Leadership styles and strategic management

Leadership styles and strategic management Introduction Link between strategic management and leadership Analyse the Impact of management and leadership styles on strategic decision Evaluate how leadership styles can be adapted to different situation Example . INTRODUCTION: Managers are who do things right and leaders are who do the right thing The general concept according to my understanding from various literature reviews are that Leaders leads people and managers manage all things in organization, furthermore to my concepts the important point is that leaders are the people who bring changes in organizations and managers may be considered as people who sustain the day to day organisational activities. The main point in this task 1, to explain the link between Leadership and management of an organisation, here I am elaborating leadership and management of Martin McColl, this organisation having approximately 1,000 outlets and 50,000 employees across United Kingdom, the main focus of the company is on Books, Cards, Magazines, Confectionary, Toys and Drinks etc. Link between strategic management and leadership: Orders which are passed down from leader and the managers role is to pass orders down the chain of command A leader is described as someone who has the capacity to create a vision, and to translate it into action and sustain it (Bennis, 1989), this statement can also be justified as there are differences between management and leadership, although functionally they can be combined in the same individual (John Kotter, 1990). Leadership without Easy Answers by Ronald A. Heifetz, According to In business, we see an evolution of the concept of leadership. For decades, the term leadership referred to the people who hold top management positions and the functions they serve. In our common usage, it still does. Recently, however, business people have made a difference between leadership and management, and applying leadership has also approached to require delivering a vision and affecting others to understand it through non-coercive means. Roosevelt says about link between leaders and managers that People ask the difference between a leader and a boss, the leader works in the open, and the boss in secret. The leader leads and the boss drive. This report review explains the relationship between leaders and managers that they perform on their capacity within the company, they effort together to complete the targets of company. Leaders consider about targets and are effective instead of responsive in molding concepts. Managers perform to control choices. Leaders progress fresh methods to long-standing difficulties and open concerns to new possibilities. A manager is a trouble solver- what troubles have to be resolved and what are the finest means to complete outcomes? Link between leaders and management has robust domination in organization. Managers Leadership Managers administer. Leaders innovate. Pursue the established course. Create the course that managers Pursue. Safeguard that people complete objects. Safeguard that people want to complete objects. Safeguard that people complete objects. Safeguard that people complete the right objects. Safeguard that people complete objects better. Safeguard that people complete better objects. Source: international business-society management by Tulder, Zwart. Example in Mc Coll: As I defined the report review over, I am assessing these reports with the assistance of Martin McColl example. Martin McColl under the Steve Leadership management is extremely victorious. There is a solid link between leader and management. Leader and managers retains link over video meetings, mails and telephone. Meetings for internal dialogues are maintained to a set of procedures calculated to maximize production, and reduce expense, to complete a result. Centre is on external factors, especially the customer and the impact of the company. Importance in Martin is known always to action that boosts the consumer experience, increases competency or enhances income and profitability. There is a huge understating of mutual regard developed between the leadership group and the teams. People are suitably interested, and satisfied for their functioning which is based upon their rewarded modality. It is valuable to remember here, that not everyone is encouraged by a regulatory reward, or a paradigm trophy. A Great Leader recognizes this, and exercises to their improvement. On 28 Nov 2010 major snow fall hits Scotland. There were difficulties with many ways. Managers must come on time thats managers responsibility. On the day of snow martin McColl managers arrived on time in all branches while journey was very problematic due to the heavy snow but all managers came on time and have done their work because it was not easy for anyone to come out house. So that was a great success under the best leadership. Managers are also leaders. Link between leaders and management has strong impact in decision making in organization and this impact effect in every place and every area in McColl such as finance, marketing, policies. impact of management and leadership style on Strategic Decision: Decisions are at the heart of leader success, and at times there are critical moments when they can be difficult Organizations all over the world are entirely involved with knowing, finding and rising leadership. Irrespective of the kind of organization, leadership is perceived to perform a dynamic role in forming high performing teams. Leaders are handling greater confronts than ever earlier due to the amplified environmental trouble and the varying nature of the organization. The existing era not only needs having a reasonable edge and constant profitability then again also the safeguarding of ethical values, submitting with civic responsibilities and forming a safe and fair job environment. Leadership is one of the serious elements in improving organizational functioning. Being accountable for the growth and implementation of tactical organizational decisions, leaders must obtain, develop and utilize organizational capitals optimally in manner to carry out the best goods and facilities in the best value of participants. In short, valuable leadership is the major cause of reasonable benefit f or every type of establishment (Zhu et al., 2005; Avolio, 1999; Lado et al., 1992; Rowe, 2001) Decentralised structure: In Martin McColl autocratic leadership style portrays that manager keeps as much command and decision making authority as possible. These leadership kinds develop several sources of power and impact variously on the levels and extent to which staff consider them as making a impact to organizational decision making. Both the excellence and extent of staff contribution in decision-making cultivates to wane. Each store of McColl has a store manager who can make accurate decisions regarding their store. The store manager is accountable to a regional manager high-ranking managers have time to focus on the most essential decisions. Collaboration with group members: Martin McColl leader takes decisions in association with team partners, often using majority rules or similar social decision schemes, whereas a counselling leader takes decisions, after discussion with team fellows about their ideas. Empowerment: McColl managers manage to be more concentrated on output targets and attainment of goals. Their influence is based on their capability to complete targets, often as a outcome of quick decisions. Decision taking is a process of empowerment. In McColl stores, encouragement is increase motivation and therefore means that staff output increases. Knowledge skills: People lower down the chain have a greater understanding of the environment they work in and the people (customers and colleagues) that they interact with. This knowledge skills and experience may enable them to make more effective decisions than senior managers. Faster Changes: Participative styles in McColl enabling departments and their employees to respond faster to changes and new challenges. Whereas it may take senior managers longer to appreciate that business needs have changed. 1.2 Example in Martin McColl: Martin McColl is UK based corporate company. Martin McColl has a democratic leadership where subordinates involve in decision-making. Company has a board of directors and Steve is a head of directors. It is seen that Martin has authoritarian systems in which their people work as directed. Merger and acquisition continued in martin McColl. In 1998 Forbuoys acquired Martin Retail Group which was before RS McColl. In 1999 company launch new convenience concept McColls. In 2004 the company acquired Dillon stores. In 2005 company changed its name to Martin McColl Retail Group and now martin is the UKs leading neighbour retailing group. These changes allow leaders and managers to makes good decisions which give the strength to business. These changes brought many changes such as economic condition been changed, development changed, competition increased this changes brought new markets like stationery stores, specialist card shops. Furthermore supermarkets like Tesco and Sainsburys were selling everything that Martin did. So there was a big competition. Knowledge sharing and strong communication always been there so the strategy of Martin was focus on its core activities and increase, improving buying power sell higher margin items and makes their with sales of newer lines. Company have a wide variety of roles at two head offices in Scotland and Brentwood. Here company centralise core business divisions including Central Retail Operations, Trading, Marketing, Finance, Supply Chain, Business System etc. In all these above cases, management and leaders realized that changes were occurred and react actively. And in all these cases, they responded only when the competition forced them to do so. Conclusion: In taking decision, reflect the right between leadership type and the features of organization. Similar more significant, retain that things change. Look for adjustment. The well and good leaders are who have educated how to move from one leadership type to another as situations needs. If one candidate expresses evidence of being able to shift easily among several of these type, that might tip the balance. 