Beauty Beast Nature

Beauty Beast Nature Beauty and the Beast Romantic writers could be the Disney writers of â€Å"Beauty and the Beast.† Their â€Å"beauty† shows in their love of nature and their will to preserve it; the â€Å"beast† is not the writer but their audience. The readers were monsters in the writers eyes because of their lack of love and appreciation for Gods great creation, Mother Nature. William Wordsworths works, such as â€Å"The World Is Too Much with Us† and â€Å"Nutting,† show his love for nature and his will to protect it; he uses word play and creative approaches to show the deep appreciation he has for the beauty of nature. William Wordsworths â€Å"The World Is Too Much with Us† paints the perfect â€Å"beauty and the beast† portrait. New York comes to mind after reading this work. The world is too much with us; late and soon,†¦ The first line depicts everyone rushing to work because they are â€Å"late† and they also want everything as fast or as â€Å"soon† as they can get it. People have become very impatient and ignore or take out their anger on those around them. In this case nature has become abused and neglected. Getting and spending, we lay waste our powers: Little we see in Nature that is ours; Everyone wants to spend their hard earned money; however, they cannot spare ten minutes to take a walk through Central Park and reconnect with nature. The great appreciation of nature that our ancestors had is being lost. Our great power has been tossed aside or â€Å"wasted† as Wordsworth has put it. Line four: We have given our hearts away,†¦ shows how human have lost their love for nature. Wordsworth wishes we still had a dependant love for the earth. Humans once relied so much on the earth that they would never think to destroy it. Now our minds are focused on more materialistic things. †¦we are out of tune; It moves us not.—Great God! Our world is like an old piano playing out of tune when the world is not taken care of. Peoples actions create a cut in the earths skin that may never be repaired. Wordsworth, like other Romantic writers, expresses how upset he has become with people for building our nature over Mother Nature. This work also shows how much he loves the world, Mother Nature, and cannot understand why people do not recognize natures wonders that are right in front of their face. People today forget to â€Å"stop and smell the roses.† Wordsworth takes a different approach in â€Å"Nutting† to express his deep appreciation of nature, a more exotic approach. This work uses sights and sounds found in nature; however, their true meaning is hidden. The hidden forms of natural words used have a deeper meaning, more sensual or sexual. For example, phrases such as â€Å"†¦fairy water-breaks,† â€Å"dragged to earth,† â€Å"†¦shady nook,† and â€Å"†¦spirit in the woods† all have to do with some element of nature. When those phrases are paired with other phrases such as â€Å"†¦Through beds,† â€Å"†¦Forced my way,† â€Å"†¦Tall and erect,† â€Å"†¦virgin scene,† and â€Å"†¦Voluptuous† seem to give this work of an innocent young man venturing into the woods to gather hazel nuts a more sexual meaning. The following passage is a perfect example of Wordsworth mixing nature and sex. †¦but the hazels rose Tall and erect, with tempting clusters hung, A virgin scene! This work also shows harm as a way to save. For example, the young man broking the branch to let light hit the floor of the woods. The young man harmed the tree by breaking the branch; however, he saved many other plants and insects by allowing light to hit the floor of the woods. This has been depicted in the following passages from the work: †¦Then up I rose, And dragged to earth both branch and bough, with crash And merciless ravage:†¦ I felt slight pain when beheld The silent trees, and saw introducing sky. The young man could be seen as a â€Å"beast† for harming nature, but in this case he is not because he was saving other natural elements. â€Å"Nutting† not only shows Wordsworths love for nature in a plant and animal aspect but it also shows human nature. Humans are sexual and that is secretly expressed in the word choices Wordsworth used. Wordsworths appreciation for nature is shown in the â€Å"colorful† words he uses to bring the work to life. The Norton Anthology states Wordsworths works â€Å"Both insist that nature—the external world experienced through the senses and the containing pattern assumed beyond that world—offers the possibility of wisdom to combat the pain inherent in human growth.† That sentence combines all of Wordsworths ideas of the natural world with human nature or growth. He shows anger towards those destroying the worlds natural beauty; however, if destruction of natural beauty is needed to help another form of nature survive than destruction is called for.

