on the social cognitive theory (Curtis, p.55). The medical model perceives illness as beyond the control of the individual and thus individuals are not responsible for the illness. Here patients are regarded as victims of external force that causes changes in the internal aspects of the patients. But the social model perceives illness as a combination of several

English Essay Example | Topics and Well Written Essays - 500 words - 2

English - Essay Example This attitude is established by Douglass’s description of Mrs. Auld as â€Å"a woman of the kindest heart and finest feelings† (Douglass, p 159) until she is corrupted by the poison of slavery. Likewise, he expresses his deep affection for the little white boys who taught him to read. On the other hand, Douglass is unequivocal in his attitude towards white people who are slaveholders. He declares, â€Å"I loathed them as being the meanest as well as the wickedest of men,† (Douglass, p 164). He holds Andrew and Mrs. Hamilton to be the examples of this bestiality. Douglas is undoubtedly bitter about his slavery experiences. His learning makes him acutely conscious of slavery as a violation of human rights. His hatred of the unjust society, which has denied his people their freedom, is evident throughout the Narrative. He describes such a society as composed of â€Å"a band of robbers,† (Douglass, p 164). Douglass is particularly anguished by the cruel treatm ent meted out to his grandmother, who is abandoned and turned out to die alone in her old age. He condemns a society that supports slavery as one in which â€Å"the exercise of irresponsible power† (Douglass, p 162) is sanctioned. It is slavery which makes barbarians of a society. Charles Darwin’s Natural Selection deals with the significance of natural variations, and the evolution of those variations which are favorable for the survival of the species.

Annotated Bibliography: Nursing Care of Patient With Stroke

Annotated Bibliography: Nursing Care of Patient With Stroke This annotated bibliography will discuss three pieces of literatures, which include a Department of health policy. Demonstrating an understanding of the chosen articles with the use of additional literatures to analyse identify and explore learning and how it will influence the nursing care of patient with stroke. Furthermore, the analysis of how the literature search was performed, the database used, search term used, the inclusion and exclusion criteria, the findings and exploration of why the literature was chosen will be identified. Search Strategy Database such as CINAHL plus, British Nursing Index and Department of Health policy was utilised to acquire relevant articles and guideline relating to stroke (Achterberg, Schoonhoven Grol, 2008). This was searched using keywords such as; â€Å"self- care CVA†, â€Å"self-care management†, with the use of the Boolean operator â€Å"OR†, â€Å"AND â€Å"and â€Å"IN† which helped expand and narrow the search criteria (Petersen, 2010). To carry out the first search the keywords â€Å"self-care management† was inserted and it came up with 1878 hits, again Boolean operator â€Å"OR† was used to refine the search. However the hits were large at 40361 hits, the Boolean operator â€Å"IN† was inserted which gave less than 1657 hits. Moreover, when the search keywords â€Å"self-care stroke† was inserted to the database it came up with 1831 hits, however when the Boolean operator â€Å"AND† was added the number of hits had red uced to 51. To further narrow the search to get minimum and relevant information relating to stroke, the writer used the advance search tools by limiting the search to UK only, publications dates within 6years and excluding international. As a result of this, the first article had 30 results, second article had 500 results and the third article had 321 results. From this, the writer read 10 abstracts each from the articles that were more suitable for the research. From the ten abstract read, the writer was able to come to conclusion by choosing 1 article from each search as it contains appropriate information regarding nursing care for patient with stroke. However the policy was found using the DoH website as the database used to find the other articles were not appropriate for finding a guideline. This was search using keywords â€Å"SELF MANAGEMENT FOR STROKE†, in which gave the writer suitable information relating to stroke and how it influence nursing care (reference) Annotated Article 1 Joice, S. (2012). Self-Management following Stroke. Nursing Standard, 26 (22), 39-46 In this article the author defines the concept of self-management and describes psychological theories and emerging behaviour change techniques that nurses can use to promote positive self-care in patients who have had a stroke (McCabe Timmins, 2013). They identify the importance that nurses are in the main position to combine a wide range of behaviour change techniques that can be modify to different patients (Egan, 2009). They also identify the importance of nurses creating a therapeutic relationship through communication as it enhances the delivery of care provided (Palmer, 2000). Additionally, by providing useful communication between the nurse and patient it encourages them to take more interest in their condition and develop greater understanding and confidence in self-care management (McCabe Timmins, 2013). Many authors such as Burnard (2003), Barrett, Komaromy, Robb and Rodger (2004) and Bach and Grant (2011) agree that communication is the most important therapeutic skill compulsory for nurses. Whilst Schuster (2000) highlights that nurses must also be able to appreciate non-verbal communication, through eye contact and touch, as it is a crucial method to creating a rapport and trusting relationship with their patient before verbal communication commences. The article also identified the challenges nurses face when delivering self-management after stroke, as different policies, authors or researchers may not use same definition of self-management (Newman, Steed Mulligan 2009). Therefore, nurses have to interpret documents and apply them in different environment. Lorig Holman (2003) supports that self-management is poorly theorised, which means lack of knowledge restrict both the nurses and patients from facilitating self-care management (White, Duncan and Baumle, 2011) Although it identifies the importance of individual’s attitudes and beliefs towards recovery and response to rehabilitation, the attitudes and beliefs of the nurse also plays a role (Young and Forster, 2007). However Daniel, Grendall Wilkins (2008) states the importance of valuing people’s attitude and beliefs as it determines their motivation to participate in self- care. Therefore nurses have to be sensitive to that fact that all patients share different beliefs regarding health care issues. (Barker, 2009) The overall article highlighted the importance of nurse’s usage of different behaviour change techniques to promote positive self-management after stroke. It also identifies nurses as the main provider in promoting self-care to patients and their families in order to improve the outcome. Annotated Article 2 Rowat, A. (2011). Malnutrition and Dehydration after Stroke. Nursing Standard, 26 (14), 42-46 The aim of the article was to encourage nurses to identify the frequency and causes of malnutrition and dehydration, consider the complications it can cause and to be aware of the feeding strategies. They identify that patient presented with stroke should be assessed within the first 48 hours and swallowing should be assessed before giving any food, fluid or oral medication (NICE, 2008). They identify the video-fluoroscopy test used to observe the patient swallowing process. However the test is not practical for assessing patient with stroke as they are unable to sit independently as well as endure movement of their head (Rowe D’Antonio, 2005, Jacobsson et al, 2000). Although the video-fluoroscopy is used to detect dysphagia, it is believed to be an unreliable source as it does not identify how the patient should be fed when they return to the ward (Clayton, Jack, Ryall, Tran, Hilal Gosney 2006). The use of different trials carried out by Dennis, Lewis Warlow (2005) supports decisions about feeding patients after stroke as it illustrates the significance of enteral tube feeding reducing risks of death at 6months. The article also identifies alternative evaluation tool; Fibre optic Endoscopic Evaluation of Swallowing (FEES) has been developed as it can be used at the bedside to establish the movement of fluid and food in the larynx (Ramsey, Smithard Kalra, 2003). However it still requires a skilled operator to administer the swallowing test, therefore the person administering the tests must receive sufficient education and training in order to carry out the test accurately (Rodgers, 2005). It identifies the importance of nurses using the Malnutrition Universal Screening Tool as it is a valid and reliable nutritional screening tool used in hospital setting, as high number of patient with stroke experience malnutrition (NICE, 2008). However the tool is not specific to stroke and would not identify reasons the patient is malnourished, but it enables the nurses to identify the patients who need to refer to speech and language therapist (Hickson, 2006). The overall article informs nurses of the common complication arising from stroke and the tools used to examine. It also identifies the importance of teamwork between nurses and speech and language therapy in maintaining the nutrition and hydration status of the patient after stroke. Annotated Policy Department of Health. (2007). National Stroke Strategy. London: HMSO The strategy has been put in place as it provide a quality framework against which local services can secure improvements to stroke services and address health inequalities involving stroke within ten years, provide advice, guidance and support for commissioners, strategic health authorities, the voluntary sector and social care, in the planning, development and monitoring of services; and inform the expectations of those affected by stroke and their families, by providing a guide to high-quality health and social care services. The Department of Health (2007) established a national strategy for stroke facilities in England. According to DoH (2007), almost 110,000 people under the age of 65 in England have a stroke yearly and 20-30% of those people pass away within a month. They identified Stroke as the main cause of disability within adults and costing the NHS and economy  £7 billion yearly as suggested by (Leatherman, Sutherland Airoldi 2008). The DoH developed the strategy as a result of an evidence based practice (Keele, 2011), which suggest what needs to be done by recommending nurses to use the care pathway to deliver an effective care to patients with stroke (Barker, 2013). The policy was implemented to remodel the services provided to the patients, ensuring they receive the best care using resources available. However due to some nurses lack of knowledge, it could limit the resources being used effectively (Rodgers, 2005). Although the policy supports the involvement of patients and family with stroke by involving them in care planning (Benner, Kyriakidis Stannard, 2011). However the policy identifies that this can prove to be less effective when communicating with the patient due to either physical disability or limited communication as a result of the severity of their stroke (DoH,2007).Therefore the policy identifies how to interact effectively with the patient by maintaining their dignity (Masters, 2014). Overall the policy highlights the important of nurses being updated frequently on different tools available to use when caring for their patient. This ensures the patients receive an up-to-date care and restricts their stay in hospital. To conclude, the writer has demonstrated understanding of the articles and policy chosen, by using literatures to analyse and explore further reading concerning how it influences the nursing care of the stroke patient. This has equipped the writer on how effective high quality care should be delivered to patients effectively. References Achterberg, T.V, Schoonhoven, L Grol, R. (2008). Nursing implementation science: How evidence based nursing requires evidence- based implementation. Journal of Nursing Scholarship, 40(4), 302-310. Bach, S. Grant, A. (2011). Communication and interpersonal skills in nursing. (2nd ed). Great Britain: Short Run Press. Barker, A.M. (2009). Advanced practice nursing: Essential knowledge for the profession. USA: Jones and Bartlett Publishers. Barker, J. (2013). Evidence based practice for nurses. (2nd ed.). London:SAGE. Barret, S., Komaromy, C., Robb, M. Rodgers, A. (2004).Communication, relationship and care: A reader. USA: Routledge. Benner, P., Kyriakidis, P.H. Stannard, D. (2011). Clinical wisdom and interventions in acute and critical care: A thinking-in-action approach. (2nd ed.). New York: Springer Publishing. Burnard,P. (2003). Ordinary chat and therapeutic conversation: Phatic communication and mental health nursing. Journal of Psychiatric and Mental Nursing, 10 (6), 678-682. Clayton, J., Jack, C.I., Ryall, C., Tran, J., Hilal, E. Gosney, M. (2006). Tracheal pH monitoring and aspiration in acute stroke. Age and Ageing. 