Wal-Mart Financial Statement Analysis

The Paul Merage School of Business at UC Irvine| Financial Statement Analysis & Reporting: Earnings Quality and Asset Analysis | Company – WALMART| Kian BolooriHee Jun ChungDaejune Min| 1. Qualitative Analysis for the environment and the company (1) INDUSTRY ANALYSIS Walmart is in the discount retailer industry. This industry started in the 1950s, grew in the 1960s, and matured in the 1970s. With exception to a moderate growth period in the 1990s, the industry had remained stagnant since the 1970s. Today, three major players in the industry are Walmart, Target and Costco. The state of the discount retail industry is best understood through the Porter’s Five Forces analysis. * Competition: HIGH Competition among discount retailers resembles that of an oligopoly in that Costco, Target and Walmart hold a vast majority of the market share. In past decades, competition among the firms was minimized because they each targeted a different market segment. For example, Target focused on higher end neighborhoods while Walmart focused on rural locations. However, as the firms began to grow, they had to expand beyond their original targeted segments. As such, the firms started competing in the same locations, which intensified competition. This condition remains a dominant issue in the discount retail industry. * Barrier to New Entrants: MEDIUM-HIGH Unlike other industries, the discount retailer industry does not require a particular set of technical knowledge for new entrants. However, the major players in the market have established strong procurement and distribution networks that prevent new entrants from easily establishing their own. As such, new entrants would find it difficult to establish procurement and istribution networks while keeping costs competitive with those of Walmart, Costco and Target. * Bargaining Power of Buyers: LOW–MEDIUM Buyers have different levels of power depending on their location. In rural areas, buyers have less power. There is usually one discount retailer for each rural region. As such, that retailer has a virtual monopoly in that region, which allow it to increase prices, and thus increa se margins. On the other hand, buyers in suburban and urban markets can easily switch between discount retail competitors; as a result, each discount retailer must keep its prices competitive in those markets. Bargaining Power of Suppliers: LOW Suppliers to discount retailers hold little to no power. When the major discount retailers initiate relationships with new suppliers, they typically request contracts for the new suppliers’ whole inventory. As a result, the suppliers become entirely reliant on the discount retailer for their business. The discount retailer then leverages this reliance by demanding lower prices on the inventory. As a result, suppliers typically have to sell their inventory at low prices that result in small profit margins for them and lower inventory costs for discount retailers. Threat of Substitutes: LOW Current existing substitutes to discount retailers include supermarkets, traditional retailers, and boutique shops. However discount retailers are ab le to leverage their strong distribution networks to offer lower prices than many of the substitutes. As a result, discount retailers are able retain business despite the existence of substitutes. (2) ECONOMIC CONDITIONS The fact that there are fewer opportunities to expand in the United States has made it difficult for discount retailers to continue growing profits. In fact, discount retailers’ attempts to enter new markets have resulted in community resistance. In Watts, CA, community members successfully lobbied to prevent Walmart from opening a new store in the neighborhood. Despite these challenges, discount retailers have found new opportunities to increase profits. For one, discount retailers have started converting their stores into â€Å"supercenters. † These supercenters feature traditional discount retail products and grocery store products in one location. Also, discount retailers have begun expanding their international operations. For example, Walmart has partnered with companies in South Africa, China, and Brazil in order to expand into those markets. These opportunities have already proven profitable and continue to be a focus for the major discount retail firms. (3) WALMART STRATEGY Walmart’s business strategy is to keep costs low and pass the savings down to the customers. Walmart accomplishes this strategy through several means. First, Walmart cuts costs in its procurement channels. Walmart cuts out the manufacturers’ representatives and works with suppliers directly. In doing so, Walmart saves 3-4% on costs. Also, Walmart is able to use its IT networks to make sure the company orders the right about of inventory from suppliers so that the Walmart stores experience neither overstock nor stock-out. Second, Walmart keeps its labor costs low. Walmart maintains a frugal culture for all employees. For example, executives at the company are