1.3: Leadership style adaptation to different situation: Leadership style is the typical approach of a particular person used to lead people. Management theorists try to discover one best leadership style for all situations. Researchers say that there are internal and external environments that have significant impact on leader effectiveness. For example in restrained outer opportunities leaders are obliged by competition, legislation, technology, changing markets and restrained resources when taking planned decisions. Fiedler (1967), who led broad research on the situational aspects of leadership efficiency, recognized factors that define what style of leader-implemented best. He assessed connections between test scores of leaders and their function associated to situational issues. The relations-motivated leader performs best where the leader situation is not sound. Task-motivated leaders perform best when the leader-member relation is good and the leader power position is sound. The latter category represents irrelevant member relation and a weak leader who is trying to deal with an inadequate condition. Because that co ndition is critical, Fiedlers model would require a task-oriented leader to retain the situation from falling apart. An obvious substitute would be to replace the leader. To deal with the issue of identical style to the situation, Vroom and Yetton (1973) developed an attitude that deals with leader-subordinate communication. He identified that an applicable style depended on conditional variables involving the leaders capability, the job structure, and the employees enthusiasm to take a solution. They achieved that the main factors in contribution of leader power are the expansion of technical effectiveness and subordinate inspiration or recognition. If technical effectiveness is not critical and inspiration and recognition are not essential, the decisions are taken by the leader solely. On the an other hand, if the technical difficulties are significant but inspiration is low, the leader tries to get more information. When scientific effectiveness is irrelevant but inspiration and recognition are important, delegation gets a valuable method. Lastly, if the difficulty is extraordinary on the practical level and there is a demand for recognition, then the decision is distributed with the team. The conditional factors of leadership reveal there is frequently, but not essentially optimally, a stability in the performance of a leader when he or she presents in various situations. As the organization flourishes, team building and the exchange of views become more significant. Involvement tactics are used more often. Now the organizational divisions are produced and the major question is how the job should be divided. This needs discussion. Once the organization is into manufacture, duties are more regular, but time is critical. This asks for more focus. Throughout, indirection, utilization, redirection, and repudiation can be used. The tactics and when to exercise them are summarized in Table 2. According to Daniel Goleman six styles of leading have different effects on the emotions of the target followers and each style appropriately as the circumstances. Which are: Visionary leader, Coaching leader, Democratic leader, Affiliative leader, Pace-setting leader, Commanding leader. As Goleman provides a good framework of leadership styles so I can say that its certainly true that no leader always leads in a particular kind but adapts to situations. Few styles are there counting Goleman styles, these styles are generally the most effective. Attached table 1. There are five basis of power Coercive power, Reward power, Expert power, legitimate power, and Referent power. These five bases of power presented by French and Raven in 1959. Among the five bases of power there are three bases in which the Steve leadership is founded. These are legitimate power, expert power and referent power. Through his position he is able to lead the companys people. His practice in the company makes him very knowledgeable of the company and its customers. He encourages people and constantly empowers them. He is also charismatic. Example of Martin McColl: Employee Relationship: As a participating leadership in the past few years Martin performance and profitability have been transformed by employee engagement; which show a clear improving engagement and improving performance of employee. Martin engaged employees indicate they have a good understanding of how to meet customer needs. Individual employees in companies with strong engagement strategies described to us how their working lives have been transformed for the better. Customer focused strategy: Martin leaders have vision thats why they set objectives of company and have customer retention strategy for this they having promotional sale and delivering newspaper. Martin McColl customers are familiar with what newspapers and magazines in their local store and know the prices they normally paid. As a result, Martin delivering ordered newspapers at their home. Early experiments in began and, by the end of 2008, Martin was making 200 deliveries a week in an area a very small beginning. Ethical behaviour: McColl leadership thinking ethically and behaving ethically in UK thats why they are taking responsible decisions. They reduced to use of plastic bags. Martin business social liability is anxious with the methods in which an organization surpasses the minimum responsibilities to shareholders stated through regulation and commercial governance. Martin discussing better promotional prices from sellers that small individual chains are incompetent to fit. The goods and service improvement methods of the martin have been significantly re-engineered, to help better management of product developments and more progressive delivery of wide varieties of products to customers. Product interest has determined on enhancing main ranges and presenting quality products. Martins innovative modes of proceeding the customer shopping practice, as well as its strengths to branch out into finance and insurance have also capitalized on strong brand reputation Financial Environment: Under enormous leadership a robust financial functioning has been revealed by the business over the years, which emphasizes its tactical competences. According to Data observer (2010), Martin is a  £ 30billion revenue company verifying an growth of 14.9% when related to 2008. The primary policy that has been implemented by the business is the goods and services customization in contact with the market needs. The competency in functioning of the business over the last era can be abridged with the assistance of progress in subsequent vital indicators (Fame, 2010) Diversity: In the past, Martin approach to emerging markets has tended to be almost exclusively from their own perspective, seeing them simply as markets, with little real empathy for the new customers needs and desires. One of the big problems is that the vast majority of senior managers in corporations come from the home county but Martin Company and their leaders always ready to cope with such diversity at top executive level. Environmental factors: In environmentally as Martin proposed into further and further partnerships or joint ventures several of which are founded with companies from another cultures. So leaders who are capable to build and maintain such relationships provide their business a useful collaborative advantage. In my opinion, this association consider to business exemplifies a big challenge to Martin. By primary executives Martin verifying good personal relationships in which believe and reciprocal understanding can develop. Corporate culture Formative Vision Firm ways of preparing things Values system LEADERSHIP STYLES Different Situations Employees relationship Customer focused Production Financial Environment Diversity Environmental factors A good consideration of position teaches leaders to change their type, like a driver changes gear in a car. Martins achievement had come, even though many siren voices, from persevering with its original model, and Bradley, the companys chief operating of ¬Ã‚ cer, puts that down to the personal backing of Windsor, Martins low-key chief executive. One solidly based on experience, trust, and judgment. Conclusion Vigorous changing situations require distinct leader performances. These performances may take the kind of patterns of behaviours termed leadership style, or leadership strategies. Selecting leaders with different leadership styles is incompetent. It is far more useful to select flexible leaders who have the ability of using different strategies under unusual or various conditions. While the leaders may occasionally learn to change their styles to match the circumstances, leadership styles are likely to remain relatively stable overall. Therefore, a certain style affects the leaders/managers managerial decisions over extended periods, with a particular style being more efficient under a specific set of circumstance. Task 2 2 2.1 Review the impact that selected theories of management and leadership have on organizational strategy . 2.2 Create a leadership strategy that supports organizational direction . Example . 2.1 Impact of Theories on organizational strategy: When we think about management and leadership, the image comes in our mind that these are powerful vibrant individual who commands people. Yesterday principles and theories are contemporary and sophisticated. Some overlap and gaps occurs. Current theories fill these gaps and after to study that people are dealing to current situation. There are many theories of management and leadership, these are defined as: Behavioural theory, Contingency theory, Functional theory, Great man theory, Situational theory, Trait theory, Transactional theory, Transformational theory. Major models and approaches are: Adaptive leadership and appreciative leadership Many leaders and managers have his or her own quality. Some common quality are: Autocratic, Bureaucratic, Democratic, and Laissez-faire. There is a difference between theories and leadership models that leadership theory is an explanation of some aspect of leadership, these are used to better understand and control successful leadership and leadership model is an example for use in a given situation. Each one has strengths and weaknesses, and each one has its appropriate uses. Here I am selected two present management and leadership concepts which are Transactional leadership and Transformational Leadership. Transactional and transformational leadership has been of great interest to numerous examiners in the present era. Accepting transformational and transactional leadership manner assists in the success of the organization (Laohavichien et al., 2009). This might be the reason that various writers of the current past believed transactional and transformational leadership as building variables and examined their affiliation with other standard variables. Both transformational leadership and transactional leadership assist in calculating subordinates fulfilment with their leaders (Bennett, 2009) Transformational Leadership: Transformational leadership theory has captured the interest of many researchers in the field of organizational leadership over the past three decades. This theory was developed by Burns (1978) and later enhanced by Bass (1985, 1998) and others (Avolio Bass, 1988; Bass Avolio, 1994; Bennis Nanus, 1985; Tichy Devanna, 1986). The major premise of the transformational leadership theory is the leaders ability to motivate the follower to