5 (1), 47-53. Daniels, R, Grendell, R Wilkins, F.R. (2008). Nursing fundamentals: caring and clinical decision making. (2nd ed). USA: Cengage Learning. Dennis, M.S., Lewis, S.C. Warlow, C. Food Trial Collaboration (2005b). Effect of timing and method of enteral tube feeling for dysphagic stroke patients (FOOD): a multicentre randomised controlled trial. The Lancet. 365, 9461, 764-772. Egan, G. (2009). The skilled helper: A problem management and opportunity-development approach to helping. (9th ed.). USA: Cengage Learning. Hickson, M. (2006). Malnutrition and ageing. Postgraduate Medical Journal. 82 (963), 2-8. Jacobsson, C., Axelsson, K., Osterlind, P.O. Norberg, A. (2000). How people with stroke and healthy older people experience the eating process. Journal of Clinical Nursing. 9 (2), 255-264. Joice, S. (2012). Self-Management following Stroke. Nursing Standard, 26 (22), 39-46 Keele, R. (2011). Nursing research and evidence based practice: Ten steps to success. USA: Jones Bartlett Learning. Lorig, K. Holman, H.R. (2003). Self-Management education: History, definition,outcomes and mechanisms. Annals of Behavioural Medicine. 26 (1), 1-7. Leatherman, S., Sutherland, K. Airold, M. (2008). Bridging the quality gap: Stroke. Retrieved March, 9, 2014 from http://www.wales.nhs.uk/documents/bridging_the_quality_gap.pdf Masters, K. (2014). Role development in professional nursing practice. (3rd ed). USA: Jones and Bartlett Publishers. McCabe, C Timmins, F. (2013). Communication skills for nursing practice. (2nd ed). UK: Palgrave Macmillian. Newman, S., Steed, L. Mulligan, K. (2009). Chronic physical illness: Self-management and behavioural intervention. England: Open University Press. Palmer, S. (2000). Introduction to counselling and psychotherapy. London: Sage Petersen, R. (2010). Ubuntu 10.04 LTS desktop handbook. USA: Surfing Turtle Press. Ramsey, D.J., Smithard, D.G. Kalra, L. (2003). Early assessments of dysphagia and aspiration risk in acute stroke patients. Stroke. 34 (5), 1252-1257. Rodger, B.L. (2005). Developing nursing knowledge: Philosophical traditions and influences. USA: Lippincott Williams and Wilkins. Rowat, A. (2011). Malnutrition and Dehydration after Stroke. Nursing Standard, 26 (14), 42-46 Rowe, M.R D’Antonoio, L.L. (2005). Velopharyngeal dysfunction: Evolving developments in evaluation. Current Opinion in Otolaryngology Head and Neck Surgery, 13 (6), 366-370. Schuster, P. (2000). Communication the key to the therapeutic relationship. Phiadelphia: F.A. Davis Company. United Kingdom. Department of Health. (2007). National Stroke Strategy. London: HMSO. United Kingdom. National Institute for Health and Clinical Excellence. (2008). Stroke: National Clinical Guidelines for the Diagnosis and Initial Management of Acute Stroke and Transient Ischaemic Attack. Clinical Guideline No.68. London: HMSO. White, L., Duncan, G Baumle, W. (2011). Foundation of basic nursing. (3rd ed). USA: Cengage Learning. Young, J Forster, A. (2007). Review of stroke rehabilitation. British Medical Journal. 334 (7584), 86-90.

Performance Budgeting :: American Government, Budgeting Initiatives

This paper examines the benefit of performance based budgeting as a practical theory of efficiency for government programming. Confronted by fiscal limitation and demand for improved public services, government agencies are utilizing the budget as a means to elevate government accountability and efficiency, rather than simply as a means for distributing funds and controlling expenses. Performance based budgeting has been defined as a system wherein managers are provided with the flexibility to utilize agency resources as required, in return for their commitment to achieve certain performance results. (Brewer, 3) Performance budgeting is a system of planning, budgeting, and evaluation that emphasizes the relationship between money budgeted and results expected. (Government of Alberta, 1) Performance budgeting signifies an important divergence from habitual line item budgeting. A line item budget is mainly a tool for controlling expenditures it characteristically indicates the amount of spending permitted for particular purposes. As a fiscal year progresses, departmental spending must remain within the budgeted amounts unless formal budget amendments are approved. Under line item budgeting spending in one category cannot automatically be used to supplement another category. (Government of Alberta, 2) While traditional budgets can be useful in assisting managers with internal control, they are not typically as useful as a policy or decision making tool. Line-item budgets assure elected and administrative officials that money is being spent only for approved purposes, but they do not show what is being accomplished with the money. (Government of Alberta, 3) Additional drawbacks to line-item budgets involve the promotion of indolence, due to the minor modifications made to budget planning each year. Line-item budgeting can result in ineffective and costly actions because management is not allowed the flexibility to address changing situations. (Virginia Society of Certified Public Accountants, 7) Many government programs are often forced to use funding, or lose funding at the end of a program year; these restrictive processes have the potential to invite micromanagement and impede the fulfillment of program objectives. (Government of Alberta, 3) In comparison, performance budg eting has more of a policymaking orientation it links plans, measures, and budgets and it pushes administrators and policymakers to contemplate the big picture. (Brewer, 23) Performance budgeting provides useful information about the impact of budget decisions on people and gives departments increased budgetary flexibility. Additionally, performance budgeting allows for ongoing monitoring and strengthens legislative decision making and oversight.

New Heritage Company

NEW HERITAGE DOLL COMPANY Capital Budgeting NEW HERITAGE DOLL COMPANY Capital Budgeting Brief Case Brief Case Brief Case Brief Case Brief Case Brief Case Brief Case Brief Case To: CFO (New Heritage Doll Company) From: Date: 11/16/12 RE: NEW HERITAGE DOLL COMPANY To: CFO (New Heritage Doll Company) From: Date: 11/16/12 RE: NEW HERITAGE DOLL COMPANY Here a composite report is advanced on the toy industry, New Heritage Doll Company and the evaluation of its investment projects. Here a composite report is advanced on the toy industry, New Heritage Doll Company and the evaluation of its investment projects. Index Index | | 1. Introduction| 4| | | | | | 2. The Doll Industry| 6| | | | | | | 3. New Heritage Company| 9| | | | | | | 4. Capital Budgeting| 11| | | | | | | 5. Investment Proposals| 17| | | | | | | 6. Projects analysis| 20| | | | | | | 7. Election of one project| 26| | | | | | | 8. Exhibit. 1. Match My Doll Clothing| 32| | | | | | | 9. Exhibit. 2. Design Your Own Doll| 35| 1. Intro duction 1. Introduction ————————————————- ————————————————- 1. 1 New Heritage Doll Company: Capital budget In September 2010 Emily Harris was considering two proposals for investment for the company New Heritage Doll Company.As always, there are certain financial constraints that force the choice of a project and discard the other. The evaluation process for each project is hard, there are many details to consider, other data are not known with certainty and the only thing that can be done is an estimate as closely as possible. Our role here is to help interpret information, work with it, develop surveys and help clarify the dilemma so that the end result is the choice of the most suitable investment project for New Heritage Doll Company. Sport toys Sport toys 2. The doll industry 2. The doll industryNew Heritage has created a durable franchise for its line of heirloom dolls. New Heritage has created a durable franchise for its line of heirloom dolls. Revenue in the toy industry in the United States were 42 billion in 2008 and is expected to grow 4. 6% per year to reach 52. 5 billion in 2013 (graph 1). The market is divided into two broad segments: video games (48%) and traditional toys and games (52%) (Figure 2). The second segment is further divided into preschool toys (14. 5%), wrist (14. 1%), sports toys (12. 3%) and other toys and games (59. 1%) (Figure 3). Figure 2 Figure 2 Toys segmentsToys segments Figure 1 Figure 1 Sport toys Sport toys Figure 3 Figure 3 Traditional toys and games Traditional toys and games Preschool toys Preschool toys Sport toys Sport toys Other toys Other toys Dolls Dolls Sport toys Sport toys Sport toys Sport toys 3. New Heritage Company 3. New Heritage Company By the year 2009, New Heritage had grown to 450 em ployees and generated approximately $245 million of revenue and $27 million of operating profit. By the year 2009, New Heritage had grown to 450 employees and generated approximately $245 million of revenue and $27 million of operating profit. ———————————————— 3. 1 New Heritage Dolls The New Heritage Dolls Company was founded in 1985 by Ingrid Beckwith, a retired psychologist specializing in child development and the grandmother of two young girls. Figure 4 Figure 4 It sought to extend the New Heritage brand and capitalize on high levels of customer loyalty by selectively licensing the company’s doll characters and themes to a variety of media that reached the firm’s target demographic of toddler to pre-teen girls. New Heritage Dolls Production DivisionNew Heritage Dolls Production Division 4. Capital Budgeting 4. Capital Budgeting ———â⠂¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- 4. 1 Capital budgeting Capital budgeting is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures. ————————————————- 4. 2 Ranked Projects The real value of capital budgeting is to rank projects.Most organizations have many projects that could potentially be financially rewarding. Once it has been determined that a particular project has exceeded its hurdle, then it should be ranked against peer projects. The highest ranking projects should be implemented until the budgeted capital has been expended. ———————â €”————————- 4. 3 Need for capital budgeting 1. As large sum of money is involved which influences the profitability of the firm making capital budgeting an important task. 2.Long term investment once made cannot be reversed without significance loss of invested capital. The investment becomes sunk and mistakes, rather than being readily rectified, must often be born until the firm can be withdrawn through depreciation charges or liquidation. It influences the whole conduct of the business for the years to come. 3. Investment decision are the base on which the profit will be earned and probably measured through the return on the capital. A proper mix of capital investment is quite important to ensure adequate rate of return on investment, calling for the need of capital budgeting. 