prohibited from accepting meals and gifts from third parties. Additionally, Walmart provides store workers with wages and benefits that are below those given by competitors. Third, Walmart invests in ways to cut distribution costs. For example, Walmart mastered the large-scale â€Å"cross-docking† to transfer merchandise directly from inbound trucks to store-bound trucks without storing the good in its distribution centers. Through these innovations, Walmart has been able to save 3-4% on its distribution costs. Through these means, Walmart has significantly lower its costs when compared to competitors. This point of difference helped Walmart grow to become the leading discount retailer in the world. . Quantitative Analysis for the company and the peers (1) CASHFLOW ANALYSIS From fiscal year 2007 to fiscal year 2010, Walmart recorded solid growth in both sales and net income; however, net increase in cash and cash equivalents does not have the same growth pattern. Net cash flow is the aggregate of cash flow from operations (â€Å"CFO†), cash flow from investing activities (â€Å"CFI†), and cash flow from financing activities (â€Å"C FF†). As is expected, CFO does trend positive in correlation with the increases to sales and income. On the other hand, CFI and CFF experienced sharp decreases. According to the common-size statement of cash flow, net CFI portion out of net CFO shows a generally decreasing trend during the period (-71%, -76%, -46%, -44%, respectively for 2007, 2008, 2009, 2010), on the other hand, the portion of net CFI increased constantly (-25%, -36%, -43%, -54%, respectively for 2007, 2008, 2009, 2010), which implies that War-Mart has become paying equal attention to investment for the future growth and shareholder value recently. Having solid CFO, Walmart had cash for investing and financing without borrowing a short-term debt As a result, while Walmart experienced 9% growth in sales and 13% increase in net income in 2008 compared to the previous year, net cash decreased almost 400%. Target shows a similar cash flow pattern to that of Walmart. Target has been reducing investment level and focusing more on shareholder return and the debt repayment. On the other hand, Costco has been managing the cash flexibly over the past four years in order to meet the firm’s needs for investment. Costco still concentrates on investing activities, which can be evidenced by the portion of net CFI (-72% of net CFO in 2010). According to 10-K of the year 2010, Costco opened 13 new warehouses in 2010, which was directly related to the huge negative CFI. For Walmart, the accounting adjustment accruals, which is measured as the gap between net income and CFO, is at 40%. The accounting adjustment accruals are one of indicators for earnings quality. While 40% is significant, it is smaller than that of Walmart’s competitors. Changes to current assets and current liabilities have a large impact on the accounting adjustment accruals. For instance, Walmart had accounts receivable increased by $297 mil in 2010, which negatively impacts on cash flow, but its inventory decreased by $2,213 mil in the same fiscal year, which had a positive influence on cash flow from operations. Despite these changes, CFO has still maintained a growth trend. Consequently, Walmart shows a steady upward trend of free cash flow, which is the difference between CFO and capital expenditures, during the past four years ($4. 6 bil, $5. 7 bil, $11. 6 bil, $14. 1 bil, respectively for 2007, 2008, 2009, 2010). The cash spent on CFI went to purchase of PPE in order to expand current operations. The firm used to invest approximately 80% of CFO in PP&E in 2007 and 2008, however decreased the investment to 45% level recently. A significant level of CFF went to shareholder return, including dividends and share buybacks (e. g. $11. 4mil or 77% of net income in 2010). As such, Walmart appears to provide value to its shareholders. Similarly, Target and Costco also invested highly in PP&E and return more than 70% of net profit to investors. To sum up, we can see a certain pattern in cash flows of the three firms as follows, which shows that Walmart, Costco and Target are matured and generating healthy cash flow. Walmart| Target| Costco| Accrual (NI/CFO)| 58% (Gap: 42%)| 54% (gap: 46%)| 53% (gap: 47%)| CFO| Positive,Constantly Growing| Positive,Growing Trend| Positive,Growing Trend| CFI| Negative (for PP&E)| Negative (for PP&E)| Negative (for PP&E and short-term investments)| CFF| Negative   (for shareholder returns)| Negativeexcept in 2007 ($7. 6mil long-term debt in 2007)| Negat ive (for shareholder returns)| One cause of concern from Walmart’s cash flow is a contradiction between Walmart’s growth strategy and CFF. The high levels of dividends that Walmart gives its shareholders may limit the amount of cash the company has for expansion. CFO has remained high enough to cover CFI, but this might not always be the case. As a result, Walmart may have to cut the amount of dividends it pays if it wants to continue growth during a period when CFO is decreasing. (2) EARNING QUALITY ANALYSIS Walmart’s earnings have been positive and growing each fiscal year from 2008-2010. The increase in earnings is primarily due to the fact that revenue had also increased in that timeframe. There has been a 7. 