A pleasurable environment

AN ASSESSMENT OF THE IMPACT OF POLICY AND LAW IN THE MITIGATION OF ENVIRONMENTAL CRIME.An person ‘s character is determined by his life status, it is no secret that the environment an single finds himself has an tremendous influence on his character, which could be either positive or negative. Our vision of holding a enjoyable environment is being ruined by actions committed by either persons, corporate organic structures or concern administrations that disrupt the peace and hygiene of our environment, these actions are referred to as environmental offense. ( House of Commons Environmental Audit Committee 2005, p.8 ) . An Environmental offense is an environmental issue several writers and authors have made effort to specify from their ain point of position. An environmental offense as defined by the Staffordshire Moor lands District Council ( 2009 ) is an improper act which ruin the visual aspect of some portion of the environment, it could take to pollution of the environment, wellness and safety concerns and it can hold a negative consequence on the enjoyment of our territory. Situ and Emmons ( 2000, p.3 ) refers to environmental offense as an inadvertence that violates the jurisprudence and attracts condemnable test and countenance. This offense endangers the safety of persons both physically, wellness wise and environmentally. Clifford ( 1998, p.26 ) believes that an environmental offense is an knowing act committed to potentially do injury to the ecological and biological systems of the environment and besides for the intent of procuring concern or personal benefit, While the Sixth study of the Environmental Audit Committee states that environmental offense comprises all offenses either formed by statues or developed under the comm on jurisprudence that relates to the environment. Environmental Investigation Agency ( EIA ) ( 2009 ) goes farther to specify environmental offense as the interruption of international pacts designed to command trade in substances harmful to the environment or bound trade in rare species or improper Acts of the Apostless which cause direct injury to the environment straight. Stratford -on-Avon District Council ( 2009 ) defines environmental offense as a type of anti-social behavior that affects the value of life of the community and environment where the offense occurs and enhances the fright of offense. This is similar to the definition of environmental offense by Warwickshire Council ( 2009 ) as activities that are against the jurisprudence and are harmful to the quality of unrecorded and the environment. Environmental Crime may include the undermentioned and many more: Fly tipping Graffiti Littering Fly-posting Abandoned Vehicles Dog fouling Panpipes Vandalism Noise Pollution Extra Side Waste House holders Duty attention Wild life Crime Pollution Crime Improper waste disposal Oil spills Dumping into Oceans, Streams, Lakes or rivers Improper handling of pesticides or other toxic chemicals Burning Garbage Falsifying Lab informations pertaining to environmental ordinance Sourced from assorted writers: Daventory District Council ( 2009 ) , Interpol ( 2009 ) , LawyerShop ( 2008 ) , Straford – on- Avon District council ( 2009 ) , Working Borough Council ( 2008 ) . These are really of import environmental issues that affect our environments merchandise and place. Here one can place several inquiries: Can the most common of these offenses be defined? What chance exists for an environment in which these offenses occur? What has be done by the Law to if non wholly eliminate these offenses at least cut down their happening drastically? What can I make to assist cut down environmental offense in my environment? Violators of the environmental jurisprudence are normally charged with condemnable mulcts, gaol clip, test or other penalty ordered by the local governments. Although fixed punishment mulcts are used as bar to large companies from go againsting environmental Torahs and policy without the hazard of sedate pecuniary penalty, most large companies might happen that noncompliance is more expensive than obeisance to the jurisprudence, while jail clip may be the best manner to penalize persons who participate or commit environmental offense. ( Lawye r store 2008 ) . The Environmental Protection Agency is in charge of enforcement over environmental jurisprudence misdemeanor. ( Lawyer Shop 2008 ) . There are offenses that wild occur in our environment which have largely been considered by bulk as environmental offenses, offenses such as: Fly tipping: This could be referred to as illegal dumping of family waste such as old house clasp contraptions ( electric refrigerators, rinsing machines, carcase of dead animate beings, old Surs, vehicle parts ) oil, asbestos sheet and all kind of chemicals are non left out. ( Environmental Agency 2009 ) . This offense cost land proprietors an estimated 100 million annually and local governments an estimated 44million annually to clean up. ( Environmental Agency 2009 ) . It besides attracts a punishment a upper limit of two old ages imprisonment and or an limitless mulct ( Liver Pool City Council 2008 ) every bit good as & A ; lb ; 50,000 in Magistrate Court. ( Environmental Agency 2009 ) . There is a national fly tipping database funded by the authorities which is managed by the environmental bureau, it is known as fly – gaining control, entirely for the intents of undertaking fly- tipping. Graffitti: It is referred to as an act of hooliganism which is on the addition, it entails written, painted or scratched on other people ‘s belongings. Persons every bit good as packs leave a signature grade where they visit such as Bridgess, motor ways, public topographic points, and overseas telegram equipment boxes, unoccupied edifices are non left out. ( Solihull Metropolitan Borough Council 2009 ) . Upon strong belief under subdivision 1 of the Criminal Damage Act 1971 the punishment is 10 old ages imprisonment. This offense is so serious that it can be heard in either a Magistrate or Crown Court. ( Solihull Metropolitan Borough Council 2009 ) . A fixed punishment of & A ; lb ; 75, which will be reduced to & A ; lb ; 50 if received within seven yearss from the day of the month which the punishment was issued. ( Solihull Metropolitan Borough Council 2009 ) . Dog Fouling: This is the act of go forthing your Canis familiaris or the Canis familiaris under your attention to foul on tracts and unfastened infinites, with cleaning up after it. This Canis familiaris foul when in contact with the human oculus can do sightlessness ; people might step on it and transport the crud into their places. This offense attracts a fixed punishment notice of & A ; lb ; 50 which you must pay to the council within 14days, else you will be prosecuted. ( Gateshead Council 2008 ) . Persons can assist to look into environmental offense by study an environmental offense in their community to the local governments through their web sites.