4.The implication of long term investment decisions are more extensive than those of short run decisions because of time factor involved, capital budgeting decisions are subject to the higher degree of risk and uncertainty than short run decision. ————————————————- 4. 4 Capital Budgeting at New heritage Doll Company Currently the capital budgeting process in New Heritage is conducted by a panel consisting of the CEO, the CFO, the COO, the controller and the division of presidents. Historically, capital budgeting was about 15% of Ebitda. Three formal methods are used in New Heritage capital budgeting: 1.Net Present value (NPV). 2. Payback period. 3. Internal rate of return (IRR). These methods use the incremental cash flows from each potential investment, or project. Under accrual accounting, revenues and expenses are reported based on accounting principles. This means that revenues are reported when they are earned, and expenses are matched to the periods of the revenue. In other words, revenues and expenses are not reported on the income statement when the money is received or spent. Further, the revenue and expense amounts are not adjusted for the time value of money because of the monetary unit assumption.Capital budgeting decisions should be based on cash flows that are adjusted for the time value of money. The time value of money recognizes that a dollar received or spent in the future is less valuable than a dollar received or spent in the present. Calculations such as the internal rate of return or net present value include adjustments for the time value of money. In these calculations present value factors, financial calculators, or computer software are used to discount the cash flows to their present values. ————————————————- 4. Incremental cash flows They are additional operating cash flows that an organization receives from taking on a new project. A positive incremental cash flow means that the company's cash flow will increase with the acceptance of the project. There are several components that must be identified when looking at incremental cash flows: the initial outlay, cash flows from taking on the project, terminal cost or value and the scale and timing of the project. A positive incremental cash flow is a good indication that an organization should spend some time and money investing in the project. ———————————————— 4. 6 Free cash flows A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value. Without cash, it's tough to develop new pro ducts, make acquisitions, pay dividends and reduce debt. FCF is calculated as:EBIT (1- Tax rate)| | | + Depreciation ; Amortization| – Change in Net Working Capital| – Capital Expenditures|   | Free Cash Flow| | | Where: Current assets| – Current liabilities| Net working capital| Where: Cash| | | + Accounts receivable| + Inventories| | Current assets| | It is important to note that negative free cash flow is not bad in itself. If free cash flow is negative, it could be a sign that a company is making large investments. If these investments earn a high return, the strategy has the potential to pay off in the long run. ———————————————— 4. 7 Sunk cost It is a cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business may face, such as inventory costs or R&D expenses, because it has alre ady happened. Sunk costs are independent of any event that may occur in the future. ————————————————- 4. 8 Opportunity cost It is the best return that could be earned on assets the firm already owns if those assets are not used for the new project.Now suppose the initial cost shown in each project was based on the assumption that the project would save money by using some equipment the company now owns and that equipment would be sold for certain amount of money, after taxes, if the project is rejected. The amount is an opportunity cost, and it should be reflected in our calculations. We would add that amount to the project's cost. The result would be an NPV- Asset value. ————————————————- 4. 9 Terminal value The terminal value of an asset is its anticipated valu e on a certain date in the future.It is used in multi-stage discounted cash flow analysis and the study of cash flow projections for a several-year period. The perpetuity growth model is used to identify ongoing free cash flows. The exit or terminal multiple approache assumes the asset will be sold at the end of a specified time period, helping investors evaluate risk/reward scenarios for the asset. An asset's terminal value is a projection that is useful in budget planning, and also in evaluating the potential gain of an investment over a specified time period. 5. Investment proposals 5. Investment proposals ————————————————- . 1 Match My Doll Clothing (MMDC) line expansion This line consisted of a set to match clothes for girls and dolls and some accessories. Due to the good publicity, it is thought to be a good time to expand this line. It is believed that this expansio n will be profitable because the current line is very popular and allows charging premium prices. This project involves the expenditure of large sums for research and development, market research and marketing. Table 1 Table 1 Initial expenditures ($ thousands)| 2010| Upfront R&D| $625 | Upfront Marketing| 625| Investment in Working Capital| 800|Property, Plant ; Equipment| 1,470| Total| $3,520 | The R;D and marketing expenditures would be deductible for tax purposes ta New Heritage’s 40% corporate tax rate. ————————————————- 5. 2 Design Your Own Doll (DYOD) Research suggested that many loyal customers would purchase yet another doll if they could customize the doll’s features to create a â€Å"one-of-a-kind† addition a girl’s or family’s existing collection of dolls. However, even a limited degree of customization increased manufacturing complexity and expense. Table 2 Table 2 Initial expenditures ($ thousands)| 2010| 2011|Upfront R;D| $841 | | Upfront Marketing| 360| | Investment in Working Capital| | 1,000| Property, Plant ; Equipment| 4,610| | Total| $5,811 | $1,000 | As with Match My Doll Clothing, the required R;D and marketing costs would be tax deductible. To complete development work, it is planned to use some of the company’s existing IT staff. The majority of the work would take place during calendar 2011. The number of people is shown in the table below. Table 3 Table 3 Application Development Personnel Costs| Number| Salary| Total| Web Application Developers| 1| $150 | $150 | Database Manager| 1| 160| 160|Systems Integration Specialist| 1| 125| 125| Total Cost| | | $435 | If this project stumbled for some reason, New Heritage risked damaging relationship with its best customers. 6. Projects analysis 6. Projects analysis For each project, three metrics are going to be calculated: 1. Net Present va lue (NPV). 2. Payback period. 3. Internal rate of return (IRR). ————————————————- 6. 1 Net Present Value (NPV) The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project.NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account. If the NPV of a prospective project is positive, it should be accepted. However, if NPV is negative, the project should probably be rejected because cash flows will also be negative. For example, if a retail clothing business wants to purchase an existing store, it would first estimate the future cash flows that store would generate, and then discount those cash flows into one lump-sum present value amount, say $565,000.If the owner of the store was w illing to sell his business for less than $565,000, the purchasing company would likely accept the offer as it presents a positive NPV investment. Conversely, if the owner would not sell for less than $565,000, the purchaser would not buy the store, as the investment would present a negative NPV at that time and would, therefore, reduce the overall value of the clothing company. ————————————————- 6. 2 Payback period The length of time required to recover the cost of an investment. The ayback period of a given investment or project is an important determinant of whether to undertake the position or project, as longer payback periods are typically not desirable for investment positions. ————————————————- 6. 3 Internal rate of return (IRR) The discount rate often us ed in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. Generally speaking, the higher a project's internal rate of return, the more desirable it is to undertake the project. As such, IRR can be used to rank several prospective projects a firm is considering.Assuming all other factors are equal among the various projects, the project with the highest IRR would probably be considered the best and undertaken first. ————————————————- 6. 4 How to work with working capital assumptions To know the value of current assets (cash, accounts receivable and inventories) and accounts payable a set of assumptions are given, with which we must work: 1. Cash Minimum Cash Balance as % of Sales. It is easy to know the amount of cash together by applying the percentage to sales revenue. 2. Days Sales OutstandingIn this case the data is provided are the days. Using the formula of Days Sales Outstanding, we can solve for the value of accounts receivable. DSO = Accounts receivableSales365 3. Days Payable Outstanding. In this case the data is provided are the days. Using the formula of Days Payable Outstanding, we can solve for the value of accounts payable. DPO = Accounts payableCost of sales365 ————————————————- ————————————————- 6. 5 Metrics results for both projects Clarifications: For the terminal value, it has been employed the following formula:Terminal value=FCF10 (1+G)(R-G) Where: * FCF10 is the free cash flow of year 10 (2020). * G is the growth rate. In this case a growth rate of 2% has been used, for New Heritage prefer more conservative forecasting. * R is the discount rate used. T hree different discount rates have been used depending on the level of risk is low, medium or high. ————————————————- 6. 6 Metrics for Match My Doll Clothing Line Expansion These are the results obtained from free cash flows provided by Match My Doll Clothing Line Expansion: Table 4 Table 4 RISK LEVEL| RATE| NPV| PAYBACK PERIOD| IRR|Low| 7. 70%| 7,285. 27| 7. 52| 23. 08%| Medium| 8. 40%| 5,938. 36| 7. 52| 22. 12%| High| 9%| 5,002. 43| 7. 52| 21. 40%| ————————————————- 6. 7 Metrics for Design Your Own Doll These are the results obtained from free cash flows provided by Design Your Own Doll project: Table 5 Table 5 RISK LEVEL| RATE| NPV| PAYBACK PERIOD| IRR| Low| 7. 70%| 9,219. 21| 9. 06| 18. 17%| Medium| 8. 40%| 7,010. 46| 9. 06| 17. 09%| High| 9%| 5,483. 73| 9. 0 6| 16. 29%| ————————————————- 6. 8 Other aspects to consider in capital Budgeting FlexibilityCapital budgeting techniques used by large businesses often run into flexibility problems. Many companies use a standard capital budgeting form where an analyst plugs numbers into specific categories to come up with net present value, cash flows, ROI and other basic results. However, not all costs and revenues from a project fit into such a fill-in sheet and can be difficult to classify. The best type of capital budgeting is the kind that can be customized for each project. Accuracy Capital budgeting depends largely on the quality of information that is used to for the budget analysis.This opens the process up to flaws if the incoming data is incorrect. For example, if someone underestimates a key cost, capital budgeting will show the project as less expensive than it will be. This is a common risk, and managers should always consider that the financial information behind the capital budgeting process is usually not 100 percent accurate. Benefit Type There are two general benefits associated with capital budgeting and projects. Hard benefits directly affect the project and loss statement and have easy, tangible results.There are also soft benefits, which are quantifiable but do not easily affect profit or loss directly. A third group, intangibles, is related to intellectual, emotional and environmental gains. Companies tend to only concentrate on hard benefits and forget that projects can produce other advantages as well. Emotions and Assumptions Capital budgeting is ultimately a tool that can help managers make decisions, not a process for making the decision itself. Managers are susceptible to energy behind a project and may support a project because it appears exciting or the end results are highly noticeable.Sometimes it is better to go with more boring, stable results that will keep the company strong than always moving for flashy projects. 