High Employee Turnover Rate Within Domino’s Pizza in

Conceptual: This paper will inspect the high representative turnover rate in Domino's Pizza. Worker turnover credits to terrible culture and flawed HR the board inside the organization. However, this paper proposes techniques that could prompt an expanded in representative consistency standard, prescribes to help the high turnover, and worker oversight systems joined with different procedures in regards to budgetary motivating forces. This paper additionally gives suggests, for example, legitimate arranging, implementation of guidelines and fitting preparing, to make a work environment that suits every one of its representatives. This paper acknowledges that Motivations are the very purposes for people’s contemplations and practices and that inspiration is an impact that represents an individual’s heading, force, and perseverance of exertion toward accomplishing an objective. Inspiration is the readiness to apply elevated levels of exertion to authoritative objectives, adapted by the effort’s capacity to fulfill some individual need. This need is the inside express that causes certain results to seem appealing. Inspiration is an impact that represents an individual’s bearing, force, and steadiness of exertion toward accomplishing an objective (Robbins p. 175). Domino's Pizza has consistently searched for better approaches to remunerate their colleagues. For example, Domino’s engages its laborers with an establishment wide pre-game event that is held once per year. Domino's started the â€Å"World's Fastest Pizza Maker† rivalry in 1982, regarding the individuals who best embody the organization's way of thinking of keeping productivity in the store; to permit adequate time for safe conveyance of the items to the shopper. Provincial rivalries are held over the world to decide the contenders with the quickest occasions. Domino's Pizza gives the champ $10,000 money to whoever gets the quickest time. Shopping binges, excursion trips, and even vehicles are likewise compensated at this occasion. However, Domino’s pizza perceives the most ideal approach to make progress is to initially guarantee the fulfillment of its colleagues. Treating colleagues extraordinarily well is only one way they is focused on putting Domino’s individuals first. Domino’s is pleased to give a reasonable and far reaching rewards bundle (dominos. com). Advantages which incorporates: Competitive pay rates, Medical, dental and vision inclusion, Health Spending Account, Prescription Drug Benefit, Team Achievement Dividend (execution extra), Partners Foundation (colleague help) ,Above-normal paid occasion program, 401(k) Matching Program, Employee stock buy rebate plan, Company-paid disaster protection, Tuition repayment, National corporate limits, Legal administrations, in conclusion Adoption help. Despite what might be expected, with all that Domino's Pizza gives to their â€Å"team member† this year representative turnover was 260%. Despite the fact that, in present day society, inspiration is as yet thought to be a petulant issue inside administration hovers and inside organizations. It is accepted that effective organizations have representatives who are propelled and put stock in the mission. Despite the fact that, a few scholars like Herzberg accept that cash is certifiably not a positive helper, an absence of it can de-inspire. I accept pay frameworks are intended to persuade workers. Money related prizes are viewed as a key factor in work environment inspiration; notwithstanding, extra factors, for example, work gratefulness, assortment, and security stay similarly as significant. These variables can best be depicted as work results which are a consequence of representative data sources. Adams’ value hypothesis distinguishes the two data sources and results as the two essential segments in the representative manager trade (Kinicki and Kreitner 2007, p. 242). Be that as it may, recollect that pay is just a single component of inspiration and will work best where the board concentrates on growing great administration and management, planning employments, and arranging work gatherings to make occupations fulfilling. Giving criticism to set up about their presentation alongside preparing and advancement makes compelling courses of action for correspondences and meeting inside the organization. No different, Domino's Pizza has confronted a high worker turnover pace of 200% this year. The organization's turnover rate arrived at 199. 9% in 2009. In the food business, this turnover rate isn't bizarre, as turnover of 200% rate has been enlisted by different organizations in this field. Domino's CEO began to concentrate on the organization's HR, by actualizing certain techniques, such as: improving head supervisors' work environment quality, improving faculty determination, enlistment, and maintenance strategies, or utilizing money related impetuses. In any case, the key factor in holding workers is to guarantee that there is significant degree for work improvement. Since people vary in their inspiration drive, there isn't right or wrong technique that will uphold a profitable workforce. An individual will consider that the person is dealt with reasonably on the off chance that the person sees the proportion of their contributions to their results to be identical to people around the person in question. The value hypothesis of inspiration depends on the way that individuals are roused first to accomplish and afterward to keep up a feeling of value (wikipedia. organization). Value alludes to the allotment of remunerations in direct equality to the commitment of every representative to the association. Inside Domino’s, every worker sees their commitment in varying levels. For instance, pizza-creators and phone administrators give comparable contributions as conveyance drivers; be that as it may, the conveyance drivers get less monetary prize making disparity. Mcshane and Travaglione (2007, p. 154) propose that representatives will encounter a passionate pressure when they see imbalances, and, when adequately solid, the strain rouses them to decrease the disparities. There are various techniques that a worker can utilize to address disparity sentiments. These incorporate lessening inputs, expanding results, evolving recognitions, or changing the correlation other. Eventually, if these techniques don't get the ideal results, a worker will become de-propelled and may stop their occupation (Mcshane and Travaglione p. 154). An organization’s representative turnover doesn't exclusively rely upon the contribution to-yield proportion alone †it likewise relies upon the examination between the contribution to yield proportions of workers satisfying a comparative position, Chapman (2007). A clarification of representative data sources and yields will be utilized to distinguish the apparent value or imbalance of a worker inside Domino’s. This will give a superior comprehension of how Adams’ hypothesis influences worker turnover.

The Factors Affecting The Working Capital Requirements Accounting Essay

For what reason does planning so of import for an association. It is an arranging and instructing organizations for an organization. This instrument works effectively just when it is executed with due concern. The spending plan is non just a cost administering strategy yet next to an inherent segment in footings of arranging and control portions of an organization. It ever intends to achieve authoritative closures what's more spurs the HR concerned. The way of array required data thus picking a suitable budgetary framework is basic for the accomplishment of budgetary framework. The viable budgetary assault is one that a situation where the single points and A ; closes coordinate the authoritative points and A ; closes. It is called end congruity. To ensure end congruity it is a necessity to ensure solid commitment of administrative degree toward the path method. There are various sorts of spending plans to get by with various examples. An association may use an ordinary budgetary framework and may at some point request to trade over to another budgetary framework to run into its requests. It is non a straightforward endeavor to request adjustment in a spending framework. An association needs to go up against certain complexnesss in the signifier of obstructions to change by the representative of the association, adjustments important in the present emotionally supportive network due to modify in its budgetary framework. The level of truth in measuring the grosss and A ; costs in the spending time frame is immensely of import for a fruitful financial plan. There are a figure of measurable procedures which might be fit in ascertaining the great beyond figures to be obliged in spending plans. The standard of planning is to provide guidance an idea of how an organization is run intoing their closures, regardless of whether or non the disbursals are in accordance with planned degrees, and how great controls are working. Properly utilized, planning can and should build earnings, chop down unneeded outgo, and clearly characterizes how moment stairss can be taken to do greater markets ( Thomsett, 1988, p. 5 ) . So as to accomplish this, course requests to assemble a planning framework, the significant points of which are to ( Viscione, 1984, p. 42 ) : Set worthy imprints for grosss and disbursals. Increment the possibility that imprints will be reached. Give clasp and opportunity to explain and gauge choices should obstructions emerge. As planning system is extremely many-sided, it comes as no astonishment that spending plans are trying to help through a few maps, for example, ( Harper, 1995, p. 321, and Churchill, 1984, p. 162 ) : Planning, Controlling, Co-ordinating, Instructing, Authorizing, Motivating, Performance estimation, Decision Making, Delegating, Educating, Better Management of Subordinates and so on. In the skyline of this investigation I would wish to talk two distinct assaults of planning for example ( I ) Traditional Budgeting and A ; ( two ) Rolling Budgets and A ; prognosissTraditional Budgeting:In the conventional assault to planning and planning controls the arrangement of building up a program against the elements which may follow up on the spending plan of the accompanying twelvemonth. There are such a significant number of associations that utilization conventional planning, which give them an idea to compute for the coming twelvemonth