Breaking Norms of Society

â€Å"Norms are rules which specify appropriate behavior in a given range of social contexts. A norm either prescribes a given type of behavior, or forbids it† (Giddens 1997, p. 583). The importance of norms in our society is not negotiable. Those who follow the norms of our society have better chances to find stable social position, and will hardly lose it. Those who do not treat social norms properly or neglect them risk being rejected by the society within which they exist. However, as we live in extremely diverse society, breaking the norms of society does not always lead to uniformly negative reactions.My experiment has proved this assumption. It is not rare that informal (folkway) norms go against the formal (legal) norms of the specific society. For example, many nations still praise the principles of vengeance against the legal ban on murder. In his book, Newman spoke about the military obedience and the legal limits of warfare in the hands of a military. For a militar y during the war, â€Å"one legal justification for killing is warfare† (Newman 2006, p. 18), but this does not mean that killing should be massive and meaningless. I had a chance in my life to get acquainted with the people of Russian origin.I always kept to the thought that Russian people preferred drinking alcohol during their parties, and when I was invited to their party I was prepared to that. I was already looking for excuses because I did not drink. However, it was the informal norm that each guest had to taste the host’s home-made alcoholic beverage. No one evidently knew or even imagined that I would be able to refuse and to simply neglect that long lasting informal tradition. Yet, I did refuse. In addition, I simply did not like drinking. I felt uncomfortable, because I knew that I was breaking an important norm, and still I could not step over myself.As I later understood, different nations treated their informal traditions in a similar way: they preferred when other people followed them even against their will. Legal norms are frequently neglected or are not respected, but not to follow informal traditions often means not to be accepted into particular society. Moreover, I was extremely interested in tracing the reactions of other people towards my behavior. When I was offered a drink, I refused. I was surrounded by Russian people, and my refusal was extremely surprising to them. Later I noticed that the different people displayed different reactions in terms of my refusal.I spent the rest of the party with them, and I was hearing them talk about me here and there. Some people openly expressed their displeasure with my behavior as they were talking to each other. The host of the party came up to me and whispered that I should not have behaved as that. I also heard that some people still did not reject my position, and they were even trying to justify my conduct. No one with the exception of the host has expressed his view openly. Non e of the Russian guests ever tried to explain me why my conduct could be negative or why I would have to follow their traditions.Ultimately, I was never invited to this house again. From the viewpoint of sociology, norms are rather complex sets of meanings for a particular society. As I have later understood it was extremely important for the Russian host that I followed their principles and informal traditions. The fact that I was never invited to their house again told much to me, but the reactions of people at the party had told me even more. First of all, I now realize that the reaction of people at breaking informal norms is never uniform, even when these people belong to one particular society, the norm of which was broken.It is very probable that they had also broken their own norms for various reasons, and breaking social norm once may turn into the regular process of routinization. Once people â€Å"have taken the initial step, they are in a new psychological and social si tuation in which the pressures to continue are powerful† (Newman 2006, p. 25). One important fact meant a lot to me: none of those who supported me in my behavior openly expressed his position to me. This was evidently another way not to break the norms of the society in which they found themselves, and not to face the risks of being rejected.When my Russian acquaintances stopped contacting me, I understood that I was not accepted into their society due to my refusal to drink. Probably, they could accept such conduct within their circles, but not from a person who was actually alien to their traditions as I was. I still realize that if I appeared in similar situation once again, I would have to analyze the informal traditions before I came into a new society, and would openly explain to other people why I would not perform certain actions. ConclusionThat type of experiment had led me to several serious conclusions. First, societies treat their informal traditions more obedient ly and more thoroughly than they treat the commonly held legal norms. In my case, there were no legal norms which would make me drink, yet I was not accepted into the Russian society again. Second, the reaction of other societal members at breaking folkway norms is never uniform. In this context, there are far reaching sociological implications for such conduct: even when people accepted my position they never expressed it openly.This meant that for a person to be within his own society was much more important than expressing his own thoughts and ideas which went against the norms and traditions of that particular society. I have expected that the reaction of people towards my conduct would be somewhat different: I anticipated that they would be open with me and would even try to explain why my behavior was wrong or to what consequences it could lead. However, they tried to create an impression that they were indifferent towards what I had done.Their indifference was only surface, b ecause in their minds they were trying to weigh all pros and cons of my actions. It was evident that the way people treated their folkway traditions ultimately determined the way they behaved towards those who broke those traditions. The host of the party was one of those for whom informal traditions were extremely important: he was the only one to express his displeasure to me. References Giddens, A. (1997). Sociology. London: Polity Press. Newman, D. (2006). Sociology: Exploring the architecture of everyday life. 6th edition. Pine Forge Press.