7. Election of a project 7. Election of a project In the case of the Match My Doll Clothing, given the current economic situation and the inherent characteristics thereof, it seems most reasonable to choose the medium risk discount rate (8. 4%). At this rate, the following results are reached: Table 6 Table 6 RISK LEVEL| RATE| NPV| PAYBACK PERIOD| IRR| Medium| 8. 40%| 5,938. 36| 7. 52| 22. 12%|In the case of the Design Your Own Doll, as it has a fairly long payback, it has new unknown processes for New Heritage and because if the project fails the customer relationships will be damaged, it seems that it is more appropriate to assign the high risk discount rate (9%). At this rate, the following results are reached: Table 7 Table 7 RISK LEVEL| RATE| NPV| PAYBACK PERIOD| IRR| High| 9%| 5,483. 73| 9. 06| 16. 29%| Match My Doll Clothing Line Expansion and Design Your Own Doll are Mutually Exclusive P rojects which means that are a set of projects from which at most one will be accepted.For example, a set of projects which are to accomplish the same task. Thus, when choosing between â€Å"Mutually Exclusive Projects† more than one project may satisfy the Capital Budgeting criterion. However, only one, i. e. , the best project can be accepted. Of these three, Net Present Value, Payback Period and Internal Rate of Return, only the Net Present Value and Internal Rate of Return decision methods consider all of the project's cash flows and the Time Value of Money.And, only the Net Present Value decision method will always lead to the correct decision when choosing among Mutually Exclusive Projects. This is because the Net Present Value and Internal Rate of Return decision methods differ with respect to their Reinvestment Rate Assumptions. The Net Present Value decision method implicitly assumes that the project's cash flows can be reinvested at the firm's Cost of Capital, where as, the Internal Rate of Return decision method implicitly assumes that the cash flows can be reinvested at the projects IRR.Since each project is likely to have a different IRR, the assumption underlying the Net Present Value decision rule is more reasonable. Nevertheless, the NPV method has some disadvantages. One major disadvantage is that the method requires a detailed prediction of the project’s future cash flows. It is not that difficult if the project life is four years. But generally the life of a project is much longer. For example, computing the NPV for one these projects would require forecasting cash flows for the entire life of the project.This period could be 20 years, 30 years but we don’t know exactly how many and forecasting revenues for so many years is extremely difficult. A second disadvantage of the NPV method is that it assumes that the discount rate will remain the same over the life of the project. In many instances, the cost of capital, and the refore the discount rate, changes as firms refinance debt. ————————————————- 7. 1 Projects NPV Profiles The figure bellow presents the net present value profile (A graph showing the relationship between a project’s NPV and the firm’s cost of capital)For both Match My Doll Line Expansion and Design your Own Doll projects. To make the profile, we find the project's NPV at a number of different discount rates and then plot those values to create a graph. We can see that at a zero cost of capital, the NPV is simply the net total of the undiscounted cash flow. This value is plotted as the vertical axis intercept. It is also seen that the IRR is the discount rate that causes the NPV to equal zero, so the discount rate at which the profile line crosses the horizontal axis is the project's IRR.When we connect the data points, we have the NPV profile. IRRMMDC IRRMMDC NPV ($) NPV ($) Cost of capital (%) Cost of capital (%) IRRDYOD IRRDYOD DYOD DYOD Crossover rate; conflict if r is to the left, no conflict if r is to the right Crossover rate; conflict if r is to the left, no conflict if r is to the right At r = 10% NPVMMD > NPVDYOD but IRRDYOD > IRRMMD, so there is a conflict At r = 10% NPVMMD > NPVDYOD but IRRDYOD > IRRMMD, so there is a conflict MMDC MMDC The IRRs are fixed, and DYOD has the higher IRR regardless of the cost of capital. * However, the NPVs vary depending on the actual cost of capital. * The two NPV profile lines cross at the crossover rate that is the cost of capital at which the NPV profiles of two projects cross and, thus, at which the projects’ NPVs are equal. * MMDC project has the higher NPV if the cost of capital is less than the crossover rate, but DYOD has the higher NPV if the cost of capital is greater than that rate.Besides, MMD has the steeper slope, indicating that a given increase in the cost of capital caus es a larger decline in NPVMMDC than in NPVDYOD Finally, although MMDC is more sensitive to the variation of the discount rate, we think the most reasonable for New Heritage, as to these two investment proposals, is to choose Match My Doll Clothing Line Expansion for the following three reasons: * NPV is greater ($5,938. 36) than that of Design Your Own Doll ($5,483. 73). * The payback period is shorter (7. 2 years) than that of Design Your Doll (9. 06 years). Years Years * The IRR is greater (22. 12%) than the Design Your Own Doll (16. 09%). New Heritage Doll Company Exhibit 1. Cont New Heritage Doll Company Exhibit 1. Cont New Heritage Doll Company Exhibit 1. Cont New Heritage Doll Company Exhibit 1. Cont | | | | | | | | | | New Heritage Doll Company Exhibit 2. Cont New Heritage Doll Company Exhibit 2. Cont New Heritage Doll Company Exhibit 2. Cont New Heritage Doll Company Exhibit 2. Cont

Case Analysis of Wal-Mart Mexico

1. Introduction 1. 1 History: Wal-Mart first stuck its toe into Mexico in 1991 through a joint venture with Cifra, Mexico’s leading retail company, initially limited to developing Sam’s Club warehouse stores in Mexico. The tremendous success of the first Sam’s Club stores and the impending passage of the North American Free Trade Agreement (NAFTA) encouraged further collaboration, and Wal-Mart and Cifra expanded their joint venture through the 1990s. Wal-Mart purchased a majority stake in Cifra in 1997. Prior to the joint venture, Cifra’s lineup included Aurrera autoservicios (superstores selling food, clothing, and a variety of other items), Superama supermarkets, Suburbia department stores, and Vips restaurants. To this roster, Wal-Mart added Wal-Mart superstores (shifting Aurrera to a budget niche and relabeling its stores Bodega) and Sam’s Club warehouse stores, as well as introducing two new restaurant formats. Wal-Mart-Cifra had fewer grocery stores (though more stores of all formats) than either of competitors Gigante and Comercial Mexicana as of 1993, but had overtaken them by 2000 and today has 326 Wal-Mart, Aurrera, Sam’s, and Superama stores. Wal-Mart rolled out its â€Å"every day low prices† (EDLP) policy in Mexico in 1999-2000. It controlled 49 percent of Mexican supermarket sales in 2001. Wal-Mart also began to post price comparisons with other chains, a practice that in 2002 got it expelled from ANTAD, Mexico’s National Association of Supermarket and Department Stores. Today, 62 percent of Wal-Mart Mexico’s shares are owned by the U. S. based parent, Wal-Mart Stores. 2. Vision The vision of the Company summarizes their commitment to Mexico: â€Å"Contribute toward improving the quality of life for Mexican families. † Their basic belief is Respect for the Individual, Service to Our Customer, and Strive for Excellence, with Integrity being the underlying principle. 1. 3 The Mission Statement The mission upholding the Company’s permanence and success is value creating. All their efforts, strategies and actions are aimed at this objective. . Organizational Chart: Exhibit: 1 Exhibit: 1 2. Divisions of Wal-Mart Mexico: Wal-Mart Mexico’s size and geographic coverage dwarf those of its competition. It operates 694 stores in 73 Mexican cities. The Retail formats of Wal-Mart Mexico are: †¢ Bodega Aurerra †¢ Wal-Nlart Supercenter †¢ Sam’s Club †¢ Superarna †¢ Suburbia and †¢ Vips Although 360 of these stores are self-service (the others are restaurants [Vips] and department stores [Suburbia]), Wal-Mart Mexico has 55 percent of the Mexican retail market. The three major formats (Aurerra, 30 percent; Wal-Mart Supercenter, 27 percent; and Sam’s Club, 29 percent) together provide more than 86 percent of its revenues. 44 percent of the entire countries population is concentrated in 25cities metro areas. A bit more than 18 percent live in the capital city’s metro area. Mexico’s rural population accounts for about 34 million or about 33 percent of the country’s total population. The retail industry does not have a ingle outlet in the rural concentrations, which leaves the market to neighborhood Stores, public markets, or street vendors, which, as individual businesses, do not have a significant presence in the market as a whole. |FORMAT |NAME |#OF STORES |# IN 25 MOST IMPORTANT |% IN 25 MOST IMPORTANT | | | | |URBAN AREAS |URBAN AREAS | Warehouse |Bodega Aurerra |161 |117 |73% | |Suparmarket |Superama |50 |50 |100% | |Hypermarket |Supercenter |86 |74 |86% | |Savings Club |Sam’s Club |61 |42 |68% | |Restur ant |Vips |209 |190 |91% | | |El Porton |46 |42 |91% | |Apparel |Suburbia |53 |53 |100% | |Total | |666 |568 |85% | 3. Target Segments: One of the secret of Wal-Mart Mexico’s success is that it has a clearly defined target market. The Aurerra format (162 stores) is targeted at lower- to lower-middle income classes; these Bodega stores offer 48,000 SKUs. Sam’s Club (61 stores) offers a much more limited variety of products (4,000 SKUs) and targets consumers and businesses buying in volume. The Wal-Mart Supercenter stores (89 units) offer the widest variety of goods (80,000 SKUs). Superama (48 stores) contributes only 3 percent of the company’s sales; these stores offer a variety of goods (35,000 SKUs) but are located in residential areas for convenience. Wal-Mart Mexico’s Suburbia 50 department stores target the middle class, offering fashionable apparel at reasonable prices; these stores contribute 6 percent of the company’s sales. The Vip’s chain of restaurants (284 locations) represents 3 percent of the company’s sales. The vast majority of Wal-Mart Mexico’s stores are located in the 25 most important metro areas in the country. 4. Geographic Coverage [pic] [pic] 5. Responsibilities To the Stakeholders The Customer — The word ‘always' can be seen in virtually all of Wal-Mart Mexico’s literature. Their belief is that the customer is always right, and the stores are still driven by this philosophy. Their commitment to the customers is to Offer the right merchandise assortment, in the right amount, and at the right time at Everyday Low Prices, Always. they ensure and improve the quality of their service to provide the best possible shopping experience. Shareholders – Look after and grow the equity they have been entrusted with, observing the highest standards of integrity and the Corporate Governance best practices is their commitment towards their shareholders. The actions include †¢ foster transparency, timely presentation of information to the shareholders and ethical company management, which in turn contributes towards increasing the value of the Company, all within a control environment and with Corporate Governance best practices. †¢ Through the Statement of Ethics and Compliance program, they ensure that Integrity is an ever-present and global principle. †¢ They develop and every day instill a culture of compliance with beliefs, laws, standards and policies. The Employees – Wal-Mart Mexico believed in listening to employees and challenging them to come up with ideas and suggestions to make the company better. Its first contribution as a corporate citizen is its employment of more than 109,000 people throughout the country and the extensive training programs (4. 