5% increase in revenue from 2008 to 2009 and a 0. 95% increase in revenue from 2009 to 2010. A large majority of Walmart’s revenues come from its core operations—the net sales of products that Walmart had procured from suppliers and sold at its retail locations. The Net Sales figure is computed as the sales less sales tax and estimated sales returns. Less than 1% of total revenue is based o n membership revenue. Membership revenue is from customers who purchase yearly Sam’s Club memberships. There are several important features regarding the relationship between Net Income and CFO. First, the Net Income and CFO both trend positive, growing at a comparable rate. Second, CFO is larger than Net Income each year. This is primarily due to the adjustment to depreciation and amortization. Third, the adjustment due to an increase in accounts receivable is fairly constant, and is not a significant portion of the total CFO. These features suggest that the Net Income is a good indicator of cash inflow from operations, which would be expected from a company that collects cash at point of sale. Walmart recognizes revenue at point of sale when customers purchase products at the retail locations. Walmart recognizes revenue from gift cards only when the gift card is redeemed. Walmart recognizes revenue from services when the company performs the service; however, revenue from services is a small portion of total net sales. For membership, Walmart recognizes the revenue over the period of the membership. For example, if a membership cost $120 upfront, then $10 revenue would be recognized each month of the 12-month membership. Until it’s recognized, the cash collected is accounts as a liability (Deferred Membership Revenue). Expenses are divided into various categories. Cost of sales is all costs related to the attainment and transport of inventory. Any money received from suppliers, such as reimbursements for markdowns, is reduced from the cost of sales figure. Furthermore, Walmart does not include its costs of distribution facilities in its cost of sales, which can make its gross profit seem disproportionally stronger than its competitors. However, these costs can be found within SGA. SGA, Advertising and Pre-Opening costs are all recognized the same period that they are spent. Walmart does not seem to participate in any earnings management. The small account receivable account suggests that sales can be seem in cash inflow, meaning there is little chance that Walmart fabricated sales figures. Furthermore, Walmart did not make any significant changes to its depreciation cycles and PPE purchase patterns, which suggests that Walmart did not try to inflate its earnings to disguise unfavorable operating performance. (3) RATIO ANALYSIS Financial ratios are a measurement of the company’s overall health. In general, the financial ratios of a company are compared with those of its major competitors (cross-sectional and trend analysis) and to the company’s prior periods (trend analysis). Profitability Ratio The ability to generate profit on capital invested is a key determinant of a company’s overall value. Profitability is the net results of a number of policies and decisions. Here, the key ratios, ROCE and ROA, were calculated to judge the profitability in general. Return-on-assets (ROA) has been increased to 9. 6% in 2010 from 8. 4% in 2007 (See exhibit 10-2). This high ratio indicates that Walmart generated high income with given level of its assets. Return-on-capital employed (ROCE) has also increased to 21. 3% in 2010, from 19. 1% in 2007 (See exhibit 10-1). Compared to the competitors, Walmart has the highest ROA and ROCE, which illustrates that Walmart is the most profitable company in its industry. * Activity Ratio Activity ratio measures how efficiently a company utilizes its assets. These ratios are analyzed as indicators of ongoing operational performances; on other words, how effectively a company uses its assets. Walmart’s inventory turnover in days was 40 days in 2010, which is a modest improvement from 45 days in 2007 (See exhibit 11-1). The lower holding days of the inventory indicates that Walmart has made progress over the period in terms of inventory management. Considering the Sales growth, which increased over the periods, Walmart has effectively managed its inventory, avoiding any shortage or inadequate inventory levels. Walmart continued to set their goods in fairly low price in order to have its inventory move faster. Even though inventory turnover ratio of Walmart is less than that of Costco, Walmart’s improvement in its inventory turnover is better than that of Costco or Target. Additionally, account payable turnover gradually increased from 9. 9 days to 10. 