and do non require changing durinthe financial plan cyclele. Organizations treat conventional planning fit with more straightforward coordination of spending premises for various divisions. Anyway with the progress of clasp and modifications go oning in the worry, organizations raise whine that the conventional planning is non pleasing with their requests. The major troublesome judgment on conventional planning is expected to: Unacceptable advance they are either extremely basic or extremely unpredictable Not adaptable with modifying concern condition of affairss The spending plan is dishonestly planned either too much short or exorbitantly long It is considered extremely political Moving Budgets and prognosiss: A rolling/consistent spending plan is such a program, that is ceaselessly refreshed and A ; the clasp outline stays constant while the existent period secured by the financial plan balanced. For all intents and purposes, as every month base on ballss, the one twelvemonth continuous financial plan is extended by one month, so there is ever a yearly spending plan in topographic point. In the ring spending plan, executives need to reconsider the system and do changes every month. The consequence of this is regularly an all the more right, state-of-the-art spending fitting the latest data ( Horngren, Foster, Datar, 2000, p. 182 ) . This methodology Urges chiefs to accept and amp ; reconsider sing arranging as an on-going methodology, it is non a dormant occasion. An opportunity to give more â€Å" existent clasp † reaction to quickly modifying concern situation. In principle, the every year arranging system is destroyed ; the projection for following twelvemonth is the main chime expectation. Planing is non expressed by the schedule, yet can be produced by significant occasions and adjustments. As moved financial plans are outfitted with the nearby experience by contemplating the present time frame, they are supported with the ongoing changes. Moving financial plans are ceaselessly refreshed with the recent developments, this encourages in limiting the running inconsistencies. Moving spending plans are the most fitting signifier of financial plan for associations which are working in a conditional feel, where future occasions can non be anticipated dependably. In light of the treatment expressed above it is anything but difficult to ask the most fit budgetary assault under the undermentioned two situations. Situation 1: One of the worries works in a truly steady and dormant market topographic point, where there is little change in either stocks or request twelvemonth on twelvemonth. In this situation we can simple anticipate about future concern situation. Upon authentic record we can incorporate essential adjustments in the budgetary system. As the market situation does non adjust regularly there is no need to coordinate fast modifications in the budgetary framework. According to above reason we can rede the association to follow the customary assault to planning and A ; budgetary control. Situation 2: One of the worries works in an extremely powerful, rapidly changing, propelled condition, where there is quick modification in either stocks or request twelvemonth on twelvemonth. In this situation we can non simple foresee about future concern situation. Upon verifiable record we can non incorporate essential changes in the budgetary strategy. As the market situation changes frequently there is a need to coordinate fast modifications in the budgetary framework. To make along these lines, the chiefs of the association need to accept and amp ; reevaluate sing arranging as an on-going strategy and A ; other than need to respond quickly as modifications concern situation. In this way, the every year arranging methodology is destroyed. The projection for the accompanying twelvemonth is the main chime expectation. Moving spending plans and prognosiss should be outfitted each month or each one-fourth, on the other hand of every year as in the past, which intensified work and costs connected to planning. According to above reason we can rede the association to follow the chime financial plan and A ; prognosiss way to deal with planning and A ; budgetary control. Through the arranging strategy under this assault is cut eating up, turn overing spending plan must be appropriate for such kind of concerns.Decision:There are numerous negative decisions have originated from specialists. Planning hypothesis has been extremely efficacious in explanatory employments and providing equivalent arrangements connected to planning frameworks. Once in a while, the consequences of planning examination have been clashing and not well characterized, yet when all is said in done maximum cutoff suggestions have been fused and amp ; confirmed in existent situations. What I for one have watched extremely not many organizations even today utilize an adaptable budgetary framework and do an unmistakable distinction between manageable and amp ; non-controllable disbursal when estimating their administrators or chiefs. It very well may be uninhibitedly referenced that customary planning is still non dead or entirely neglected as it is still has been utilized in the mass organizations everywhere throughout the universe. By the by, the greater part of them are probably going to perceive that definitely the equivalent planning hypothetical record can non be utilized in the twenty-first century. Business condition situations are not, at this point normal and planning frameworks must go progressively antiphonal to the specific interest of shoppers and A ; requests emerge from the opposition. Answer to the Question no. 02 Here XYZ Limited is a medium estimated manufacture organization which industry and A ; offers its stocks to various mechanical customers who utilize its stocks in their ain creation line. The average hands on capital of a creation organization incorporates its hard money, history receivables, three degree stocks as normal stuff, work-in-progress and A ; completed products and history payables. Presently I am encouraged to portray on how each segment of the hands on capital cadence could be improved and how it will basically gauge the findings of the advancements on XYZ and other dependant customers. To make in this way, I would wish to talk all the particulars of working capital rhythms of a manufacture organization. The hands on capital cadence implies how effective an organization is at change overing hard money into stocks and go into hard cash again. We can express an organization with an extremely proficient capital musicality affirms the competitory favorable position over an organization with a wretched hands on capital beat. To give a superior picture of working capital beat let us state an organization has a monstrous hard money capital and it spends the hard cash to purchase common stuffs. At that point the completed supplement has been sold. As we are populating in an acknowledgment universe so we have non gotten hard cash right away. Along these lines, monies can be reprobate to buyers and A ; Sellerss as exchange receivables and A ; exchange payables severally. So the hands on capital musicality requires joining the

Analysing The Financial Performance Of Three Oil Companies Finance Essay - Free Essay Example

For our assessment we will be analysing three companies form the oil and gas market. The companies that will be analysed are Fortune Oil PLC, Maple Energy PLC and Circle oil PLC. An introduction to the business market and the companies can be found below. Introduction to the oil and gas business market The oil and gas industry is a huge industry facing challenges and has evolved majorly. Most of the oil and gas production takes place under the seas. According to the Cambridge energy research associates, Inc oil demand may double up by 2030. To reduce the expenses of finding and producing oil and gas, new technology is used. Oil and gas provide 60 percent of the daily energy needs to 6.4 billion people and other 40 percent comes from other resources. Oil and gas represent globalization on a large scale. The market is expanding and spending billions of money for the oil and gas production. For country s long-term economic growth maintaining a steady supply of oil and gas is a necessity. Large quantities of oil and gas flows from exporting regions such as Africa, Latin America to the importing regions such as the north America, Europe and far east. This leads to political trade and economic growth. (Petroleumonline.com/Gas industry overview: 2010) Oil and gas industry is co mpeting with a global marketplace and has a higher number of stakes or stakeholders. There is no control over the demand for oil and gas in the world. It is constantly on the rise with the likes of upcoming economies like china and India playing more than an active part in their demand. (Ernst Young: 2010) Oil prices have varied from the year 2007 to 2009.During the year 2007 the average price in nominal and real 2008 US dollars soared to around 100 dollars. In the year 2009,the annual average price faced the great recession leading to loss. During the year 2008,the amount of oil production declined from 80 million barrels per day to 20 million barrels per day .Oil demand is expected to increase steadily until 2030 at about 110 million barrels per day. Iraq has a huge prize at stake for international oil companies. India and China s per capita oil consumption is at a lower level when compared to the other developed countries like UK, United states, Canada and so on. (Jim Burk hard: 2010) Introduction to Fortune Oil PLC Fortune Oil Plc has built up a portfolio of investments and operations in oil and gas industries through various subsidiaries and joint ventures and associated infrastructure projects that supply fuel to homes and businesses in China. The company is listed on the London Stock Exchange main board official list since 1993. It is headquartered in Hong Kong.   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   The companys aim is to be the first integrated gas industry in China with both upstream and downstream assets. It is also expanding opportunities in the oil terminal business and is one of the Few  international companies involved in this part.   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   Fortune Oils assets are categorised into two main areas: oil terminal supply and natural gas. Its investments and operation s are mainly located in the Guangdong and Shanxi provinces and the Beijing hinterland. The Company is now developing coal bed methane reserves, which will integrate with our gas supply business and benefit Chinas environment.    