2 million hours in 2004) it provides for those employees. The firm highlights its diversity since 48 percent of its employees are female. At each of the Wal-Mart stores, signs are displayed which read, ‘Our People Make the Difference. ‘ One of Wal-Mart's goals was to provide its employees with the appropriate tools to do their jobs efficiently. They provide a sound organizational culture (Integrity, Respect for the Individual, Service to Our Customers, and Strive for Excellence). Personal and professional development for their people is a priority, as well as providing job security for them and economic stability for their families through continuous growth as a company and the diversity of our operations. They have also created programs to improve the quality of life for our Associates, promote gender equality, and benefit the Associates as well as their families. The Community– Wal-Mart is involved in many community outreach programs and has launched several national efforts through industrial development grants. They create and foster programs that promote development and improve the quality of life for all families throughout Mexico. Their initiatives to do so are †¢ Through their programs and on-going support of organizations, they contribute towards generating sustainable changes and creating solutions for malnutrition and food safety issues throughout the country. †¢ They convert community actions into local commitment, allowing each business unit of the Company to become an agent of change. †¢ Wal-Mex also provides direct financial assistance to support high impact projects regarding nutrition for communities in need. The Suppliers — The commitment towards their supplier is to support their development, growth and Consolidation. The purchasing agents of Wal-Mart are very much focused people. ‘Their highest priority is making sure everybody at all times in all cases knows who's in charge, and it's Wal-Mart'. ‘Even though Wal-Mart was tough in negotiating for absolute rock-bottom prices, the company worked closely with suppliers to develop mutual respect and to forge long-term partnerships that benefited both parties'. Actions include the following †¢ They provide development opportunities to suppliers through constant growth. †¢ Through Regional Trade Fairs Wal-Mart Mexico develop local suppliers as a means of providing additional support for small and medium enterprises. They have created areas of development for the textile and garment-making industry, the production chain for perishables, and new regional products. †¢ Our information systems help suppliers to plan production and buy of raw materials, thereby creating greater operations efficiencies and market competitiveness. 6. Financial Analysis: [pic] Financial Highlights 7. Strategic Analysis 7. 1 SWOT Analysis: A scan of the internal and external environment is an important part of the strategic planning process. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. Thus, it is instrumental in strategy formulation and selection and simultaneously to develop a competitive advantage. Strengths: ? Good Corporate Citizen: Wal-Mart Mexico has a positive reputation in Mexico as a good corporate citizen, having received prestigious awards for its actions. It publishes an annual social responsibility report, highlighting its activities as a corporate citizen in Mexico. Wal-Mart Mexico has been certified as a â€Å"Socially Responsible Enterprise† since 2001, one of only a handful of companies in Mexico to receive such an honor. ? Market Leader: It is by far the leader in the Mexican retail industry after less than a decade and a half of operations there providing low-price goods to everyone. ? Largest Private Employer: Wal-Mart is Mexico s largest private employer, with 109,057 employees in valuable jobs in many local communities with 55 percent of the Mexican retail market. Wal-Mart argues that its first contribution as a corporate citizen is its employment of more than 109,000 people throughout the country and the extensive training programs (4. 2 million hours in 2004) it provides for those employees. The firm highlights its diversity since 48 percent of its employees are female. ? Large Market Share: Today, 62 percent of Wal-Mart Mexico’s shares are owned by the U. S. based Parent, Wal-Mart Stores. ? Largest Foreign Subsidiary Wal-Mart Mexico is the largest foreign subsidiary of Wal-Mart Stores and provides approximately 25 percent of the parent’s foreign sales. Environmental Performance Wal-Mart Mexico’s environmental performance includes investing over $8 million in 2003 and 2004 to open 73 water treatment plants and a variety of recycling, energy conservation, and pollut ion-reduction activities. It also emphasizes that more than 90 percent of the products sold in its stores are supplied in Mexico. ? Local Suppliers Wal-Mart Mexico sources from local suppliers. It has leveraged its volume buying power with its suppliers. It negotiates the best prices from its vendors and expects commitments of quality merchandise. So it can minimize the cost of the goods and can offer the customers a lower selling price as well. Good promotion and sponsorship Wal-Mart Mexico also is involved in a number of philanthropic activities, including programs focused on education, nutrition, homelessness, and health. In 2004, it sponsored a National Wal-Mart Mexico Volunteer Day, and 2,476 of its associates participated. ? Good Location Good location is one of the very important criteria for being successful in the industry. The vast majority of Wal-Mart Mexico’s stores are located in the 25 most important metro areas in the country. The retail industry does not have a single outlet in the rural concentrations, as these areas do not have a significant presence in the market as a whole. Increased sales Volume Wal-Mart Mexico’s large volume of sales also indicate its strength. The firm’s net income has increased dramatically from 2002 to 2004, from $485 million to $702 million. the total square meters of space have increased between 2001 and 2004, as have sales per square meter and net income per square meter. ? Proper Segmentation Wal-Mart Mexico has a clearly defined target market. The Aurerra format is targeted at lower- to lower-middle income classes; these Bodega stores offer 48,000 SKUs. Sam’s Club targets consumers and businesses buying in volume. The Wal-Mart Supercenter stores, Superama are located in residential areas for convenience. Wal-Mart Mexico’s Suburbia department stores target the middle class, offering fashionable apparel at reasonable prices. Weaknesses: ? Location: Though majority of the stores of Wal-Mart Mexico’s location are very good, one of the stores has been located near a world historic site, the pyramids of Teotihuacan, has elicited global disapproval from activist groups and is a public relations disaster drawing large local protests. For many, it is just another example of Wal-Mart’s lack of sensitivity to community and humanity. ? Lack of clear Strategic plan Though Wal-Mart Mexico has a clear Vision, Mission and strategy they do not have an integrated version of these. Thus, they need a clear strategic plan for the future. ? Easily copied strategy Competitors are learning to respond to Wal-Mart’s size, efficiency, and success. Wal-Mart stores operate according to their ‘Everyday Low Price' philosophy. All of the main competitors are now competing with Wal-Mart now offers some version of its â€Å"every day low prices† (EDLP) formula. Wal-Mart’s competitors insist that there is now no significant price difference, and many Mexican consumers seem to have drawn the same conclusion. Opportunities: ? Scope of Diversification The convenience stores like corner stores, public markets, and street vendors business is relatively new in Mexico, there is a scope of diversification in future for Wal-Mart Mexico. Joint ventures Through a 50—50 joint venture with Office Depot and a 51—49 joint venture with Radio Shack, Grupo Gigante runs 98 Radio Shack stores throughout Mexico. Seems that Wal-Mart Mexico has an opportunity to follow such approaches to be more successful in future. ? Improved services Like Soriana, another competitor of Wal-Mart Mexico it can provides: discount specials, loyalty card programs, big-ticket item raffles and contests (e. g. , a BMW X5 automobile), outgoing employees, and mariachi band entertainment in order to appeal to female middle-class consumers. ? Foreign Penetration Grupo Gigante is successfully penetrating foreign markets. Wal-Mart Mexico can also follow the same like its competitor in order to enter in a new era. ? Strategic Plan Though Wal-Mart Mexico does not have a clear strategic plan, there is a scope to make a good one to do better in future. Threats: ? Aggressive Competitive moves of Competitors The competitors of Wal-Mart Mexico proved themselves as quick respondents. They took various desperate initiatives to response with Wal-Mart Mexico’s approaches. As result shows that The Comercial Mexicana (CM) has slipped to third in terms of market share in the Mexican retail sector. Grupo Gigante currently has 13 percent market share in the Mexican retail industry. Soriana’s sales have grown at an annual rate of 17 percent since 1994, and it has no debt. Some of their initiatives are: i. Appealing logos of competitors Chedraui’s corporate logo indicates â€Å"Chedraui: It Costs Less. † Its mission is simply â€Å"to provide the products that customers want at the best price. † ii. Foreign Penetration Grupo Gigante is successfully penetrating foreign markets. iii. Joint Ventures Through a 50—50 joint venture with Office Depot and a 51—49 joint venture with Radio Shack, Grupo Gigante runs 98 Radio Shack stores throughout Mexico. iv. Superior Services Soriana provides: discount specials, loyalty card programs, big-ticket item raffles and contests (e. g. a BMW X5 automobile), outgoing employees, and mariachi band entertainment in order to appeal to female middle-class consumers. v. Prices differences Comercial Mexicana and Soriana now aggressively publicize price differences with Wal-Mart and Aurrera. Wal-M art’s competitors insist that there is now no significant price difference and now many Mexican consumers seem to have drawn the same conclusion. ? ANTAD The Asociacion Nacional de Tiendas de Autoservicio y Departamentales (ANTAD) is the trade association that represents the retail industry in Mexico. Wal-Mart left ANTAD in October 2002 because the association’s new ethics code explicitly stated that members should not publish any type of promotions stating another member’s prices. Since Wal-Mart is not a member of ANTAD, all ANTAD members now publish their lower prices compared to Wal-Mart’s, when they have them. ? Sinergia Because of Wal-Mart’s huge purchasing power, three other retailers—Comercial Mexicana, Gigante, and Soriana—have formed a purchasing cooperative. This cooperative, Sinergia, first introduced in 2002 to compete against Wal-Mart. The cooperative was first thought of as a competitive-directed measure for purchasing imported goods, mainly electronics, where Wal-Mart has been enormously successful, but it now has been extended to such other types of merchandise as groceries and