Assigment 1-1 Assignment Example | Topics and Well Written Essays - 500 words

Assigment 1-1 - Assignment Example There are many forms of popular culture and some of these include Films, fashion, Music, advertising, sports and magazines Popular culture production comprises of two levels and they include the encoding level and the decoding level, encoding occurs at the industrial level where cultural text are proposed and put together to produce popular culture. The decoding level refers to consumption of these cultural texts, the decoding level refers to the interpretation of these cultural text by the audience, when the audience comes i9nto contact with the cultural text he or she interprets it differently. Before the cultural text is released for consumption the producers must first take into consideration the interpretation of this cultural text, this include its effect, its influence, whether it is entertaining and whether it instructs of persuades, other complex interpretations include cognitive, emotional, ideology and behaviour consequences. Production of popular culture is drawn from myths, beliefs, rituals and heroic ideals. Popular culture is proposed by the mass media and given that the audience is large it plays a major role in the society, Antonio Gramsci introduced the concept of hegemony, hegemony is the power that is exercised by one social group to win the consent of the less dominant group without using force, it is an ideology of the dominant group achieved by engineering consensus by controlling cultural forms, he stated that the church promoted the acceptance of beliefs and culture that benefited the ruling class and therefore the survival of capitalism was as a result of acceptance. The understanding of popular culture is important in business, popular culture is produced in order to shape the perception of the masses, therefore when businesses are selling their products they will have to propose certain popular culture in order for the consumers to accept the product, this can only be done through the mass media whereby a certain cultural text is

Negative correlation Essay Example for Free

Negative correlation Essay However, the weakness of this negative correlation raises the notion that the results have no correlation at all. To investigate this possibility I will first try to find how just how weak this negative correlation is. As you can see from graph 2 the different result values for each temperature vary quite a lot from the average. This undermines the accuracy of the results, as the greater the range of the results from the average the less likely the results and therefore the average is accurate. The range of the different results for each temperatures and the standard deviation from the mean can indicate how accurate the results are. This is because, as I have explained earlier the range and the deviation of the results from the mean determines how accurate the results are. Graphs 3 and 4 show how the standard deviation and the range of the results change over the temperature range used in the experiment. In graph 3 the range was calculated by subtracting the lowest value from the highest, and in graph 4 the standard deviation was calculated using the formula; ? ((? (x -? x)/n) (where x = the values and n = the number of values). Graph 3 and 4 show that in general the accuracy of the result increases with an increase in the temperature, and that at low temperatures the results are not very accurate at all. I can conclude this as, the bigger the standard deviation or range the less accurate the results are. In both graphs 3 and 4 the general pattern shows high range and high standard deviation at low temperature (high inaccuracy) and low range and low standard deviation at high temperatures (low inaccuracy). This therefore contradicts my earlier theory that the inaccuracy would increase with an increase in the temperature, however it must be taken into account that the results are very inaccurate already. Because of this inaccuracy the results may have had a certain random element in them, evidence for this is in the fact that the results are very inaccurate (they have a large range and a large standard deviation), and that the inaccuracy varies a lot from its trend line (see graphs 3 and 4). So in conclusion, I think that the results of this experiment were not accurate at all and not accurate enough to draw any sound conclusions that are backed with scientific theory/knowledge. In fact I think there was a certain random element in the results that contributed to the inaccuracy of the results. Because of the inaccuracy of the results, I feel that it is not a good idea to use these results as a basis for any conclusions, especially as these conclusions cannot be backed up by any scientific knowledge. Therefore with only the results I have at this moment, I have to conclude that the resistance is directly proportional to the temperature. I can conclude this because I have decided to use