accomplish more than what the follower planned to accomplish (Krishnan, 2005). Transformational leadership has four components: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration (Bass, 1985). Research has also shown that transformational leadership impacts employee commitment to organizational change (Yu, Leithwood, Jantzi, 2002) and organizational conditions (Lam, Wei, Pan, Chan, 2002). Due to its impact on organizational outcomes, transformational leadership is needed in all organizations (Tu cker Russell, 2004). Transformational leadership identifying and developing core values and unifying purpose, developing leadership and effective followership, utilizing interaction-focused organizational design, and building interconnectedness (Hickman, 1997, p. 2). Transformational leaders work to carry out around human and financial transformation. Within the organization they generate visions, missions, goals, and a culture that contributes to the ability of individuals, groups, and the organization to practice its values and serve its purpose (Hickman, 1997, p. 9). These leaders are reliable leaders who generate commitment from followers which results in a sense of shared purpose (Waddock Post, 1991). The leaders ability to inspire, motivate, and foster commitment to a shared purpose is crucial (Bass, Waldman et al., 1987). According to Bass and Avolio, transformational leaders display behaviours associated with five transformational styles wich are attached in table 4. Organizational culture: According to Schein (1985, 1995), the leaders beliefs, values, and assumptions shape the culture of the organization and these beliefs, values, and assumptions are then taught to other members of the organization. Schein also stated that leaders have the power to embed organizational culture through various methods such as mentoring, role modeling, and teaching. Bass and Avolio (1993). Organizational Vision Transformational leadership has four components: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration (Bass, 1985) which involves motivating people, establishing a foundation for leadership authority and integrity, and inspiring a shared vision of the future (Tracey Hinkin, 1998). Idealized influence and inspirational motivation are connected with the leaders ability to formulate and articulate a shared vision (Dionne, Yammarino, Atwater, Spangler, 2004). Transformational leadership produces a appeal for people to act as a group, in pleasant and non-pressurising culture, yet forever with a hope of excellence. It makes a How To handle trouble solving and advancement of new ideas, it lets for initial cautions of imminent threats and weaknesses in the organization and strongly encourages celebration of potencies and insistent pursuit of properly eligible opportunities. Transformational Leadership is established from the top level in the establishment, and encouraged all the means through the management levels. It is magnetic, passionate and encouraging and appeals the outstanding candidates for available positions. Everybody in the establishment certainly realizes the culture, objectives and anticipations of the organization. Transactional Leadership: Transactional leadership is galloped on leader supporter contacts. Supporters implement according to the will and trend of the leaders and leaders certainly encourage the efforts. The model is reward which can be adverse like penalizing act, if supporters flop to fulfil with or it can be optimistic like admire and credit, if subordinates obey with the intent and path established by a leader and complete the given goals. Four major aspects of transactional leadership as explained by Schermerhorn et al., (2000) are contingent rewards, dynamic management by exception, and passive management by ammunition. Example of Bill Gates and Steve Jobs Leadership Styles: Bill Gates is a businessperson, and chairperson of Microsoft, the software company he established with Paul Allen. Gates is one of the best-recognized entrepreneurs of personal computer revolution. Steve jobs business magnate and creator. He is famous for being the co-founder and chief executive officer of Apple. Both have Transformational leadership style but both transformation styles have several effects on business in same industry. Bill Gates and Steve Jobs Leadership style: Bill Gates direction is participative type because he includes his employees in decision taking. He is an adjustable person and he acknowledged his position was to be creative of the business. Whenever needed he carry out professional manager for handling and best form of the company? Gates is a robust and refreshing person his eagerness, diligent nature, decision making abilities reflect his character. His encouraging power and including his friends to working with him became the success of Microsoft. On the other hand, Steve Jobs leadership is imperial style, because he merges the power, he certainly not given a possibility to employees to involving decision taking. He believes that whatever he do is right. His relation with employees not good, he fails to motivate his personnel in many times. Sometimes he acts as anti-Gates, and sometimes request Microsoft to develop software for his computer. His cocky attitude and lack of management skills became a threat of APPLES success. Impact of Management and leadership theories on organizational strategy. With the accomplishment of windows, Office Function and Internet explorer Microsoft became a household name and Bill gates turned out as business genius. Bill Gates using the modifies very fast his ingenious notice always busy to emerging goods. Currently Microsoft develops a amount of goods as smartphone including installed Microsoft window. On the other hand APPLE goes wrong way in 1990s. Because Steve Jobs is very slow to implementing changes thats the main reason falling the market share. When Jobs realize changes is the only way to survive the market then apple develops innovative iMac which is internet friendly stylist computer. After sometime Apple expands market. With the iPhone, Apple TV, and name charges job co are setting a new course for the outfit once knows only for its computer. 2.2 Leadership strategy that supports organizational direction: Transformational leaders also help in the acceptance of organizational change (Bommer et al., 2004) Transactional leadership style provides high satisfaction and organizational identification. (Wu, 2009; Epitropaki and Martin, 2005). Transformational and transactional leadership strategy support organizational direction in term of efficiency, reliability, innovation and adaptation, turnaround leadership etc. Efficiency: In apple company Transformational leadership extra applicable at generating and distributing information at the unit and unit levels, while transactional leadership is extra applicable at utilizing knowledge at the organizational standard. Reliability: Computers are an significant asset and in todays budget, more than forever, its significant for customers to identify the dependability of the goods they are buying. Apple dependability report, Rescuecom disclosed that Apple counted the maximum t with 700 points, with Panasonic subsequent in on its path with a count of 489. In a downward manner, Lenovo, Toshiba, and HP were registered with counts calculating 393, 299, and 184 points, respectively. Strategic Direction: Steve Jobs as the Apple CEO has turned out quite capable at setting tactical direction beside a upcoming timeline. As the calculus of the current criticism on Microsofts new Windows 7 operating system reveals Steve Jobs is also very expert and capable at holding back to control the exact timing to strike in a market. Steve Jobs as Apples CEO recognizes reasonable burdens and price proposals. Steve Jobs takes it, basic and easy he recognizes that the important role of the CEO is to set tactical direction and long period targets. He appreciates the real reason executive participation generates project success. Market segmentation strategy: Under Steve leadership Apple made Market segmentation strategy that enabling a company to drive complete, unified product solutions that are harmonious with messaging, customer outreach, and channel strategies for selling and supporting customers. In this regard, Apples product strategy is a study in market segmentation. Versus merely trying to stuff a product, burrito-style, with as many different featu

Adolf Eichmann :: essays research papers fc

ADOLF EICHMANN The Holocaust was one of the greatest tragedies the world has ever known. There were many key people who participated in this outrageous genocide however some get more attention then others. Adolf Eichmann is a classic example. Eichmann was a self-proclaimed â€Å"Jewish Specialist† and head of the Gestapo Department. Eichmann was responsible for keeping every train rolling right into the stations of the concentration and death camps during the holocaust. Now we will take a look into Eichmann’s childhood, life experiences, and his later actions to see what shaped into a man of hatred towards the Jewish race. Eichmann was born on March 19, 1906 near Cologne, Germany, into a middle class Protestant family. His family moved to Austria following the death of young Adolf''s mother. He spent his youth in Linz, Austria, which had also been Hitler's hometown. As a boy, Eichmann was teased about his looks and dark complexion and was nicknamed "the little Jew" by classmates. After failing to complete his engineering studies, Eichmann had various jobs including working as a laborer in his father's small mining company, working in sales for an electrical construction company and also worked as a traveling salesman for an American oil company. In 1932 at age 26 he joined the growing Austrian Nazi Party at the suggestion of his friend Ernst Kaltenbrunner. Eichmann then became a member of the SS and in 1934 served as an SS corporal at Dachau concentration camp. In September 1934 Eichmann found relief from the monotony of that assignment by getting a job in Heydrich's SD, the powerful SS security service. Eichmann started out as a filing clerk cataloging information about Freemasons. He was then assigned to the Jewish section, which was busy collecting information on all prominent Jews. This marked the beginning of Eichmann's interest in the Jews. He studied all aspects of Jewish culture, attended Jewish meetings and often visited Jewish sections of cities while taking volumes of notes. He became familiar with the issue of Zionism, studied Hebrew and could even speak a bit of Yiddish. He gradually became the acknowledged 'Jewish specialist,' realizing this could have positive implications for his career in the SS. He soon attracted the attention of Heydrich and SS Reichsfà ¼hrer Heinrich Himmler who appointed Eichmann to head a newly created SD Scientific Museum of Jewish Affairs. Eichmann was then assigned to investigate possible "solutions to the Jewish question.