packaged food. ? Specialized Retailers The Mexican retail sector is fragmented; there are a wide variety of retail formats, many of which are informal. Because many shoppers in Mexico do not have access to automobiles, and may not have large refrigeration space to store perishables, very small independent grocery stores have thrived for decades throughout Mexico. This business is controlled by the two Mexican beer makers. Cerveceria Modelo, with the Extra stores and 7-Eleven; and Cerveceria, Cuauhtemoc Moctezuma, with Oxxo (about 3,OOO stores). The concept is beginning to include gas stations, and many small entrepreneurs have a limited regional presence. Major national chains exist in the department, pharmacy, and electronics store formats. ? Mexican Economy The Mexican economy is very volatile; the retail sector is subject to this volatility. Throughout the latter half of the 1990s, inflation and interest rates still annually averaged well over 10 percent. The peso continues in decline in value relative to the dollar. The economic volatility has a negative impact on consumers and business alike. Mexican consumers are very price sensitive because of the economic challenges that the country faces. ? Various Criticisms Despite extensive social responsibility activities and its record as the largest private employer in the country, the potential for criticism of its purchasing practices and supplier and employee relations, as well as its impact on local small businesses and communities, loom as a significant threat 7. PEST Analysis: PEST Analysis The purpose of PEST analysis is to analyze the external environment and identify the strategic opportunities and threats in the organizations operating environment that will affect to it pursues its mission. This analysis requires assessment of the environment in which the company op erates. It also analyzes the country or national environment of the country and takes into account the wider socio economic and macro–environment that may affect the company and the industry. Political Factors Government: Mexico is a federal republic—hence its official name Estados Unidos Mexicanos—operating under a centralized government. Governmental powers at the federal level are divided between executive, legislative, and judicial branches, but in political practice the executive, that is, the presidency, has had strong control over the legislative branch. Only in recent years has the legislative branch seen its power increase because of the strengthening of the multiparty system. The president is elected by popular vote for a six-year period and is both the chief of state and head of government. The president appoints cabinet members. The legislative branch is a bicameral National Congress consisting of the Chamber of Deputies and the Senate. The Chamber of Deputies has five hundred members, elected for three-year terms; the Senate has 128 members, elected for six-year terms. In the judicial branch the Supreme Court of Justice is the highest tribunal. The federation is made up of thirty-one states and the Federal District (the capital). Each state has a governor, who serves a six-year term, and a unicameral legislature. Both are elected by popular vote. Before 1997, the chief of the Federal District was appointed by the president, but has since been elected directly by popular vote. The Federal District also has an Assembly of Representatives. The local administrative level is the municipality, which is governed by a popularly elected mayor and a municipal council for three-year terms. Suffrage is universal and mandatory (but not enforced) for those over the age of eighteen. Leadership and Political Officials: The modern presidency stands in a long tradition of pre-Columbian rulers (tlatoani), Spanish colonial viceroys, and nineteenth century and revolutionary caudillos. The president holds great discretionary powers. Power and leadership are attained through the management of personal relations, which are ruled by principles of loyalty, trust, and reciprocity. These informal networks are interconnected in a pyramidal way and form the real centers of decision making. Vertical patron-client relations can be found in all segments of society. Interactions between politicians, union leaders, top bureaucrats, and ordinary people also take place through these networks. In recent years, academic credentials and technocratic knowledge have become more important than political and electoral experience. Besides being chief of state and head of government, the president has traditionally been the leader of the Institutional Revolutionary Party (PRI), which held power from 1929 to 2000. During much of the twentieth century, Mexico was a one-party democracy. The PRI emerged from the revolution and incorporated mass organizations of workers, peasants, and urban middle classes. Because of its particular origins, its longevity in power, and the influence of diverse interest groups, the PRI is difficult to classify ideologically. There are two other significant parties in Mexico. The conservative National Action Party (PAN) began enjoying electoral success at the state level in 1985. The social-democratic Party of the Democratic Revolution (PRD) emerged as a breakaway movement from the PRI in 1987 and began governing Mexico City in 1997. Both the PAN and the PRD aim at democratization, but the PRD also proposes a more equal distribution of wealth. The dominance of the PRI in federal elections was finally broken on 2 July 2000, when the candidate of the PAN won a stunning victory with 43 percent of the vote. Social Problems and Control: Both petty and organized crime increased in the 1990s. Muggings and burglaries, increasingly violent, became widespread. Drug-related violence constituted another serious cause of concern. Public security has thus become a key issue for ordinary citizens and the authorities. At the same time, the police and the judiciary system are widely believed to be ineffective and lack public credibility, partially due to unresolved high-profile political assassinations and corruption. This has led to incidents of people taking the law into their own hands. Paid neighborhood watches are common wherever people can afford them. Private security guards no longer patrol only at banks and government buildings but also at medium-sized offices and shops. In response, the government founded an additional police force in 1999, the National Preventive Police. Military Activity: Mexico has had civilian presidents since 1946 and has not been involved in international disputes in recent decades. The primary role of the military is the maintenance of internal order. The Ministry of National Defense (the army and air force) and the marines together comprised an armed force consisting of almost 240,000 members in 1998. Military expenditures have increased substantially in recent years and amounted to $2. 5 billion (U. S. ) in 1996, accounting for almost 1 percent of the GDP. In recent years the military has been involved in two serious problems: the armed uprising in the state of Chiapas and the struggle against drugs. Mexico is a major supplier of marijuana and heroin to the U. S. market and is the primary transshipment country for cocaine from South America. In 1998 the government spent $147 million (U. S. ) to combat drug trafficking, an amount that has increased spectacularly in recent years. Economic Factors Mexico City is a place to love and loathe, with everything one expects to find in the world's third-largest metropolis (only Tokyo and NYC are bigger). Mexico's best and worst ingredients are magi-mixed in this polluted and bustling megalopolis of music and noise, brown air and green parks, colonial palaces and skyscrapers, world-renowned museums and ever-spreading slums. Mexico has been progressing economically since the Mexican Civil War in 1939 when its economy was devastated. Today, tourism, industry and agriculture play a major role in the country’s economy. Mexico has seen the fastest economic development in Western Europe since the 1960’s. Tourism has played a major role since the 1960’s and in the last 40 years, tourism has been the fastest growing economic sector of the country’s GDP, helping to accelerate growth overall. Millions of visitors flock to Mexico and contribute almost $50 billion USD to Mexico’s economy each year. Agriculture contributes less than 5% of the nation’s GDP, which is high compared to other countries in Western Europe. Fishing is another important economic sector for Mexico. Industry contributes about 35% of Mexico’s GDP, but industry is still somewhat dependent on foreign investment. The most common products from this sector are motor vehicles, steel, textiles, chemicals and ships. Mexico is among the world's most open economies, but it is dependent on trade with the U. S. , which bought about 82% of its exports in 2007. Top U. S. xports to Mexico include electronic equipment, motor vehicle parts, and chemicals. Top Mexican exports to the U. S. include petro leum, cars, and electronic equipment. There is considerable intra-company trade. Trade disputes between the United States and Mexico are generally settled through direct negotiations between the two countries or via WTO or North American Free Trade Agreement (NAFTA) panels. The most significant areas of friction involve agricultural products such as livestock and sweeteners. To address the issues that affect these industries in a manner consistent with the principles of free trade, the United States and Mexico have established technical working groups. During the last three decades Mexico has grown with an annual average rate of 4%, even with the changes from an inward-looking developing economic strategy towards a more open economy with a far-reaching trade liberalization program. But the story at the sub-national level is different; these changes have modified the regional development strategies and consequently the growth paths of the 32 Mexican states. There is evidence of an uneven growth, greater disparities and important differences in welfare standards among regions. Socio-Cultural Factors Orientation: Mexicans make several cultural subdivisions within the nation. The most common one identifies northern, central, and south or south-eastern Mexico. The extensive and desertlike north was only sparsely populated until the middle of the twentieth century, except for some important cities such as Monterrey. It has traditionally housed only small indigenous populations and is generally regarded as a frontier culture. Densely populated central and western Mexico is the cradle of the nation. Highly developed Indian cultures populated this region in pre-Columbian times and it was also the heart of the colony of New Spain. Many prominent colonial cities are major urban and industrial centers today. Southern Mexico has a tropical or subtropical climate and some rain forest. It is characterized by a strong indigenous heritage and is also the poorest part of the country. Demography: The preliminary results of the 2000 population census calculated the total number of Mexicans as 97,361,711. In 1950, the total population amounted to approximately 25 million, with the figure reaching nearly 50 million in 1970. These numbers demonstrate the rapid rate of demographic growth that was so characteristic of Mexico during the second half of the twentieth century. The growth rate has slowed, but the population is still very young. The average life expectancy in 1999 was estimated at sixty-nine years for men and a little over seventy-five years for women; the infant mortality rate was almost twenty-five per one thousand. In the late twentieth century, emigration to the United States (mainly of the illegal variety) became a significant phenomenon. Linguistic Affiliation: Spoken by more than 95 percent of the population, Spanish is the official language of Mexico and was introduced through conquest and colonization. Mexican Spanish has its roots in the Spanish of Spain. In terms of grammar, syntax, and spelling there are no important differences between the two, but the pronunciation and sound are different. Certain words from the principal Indian language (Nahuatl) are incorporated into Mexican Spanish, especially in the domains of food and household. Some of these words have also been incorporated into other languages such as the English ‘chocolate' from the Nahuatl ‘chocolatl'. The national culture of Mexico boasts sixty-two indigenous languages. In 1995 at least 5. 