Dealing with a Uni-Polar World Essay

The world today is undeniably uni-polar which is in fact brought forth by years and decades of competition in the past among countries aiming for global dominance. Specifically, the most recent of such would be the Cold War between the United States and the Soviet Union. While the use of military force or the presence of actual battles are apparently lacking throughout the aforesaid war, both the United States and the Soviet Union are evidently engaged in a contest concerning technological and economic aspects. Of course, throughout history, more violent wars have occurred for achieving greater dominance and expanding the reach of a nation’s control and influence. At present though, it is irrefutable that there only a single superpower exists throughout the world, the victor in the Cold War, which is the United States. However, while some may perceive this as an irrelevant matter to discuss, it is quite obvious that the presence of a single superpower amidst the ensuing process of globalization has a myriad of associated concerns and repercussions and thus change is needed. As noted beforehand, there are a number of issues involved in having only a single superpower today. To further expound upon the current global status of United States, it would be necessary to point out that its economy contributes to roughly one fourth of the global GNP. In effect, the United States may express its control and influence over international concerns through military, economic, and even implicit power. Having unparalleled military prowess allows the aforesaid nation to handle and be involved with global issues independently; however, a direct detrimental effect of such military capabilities and actions is that global views assume a stance that the United States merely desires other nations to follow its ways. As noted beforehand, aside from military powers, the United States may also express its dominance and control through economic might. In particular, aside from having manipulative potential in both the IMF and the World Bank, the United States may also prevent or limit trade with other countries. Not being able to establish economic ties with the United States or with American firms, which contributes to the largest portion of the global economy, would detrimentally affect nations. Lastly, implicit powers are also present as the American thought becomes the universal basis of perception and evaluation. Due to the unrivaled power of the United States and its evident capability to influence the outcome of global issues and concerns, other countries without such potential eventually succumb into state of powerlessness. As expected, powerlessness does not entail positive thoughts as terrorism and doubts regarding the course of globalization manifest as the most concerning repercussions of such. Hence, multilateral institutions have been established to alleviate if not complete resolve such problems involving various nations. Regardless of the appropriateness of the goals of such multilateral institutions to maintain order worldwide, doubts as to whether the aforesaid goals are achieved in an unbiased manner are existent. For example, the WTO, having leaders from affluent nations, is believed to be driven by the opinions of those from more capable nations as well as America. Similarly, the IMF is also branded in a negative manner as critics have noted an over generalized approach in resolving the concerns of highly diverse nations, leading to ineffective outcomes. Even the appropriateness or the rationale behind the act of giving loans to developing nations has become a basis for doubt and dispute. Possibly, a shift from being a uni-polar to a multi-polar world would be the most ideal solution to the aforesaid problems. As a matter of fact, while the United States is at present the only superpower in the world, it is undeniably that certain nations also hold the potential to reach such status. Specifically, the European Union, Japan, China, and the United Nations are among the countries considered to be most likely to become superpowers in the future. Regardless of such, while transitioning to a true multi-polar world would be beneficial, it is still impossible at present. Thus, the IMF have opted to take up the task of eliminating doubts and maintaining order internationally through the pursuit of aiding countries which are in need of financial support. A specific example of such would be the support given to Indonesia, Thailand, and Korea for endeavors focused upon achieving economic stability and establishing reforms. Furthermore, more than 30 billion US dollars have been allocated and spent for the aforesaid purposes which have been acquired through both multilateral and bilateral sources. IMF’s programs for developing countries, specifically in terms of structural reforms, encompassed means to lessen depreciation, enhance the financial system, eliminating economic aspects detrimental to financial growth, and establishing a proper fiscal policy. It is quite evident that while the formation of other superpowers in the future is indeed a possibility, it is still irrefutable that the United States is still at present the most notable nation across all international domains such as politics. In particular, American maintains economic dominance through the presence of materialism as well as consumerism which have been also known to positively affect the economy of other nations as the businesses thrive from meeting the demands of the population. Furthermore, economic stimulation through the aforesaid societal trend is also supported by the presence of free trade and democracy. Nonetheless, even though criticisms are present regarding the dominant mindset embodied in the American nation and its global impact, it would still be expectable that even the American public have been affected by an imperialistic manner of thinking; not providing a response to global concerns have become an unacceptable course of action to take for Americans. The role of the United States in resolving international concerns only highlight the lack of ability among regional authorities to accomplish such. Therefore, in order to ensure that globalization unfolds in its truest sense, multilateralism in without doubt vital.

Low Morale of Prisoners

The prison employees safety is in jeopardy. Prison positions always carried a moderate amount of risk. Prisons are filled with people who believe that rules and regulations serve no purpose. These people violated the rules to the extent that they were removed from society.   Prisoners never deny nor apologize for their behavior. Making excuses for uncivilized behavior allows the low morale to never be acknowledged. Refusing to acknowledge the low morale problem among prisoners stops solutions from being possible. Causes of the Low Morale Among Prisoners There are as many outside influences for the low morale of prisoners as their own beliefs and opinions.   Giving in to easily to persuasion, wanting to be accepted, wanting friends and associates are the factors that are least acknowledged. Psychiatrists analyze   behavior and characteristics by social skills. However, wanting to have friends and please people leaves an opening to be influenced into unacceptable behavior. Today, no one can be certain if associates are really friends or enemies. Some of the current studies are mental illnesses, malnutrition, isolation, guards behavior and lack of rehabilitation and psychiatric programs are causing prisoners to have a lower regard for human life. Psychological games the guards use to cause the inmates to lose their individuality and focus contribute to low morale.   The system is set up so the prisoners frame of mind never changes for the better. Segregation in Maximum Security Prisons In maximum security prisons, â€Å"The prisoners spend 23 hours a day in small well lit cells, for one hour a day they have access to one small concrete recreation area† (Bender, November 4, 2005, P 15).   According to the study from Psychiatric News, segregation worsens behavior. With conditions like these, the prisoners learn is if they survive another day, they are doing the right thing.   They lose all knowledge of social skills. The only mental health treatment they are allowed is a brief time with the psychotherapists. The counseling is conducted in front of other inmates cells. Lack of treatment for drug and alcohol addiction is another problem in the prisons. â€Å"So far, one prisoner who repeatedly ends up in prison cost tax payers over $200,00† ( Imse, 2007).   The system does very little to correct the situation. The drug addicts cannot overcome the habit on their own. According to the Rocky Mountain News, the expenses of the medication and therapy is one of the reasons many prisoners do not get the proper treatment they need. According to the Human Rights Watch article, prisoners spent at least 23 hours during their daily activities along. The majority of damage to the prisoners is psychological. There is very little or no evidence of physical abuse. Mental humiliation and torture is impossible to prove. Conclusion Maximum security prisoners have a very low morale because of the psychological abuse they go through day after day. According to the latest research, isolation has the biggest impact on prisoner’s behavior. They are isolated, but are constantly watched. People in maximum security prisons are segregated because they have came across   secrets they were not supposed to. Bender, E, Psychiatric News (November 4, 2005), Volume 40, Number 21, P 15  © 2005 American Psychiatric Association Human Rights Watch (2000) HWR.ORG Imse, A, (Feb 16, 2007) Rocky Mountain News. Revolving Door to State Prisons Human Rights Watch, (February 2000) Vol. 12, No 1 G Out of Sight: Super-Maximum Security Confinement in the United States

Management of Utilities Assignment Example | Topics and Well Written Essays - 1500 words

Management of Utilities - Assignment Example Further, this establishment will ensure compliance with regulatory requirements, health standard, and guidelines established by various stakeholders in the health sector. An effective preventive maintenance program and the establishment of reference documents for each system will ensure good utility management. On the other hand, contingency plans in the event of a utility system failure should be established and the introduction of performance evaluation of the various systems put in place (Hal, James, and Wayne, 2004). The establishment of such a system that will incorporate the various components of utility management will be quite effective in the provision of quality health care and increase in income of this nursing home. In utility management, the plan identifies the various stakeholders and educates them on their use. After its implementation, the way the stakeholders respond should subsequently be monitored and the improvement cycle established to identify the weaknesses and the strengths of the system. This plan will also help in giving a guideline on the responsibilities and the delegation of duties among the staff members so as to improve performance by elimination of duplication and conflicts of targets. Review of the progress is recommended to ensure that the management system is performing and hence maintenance. A quality control department needs to be established in the nursing home under utility management and with collaboration with risk management. Under utility management, it will establish the procedures for the reduction of health hazards as depicted by the Harvard analysis Critical Control Point. Emergency procedures should also be well illustrated in the plan in the event of utility system malfunction. The consumer-inspired quality is one of the methodologies used in performance measurement.  