Fan Milk Limited Annual Report 2009

FAN MILK LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2009 FAN MILK LIMITED Year ended December 31, 2009 Contents Corporate information Pages 1 Report of the directors 2-3 Corporate governance 4-5 Report of the independent auditor 6-7 Financial statements: i. Statement of comprehensive income 8 ii. Statement of financial position 9 iii. Statement of changes in equity 10 iv. Statement of cash flows 11 v. Notes 12 – 30 0 FAN MILK LIMITED Year ended December 31, 2009 CORPORATE INFORMATION Directors Charles Mensa (Dr. ) Jesper Bjorn Jeppesen Kodjo Biamawu Aziagbe Einar Mark Christensen Jens Jorgen Kollerup George H.Okai Thompson Peace Ayisi-Okyere Lennap & Co. P. O. Box 37 Accra PricewaterhouseCoopers Chartered Accountants No. 12 Airport City Una Home, 3rd Floor PMB CT 42 Cantonments Accra No. 1 Dadeban Road North Industrial Area P. O. Box 6460 Accra-North Quist, Brown, Wontumi & Associates P. O. Box 7566 Accra National Trust Holding Company Limited Martco House P. O. Box 9563 Airport, Accra Barclays Bank of Ghana Limited Ecobank Ghana Limited SG-SSB Bank Limited Prudential Bank Limited Agricultural Development Bank Limited Ghana Commercial Bank Limited Standard Chartered Bank Ghana Limited (Chairman) (Managing Director)Secretary Auditor Registered Office Solicitor Registrar & Transfer Office Bankers 1 FAN MILK LIMITED Year ended December 31, 2009 REPORT OF THE DIRECTORS The directors submit their report together with the audited financial statements of Fan Milk Limited for the year ended December 31, 2009. Statement of directors’ responsibilities The directors are responsible for the preparation of financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss and cash flows for that period.In preparing these financial statements, the directors have selected suitable accounting policies and then applied them consistently, made judgements and estimates that are reasonable and prudent and followed International Financial Reporting Standards (IFRS). The directors are responsible for ensuring that the company keeps proper accounting records that disclose with reasonable accuracy at any time the financial position of the company. The directors are also responsible for safeguarding the assets of the company and taking reasonable steps for the prevention and detection of fraud and other irregularities.Principal activity The principal activity of the company is the manufacturing and distribution of dairy products and fruit drinks. Financial results The financial results of the company are set out below: 2009 GH? ‘000 Profit before tax for the year is from which is deducted tax of giving a profit after tax for the year of to which is added balance brought forward on retained earnings of from which is deducted approved dividend of giving a balance carried forward on retained earnings of 20,175 (5,019) 15,156 15,410 (1,484) 29,082 The comp any’s net worth increased from GH? 1. 4 million as at January 1, 2009 to GH? 35. 1 million at December 31, 2009. 2 FAN MILK LIMITED Year ended December 31, 2009 REPORT OF THE DIRECTORS (continued) Dividends The directors recommend a dividend of GH? 0. 10 per share (2008: GH? 0. 0750 per share) in respect of the year ended December 31, 2009. Auditor The auditor, PricewaterhouseCoopers, has expressed willingness to continue in office in accordance with Section 134 (5) of the Companies Code, 1963 (Act 179). BY ORDER OF THE BOARD: Name of Director:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Name of Director:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..Signature:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Date:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Signature:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Date:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 FAN MILK LIMITED Year ended December 31, 2009 CORPORATE GOVERNANCE Introduction Fan Milk Limited is committed to the principles and implementation of good corporate governance. The Company recognises the valuable contribution that it makes to long-term business prosperity and to ensuring accountability to its shareholders. The Company is managed in a way that maximises long term shareholder value and takes into account the interests of all of its stakeholders.Fan Milk Limited believes that full disclosure and transparency in its operations are in the interests of good governance. As indicated in the statement of responsibilities of directors and notes to the accounts, the business adopts standard accounting practices and ensures sound internal control to facilitate the reliability of the financial statements. The Board of Directors The Board is resp onsible for setting the Company's strategic direction, for leading and controlling the Company and for monitoring activities of executive management. The Board presents a balanced and understandable assessment of the Company's progress and prospects.The Board consists of the Chairman, five non-executive directors and an executive director (the managing director). The non-executive directors are independent of management and free from any constraints, which could materially interfere with the exercise of their independent judgement. They have experience and knowledge of the industry, markets, financial and/or other business information to make a valuable contribution to the Company's progress. The managing director is a separate individual from the Chairman and he implements the management strategies and policies adopted by the Board.They meet at least four times a year. The Audit Committee The Audit Committee is made up of four directors of whom three are non-executive directors and they meet twice a year. The main Board determines its terms of reference and they report back to the Board. Its duties include keeping under review the scope and results of the external audit, as well as the independence and objectivity of the auditor. The Audit Committee also keeps under review internal financial controls, compliance with laws and regulations and the safeguarding of assets.It also reviews the adequacy of the plan of the internal audit and reviews its audit reports. 4 FAN MILK LIMITED Year ended December 31, 2009 CORPORATE GOVERNANCE (continued) Systems of Internal Control Fan Milk Limited has well-established internal control systems for identifying, managing and monitoring risks. These are designed to provide reasonable assurance that the risks facing the business are being controlled. The corporate internal audit function of the Company plays a key role in providing an objective view and continuing assessment of the effectiveness of the internal control systems in the business.The systems of internal control are implemented and monitored by appropriately trained personnel and their duties and reporting lines are clearly defined. Code of Business Ethics Management has communicated the principles in the Company’s Code of Conduct to its employees in the discharge of their duties. This code sets the professionalism and integrity required for business operations which covers compliance with the law, conflicts of interest, environmental issues, reliability of financial reporting, bribery and strict adherence to the principles so as to eliminate the potential for illegal practices. REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF FAN MILK LIMITED REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of Fan Milk Limited set out on pages 8 to 30. These financial statements comprise the statement of financial position at December 31, 2009, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.Directors’ responsibility for the financial statements The directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and with the requirements of the Companies Code, 1963 (Act 179). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.Auditor’s responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. T hose standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates ma de by the directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Opinion In our opinion the accompanying financial statements give a true and fair view of the state of the company’s financial affairs at December 31, 2009 and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies Code, 1963 (Act 179). 6 REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF FAN MILK LIMITED (continued) REPORT ON OTHER LEGAL REQUIREMENTS The Companies Code, 1963 (Act 179) requires that in carrying out our audit we consider and report to you on the following matters.We confirm that: i) ii) iii) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; in our opinion proper books of account have been kept by the company, so far as appears from our examination of those books; and the company’s statement of financial position and statement of comprehensive income are in agreement with the books of account. Chartered Accountants †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2010 Accra, Ghana Mark Appleby (101193) FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 STATEMENT OF COMPREHENSIVE INCOME (All amounts are expressed in thousands of Ghana cedis) Year ended December 31 Note Revenue Cost of sales Gross profit Distribution costs Administrative expenses Operating profit Other income Finance costs Profit before tax Tax Net profit after tax Other comprehensive income Total comprehensive income Earnings per share Basic and diluted (GH? ) 11 0. 77 0. 