Aramco and British Petroluem Essay Example | Topics and Well Written Essays - 5000 words

Aramco and British Petroluem - Essay Example Saudi Aramco or Aramco is the national petroleum and natural gas company in Saudi Arabia. As per the reports, the company holds the largest crude oil reserves as well as the highest daily oil production capacity in the world. Observing such large scale operations, in 2015, Forbes magazine has facilitated Saudi Aramco as the largest oil and gas company in the world. Considering British Petroleum Plc, it is one of the six largest oil and gas companies in the world. This vertically integrated London based company concentrates on all segments of oil and gas industry ranging from exploration of energies to its production, refining and distribution in the global markets. From the company brief, it is evident that these two holds a very important position among the few companies in global oil and gas industry. Therefore, analyzing the internal operational techniques as well as global strategies related to corporate governance and leadership is definitely considered to be a critical task. Th erefore, for the purpose of analysis, the value chain and strength-weakness, opportunities-threats of these two firms will be evaluated and the corporate and global business strategies of these two companies will also be examined. In the next segment, global operational strategies of Saudi Aramco and British Petroleum will be analyzed in terms of Value Chain and SWOT analysis. The value chain defines a set of activities as identified by eminent strategist Michael Porter, analyzing which the company can recognize those factors that have enabled it to gain competitive advantage in the industry segment. Such factors can be categorized under primary and secondary activities. SWOT analysis helps an organization to identify the internal strength and weakness of the company as well as the opportunities and threats lying in its external environment. Saudi Aramco holds a very strong value chain depending upon which the company enjoys huge

Analysis of Global Automobile Market

Analysis of Global Automobile Market EXECUTIVE SUMMARY The purpose of the report is to assess the recent strategies employed by global automobile organisations between 2007 and 2010 based on secondary data and published press. Organisations thereafter refer to global automobile organisations. This report explores the process of reconciling dichotomies at Honda Motors Corporations (HMC) in terms of its strategies and core competences. Several theoretical frameworks were derived from related literature as a guide to analyse and integrate relevant elements from business level and corporate level strategies application. The roles on mergers and acquisitions (MA) applied in the global automobile industry are then discussed. This section is structured as follows: part 1 reveals MA in relation to too much debts and risk of bankruptcy; part 2 describes MA as a strategy to explore potential for product synergy and part 3 illustrates MA as means to access to new technologies and emerging markets. This report examines the corporate social responsibility (CSR) practices initiated by the organisations and its impact on the financial and non-financial performance. The report ends at discussion the Western and Japanese leadership used by the global automobile organisations and their suitability. INTRODUCTION OVERVIEW OF GLOBAL AUTOMOBILE INDUSTRY The automobile industry can be divided into three categories: auto parts vendors, automobile manufacturers and dealers. The global automobile market has been long dominated by Western manufacturers such as General Motors, Chrysler and Volkswagen in 1955 followed by eastern automobiles manufacturers Toyota, Honda and Nissan since 2005. In 2009, Toyota was the worlds leading car manufacturer with approximately 15.3 percent market share, Volkswagen 13.1 percent and Ford approximately 6.9 percent market share (Datamonitor 2009). Recently automobile manufacturers in developing countries such as Hyundai, Tata and Geely have increasingly become vital players in the automobile market, Hyundai is now one of the significant players in the United States market (Fetscherin and Toncar 2010) whereby Tata and Geely have begun to take aim at developed country automobile markets and intend to compete in the global automobile market (Fetscherin and Toncar 2010). The 2008 global financial downturn had negatively impacted the automobile industry into crisis thus many organisations were encountered losses and bankruptcy. Nevertheless, there were four outstanding organisations recorded remarkable profit during this turbulent period: Volkswagen, Honda, Hyundai and BMW (Appendix 1). Forecasts predict that the global car industry will be worth $1,611 billion by 2014 with the volume of 66.2 million units (Datamonitor, 2009). HONDA STRATEGY AND MANAGERIAL DICHOTOMIES HMC established in 1948. Honda develops, manufactures and markets small general purpose engines and scooters to specialty sports cars, had earn an outstanding reputation from customers worldwide. Honda has grown to become the worlds largest motorcycle manufacturer and one of the leading automobile manufacturers. There are seven business units in HMC (Figure 1). Figure 1 Honda SBU.jpg Honda business level strategy versus corporate level strategy in global context Business level strategy refers to the way HMC competes in an industry which it is located. Porter generic strategies framework had