Social Network Website Design & Justification Assignment

Social Network Website Design & Justification - Assignment Example Users are then prompted to complete their public profile. Completing the contact details and public profile section allows users to effectively participate on the online community forums. For example, they can use their screen name to share their blood donation pictures online. One a first user is logged into my account, they will find a number of interactive features that will help them navigate the interface and customize their own profile the way they want. New users can also click navigation help to learn how to interact with the interface of the site. Returning users will have enhanced interactive features that allow them to donate blood, track their donation. They will also be able to build their reputation based on their number of friends and the number of donations, ratings. The website will incorporate a number of links to various online games where by registered users who are online will be able to play win/loose games with other users who are also online. One of the main social network games that will be in cooperated into the new site is a farming simulation game known as FarmVille. The proposed design of the social media site for Canadian blood services has a number of interactive features that are not only designed to enhance the usability of the social media site but also to motivate potential users into donating blood as well as increase the number of people joining signing up into the site. For example, to attract more people to the new site, various features have been included to allow registered members of the donor community to invite their friends through other social media channels such as Facebook and twitter by click â€Å"add friend† or â€Å"invite others† buttons. On the other hand, non registered users and visitors can also share the contents of the social media site to their twitter or Facebook accounts. Once individuals have been attracted to the site, the next important challenge is to motivate them to successfully undergo

Human resources management Staffing Assignment Example | Topics and Well Written Essays - 500 words

Human resources management Staffing - Assignment Example o the initiation of disengagement includes: employee not being considered for promotion, the real job is different from the original job description, a very close colleague has been fired from his position, a great job opportunity from another organization and conflict with other employees of the employer (Branham 12). Other reasons due to which employees disengage includes: loss of trust, less training and less career advancement opportunities and lack of appreciation. Organizations do not meet some of the promises they have made to the employees due to which employees lose trust in their employers and tend to leave. Employees do not want to remain in the same position of the organization for years they want to excel in their careers To get a better career they need training and if training is not provided by organizations, employees forfeit their position. These are some of the several reasons that may trigger the event of disengagement. 3. The competition and workload on managers is increasing day by day and they have ignored various signs of disengagement expressed by employees. High rate of absenteeism, unacceptable behavior, negativity towards work are some of the early signs of disengagement and these signs can help employers identify that an employee is going to disengage. 4. If employers or managers determine that a particular employee is going to disengage from the organization, the manager should take measures to counter the problem. One of the reasons of disengagement is loss of trust; the managers can re-establish the trust factor with the employee by providing benefits that have been promised to the employee. Another reason of disengagement is lack of training; managers can provide training and career advancements to motivate them. The managers can stop the disengagement process by rewarding employees for their achievements and making them feel that they are very important to the organization. Another factor of disengagement is that employees feel

Compare three cinematic figures of Jesus Christ Essay

Compare three cinematic figures of Jesus Christ - Essay Example This Jesus is in love with Mary of Bethany, and although she obviously has the look of love in her eyes and he reciprocates the looks, there is something that prevents him to ask her to marry him, but he does not know what it is, when he asks his father about it, Joseph only answers; "I'm just a carpenter, but you Jesus, you are not just a carpenter." Before dying, his earthly father lets him know that he is expected to do something to deliver the people of Israel from the Roman tyranny, yet he does not understand what or why him. "You want me to step out but you leave alone" he tells his father in the grave, he begs God to raise him, he demands Him, and finally, he accepts God's will. It is Mary his mother who tells him about his divine conception and encourages him to follow his heart. That's when he leaves for forty days and forty nights to the desert to fast and meditate about his future. His innocence and great faith are evident in his encounter with Satan, when he tempts him to turn the stones into bread to feed the people of Israel so they won't die he answers: "They die because of the hearts of stone of other men, not because of the will of God." When told by Satan that in order to make people listen he should throw himself from the Temple, and have God's angels come rescue him, "that would get the people's attention." Jesus seems to understand Satan's point of view and he is about to jump, then stops and turns to tell him: "If God wanted to test nature's laws, he wouldn't have sent me." It is through the third temptation that he realizes He is "The lamb of God."

Marketing Plan Research Paper Example | Topics and Well Written Essays - 2000 words - 2

Marketing Plan - Research Paper Example For instance, the provision of primary care to them needs to address their varied needs. N-generation has never experienced the pre-internet world and is already technology focused. This means that the primary care services need to incorporate the technological aspect of it for it to thrive in this market. On the other hand, Baby Boomers and generation X embraces both the physical and technological aspects of the services, although they are not technologically inclined. However, they prefer high quality services since they have preference for value for their money. Therefore, the paper will discuss the marketing plan for a primary care business to be situated in the suburb of Washington DC that mainly consists of Baby Boomers, generation X and N-generation. The research document will further highlight a plan of office requirements for these generations. The community is comprised of Baby Boomers, generation X and N-generation white-collar workers, mostly employed by high-tech and consulting firms, thus the need to come up with an all inclusive office plan that takes care the interests of these generations. According to ONeill (2009), we are living in an era where office design is completely dominated by the Baby Boomer’s worldview. However, currently almost 50 % of the workforce comprises of generation Y. Since generation X is very active, they a need working place that is very engaging. For Baby Boomers and N-white collar professionals, their workstations need to be installed with high-tech equipment since they have really embraced technology. Many departments would be communicating with each other. Therefore, the office needs to be built in way that it offers facility to work in multiple states. This is something that has been embraced by Baby Boomers and N-white collar professionals. Most of them need offices that offer a coustic privacy to their activities. For both generations, having quality-meeting rooms is considered very crucial. Hey also need

RNA silencing for the prevention of Phytophthora root rot in avocado Literature review

RNA silencing for the prevention of Phytophthora root rot in avocado - Literature review Example So, the scientists and the concerned people have found out a way to tackle this menace [2]. It is the use of RNA. The RNA is used to inhibit specific gene expression of the plants to prevent Phytophthora root rot in avocado plants. It was further found that the growing population is causing a sharp increase in the demand of the avocado across all over the world [3]. In order meet the rise in the demand, the farmers or the cultivators are using a number of elements to increase the production of the avocados. Overuse of the elements is further affecting the plants. The plants are getting affected by pests. Among them the rot root fungi is the most common form of the pests. Excessive spread of the fungi would destroy the crop and highly affect the cultivation of the crops so the scientists have discovered a number of methods which would prevent this. Among them RNA slicing is one of the most common methods for the prevention of Phytophthora root rot in avocado. According to a study, it was found that the Phytophthora root rot in avocado is primarily caused by Phytophthora cinnamomi, which is an economically important disease in the avocados around the world [1]. The crops when affected with fungi and gets harmed with Phytophthora root rot, it completely destroys the crops and leaving co crop for sell and make money out of it. In Australian agriculture, economic cost of losing were estimated in previous 20 years to be more than AUS$200 million per year [] and around US$44million in California annually []. The RNA silencing is used to increase the resistance of the avocado trees with the help of transgenic rootstocks. It is expected to reduce the incidences of fungi attack on the avocado plants. It was found that the fungi attack on the avocado trees could be prevented with the help of RNA interference process [4]. The authors further explain RNA interference as a cellular process where the RNA molecules