China is the worlds second largest oil market and is also the largest growth market for natural gas. Fortune Oils gas strategy is to form an independent integrated gas company: developing their own resources of unconventional gas; sourcing gas from other producers and then selling this gas to end-users through the city gas companies or CNG vehicle stations.   Fortune Oil has already had Chinas first LNG production plant; the largest CNG station in Beijing and coal bed methane block in Shanxi Province.   At the present, there are no private or foreign companies in China with a regionally integrated gas business. Fortune Oil is now in the process of developing the Liulin block and seeking similar high quality opportunities, particularly in Shanxi Province-the largest CBM reserves in China. Fortune Oil already generates pipelines and city gas companies in the province, and is  exclusively positioned to integrate upstream CBM developments with  their gas distribution network.  Â  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  China is the world second largest purchaser and importer of crude oil. Fortune Oil first developed oil terminals in China and remains one of the few  foreign investors. Currently the company operations include supplying jet fuel to most of the airports in south and central China and distributing 6% of China crude oil imports. The company is well positioned to benefit from the accelerated growth in energy imports and future liberalization of the China oil markets under the WTO agreements Introduction to Circle Oil (plc) Circle Oil is an oil and gas company, which was founded in 2003, and aiming at providing exploration, development and manufacture service for oil-related firms in the sector (Circle Oil: 2009). In order to pursue maximal profit, a clear strategy has been outlined and carried out throughout its development which could be depicted as locating, assessing and confirming licences in new hydrocarbon regions, subsequently Circle attempt to co-operate with other oil and gas firms in manufacturing through negotiation. In addition, Circle Oils share has been traded on AIM of the London Stock Exchange since 2004 (ibid), and its stable upward trend partly reflected the companys constant progression within these years. Its business place mainly involves with MENA area, which stands for Middle East and North Africa (Circle Oil: 2009: 5). Currently it has operated in five countries including Morocco, Egypt, Oman, Tunisia and Namibia. As their strategy stated, Circle is well placed to exploit o pportunities arising from recent industry consolidation and to do business in developing countries (Circle Oil: 2009). Their business activities in those countries might also stimulate local economic development and provide more opportunities for smaller firms to cooperate in the expensive oil industry. Apart from this, MENA area is rich in natural resources including oil and gas, in spite of under development (AAPG: 2003). In terms of performance, Circle Oil has already experienced a series of years excellence (Circle Oil, 2009 p.4). Specifically, in Morocco their six wells campaign had finished in 2009, and five of them have been proven profitable. Furthermore, a new trunk line will be facilitated to enhance its selling. In Tunisia, the completed 2D land seismic programme enables them to analysis-acquired data so that laying a solid foundation for further progress in coming years. In Egypt, Circle continued its success and 10,000 barrels of oil output daily could underpin their confidence significantly. Despite of some delay in Oman and Namibia, the preparation work was conducted properly according to its plan. Based on Circle chairmans statement, a further expansion and development in those countries are expected (Circle Oil, 2009 p.5). At the same time, they would continue to look for suitable projects which in line with their belief and selecting criteria for investment. While for the long run, the company plans to acquire some medium sized reserves. Introduction to Maple Energy PLC Maple energy plc is located in Peru and it is an integrated independent energy company since 1992. Maple mainly focuses on the ethanol project and exploring and producing the crude oil and natural gas. In addition, the main aim of Maple is to ensure its leading position of energy companies in Peru. However, Maple has been admitted to AIM just from 13th July 2007 and also listed in Lima from 21st December 2007. As stated in the Maple annual report from 2007 to 2009, Peru has a significant economic growth in 2007 and 2008, however, in 2009, Perus economic growth has fallen from 9.8% to 0.8%. In particular, Maple has to pay a large amount of deposits to Peru government. The advantage of Perus economic is that it is reported as the lowest inflation country in Latin America. From 2007, Maple planned to increase its cash flow and has set the aim to continue increasing cash flow in the following years. Meanwhile, in 2008, Maple planned to develop its Ethanol Project, which had become the leading company of producing Ethanol in Peru in 2009. Further, Maple was aimed to be the leading company in Peru of energy industry in 2009 and Maple is still working on this aim. Additionally, there are several risks for Maple. Firstly, the fluctuation of ethanol price and market all over the world would affect Maples development. Secondly, the downturn of world economy would affect Perus economy, which would also affect Maple. Thirdly, the policy of government in Peru may affect Maples development and so on. How the Analysis will be conducted To find out which of the three companies discussed above we would choose to invest in several factors will be taken into consideration. Using the balance sheet, income statement and cash flow statement of all three companies, we will analyse the companies financial performance . The first aspect of financial performance that will be analysed is that of profitability. One of the most important aspects that we will analyse will be the Return on Shareholders Funds (ROSF). This is essential for us to know as (ROSF)ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦compares the amount of profit for the period available to the owners with the owners average stake in the business during that same period (Atrill McLaney: 2008: 188). As well as this ratio it is also essential to analyse the Return on Capital Employed (Roce).ROCE will be use as a performance measure as it ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦is a fundamental measure of business performance (Atrill McLaney: 2008: 189). Along with these the operat ing profit margin and gross profit margin will also be used to help assess the profitability of the company. Once the profitability has been assessed liquidity will be assessed. This will be done as liquidity ratios show the ability of the business to meet its short term financial obligations (Atrill McLaney: 2008: 202). The ratios that will be used to analyse the liquidity of our chosen companies will be the current ratio and the acid test ratio. The analysis will then progress to analyse how much the companies are financed by borrowing, commonly known as the Gearing Ratio (Atrill McLaney: 2008). This is important to our analysis as a heavily geared business, a change in operating profit will lead to a proportionately greater change in the ROSF ratio (Atrill McLaney: 2008: 205). The final analysis will be of the investment ratios. To analyse the investment ratios the following will be used : dividend payout ratio, Earnings per share and price/ earning ratios. Along with this rigorous analysis of performance we will also take into consideration where the companies are primarily based and what markets they primarily trade in. This is important, as already briefly discussed above; the economic growth of a countries economy can affect the companys potential for growth and the companies potential for making profit. The laws of different countries may also have positive or negative effects on a companys financial performance. The findings of our analysis for each individual company will be presented, and then we will compare our findings of the individual companies against one another. Once all the relevant financial information has been analysed our findings will be presented within this document. After this our decision on how best to invest our money will be presented drawing upon the financial analysis that we conducted. Our decision will be presented along with any information that led to this decision. The financial ratios will be displa yed in a table with a descriptive results of our analysis presented underneath, that will include what the ratios shw us and the reasons behind why we chose to invest or not invest in that particular company. Our financial analysis will begin with Fortune Oil PLC. Fortune oils ratios and descriptive analysis 2007 2008 2009 ROSF ROCE 10.41 % 10.15 % 12.4% OPERATING PROFIT MARGIN 13.3% 13.3% 10.05% GROSS PROFIT MARGIN 14.93% 14.59% 18.23% CURRENT RATIO 1.75 1.65 1.19 ACID TEST RATIO 1.7 1.57 1.1 GEARING 31.68% 21 % 13.37% EARNINGS PER SHARE 0.25 pence O.49 pence 0.47 PRICE / EARNINGS RATIO The financial ratios that can be deduced from Fortune oils financial statements are very interesting. What can be noted from all of the ratios presented is that they are all positive, this is very important especially as the oil and energy industry can be very volatile and unpredictable. (Refe rence) Ratios Of Profitability ROSF ROCE- when analysing the return on capital employed a similar trend can be noticed to that of the operating profit margin and the gross profit margin. The year 2008 shows a dip however the ROCE then increases in the year 2009. This dip can be seen to be the result current liabilities having a bigger % increase then the operating profit. However in 2009 the operating profit dramatically increases and represents the 1.89% increase in the return on capital employed Overall this financial ratio is very positive and reflects Fortune oils good financial performance in general. The gross profit margin shows Fortune oils increasing revenue, there is a slight decrease in 2008 from 2007, however in 2009 there is a big increase from both the years 2007 and 2008. The gross profit