scientific knowledge as a basis for the answer to this correlation. I have done this because the results I have are too inaccurate to use for making any judgements on this correlation. Evaluation: So far I do not think this investigation has gone very well because of the very inaccurate results, however with the large amount of scientific knowledge I have been able to come to a conclusion to this investigation that has a lot of backing. My prediction was of corse correct. The reason to this inaccuracy in the results is, in my opinion due to the large amount of contacts and wiring used in this method. Some components react to temperature by changing the resistance in different ways, most components react in a directly proportional linear way, but some components like a filament lamp or diode react in a directly proportional but logarithmic way and/or only at certain voltages. It is quite likely that in the multi-meters there were some of these components that react in a logarithmic way and at certain voltages. This means that the current flowing through the circuit would be affected out of proportion by these components, therefore affecting the resistance. Although the affect of these components would have been neutralised if one multi-meter were used, it might not be neutralised if two multi-meters were used as they were in this method. The large amount of wire used in this experiment has meant the current could have been easily affected by other variables that I did not take into account, like a change in the room temperature, or if I accidentally spilt some water onto the wires. Also like the different depths used in the water bath, or a magnetic flux from the high voltage used in the kettle. Due to the large amount of outside variables that can affect the large amounts of wire used, I have to conclude that the large amounts of wire used in this method was the main cause of the inaccuracy of its results. I cannot estimate how accurate my results are because I have no basis on what the true values are, only that the correlation is directly proportional. If I were to repeat this investigation, I would change the method so that less wire was used and only one multi-meter was used, I would also change the method so as to stop any of the variables mentioned in this evaluation affecting the results. If possible I would try and use a more accurate multi-meter in my experiment. A more accurate multi-meter will give me more accurate results; the reduced amount of wire to be used will reduce the effect of outside variables and make the results more reliable. I dont think I need to do any extra research, as I have more than enough scientific backing for any conclusions I will have to make if I repeat this investigation.

Sensation, Emotion, and Thought :: Self Identity Growth Essays

Sensation, Emotion, and Thought Many times in life people get stuck with the same points of view and do not see any other way to see answers are points of view. Therefore they do not see answers that are in front of them and can not change. Seeing other people’s points of view and expanding on them is how people grow and can widen what there beliefs are. In an introduction book for philosophy, â€Å"Wisdom Without Answers†, the writers give a clear understanding of how philosophy can answer questions for people: â€Å"Philosophy shows us how to identify the limitations of our own points of view. But it does more: It teaches us how to get outside ourselves-how to cross the barriers of our familiar framework of answers† (Kolak & Martin 3). We only know a small part of life but by just thinking that are own thoughts and beliefs are right and that we will not look at the other side and stay to the familiar. The only way to grow and really be â€Å"smart† about life is to see that there is m uch we do not know. There are three combined parts of the self that makes experiences: Sensation, emotion, and our own thoughts. You can not have one without the other two. When you touch something with your finger there is pressure on the skin and from that a thought comes from you brain which also make an emotion about the action come out. The question the author is giving the readers in â€Å"Wisdom Without Answers† is they really connected together. If you have a thought do you have emotion connected to it and maybe a sensation too. Your finger can think for itself so something has to be given information to you so that you know what you are doing or feeling. This is a dilemma because they all circular around each other so they have to be connected. We don’t want are thoughts that make up some of an experience to be false. In chapter eight, the idea of experience is explored. The orientation is that sensation, emotion and thought are all components of any experience. The â€Å"disorientation† begins when the author explains that there is a difference between what we experience and the interpretation of that experience. Any sensation is based on our minds interpretation of it.