Case Study Mercy Corps Essay

Introduction At the fourth biennial Mercy Corps leadership conference in November 2006 executive leadership described the well-known, internal complications at Mercy Corps as a large organization ($194 million budget in 2006) that â€Å"has to focus on two core areas: international relief and development† (Grossman & King, 2008). The status of the organization was examined in detail by the Harvard Business School case study and a number of problems were revealed. This analysis is based on the information provided by the case study and addresses four issues. The first section discusses three forms of differentiation and how they are relevant to Mercy Corps. The second section addresses the five different forms of integration in an organization. The third section evaluates the use of differentiation and integration in the organization and the success of differentiation and integration. In the last section I examine whether Mercy Corps is a mechanistic organization or organic organization. Changes in Differentiation As discussed in class and in assigned reading for PUB M 511 there are three forms of differentiation. This is essentially how an organization divides its labor into distinct tasks and then coordinates them (Hodge & Anthony, handout). Hodge & Anthony have defined the three forms of differentiation as: 1. Horizontal differentiation – differentiation of work into tasks at the same level of organization. 2. Vertical differentiation – division of work by level of authority, hierarchy, or chain of command. 3. Spatial differentiation – refers to geographical dispersion. All three forms of differentiation are relevant to key issues in the Mercy Corps case. Horizontal differentiation is clearly evident when the four program directors formerly supervising 40 country directors were replaced by six regional program directors. Effectively, a new department was added and the reporting structure was changed so that country directors were now reporting to their respective regional director who reported to the Portland, OR HQ and not the program directors in Portland, OR. Because the reporting structure was changed the country directors now had one more step before reaching the HQ. On the other hand country directors now had a faster response rate for questions that were not critical. Vertical differentiation was also apparent at Mercy Corps. One example of vertical differentiation at Mercy Corps was Zimmerman’s position. Originally program directors reported to the president but now regional program directors (replaced the four program directors) reported to Zimmerman. This removed the president from the regional program directors; it also helped the president focus on strategic initiatives and become the face of the organization instead of the day-to-day administrative functions. Mercy Corps had a strong sense of spatial differentiation. With 3,000 team members spread out across the world the organization had a strategy that kept the teams abroad aligned with the mission. All teams, despite their geographical locations, align their country goals to their greater vision and mission of Mercy Corps. Although country directors get great autonomy in how they run their program and where their funding comes from they still are working towards a shared goal. Changes in Integration Many of the forms of integration were significant in the Mercy Corps case. As defined by Hodge & Anthony in the handout provided in class the Five Forms of Integration are defined as: 1. Formalization – utilization of formal rules, policies and procedures. 2. Centralization of decision-making or authority – refers to the place in the hierarchy where decisions are made. 3. Span of Control – refers to the number of immediate subordinate positions a managerial position controls or coordinates. 4. Standardization – integration can be achieved through a process, input (human resources and materials), and output standardization. 5. Nonstructural means for integration – refers to the coordination mechanisms including liaison roles, teams, culture, information systems, and communication processes. The Mercy Corps case starts out using formalization at the country director – president. Communication channels are well defined and employee and staff know whom they report to. After the addition of regional directors another layer was added to the communication process. The policies and procedures were formalized and understood by all employees and staff and followed so that funding and program goals could be met. Centralization was not evident at the organization level. It was evident at the country level, where country directors were given permission to run their programs in the most efficient way for that country. Span of control was reasonable for the staff of Mercy Corps. Previously the four program directors had 40 direct reports. This changed when six regional program directors. While span of control was manageable the standardization process was not. The human resources team small compared to other organizations of the same size. The human resources team also was based primarily out of the Portland, OR office with one person in Scotland. In terms of non-structural means for integration, Mercy Corps has liaison roles and communication processes in place. Mercy Corps also has a culture that is adapted by all teams across the globe. Appropriateness of Use of Differentiation and Integration & Success with Differentiation and Integration Mercy Corps used differentiation and integration in a successful way. By leveraging both the highs and the lows of differentiation and integration the organization can function at high operational and strategic level. Mechanistic Organization vs. Organic Organization Mercy Corps as a whole runs like a very mechanistic organization. While the country offices run more similarly to a organic organization. As defined in the handout by Hodge & Anthony a mechanistic organization is: high vertical and horizontal complexity, high formalization, narrow spans of control, high centralization and high standardization. While a organic organization is defined as: low vertical and horizontal complexity, low formalization, broad spans of control, low centralization and low standardization. Conclusion In conclusion, Mercy Corps embodies high differentiation and integration at an organizational level. At the field/country level it seems to operate more on a low differentiation and integration. Therefore, the organization as a whole is run as a mechanistic organization and the field offices are run more organically with more autonomy. References Grossman, Allen S. , and Caroline King. â€Å"Mercy Corps: Positioning the Organization to Reach New Heights. † The Harvard Business School (2008): 1-24. Print. Hodge, Anthony and Gales. Organizational Goals and Effectiveness, Organization Theory: A Strategic Approach. 6th Ed. , 2002. Print. Hodge, Anthony and Gales. The Nature of Structure and Design, Organization Theory: A Strategic Approach. 6th Ed. , 2002. Print. Morgan, Gareth. Images of Organization. Thousand Oaks: Sage Publications, 2006. Print.