6 9 7 8 5 6 3 4 2009 82,471 (38,460) 44,011 (18,628) (6,184) 19,199 1,177 (201) 20,175 (5,019) 15,156 15,156 2008 55,041 (28,599) 26,442 (12, 569) (4,873) 9,000 500 (113) 9,387 (2,333) 7,054 7,054 8 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 STATEMENT OF FINANCIAL POSITION (All amounts are expressed in thousands of Ghana cedis) Assets Non-current assets Property, plant and equipment Prepaid operating lease land Note 12 13 At December 31 2008 2009 21,622 1,647 23,269 Current assets Inventories Trade and other receivables Bank and cash balances 13,383 1,701 15,084 4 15 22 9,656 2,318 15,871 27,845 6,811 2,129 8,834 17,774 32,858 Total assets Equity Capital and reserves attributable to Company’s equity holders Stated capital Retained earnings 51,114 20 6,000 29,082 35,082 6,000 15,410 21,410 Liabilities Non-current liabilities Finance lease obligation Deferred tax Current liabilities Trade and other payables Current tax Dividend payable 19 14 18 1,330 1,330 808 808 9,719 699 222 10,640 11,448 32,858 16 17 10 14,272 137 293 14,702 Total liabilities Total shareholders’ equity and l iabilities 6,032 51,114 The financial statements on pages 8 to 30 were approved by the Board of Directors on †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦2010 and signed on its behalf by: Director: Director: 9 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 STATEMENT OF CHANGES IN EQUITY (All amounts are expressed in thousands of Ghana cedis) Stated capital Year ended December 31, 2009 At the beginning of the year Total comprehensive income Dividend At the end of the year 6,000 6,000 15,410 15,156 (1,484) 29,082 21,410 15,156 (1,484) 35,082 Retained earningsTotal Year ended December 31, 2008 At the beginning of the year Total comprehensive income Dividend At the end of the year 6,000 6,000 9,494 7,054 (1,138) 15,410 15,494 7,054 (1,138) 21,410 10 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 STATEMENT OF CASH FLOWS (All amounts are expressed in thousands of Ghana cedis) Year ended December 31 2008 2009 25,191 (17) 418 17 (5,059) 20,533 13,198 (113) 239 (1,310) 12,014Note Cash flows from operating activities Cash generated from operations Interest paid Interest received Tax paid Net cash generated from operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of land Proceeds from sale of property, plant and equipment Net cash used in investing activities Cash flows from financing activities Dividend paid Finance lease repaid Net cash used in financing activities Increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 22 10 12 13 12 21 12,181) (1) 296 (11,886) (6,429) (216) 112 (6,533) (1,413) (197) (1,610) 7,037 8,834 15,871 (1,048) (710) (1,758) 3,723 5,111 8,834 11 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 1. General informat ion Fan Milk Limited manufactures, distributes and sells dairy products and fruit drinks through a network of independent distributors and agents. The company is a public limited company incorporated and domiciled in Ghana under the Companies Code, 1963 (Act 179) and listed on the Ghana Stock Exchange.The registered office is located at No. 1 Dadeban Road, North Industrial Area, Accra-North. 2. Summary of significant accounting policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (a) Basis of accounting The financial statements have been prepared on the historical cost basis. They have been prepared in accordance with International Financial Reporting Standards (IFRS).The management of Fan Milk Limited considers the following to be the most important accounting policies for the company. In applying these accounting polic ies, management makes certain judgements and estimates that affect the reported amounts of assets and liabilities at the year end date and the reported revenues and expenses during the financial year. The financial statements have been prepared in accordance with the company’s accounting policies described below. The Company has adopted the following new and amended IFRSs as of January 1, 2009: ?IFRS 7 â€Å"Financial instruments – Disclosures† (amendment) – effective January 1, 2009. The amendment requires enhanced disclosure about fair value measurement and liquidity risk. In particular, the amendment requires disclosure of fair value measurements by level of a fair value measurement hierarchy. As the change in accounting policy only results in additional disclosure, there is no impact on earnings per share. ? IAS 1 (revised) â€Å"Presentation of financial statements† – effective January 1, 2009. The revised standard prohibits the present ation of items of income and xpenses (that is, `non-owner changes in equity`) in the statement of changes in equity, requiring `non-owner changes in equity` to be presented separately from owner changes in equity in a statement of comprehensive income. Comparative information has been re-presented so that it also is in conformity with the revised standard. As the change in accounting policy only impacts presentation aspects, there is no impact on earnings per share. 12 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 2.Summary of significant accounting policies (continued) (b) Property, plant and equipment Property, plant and equipment held for use in the production or supply of goods, or for administrative purposes are stated in the statement of financial position at historical cost or deemed cost less depreciation. Historical cost includes the expend iture that is directly attributable to the acquisition of the items. Deemed cost includes surpluses arising on the revaluation of certain properties to their fair values prior to the date of transition to IFRS.Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Assets in the course of construction are carried at cost less any recognised impairment loss. Cost includes professional fees which are capitalised in accordance with the Company’s accounting policy.Depreciation of these assets commences when the assets are ready for their intended use. Land is not depreciated. Depreciation is calculated using the stra ight line method to write off the cost of each asset or revalued amounts over their estimated useful lives as follows: Buildings Plant and machinery Deep freezers and bicycles Distribution trucks Other motor vehicles Computer systems Furniture and fittings 10 – 20 years 10 years 5 years 8 years 5 years 3 years 5 years The assets’ residual values and useful lives are reviewed and adjusted if appropriate at each statement of financial position date.Any asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within other gains/(losses) in the statement of comprehensive income. When revalued assets are sold, the amounts included in other reserves are transferred to retained earnings. 13 FAN MILK LIMITED Financial Statements for the year ended De cember 31, 2009NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 2. Summary of significant accounting policies (continued) (c) Impairments of assets At each statement of financial position date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit (CGU) to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value-in-use, the estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects the cu rrent market assessment of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.If the recoverable amount of an asset (or CGU) is estimated to be less than the carrying amount, the carrying amount of the asset (CGU) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately. (d) Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads, based on normal operating capacity.It excludes borrowing costs. Net realisable value is the estimated selling price in the ordinary course of business, less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Spare parts are written off in the year of purchase. (e) Inve stments and other financial assets Financial assets are classified as either financial assets at fair value through profit or loss, loans and receivables, held to maturity investments, or available for sale financial assets, as appropriate.When financial assets are recognised initially, they are measured at fair value, (plus in the case of investments not at fair value through profit or loss, directly attributable costs). The Company determines the classification of its financial assets upon initial recognition and, where allowed and appropriate, re-evaluates this designation at each financial year end. All regular purchases and sales of financial assets are recognised on the trade date – the date on which the company commits to purchase or sell the asset. 14FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 2. Summary of significant accounting po licies (continued) (e) Investments and other financial assets (continued) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method.Gains and losses are recognised in income when the loans and receivables are derecognised or impaired, as well as through the amortisation process. (f) Trade receivables Trade receivables are amounts due from customers for goods sold in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest ethod, less allowance for impairment. An allowance for impairment of receivables is estimat ed when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. (g) Cash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position. h) Trade payables Trade payables are initially recognised at fair value and subsequently measured at amortised cost. (i) Bank borrowings Interest bearing loans and overdrafts are recorded at the proceeds amount received net of direct issue costs. Finance charges payable on settlement or redemption and direct costs, are accounted for on an accrual basis in the statement of comprehensive income using the effective interest rate method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. 15FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 2. Summary of significant accounting policies (continued) (j) Current and deferred income tax Current tax Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rate and tax laws used to compute the amount are those enacted or substantively enacted by the statement of financial position date.Deferred tax Deferred income tax is provided using the liability method on temporary differences at the statement of financial position date between the tax base of assets and liabilities and their carrying amount for financial reporting purposes. Deferred tax liabilities are recognised for all taxable temporary differences, except where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax credits and unused tax losses can be utilised except where the deferred tax assets relating to the deductible temporary differences arise from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting nor taxable profit or loss. k) Leases Leases are classified as finance leases whenever the terms of the lease involve the substantial tra nsfer of all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Assets held under finance leases are recognised as assets of the Company at their fair value or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.Lease payments are apportioned between financing charges and a reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income, unless they are directly attributable to qualifying assets, in which case they are capitalised with the Company’s policy on borrowing costs. 16 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 2. Summary of significant accounting policies (continued) (k) Leases (continued) Property, plant and equipment acquired under finance leases are depreciated over the shorter of the useful life of such assets or the lease period. Payments made under operating leases are charged to the statement of comprehensive income on a straight line basis over the period of the lease. l) Employee benefits Pension obligation The Company operates a defined contribution pension plan (provident fund). A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. The Company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service. The contributions are recognised as employee benefit expense when they are due. m) Provisions Provisions are recognised when a present legal or constructive obligation exists as a r esult of past events, where it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably measured. (n) Revenue recognition Sale of goods Sales are recognised when the risks and rewards of the products have been substantially transferred to the customer. Sales are shown net of returns and value added tax. o) Foreign currencies Transactions are recorded on initial recognition in Ghana cedis, being the currency of the primary economic environment in which the company operates (the functional currency). Transactions in foreign currencies during the year are converted into Ghana cedis at prevailing rates of exchange ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into Ghana cedis at the rates of exchange ruling at the statement of financial position date.The resulting gains and losses are dealt with in the statement of comprehensive income. 