Ways to Fix Run Ons Fragments

Understanding sentence structure helps in identifying and correcting run-on sentences and sentence fragments. A computer’s spell checker does not typically catch these common mistakes, so do not rely on the spell checker to correct grammar for you. Be sure to carefully proofread all assignments for these issues. This handout defines various sentence structures, presents sample sentences, and provides strategies for correcting run-ons, comma splices, and fragments. Practice activities are included to help build skills in sentence clarity and variety. First, consider the parts of a complete sentence:Complete Sentence (Independent Clause) Table of Contents Part I: Run-ons †¢ Strategies for avoiding run-ons (comma splices and fused sentences) (p. 2-3) †¢ Sample sentences with explanations, practice activities (with answer key) (p. 4-7) Part II: Fragments †¢ Strategies for avoiding sentence fragments (p. 8-11) †¢ Sample sentences with explanations, practice acti vities (with answer key) (p. 12-13) Part I: Run-On Sentences Definition: A run-on sentence either has too many independent clauses or two independent clauses that are not linked correctly.Two types of run-on sentences are fused sentences and comma splices. Strategies for Correcting Fused Sentences: 1. Create a compound sentence. Inserting a coordinating conjunction (for, and, nor, but, or, yet, so) plus a comma correctly links these independent clauses. This sentence structure is called a compound sentence. Correct compound sentence: She writes the music, and he plays the guitar. independent clause + comma + coordinating conjunction + independent clause 2. Separate independent clauses with periods and capitalization, creating simple sentences.Correct sentences: She writes the music. He plays the guitar. 3. Insert a semi-colon. Semi-colons should be used sparingly and to connect independent clauses whose meanings are closely related. Correct sentence: She writes the music for Coldpla y; he plays the guitar for that band. * Note: When more details are added to the above independent clauses, the meanings become much more closely related. Thus, a semi-colon can separate these clauses. 4. Link ideas using a subordinate clause (dependent clause). Correct Sentence: While she writes the music for Coldplay, he plays the guitar for that band. ubordinate clause + comma + independent clause ‘While’ is a subordinating conjunction, which makes ‘while she writes music for Coldplay,’ a dependent clause. That is, the clause depends on the rest of the sentence for the overall meaning to be clear. A dependent clause cannot stand alone. Use a comma to separate a dependent clause that appears before an independent clause. *Note: A sentence constructed of one independent clause and one or more dependent (or subordinate) clauses is called a complex sentence. Strategies for Correcting Comma Splices: . Insert a coordinating conjunction to create a compound sen tence. Correct Sentences: She writes the music for Coldplay, but he plays the guitar for that band. She writes the music for Coldplay, and he plays the guitar for that band. Remember, the coordinating conjunction appears after the comma. *Note: Again, consider meaning before joining sentences. If the sentences are not closely connected, it may be best to keep them separate. Think about these two independent clauses: Today I was late for class. I will have a burrito for dinner tonight.Since these ideas are distinct, keep the sentences separate. 2. Insert a semi-colon. Correct Sentence: She writes the music for Coldplay; he plays the guitar for that band. Again, to join two independent clauses with a semi-colon, be sure that their meanings are closely connected. The Tutoring Center has a separate handout on semi-colon usage. * See pages 4-7 for further explanation of these strategies as well as sample sentences and practice activities. Run-On Sentences: Examples and Explanations Examp les: It was raining Naomi could not find her umbrella. (Fused)It was raining, Naomi could not find her umbrella. (Comma Splice) How to fix these run-ons: Step 1: Identify the independent clauses. It was raining + Naomi could not find her umbrella. subject + verb phrase subject + verb phrase (direct object) Step 2: Use one of the below strategies. 1. Period + Capital Letter (Separate Sentences) It was raining. Naomi could not find her umbrella. S + V. S +V 2. Comma + Coordinating Conjunction (Compound Sentence) It was raining, and Naomi could not find her umbrella. S + V , and S + V . Semi-Colon It was raining; Naomi could not find her umbrella. S + V ; S + V 4. Subordinating Conjunction + Comma (Complex Sentence) Though it was raining, Naomi could not find her umbrella. dependent clause, S + V *Note: Use the Tutoring Center’s Transitions/Grammar Aid Handout to help identify coordinating and subordinating conjunctions. Ask a tutor if you are unclear about the meanings of these conjunctions or in which situations to use them. Practice: Avoiding Run-Ons Correct the following run-on sentences by using the strategies previously discussed. 