5 million people spoke an indigenous language. The level of bilinguism, however, was high at 85 percent. Symbolism: The most important icon of Mexican national culture is the Virgin of Guadalupe, which illustrates the pervasive influence of Roman Catholicism in the national culture. She is viewed as the â€Å"mother† of all Mexicans. The dark-skinned Virgin is the Mexican version of the Virgin Mary and as such represents national identity as the product of the mixing of European and Meso-American religions and peoples. Her image was used in the struggle for independence against the Spanish. Mexicans have developed a particular sense of uniqueness, which is expressed in the popular saying como Mexico no hay dos (Mexico is second to none). This sense is also expressed in numerous elements of popular culture such as food and music. Ethnic Relations: Social policies aimed at the emancipation of Indian groups and the elimination of profound socioeconomic inequalities have been employed since the 1930s. Nevertheless, indigenous populations are among the poorest and most marginalized groups in Mexico. Prejudice among broad sectors of the population toward Indians persists. Elites in provincial towns in predominantly indigenous regions are often openly racist. This situation has strained ethnic relations and there has been a rise of indigenous movements in recent years that demand a new space in the national culture. Most significant has been the outbreak of armed indigenous rebellion in the state of Chiapas, where the Zapatista Army for National Liberation declared war on the government in January 1994. Food: Mexico possesses an extensive and sophisticated culinary culture, with a great variety of regional dishes. Three products constitute the heart of most Mexican dishes: corn, hot peppers (chiles), and beans, products that stem from pre-Columbian times. Corn is consumed in all possible forms: as a cooked or roasted corncob (elote), cooked grain of corn, porridge (atole), as wrapped and steamed dough with filling (tamal), but most importantly as a tortilla, a thin, round â€Å"pancake. Tortillas are made from corn dough and come in many sizes, although the traditional tortilla that accompanies most meals has a diameter of approximately six inches (15 centimeters). When tortillas are filled with meat or other ingredients they are called tacos or quesadillas, which are especially popular in cent ral Mexico. Much of the sophistication of Mexican cuisine comes from the use of more than one hundred different types of chiles, which range from the large and â€Å"sweet† chile ancho to the small and extremely hot chile habanero. Mexican Family Values: The family is at the centre of the social structure. Outside of the major cosmopolitan cities, families are still generally large. The extended family is as important as the nuclear family since it provides a sense of stability. Mexicans consider it their duty and responsibility to help family members. For example, the will help find employment or finance a house or other large purchase. Most Mexican families are extremely traditional, with the father as the head, the authority figure and the decision-maker. Mothers are greatly revered, but their role may be seen as secondary to that of their husband. Machismo: Machismo literally means ‘masculinity'. There are different outward behaviors to display machismo. For example, making remarks to women is a stereotypical sign of machismo and should not be seen as harassment. Mexican males generally believe that nothing must be allowed to tarnish their image as a man. Hierarchical Society: Mexican society and business are highly stratified and vertically structured. Mexicans emphasize hierarchical relationships. People respect authority and look to those above them for guidance and decision-making. Rank is important, and those above you in rank must always be treated with respect. This makes it important to know which person is in charge, and leads to an authoritarian approach to decision-making and problem- solving. Mexicans are very aware of how each individual fits into each hierarchy–be it family, friends or business. It would be disrespectful to break the chain of hierarchy. Technological Factors Most scientific research in Mexico is conducted in the public universities, mainly in the National Autonomous University and the Autonomous Metropolitan University, both in Mexico City. The National Polytechnic Institute, also in Mexico City, is the foremost research institute in engineering and technology. In recent years there has been government support for developing research centers outside the capital. There is also an extensive network of specialized autonomous research institutes that are dependent on state finances such as the National Institute of Astrophysics, Optics, and Electronics and the College of Mexico. Just over half of the almost $2 billion (U. S. ) of federal expenditures in science and technology in 1998 was channeled through the Ministry of Public Education and another 34 percent was channeled through the Ministry of Energy. The majority of the latter funds are spent on research into the exploitation of oil. Public policy concentrates on three areas: promotion of quality and quantity of scientific research, establishment of linkages between science and industry, and the promotion of technological innovation. The National Council of Science and Technology is the most important funding agency for the physical and social sciences. In 1998 it had a budget of $287 million (U. S. , with 47 percent allocated to individual postgraduate grants, 25 percent to scientific research and technological development, and 22 percent to the National System of Researchers (SNI), a program of financial incentives to productive academics. In 1998, more than sixty-five hundred researchers were in the SNI. Information on corporate funding of research and development is unavailable but is estimated to be very modest compared to Mexico's main trading partners. Mexico's future development will have to be progressively more based on the effective generation and utilization of knowledge, in order to meet economic, social and environmental challenges. The role of the scientific & technological communities in knowledge supply and in its effective integration in innovation systems cannot be overemphasized. If it wants to invest coherently in its own S&T assets, and assert its own intellectual and scientific capacities in the global knowledge society, Mexico must strive to go beyond the level of being an â€Å"economic province† of the much larger and US-dominated NAFTA. Overall investment levels in S&T remains low, although substantial investment in local human resources and infrastructure is required to ensure the absorption, adaptation and application of world-class technology. For instances, Mexico's investment on RTD is the lowest of the OECD 2 (0. 31% of GDP), compares unfavorably with 0. 38% for Turkey and represents only one-seventh of the OECD average. This figure can also be compared with those of China (0. 7%), India (0. 8%) or Brazil (at least 0. 8%). Human resource formation, a critical output of research projects, also remains disappointingly low. Mexico trains fewer Ph. D. per year than comparable countries, with 3 Ph. D. s per million inhabitants, compared to 5 in India, 6 in Brazil and 19 in South Korea. Moreover, there is a significant regional disparity in the allocation of scientific resources, with 75% of all doctoral degrees being awarded by institutions in the Mexico City area. 8. Problem Symptoms: From the above strategic analyses it could be interpreted that, Wal-Mart's current strong competitive position and its past rapid growth performance can't guarantee that the company will remain as the industry leader or maintain its strong business position in the future, since there are huge threats for the Walmart in the Mexico city. Competitors are now taking aggressive competitive moves and successfully imitating their strategies and diminishing the Wal-Mex advantage. 9. Current Strategies: Low Cost Provider Wal-Mart stores operate according to their ‘Everyday Low Price' philosophy. According their vision to contribute to improve the quality of life for Mexican families, they invest to be near and offer them the best products at Every Day Low Prices. Wal-Mart has emerged as the industry leader because it has been better at containing its costs which has allowed it to pass on the savings to its customers. It continues to improve upon its key business processes, managing them centrally and investing in them heavily for the long term payback. 10. Strategy Implementation The key features of Wal-Mart Mexico's approach to implementing the strategy is the approach to implementing the strategy by building solid working relationships with both suppliers and employees, being aware and taking notice of the most intricate details in store layouts and merchandising techniques, capitalizing on every cost saving opportunity, and creating a high performance spirit. This strategic formula is used to provide customers access to quality goods, to make these goods available when and where customers want them, to develop a cost structure that enables competitive pricing, and to build and maintain a reputation for absolute trustworthiness. Wal-Mart Mexico has been regarded as an industry leader in ‘testing, adapting, and applying a wide range of cutting-edge merchandising approaches Wal-Mart’s secret of having phenomenal track record in Mexico is that it has brought a set of superior management techniques and technologies. Press accounts have emphasized Wal-Mart’s low-price strategy, high-technology distribution network, and intense pressure on suppliers for discounts—â€Å"the same formula† as in the United States, Wal-Mart de Mexico also has connected with and replicated the U. S. Company’s huge, Automated distribution network. With NAFTA eliminating most trade barriers, Wal-Mex has direct links to U. S. -based distribution centers, but also has built twelve distribution centers within Mexico31. In addition to heightened efficiency, this multiplies Wal-Mex’s power as a purchaser, since Wal-Mart consolidates orders for all goods from outside the United States. Another contributor to Wal-Mex’s success is its use of a wide range of formats to appeal to varied classes of consumers, and particularly lower income consumers. Wal-Mart succeed to achieve economies of scale which reduces its costs of sales. With this system, goods are continuously delivered to stores within 48 hours and often without having to inventory them. Lower prices also eliminate the expense of frequent sales promotions and sales are more predictable. Cross docking gives the individual managers more control at the store level. Wal-Mart has been led from the top but run from the bottom, a strategy developed by Sam Walton and carried on by a small group of senior executives. . Although recent growth has led Wal-Mart to add more management layers, senior executives strive to maintain its unique culture. 