margin shows an increase in revenue. The gross profit does not take into account other expenses that will affect the business hence there is the operating profit and n et profit. However the gross profit margin is still a useful ratio. The dramatic increase in 2009 can be explained by a dramatic increase of sails through gas (Fortune Oil: 2009). Operating Profit margin Fortune Oil has a healthy operating profit margin, although it steadily decreases over the three years analysed. This is due to increases in costs of operation over the three years due to the expanding operations of Fortune Oil. Ratios Of liquidity Current Ratio In 2007 Fortune Oil had a very healthy Current Ratio, however through the years 2008 and 2009 this can be seen to decline quite dramatically. Although in 2009 the current ratio was still at a good level this decrease over the three years is of concern. The decreasing of the current ratio is a result of both an increase in current liabilities and a decrease in current assets over the three years. Acid Test- the acid test ratios follow a similar pattern and can be explained by the same reasons as the current rati o. However the acid test ratio is also affected by the amount of inventories held by a company. From 2008 2009 the proportion of Fortune Oils current assets that were made up of inventories increased (Fortune Oil: 2009) Gearing Ratio The gearing ratio represents the ratio between the level of investment and the level of borrowings (Atrill McLaney: 2008). Although Fortune oils gearing ratio decreases over the three years due to increased amounts of borrowing, the gearing levels for all three years are healthy. The increase in borrowings are due to the expanding operations of Fortune oil and the investment in exploratory projects which in the coming years should generate a healthy amount of revenue for Fortune Oil (Fortune Oil: 2007: 2008: 2009) Investment Ratios The earnings per share follows a slightly strange pattern after a dramatic increase in 2008 form 2007 the earnings per share drops very slightly in 2009. This is an affect of the increase in Fortune Oils net pr ofits over the years, and the slight decrease can be seen by as light increase in the number of ordinary shares in issue Explanations for ratios The oil and gas industry can be extremely volatile (Reference) bearing this in mind Fortune Oils ratios are impressive. The slight decreases that are seen in some of the ratios such as the operating profit margin and the current ratio are a result of Fortune oil dealing with the severe recession that affected the business environment. The increase of current liabilities between 2007 2009 is an affect of this. The dramatic increase in the gross profit margin reflects Fortune Oil bouncing back from the recession with record sales and a buoyant Chinese economy (Fortune Oil: 2009). After an extremely volatile 2008 the economic environment was stable and this was reflected in stable energy prices (Fortune Oil: 2009). Fortune oil survived the economic recession with healthy financial ratios and managed to produce Fortune oils best revenues and net profits in the year 2009. The future also looks bright for Fortune oil with new development projects having been certified by the Chinese Government, Fortune oil can push forward their exploratory projects such as their operation in Liulin and joint partnerships with other companies. The alliance Fortune Oil has with the Chinese Government is extremely important for future success of the company and has enabled them to gain certification for operations that have generated significant amounts of income (Fortune oil: 2007: 2008: 2009) After surviving and moving out of the recessions with healthy financial statements and ratios 2010 could be an extremely profitable year for Fortune Oil and a chance to build upon their success of the last three years. Circle Oil Ratios and descriptive analysis 2007 2008 2009 ROSF ROCE -7.7% -18.3% -0.29% OPERATING PROFIT MARGIN NO REVENUE NO REVENUE -2.28% GROSS PROFIT MARGIN NO REVENUE NO REVENUE 48.84% CURRENT RATIO 3.37 3.16 2.4 ACID TEST 3.7 3.16 2.4 GEARING 59.6% 26.2% 31% EARNINGS PER SHARE LOS SPER SHARE 1.68c Loss per share 4.60 Loss per share 3.66c For the past three years (2007-2009) Circle oil company has been facing loss.According to the circle oil company s ratios , there is no return on ordinary share holders funds(ROSF) for the year 2007-2009.ROSF compares the amount of profit available to the owners with the owners average stake in the business during that same period(Atrill McLaney:2008:p188).For the money invested in the company in the year 2007 ,there s an operating loss . So return on capital employed (ROCE) is about -7.7 % .In the following year 2008, company faced a decrease in operating loss at about -18.3% and in year 2009 it went down to -0.29%. For the year 2007 and 2009 no revenue was obtained which lead to a loss whereas in the year 2009 ,cost of sales was about 15,093 US$.So the operati ng profit margin was about -2.28% which relates the operating profit to the sales revenue and the company recovered with the gross profit margin at about 48.84% which is a difference between sales revenue and cost of sales. Circle oil company is under debt as it has borrowed convertible loan.For the past three years there were no dividends which lead to a major loss and the money invested was not recovered by the shareholders Liquidity Ratios analysis The ratio of liquidity normally consists of current ratio and acid test ratio, and both of them have function of testing whether a company has capability of paying off short-term liabilities (Atrill McLaney, 2008). In this case, generally Circle Oil had a fantastic performance in liquidity ratios in successive three years as shown in the table above (Table 1). Specifically, in terms of current ratio Circle Oil had figures of 3.37, 3.16 and 2.4 from 2007 to 2009 respectively. Although the trend of downturn had been shown in thi s case, each of them, by comparing with benchmark of 2, could be labeled very high (Atrill McLaney, 2008). Similarly, the acid test ratio had nearly identical performance here, mainly because the three years inventories (excluding part) are extremely small that can barely make contribution in calculating of acid test ratios. Theoretically, the data had been revealed above should be encouraging for not only the company but also stakeholders. However, through carefully examining the detail of annual report, it had considerable amount of cash and cash equivalents in hand in all three years, and these may be problematic in terms of running business productively (Atrill McLaney, 2008). In addition, it is reasonable for us to imply that this result may have something to do with its business undergoing in recent years. According to chairmans statement (Circle Oil, 2009), Circle Oil has just changed from an oil explorative company to an oil production company, and everything relating to production is still in the preparatory phase, namely acquiring licenses, testing wells etc. Obviously, this explanation is in line with their data, but their performance in the future is questionable. Gearing ratio analysis As to gearing ratio, it enables analysts to work out how much proportion the long-term liabilities accounting for in businesss equity (Atrill McLaney, 2008). Ideally, the proportion of long-term liabilities should be limited within a specific range that firms can have some control over it as the more non-current liabilities possess, the more risk the company would have in future (ibid). In the context of Circle Oil, it had rather high figure of 59.6% in 2007 and reasonable one in 2008 with 26.2%. Finally the number bounced back a bit to 31% in 2009. The reason for having a abnormal gearing ratio in 2007 lies in the share premium in that year was much less than following two years by comparison. What is also worth mentioning is that base on Atrill McLaney (2008), if a highly geared firm has even some minor change in operating profit, the effect of returning to shareholders would be significant. It is not difficult to find out that the relationship between gearing ratio and operating profit at Circle Oil is direct proportion during that three years. Investment Ratio analysis Investment ratios are designed to help investors assess the returns on their investment (Atrill McLaney, 2008). In the case of Circle Oil, since there were not dividends announced for 2007, 2008 and 2009 (Circle Oil, 2001-2009), which might result from no profit generation, the two dividend-related ratios cannot be calculated. From this point, it is obvious that the company did not perform well in terms of giving benefits back to their investors in recent years. However, the earning per share ratio tells again that Circle Oil had some difficulties in generating profits for its shareholders. Specifically, in 2007 the loss per share stood at only 1.68c, while in 2008 this figure went up to 4.60, even though it had dropped down to 3.66 in 2009 (Table1), these information altogether convinced that the company may be a wrong place for investor to put their money in, at least for those three years. At the same time, it is also important to take the companys situation into account, meaning it is a new oil business and a number of gas and oil wells are still under testing and may have potential to be profitable source in the future. Therefore, this company may be a choice for people who intend to invest for a long haul. Maple Energy ratios and descriptive analysis 2007 2008 2009 ROSF -1.75% -5.33% -22.73% ROCE -0.74% -3.5% -6.97% OPERATING PROFIT MARGIN -1.2% -5.59% -14.3% GROSS PROFT MARGIN 26.62% 22.67% 24.1% CURRENT RATIO 3.27 1.56 0.63 ACID TEST 3.06 1.05 0.51 GEARING 13.5% 12.98% 17.89 EARNING PER SHARE LOSS PER SHARE 3.38 LOSS PER SH ARE 7.90 LOSS PER SHARE 26.06 The ratio analysis of Maple Energy Plc. The ratio analysis of Maple Energy Plc. This part will analyze Maples performance through profitability, liquidity, gearing, efficiency and investment ratios which are established from its annual financial report from 2007 to 2009. Profitability 2007 2008 2009 ROSF -1.75% -5.33% -22.73% ROCE -0.74% -3.5% -6.97% OPERATING PROFIT MARGIN -1.2% -5.59% -14.3% GROSS PROFIT MARGIN 26.62% 22.67% 24.1% The profitability ratios show the ability to make profits of a firm and the degree of success (Atrill McLaney, 2008). From the table above, the profitability ratios reveal main downfalls through the last three