been employed to examine each Honda strategic business units (SBU) (Figure 2). Figure 2 Porter generic.jpg Honda sets out cost leadership strategy to produce an urban car with fuel efficient feature, Honda City, a successful model had reflected Hondas innovative and quick response to market demand on inexpensive and fuel efficient (Nonaka 2007). Honda enjoys the cost advantage to produce and market its Hero Honda motorcycle in India by preference to access to raw materials and efficiency of production capability (Ramarao 2009). Honda continuous seeks for cost reductions to competitive position. Differentiation involves offering a unique product with special characteristic however the selling price may not be low (Fitzroy and Hulbert 2005) Honda created Acura series to isolated its common automobile ranges. Acura is a higher range to compete with luxury category, i.e. Toyota Lexus. Honda Acura differentiates itself from product features and engine performance. Honda produces a series of scooter range from 50cc to 125cc to meets different demands for different markets (HMC 2009). Honda launched specialty engines GX160, GX200 and GX390 for better handling and durability suitable for long tail boats which are common water transportation in Asia (HMC 2009). Honda Insight, a hybrid vehicle that incorporated a compact and lightweight hybrid system to offer fuel economy while maintain the pleasure of driving (HMC 2009). Besides differentiation strategies, Honda performs well in its private jets, ATVs, watercrafts, outboard motors and jets. Honda differentiates focus on dual clutch transmission and water cooled engines in its FourTrax Rancher ATVs (HMC 2009). Honda started Hondajet since 2006, the private jet featured by HF120 compact turbofan engine for low emission where the first delivery is expected in 2011 (HMC 2009). Corporate strategy is the future organisations directions against resources possessed by the organisation (Lynch 2000). Corporate strategy links organisations internal resources and the social economic environment that it operates (Lynch 2000). HMCs sense of purpose is to striving to be a company society wants to exist (HMC 2009). In view of intense competition (threats) and strong demand (opportunities) from HMC operating environment (Figure 3), HMC had implemented some value added corporate strategies. Figure 3 Corporate strategy.jpg Product diversification concerns an expansion of product range that Honda supplies. Honda extended its product range from light truck to compact sedan cars. In North America, HMC introduces Pilot, Acura TSX and Acura TL to meet the different market requirements (HMC 2009). HMC broaden its range to launched Honda City in Asia outside Japan as the trend towards driving smaller cars accelerated along with the increase in fuel prices (HMC 2009). Vertical integration is an expansion of range of business related activities that HMC encompasses (Fitzroy and Hulbert 2005). Honda opens up financial services division to lease their automobiles and services centres for pre and after sales services to strengthen its branding position as one stop vehicle provider. Geographical diversification is an expansion to wider geographical areas mainly to create additional market share or obtaining competitive advantages. HMC has a global network of 396 subsidiaries and 105 affiliates in more than five regions and 160 countries recorded 3.5 million units automobiles sales in 2009 (HMC 2009). HMC established its manufacturing plants in various countries to support domestic demand rather than manufacture in Japan and export, this will help in shorten the delivery lead time and incentive in domestic assembly. Successful organisations must outgrow their initial scope of products and geographical areas (Fitzroy and Hulbert 2005). Horizontal integration refers a diversification into different industries. Besides automobile, HMC broadens its business into different industries i.e. aviation business, solar cell business and household cogeneration units (HMC 2009). Honda product-related core competencies versus process-related core capabilities In practice, HMCs capability is as the main drivers for its shareholder values. Honda started with motorcycle business had move on to engine business and the most successful automobiles consists of 77 percent of its revenue. HMCs success underlying its core competence in engines design allows HMC to develop more products i.e. lawn mowers, motorcycles, automobiles and private jets (McGee and Thomas 2007). Substantial increase in fuel price, new customer preferences and spending patterns are a significant momentum to the pricing model and value proposition changes whereby consumers emphasize on good price for reasonable quality (Giesen et. al. 2010). As part of corporate strategy, Honda enhances its Research and Development (RD) particularly in safety technologies to help reduction on the risk of injuries to passengers and pedestrians from car accidents and fuel efficient cars, i.e. Honda Freed and Honda City. Honda recognises the rational to develop non-pollutions product in the first place than to clean up later. The electric car demonstrates a technological solution for the air pollution caused by automobile emission (Bernabo et. al. 2009). However, due to the charging centre constraints and maturity of the power supply capacity for longer journey, HMC focuses on its hybrid car Insight to meet the demand. Lean management focuses on eliminating waste (non-value adding