22 days (See exhibit 11-1). The longer period of holding the Account payable indicated it has made good use of available credit facilities. * Liquidity Ratio (Short-Term) A liquid asset is one that trades in an active market and can be quickly converted to cash. A firm's liquidity position determines whether a firm has enough resources to meet its current obligations. Walmart’s current ratio deteriorated from 0. 9 in 2007 to 0. 87 2010 but then is improving from 2010 to 2011 exceeding 0. 88 in 2009 level. Also quick ratio and cash ratio improved from 2009 to 2010 (see exhibit 12-1). Nevertheless, it can be a negative sign for the company to have a current ratio less than 2. 0 and a quick ratio less than 1. 0. In fact, Walmart’s current ratio and quick ratio are lower than that of Costco and Target. A lower ratio indicates less liquidity, implying a greater reliance on operating cash flow and outside financing to meet short-term obligation. However, a reason for the troubling liquidity ratios is that Walmart has been using its cash for fixed assets as part of its effort to expand. As such, Walmart can generate cash by slowing growth if it has an urgent need to pay off current obligations. Additionally, Walmart’s cash conversion cycle was greatly decreased to 4. 8 in 2010 from 8. 5 in 2007 (See exhibit 11-1). It is the shortest operating cycle of its industry. A shorter cash conversion cycle indicates greater liquidity. The short cash conversion cycle implies that Walmart only needs to finance its inventory and accounts receivable for a short period of time. Its cash cycle is optimized, meaning it is able to sell inventory quickly also have less time capital tied up in the business process thus better for the company’s bottom line. * Solvency Ratio (Long-Term) Solvency refers to a company’s ability to fulfill its long-term debt obligations. Solvency ratios provide information about the relative amount of debt in the capital structure and the adequacy of earnings and cash flow to cover interest expenses and other fixed charges as they come due. This is important for assessing the risk and return characteristics such as its financial leverage. Walmart’s total liabilities-to-assets ratio was 0. 57 in 2010, slightly decreasing from 0. 58 in 2009 and 2008. This means 57% of total asset are financed with debt . Long-term debt-to-equity ratio was 0. 0 in 2010, again slightly decreased from 0. 52 in 2009 (See exhibit 12-1). This means 50% is the Walmart’s capital represented by debt. Although the size of asset and debt far exceeds the size of its competitors, but the ratios did not show significant proportional difference between Walmart and its competitors. Interest coverage ratios, calculated by using EBIT divided by total i nterest expense, can be viewed as good if the number exceeds 2. 0. For Walmart, the interest coverage ratio was 11. 8 in 2010 that was improved from 10. 5 in 2007 (See exhibit 12-1). This increase indicates that Walmart has become stronger in solvency, offering greater assurance that Walmart can service its debt from operating earnings. As for evidence, Walmart’s CFO-to-total liability was calculated to be 54. 5% in 2010, increasing from 48. 4% in 2007 (See exhibit 12-1). This is relatively high compared to its peers such as Costco and Target. 3. Conclusion Based on the aforementioned analysis, including qualitative and quantitative, we would like to conclude that Walmart is a company that can be highly recommended for investors to buy. First, the industry is still attractive when it comes to high barrier to entry, low power of buyers and suppliers, and low threat of substitution. Also for the company level, Walmart has differentiated itself successfully by focusing on the lowest price. Second, Walmart’s cash flows show a typical pattern for a healthy and matured firm; that is, Walmart has a constantly growing positive CFO, a negative CFI for the investment in PPE, and a negative CFF for shareholder returns such as dividend and share repurchase. Also, the strong CFO generates a increasing trend of FCF (Free Cash Flow), which indicates that the company has a potential for flexible cash management whether for the growth investment or shareholder returns. Third, Walmart appears to have quality earning. Further, there are close ties between net income and CFO; in other words, both net income and CFO show positive trend and increase at a comparable rate. Also Walmart is engaged in neither manipulating earnings nor making substantial changes in accounting methods. Fourth, Walmart’s ratios look good. ROA and ROCE are strong when compared to those of Costco and Target. The liquidity ratios are relatively low, but can be addressed if Walmart chooses to retain cash instead of using it on growth. Finally, Walmart’s P/E ratio on May 19, 2011 is 11. 5, which is relatively low when compared to that of Walmart’s competitors (Target: 11. 9, Costco: 26. 3). As such, Walmart appears to be undervalued. Ultimately, the analysis on Walmart’s financial statements indicates that investors would be well advised to buy Walmart’s stocks.