years. First, the return on capital employed ratio figures illustrate a steady decline in returns to all suppliers. In particular, the figures are negative because the operating profits of the three years are all negative. From 2007 to 20 09, the operating expenses were exceeding the gross profit although the company has got a large amount of gross profit. These ratios show a poor performance of Maple from 2007 to 2009. Consequently, this company has to pay not only its borrowed funds, but also the interests on the borrowed funds. Particularly, this is awful information for suppliers of long-term finance. Second, the return on ordinary shareholders funds ratios show a sharp decline in relation to the companys profit which were left to the owner. The figures are negative as well because the operating profit was already negative and the finance cost was exceeding the finance revenue. In particular, by 2009, loss for the year was almost three times than the loss for 2008. From the annual report for Maple Energy Plc, it is clearly that the finance cost has a rapid increase until 2009. As Atrill McLaney (2008) emphasized that companies are seeking as high as possible for return on ordinary shareholders funds ratio. Th ese negative ratios imply that Maple seems not possible to take some new businesses, such as a new investment. In addition, their negative profit for the year was a threat to their shareholders. Furthermore, a sharp decline of the operating profit margin ratios reveals that the company has a very poor performance for operating profit. For oil and energy companies, they tend to operate on high prices, thus compared to these negative ratios, Maples expenses were extremely higher than gross profit. Maple needs to either increase the sales revenue to exceed its cost or to reduce its operating expenses. Finally, for the gross profit margin ratios, they have a slight decline from 2007 to 2009. However, these figures are positive which means that the turnover is exceeding the cost of sales. Although the gross profit margin ratios have declined, from 2008 to 2009, both of the sales revenue and cost of sales have reduced. This means that the gross profit was still high related to the t urnover for Maple. Below is the graph to show the profitability ratios of Maple from 2007 to 2009 Liquidity ratios Liquidity determines the ability of a company to meet their immediate financial obligations (Atrill McLaney, 2008). When choosing an investment of the period less than 5 years, whether the company has the possibility to give back their trade payables and short-term obligations should be in consideration. The ratios used to measure the companys liquidity are the current ratio and the acid test ratio. 2007 2008 2009 CURRENT RATIO 3.27 1.56 0.63 ACID TEST 3.06 1.05 0.51 Maple Energys current ratios reveal the dramatically decreasing trend of the ability to pay off the short-term debts from the year 2007 to 2009. In the year 2007 the company had the highest amount of $ 34.34 million dollars cash at bank and in hand, but in the year 2008 and 2009 the amount has significantly dropped to 8.54 and 5.38 million dollars respectively( londonstockexchange, 2010). Moreover, the current liability has gone up triple for the year 2009. The acid test ratios from the year 2007 to 2009 are hardly different from the current ratios. The ratio has significantly dropped in the past 3 years, suggesting that 2009s liquidity is the main problem as the company has less than 70 cents to cover every $1 invested in the company. Graph for the trends of Liquidity ratios from 2007 to 2009 Gearing 2007 2008 2009 GEARING 13.5% 12.98% 17.89% INTEREST COVER -6 19.1 6.1 As Atrill McLaney (2008) stated, financial gearing is essential to evaluate the risk of business and the relationship between long-term loans and capitals. From the table above, the gearing ratio figures demonstrate a slight increase from 2007 to 2009. By 2009, the gearing ratio has increased to 17.89%, which could be considered as an acceptable figure. However, it seems that Maple could still increase its investment on loans, w hich could contribute to the long-term lenders and return to shareholders capital. In addition, from the balance for Maple, the reserves from 2007 to 2009 have not increased, which indicates that the low reserves are a potential risks for Maples business. Additionally, the interest cover ratios show an instable trend from 2007 to 2009. Due to the negative operating profit all three years, the operating profit could not cover the interest payable. As a consequence, it is an enormous risk for the shareholders of Maple that the lenders will try to recover their outstanding of interest by crack down on the business, especially by 2009, there was a large amount of operating losses. Efficiency ratios The Sales Revenue to Capital employed ratio is a main factor of the Return on Capital employed ratio, and the table mentioned below indicates the efficiency of the company by the usage of its assets generating sales revenues. Maple Energy 2007 2008 2009 Sales Revenue T o Capital Employed 0.61 0.63 0.49 Return on Capital Employed -0.74% -3.5% -6.97% There is a fluctuation of the sales revenue to capital employed, in the year 2008 the ratio slightly went up to 0.63. But then the ratio went down to 0.49 in the year 2009. Moreover, the company is still unable to provide the return to the shareholders as the return on capital employed has dramatically dropped down to -6.97% in 2009. The decline in ROCE due to the increase in the amount of operating loss, also suggesting the poor performance of the company. Earnings per share The earnings per share ratio are essential to examine the share performance of Maple energy. As shown in the graph above, the earnings per share ratio figures illustrate a sharp decline from 2007 to 2009. In particular, for the share performance, Maple was making loss all three years. Due to the fast increase of loss per share every year, there is a big risk that the shareholders or potential investors are not possible to invest into Maple. It is important for Maple to improve their operating profit and net profit. All in all, Maple has to reduce its cost and expenses to make its profit to be positive.

Kant s Good Will Theory - 1219 Words

Sofia Hughes 817212455 Philosophy 330 Philosophy 330: Major Exam #1 A. According to Kant’s Good Will theory, â€Å"good will† means to act out of an overarching sense of duty and rightness. In order for an action to be borne of good will, it must be done solely because it is the right thing to do, and not because of the results that the action will bring. The only thing, Kant says, that is good without qualification is good will itself. In order for something to be good without qualification, it must be good on every occasion that it is used. Kant supplies three categories of things that are good, but only with qualification: talents of the mind, qualities of temperament, and gifts of fortune or nature. These three categories can only be good when they are had in conjunction with good will. The will is only good through its motives and intentions. B. Kant’s categorical imperative, put simply, is something that must be done. It is a law in itself, and is necessary and unequivocal. It is to be treated as law by all people independent of the desires of the individual, and must be done. This is different from the hypothetical imperative in that the hypothetical imperative is an action done to bring about a specific outcome, and is specific only to the individual who desires that outcome. The categorical imperative applies to all people and must be done regardless of the outcome. For Kant, the moral imperative is the categorical imperative, because it can be applied to a person’sShow MoreRelatedKant s Good Will Theory1219 Words   |  5 Pages According to Kant’s Good Will theory, â€Å"good will† means to act out of an overarching sense of duty and rightness. In order for an action to be borne of good will, it must be done solely because it is the right thing to do, and not because of the results that the action will bring. The only thing, Kant says, that is good without qualification is good will itself. In order for something to be good without qualification, it must be good on every occasion that it is used. Kant supplies three categoriesRead More Ethical and Philosophical Questions about Value and Obligation977 Words   |  4 PagesEthical and Philosophical Questions about Value and Obligation I Recall the distinction between metaethics and normative ethics. Normative ethics deals with substantial ethical issues, such as, What is intrinsically good? What are our moral obligations? Metaethics deals with philosophical issues about ethics: What is value or moral obligation? Are there ethical facts? What sort of objectivity is possible in ethics? How can we have ethical knowledge? Recall, also, the fundamentalRead MoreKant s Theory Of Morality982 Words   |  4 PagesImmanuel Kant is said by many to be one of the most influential â€Å"thinkers† in the history of Western philosophy (McCormick, n.d.), this being said, most of his theories continue to be taught and are highly respected by society. Kant was a firm believer that the morality of any action can be assessed by the motivation behind it (McCormick, n.d.). In other words, if an action is good but the intention behind the action is not good, the action itself would be considered immoral. Those who follow theRead MoreKant s Theory Of Moral Theory1466 Words   |  6 Pagessince Kant s publication of his renowned ethical treatises, deontologists and utilitarians alike have argued over which moral theory is most coherent. 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His ethical theory elucidates that morality is when weRead MoreKant And John Stuart Mill s Utility Based, Utilitarian Moral Theory1551 Words   |  7 PagesOne of the most intriguing aspects of moral theory is not merely analyzing disagreements between renowned, intellectual giants, but examining the ways in which near polar ideologies can arise to similar conclusions based on vastly different rationales. Immanuel Kant s duty-based, deontological moral theory and John Stuart Mi ll s utility-based, utilitarian moral theory are prime examples of antithetical viewpoints that share similar outlooks to ethical subjects such as lying and helping those inRead MoreWhat Has Posterity Ever Done For Me By Robert Heilbroner1626 Words   |  7 Pagesregards to preserving the planet. In this paper, I will present Heilbroner s arguments for posterity, in relation to how we treat our environment. 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Common Rail Direct Injection free essay sample