The Toys And Games Industry In The UK Example For Free - Free Essay Example

Sample details Pages: 13 Words: 3916 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Games Workshop PLC (GAW) and Hornby PLC (HRN) are UK based companies operating in the Toys and Games Industry under the leisure market. HRN is a UK brand leader in the model railway hobby. Frank Hornby, the companys founder, established Meccano Ltd in 1907 which become the classic toys of all time. Don’t waste time! Our writers will create an original "The Toys And Games Industry In The UK Example For Free" essay for you Create order In 1920 it introduced the toy trains and thereafter, the innovations followed. In 1986 it became a public company and now it is just called Hornby and rightly maintains the position as a leading model railway manufacturer for more than 20 years. GAW is the most successful and largest futuristic battle-games and tabletop fantasy company in the world. The business is about helping mighty armies to meet headlong on the field of battle. It produces the most successful table top fantasy, Citadel miniatures and futuristic battle games. PART -A: Financial Analysis of HRN and GAW. To evaluate the current Financial Performance and Financial Position of HRN and GAW, Ratio analysis is carried out over the last two accounting periods. Ratio is the comparison of one figure to another relevant figure or figures. According to Myers, Ratio analysis of financial statements is a study of relationship among various financial factors in a business as disclosed by a single set of statements and a study of trend of these factors as shown in a series of statements. The Ratios are distributed as: Financial Performance Financial Position Profitability Efficiency Liquidity Gearing Each of these 4 ratios is justified why it is chosen for analysis and is benchmarked against Time (to establish trends), Industry (to compare performance against competitor) and Expectations (to see if targets have been met). A. PROFITABILITY Profitability is the ability of a company to generate income higher than its expenses and other related costs in order to provide returns to its owners, investors and lenders. Profitability ratio is expressed as the relationship between profits made and other key figures from the income statement and balance sheet of a company such as capital employed, sales, etc. Table 1: SL.NO. PROFITABILITY RATIOS HRN 2010 HRN 2009 GAW 2010 GAW 2009 1. Return on Capital Employed (ROCE)% 10.99 15.68 28.12 14.44 2. Return on Shares (ROS)% or Net Profit Margin 8.06 9.94 12.74 5.99 3. Return on Share-holders funds (ROSF)% On PBT 14.24 19.3 29.15 19.84 On PAT 10.06 13.35 27.27 14.61 The Profitability Ratios are calculated to find out whether the Profit made by the company is satisfactory or not. 1. Return on Capital Employed (ROCE) The ROCE is the primary measure of Business Performance and it compares the profit made before deducting interest and tax (PBIT) with the overall capital used to produce that profit. ROCE = Profit before Interest and Tax x 100 Capital Employed Comparing between the years 2009 and 2010, the ROCE for HRN has reduced by 4.69% and it currently is 10.99% whereas in GAW, it has increased by 13.68% and now stands at 28.12%. Between the two companies, the ROCE for GAW is higher than HRN by 17.13% indicating better returns on capital employed. This is because GAW has repaid most of its loans of 2009 from the profits made and has managed to raise a higher equity on their own which has increased it ROCE in 2010. The average returns in UK is expected to be around 10% of which the investor target or the bank deposit rate is 5% and the risk premium is 5%. Therefore, GAW has earned very good returns compared to HRN. 2. Return on Sales (ROS) or Net Profit Margin (NPM) The ROS measures the Operational Performance and it relates the operating profit (PBIT) to the sales incurred during that period which estimates the percentage of profit earned on every 1 pound of sales made. ROS = Profit before Interest and Tax x 100 Sales In 2010, the ROS for HRN has gone down by 1.88% and is 8.06%; in GAW it has increased by 6.75% and is 12.74%. From these figures, it is estimated that for every one pound of sales made, GAW makes a profit that is 4.68p higher than what HRN is achieving. This is also because in 2010, the revenue and profit made by GAW is twice and thrice respectively as much as in HRN. 3. Return on Share-holders Funds (ROSF) or Return on Equity (ROE) The ROSF or ROE shows how much profit a company has earned in comparison to the total amount of share-holders equity. It is a narrower assessment of profitability compared to ROCE since the loan capital is not involved here. It is computed based on a) Profit before Tax (PBT) b) Profit after Tax (PAT) ROSF = PBT x 100 (OR) PAT X 100 (Share Capital + Reserves) (Share Capital + Reserves) A high ROSF indicates that the company has more profit available for its