Lbj’s Great Society

Lyndon Baines Johnson moved quickly to establish himself in the office of the Presidency. Despite his conservative voting record in the Senate, Johnson soon reacquainted himself with his liberal roots. LBJ sponsored the largest reform agenda since Roosevelt's New Deal. The aftershock of Kennedy's assassination provided a climate for Johnson to complete the unfinished work of JFK's New Frontier. He had eleven months before the election of 1964 to prove to American voters that he deserved a chance to be President in his own right. Two very important pieces of legislation were passed.First, the Civil Rights Bill that JFK promised to sign was passed into law. The Civil Rights Act banned discrimination based on race and gender in employment and ending segregation in all public facilities. Johnson also signed the omnibus Economic Opportunity Act of 1964. The law created the Office of Economic Opportunity aimed at attacking the roots of American poverty. A Job Corps was established to provi de valuable vocational training. Head Start, a preschool program designed to help disadvantaged students arrive at kindergarten ready to learn was put into place.The Volunteers in Service to America (VISTA) was set up as a domestic Peace Corps. Schools in impoverished American regions would now receive volunteer teaching attention. Federal funds were sent to struggling communities to attack unemployment and illiteracy. As he campaigned in 1964, Johnson declared a â€Å"war on poverty. † He challenged Americans to build a â€Å"Great Society† that eliminated the troubles of the poor. Johnson won a decisive victory over his archconservative Republican opponent Barry Goldwater of Arizona. American liberalism was at high tide under President Johnson. The Wilderness Protection Act saved 9. 1 million acres of forestland from industrial development. †¢The Elementary and Secondary Education Act provided major funding for American public schools. †¢The Voting Rights A ct banned literacy tests and other discriminatory methods of denying suffrage to African Americans. †¢Medicare was created to offset the costs of health care for the nation's elderly. †¢The National Endowment for the Arts and Humanities used public money to fund artists and galleries. †¢The Immigration Act ended discriminatory quotas based on ethnic origin. An Omnibus Housing Act provided funds to construct low-income housing. †¢Congress tightened pollution controls with stronger Air and Water Quality Acts. †¢Standards were raised for safety in consumer products. Johnson was an accomplished legislator and used his connections in Congress and forceful personality to pass his agenda. By 1966, Johnson was pleased with the progress he had made. But soon events in Southeast Asia began to overshadow his domestic achievements. Funds he had envisioned to fight his war on poverty were now diverted to the war in Vietnam.He found himself maligned by conservatives for h is domestic policies and by liberals for his hawkish stance on Vietnam. By 1968, his hopes of leaving a legacy of domestic reform were in serious jeopardy The turbulent 1960s reached a boiling point in 1968. When the year began, President Johnson hoped to win the war in Vietnam and then cruise to a second term to finish building his Great Society. But events began to spiral out of his control. In February, the Tet Offensive in Vietnam brought a shift in American public opinion toward the war and low approval ratings for the President.Sensing vulnerability, Eugene McCarthy challenged Johnson for his own party's nomination. When the Democratic primary votes were tallied in New Hampshire, McCarthy scored a remarkable 42 percent of the vote against an incumbent President. Johnson knew that in addition to fighting a bitter campaign against the Republicans he would have to fight to win support of the Democrats as well. His hopes darkened when Robert Kennedy entered the race in mid-March. On March 31, 1968, Johnson surprised the nation by announcing he would not seek a second term.His Vice-President Hubert Humphrey entered the election to carry out Johnson's programs. The Great Society program became Johnson's agenda for Congress in January 1965: aid to education, attack on disease, Medicare, urban renewal, beautification, conservation, development of depressed regions, a wide-scale fight against poverty, control and prevention of crime and delinquency, removal of obstacles to the right to vote. Congress, at times augmenting or amending, rapidly enacted Johnson's recommendations. Millions of elderly people found succor through the 1965 Medicare amendment to the Social Security Act.Under Johnson, the country made spectacular explorations of space in a program he had championed since its start. When three astronauts successfully orbited the moon in December 1968, Johnson congratulated them: â€Å"You've taken †¦ all of us, all over the world, into a new era. . . . † Nevertheless, two overriding crises had been gaining momentum since 1965. Despite the beginning of new antipoverty and anti-discrimination programs, unrest and rioting in black ghettos troubled the Nation. President Johnson steadily exerted his influence against segregation and on behalf of law and order, but there was no early solution.The other crisis arose from Viet Nam. Despite Johnson's efforts to end Communist aggression and achieve a settlement, fighting continued. Controversy over the war had become acute by the end of March 1968, when he limited the bombing of North Viet Nam in order to initiate negotiations. At the same time, he startled the world by withdrawing as a candidate for re-election so that he might devote his full efforts, unimpeded by politics, to the quest for peace. When he left office, peace talks were under way; he did not live to see them successful, but died suddenly of a heart attack at his Texas ranch on January 22, 1973.