1.I moved to the United States when I was young it was easy to learn English, my parents were already here, they knew English already. ___________________________________________________________________________________________________________________________________________________________________________ 2. Juan and David recognized each other they had been in the first grade together. ___________________________________________________________________________________________________________________________________________________________________________ 3. Her car would not start she was late for class. ____________________________________________________________________________ ______________________________________________________________________________________________ 4. The parents ate the baby slept in her stroller. ___________________________________________________________________________________________________________________________________________________________________________ 5. Eli wants to quit smoking this habit is too expensive. ___________________________________________________________________________________________________________________________________________________________________________Avoiding Run-Ons: Answer Key and Explanations 1. I moved to the United States when I was young it was easy to learn English, my parents were already here, they knew English. Strategy 1: Period + Capital Letter (Separate Sentences) I moved to the United States when I was young. S + V (prepositional phrase) (dependent clause) It was easy to learn English. S + V (adverb phrase) My parents were already here. They knew English. S + V (adverb phrase). S + V (direct object)Strategy 2: Coordinating Conjunction + Comma (Compound Sentence) I moved to the United States when I was young, and it was e asy to learn English. S + V , and S + V My parents were already here, so they knew English. S + V , so S + V Strategy 3: Semi-Colon I moved to the United States when I was young; it was easy to learn English. S + V ; S + V My parents were already here; they knew English.S + V ; S + V Strategy 4: Subordination (Complex Sentence) Because I moved to the United States when I was young, it was easy to learn English. (dependent clause) + , S + V Because is a subordinating conjunction that makes the first clause dependent on the second clause. Do not use a coordinating conjunction to link a dependent clause and an independent clause; rather, use only a comma. For example: Since my parents were already here, they knew English. Note: This run-on sentence can also be corrected using a combination of the above strategies. I moved to the United States when I was young, so it was easy to learn English. (compound sentence) Because my parents were already here, they knew English. (complex sentenc e) More suggested answers: 2. Juan and David recognized each other; they had been in the first grade together. S + V ; S + V (prepositional phrase) Juan and David recognized each other, for they had been in the first grade together.S + V , for S + V Since they had been in the first grade together, Juan and David recognized each other. Since + dependent clause , S + V Juan and David recognized each other. They had been in the first grade together. S + V. S + V Now it’s starting to make sense: 3. Her car would not start, so she was late for class. Her car would not start, and she was late for class. Her car would not start. She was late for class. Because her car would not start, she was late for class.Her car would not start; she was late for class. (correct, but not the best choice) 4. While the parents ate, the baby slept in her stroller. The parents ate as the baby slept in her stroller. The parents ate. The baby slept in her stroller. The parents ate, and the baby slept in her stroller. The parents ate; the baby slept in her stroller. 5. Eli wants to quit smoking. This habit is too expensive. Eli wants to quit smoking; this habit is too expensive. Eli wants to quit smoking, for this habit is too expensive. Since this habit is too expensive, Eli wants to quit smoking.A more logical, concise construction using subordination would read as follows: Since smoking is too expensive, Eli wants to quit. Part II: Sentence Fragments There are several types of fragments. See pages 9-11 for detailed explanations and techniques for correcting fragments. Pages 12-13 include practice activities and an answer key. Types of Fragments Each example below illustrates a different type of sentence fragment. Any fragment can be corrected by linking the fragment to an independent clause—one which comes before or after it and which makes sense within the paragraph.Examples of Subordinating Conjunctions and Relative Pronouns |after |how |unless |whichever | |although |i f |until |while | |as |in order that/to |what |whether | |as if |once whatever |who | |as soon as |rather than |when |whoever | |as though |since |whenever |whom | |because |so that |where |whomever | |before |than |whereas |whose | |even if |that |wherever |why | |even though |though |which | | Strategies for correcting subordinating conjunction and relative pronoun fragments: 1. Connect the fragment to the sentence that comes before or after it. Correct Sentences: While I was waiting for my car to be repaired, I read a magazine. dependent clause , S + V Notice the use of the comma after the dependent clause (because the dependent clause falls at the beginning of the sentence).I had to ride the bus while I was waiting for my car to be repaired. S + V dependent phrase *Note: When a dependent (subordinate) clause comes after the independent clause, it is usually unnecessary to place a comma after that independent clause. Whether or not a comma is needed depends on the meaning of the sentence. 