17 FAN MILK LIM ITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 2. Summary of significant accounting policies (continued) (p) Dividend Dividend distributed to the company’s shareholders is recognised as a liability in the financial statements in the period in which the dividends are approved by the Company’s shareholders. q) Post statement of financial position events Events subsequent to the statement of financial position date are reflected only to the extent that they relate directly to the financial statements and the effect is material. (r) Contingent liabilities Contingent liabilities are potential liabilities that arise from past events, the existence of which will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events which are not wholly within the control of the company.Provisions for liabilities are recorded when a l oss is considered probable and can be reasonably estimated. The determination of whether or not a provision should be recorded for any potential liabilities is based on management’s judgement. (s) Estimates Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Because of the inherent uncertainties in this evaluation process, actual losses may be different from the originally estimated provision.In addition, significant estimates are involved in the determination of provision related to taxes and litigation risks. These estimates are subject to change as new information becomes available and changes subsequent to these estimates may significantly affect future operating results. Accounting for property, plant and equipment, and intangible assets involves the use of estimates for determining the fair value at the acquisition date. Furthermo re, the expected useful lives of these assets must be estimated.The determination of the fair values of assets and liabilities, as well as of the useful lives of the assets is based on management’s judgement. (t) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker is responsible for the allocation of resources and assessing the performance of the operation segments. 18 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 3. Revenue Gross sales Value added tax Included in revenue are export sales of GH? 182,773 (2008: GH? Nil). 4. Cost of sales Cost of sales includes: Depreciation of factory buildings and plant and machinery Staff costs – Wages and salaries – Social security – Provident fund 5. Distri bution costs Selling and distribution costs include: Depreciation of buildings, vehicles and machinery Staff costs – Wages and salaries – Social security – Provident fund 6.Administrative expenses Administrative expenses include: Depreciation of buildings, vehicles and machinery Staff costs – Wages and salaries – Social security – Provident fund Auditor’s remuneration Directors’ remuneration Donations 346 1,457 105 41 33 529 55 244 813 75 29 26 357 4 1,902 2,249 186 69 1,646 1,695 141 54 1,534 3,187 240 85 1,094 2,292 180 65 2009 94,842 (12,371) 82,471 2008 63,297 (8,256) 55,041 Total number of staff employed by the company in year was 407 (2008: 401). 7.Other income Profit on disposal of property, plant and equipment (Note 12) Interest on current accounts Sale of empty bags and scraps Provident fund refund Rent income Bad debts recovered Exchange gain 136 418 37 12 64 8 502 1,177 19 109 239 61 13 56 22 500 FAN MILK LIMITED Fin ancial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 8. Finance costs Interest payable on bank overdraft Interest payable on finance lease Interest payable on agents savings Finance costs on staff loans (Note 15) 2009 17 134 50 201 9.Income tax expense 2009 Current tax (Note 17) Deferred tax (Note 18) 4,497 522 5,019 2008 2,009 324 2,333 2008 4 109 113 The charge for the year can be reconciled to the profit per the statement of comprehensive income as follows: 2009 2008 Profit before tax Tax charged at 25% (2008: 25%) Expenses not deductible in determining taxable profit Other differences Capital allowances brought forward used in 2008 Export income at different tax rate 20,175 5,044 14 (31) (8) 5,019 10.Dividend payable Balance at January 1 Dividend declared and approved (GH? 0. 0750 per share; 2008: GH? 0. 0575 per share) Dividend paid Balance at December 31 222 1,484 (1,41 3) 293 132 1,138 (1,048) 222 9,387 2,347 1 4 (19) 2,333 Payment of dividend is subject to the deduction of withholding taxes at the appropriate rate. Proposed dividend for approval at AGM (not recognised as a liability as at December 31, 2009) amounted to GH? 1. 978 million (GH? 0. 10 per share). 20FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 11. Earnings per share Profit after tax Number of ordinary shares Basic and diluted earnings per share (GH? ) 2009 15,156 19,784,548 0. 77 2008 7,054 19,784,548 0. 36 There are no share options, potential rights issues or bonus issues, hence diluted earnings per share are the same as basic earnings per share. 12.Property, plant and equipment 2009 Buildings and roads Cost/deemed cost At January 1, 2009 Additions Transfers Disposals At December 31, 2009 Accumulated depreciation At January 1, 2009 Charge for the year Released on disposals At December 31, 2009 Net book value At December 31, 2009 2008 Buildings and roads Cost/deemed cost At January 1, 2008 Additions Transfers Disposals At December 31, 2008 Accumulated depreciation At January 1, 2008 Charge for the year Released on disposals At December 31, 2008 Net book value At December 31, 2008 2,829 125 3 (12) 2,945 1,069 154 (9) 1,214 1,731 Motor Plant and vehicles machinery 4,301 1,921 (431) 5,791 3,036 783 (431) 3,388 2,403 14,501 3,312 427 (174) 18,066 7,850 2,047 (174) 9,723 8,343 Capital WIP 265 1,071 (430) 906 906 Total 21,896 6,429 (617) 27,708 11,955 2,984 (614) 14,325 13,383 2,945 353 296 3,594 1,214 236 1,450 2,144 Motor Plant and vehicles machinery 5,791 4,602 72 (327) 10,138 3,388 1,159 (327) 4,220 5,918 18,066 5,740 78 (956) 22,928 9,723 2,387 (796) 11,314 11,614 Capital WIP 906 1,486 (446) 1,946 1,946 Total 27,708 12,181 (1,283) 38,606 14,325 3,782 (1,123) 16,984 21,622 Included in motor vehicles, plant and machinery are ass ets with a cost of GH? 2. 3 million (2008: GH? 2. 3 million) leased under a finance lease. 21 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 12.Property, plant and equipment (continued) 2009 Cost-capitalised finance lease Accumulated depreciation Net book value Profit on disposal of property, plant and equipment Cost of assets Accumulated depreciation Net book value Sale proceeds Profit on disposal 13. Prepaid operating lease-land Cost At January 1 Additions At December 31 Accumulated amortisation At January 1 Charge for the year At December 31 Net book value at December 31 14. Inventories Raw materials Finished goods Work in progress Goods in transit Other stocks 1,888 984 61 6,557 166 9,656 1,692 772 46 4,214 87 6,811 1,283 (1,123) 160 (296) (136) 617 (614) 3 (112) (109) 2,295 (2,295) 2008 2,295 (2,101) 194 1,910 1 1,911 ,694 216 1,910 209 55 264 1 ,647 154 55 209 1,701 During the year the cost of inventories charged to the statement of comprehensive income amounted to GH? 27. 7 million (2008: GH? 21. 1 million). 22 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 15. Trade and other receivables Trade receivables Other receivables Amounts due from staff Prepayments 2009 717 1,362 151 88 2,318 2008 419 1,551 127 32 2,129 The maximum amount of staff indebtedness during the year did not exceed GH? 0. 21 million (2008: GH? 0. 14 million).Amounts due from staff are recoverable as follows: Not later than 1 year Later than 1 year and no later than 5 years 2009 130 71 201 Future finance costs Present value of amounts due from staff The present value of the amounts due from staff is split as follows: Not later than 1 year Later than 1 year and no later than 5 years 105 46 151 108 19 127 (50) 151 2008 108 19 127 127 The fair value of amounts due from staff is based on cash flows discounted using a rate based on borrowing rate of 22. 53% (2008: Nil). The discount rate equals base rate minus appropriate credit rating from the company’s bankers. The directors consider that the carrying amount of trade and other receivables approximates to their fair value. 16.Trade and other payables Trade payables Other payables Finance lease obligation (Note 19) Accruals 2009 8,199 5,861 212 14,272 17. Current tax As at January 1 Charged to income Payments As at December 31 23 2008 6,375 2,934 197 213 9,719 699 4,497 (5,059) 137 2,009 (1,310) 699 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 18. Deferred tax Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 25% (2008: 25%). The charge for the year relates to accelerated tax allowances on property, plant and equipment. 008 2009 As at January 1 Charged to income As at December 31 19. Finance lease obligation The Company entered into a finance lease agreement in 2006 for the lease of certain motor vehicles, push carts, bicycles and freezers. The capital cost of these assets amounted to â‚ ¬753,070 and US$525,864. 91. The Company has an option to purchase the items after the primary lease period for a consideration of 0. 25% of the capital on the assets. The lease obligation is as follows: Minimum lease payments: Not later than 1 year Later than 1 year and no later than 5 years 2009 Future finance charges on finance lease Present value of finance lease liabilities 2008 212 212 (15) 197 808 522 1,330 484 324 808The present value of the finance lease liabilities is as follows: Not later than 1 year (Note 16) Later than 1 year and no later than 5 years 197 197 24 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 20. Stated capital No. of shares Proceeds 2009 2009 Authorised Ordinary shares of no par value Issued For cash Capitalisation of surplus 40,000,000 No. of shares 2008 40,000,000 Proceeds 2008 19,784,548 19,784,548 19 5,981 6,000 19,784,548 19,784,548 19 5,981 6,000 There is no unpaid liability on shares. There are no treasury shares. There are no calls or instalments unpaid. 