Bentley starts Essay

Question 1: Bill visits a local car auction and is immediately attracted to a red car labeled ‘Ferrari 1979’ which he purchases from peter. Peter is not a car expert but he has borrowed a book from the library and identified the car as a 1979 model. Bill also sees a classic Bentley which is owned by James, a qualified car mechanic. James informs Bill that the Bentley is operating perfectly on the way to the auction. Bill wanders off to look at another car and in his absence, the engine of the Bentley starts emitting smelly black smoke. However, by the time Bill returns, the smoke has temporarily cleared and he pays James the full price for the car. Subsequently, Bill discovers that the Ferrari is a fake but he crashes it while showing off to his girlfriend. It is a total write of further. He discovers that the engine in the Bentley is faulty. His mechanic manages to undertake some minor repairs to keep the engine running temporarily but warns Bill that in the long run he will need a new engine. Advice Bill. Question 2: Gethin runs a hotel at a popular seaside resort. He decides to expand his hotel by adding an extension but his accountant warns him that it will only be economical if built in time for the summer season. His contract with Bob, a local builder, contains the following conditions: 1) The extension will be built by 1 April 30 to be payable for each day’s delay thereafter. 2) The extension must be built using local materials as specified in Gethin’s attached list of specifications. 3. The floor must be fitted by a specialist flooring contractor to be nominated by Gethin. On April 30, the extension is still attractive. He is extremely annoyed to find out that the floor had not been fitted by Unique Floor Ltd, the firm he nominated and there are now large cracks in its surface. He is distressed by the whole experience and in fit of anger, dismisses Bob and hires Jack to complete the work. Jack, seizing the opportunity charges Gethin with a double rate for the work. Bob and Jack are now demanding payment form Gethin . Advise Gethin Advice 1: As an initial move, Bill should approach James as soon as possible and inform him about the condition of the Bentley. As a merchandiser, it is James responsibility to address Bill’s query regarding the car and help him resolve the problem. In addition, James also has the obligation to provide a concrete description of the products that he is offering. He has to be honest in his service and he should not lie to customers for the sake of making more money or else he might suffer from consequences after. Even if the mechanic has done temporary repairs on the Bentley, the possibility of acquiring new engine and spending additional cost in the long run makes the situation harder for Bill. It is also not reasonable to say that James has no responsibilities on the car anymore since it is already bought because of the car has been damage even before it is bought. According to the law of consumer rights, the merchandiser has the obligation to sell products that are described correctly including the damages that the products may have. The consumer also has the right to return a product if the consumer discovered any failure right after the product’s purchase (ANL 2009). Applying to Bill’s case, James lied to Bill about the condition of the car prior to purchase so James has right to return the car and ask for reimbursement if ever the car’s engine is not changed. On the other hand, the case of the Ferrari is different. Bill should have informed Peter about the situation earlier so that the issue has been resolved. As a customer, Bill has the right to return the car but since the car has been damaged because of his fault, his right has been void (ANL 2009). It is true that Peter has lied and Bill can still pursue to take legal actions against him. However, the possibility of any reimbursement is low due to Bill’s mistake of damaging the car due to his irresponsible actions. Through a legal process, he can still acquire an amount of money from Peter as a reimbursement but it will not be the same amount that he paid due to the damages on the car that he also has to pay. Advice 2: Gethin can solve by having a negotiation with Jack about the rate of work. Even though Jack is selected to finish the work, it is his ethical responsibility to avoid taking too much advantage of the situation. As a professional, Jack has a duty to render service for the benefit of his and his client’s party. He should price the service based on its regular price and not based on other unreasonable reasons (Thomson Reuters 2009). Through a business negotiation, Gethin should explain the situation to Jack and convince him to agree with his proposed rate. Both of them should present their oown proposal of price and be able to defend it. Gethin should explain that since it is just a completion work, the rate should not be very high. He should also identify the conditions and present it clearly so that any misunderstanding can be avoided. However, if Jack still did not agree, then the best way that Gethin can do is to look for other company that can finish the work and agree with his terms. Since it will be just a completion work, other companies will surely accept the project given that Gethin offers a reasonable rate. Business will still be business and as an entrepreneur, Gethin should know his limitations in terms of offering rates so that he will not end up spending a huge amount of money for the project. On the other hand, Gethin can sue Bob for not complying with the contract. The fact that Bob agreed on the contract gave him an obligation to follow it and be subjected to rules. In any business, contracts are considered as legal documents and are subjected to agreement between two parties. Anyone who disobeys can be sued and will be subjected to penalties depending on the case (Thomson Reuters 2009). Bob, as a contractor, should know about the consequences of not complying with the contract. If Bob is proven to guilty, then he will be liable to pay a certain amount to Gethin to cover the damages that he made and he might also lose his work license. References: Thomson Reuters. 2009. Contract and the Law. Available at http://smallbusiness. findlaw. com/business-forms-contracts/business-forms-contracts-overview-law. html Associated Newspapers Limited (ANL). 2009. Consumer Rights. ThisIsMoney. co. uk. Available at http://www. thisismoney. co. uk/help-and-advice/advice-banks/article. html? in_advicepage_id=130&in_article_id=395991&in_page_id=90

''The Malaysian Culture'' Short Documentary Essay

''The Malaysian Culture'' Short Documentary - Essay Example Dining or eating out is a relatively cheap experience. Family and friends enjoy being together as Malaysian occasions are celebrated with food. Malaysians never settle with one meal, they always have supper, dessert, and post-lunch and tea time. All this is rewarding because there is plenty of food. I also saw the art of shearing which brings peace and harmony among people. The Malaysian observes religious values as not eating pork so as not to affront the Muslim faith. However, they are so used to using plastic bags and, as a result; they pollute their once beautiful environment. The ultimate price of pollution is expensive and affects the current generation and generations to come. What I did not like about the documentary is that it did not tell us briefly where the food is found if it is cultivated or processed in the industries. Again the documentary did not educate its people about the effects of excessive use of plastic back and give alternative bags for that matter. To my opinion, important elements to that I would apply are helping my nation have plenty of food in order to promote peace and also control excessive use of plastic