activities) throughout HMC production systems (Chen et. al. 2010). By selective sharing of design development, HMC can focus resources and competencies on a limited set of innovative ideas and reduce their direct costs for innovating many of the components in their products (Chen et. al. 2010). A safety-induced crisis causes obvious problems for a brand like Honda which pride itself on reliability and the promise to deliver the power of dream(Banks 2010). HMC need both vendors and dealers to complete the complicated fabrication processes and reaches end consumers. In contrast to many competitors, HMC realises the importance of turning vendors into partners, loop the vendors into product design and development to shorten both new product lead time and reduce overall cost concerning the inventory holding (Nguyen and Slater 2010). The vendor development programmes include joint improvement, information sharing an updates, offer assistance to lift up vendors technical capabilities (Nguyen and Slater 2010). i.e. HMC make use of its vendor network to expand low price components accessibility in Vietnam had considerable reduce HMC production cost thus selling price (Oh and Rhee 2010). HMC factory networks operate the same way so each is able to make any vehicle in the product range according to market demand. This gives the company tremendous flexibility, efficient logistics to enhanced its manufacturing (Economist 2003). HMC installed special data systems in each of its factories to monitor weather forecasts to allows manager to predict bad weather which may affect deliveries so they can decide the stock up level to prevent material shortage (Economist 2003). To enhance the dealers ability, HMC trains and develops its dealer networks with operating procedures and policies in setting up the showroom, merchandising and service management (Oh and Rhee 2010). Honda Vietnam strict controls over vendors to ensure stable and good quality supply (Oh and Rhee 2010). Conclusion The analysis shows the density of HMC in managing its global organisation. Business strategies and corporate strategies are in different dimension but intimately link to each other, HMC needs to understand the external context of business when develop business and corporate strategies. HMC strengthen its production efficiency, flexibility and sales capabilities in various business units to meet the demand for cost effective products at the same time improve its corporate structure towards more flexible and dynamic to meet customers demand, business environment a society as a whole. There is no single best strategy applied for all products, Honda had demonstrated adequate thinking in developing suitable strategies for its products in different geographical areas. THE ROLE OF MERGERS AND ACQUISITIONS Mergers and acquisitions act as a strategic tool to obtain wider market share and create synergies-improvements in competitiveness, customer value or product innovation that can be achieved by integrating two entities (Gadiesh et. al. 2001, Thompson et. al. 2005). The global automobile business faces severe challenges with reduction in sales and intense competition and opportunities in emerging markets, such as China and India. Network-level strategies is useful in turbulent and growth markets yet an organisation had limitations access or unable to pursue that competition by on its own (Cools and Roos 2005). Boston Consulting Group (BCG) matrix was used to analyse global automobile organisations positions (Figure 4). Figure 4 BCG.jpg MA in relation to too much debts and risk of bankruptcy One of the most important factors in mergers and acquisitions is debt and bankruptcy during recession (Cappell 2010). Organisation fall in BCG Dog category (Figure 4), i.e. Volvo, General Motors and Ssangyong are forced look for suitable partner to sustain its limited market share. A research carried out by Ostermann and Neal (2009) reveals that there were 25 automobile vendors are in the high debt and bankruptcy risk (Figure 5). Figure 5 25 Bankruptcy.jpg If a business unit no longer generate positive returns on investment for the organisation without massive investment, some organisation opt trade off the business unit and exit the industry (Lynch 2000). Ford Motor sold Volvo to China Geely at US$1.8 billion as part of Fords strategy of exiting European luxury lines to focus on Fords brand (Starbiz 2010). In the scramble to swap gas guzzlers for smaller vehicles thus reduction in use vehicle residual value forcing General Motors finance arm into huge losses on cars returned after leased (The Economist 2009). Ssangyong, formerly controlled by Chinas SAIC Motor Corporations was under bankruptcy protection in early 2009 due to cash shortage crisis to be acquired by Indian largest sport utility vehicles manufacturer, Mahindra (Bloomberg 2010). Mahindra gives Ssangyong financial supports, engineering and sourcing synergies (Bloomberg 2010). MA as a strategy to explore potential for product synergy To response to the zero COÂÂ ² emission, BMW, Daimler and General Motors formed an alliance in 2005 to develop hybrid vehicle technology. The ultimate solution to zero carbon dioxide emission is electric cars (Bernabo et. al. 2009). Nissan sees future trends towards electric car however electric cars design is highly challenging thus Nissan joint venture with NEC Tokin for synergy where NEC Tokin focuses on cell technology and electrode manufacturing so Nissan can concentrate in mass production (Taylor III 