shareholders. In reference to PBT and PAT, HRN in 2010 shows a decrease of 5.06% and 3.29% respectively whereas GAW shows an increase of 9.31% and 12.66% respectively. GAW shows a steady increase over time and has achieved higher returns (29.15% 27.27%) on shareholders funds in 2010. B. EFFICIENCY. Efficiency Ratios measures the efficiency with which particular resources of the business have been utilised. An improvement in this ratio will lead to improved profitability in the company. Efficiency ratios are calculated to find out whether the stock and debtors of the company are too high. Table 2: SL.NO. EFFICIENCY RATIO HRN 2010 HRN 2009 GAW 2010 GAW 2009 1. Stock/Inventory Turnover Ratio (Times/year) 2.65 2.24 3.03 3.36 2. Stock Period (Days) 138 163 121 109 3. Debtors/Trade/Accounts Receivables (Days) 75 78 29 29 4. Asset Turnover 1.36 1.58 2.21 2.41 1. Stock or Inventory Turnover Ratio: (STR) The STR measures the efficiency of the business in managing and selling its stock which also helps to increase sales. It is expressed as a ratio between the cost of goods sold (COGS) and stock. The faster the inventory sells, the fewer funds are tied up within the company. Stock Turnover = Cost of Goods Sold (times per year) Stock Although HRN shows an increase in stock turnover ratio from 2.24 to 2.65 times/year in 2010, it is still lower than that of GAW which has reduced from 3.36 to 3.02 times/year. HRN shows that their stock turnover is a little over twice a year whereas GAW has a better stock turnover that is three times a year. 2. Stock Period: The Stock Period calculates the average time that stock is held within a firm. The higher the stock-turnover ratio is; the lower the stock period will be. Stock Period = 365 Days Stock Turnover HRN shows a reduction of 25 days in 2010 whereas GAW shows an increase of 12 days. However, GAW has been maintaining a low stock period compared to HRN which proves their efficiency in stock management and provides possibilities to consider future demand, shortages, price rise, etc. 3. Debtors/Trade/Accounts Receivables: Every firm is concerned about how long it takes for its customers to pay the amounts owed by them as it is directly related to the cash flow of the business. This waiting period is known as Debtors period. Debtors Period = Debtors x 365 days Sales The debtors period for HRN has decreased by 3 days in 2010 and is 75 days while GAW maintains it at a lower period of 29 days for both years. A company will normally expect this period to be within 30 days; GAW exhibits better performance here. CASH OPERATING CYCLE: This cycle is the addition of Stock period and Debtors Period which calculates the total time taken for stock to be converted into cash (Liquidity position). Efficiency Ratios Company/Year Games HRN 2009 2010 2009 2010 Stock Period 109 121 163 138 Debtors Period 29 29 78 75 Total in days 138 150 241 213 Indication of liquidity for the company (in months) 4.6 5 8.03 7.1 HRN has reduced the total period from 8 to 7 months in 2010; GAWs period has increased by half a month (from 4.5 to 5) and its still better than HRN. 4. Asset Turnover The Asset Turnover ratio portrays how effectively the assets of a company are being used to generate sales. Asset Turnover = Sales Capital Employed In HRN, for every 1 pound of capital employed, GBP 1.36 worth of sales has been made in 2010 and likewise in GAW, it made GBP 2.21. Both companies show a non-significant decrease while GAW continues to produce a higher asset turnover compared to HRN. The relationship between Profitability and Efficiency: This relationship exhibits the overall returns on funds invested into a business and is determined by the profitability of sales and by efficiency in the use of capital expressed as follows: ROCE = ROS X Asset Turnover = PBIT x Sales = PBIT Sales Capital Employed Capital Employed Sl. No. Company/Year ROS x Asset Turnover = ROCE/Result% (Approx) 1. HRN 2009 9.94 x 1.58 15.70 2. HRN 2010 8.06 x 1.36 10.96 3. GAW PLC 2009 5.99 x 2.41 14.44 4. GAW 2010 12.74 x 2.21 28.15 The Asset Turnover in GAW is close to twice as much as in HRN in 2010 and although an insignificant decrease is noticed in both companies, the primary reason for changes in ROCE is because of relative changes in ROS. Since the ROS for HRN has decreased to 8.06% from 9.94%, its ROCE has decreased to 10.96% from 15.70%. But in GAW, the ROS has increased by 6.75% thereby leading to a significant increase of 13.71% in its ROCE and has hence produced very good returns of 28.15% at the year 2010. C. LIQUIDITY Liquidity Ratios finds out the ability of a business to meet its current liabilities by converting assets into cash quickly in-order to pay back the debtors. Table 3: SL.NO. LIQUIDITY RATIO HRN 2010 HRN 2009 GAW 2010 GAW 2009 1. Current Ratio 2.11 1.48 2.04 1.74 2. Liquidity/Acid Test/Quick 1.38 0.72 1.49 1.14 1. Current Ratio This ratio indicates whether the company has sufficient current assets to pay its immediate liabilities within the same accounting period. Current Ratio = Current Assets Current Liabilities The higher the ratio, the more liquid the business is considered to be. The ideal current ratio is suggested to be 2 times or 2:1. HRN has shown an increase in its current ratio from 1.48:1 to 2.11:1 and it is slightly higher compared to GAW which has increased from 1.74:1 to 2.04:1. Therefore both companies have the ability to pay its liabilities and have been increasingly stable over time and has met the standard expectation of 2:1. 