11. Limits to the success story Mexican retailers have proven to be quick studies. All three of the main national autoservicio chains competing with Wal-Mart now offer some version of its â€Å"every day low prices† (EDLP) formula. Comercial Mexicana and Soriana now aggressively publicize price differences with Wal-Mart and Aurrera. In addition, some of the larger suppliers (especially soft drink and snack food manufacturers) have begun to print suggested prices on their packages, deterring retailers from charging more. Wal-Mart’s competitors insist that there is now no significant price difference, and many Mexican consumers seem to have drawn the same conclusion. Similarly, squeezing suppliers has become commonplace for large Mexican retailers. Executives from competing chains report that they have also begun to shift toward centralized, highly automated distribution and tracking systems, and to create detailed procedure manuals. The net result of Mexican chains’ emulation of Wal-Mart is that Wal-Mex’s share of sales among the top five Mexican retailers has remained steady for the last two years. Closer to home, Wal-Mart has struggled in northern Mexico, particularly the Monterrey area. Executives of another chain offered several analyses of Wal-Mart’s difficulties in the region. Soriana and the Texas-based HEB were already entrenched by the time Wal-Mart arrived. Wal-Mart made some early merchandising mistakes, opening no-frills Bodegas that had done well in central Mexico but left more sophisticated northern customers cold. Finally, as polarization between rich and poor increases in Mexico, Wal-Mart’s approach of selling to a broad middle faces structural limits. 12. Suggested Strategies ‘One little bad thing can wipe out lots of good things'. So every move in its business operation ought to be well thought-out and executed. Wal-Mart needs to address few areas in order to maintain or to capture an even stronger long term business position: Single-business strategy — Wal-Mart's success is mainly based on its concentration of a single-business strategy. This strategy has achieved enviable success over the last three decades without relying upon diversification to sustain its growth and competitive advantages. Given its current position in the industry, Wal-Mart may want to continue its single-business strategy and to push hard to maintain and increase market share. However, there is risk in this strategy, because concentration on a single-business strategy is similar to ‘putting all of a firm's eggs in one industry basket'. In other words, if the retail industry stagnates due to an economic downturn, Wal-Mart might have difficulty achieving past profit performance. Other than this some other suggested strategies could be: 1. Expanding into states where it had no stores; 2. Continuing to saturate its current markets with new stores; 3. Perfecting the Super center format to expand Wal-Mart's retailing reach into the grocery and supermarket arena 4. And last but not the least following the current low cost strategy through minimizing the operating cost and as well as the selling cost. 13. Conclusion The ever-changing market presents continuing challenges to retailers. First and foremost, retailers must recognize the strong implications of a ‘buyers' market' . Customers are being offered a wide choice of shopping experiences, but no one operation can capture them all. A closer look at Wal-Mart’s performance in Mexico indicates that it is neither invincible nor exceptionally exploitative. Imitation by competitors, income polarization, and economic hardship that steers consumers toward the informal sector will limit Wal-Mart de Mexico’s reach in the future. Hence, technology, demographics, consumer attitudes, and the advent of a global economy are all conspiring to rewrite the rules for success. Success in the next decade will depend upon the level of understanding retailers have about the new values, expectations, and needs of the customer. If Wal-Mart continues its customer-driven culture, it should remain a retail industrleader well into the next century. ———————– Ernesto Vega Chairman of the Board Eduardo Solorzano President and CEO Xavier del Rio Executive Vice Present, Real Estate Rafael Mature Executive Vice President and Chief Financial Officer Jose Angel Gallegos Executive Vice Present, Human Resources

Free Essays on Early Rome

Jan M. Mason 11: -11:50 MWF 1502 Early roman history Chapter 4 Review As Greece reached the height of its prosperity Rome which lye slightly to the west slowly began its rise as a civilization. The Greeks centered their culture around Art and literature whereas opposed to the Romans who settled their culture upon warfare and leadership. Without planning, would rise very steadily as an empire. Shortly before Christ most of the surrounding cities and nations were at peace under Rome's rule. Early Romans kept no written records. Their history is so mixed up with fables and myths that historians have difficulty distinguishing fact from fiction. Historians only know of two early works of Roman history, the history of Livy and the Roman Antiquities of Dionysius of Halicarnassus. The old legends say that Romulus founded the city in 753 BC. Romulus was a mythical person, but there is some evidence that the kings who are said to have followed him actually existed. Shortly before 600 BC several Etruscan princes from conquered Rome across the Tiber River. Taraquinius Priscus, the first of the Etruscan kings, drained the city’s marshes. Servius Tullius, the second Etruscan king, made a treaty with the Latin cities, which acknowledged Rome as the head of all Latium. The last king, Tarquinius Superbus, was a tyrant who opposed the people scorned religion. Under the rule of the Etruscans, Rome grew in importance and power. Great temples and impressive public works were constructed. Trade prospered and by the end of the 6th century BC Rome had become the largest and richest city in Italy. The old Latin aristocracy ended up rebelling against the Etruscan kings. Junius Brutus led the rebellion against Tarquinius Superbus in 509 BC. The young republic was now set out on its long career of almost constant warfare and conquest. At the time it did not seem destined to rule the civilized world. It was only a tiny city-state, much lik... Free Essays on Early Rome Free Essays on Early Rome Jan M. Mason 11: -11:50 MWF 1502 Early roman history Chapter 4 Review As Greece reached the height of its prosperity Rome which lye slightly to the west slowly began its rise as a civilization. The Greeks centered their culture around Art and literature whereas opposed to the Romans who settled their culture upon warfare and leadership. Without planning, would rise very steadily as an empire. Shortly before Christ most of the surrounding cities and nations were at peace under Rome's rule. Early Romans kept no written records. Their history is so mixed up with fables and myths that historians have difficulty distinguishing fact from fiction. Historians only know of two early works of Roman history, the history of Livy and the Roman Antiquities of Dionysius of Halicarnassus. The old legends say that Romulus founded the city in 753 BC. Romulus was a mythical person, but there is some evidence that the kings who are said to have followed him actually existed. Shortly before 600 BC several Etruscan princes from conquered Rome across the Tiber River. Taraquinius Priscus, the first of the Etruscan kings, drained the city’s marshes. Servius Tullius, the second Etruscan king, made a treaty with the Latin cities, which acknowledged Rome as the head of all Latium. The last king, Tarquinius Superbus, was a tyrant who opposed the people scorned religion. Under the rule of the Etruscans, Rome grew in importance and power. Great temples and impressive public works were constructed. Trade prospered and by the end of the 6th century BC Rome had become the largest and richest city in Italy. The old Latin aristocracy ended up rebelling against the Etruscan kings. Junius Brutus led the rebellion against Tarquinius Superbus in 509 BC. The young republic was now set out on its long career of almost constant warfare and conquest. At the time it did not seem destined to rule the civilized world. It was only a tiny city-state, much lik...

Free Essays on Amerigo Vespucci

Amerigo Vespucci Who was Amerigo Vespucci? This is a question I asked myself as I was researching the man credited with the discovery of the new world. Much information has been written about Christopher Columbus and very little about Amerigo Vespucci. To understand who Amerigo Vespucci was is to look at his life and times in that time period. This paper is an attempt to look at his history and try to get a better understanding of his life in the â€Å"Age of Discovery†. To have an understanding of Vespucci is to remember that to the day of his death, Columbus persisted in claiming he was in parts of Asia. This is part of the old world mentality and shows that Columbus never fully comprehended the achievements of his voyages. Two continents are named after Amerigo Vespucci. A great achievement for a man who many feel is a charlatan of geography. Did he discover America or was this honor bestowed on the wrong man? Amerigo Vespucci was born in Florence Italy on March 9, 1454, the first year of the new age of printed material. He was the third son of Ser Natasagio Vespucci and was named for his grandfather. â€Å"The Vespucci family was considered one of the most cultured and respected aristocratic families of Florence.†[Pohl 14]. His uncle, Giorgio Vespucci a scholar and collector of manuscripts influenced Amerigo. His uncle taught him the physical sciences, which included the teachings of Aristotle and Ptolemy. This included astronomy, cosmography and geography, which will mold Amerigo into a well-rounded person of the times. Amerigo acquired a love for Vergil, Dante, and Petrarch under the watchful eye of his uncle and became very skillful in mathematics and Latin. This education would also spark the investigation and inquiry into the voyages of Columbus in his search for the spice trade to the west. Amerigo’s father wanted his son to enter the commercial life of the mercantile career that was a custom for a son in those days. Base... Free Essays on Amerigo Vespucci Free Essays on Amerigo Vespucci Amerigo Vespucci Who was Amerigo Vespucci? This is a question I asked myself as I was researching the man credited with the discovery of the new world. Much information has been written about Christopher Columbus and very little about Amerigo Vespucci. To understand who Amerigo Vespucci was is to look at his life and times in that time period. This paper is an attempt to look at his history and try to get a better understanding of his life in the â€Å"Age of Discovery†. To have an understanding of Vespucci is to remember that to the day of his death, Columbus persisted in claiming he was in parts of Asia. This is part of the old world mentality and shows that Columbus never fully comprehended the achievements of his voyages. Two continents are named after Amerigo Vespucci. A great achievement for a man who many feel is a charlatan of geography. Did he discover America or was this honor bestowed on the wrong man? Amerigo Vespucci was born in Florence Italy on March 9, 1454, the first year of the new age of printed material. He was the third son of Ser Natasagio Vespucci and was named for his grandfather. â€Å"The Vespucci family was considered one of the most cultured and respected aristocratic families of Florence.†[Pohl 14]. His uncle, Giorgio Vespucci a scholar and collector of manuscripts influenced Amerigo. His uncle taught him the physical sciences, which included the teachings of Aristotle and Ptolemy. This included astronomy, cosmography and geography, which will mold Amerigo into a well-rounded person of the times. Amerigo acquired a love for Vergil, Dante, and Petrarch under the watchful eye of his uncle and became very skillful in mathematics and Latin. This education would also spark the investigation and inquiry into the voyages of Columbus in his search for the spice trade to the west. Amerigo’s father wanted his son to enter the commercial life of the mercantile career that was a custom for a son in those days. Base...