2. Remove the subordinating conjunction/relative pronoun. Correct sentence: I was waiting for my car to be repaired. S + V Strategies for correcting â€Å"ing† fragments: 1. Connect the fragment to the sentence that comes before or after it. Correct sentences: Her expertise being in chemistry and biology, she was not hired as an English instructor. ependent –ing phrase , S + V She designed the new science exhibit, her expertise being in chemistry and biology. S + V , dependent –ing phrase 2. Correct the verb form. Correct sentences: Her expertise is in chemistry and biology. Her expertise was in chemistry and biology. *Note: Sometimes you will also need to add a subject and correct the verb form. See the next page for an example. . Strategies for correcting missing subject fragments: 1. Connect the fragment to the sentence that comes before or after it. Correct Sentences: Security set off the alarm, evacuated the building, and closed ll the entrances. In the above sentence, it is clear that the subject, the doer of the actions, is security. 2. Add the missing subject. Correct Sentence: Security set off the alarm and evacuated the building. Next, they closed all the entrances. *Note: In this sentence, the pronoun ‘they’ renames the subject, security. Transition Words Indicating a List or Examples |also |especially |except |for instance |including | |in addition |furthermore |for example |such as |next |Strategies for correcting â€Å"extra information† fragments: 1. Connect the fragment to the sentence that comes before or after it. Correct sentence: Many Americans take basic amenities for granted, for example, clean water and electricity. S + V , dependent phrase 2. Add the missing subject and verb. Correct sentence: For example, basic amenities include clean water and electricity. transitional phrase, S + V Practice: Avoiding Fragments Correct these sentences using the strategies previously discussed. 1. The dog loved his new toys. Especially the ones that squeaked. __________________________________________________________________________________________________________________________________________________________________________ 2. Maggie remembered her childhood. Her mother making pancakes for dinner in the small apartment. ___________________________________________________________________________________________________________________________________________________________________________ 3. She decided to meet her new friend in a public place. That they had arranged over e-mail. ___________________________________________________________________________________________________________________________________________________________________________ 4. Because she met him on MySpace. She thought it was a good idea to be cautious. _____________________________________________________________________________________________________________________________________________________ _____________________ 5. I cannot wait until President’s Day. Finally, a day off. ___________________________________________________________________________________________________________________________________________________________ ________________ Avoiding Fragments: Answers and Explanations 1. The dog loved his new toys, especially the ones that squeaked. S + V , dependent clause The dog loved his new toys. He especially loved the ones that squeaked. S + V. S + V 2.Maggie remembered her childhood, especially her mother making pancakes for dinner in the S + V, dependent clause small apartment. Maggie remembered her childhood. Her mother made pancakes in the small apartment. S + V. S + V (correct form) 3. She decided to meet her new friend in a public place that they had arranged over email. S + V dependent clause She decided to meet her new friend in a public place. They had arranged a place over email. S + V. S + V 4. Because she met him on MySpace, she thought it was a good idea to be cautious. dependent clause, S + V She thought it was a good idea to be cautious; she met him on MySpace.S + V ; S+ V 5. I cannot wait until President’s Day, finally, a day off. S +V, dependent phrase I cannot wait until President’s Day. Finally, we have a day off. S + V. S + V ———————– Avoiding Run-On Sentences, Comma Splices, and Fragments A complete sentence has (minimally) two parts, a subject and a verb. A sentence must also express a complete thought. Such a phrase consisting of a subject and a verb (with complete meaning) is also called an independent clause. Example: He writes music. This sentence has a subject and verb.This sentence also expresses a complete thought, so its meaning is clear. he=subject (S) writes=verb (V) music=direct object (DO) 1. Fused Sentence Definition: A fused sentence consists of two independent clauses, but both the comma and coordinating conjunction are missing . Example of a Fused Sentence: She writes the music he plays the guitar. ‘She writes the music’ and ‘he plays the guitar’ are each independent clauses, containing a subject and a verb and expressing complete thoughts. ‘He plays the guitar’ is an independent clause that can stand alone because it expresses a complete thought and is grammatically correct. he=subject (S)plays=verb (V)guitar=direct object (DO)However, in the above example, the independent clause, ‘She writes the music,’ incorrectly runs into a second independent clause, ‘he plays the guitar. ’ 2. Comma Splice Definition: A comma splice consists of two or more independent clauses that follow one another and are incorrectly linked together only with a comma (or commas). The coordinating conjunction is missing. Example of a Comma Splice: She writes the music, he plays the guitar. In the above sentence, a comma separates the two independent clauses, but a coor dinating conjunction is also necessary. 