Is the constant vulnerability and pressure on the U.S. dollar a Dissertation

Is the constant vulnerability and pressure on the U.S. dollar a serious threat to American hegemony and unipolarity as a whole - Dissertation Example For example, in 1995 it was estimated that approximately fifty nine percent (59%) of the total global currency reserve was made up of US dollar (Global currency reserve 2013). In 1998, the US dollar constituted approximately sixty nine percent (69%) of the total global currency reserve, and in 1999 it constituted of approximately seventy one percent (71%) of the total global currency reserve. Global currency reserve (2013) further indicated that in the third quarter of 2012, the US dollar was estimated to constitute an approximate of 62 percent of the global currency reserve. The composition of the other competing currencies such as Euro, Japanese Yuan and Starling Pound are still insignificant when compared to that of the United States dollar (Global currency reserve 2013). For example, the second most commonly used international currency, the Euro, was estimated to constitute 24 percent of the total global currency reserve in the third quarter of 2012 (Global currency reserve 2013) . It has been argued by some economists such as Kirshnars (2012) that this constant fall of value and fluctuations of the United States of America dollar in global market has a serious threat to American hegemony and unipolarity as a whole. ... value of US dollar would deprive United States of America of enjoying the benefits of economic dominance such as ability to finance its trade related deficits. Other than Kirshnars, Clerk is another author who supported the opinion that United States of America will lose its economic and political hegemony as whole due to the current pressures and threats. Goldberg (2010) is another economist who suppported the above mentioned argument. Goldberg (2010) explained that the current pressure would affect international trade and economy of the United States of America as a whole. Even though the Kirshnars, Goldberg and Clerk tried to relate the strength of US dollar with the economic and political dominance of United States of America, the authors failed to explain how the United States rose to this dominance and factors that contributed towards this dominance. Also, the authors failed to explain why economic and political influences of some nations such as China are on the rapid rise reg ardless of the fact that their currencies remain insignificant in terms of global currency reserve. Due to the above mentioned weakness, my opinion as well as argument is contrary to those of Kirshnar, Clerk and Goldberg, and contrary to the argument that the constant vulnerability and pressure on the U.S. dollar may cause a serious threat to American hegemony and unipolarity as a whole. In this regard I am of the view that due to the strength and experience of the United States economy, it will not lose its hegemony as a whole but other contenders may arise such as China and emerging markets. This paper, therefore, aims at supporting the view that due to the strength and experience of the United States economy, it will not lose its hegemony as a whole but other contenders may arise such as

Literature Review Essay Example | Topics and Well Written Essays - 1500 words

Literature Review - Essay Example Every year, companies incur a lot of undue cost just because of the slackness of employees despite the thoughtfully constructed performance appraisal systems in place. This paper explores reasons why performance appraisal systems may not be the best way to judge an employee’s abilities by conducting a thorough analysis of the workers’ needs and the various factors that influence their competence in the workplace. A lot of studies have conventionally been done to identify the factors affecting workers’ performance. However, this review will be limited to the discussion about the validity of performance appraisal systems. A lot of factors influence a worker’s performance that include but are not limited to job satisfaction, job security, allowances offered at the job, time of work, duration of work, relationship with peers, organizational structure, organizational culture, social interaction, accommodation, association with family and distance from the famil y. These and many other factors like them have a great impact on the motivation of a worker. The performance of a worker is fundamentally governed by his/her competence. Therefore, in order to study the impact of appraisal on the performance of an individual, it is customary to study the factors that influence the individual’s competence. According to Stern and Kemp (2004), competency is the product of an individual’s skill, motivation and personality traits. Various theories have been proposed at different points in time to identify the factors that play a decisive role in motivating an individual in the workplace. One of such theories that is discussed most frequently is the Maslow’s Hierarchy of Needs theory. The Maslow’s Hierarchy of Needs theory, as the name implies, consists of a set of needs that are staged in order of priority. The following diagram depicts all stages that accommodate the hierarchical order of needs identified by Maslow: Maslowâ⠂¬â„¢s Hierarchy of Needs (Chapman, 2010). There are basically five stages of needs. The biological and physiological needs which include such things as air, water and food form the most basic needs. Life is not possible without the fulfillment of these needs. Next come the safety needs. All humans need safety and protection. Unless their safety is ensured, workers can not put in their best effort because of the resulting psychological upsets. In the present age, job security has become a big problem all over the world. Because of the economic recession, employees are being fired in large numbers and the companies are being down sized. This is a potential threat to the safety of workers, so performance appraisals can not be considered valid system for the assessment of the workers’ capabilities with such job insecurity. After getting secure, a worker wants his love and belongingness needs fulfilled. Quite often, people have to live away from their home because of work, and he nce, do not get a chance to meet the family quite often. Many employees try to fulfill their love and belongingness needs by interacting with the colleagues. However, not many are successful because all employees share common interests in the context of an organization, and hence, many develop grudges particularly as one of the employees gains more status and reward as

Can Kuwait save the GCC Assignment Example | Topics and Well Written Essays - 250 words