2. Liquidity Ratio or Acid Test/ Quick Ratio: For many businesses, Inventory cannot be quickly turned into cash. So, it is excluded from the current assets for calculations. If the ratio falls below 1:1 then the company is having some liquidity problems. Liquidity Ratio = Current Assets Inventory Current Liabilities HRN shows an increase from 0.72:1 to 1.38:1 in 2010 whereas in GAW, it has increased from 1.14:1 to 1.49:1, which is slightly higher than in HRN at 2010. This change is caused due to the difference in stock levels. Since the ratios have not fallen below 1:1 as expected, both companies show stable liquidity positions although HRN might have faced some problems in liquidity in the year 2009. D. GEARING Gearing means borrowing and it measures how much percentage of the capital employed is borrowed from lenders or the bank. Interest is charged on capital repayments and if a company borrows heavily, it risks becoming insolvent. The advantage of gearing is to increase the returns to owners because the loan interest rates are relatively low compared with the returns that a business can earn. Gearing is calculated to find out whether the company has the ability to repay its loans or debentures. Table 4: SL.NO. GEARING RATIO HRN 2010 HRN 2009 GAW 2010 GAW 2009 1. Capital Gearing 22.82 19.17 3.53 27.23 2. Interest Cover 7.42 8.57 43.72 4.99 1. Capital Gearing: This ratio measures the contribution of long-term borrowing to the capital employed. Capital Gearing = Long-term Borrowings x 100 Capital Employed A low Capital Gearing is preferred. Gearing in HRN has increased by 3.65% in 2010 and is 22.82% whereas in GAW it has greatly reduced to 3.53% in 2010 from 27.23% in 2009. GAW has a very low gearing ratio comparatively and thus its interest payments will also be low. A company is expected to have a gearing ratio of not more than 30%. Although both companies are in a good financial position, GAW is positioned extremely well. 2. Interest Cover This ratio measures the amount of profit available to cover the interest payable. The lower the interest cover the higher the risk of inability to repay the loan along with its interest charges. It is measured as the number of times that the interest could be paid out of the profit earned. Interest Cover = Profit before Interest and tax (times/year) Interest Payable The interest Cover for HRN has decreased from 8.57 times to 7.42 times in 2010 because of the decline in its profitability and the slight increase in its borrowings; in GAW, it has shot up to 43.72 times in 2010 from just 4.99 times in 2009. GAW has a very high Interest Cover and is in a safe position. This is because of the high profit it made, which has enabled the company to pay most of its loans. A company is expected to have a minimum cover of 3 times; 7 times or greater is considered good. If the company is stable over time, the bank will accept lower covers, if its volatile or unpredictable in terms of t heir profitability; the banks will expect standard covers. Therefore, GAW shows that it is doing extremely well in terms of financial position. Thus, the above analysis made using ratios proves that GAWs financial performance and position is better than HRNs. PART B: Industry Analysis and future prospects for industry and investment. GAW and HRN operate in the toys and games (TG) market which is divided into three primary sectors: games consoles, games software and traditional toys and games. The games consoles market consists of all console sales by Nintendo, Microsoft and Sony including handheld systems. The software sector covers all console and PC games. Traditional toys include action toys, activity toys, dolls, games/puzzles, infant/pre-school toys, ride-ons, vehicles and other miscellaneous toys and games. 