1. Subordinating Conjunction and Relative Pronoun Fragments Example: While I was waiting for my car to be repaired. How to find this type of fragment:When proofreading a paper, pay attention to subordinating conjunctions and relative pronouns. These words (see box below) turn subjects and verbs into dependent clauses. Identifying proper usage of dependent clauses can help in recognizing fragments. 2. â€Å"-ing† Fragments Example: Her expertise being in chemistry and biology. How to find an â€Å"-ing† fragment: If the only verb in the sentence ends in ‘–ing’ and does not have a helping verb, you have a fragment. While the word ‘being’ is a verb, in the above sentence, it is not properly formed. In the below sentence, notice that the ‘-ing’ verb has a helping verb: I was walking down the street when it started raining. (This sentence is correct. ‘Was’ functions as the hel ping verb. )When added to a verb, ‘-ing’ sometimes makes a verb do the job of a noun: Walking outdoors is my favorite form of exercise. (In this sentence, ‘walking’ is a noun that functions as the subject. ‘Is’ functions as the main verb. ) 3. Missing Subject Fragments Example: Security set off the alarm and evacuated the building. Next, closed all the entrances. How to find this type of fragment: The second phrase above (noted in bold) is a fragment because there is no subject. ‘Entrances’ is a noun, but it is the object of the verb ‘closed. ’ Who or what is closing the entrances is unknown. That is, the subject of the sentence is missing. 4. â€Å"Extra Information† Fragments Example: For instance, clean water and electricity. How to find and fix this type of fragment:

Body Shop

Anita Roddick, OBE, and The body Shop International Plc FEDBACK FOR QUESTION WEEK 3 for week commencing 19. 03. 12 1. Evaluate the Financial Position of the Company (at the time of the case study) and comment upon the apparent success or otherwise of its strategy, based on your findings. Introduction We may consider a company’s strategy from a number of aspects, but generally we are interested in answering the question: How well is the company’s present strategy working? To understand and analyse success in terms of strategy, we must begin by understanding what the strategy is.From Thompson, Strickland and Gamble (2012) we might examine the following areas * Identify competitive approach * Low-cost leadership? * Differentiation? * Best-cost provider? * Focus on a particular market niche? * Determine competitive scope * Broad or narrow geographic market coverage? * In how many stages of industry’s production/distribution chain does the company operate? * Examine r ecent strategic moves * Identify functional strategies We can also assess performance in terms of both quantitative measures (financial and strategic achievements against budget, plans, etc. and look to see if its performance is above or below the industry average. We can also look at qualitative measures (such as brand awareness /status, consumer attitudes to the company, and so on). There is only limited information in the case regarding some of these areas, but I will attempt to look first at the strategy followed by Body Shop, then at the financial ratios based on its figures, non-financial measures and then finally draw conclusions that attempt to answer the question.Strategy being followed by Body Shop Porter’s Generic strategies, as amended by Hitt, Ireland and Hoskisson (2002) are shown below. If we consider first, their competitive approach, there is no evidence in the case study that Body Shop has any concern about Cost Leadership, and in fact we know from the Tradi ng Charter and Mission (case, page 539) that the firm pays above market rates for goods it buys from suppliers in poorer countries, where it can, which is not something a cost-leadership company would normally do.We also have plentiful evidence from the case that Body Shop occupies a unique position in the cosmetics retailing industry, as it takes a highly principled stance on many issues, as indicated in my earlier answer to question 2, and shown in the firm’s mission statement, which mentions many areas of Corporate Social Responsibility – ecological and ‘green’ issues, human and civil rights, against animal testing of cosmetics, and so on. The company must therefore be following a Differentiation strategy.The question then is whether this is broad or narrow in focus, as suggested by Thompson, Strickland and Gamble, as mentioned earlier – their competitive scope. The decision here rests on how one defines the market: Body Shop is a retailer that a lso manufactures, within the cosmetics industry. It is a specialist retailer, not selling anything apart from its own products and is not configured and structured like bigger retailers such as – in the UK – House of Fraser, Debenhams, Boots, Marks and