Analysis Annual Report 2010 Bayer Essay Example for Free

Analysis Annual Report 2010 Bayer Essay Profitability Which indicators have been brought forward in the annual report of the company? Which specific targets are aimed at? How does the group state and assess the evolution of profitability in the annual report? Is there more recent public information about this issue? Where? Is this information in line with the one mentioned in the annual report? Is it indicating a similar evolution? What are the main propositions of the company to improve its profitability? Financing What is the global financing strategy of the group? What is the evolution of the financing cost (several indicators)? What is the shareholders’ remuneration program? What are your sources (of information) regarding this issue? Investments What are the main investment / disinvestment policies? How are these investments financed? What is the outlook of the company regarding this issue? Consolidation process What are the most important consolidated subsidiaries? (Eventually mention the approximate number of subsidiaries)? Are there associated companies? What is the evolution of the income attributable to shareholders (or result part of the group)? What are the comments of the company regarding this issue? What kind of indicators does the company report about shareholder value? Are those indicators compared with other information? International standards Does the group announce the non-publication of some standards? If yes, for which reasons? Among explanatory notes associated with the consolidated accounts, choose one that is relative to a specific standard. For this note, report essential characteristics that highlight the differences in terms of recording and reporting in the relation to Belgian GAAPs. What is the impact of IAS/IFRS referential (if any) on the account that is concerned by this note? Global diagnostic Is there important recent information about this company? Would you invest in this company? Why? Business sector What is the main business of the group? Firstly, we have to know that Bayer was founded in Barmen, Germany in 1963 by Friedrich Bayer and Johann Friedrich Weskott his partner. It is a global and an inventor company with core competencies in the domain of health care, nutrition and high-tech materials. They produce and provide services to benefit people and improve their quality of life. In addition, they seek to create value with the help of innovation, growth and high earning power. For them, sustainability is very important for their social and ethical responsibilities. Its headquarters are in Leverkusen. This is one of the largest phamarceutical companies in the world and has three sebgroups: Bayer CropScience, Bayer HealthCare and Bayer MaterialScience. Led by the management holding company, they also have three services companies which operate independently: Bayer Business Services, Bayer Technology Services and Currenta. Are there other activities, complementary businesses within the group? Bayer CropScience has products in crop protection and nonagricultural pest control. It also has activities in seeds and plant traits. Bayer HealthCare is Bayers pharmaceutical and medical products subgroup. It is involved in the research, development, manufacture and marketing of products. It comprises a further four subdivisions: Bayer Schering Pharma, Bayer Consumer Care, Bayer Animal Health and Bayer Medical Care. Bayer MaterialScience is a supplier of high-tech  ­polymers, and develops solutions for a broad range of applications relevant to everyday life. Bayer Business Services located at the Bayer USA Headquarters in Pennsylvania. It handles the information technology infrastructure and technical support aspect of Bayer Canada and USA. Bayer Technology Services is engaged in process development and in process and plant engineering, construction and optimization. Currenta offers services for the chemical industry, including utility supply, waste management, infrastructure, safety, security, analytics and vocational training. What are the main groups competitors? The main group’s competitors are Merck Co, GlaxoSmithKline, Pfizer and Sanofi Aventis. Indeed, GlaxoSmithKline have the second post in the pharmaceuticals world just behind Pfizer. Sanofi Aventis is in fourth place and Merck Co and Bayer share the third place. Which main risks (that are inherent to this business sector) does the company mention? Which hedging policies are put in place? Business operations necessarily involve risks. So according to Bayer, effective management of risks is a key factor in sustainably safeguarding a company’s value. Risks are assessed both qualitatively and quantitatively in determining strategies of the strategic business entities. The risk management system is set on the Group Intranet. Directive published explains the basic principles of this management in accordance with German Law.According to Bayer Group, the definition of the risk is represented by events and possible developments within or outside of the group that would decrease the value of the company. These risks are described as follows: Legal risksBayer Group is exposed to numerous legal risks from legal disputes or proceedings to which they are currently a party †¦ So it is therefore possible that legal or regulatory judgments could significantly affect the revenues and earnings of the company.Industry-specific risksSome governments intervene directly in setting prices and the government reimbursement systems favoring less expensive generic pharmaceuticals over brand-name products, which diminish earnings from Bayer’s pharmaceutical products and could potentially render the market introduction of a new product unprofitable. So if it necessary, Bayer’s Group adjusts his business plans according to the significance of governmental intervention. Sales of the Group are subject to seasonal fluctuations and CropScience business particularly affected by weather conditions. Moreover the early identification of trends in the economic market is important elements of the Bayer’s Group business management. Finally where it appears strategically advantageous they may acquire a company or part of a company and combine it with their existing business. The integration processes associated with their acquisitions are steered by integration teams. Appropriate resources are provided to support the integration processes.Product development risksThe Group’s competitive position, sales and earnings depend significantly on the development of commercially viable new products and technologies’ production. So they therefore devote substantial resources to research and development. Furthermore it is possible that effects of their products may be discovered after regulatory approval or registration. So litigations and associated claims for damages due to negative effects can materially diminish their earnings.Regulatory risksOur life science businesses, in particular are subject to strict regulatory regimes relating to the testing, manufacturing and marketing of many of our products. In some countries regulatory controls have become increasingly demanding like in the USA or in EU. That may increase product development costs. So Projects have been initiated to coordinate the implementation of new regulatory controls and mitigate any negative implications for the business. Patent risksA large proportion of Bayer’s products is protected by patents. When a patent defense is unsuccessful, or if one of our patents expires, our prices are likely to come under pressure because of increased competition from generic products entering the market. The legal department, in conjunction with the relevant functional departments, regularly reviews the patent situation. Potential infringements of Bayer’s patents by other companies are carefully monitored so that legal action can be taken if necessary. Production, procurement market and environmental risksProduction capacities at some of their manufacturing facilities could be adversely affected by, for instance, technical failures, natural disasters †¦ This applies particularly to the biotech products because of the highly complex manufacturing processes. If in such cases they are unable to meet demand they may suffer declines in sales revenues. So they address product and environmental risks by way of suitable