21.Cash generated from operations Reconciliation of net profit before tax to cash generated from operations: 2009 Profit before tax Depreciation Amortisation Interest expense Interest income Increase in inventories Increase in trade and other receivables Increase in trade and other payables Profit on disposal of plant and equipment Cash generated from operations 20,175 3,782 55 201 (418) (2,845) (189) 4,566 (136) 25,191 2008 9,387 2,984 55 113 (239) (1,289) (536) 2,832 (109) 13,198 25 FAN MILK LIMITED Fina ncial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 22. Cash and cash equivalents Cash and cash equivalents comprise cash held and short term bank deposits with an original maturity of three months or less. The carrying amount of these assets approximates to their fair values.For the purpose of the statement of cash flows, the year end cash and cash equivalents comprise the following: 2008 2009 Bank and cash balances Bank overdrafts 15,871 15,871 8,834 8,834 At the statement of financial position date the Company had an approved unsecured overdraft facility with local banks not exceeding GH? 0. 5 million (2008: GH? 0. 5 million). 23. Related party disclosures The Company has a related party relationship with a major shareholder and with its directors. The major shareholder Fan Milk International A/S owns 55. 449% shares in Fan Milk Limited. Emidan A/S and Fan Milk Togo are su bsidiaries of Fan Milk International A/S and are therefore entities related through common control.In the normal course of business, the Company entered into the following transactions shown below: (i) Purchase of goods Emidan A/S Fan Milk Togo (ii) Sale of goods Fan Milk Togo Fan Milk Liberia (iii) Year end balances arising from purchase of goods Emidan A/S Fan Milk Togo 7,362 12 5,697 16 183 6 2009 23,602 28 2008 19,174 108 26 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 23. Related party disclosures (continued) (iv) Year end balances arising from sale of goods Fan Milk Liberia (v) Technical assistance fees Fan Milk International (vi) Year end balances arising from technical assistance fees Fan Milk International Transactions with key management personnel Key management personnel are considered to be the directors.Remuneration Executive director (short-term benefits) Non-executive directors (short-term benefits) Key management personnel have no post-employment benefits. 24. Contingent liabilities There were no contingent liabilities at the statement of financial position date (2008: GH? Nil). 25. Financial risk management Financial risk factors The Company’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise the potential adverse effects on its financial performance.Risk management is carried out by the management of the company under policies approved by the board of directors. Management identifies, evaluates and hedges financial risks. 407 180 302 129 351 267 1,237 825 2009 56 2008 – 27 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 25. Financial risk management (continued) Sensitivity analysis – currency risk The Company seeks to reduce its foreign currency exposure through a policy of matching, as far as possible, assets and liabilities denominated in foreign currencies.The Company imports raw materials, spare parts and equipment from overseas and therefore is exposed to foreign exchange risk arising from Euro and USD exposures. Management is responsible for minimising the effect of the currency exposure by buying foreign currencies when rates are relatively low and using them to settle bills when due. The Company hedges the currency risk using the practice stated above in order to mitigate currency risk as a result of changes in foreign exchange rates. The company’s hedging strategy is effective and movement in foreign exchange rates would have no material impact on the Company’s result. Sensitivity analysis â⠂¬â€œ interest rate risk The Company’s exposure to the risk of changes in market interest rates relates primarily o the Company’s long-term obligations with a floating interest rate. To manage this risk, the Company’s policy is to contract for best interest rate borrowings when terms offered are attractive. The sensitivity analysis for interest rate risk shows how changes in the fair value or future cash flows of a financial instrument will fluctuate because of changes in market rates at the reporting date. The Company had no significant exposure to interest rate risk as at December 31, 2009. Total exposure to credit risk Financial instruments that potentially subject the Company to credit risk are primarily cash and cash equivalents and accounts receivable. Account receivables are mainly derived from sales to customers.The Company maintains a provision for impairment of trade receivables based upon the expected collectibility of all trade receivables. Trade rec eivables consist of invoiced amounts from normal trading activities. The Company has customers throughout Ghana and Liberia. Strict credit control is exercised through monitoring of cash received from customers and, when necessary, provision is made for specific doubtful accounts. As at December 31, 2009, management was unaware of any significant unprovided credit risk. 28 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 25.Financial risk management (continued) The table below shows the maximum exposure to credit risk by class of financial instrument: 2009 Bank balances (excluding cash) Trade and other receivables (excluding prepayments) Total credit risk exposure Liquidity risk The Company has incurred indebtedness but also has significant cash balances. The Company evaluates its ability to meet its obligations on an ongoing basis. Based on these eval uations, the Company devises strategies to manage its liquidity risk. Prudent liquidity risk management implies that sufficient cash is maintained and that sufficient funding is available through an adequate amount of committed credit facilities.The Company has no limitation placed on its borrowing capability. The facilities expiring within one year are subject to renewal at various dates during the next year. The Company had the following unutilised banking facilities as at December 31, 2009: 2009 Expiring within one year 500 2008 500 15,073 2,230 17,303 2008 8,274 2,097 10,371 Cash of the Company is placed in interest bearing current accounts to provide sufficient funding to meet its debt financing plan. At the statement of financial position date cash held on the call account was GH? 5,946 (2008: GH? 3,788). This is expected to readily generate cash inflows for managing liquidity risk.Maturity analysis of financial liabilities The table below analyses the company’s financi al liabilities. All financial liabilities fall due for payment within six months. 2008 2009 Trade and other payables Finance lease liability 14, 272 14,272 9,522 197 9,719 29 FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 + NOTES (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless otherwise stated) 26. Capital commitments Capital expenditure contracted for at the statement of financial position date but not recognised in the financial statements is as follows: 2008 2009 Property, plant and equipment approved and contracted 27.Capital risk management The primary objectives of the company’s equity capital management are to ensure that the company is able to meet its debts as they fall due, to maximise shareholder value and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies and processes from the previous years. 28. Segment information Management has determined the operating segments based on the reports reviewed by the head of department group that are used to make strategic decisions. The group considers the business from product perspective. The reportable operating segments derive their revenue from the manufacture and distribution of dairy products and fruit drink. Management considers the products to have similar economic characteristics and they have therefore been aggregated into a single operating segment. 593 2,031 30

Compare and Contrast William Shakespeares Sonnet 18 to In an Artists Studio by Christina Rossetti Essays

Compare and Contrast William Shakespeares Sonnet 18 to In an Artists Studio by Christina Rossetti Essays Compare and Contrast William Shakespeares Sonnet 18 to In an Artists Studio by Christina Rossetti Paper Compare and Contrast William Shakespeares Sonnet 18 to In an Artists Studio by Christina Rossetti Paper Essay Topic: Christina Rossetti Poems Literature The pre twentieth century sonnets In an Artists studio (1856) by Christina Rossetti (1830 1894) and Sonnet 18 (1609) by William Shakespeare (1564 1616) are related because they explore the subjects of Beauty and Love, however it is important to acknowledge that although they are similar in content, they differ due to the way they present the object of their desires from contrasting perspectives. Furthermore, whilst the poems share the conventional fourteen line sonnet structure, Rossetti relies on the petrarchan whilst Shakespeares rhyme scheme is original. The Petrarchan sonnet portrays Christina Rossettis older brother, Dante Gabrielle, who was obsessed with the model Jane Morris whom he used for inspiration in his paintings during the Pre Raphalite period, which he himself founded. The aim of the Brotherhood was to produce earnest, quasi-religious works, motivated by medieval and early Renaissance painters up to the time of the Italian painter and Architect Raphael. This was because as a whole they eschewed the sombre colours and formal vision preferred by the Royal academy at the time. This is illustrated by Dante Gabrielles paintings of the nameless girl in freshest summer greens. By Contrast, Shakespeares sonnet is addressed to an anonymous person with whom he is infatuated. He begins by posing the rhetorical question of whether or not he should compare his subject to A summers day. He dismisses his question in the second line and argues thou art more lovely and more temperate. Although the diction used in the poem is ornate due to the tradition of courtly love of his time, his simple and direct analogy enables us to comprehend the nature oh his affection more easily. His use of iambic pentameter is also very efficient, there being ten syllables in each line and the use of a simple rhyming scheme with a couplet at the end helps to generate a calm and confident effect which contributes to Shakespeares general premise of the nature Love. Rossettis ode is written two hundred and forty seven years later and is therefore far simpler to grasp. She describes her brothers infatuation by using the word feeds which indicates that he needs the model to sustain himself as he feeds upon her face by night and day. Rossetti uses language associated with food to convey the impression that love is essential to the contribution of life itself. The nameless face is a portrait of perfection throughout all of Dantes canvasses. Whereas Shakespeare woos