2010). Automobile organisations are focused on potential partners technological ability than cost savings achievement (Cappell 2010). PSA Peugeot produces diesel engines with Ford Motor (Financial Times n.d.). Ford Motor and Fiat share a manufacturing plant in Tychy, Poland to produce Ford smaller car, Ka and Fiat 500 (Financial Time n.d.). Daimler announced strategic partnership with Renault and Nissan to build small cars, engines and van together (Financial Times n.d.). In addition, as pressure on developed country manufacturers increases to reduce costs, they might look to China as sources of inexpensive manufacturing and might increasingly manufacture their cars in China and export them to developed countries (Fetscherin and Toncar 2010). General Motors, Ford and Chrysler are currently producing cars in China in joint ventures with Chinese manufacturers (Fetscherin and Toncar 2010). Many family-owned organisations i.e. PSA, BMW and Fiat are reviewing their portfolio and seeking restructuring alliances to lower cost in part purchase and spreading research and development cost however subject to Europe Union competition ruling (Czinkota and Ronkainen 2001). MA as means to access to new technologies and emerging markets Many organisations have responded to globalisation by looking at joint ventures with international partners when they needed to bridge a technology gap (Czinkota and Ronkainen 2001). A survey carried by KPMG in 2009 shows 85 percent of the automotive senior executives presumed new technologies is an influencing issue in global automotive industry (Chappell 2010). PSA Peugeot Citroen joint ventures with Toyota to produce small cars in the Czech Republic for achieve economies of scale (Financial Times n.d.). Chrysler builds minivans for Volkswagen in Winsor, Ontario since 2008 (Financial Times n.d.). Traditional automobile markets are still expanding but more importantly the emerging markets in China, India and Korea are expanding rapidly likely to enter the US automobile market (Fetscherin and Toncar 2010). Network level strategy plays an important role to uplift the competitive advantage to compete in automobile industry, especially Chinese automotive manufacturers who follow the footsteps of the Western, Japanese and South Korean car manufacturers. China automobile manufacturers will aggressively enter the US market by either exporting or by building their own production sites in the USA (Fetscherin and Toncar 2010). The implication of MA is to reduce threat while simultaneously capitalising on emerging market growth (Gill 2008). Acquisition of Ssangyong by Mahindra gives Mahindra an access to distribution networks of 1,300 dealers outside South Korea and Russia automotive market where previously Ssangyong exports vehicles (Bloomberg 2010). Conclusion Mergers and acquisitions had been widely practised in automotive industry due to the automotive manufacturing investment for new entry is huge and need years of experiences and expertise. Many joint ventures were found among automobile organisations aim to lower their production costs to make the selling price more competition; some merger strategy had achieved synergy in product design and development. In the turbulent economic environment, mergers and acquisitions give automobile organisations a quick fix and direct access to a growing market for more market share. Mergers and acquisitions are mainly creating value for mutual benefits to both parties. 4.0 CORPORATE SOCIAL RESPONSIBILITY INITIATIVES The conventional business goal is maximising shareholders returns (Bonini et. al. 2006, Whittington 2001). However organisations are perceived as being socially responsible may create valuable market opportunities and increase more satisfied customers (Bonini et. al. 2006, Crane and Matten 2007). Davis (1973) stated that corporate social responsibility (CSR) refers to organisations consideration on action that will accomplish environment social benefits and ethical responsibilities along with the financial gains which the organisation seeks (As cited in Hoffman 2007, Polonsky and Jevans 2009). CSR helps to improve employee engagement to strive for better management, declining in employee perceptions will leads to significant threats to engagement (Hall 2010). Organisations always have an implied contract to embraces a diverse range of stakeholders which may have different social interests (Bonini et. al. 2006, Polonsky and Jevons 2010). Organisations can opt to react, defence, accommodate and proactive towards CSR as part of global strategies. Being socially responsible important however organisations must make a conscious decision about the degree to which they then leverage their CSR activities, thus translating doing good into strategic benefit (Polonsky and Jevons 2009). The five global automobile organisations demonstrate adequate CSR initiatives to improve their brand standing in automobile industry (Appendix 2). The CSR actions had contributed both positive profits to Honda, Hyumdai, Toyota and Volkswagen, also a negative loss to Daimler even though Daimler pursing quite adequate CSR actions. Global automobile organisations are aiming to achieve the highest category of the CSR: Philanthropic responsibilities. The most common practices are social projects, donations and sponsorship (Hall 2010). CSR needs resources such as funds and employees participation. Organisations are facing dilemma to satisfy the stakeholders with different social interests (Polonsky and Jevons 