Direct injection means injecting the fuel directly into the cylinder instead of premixing it with air in separate intake ports. That allows for controlling combustion and emissions more precisely, but demands advanced engine management technologies. Unlike petrol engines, diesel engines don’t need ignition system. Due to the inherent property of diesel, combustion will be automatically effective under a certain pressure and temperature combination during the compression phase of Otto cycle. Normally this requires a high compression ratio around 22 : 1 for normally aspirated engines.A strong thus heavy block and head is required to cope with the pressure. Therefore diesel engines are always much heavier than petrol equivalent. The lack of ignition system simplifies repair and maintenance, the absence of throttle also help. The output of a diesel engine is controlled simply by the amount of fuel injected. This makes the injection system very decisive to fuel economy. Even without direct injection, diesel inherently delivers superior fuel economy because of leaner mixture of fuel and air. We will write a custom essay sample on Common Rail Direct Injection or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Unlike petrol, it can combust under very lean mixture.This inevitably reduces power output but under light load or partial load where power is not much an important consideration, its superior fuel economy shines. Another explanation for the inferior power output is the extra high compression ratio. On one hand the high pressure and the heavy pistons prevent it from revving as high as petrol engine (most diesel engine deliver peak power at lower than 4500 rpm. ), on the other hand the long stroke dimension required by high compression ratio favors torque instead of power. This is why diesel engines always low on power but strong on torque.To solve this problem, diesel makers prefer to add turbocharger. It is a device to input extra air into the cylinder while intake to boost up the power output of the engine. Turbocharger’s top end power suits the torque curve of diesel very much, unlike petrol. Therefore turbocharged diesel engines output similar power to a petrol engine with similar capacity, while delivering superior low end torque and fuel economy.

Inequality of Development of Saudi Arabia

Introduction Development involves integration of modern advances in technology, democracy, social organizations, values, as well as, ethics into a single humanitarian project of making the world a better place to live. In the strongest sense, development involves using the resources of a country to improve the living standards of the poorest citizens.Advertising We will write a custom essay sample on Inequality of Development of Saudi Arabia specifically for you for only $16.05 $11/page Learn More In the weakest sense, development can be described as the use of a country’s productive resources for the benefit of a few individuals. Economic development refers to â€Å"a multi-dimensional process that not only involves economic growth but also a re-organization of the entire economic system alongside the social, political and economic spheres†. Consequently, development involves both economic growth and change. In this context, change means a ttainment of specific ideals of modernization which include increase in productivity, modern knowledge, social/ economic equality, as well as, improved institutions. In strict economic sense, development has traditionally been associated with an increase in the production capacity of a country as measured by its GDP. However, GDP is not a good measure of development since it does not take into account issues such as, health, urbanization, equality, external dependence and institutional development. A more effective measure of development is the human development index (HDI). Using the HDI involves assessing a country’s level of poverty, unemployment, delivery of basic services, as well as, inequality. This paper focuses on development by assessing the level of inequality in Saudi Arabia. The distribution of national income and delivery of basic services will be discussed. Overview of Saudi Arabia Saudi Arabia is the second largest Arab country in the world and the largest in western Asia. Saudi Arabia is bordered by Jordan, as well as, Iraq in the north. It is also bordered by Kuwait, Qatar, as well as, United Arab Emirates in the east. The Red sea borders the country in the west while Oman and Yemen lay to the east of Saudi Arabia. Saudi Arabia covers a land area of approximately 2.2 million km2. The country has a population of approximately 27 million people.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Since its inception in 1932, Saudi Arabia operates under an absolute monarchy system of government. The king performs legislative, executive, as well as, judicial functions. The king also serves as the country’s prime minister. Consequently, he leads the council of ministers with the aid of two deputy prime ministers. Key positions in the government are held by the members of the royal family. Islam is the official religion in Saudi Arabia. The socia l, political and even economic policies are based on Islamic principles such as Islamic banking system. Saudi Arabia has a relatively stable political environment as compared to other Arab countries. It also enjoys strong political ties with foreign countries. However, Saudi Arabia has recently been associated with terrorist activities. This has negatively impacted its relationship with western countries, especially, the United States of America. Saudi Arabia possesses the second largest oil reserve in the world. Thus, it is also the second largest exporter of oil in the world. Currently, the oil industry accounts for nearly 90% of the country’s exports. The government of Saudi Arabia derives 75% of its revenue from oil exports. Inequality and Economic Growth in Saudi Arabia In development, inequality refers to the disparities or differences in the distribution of income and economic resources of a country. It also includes disparities in the provision of basic services. Thus , inequality can be witnessed among citizens (vertical inequality) and between different regions in the country (horizontal inequality). In 2010, Saudi Arabia’s economic growth (GDP) was estimated to be 6.4%. Through years of investments and increased oil exports, Saudi Arabia has always experienced steady economic growth. The rapid economic growth stimulated development in various sectors of the country. However, the development resulting from the rapid economic growth varies from region to region and from sector to sector. To begin with, the government has always focused on developing the public sector at the expense of the private sector. Oil as the main source of revenue in Saudi Arabia is considered a national resource. The oil industry contributes up to 45% of the country’s gross domestic product. The private sector, on the other hand, contributes only 40% of the gross domestic product. Given the significance of oil in the country’s economic growth, the go vernment channels most of its funds towards the development of the oil industry. However, the public sector where the oil industry is classified is mainly dominated by the royal family.Advertising We will write a custom essay sample on Inequality of Development of Saudi Arabia specifically for you for only $16.05 $11/page Learn More The royal family has great control over the companies that drill and market the country’s oil. Thus, a large percentage of the oil and gas resources are controlled by the royal family and a few influential business men who account for less than five percent of the country’s population. Additionally, massive investments in the public sector in terms of jobs and salary increments have only benefited a few. This is because majority of Saudi Arabians are employed in the private sector. In light of these disparities, the government through its fourth development plan began to encourage private enterprise in 1950s. T he government supported private investments by offering financial assistance and economic incentives to promote the growth of private firms. Consequently, the contribution of the private sector to non-oil GDP rose to 70%. However, the growth in the private sector has since been realized only in the agriculture, banking, as well as, construction industries. The oil industry is still dominated by the royal family. The first two development plans that were implemented in Saudi Arabia focused on building infrastructure. Consequently, the road network and electricity generation expanded three fold. However, infrastructure development was mainly undertaken in the cities/ urban areas and the oil mining centers. The rural areas where the poorest and minority groups live still lack adequate infrastructure in terms of roads, railways and electricity. Regional development in Saudi Arabia is relatively fair compared to other Arab countries. The government promotes development in all regions in order to ensure equality. For instance, the government has announced plans to build six new industrialized cities by 2020. The cities will be spread across the country and will increase per capita income in each region to $33, 500 by 2020. Income Distribution Income distribution describes the manner in which a country’s GDP is shared among its population. In 2010, Saudi Arabia’s per capita income was $24,200, which was among the highest in the world. However, per capita income is not a good measure of income distribution since the actual funds might not necessarily reach the poorest citizens. The high poverty rate in Saudi Arabia is an indication of the inequality in income distribution.