Spencer or Tesco, all of whom retail cosmetics amongst many other product ranges.I therefore conclude that Body Shop is a Focused Differentiator. Firms that seek differentiation, according to Porter, seek higher profit margins through finding something unique about themselves, which consumers value more than the offerings of competitors. In the case of Body Shop we might see this as being their highly visible and principled ethical stance, and the range of products which they sell, being organic, fair trade and ethically produced and traded, so their competitive approach and scope is Focus Differentiation, as such a stance is not likely to appeal to all shoppers.Similarly, some, at least would be indifferent to the organ ic/fair trade/human rights etc appeal of the stores and others might consider the range of products to be relatively limited and not of sufficiently high brand status, as the products in Body Shop stores fit in price and value terms between the low-cost products offered in stores like Sainsbury and Tesco, and the high-end cosmetics of Helena Rubenstein, Elizabeth Arden etc, sold via stores such as House of Fraser and Debenhams.In terms of recent strategic moves, we can see from the case only that the firm has expanded reasonably quickly, via franchising mostly; from the case it seems that about 80% of stores are franchised out. In terms of functional strategies, we can see the small amount of vertical integration mentioned in the case, whereby the largest part of the business is involved in running the owned shops and franchise, and a small amount of manufacturing in terms of soap products, etc.It is important to note that for the next section, examining Body Shop’s finances, the franchising approach is important, as it has a major impact on revenues – however successful a store is, the majority of revenues will go to the franchisee, not the Body Shop. According to Cavusgil, Knight and Reisenberger (Called CKR in future – from p 246), the initial revenue to Body Shop will be from the franchising fee, but then they will get regular revenues from product sales to the stores and from the royalty fees. This is likely to amount to about 30% of revenue in total (25% from product charges and 5% royalty fee).Body Shop’s Financial Position We are asked to evaluate the firm’s financial position. Briefly, Body shop is a retailer that sells in around 45 countries and uses a mixed mode of Franchising and FDI though investing in owned retail stores. So far as I can tell, about 80% of the 1,208 stores are franchised. Franchising is a particular form of retail expansion, where, according to Cavusgil, Knight and Reisenberger, an entrepreneur buys into an established brand system. The best known franchise is probably McDonalds, but Body Shop is a medium-sized international franchise, given its range of countries and umber of stores (much smaller than McDonalds, which has over 33,000 restaurants worldwide, and annual revenues (2010) of about ? 15 billion. I will come back to this more modern data later in my answer. When examining the financial basis of a business, there are – according to Thompson Strickland and Gamble – five areas which can be studied – 1. Profitability (the profits made by the business on its activities), 2. Liquidity (the ability of a business to pay its debts [creditors] and collect money from customers [debtors]), 3.Leverage (the amount of money invested in the business by shareholder – v – the amounts borrowed from financial institutions, to fund the business and invest in its future), 4. Business Activities (amounts of stock held in the business, how quickly it t urns over, and so on), and 5. Stockholder Interests (the amount of money paid in dividends, value changes in share prices, etc. ) * According to the lecture notes in week 10, Ratio analysis can be used to: * Compare the performance of a company over a period of time. Compare the performance of your own company with that of one of your competitors or the industry sector. * Detect weaknesses in aspects of your operations, e. g. debt management, stock levels etc. which you can improve. * Assess a company's exposure to short term risk through its liquidity (ability to meet debts). * Determine a company's profitability. Much of this data is useful only when considered against the performance of other firms and we have no data from the case to illustrate any of this. However, I have approached the financial situation analysis in two ways.First I look at the basic ratios for the firm and comment on them; second, I have compared the latest data for Body shop, with a number of its contempora ries, both in retail and in franchising, in order to make some valid comparisons. Profitability the commonest ratios are Profit before Interest payments on loans, Taxation, Depreciation and other fixed costs like mortgage payments. Often referred to as operating profit or EBITDA; for Body Shop in 1995 I have calculated this as Profit for the year/turnover*100 (from figures, case pp553/4), this is 33. 5/219. 7*100 = 15. 24%.Calculated in the same way, net profit would be 21. 8/219. 7*100 = 9. 9%. Liquidity the commonest ratio here would be the Current Ratio, which measures balance of current assets against current liabilities, which for Body Shop yields a ratio of 2. 29:1. Similarly the Quick Ratio, which is a similar calculation but ignoring inventory or stock, would yield a ratio of 0. 