quality assurance measures. In addition, they are committed to the international Responsible Care initiative of the chemical industry. IT risksMajor disruptions or failure of global or regional business systems may result in loss of data and impairment of business and production processes. As a consequence technical precautions such as data recovery and continuity plans have been established together with the internal it service provider to address this risk. Risk to pension obligations from capital market developmentsThe Bayer Group has obligations to current and former employees related to pensions and other post-employment benefits. Changes in relevant valuation parameters such as interest rates, mortality and rates of increases in compensation may raise the present value of the pension obligations. This may lead to increased pension costs or diminish stockholders’ equity. Financial risksIn this part we are speaking about the management of financial and commodity price risks. As a global enterprise, Bayer is exposed in the normal course of business to credit risks, liquidity risks and various market price risks that could materially affect its net assets, financial position and results of operations. The various risks associated with financial instruments are outlined below together with the relevant risk management systems. In this risk there is a lot of subcategories: Credit risks: arise from the possibility of the value of receivables or other financial assets being impaired because counterparties cannot meet their payment or other performance obligations. To effectively manage the credit risks from trade receivables, Bayer has put in place a standardized risk management system Credit limits are set for all customers. Finally to minimize credit risks, financial transactions are only conducted with banks and other partners of first-class credit standing in line with predefined exposure limits. Liquidity risks: arise from the possibility of not being able to meet current or future payment obligations because insufficient cash is available. Those problems are centrally managed in the Bayer Group. Sufficient liquid assets are held to meet all of the Group’s payment obligations when they fall due, thereby ensuring solvency at all times. The size of this reserve is regularly reviewed and adjusted as necessary to current conditions. Then credit facilities also exist with banks. Markets risks: relate to the possibility that the fair value or future cash flows of financial instruments may fluctuate due to variations in market prices. Market risks include currency, interest rate and other price risks, especially commodity price risks. Currency risks: since the Bayer Group conducts a significant portion of its operations outside the euro zone, fluctuations in currency exchange rates can materially affect earnings. Currency risks are identified, analyzed and managed centrally and systematically. The scope of hedging is evaluated regularly and defined in a corporate directive. Then a significant proportion of contractual and foreseeable currency risks is hedged, mainly through forward exchange contracts and currency options. Interest rate risks: The Bayer Group’s interest rate risks arise primarily from financial assets and liabilities with maturities exceeding one year. Interest rate risks in the Group are analyzed centrally and managed by the central finance department. This is done in line with the duration set by the Board of Management, which implicitly also includes the ration of fixed-rate to floating-rate debt. Then the duration is subject to regular review. Other price risks (especially price risks): The Bayer Group requires significant quantities of petrochemical feed stocks and energy for its various production processes. The prices of these inputs may fluctuate considerably depending on market conditions. This applies particularly tothe MaterialScience business. They have addressed this risk by concluding long-term contracts with multiple suppliers. The operation of their production facilities requires large amounts of energy, mostly in the form of electricity and steam. To minimize the exposure to energy price fluctuations, they aim for a balanced diversification of fuels for steam production and a mix of external procurement and captive production for power generation. As we can see the overall risk assessment is based on a consolidated view of risk each. There were no risks identified may endanger the existence of the group in 2010. And this is the continuation of the previous year. Profitability Which indicators have been brought forward in the annual report of the company? Which specific targets are aimed at? The profitability of a company makes the relationship between the results obtained by the company and the means used to achieve this result. The result of a business can be estimated thanks to different criterion, such as:Operating income: Which one measures the earnings generated from the production activity of the company? The profit of the year: Which measures the net result of the company, when expenses and benefits have been taken into account? The Value Added: which measures the wealth created thanks to the production function of the company? Similarly, the means used by a business can be measured by:The total of assets: this corresponds to the measurement of assets used by the company to produce. The equity: measurement of all financial resources used to produce starting. Capital stock: it is all the financial resources made available to the company by shareholders. We must not forget that a business can be profitable but still have a lower profitability of its sector. That’s why its profitability should be compared with the one of its main competitors. Thus a possible lack of competitiveness could be detected. There are 3 kind of profitability: Return on business ; Return on assets ; Return on equity. The profitability indicators highlighted by the Bayer Group in its annual report are the following: EBIT (before special items) EBITDA (before special items); Cash flow return on investment ; Earnings per share ; ROE (return on equity); ROA (return on assets). So concerning specific targets we believe that shareholders, investors and potential investors, suppliers and staff are the key audiences that are intended profitability indicators. How does the group state and assess the evolution of profitability in the annual report? Is there more recent public information about this issue? Where? Is this information in line with the one mentioned in the annual report? Is it indicating a similar evolution? The group assesses its profitability by focusing on the various indicators mentioned above. In its annual report, the group highlights a number of indicators of profitability, which are: EBIT EBITDAThese indicators are reported in order to allow a more accurate assessment of business operations. The company considers EBITDA before special items to be a more suitable indicator of operating performance since it is not affected by depreciation, amortization, impairments or special items. By reporting this indicator, the company aims to give readers a clearer picture of the results of operations and ensure greater comparability of data over time. EBIT for 2010 came in at â‚ ¬ 2,730 million whereas it was â‚ ¬ 3,006 million in 2009. This decrease is due to several factors that are: Sales of the Bayer Group rose by 12.6% from the previous year to â‚ ¬35,088 million; in 2009 the amount was â‚ ¬31,168 million, thanks largely to the recovery in the Material Science business. Adjusted for currency and portfolio effects, sales grew by 8.0% ; The cost of goods sold advanced by 13.0% to â‚ ¬17,103 million. This was mainly due to a considerable increase at MaterialScience, which in turn resulted chiefly from the growth in volumes and higher average raw material prices for the year. The ratio of the cost of goods sold to total sales was 48.7%, this ratio increased by 0, 1%, it was 48, 6% in 2009. Selling expenses rose by 11.1% year on year to â‚ ¬8,803million, it was â‚ ¬7,923million in 2009, and were thus equivalent to 25.1% of sales. Health Care accounted for the greater part of the increase. The group raised their research and development expenses in 2010 by a further 11.2%,the amount increased from â‚ ¬2,746million in 2009 to â‚ ¬3,053million in 2010;