2009). Some authors criticised that global automobile manufacturers who produce fuel guzzling SUVs for urban users at the same time promote fuel-efficient vehicles to public (Polonsky and Jevons 2009). CSR may not directly impact the organisations financial performance as revenue may be affected by other factors such as economic. However a significant observation from literature reviews that organisations are difficult to sustain or strengthen its market share standing if they are not socially responsible to the society, this may adversely affect their long term value, the brand, talent and relationship (Bonini et. al. 2006, Hall 2010, Piotrowski and Guyette 2010). WESTERN AND JAPANESE LEADERSHIP APPROACHES When automobile industry was leaded by Western countries, Western leadership by Frederick W. Taylor was widely applied in the automobile manufacturers such as General Motors and Ford (Darmody 2007). His idea of leadership was planning and decision making lies on management level while production workers only participate in predetermined executions to ensure efficiency (Almashaqba and Al-Qeed 2010, Darmody 2007). Western leadership was emphasised on efficiency to maximize profits. In Western leadership, the role and responsibilities, authority and accountability, procedures and practices between management and workers are formalized to avoid the conflict in the relationship (Almashaqba and Al-Qeed 2010). Japanese leadership deliberately stresses decentralized management structure, praises the achievements of individuals and gives rewards to outstanding performance (De Wit and Meyer 2004). Autonomy similar to trust in eastern countries, decentralization and rewards can improve employees morale thus productivity. Japanese leadership introduces lean strategy and just-in-time production techniques to achieve production flexibility without increasing indirect labor costs (Shadur and Bamber 1994). These provide automobile organisation to deliver what is expected by customers in just-in-time (Chen et. al. 2010). A research done by Abbggelen and Stalk (1985) shows that the United States automotive plants required 250 percent human resources compared to the Japanese plant to make similar vehicle (Shadur and Bamber 1994). Just-in-time approach is dependent on the balance between the vendors flexibility and users flexibility (Slack et. al. 2007). Parker and Slaughter (1988) comments that lean production is a intensifies the pace of work as the production is operated in closing to the breaking point without supporting buffers, organisation may face severe difficulty when there is a material shortage (As cited in Shadur and Bamber 1994). Some analysts see lean production techniques as merely a subtle form of management control (Mehri 2006, Shadur and Bamber 1994). Japanese leadership focuses on waste reduction and value-adding activities, these focuses are short-term benefits thus Japanese leadership may ignore long-term competitive advantages (Chen et. al. 2010). A recent qualitative research had lifted Japanese leaderships veil as limited potential for creativity and innovation, narrow professional skills, worker isolation and harassment, dangerous conditions on the production line, accident cover-ups, excessive overtime, and poor quality of life for workers (Mehri 2006). The Japanese and western leadership are different in process. There are pros and cons between Western and Japanese leadership and not single ultimate solution for automobile organisations in different geographical area, the leadership application is subject to the culture of the workforce, labour union and availability of resources i.e. logistic, material and expertise. Shadur and Bamber (1994) points out General Motors plants in Australia faces challenge when they started lean production due to the culture different from the labour union and employees who used to work in a team than individual. Although several criticisms of lean production were discussed, however it is concluded that Japanese leadership can potentially contribute to a substantial improvement in automobile manufacturing competitiveness. CONCLUSION Business strategy is about creating sharper scope focus on a business unit contrast with corporate strategy which concerned an overall portfolio of several business units a whole. HMC had strengthened both product-related core competencies and process-related capability to strive for excellence in HMC establishment as a responsible organisation. Mergers and acquisitions are very important to global automotive organisations for reduce the risk in bankruptcy, achieve cost reduction and production effectiveness and explore potential for new product and gives instant access to new technologies. Cost and stakeholders value is crucial consideration when organisations decide on the investment in CSR action plans since the financial returns are not easily measured. This report concluded that there are more advantages than disadvantages for CSR as strategic tool in global strategies. Both Western and Japanese leadership was develop in the different industrial time therefore some of the leadership element many not be suitable to automobile organisations such as mass production in low turnover season. There is no single definite answer to the best combination of leadership as application is based on culture, geographical and strong commitment from vendors to avoid production breakdown. LIST OF REFERENCES Almashaqba, Z. M. S. and Al-Qeed, M. A. N. (2010). The Classical Theory of Organisation and its Relevance. International Research Journal of Finance and Economics. Vol. 41. EuroJounals Publishing, Incorporated. Banks. T. (2010). Rescue remedies. Design Week. p.9. http://elib.segi.edu.my:2094/ehost/pdfviewer/pdfviewer?vid=1hid=15sid=d7731cd4-b9d9-417c-b0d0-7caa46ceba42%40sessionmgr10 [Accessed on 31st August 2010]. 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Hector Tobars The Tattooed Soldier Essay -- The Tattooed Soldier Essa