83:1. This indicates that the business is not perfectly liquid and would struggle a little to pay off all of its debts (a ratio of 1:1 indicating perfection here) – but this is not seen as a p roblem when the ratio is over 0. . Without any share price data it is impossible to calculate meaningful ratios for stockholders, so we can only note that the dividend paid to shareholder appears high, at ? 11. 50 per share for 1995 (case, p. 554). A major measure for stockholders, however, might be Return on Shareholders equity, as this is the best comparison to the return that the investor might make if he or she had invested their money in a bank Savings account. For Body Shop I calculate this as: Net profit/Total Equity*100 or 21. /110. 6*100 = 19. 7%. However, these numbers by themselves, tell us only that the business is profitable and is a sound going concern, with a decent profit margin and a fair coverage against its debts. For shareholder it is making a very good return on invested amounts of nearly 20% – at a time when savings accounts would maybe have yielded 6%) and is paying a handsome dividend. We might conclude that the business is financially sound, therefore .Moreover, using Franchising as a way to expand internationally is a relatively low cost and low-risk method, according to CKR, as the franchisee pays for the initial setting up of the store; the stock; staff recruitment and training; and advertising and promotion. They also pay – in this case – to Body Shop PLC for the stock they must subsequently sell in their store and the franchise royalties on turnover. This is a very effective business model and allows a strategy of international expansion to take place reasonably quickly and at reasonably low risk. Conclusions General comments about the success of the strategy and body Shop’s financesBased on this evidence, it is possible to state that Body Shop’s financial position is clearly comfortable and they appear to have a sensible strategy for international expansion, which is sustainable, in that they have transferred the majority of risk for their expansion to the franchisee. The group should be able to comfortably expand its foreign operations in this manner, for a number of years. However, at the moment, as I indicated in my answer to question 1, the company at present has a very simple structure and this may have to change as the number of stores, and the number of countries in which they operate, continues to grow.We also know, from my answer to question 2, that in terms of what we might call non-financial measures, Body Shop is highly regarded as an excellent example of an Ethical and Corporately Responsible company. We might therefore conclude that both the financial and non-financial evidence as presented supports the view that B0dy Shop is a well-run business and has a sensible strategy that will allow it to expand. Comments updating Body Shop’s Position Without comparative data, however, it is impossible to make much more of an analysis or draw conclusions from the business.We know that the case ends in 1995/6 and that about ten years after this, the firm was sold t o L’Oreal, a very large, French-based cosmetics producer. This caused some controversy as it was not clear if L’Oreal still tested products on animals (they do) and if so, how such a principled owner as Anita Roddick could sell out to a large corporate that seemed to embody many of the things she had supposedly dedicated both her personal and professional life to fighting. However, the sale went ahead and the business has been part of the French company now for 7 years.Today (2011) it has expanded to 2,748 stores, of which 1,639 (59%) are franchised. This is interesting as it tells us that the proportion of franchised stores has fallen since 1995, even though the number of stores has more than doubled in 16 years. This would indicate a change in strategy, but it is not clear whether this was pre or post the L’Oreal takeover. Finally, in order to look at Body Shop in comparative terms, I prepared data for them and a number of rivals, which is presented below. | | Revenue ? billion| EBITDA ? million| EBITDA %| Net profit? million| Net Profit %| House of Fraser| | 0. 596| 36. 8| 6. 7| 8. 2| 1. 3| Debenhams| | 2. 112| 189. 7| 8. 98| 97. 0| 4. 6| Boots| | 23. 330| 1,444. 0| 6. 17| 221. 0| 0. 9| Marks and Spencer| | 9. 50| 852. 0| 9. 00| 523. 0| 5. 5| Tesco| | 60. 93| 3,810. 0| 6. 25| 2,670. 0| 4. 4| Body Shop| | 1. 01| 144. 4| 14. 2| 41. 2| 4. 1| McDonalds| | 15. 06| 4,670. 6| 31. 0| 3,093. 1| 20. 5| I chose data for several large retailers, like Tesco and M&S who sell at least comparative products to Body Shop, House of Fraser and Debenhams because they sell higher level products and McDonalds as the most obvious franchiser example.Regarding the large retailers, although Body Shop remains a small business, internationally speaking (just about ? 1 billion in turnover), its net profit margins are at the top end of those of its retailing rivals, but fall well short of its main franchise rival. My conclusion which I made at the end of question 2â €™s answer – that I am sure the impact of the ethical stance affects the performance of the company – is thus thrown into some doubt, but it would need much more research into the comparative financial data in order to prove or disprove this view.