WalMart SWOT Analysis

WalMart SWOT Analysis Wal-Marts policies and practices are designed to ensure an environment that is equitable and inclusive. To that end, Wal-Mart solicits feedback from all of their employees, annually, regarding their opinions of their work experience and the companys implementation of Wal-Marts basic beliefs and values. In addition, they provide training on working with people, leadership skills, equal employment opportunities, diversity and sexual harassment prevention. Wal-Mart is committed to providing all employees state-of-the-art training resources and development time to help achieve career objectives. They have a number of training tools in place that keeps then out in front of the competition, including classroom courses, computer-based learning, distance learning, corporate intranet sites, mentor programs, satellite broadcasts, skills assessments, and job announcements. These tools are successfully increasing advancement opportunities for women and minorities. Wal-Mart has been ranked among Training Magazines Top Training 100 companies for two consecutive years. Respect for the individual, one of Wal-Marts companys three core values, is reinforced throughout their training process. Wal-Mart is committed to the customers and communities they serve. Wal-Mart hires locally, representing the diversity and uniqueness of everyones hometown. As the demographics of the nation have changed, so has the family of Wal-Marts employees. More than 15 percent of their employees are over the age of 55, and they are the nations largest employer of Hispanics and African-Americans. Wal-Mart also uses its respectable financial position to attract and retain employees by offering stock ownership and profit-sharing programs. These programs are available to all full-time employees of Wal-Mart and make a significant impact on the earnings of employees. They are allowed to purchase shares of stock at reduced prices, which allows them an immediate appreciation of their portfolio. With the profit-sharing program, the employees receive bonuses at the end of the year based on the success of the overall company. These also provide a significant amount of compensation to their employees. Wal-Mart also has very strong community-based initiatives. They have continually gave college scholarships for high school seniors, raised funds for nearby childrens hospitals through the Childrens Miracle Network Telethon, provided money and manpower for fund raisers, school benefits and churches, Boy and Girl Scouts, park projects, police and fire charities, food banks, senior citizen centers, and more. They also educate the public about recycling and other environmental topics with the help of a Green Coordinator, a specially trained employee who coordinates efforts to make an environmentally responsible store. Along this same line, Wal-Mart has created Environmental Demonstration Stores in Lawrence, Kansas; Moore, Oklahoma; and City of Industry, California. These stores serve as a test tube for environmentally friendly building materials and experimental methods for conserving energy and water. Finally, the corporate structure of Wal-Mart is very well rounded and managed with three core values: respect for the individual, service to their customers, and striving for excellence. The management of Wal-Mart is the backbone to the entire company and these core-values have propelled Wal-Mart to the top of their industry and have allowed Wal-Mart to be the worlds largest company. (S)trengths Marketing The nature of Wal-Marts marketing is in its Every Day Low Price (EDLP) campaign. This is what makes Wal-Mart successful. Sam Walton devised a system for which price setting was to be followed. Sam wouldnt allow management to hedge a price at all. If the list price was $1.98, but Wal-Mart had paid only 50 cents, they would mark it up 30 percent, and thats it. Sams philosophy was No matter what you pay for it, if we get a great deal, pass it on to the customer. The other major campaign Wal-Mart employs is the Rollback. This occurs when Wal-Mart lowers the already lowered Every Day Low Prices. This has really been a successful way for Wal-Mart to increase its patrons. When consumers shop, they are always looking for the best deal, since Wal-Mart already offers low prices, when they rollback prices, they are able to out-price all of their competition. Stemming from the managements core values, Wal-Mart has been known for their customer oriented approach. Wal-Mart maintains one of the best satisfaction guaranteed programs, which promotes customer goodwill. One can return virtually any product to Wal-Mart without any problems. They simply take the product back and promptly refund the price of the product, nearly no questions asked. They also promote goodwill among consumers by employing a tactic, which Sam created known as the Ten Foot Rule. This is simply the idea that if a customer comes within ten feet of an employee, they are required to greet them and ask if they can help them in any way. This is also evident through employees getting to know customers on a first name basis. Finally, perhaps the single most important marketing aspect of Wal-Mart is that they create the ideal one-stop shopping experience. Wal-Mart is organized into ten distinct divisions. These include: Wal-Mart stores, SAMS CLUBS, Neighborhood Markets, International, walmart.com, Tire Lube Express, Wal-Mart Optical, Wal-Mart Pharmacy, Wal-Mart Vacations, and Wal-Marts Used Fixture Auctions. Through these divisions, Wal-Mart offers thousands of products. The Wal-Mart stores contain groceries, clothes, healthcare products, toys, electronics, bedding, sports and recreation, automotive, among other items. Because of this conglomeration of products, the typical consumer can go into any Wal-Mart and walk out without having to stop at another store for anything that they could need. Finance/Accounting Since 2000, Wal-Marts revenue has consistently increased. In 2000, they had revenues of $165,013 billion and in 2002 their revenue had increased 24% to $217,799 billion. This is astronomical growth in revenues considering the overall size and scope of Wal-Mart. Top be able to consistently grow revenues in such a large organization is simply amazing. The increase in revenues has also been very kind to their cash flow. In 1997, Wal-Mart had a positive cash flow of $4,044 billion and in 2002 this number had increased to a positive $9,961 billion. This growth also had an impact on Wal-Marts net income, which is to say that they were able to control their expenses while continuing to grow and expand their operations. In 1997, their net income was a not-so-paltry $3,056 billion, and in 2002, only five years later, Wal-Mart more than doubled their net income to $6,671 billion. The strength of Wal-Mart is also shown through its ratios. Nearly all of Wal-Marts ratios are strengths when measured against the industry averages. Through our ratio analysis, we have shown that Wal-Mart is the best-equipped company to succeed in the marketplace. (The ratio analysis can be found as Figure 3 in the appendix) Another area of strength is Wal-Marts stock price. Figure 4 shows the price of Wal-Marts common stock from October 2000 until the end of 2002. The price has fluctuated, but it has only fluctuated between $45 and $65. Including dividends, an investment in Wal-Mart would perform well. Production/Operations Perhaps the strongest aspect of Wal-Mart is in its access to distribution networks. Wal-Mart uses a system known as cross-docking. This is simply the process of continuously delivering goods to warehouses where they are sorted and distributed to their stores within one day. This enables Wal-Mart to take advantage of economies of scale with shipping trucks with full loads. This also gives Wal-Mart the ability to increase the speed of deliveries, a faster response to market demands, and a low inventory. This system has allowed Wal-Mart to decrease its sales cost by 2 to 3 percent over the industry. This savings is then priced into the products with the earlier discussed EDLP programs. This system is maintained through the most important aspect of Wal-Mart, its employees. With over one million employees worldwide, Wal-Mart definitely has the manpower to move goods. This is also facilitated with a proprietary satellite-based communication system that enables managers and point-of-sale systems real-time information on the needs of each store. Research and Development Wal-Mart does not engage in any research and development. Computer Information Systems As discussed in the production/operation section, Wal-Mart uses a sophisticated system of satellite-based communications. They also offer a safe, secure and complete website where consumers can purchase all of the same products found in the store. The website is strength because it is not only a means for purchasing products, but is also a very thorough informational site. Consumers can log onto www.walmartstores.com and do company financial searches, find employment, learn about the grassroots of Wal-Mart, email the company about problems, and learn about any recalls of products sold through Wal-Mart. (W)eaknesses Management The biggest weakness that Wal-Mart has in the management area is that it does not have a formal mission