1. Industry Information: The UK market for TG enjoyed year-on-year growth until a decline in revenues in 2008, followed by a deeper fall in 2009. Sales in the market declined in 2009, reflecting the downturn in the wider UK and global economies. Retail competition has helped to keep prices lower, with the supermarkets offering toys as loss leaders and Internet operation comparisons bringing increasing transparency to the market. The TG market is in line to recover from 2010; early company results for the first quarter indicate a more positive performance. The rise in the under-10s population and the eventual economic upturn will drive growth in sales. The market condition is driven by a number of factors: The trade has long been habituated to declining numbers in its target market, but will now benefit from a higher fertility rate. Tougher economic conditions are likely to mean lower volume sales, but could benefit sectors perceived to offer better value such as games and puzzles. https:/ /academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429664?select_section=429665HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429664?select_section=429665anchor=atom/display/id=429664?select_section=429665 The window of childhood may have shrunk as kids move onto adult interests faster, but the toys and games market has so far proved resilient, although that may not remain so. Old favourites are gaining new fans through nostalgia, as well as the belief that they have proven their worth and offer real quality and value. Christmas is still the big event, accounting for around half of sales, but the trade would benefit from building up sales across the rest of the year. https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200HYPERLINK https://academic.m intel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429662?select_section=429664HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429662?select_section=429664anchor=atom/display/id=429662?select_section=429664 2. Industry Analysis using SWOT: STRENGTHS: Parents support many toys as a way to learn through play. Regular infusion of new products refreshes the market. Awareness of licensed products boosted by extra visibility in other formats (eg TV and film, books, comics, clothing). WEAKNESSES: Kids tastes can be highly unpredictable and sudden fads cause problems in meeting demand. But with no must-have toy or game then sales can be sluggish. Competition growing from more forms of digital media. https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429666?select_section=429667HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429666?select_section=429667anchor=atom/display/id=429666?select_section=429667 OPPORTUNITIES: The trend of buying a toy for a new baby increased from 13% in 2003 to 26% now. The more reasons to buy such as childrens parties or to appeal to the traditional image of a happy family all playing a game together directly translates into sales. In an already strong market these views suggest toy companies and retailers could benefit still further by stressing aspects such as the durability and adaptability of their products. https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429674?select_section=429675HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429674?select_section=429675anchor=atom/display/id=429674?select_section=429675 THREATS: Sports and hobbies are the other growth area for 7-10s, meaning sales opportunities for products such as craft materials, skateboards, train sets and models. All the major direct competitive sectors such as magazines, video games and books are doing well, showing kids have a great capacity for many forms of entertainment. https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429665?select_section=429666HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429665?select_section=429666anchor=atom/display/id=429665?select_section=429666 3. Future prospects for industry: In todays unfavourable economic conditions, consumers will choose more carefully. They will be increasingly looking for games and toys they think deliver good value over time. In the longer term the market will continue to benefit from broader underlying factors as well, including childrens enjoyment of toys, their urge to collect, parental desire to give their children pleasure and help them learn, film and TV influence, and a growing child population. However, is real longer-term growth attainable? On balance yes. But manufacturers could do more to ensure sound growth and their own security by ensuring they keep in step with older childrens changing attitudes, by reducing their reliance on licensed product, and developing high-quality and innovative products whether for their own ranges or for licences. https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200 anchor=atom/display/id=429666?select_section=429669HYPERLINK https://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280200anchor=atom/display/id=429666?select_section=429669anchor=atom/display/id=429666?select_section=429669 UK sales of toys, 2003-13  £m  £m at 2008 prices ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬m 2003 2,054 1,756 2,969 2004 2,081 1,850 3,067 2005 2,100 1,956 3,072 2006 2,142 2,045 3,142 2007 2,187 2,143 3,197 2008 (est) 2,078 2,078 2,826 2009 (fore) 2,023 2,055 2,710 2010 (fore) 2,073 2,143 2,819 2011 (fore) 2,123 2,239 2,887 2012 (fore) 2,158 2,347 2,934 2013 (fore) 2,201 2,493 2,993 Prospects for investment: Investor ratios are used to assess the investors returns on their investment. For this purpose, the Earnings