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The number of Saudi Arabians who can not afford food and decent housing continues to rise annually. However, the government denies claims of high poverty rates and hardly issues data on the country’s poverty levels. In 2010, over 11% of Saudi Arabians were not employed. The unemployment rate is likely to be higher since women are never included in Saudi Arabia’s statistics. The royal family that comprises approximately 6,000 individuals controls over $400 billion of the country’s currency. In general, 90% of the country’s income benefits only one third of the population. The royal family is the upper class, and approximately 20 million out of 27 million citizens belong to the lower and lower-middle class. Following the decline in economic growth in 1950s, and rising discontent among the citizens, the government decided to improve distribution of the country’s wealth. Thus, in the fourth development plan, the government embarked on privatization of state owned corporations. Additionally, the private sector was allowed to participate in the telecommunication and energy industries. The aim was to increase the private sector’s ownership of state enterprises to 70%. Through privatization, many Saudi Arabians have had a chance to own state corporations and share the income generated by such corporations. However, not all citizens are able to participate in the privatization due to the high poverty levels. Additionally, corruption in the government limits the citizens’ chances of owning state corporations through privatization. In most countries, the tax system is used to influence the distribution of national income. Governments often use progressive taxes to redistribute income from the rich to the poor. Tax rebates and subsidies are often given to the poor in order to improve their disposable incomes. As a planned economy, Saudi Arabia focuses on equal income distribution through fair taxes. The government does not levy taxes on incomes earned through employment. Additionally, individuals who are not involved in any business activity are exempted from interest and dividend taxes. However, only residents of Saudi enjoy the income tax relief. Saudi nationals who operate businesses involving commercial goods within the Kingdom of Saudi Arabia are subject to an Islamic tax. The tax is referred to as Zakat and is charged at a flat rate of 2.5% on both property and income. Corporations and individuals who engage in business activities pay an income interest of 20%. In this context, business activities include financial services, professional activity and trading activities. Employed Saudi Arabians are expected to contribute 9% of their income to the national social security fund. The fund caters for old age, disability, and death. However, civil servants, farmers and domestic savants are exempted from these contributions. The tax system is fair since it leaves citizens with high disposable income. H owever, it promotes inequality since it can not redistribute income from the high income earners to the low income earners. Additionally, only the employed citizens are able to benefit from the tax reliefs. Provision of Basic Needs A country is considered to be developing if its citizens are able to access basic services such as education, health care and security. In most countries, the basic services are defined as public goods. Consequently, they are provided by the government in order to reduce inequality in accessing them. The commitment of the government of Saudi Arabia to provide basic services and social safety nets to its citizens can be illustrated by the country’s development plans. Saudi’s third development plan which was implemented from 1980 to 1985 promoted development of infrastructure in education, health, as well as, social services. The fifth development plan was implemented between 1990 and 1995. The plan led to the improvement of the countryâ€℠¢s internal security. It also led to efficiency improvements in the provision of social services, as well as, regional development. Between 1996 and 2000, the government implemented the sixth development plan. The sixth plan focused on reducing the cost of providing basic services without reducing the number of services provided by the government. From 2005 to 2010, the government implemented the eighth plan which focused on education and empowerment of women. The plan led to construction of new universities and collages. The current plan focuses on expansion of education, health and housing sectors. The objectives of the current development plan will be achieved by 2014. In the context of equality, the effectiveness of these development plans can be explained as follows. Education The government of Saudi Arabia has taken cognizance of the importance of education in development. Consequently, free education is provided by the government in order to enhance access. Enrollment in Saud i’s primary schools is at 98.1%. In order to proceed from primary to intermediate level, students must qualify by passing an exam. This leads to a reduction in enrollment at the intermediate level to 95.9%. At the secondary level, the enrolment further drops to 91.8%. In general, these percentages indicate that there is equality in accessing basic education. Additionally, the literacy rate is above 90%. Even though access to basic education is high, the quality is still low. In particular, the curricular is dominated by religious teachings and rote learning. Consequently, most high school and collage students lack technical skills that are needed at the workplace. Access to high quality education remains the preserve of the rich who are able to send their children to overseas universities. Health Care Health care services are financed by the government. However, the medical services are delivered by both the government and the private sector. The ministry of health oversees t he provision of preventive, curative, as well as, rehabilitative health care services. The services are provided through a network of over 1900 public medical centers. There are also 220 public referral hospitals that offer specialized treatment. The ministry of education provides health care to students while the ministry of labor and social affairs provides rehabilitation health care. Overall, good access, as well as, effective care has been reported for services such as immunization, maternal care, as well as, disease control. The high access rate is an indication of equality. However, the poor access to treatment for chronic diseases is an indication of inequality. Water Water is a very important commodity due to its scarcity in Saudi Arabia. In order to increase access to clean water, the government has invested heavily in water distribution, treatment of waste water and desalination. Additionally, the government finances the provision of water for domestic use. However, majori ty of Saudi Arabians can not access clean water on a regular basis. For instance, statistics for 2011 indicates that residents of Riyadh, Saudi’s capital, were able to access water only once in every three days. In Jeddah, the citizens were able to access clean water only once in every nine days. It is only the rich, especially, the royal family who can access clean water on a daily basis. Human Rights The socio-cultural norms and the Islamic laws that govern Saudi Arabia restrict the freedom of women. Such restrictions are reflected in women’s participation in economic activities and the political process. The law in Saudi Arabia grants women the right to own land, property, as well as, to enter financial contracts. However, women’s rights to ownership can hardly be exercised due to social norms and other laws. For instance, women who intend to operate a business must employ male managers before receiving licenses for their businesses. Additionally, women are l egally under the guardianship of their male counterparts. This limits women’s ability to independently own property or a business. Apart from access to economic resources, the inequality between men and women also exists in education. For instance, the literacy rate for men is 95% while that for women is 89%. Saudi Arabia’s Relationship with the World Globalization is an integral aspect of every country’s development. As economies embark on economic growth, they must also search for new markets for their surplus produce. This has necessitated international trade and globalization. For a country to effectively participate in international trade, it must have good foreign relations with its trading partners. In light of this requirement, the government of Saudi Arabia has focused on fostering strong political and economic ties with the rest of the world. This can be illustrated by the country’s membership in world organizations. In 1945, Saudi Arabia became a member of the United Nations (UN). Saudi Arabia is also a â€Å"member of the Arab League, Gulf Cooperation Council, Muslim World League and the Organization of the Islamic Conference†. As a leading oil producer, Saudi Arabia belongs to the OPEC group of countries. Saudi Arabia plays a key role in the formulation of OPEC’s pricing policy. Generally, the country focuses on stabilization of international oil prices through OPEC in order to protect the interest of Western economies. Saudi Arabia is also a member of the World Trade Order (WTO). From 1970s to 2002, the government of Saudi Arabia spent over $70 billion in foreign aid. The funds were used to support development projects in various countries in Africa, Asia and the Middle East. However, Saudi Arabia’s generous foreign aid has been associated with promotion of Wahhabism. Wahhabism is an Islamic sect that is linked to terrorist attacks and intolerance to non-Muslims. Most Arab countries consider Saudi Arabia to be a close ally of western countries, especially, America. For instance, in 1991, Saudi Arabia assisted the US in the Gulf War by hosting the latter’s troops. Saudi Arabia’s association with America has always been opposed by other Arab countries and some Saudi nationals. Consequently, Saudi Arabia has since limited its association with America. The relationship between Saudi Arabia and America suffered a major setback when the latter associated the former with the Al-Qaeda and Taliban terrorist groups. In the Arab world, Saudi plays an important role in promoting peace. For instance, the country supports America’s inversion of Iran in order to destroy Iranian nuclear program. Saudi Arabia has also helped to mediate peace between Palestine and Israel. Currently, the main trading partners of Saudi Arabia include USA, Japan, China, as well as, South Korea. Overall, Saudi Arabia has a good relationship with the rest of the world. This has promoted equalit y in Saudi Arabia by enabling its citizens to benefit from globalization. For instance, Saudi nationals are able to access higher education in foreign countries. Additionally, the country’s citizens