statement. While they do have core values, they do not explicitly tell their employees or consumers what their business is. This is a fundamental aspect of a company and it provides not definition and direction, but it gives a company a statement on which to rely on to stay strong and focused. Another weakness is that there are few females in top management and there are few minorities employed. With such a societal demand for equality, Wal-Mart is lacking in this category. This is not a very good ethical decision for Wal-Mart to be making. They are really hurting their corporate image by maintaining this position. The other area that Wal-Mart lacks in is with unions. Currently, Wal-Mart does not have any union involvement. This is a problem because of the perception of treating employees poorly. Unions are created to provide bargaining power to employees on issues that involve their compensation, benefits, and working conditions. This is also a weakness because of job security. With unions, job security is not as much of a concern. Marketing The biggest source of marketing weakness stems from Wal-Mart lobbying to expand into new markets. There are thousands of towns across the United States that have tried to block the introduction of Wal-Mart because of the economic impact that it has on small-town stores and shops. Wal-Mart has a damaged reputation because when they move into a location they end up forcing these types of businesses out of business. Finance/Accounting Weaknesses in Wal-Marts finances are seen in three of its ratios. The fixed asset turnover, earnings per share, and average collection period ratios are not very good. The fixed asset turnover ratio is telling us that they have made a lot of investments, but that they are not being fully used at this point in time. The earnings per share ratio is not good because when compared to the industry, they are not earning as much money for each shareholder. However, this is most likely due to the sheer number of outstanding shares. The average collection period is a cause for concern because it means that they are allowing their debtors to carry accounts with Wal-Mart for an above average period of time. This is not good because it increases the likelihood of non-payment. (These ratios can be found in Figure 3 of the appendix) Production/Operations The largest source of concern for this functional area is the slowing speed of checkout lines. This is simply a product of Wal-Marts success. Because more and more people are going to Wal-Mart, and the number of checkout lines is staying constant, the only way to compensate is for the time to checkout increase. This is a problem because it can and will cause people to choose other stores that are less congested. They are basically losing sales due to this fact. Research and Development This is a weakness because they do not actively engage in any research and development. Specifically, they do not do any prior site research before opening a store. They simply approach a local government and build. Internal Factor Evaluation The internal factor evaluation is used to evaluate the major strengths and weaknesses of a company. There are weights assigned to strengths and weaknesses based on how the company responds to them. The ratings are: 1 = poor response, 2 = average response, 3 = above average response, and 4 = superior response. (Figure 5 in the appendix) The key strengths we identified were financial position, employees, customer oriented, one-stop shopping, satisfaction guaranteed programs, employee stock ownership and profit-sharing, well-rounded business, ease of website, good reputation, and favorable access to distribution networks. Along with key strengths of Wal-Mart, we also identified key weaknesses. The key weaknesses are some ratios are not sufficient, non-unionization, no formal mission statement, few women and minorities in top management, undifferentiated products and services, site research, slow speed of checkout service, and finally a damaged reputation. The strengths were weighted: .04 for financial position, .07 for employees, .07 for customer orientation, .14 for one-stop shopping, .05 for satisfaction guaranteed programs, .05 for stock ownership and profit-sharing, .03 for well-rounded business, .04 for ease of website, .04 for good reputation, and .04 for favorable access to distribution networks. The weaknesses have also been weighted. The weaknesses weighted scores were .03 for insufficient ratios, .15 for non-unionization, .05 for no formal mission statement, .05 for few women and minorities in top management, .03 for undifferentiated products and services, .05 for site research, .04 for slowing speed of checkout service, and .03 for a damaged reputation. These weights show the importance of each strength and weakness of Wal-Mart. They are determined by how important that quality is to Wal-Mart and how hard of an impact each has against other businesses. We felt that the most important factors were one-stop shopping and non-unionization. These two factors are very important to Wal-Marts structure and well being as a whole. If these factors are not evaluated regularly, they could put a start to its potential downfall. We rated each strength and weakness based on how Wal-Mart seems to be positioning itself against its competitors. Wal-Marts employees, customer orientation, one-stop shopping, satisfaction guaranteed programs, stock ownership and profit sharing, ease of website, good reputation and favorable access to distribution networks all have been very successful strengths for the company. These are so successful we rated each with a 4. The financial position of Wal-Mart and the well-rounded business that it is has made Wal-Mart what it is today. Because of this success we rated these factors with a 3. In their weaknesses, we thought that minor weaknesses included: non-unionization, no formal mission statement, few women and minorities in top management, undifferentiated products and services, site research, and the slowing speed of checkout service. Since these were only minor we gave them a score of 2. We also rated some major weaknesses. These included insufficient ratios and their damaged reputation, which we rated as a 1. By using these scores in the internal factor evaluation matrix, we came to a total score for Wal-Mart being a 3.01, which is above average. They are above the average company when it comes down to its strengths and weaknesses and how they deal with them. (This is Figure 5 in the appendix) External Analysis (O)pportunities Economic An opportunity available to the industry is the free trade zone. When the government enters into new trade agreements with foreign countries, businesses in the United States have the ability to offer products from these countries in their stores. This simply increases the markets available to retailers. Social, cultural, demographic, and environmental An opportunity facing the industry is that customers want ease of shopping. To provide the ease of shopping the industry is guaranteeing that the customers will find what they want when they want it. This is supported by convenient presentation and the right level of service every time the customer shops. Political, legal, and government An opportunity facing the industry is that the Asian market is virtually untapped by the retail world. By having an untapped market it gives a huge opportunity for companies to expand. It promises unlimited potential for growth and profits. Technological An opportunity facing the industry is that internet shopping is growing. To take advantage of internet shopping, the industry is focused around the customer. The customer receives friendly site designs, efficient order fulfillment, fast delivery and professional customer response. They process returns, refunds, and rebates quickly. Competitive An opportunity facing the industry is that the value of money is weakening. The weakening value of money will help the industry because it reduces the ability of foreign manufactures to offer discounts. (T)hreats Economic A threat is that the economy is very slow right now. There is no way of preventing it and no way to change it. This impacts all businesses and causes profit margins to be reduced as price-cutting ensues to attract more consumers. Social, cultural, demographic, and environmental A threat is customer theft. Manufacturers are fighting back against customer theft by embedding paper clip sized antitheft tags, called electronic article surveillance labels, inside products and packaging. Called source tagging, the process offers several major benefits. For one, merchandise tagged on the factory floor during manufacture or packaging lets retail employees spend less time in the storeroom applying labels and more time on the show floor helping customers. Also, high-theft merchandise previously displayed behind glass can now sit out in the open, boosting sales significantly. Another social, cultural, demographic, and environmental threat is employee theft. Along with antitheft labels there are radio-frequency circuits that are hidden in packages and go unnoticed. The only time they will go off is when the bar code scanner does not deactivate the circuit, which means they stole it. This helps to prevent the two forms of employee theft, which