  Ã‚     Ã‚  Downtown Los Angeles is one of the busiest commercial centers in the United States. However, the city holds two groups of people in different economic level-the homeless and the working class. Hector Tobar frequently includes the landscape of the setting in downtown Los Angeles in The Tattooed Soldier. The novel is about two immigrants from Guatemala who have moved to Los Angeles. The protagonist, Antonio, takes a revenge on the antagonist, Longoria because he murdered Antonio's wife and son when he was a Guatemalan soldier. Tobar applies a number of metaphors to connect the buildings and freeways in downtown to Antonio's position in the city. Buildings, freeways, and shadows are metaphors for Antonio's economic and social status.   Ã‚  Ã‚  Ã‚  Ã‚  Tobar uses description of buildings to reinforce Antonio's economic and social position in life. He informs the reader about the squat apartment buildings when the protagonist is on the way to a homeless camp, which have a significant contrast with the skyscrapers where Antonio observes later. Everyone can see the skyscrapers, but not many people know the existence of the short apartments. Tobar uses the invisibility of these apartments to reflect the inferiority of the protagonist in Los Angeles. Antonio's existence is the least significant as an illegal immigrant. He is seen as a parasite that is not accepted by the city. The apartment owner, Hwang, even forces him to leave with a call to the police (9). On the other hand, the auth...

Investment and Retirement Planning Essay

Introduction †¢ Retirement is the point where a person is not in any kind of employment /business/occupation. †¢ This usually happens upon reaching a determined age, when physical conditions do not allow the person to work any more. †¢ Retirement could also be due to personal choice-either due to adequate pension or personal savings or due to a regular unearned income like interest, rents etc. †¢ The retirement age varies from country to country but it is generally between 55 and 70. †¢ Certain jobs, which are of dangerous nature or of fatiguing nature, may have an earlier retirement age. Support and Funds †¢ Retired persons support themselves either through superannuation, pensions, savings or through family (earning children), as in Indian families. †¢ In some other countries the government provides the pension benefit to all its citizens. Retirement Planning †¢ Retirement financial planning refers to a collection of systems, methods and processes which support a family unit’s (client’s) desire to achieve a state of financial independence. †¢ It is a process of determining the financial goals at the point of retirement. †¢ It requires constant monitoring of the progress of the plan and then taking adequate remedial measures Need For Retirement Planning †¢ Increasing Life Span †¢ Low Returns In Conventional Modes Of Savings. †¢ Unintended Contingencies. †¢ Increasing Medical Cost. †¢ Diminishing Trend Of Joint Family System †¢ Inflationary Trends †¢ Absence Of Social Security Benefits By The State †¢ Pursuing Hobbies †¢ Falling Interest Rates Steps In Retirement Planning †¢ Decision retirement about the retirement age option. †¢ Setting of financial goals †¢ Saving of relevant amounts w.r.t. goals †¢ Investing in appropriate modes †¢ Calculation of net worth †¢ Regular monitoring of financial plan and incorporate the necessary amendments in the plan. Factors Affecting Retirement Planning †¢ Life style †¢ Personal values †¢ Nature of income- salaried, business or professional; stable job/non-stable job; private job/government job †¢ Number of years left for taking retirement †¢ Inflation rate †¢ Present net worth of a person †¢ Risk appetite of a person †¢ Services of a certified financial planner †¢ Conviction in the retirement planning effort †¢ Seriousness & perseverance for retirement planning Life Expectancy & Career Stability LIFE EXPECTANCY †¢ Life expectancy is the major ruler of retirement planning. †¢ As per the Indian context, still the importance of retirement planning is not clearly identified. †¢ With the increasing life expectancy, high standards of living and high expectations for the upcoming future, pressure is building up for fund allocation, to meet up the needs of retirement. †¢ Longevity of life expectancy has to be kept in mind while making out a retirement plan. †¢ Key factors to be evaluated while making out a retirement plan are present life style, income and capacity to save, family circumstances, level of inflation prevailing in the economy & the standard one would like to maintain at the time of post retirement INDIA & RETIREMENT PLANNING †¢ 90% per cent of India’s total working population is not covered for postretirement life. †¢ The main objective of retirement planning is to create a well funded and safe future for the client. †¢ Financial needs of the client needs to be clubbed between his/her current income and post retirement expenditure. †¢ To maintain up current life style one has to plan to save