per Share (EPS) and the Dividends per share (DPS) are used in calculation. EPS: It is the earnings generated by the business, available to its shareholders and compares profit after tax with number of shares in issue. DPS: This ratio compares a firms dividends with the number of shares receiving the dividend. Not all companies pay dividends. SL. NO RATIO HRN GAW 2010 2009 2008 2010 2009 2008 1. EPS (p) 9.75 11.2 16.2 48.4 17.82 2.4 2. DPS(p) 5 2.7 8.5 25 0 0 SL.NO. INVESTMENT RATIO HRN GAW 2010 2009 2008 2010 2009 2008 1. Dividend Payout% 51.3 24.11 52.63 51.65 0 0 2. Dividend Yield% 3.96 3.97 4.49 7.23 0 0 3. Price Earning (p) 12.91 6.07 11.7 7.15 11.73 72.5 Table 5: 1. Dividend Payout (DP) It measures the proportion of profit that a company pays out to shareholders in the form of dividends. DP = (DPS/EPS) x 100 Over time, HRN has not been stable showing sharp decline and incline; GAW did not pay dividends for 2 years and started in 2010. The average DP in UK is 50%; both companies are paying reasonable dividends. 2. Dividend Yield (DY) It measures the rate of return that an investor gets by comparing the DPS with the market share price. DY = (DPS/Share Price) x 100 The rise or fall in the DY is indirectly proportional to the share price. The DY for GAW is higher than HRN. 3. Price Earnings Ratio (P/E) It relates the share price to the EPS and measures the market/investors confidence in the future of the company. PE = (Share Price/EPS) HRN shows better P/E than GAW which is because of the differences in share price; share price depends on the demands and supply levels in the market. 4. Future Prospects for investment: GAW- The effort put into streamlining the business is already reaping huge rewards, and with the focus shifting to sales improvement, operational gearing means further earnings progress is likely. On a forecast PE ratio of 10 and yielding nearly 6 per cent, the shares are a buy. (Reference: https://www.iconline.co.uk) Hornby have not been so lucky and are recovering from the recession and problems it encountered with its suppliers. However, HRN said it was seeing an early pickup in demand ahead of Christmas based on the hit film Toy Story 3 and producing toys for the 2012 Olympic Games. HRN Earnings are 1.2p higher at 11.9p thereby producing a PE ratio of 12. The dividend is forecast to rise from 5p to 5.7p and to 7p in 2011-12. The shares remain good value backed by some famous toy brands and rising sales via supermarkets. (Reference: https://www.iconline.co.uk MARKET FORECAST: GAW Forecasts (table a) Year Ending Revenue ( £m) Pre-tax ( £m) EPS P/E Div Yield 31-May-11 128.85 17.20 39.80p 11.1 27.46p 6.2% 31-May-12 132.90 18.30 41.75p 10.6 29.96p 6.7% (Reference: https://www.digitallook.com) HRN Forecasts (table b) Year Ending Revenue ( £m) Pre-tax ( £m) EPS P/E Div Yield 31-Mar-11 68.30 6.40 11.90p 13.2 5.70p 3.5% 31-Mar-12 74.50 7.80 14.60p 10.8 7.00p 4.3% (Reference: https://www.digitallook.com) Market Data for GAW HRN (table c) (Reference: https://www.digitallook.com) GAW HRN Currency UK Pounds Share Price 437.50p 155.50p Change Today -5.00p -2.00p % Change -1.13% -1.27% 52 Week High 450.00 172.00 52 Week Low 246.50 113.00 Volume 3,050 23,281 Shares Issued 31.14m 37.99m Forecasts predict that investing in GAW will be better than in HRN. PART -C: Advice on Investment Decision. 1. Assumption of Stephens attitude to risk: In the event of choosing between GAW and HRN, we assume that Stephen will invest in the company that maintains higher profitability in the industry and earns better returns to its shareholders in spite of economic conditions that lead to changes in the share price regularly and also avoiding the risk of large borrowings which may lead to inability of repayment eventually resulting in lower returns and dividends or no dividends at all. 2. Advice on Investment: HRN has got good prospect for growth in the years to come. However, it is not as stable as GAW and comparatively has shown lower performance and position levels. Its producing toys for the Olympics in 2012 will definitely boost its Revenue but what happens after that? Unless it increases its revenue by either increasing the selling price or reducing operating costs, etc, profits made at the moment will not earn returns greater than those in GAW. Therefore, based on the financial and industry analysis, it is strongly recommended that Steven should invest with GAW, considering his approach to risk. Over the last few years GAW has shown a steady and considerably good increase in the area of profitability and has proved itself as an efficient company. It was able to pay back almost all of its debts within a short duration and its liquidity position is three times a year. The company has shown stability over the years and this reflects good management, leadership and financial streng th. Hence, Stephen should choose to invest in GAW rather than in HRN, considering the forecasts made on investments.