are sweat hearting and sliding. Sweat hearting is when the employee charges the customer less than the actual price and sliding is when the employee covers the barcode at the point of sale. Political, legal, and governmental A threat is the Chinese regulations. China has one of the largest populations in the world; however, the Chinese government does not take kindly to opening their country to foreign establishments. Also, there is rampant corruption among the Chinese, and they have no generally accepted accounting principles. Technological A threat facing the industry is that technological advances may make the products obsolescent. As technology advances, products being sold today are gone tomorrow; this provides less products for retailers to sell. Competitive A threat is that the industry is not following consumer taste. To overcome the threat of not providing consumers wants the industry is expanding rapidly in the urban centers while traditional wet markets are being edged out as the middle-class enlarges and young people flock to the cities. Competitive Profile Matrix A competitive profile matrix identifies a firms major competitors and its particular strengths and weaknesses in relation to a sample firms strategic position. The ratings are as follows: 1 major weakness, 2 minor weaknesses, 3 minor strengths, and 4 major strengths. (Figure 1 in the appendix) Compared together, Wal-Mart, Target and Kmart are very close competitors. They are all retail-variety discount stores making their existence known throughout the world, except Target, which you cannot find globally. These three companies are constantly vying for the reputation as the lowest priced retailer. In the competitive profile matrix, the most critical success factor would be advertising with a weighted score of 0.25. Advertising for these competitors is very critical if they want to compete against each other for the best quality products at low prices. With this, Target was scored the highest with a rating of 4 while both Wal-Mart and Kmart are rated as a 3. This is because Target does a lot more advertising then Wal-Mart and Kmart. The next most critical success factor is global expansion with a weighted score of 0.20. This is somewhat important if you wanted to keep up with the competitors. Wal-Mart was found to be rated the highest with a 4 with Kmart was rated next with a 3, and finally Target rated as a 2. Wal-Mart was ranked the highest because they are found around world, while Kmart was ranked next because they are only found in a few other countries. Target, ranking last, does not have any global branches. This is only a minor weakness because they really do not have to go globally because of how well they are keeping up with the competitors within the United States. Price competitiveness and financial position are ranked next on the competitive profile matrix with a weighted score of 0.15 each. Wal-Mart, ranking the highest in both cases with a 4, is above all competitors. This is because they price reasonably with lower prices then all the competitors and their financial position is great. Target is ranked next with a rating of 3 in both price competitiveness and financial position. Target is known to have somewhat high prices and people tend to see that and want to go shopping elsewhere like Wal-Mart. Their financial position is not that great with the minor strength, but they are keeping up with their major competitor, Wal-Mart. Finally, Kmart is found to have a rating of a 3 in price competitiveness, and a rating of 2 in financial position. This is because Kmart does keep up with the prices of competitors, but they do get pricey in some areas. Their financial position is a minor weakness because of the Martha Stewart scandal and their bankru ptcy. Her products were being sold a lot until the scandal came out. Now they are pricing her products really low just to get the inventory sold. Next, product quality and customer loyalty is found on the competitive profile matrix to have a weighted score of 0.10. Target is found to have a rating of 4 in product quality. In customer loyalty they have a rating of a 3. This is because products found in Target tends to be top brand products, but at the same time, customers see these products somewhere else for a lower price and they tend to go to that place instead. Wal-Mart is ranked next with a rating of 3 in both product quality and customer loyalty. Wal-Mart may not have top brand products but the quality is fairly good. Customer loyalty is also ranked as a 3 because some people do like to get better products no matter how much it costs. Kmart, ranked last with a 2. This is because they do not carry quality products. People tend to go other places for what they want because of the better selection and quality. Finally, the last critical success factor is market share with a rating of 0.05. Wal-Mart and Target are both ranked 3 while Kmart is ranked 1. This is about right because as indicated by the total weighted score, Kmart is the weakest with 2.55. Targets total weighted score was in between but closer to Wal-Marts score of 3.15, and Wal-Marts was the strongest weighted score as 3.50. In conclusion of the competitive profile matrix, Wal-Mart as a competitor rises above both Target and Kmart. External Factor Evaluation An external factor evaluation matrix identifies the industry-wide opportunities and threats. Weights are assigned to the various opportunities and threats based on how well the subject company is responding to the threats and opportunities. The ratings are as follows: 1 = poor response, 2 = average response, 3 = above average response, and 4 = superior response. (Figure 2 in the appendix) The main opportunities that we identified were increasing internet shopping, ease of shopping, free trade zones, the Chinese market, and the value of the dollar. The main threats that we identified were technology making products obsolete, customer and employee theft, slow economy, the Chinese regulations, and not offering what the consumer wants. The opportunities were weighted .15 for internet shopping, .10 for ease of shopping, .10 for free trade zones, .10 for Chinese markets, and .05 for the weak dollar. The threats were weighted .10 for technology making products obsolete, .20 for customer and employee theft, .05 for the slow economy, .10 for the Chinese regulations, and.05 for not offering what consumers want. The weights and are representative of the importance the opportunities and threats presented to Wal-Mart. They were determined by considering the impact that each one has on the industry and how well Wal-Mart is conditioned to react to the situations presented. We felt that the most important factors were internet shopping, and customer and employee theft. These two factors are paramount to the industry and all of its counterparts success. If these factors are not addressed by the industry, bankruptcy is sure to follow. We rated each of the opportunities and threats based on how well Wal-Mart has been positioning itself in the market. Wal-Marts website has been a huge success with it contributing additional revenue to the bottom line; we rated this as a 4. The response to consumer demand for one-stop shopping has also been a success. The fact that you can buy a vast majority of everyday needs such as groceries, clothes, personal care products, electronics, among many other products shows the commitment Wal-Mart is making to the one-stop shopping idea. We also rated this 4. We felt that Wal-Marts continued expansion into foreign countries to be above average and thus rated it a 3. Because China is heavily regulated, we rated their response to the opportunities available in China a 2. This is still a very good score because it is very difficult for any firm to expand into China. Wal-Marts reaction to the dollar weakening has been above average because of its worldwide coverage. They have been able to take advantage of this economic factor with ease and we rated it a 3. The response to threats has been equally impressive. While technology is constantly making products obsolete, Wal-Mart has been able to position itself to be a positive avenue for selling all of the newest and innovative products. Wal-Mart suppliers definitely have a great opportunity for sales because of the vast audience that patronize Wal-Mart. We rated this as a 3. Employee and customer theft is inevitable in all industries. This was ranked as a 2 because Wal-Mart uses the same devices that the entire industry uses. The slowing economy has been a sour point to all industries as well. Wal-Mart has been able to limit its exposure by offering low prices and maintaining its market-leading share. We ranked this factor a 4. Again, because China is such a tough market to enter, we ranked their response to Chinese regulations a 2. The idea that companies offer products that consumers do not want is not uncommon. There have been thousands of products that have flopped after being introduced. Wal-Mart has been able to circumscribe their exposure by offering thousands of products across many different areas. We ranked their response to this a 4. The final score, 2.80, that was obtained from the external factor evaluation matrix shows that Wal-Mart is above average when reacting to opportunities and threats.