almost 65 to 85% of current income. Life Cycle †¢ Every phase of life cycle has a different level of income, expenditure and saving. †¢ The first phase of life cycle is the childhood where an individual has no earnings but certain amount of money is spent on him/her (school fees, clothing, food etc). †¢ Second stage comes where the individual may or may not start his real earnings or a stable career. †¢ In the third stage an individual enters a stable career and has good amount of earnings to save and start planning for his/her retirement †¢ Fourth & fifth stage is time period to save maximum and allocate maximum funds for the retirement planning. †¢ In the sixth stage comes the old age. At this stage the savings tend to reduce because of medical expenses, new expenses related to old age etc. †¢ The last two stages of the life cycle is the retirement period where the saving are utilized to cover the real retirement years or retirement costs. Career Stability †¢ Career stability is one of the most important factor which clearly needs to be evaluated to develop a retirement plan. †¢ Fund allocation for retirement is done with the help of surplus earnings of an individual during his/her pre-retirement period. †¢ Stable career and in return stable earnings provides a scope for having well planned and organized retirement plan †¢ Employers also have a important role in retirement planning as they contribute in pension plans other contribution plans etc. †¢ Career stability helps to draw clear anticipation of future earnings can be which helps in retirement planning Major Factors Affecting Career Stability †¢ Job Satisfaction: Job satisfaction covers the factors like the level of pay and benefits, the perceived fairness of the promotion system within a company, the quality of the working conditions, leadership and social relationships, and the job itself. †¢ Alternative opportunities: If the market is opening up for new jobs and careers and individual can provide his works onto those opportunities the career stability can embark for changes. †¢ Employer-Employee Relationship: This issue covers the factors like loyalty of an individual towards the employer, future protection provided by the employer, motivation, leadership, timely appraisals. †¢ Changing economic conditions: The economic conditions of a country like recession cycles, developing sectors, problems related to any particular sector private and public ownership etc also affects the career stability. †¢ There are also various policies and economic strategies of government related to employment & foreign investments etc which have a direct affect on employment scenario. PRE-RETIREMENT COUNSELLING Introduction †¢ It is an planning. interactive part of retirement †¢ In pre-retirement counseling all the basics of the retirement plan are drafted as per the needs and expectations of the client and as per the client’s present and anticipated financial conditions. †¢ Financial planner has to clearly evaluate the needs, attitude & lifestyle of the client to have a strong and trustworthy relationship with the client. Steps For Retirement Plan †¢ Inauguration Of Retirement Plan: Inauguration of retirement plan would depend on life expectancy. If the client starts accumulating funds for his/her retirement early, with small savings & less burden he will be able to achieve the goal. †¢ Desired Retirement Status: This would involve budgeting, income sources and proper asset management etc. Estimated expenditure and sources of income during the retirement years to the client have to be evaluated properly. †¢ Retirement Expenses & Sources Of Income: Clear identification of all the costs & incomes has to be made. Provisions for allocating 65 to 70% of current income for the retirement period should be drawn. Insurance With Retirement Planning †¢ Insurance plans with a cash back or whole life insurance are suitable because they provide insurance as long as the premiums are paid and also accumulates savings, thus it has a cash value. †¢ It also helps to pay off uncovered medical costs, funeral expenses & also acts as an income replacement for survivors. †¢ With increasing life expectancy, and other challenges a life insurance can provide a life-long, worry-free retirement and insurance protection. †¢ Major expenses of the retirement years are the health care costs, health insurance can act as a helping hand in that case to meet up these costs. 26/30 Estate Planning With Retirement Planning †¢ Estate planning is the process of accumulating and disposing of an estate to maximize the returns of the estate owner. †¢ Various tools of estate planning are used like Wills, Trusts, Gifts, Contributions & proper evaluation of Estate taxes. †¢ Estate planning should maintain out the costs of the property and should develop an estate plan to give proper and safe income generation. †¢ Estate plan will cover all the legal formalities and all the documentation regarding future transactions. Tax Planning With Retirement Planning †¢ Savings and investments are interconnected. †¢ Proper management of savings and investment results to tax benefits and these become very important at the time of retirement. †¢ Retirement planner must clearly evaluate the aspects of its liquidity, security, and the most important one the return and tax income over such investments. †¢ Proper tax planning can itself prove out to be a saving tool because with effective tax planning is basic foundation for effective retirement planning.