his beloved through flattery by stating that his love is better than the sun because, Sometimes too hot the eye of heaven shines, and often his gold complexion dimmd. The first part of the quotation indicates that the heat of the sun is sometimes scorching and therefore unbearable, the personification of the sun as somebody radiating out heat and causing discomfort enables him to describe his love as something more lovely and temperate than the imperfections of the English summer. Although the objects of affection in each sonnet are presented differently, it can be seen that both poets are portraying perfection. Rossetti expresses that Gabrielle has presented Jane Morris beyond reality and has perfected her so, proving her to be not as she is but as she fills his dream. Comparatively Shakespeare conveys that the being whom he is flattering is better than a summers day. Summers lease hath all too short a date Stating that summer does not last whereas the beauty of his subject of desire will, expressing that the lease of his exquisiteness is everlasting. There is a prominent use of natural worlds in both poems to glamorise Rossetti and Shakespeares subjects of desire equally. Shakespeare chooses a summers day to reiterate that his entity of desire is far beyond the beauty of a summers day Whereas Rossettis simile Fair as the moon and joyful as the light suggests that the women in the paintings is presented as angelic and saint like which is reflective of the pre raphelite period in which they purposely hunted to bring a religious undertone to their art, and because they aimed to produce quasi religious works. Again verifying the embroidered depiction of the cherished individuals. Both admirers Shakespeare and Rossetti offer immortality. Shakespeare quite ironically states that Nor shall death brag thou wanderest in his shade in line 12 of the sonnet, referring to the biblical reference, oh death, where is thy sting? Or grave thy victory (Psalms 23:3). This testimonial implies that death normally boasts of his conquests over life. Whereas Shakespeare implies that his magnificence will not be forgotten even if death captures her. When in eternal lines to time thou growest, suggesting that it is through these undying lines that his subjects elegance will be able to live by time. In his ending couplet, Shakespeare states that as long as men breathe and eyes can see his verses will live on commemorating and renewing the life he adores. Similarly Dante Gabrielles paintings of the selfsame figure will allow Jane Morris to be reminisced, obviously through the canvases. Although it can be debated that it is not the actual model of Jane Morris whom will be remembered, but instead the superficial self which Dante has created. A saint, an angel every canvas means Every depiction is created just as perfect as both a saint and an angel. I believe that this is a very important part to have identified because of Christina Rossettis tone whilst describing the nameless face. Rossetti highlights her animosity through the use of repetition in the first two verses. One face looks out from all his canvases One selfsame figure sits or walks or leans Her tone here is cynical as she repeats the word One suggesting that she is bitter and resilient to his portrayal of the model as well as his obsession. I personally enjoyed Sonnet 18 by William Shakespeare, because it is more effective in revealing the essence of Love and Beauty. Although both sonnets are about beauty and love they are still quite different to each other. In Sonnet 18 Shakespeare uses an analogy to evaluate his subject to a summers day. He presents her through adoration and displays her as she naturally is. However in In an Artists studio Dante sustains upon the selfsame figure that he possesses in his personal intellect. The model Jane Morris is placed on a pedestal to make her appear unblemished as well as angelic and unquestionably picturesque. Gabrielle does not portray her as she is but instead, as she fills his dreams. Both Sonnets characterize their treasured ones in unimaginable forms, they are exquisite to the outermost, simply by the use of unparalleled phraseology, manufacturing them neither as they arise but moreover as they saturate dreams.

Gall Stones

Gall Stones GALLSTONES: What Are Gallstones? Gallstones are solid little balls that form in the gall bladder. Gallstones are created when bile substances, cholesterol and bile pigments, mainly,form together and create small odd shaped balls.The stones which form mainly from cholesterol are called cholesterol stones and account for 80% of stones found in the gall bladder. The other 20% of stones found in the gall bladder are Pigment stones. They are small, dark in color and are made of bilirubin and calcium salts. Factors that contribute to the development of pigment stones include, cirrhosis, biliary tract infections and hereditary blood cell disorders.Gallstones can be as small as a grain of sand, to as large as a golf ball. Depending on the case, and speed of development, the gall bladder may produce many small stones, thousands, or few, very large stones. Gall stones can also form at any amount in between, but for the most part, the more stones the smaller each one is.English: X-ray of organs during a laprasopic chole...

Ethics and Global Warming Assignment Example | Topics and Well Written Essays - 2250 words

Ethics and Global Warming - Assignment Example This study will illustrate how the ethical analysis and evaluation can help to realize the nature of climate problem and restriction on potential solutions. In order to do so, the study will concentrate on how the climate change threatens the essential value. Moreover, this study will raise serious concerns of responsibility and fairness. Global Climate Change and Ethical Action Challenges Global climate change is most serious challenge towards ethical action. Climate change can be described as the appropriate moral storm as it brings several key challenges to the ethical action. Climate change is truly a global phenomenon. Emission of greenhouse gases is the major consequence of global warming. This greenhouse gas emission is affecting the planet. Increasing greenhouse gas emission can increase the average surface temperature of globe. It is true that all countries in the world are collaboratively trying to reduce the level of green house gas emission, but on individual basis, each country prefers to continue greenhouse gas emitting. Several unethical business practices and increasing green house gas emission is one of the major reasons behind the global climate change. Therefore, it is important for all the countries and states to minimize the harmfulness of the climate change in order to save future global generation. Emission of green house gases should be reduced significantly as soon as possible (Jamieson, 1992). Moreover, it is the responsibility of the developed countries to take serious initiatives so that other countries and states can follow the p athway.... Emission of this greenhouse gas is contributing to negative impacts on climate for centuries. It is unfair if these negative impacts are cumulative and severe. Moreover, temporal diffusion can create several collective ethical action problems. It is more challenging comparing to the common traditional tragedy. Underdeveloped theoretical tools in several relevant areas, such as intergenerational ethics, international justice, scientific uncertainty and strong relationship between nature and human being is another significant challenge to the ethical actions. For an example, global climate change can raise questions about the moral value of several nonhuman natures, such as obligations to protect unique place, nonhuman animals and rest of the nature. In addition, potentiality for catastrophic results and existence of scientific uncertainty put pressures internally on several standard and effective economic approaches to several environmental problems. Moreover, these will play an impor tant role in the arguments for the defensive approach in the environmental policy and law. Global climate change is raising several questions about how an individual should relate to the nature and nonhuman animals. Addressing Global Climate Change Environmental damage has become one of the most important global threats. Heating up atmosphere due to deadly methane and carbon dioxide gas emission is affecting modern day civilization. Majority of the individuals feel that acceptance of the global warming is a natural phenomenon. On the other hand, according to various environmental scientists, global climate change is the major consequence of global warming. Several unethical and irresponsible human activities are major key drivers of global

Business Strategic Essay Example | Topics and Well Written Essays - 2000 words

Business Strategic - Essay Example number of mergers and acquisitions over the years have seen AB InBev increase its production, market and distribution of about of its beer 200 brands that include the popular global brand Budweiser Beck’s. In addition to brands such as Stella Artois, Klinskoye, Bud Light, Leffe Hoegaarden, Skol, Jupiler, Brahma, Quilmes, Harbin, Sedrin, Michelob, Sibirskaya, Chernigivske and Korona (Reuters, 2014; Solitro, 2013). The company’s production and distribution is based on a division of its brands into global, multi-country and local beer in order to take advantage of different tastes of its customers based on geographical and regional presence. The beer brands produced by AB InBev has been further been categorized into premium brands, mainstream, and sub-premium brands to take care of the economic aspects of their customers (Reuters, 2014). This essay explores value chain analysis of AB InBev PLC that will provide a clear perspective on how the company achieves maximum process effectiveness. Therefore, this analysis will rely on key aspects of the value chain hypothesis introduced by Porter where the main activities under review will cover inbound logistics, operations, outbound logistics, marketing and sales, and service, which are all essential components in the operations of a company in the beverage industry (Porter, 2008). The importance of this value chain analysis is to find out how AB InBev PLC creates its competitive advantage and shareholder value that can only be attained through measures that ensure the cost of providing their products remains low. This is in order to generate a profit margin in addition to identifying and making assessment of competency in core areas of the company (Woodside, 2009). Inbound Logistics for any company covers all the necessary activities that take place to ensure uninterrupted supply of the necessary inputs and raw materials the company needs for a smooth production process (Dagoon, 2005). To have a have control over