can access foreign goods and markets. Causes of Inequality in Saudi Arabia Political system The monarchy system of governance is partly blamed for the escalation of inequality in Saudi Arabia. To begin with, non- royal family members have been locked-out of the leadership of the country. The democratic space is limited and views that contradict the perspectives of the ruling class are never tolerated. Additionally, formulation of economic policy is dominated by the ruling class. Lack of public participation in policy formulation has resulted into implementation of policies that promote inequality instead of reducing it. Lack of democracy also promotes corruption within the royal family and government cycles. The ruling class takes advantage of their positions to enrich themselves with the country’s oil and gas resources at the expense of the citizens. Expenditure by the royal family, for instance, accounts for a large portion of the country’s budget. Corrupt government officials also illegally acquire resources that are meant to benefit the most vulnerable groups. Wealth Concentration Less than a quarter of Saudi Arabia’s population controls more than three quarters of the country’s wealth. In particular, the royal family and a few business men control most of the country’s wealth. Concentration of wealth in the hands of a few is partly promoted by the tax system. The government charges a fixed income tax for all income groups and businesses. Since the tax is not progressive, income can not be redistricted from the rich to the poor. The tax system has significantly contributed to the development of an extremely rich class and an extremely poor class in the same economy. The middle class is consistently reducing in size. Dev elopment Patterns Empirical studies reveal that countries experiencing slow development have relatively low levels of inequality. However, as a country begins to experience rapid growth, more wealth is generated and owned by the owners of capital, thereby causing inequality. As a rapidly growing economy, Saudi Arabia has been able to generate a lot of wealth in the last decade. The government’s commitment to expand the private sector has promoted capitalism and ownership of private property. Consequently, the balk of the country’s income is controlled by the owners of capital. Inequality is perpetuated by the lack of effective social welfare programs to reverse the inequality in wealth distribution. Responses to Inequality The government of Saudi Arabia can consider the following recommendations to reduce both vertical and horizontal inequality in the country. First, equity can be achieved by dispensing the revenues accruing from oil and gas directly to the citizens. I n this case, the uniform transfer of cash to citizens will act as a progressive tax. Thus, it will help in reducing the rich to poor disposable income ratio, thereby reducing vertical inequality. Second, in order to prevent widening of the gap between the rich citizens and their poor counterparts, the government should promote productivity, as well as, export growth in the manufacturing and agricultural sector. The government can also create jobs in the public sector for the citizens rendered jobless in the private sector. Pro-poor policies can also be adopted by the government to improve the socio-economic status of the poor groups. Third, horizontal inequality can be reduced through equitable sharing of revenue between the central government and the local governments. In a nutshell, the oil revenue should be decentralized. Conclusion Saudi Arabia is one of the richest and fastest growing economies in the Arab world. The country derives over 75% of its revenues from its vast oil re serves. Despite having a lot of wealth, inequality and poverty still exist in Saudi Arabia. High levels of inequality exist in the distribution of the country’s income. Most of the financial and other economic resources are controlled by the royal family and a few business men who account for less than one quarter of the population. Even though basic services are provided with relatively high levels of equality, the quality of most services such as education and health is still poor. The relationship between Saudi Arabia and the rest of the world remains strong. The main causes of inequality in Saudi Arabia include the political system, wealth concentration and development patterns. The inequalities can be addressed through equitable distribution of national income and implementation of pro-poor policies. Works Cited Ahmed, Syed. â€Å"Professional Insights: Business Women in the Kingdom of Saudi Arabia.† International Journal of Equity, Diversity and Inclusion 30.7 (2 011): 610-614. Print. Albatel, Abdullah. â€Å"Government Activity and Policy and Economic Development in Saudi Arabia.† Journal of Economic and Administrative Science 19.2 (2003): 1-2. Print. Al-Sakran, Sulaiman. â€Å"Leverage Determinants in the Absence of Corporate Tax System: the Case of Non-Financial Publicly Traded Corporates in Saudi Arabia.† Managerial Finance 27.10 (2001): 58-86. Print. Basu, Kaushik. Analytical Development Economics. New York: Cengage Learning, 2003. Print. Boscheck, Ralf. â€Å"The Governance of Oil Supply: an Institutional Pespective on NOC Central and the Questions it Poses.† International Journal of Energy Sector Management 1.4 (2007): 366-389. Hayami, Yujiro and Yoshihisa Godo. Development Economics. New York: Cengage , 2005. Print. Hosad, Soraya. â€Å"The Rise of Consumerism in Saudi Arabian Society.† International Journal of Commerce and Management 17.1 (2008): 73-104. Print. Jasimaddin, Sajjad. â€Å"Analyzing the Com petitive Advanatges of Saudi Arabia with Porter’s Model.† Journal of Business and Industrial Marketing 16.1 (2001): 59-68. Print. Kayed, Rusem and Kabir Hassan. â€Å"Saudi Arabia’s Economic Development: Entrepreneurship as Strategy.† International Journal of Islamic and Middle Eastern Finance and Management 4.1 (2011): 52-73. Print. Niblock, Tim. Saudi Arabia: Power, Legimacy and Survival. New York: John Wiley and Sons, 2006. Print. Nixson, Felix. Development Economics. New York: McGraw-Hill, 2001. Print. Sigel, Eckhard. Development Economics. New York: Cengage, 2005. Print. This essay on Inequality of Development of Saudi Arabia was written and submitted by user Tristen C. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

History of Witches Signing the Devils Book

History of Witches Signing the Devil's Book In Puritan theology, a person recorded  a covenant with the Devil by signing, or making their mark, in the Devils book with pen and ink or with blood.  Only with such signing, according to the beliefs of the time, did a person actually become a witch and gain demonic powers, such as appearing in spectral form to do harm to another. In testimony in the Salem witch trials, finding an accuser who could testify that the accused had signed the Devils book, or getting a confession from the accused that she or he had signed it, was an important part of the examination. For some of the victims, the testimony against them included charges that they had, like specters, tried to or succeeded in forcing others or persuading others to sign the devils book. The idea that signing the devils book was important is probably derived from the Puritan belief that church members made a covenant with God and demonstrated that by signing the church membership book.  This accusation, then, fit with the idea that the witchcraft epidemic in Salem Village was undermining the local church, a theme which Rev. Samuel  Parris and other local ministers preached during the beginning phases of the craze. Tituba and the Devils Book When the slave,  Tituba, was examined  for her supposed part in the witchcraft of Salem Village, she said she had been beaten by her owner, Rev. Parris, and told she had to confess to practicing witchcraft. She also confessed to signing the devils book and several other signs that were believed in European culture to be signs of witchcraft, including flying in the air on a pole.  Because Tituba confessed, she was not subject to hanging (only unconfessed witches could be executed).  She was not tried by the Court of Oyer and Terminer, which oversaw the executions, but by the Superior Court of Judicature, in May 1693, after the wave of executions was over. That court acquitted her of covenanting with the Devil. In Titubas case, during the examination, the judge, John Hathorne, asked her directly about signing the book, and the other acts which in European culture signified the practice of witchcraft.  She had not offered any such specific until he asked.  And even then, she said that she signed it with red like blood, which would give her some room later to say that she had fooled the devil by signing it with something that looked like blood, and not actually with her own blood. Tituba was asked if she saw other marks in the book. She said that she had seen others, including those of Sarah Good and Sarah  Osborne.  On further examination, she said shed seen nine of them, but could not identify the others. The accusers began, after Titubas examination, including in their testimony specifics about signing the devils book, usually that the accused as specters had tried to force the girls to sign the book, even torturing them.  A consistent theme by the accusers was that they refused to sign the book and refused to even touch the book. More Specific Examples In March of 1692, Abigail Williams, one of the accusers at the Salem witch trials, accused Rebecca Nurse of trying to force her (Abigail) to sign the devils book. Rev. Deodat Lawson, who had been the minister in Salem Village before Rev. Parris, witnessed this claim by Abigail Williams. In April, when Mercy Lewis accused  Giles Corey, she said that Corey had appeared to her as a spirit and forced her to sign the devils book.  He was arrested four days after this accusation and was killed by pressing when he refused to either confess to or deny the charges against him. Earlier History The idea that a person made a pact with the devil, either orally or in writing, was a common belief in witchcraft lore of medieval and early modern times.  The  Malleus Maleficarum, written in 1486 - 1487 by one or two German Dominican monks and theology professors, and one of the most common manuals for witch hunters, describes the agreement with the devil as an important ritual in associating with the devil and becoming a witch (or warlock).