Atom History Essay

An Atom is a basic unit of matter that consists of a dense, central nucleus surrounded by a cloud of negatively charged electrons. The Atom was theorized by a man named Democritus of Abdera, Thrace in between c. a 460 BC – ca. 370 B. C. Atom is derived from the Greek word â€Å"atomos† , which means to be uncuttable. He had a theory that everything is composed of â€Å"atoms†, which he believed that these minuscule objects are indivisible, indestructible and have and always been in motion, had a void that exists between atoms, they are solid, homogeneous, and differ in size, shape, mass, position, arrangement, etc. Democritus identified all of these qualities by using the analogies from our sense experiences. In the early 1800 John Dalton, a meteorologist/ color blindness physician, came up with his own atomic theory and The Dalton Model. Even though, the idea of atoms were already proposed by Democritus, his theory was different in that it had the weight of careful measurements behind it. John Dalton’s Atomic Theory consisted of these facts: All elements are composed of tiny indivisible particles called atoms. Atoms of the same elements are identical. The atoms of any one element are different from those of any other element. Atoms of different elements can physically mix together or can chemically combine with one another in simple whole-number ratios to form compounds Chemical reactions occur when atoms are separated, joined, or rearranged. Atoms of one element, however, are ever changed into atoms of another element as a result of a chemical reaction. Important changes were revised from his theory like his atoms are indivisible which is wrong since atoms can be divided into subatomic particles like Protons,Neutrons, and Electrons. Next, is his theory that Atoms of all elements are the same, this is proven wrong by the discovery of isotopes. Lastly, his theory that elements can’t be transformed into other elements, which is also proven wrong because elements can be changed into other elements through radioactivity. About less than 100 years later after John Dalton’s findings, in 1897 Sir Joseph John â€Å"J. J. † Thomson, OM, FRS of Great Britain received the 1906 Nobel Prize in Physics for his discovery of the electron and for The Thomson’s atomic model. He assumed that the body of an atom is a spherical object containing N electrons confined in homogeneous jellylike but relatively massive positive charge distribution whose total charge cancels that of the N electrons. It was sometimes nicknamed as plum pudding model, because of its features as you can see below. Next great physicist that would step up to the plate and take over world of Atoms, was The 1st Baron Rutherford of Nelson, also known as Ernest Rutherford OM, FRS. He was also awarded with a Nobel Prize in Chemistry in 1908, just like Thomson did a couple decades ago, for his investigations of the elements and discovery of the chemistry of radioactive substances. He proposed a model in which the electric charge +Ze in an atom is not distributed over the whole area of the atom but concentrates in a small area. Rutherford’s atomic model is most likely called the Rutherford model or simply Rutherford model of the nuclear atom. It is to be seen to have a black big ball at the center as the nucleus and small red points moving around the nucleus are electrons as seen below. In a long line of the Bohr Family line as great physicists the most exemplary member in the authors opinion is Mr. Niels Bohr of Denmark. He took great advice from both great past physicists both J. J. Thomson and Ernest Rutherford. Which also led him to win a Nobel Prize in Physicists in 1922. One of his best researches was for his Model of the Atom, commonly named The Bohr Model. In his version of the Model the neutrons and protons occupy a dense central region called the nucleus and the electrons orbit the nucleus much like planets orbiting the Sun. It is sometimes also called the planetary model because he theorized that the attractive gravitational force in a solar system and attractive electrical force between the positively charged nucleus and the negatively charged electrons in the atom are mathematically of the same form. As compared Below. V. S Another Great Austrian physicist in 1926 named Erwin Rudolf Joself Alexander Schrodinger, also created his own view of Atom. He improved atomic models to a whole other level. Schrodinger used the new quantum theory to write and solve a mathematical equation describing the location and energy of an electron in a Hydrogen atom. Thus the quantum mechanical model was born. His view of the atom can be seen as â€Å"layers within layer† in terms of the electron shells. While not an accurate physical picture of what is happening with the electrons, it does allow to be visually grasp an otherwise concept. He says that each electron shell is made of a number of sub-shells. ( the number of sub-shells in a shell depends on what the shell number is). In a picture it looks like this: The last and final physicist in this Atomic Theory is named Sir James Chadwick, CH, FRS, of the United Kingdom. In 1932, Chadwick proved that the atomic nucleus contained a neutral particle which had been proposed more than a decade earlier by Ernest Rutherford but he added the knowledge that it has the same mass as a proton. Now with the Neutron added, the atomic model seemed more complete than ever. The overall charges remained the same, and now there no longer seemed to be a discrepancy between the atomic and the atomic number. Picture exampled below.