Can Kuwait save the GCC - Assignment Example The states that make up the GCC feel that Qatar is not honoring its part of the agreement in relation to regional security. In response to this, Bahrain, the UAF and Saudi Arabia have opted to withdraw their ambassadors from the country (2). The GCC member states are calling on Qatar to honor the November 2013 accord that calls for severing ties with the Muslim Brotherhood, greatly restrict the movement of Iranian operatives within the zone, and stop all privileges enjoyed by Sheikh Yusef al-Qaradawi, an Egyptian Scholar, to make public broadcasts (2). In this respect, the GCC member states are requesting Qatar to disallow Sheikh Yusef from making broadcasts, severe ties with the Muslim Brotherhood, and stop facilitating the movement of those considered to be Iranian operatives within the GCC zone. While the GCC countries feel that Qatar is interfering in the zone’s security matters that are enshrined in their accord and uniting agreements, Qatar feels that the move to withdraw ambassadors by other GCC states from Doha has no relation to do with the stability, security and interests of nationals of the GCC (3). Instead it was linked to a difference opinions regarding issues that are external to the GCC (3). By allowing Iranian operatives into the GCC zone, the U.S. and its affiliates will find cause to severe ties with GCC member states on the premise that they are supporting Iran’s aggressive activities and stance toward developing nuclear weapons.

Classical Argument Essay Example | Topics and Well Written Essays - 1250 words

Classical Argument - Essay Example According to Carey, the National Public Radio, states that college students borrow very huge loans to supplement their stay in college. However, the government is also working very hard to ensure that the rates of borrowing loans for college students are low and the government does not care whether the students have borrowed loans surpassing the one trillion dollars. The government is also intending to double these rates since rumor has it, in order to enable the stay of the students comfortable in college. Eventually, this means that not only will the cost of college fees increases at the WVU university increase but also the amount the students will have to pay back in payment for loans are doubling. This arguments and matters may actually discourage other students anticipating on joining college when especially they think about the increasing cost of Fees and increasing money to pay back as loans after college. Although it is a pleasure that the government gives enough loans to the students, it is an advantage to wise students since they can decide to invest. In this case, the loans will help them positively in a better way. On the other hand, it is a disadvantage for the students will incur many debts with the government and thus it may become a great burden to the students who just do not utilize these loans and thus unless they find jobs on time, it may become very hard to repay the loans. Consequently, several changes have occurred in college tuitions over the last several decades. Tuition at colleges in the current generations cannot have any comparison to the college tuitions in the olden days. Following Feldman’s, Myths and Realities about Rising College Tuition, discusses the changes statistically, historically, and in a way that is not biased. In the past days, college tuition fee used to be very affordable and most people could afford it comfortably as compared to the current days where the college tuition fee is very high for the peasants to afford. This increasing of the cost of the college tuition is due to many factors, which include, one, the rising economy. The increasing cost of life has greatly affected the college tuition fee; this is because of the high prices for food and other household equipments and the increasing needs of the people. This in turn causes the lot of straining to the parents or guardians providing and catering for the college students. On the other hand, in the olden days, very few students qualified to join colleges, and thus this became very convenient for the institutions to provide very affordable accommodation, food and quality tuition at an affordable tuition fee. In addition, the cost of living had not yet risen to greater levels thus parents were very comfortable to pay the tuition fee. On the other hand, the government provided little loans to the students since the government also understood that the cost of life was affordable in comparison to the current cost of life in the colle ges. Life has generally become very demanding and expensive and thus the college students require more money. In the current days also, many students got admissions into colleges hence causing lot congestion into the institutions. The institutions require setting up more structures to accommodate the rising population of the institution

Engineering accomplishments Essay Example | Topics and Well Written Essays - 1250 words

Engineering accomplishments - Essay Example When the seals are exposed to temperatures above 5000 0F, they are not able to withstand for an extended period. Therefore, there has a been the need to develop an engineering technology that would ensure that the temperatures emanating from the motor joints do not damage the O-rings. The development of the rocket motor joint with thermal barriers was a major 21st century breakthrough. It has ensured that the heat generated by the motor joints is contained. This paper places into perspective the development of the thermal barriers in the rocket motor joints and the benefits that the engineering technology has brought. High temperatures in rocket systems require a thermal barrier. An efficient thermal barrier is one that is composed of a carbon fiber, which forms the core while braided carbon fibers, forms part of the layers. The layers are usually found around the core. The protection of the components of the rocket that cannot bear high temperatures is very vital, for example the elastomeric O-rings seals both the primary and secondary ones requires to be protected against high temperatures(Patrick  et al 577). This made it possible to develop an innovation that will see efficiency in the rocket in order to make the work of space exploration easy and efficient. Additionally, the thermal barriers are required in any other machines, especially that require high efficiency and are used for extended periods. The development of the Rocket Motor Joint with thermal barrier was considered the NASA Government invention of the year in 2004 (National Aeronautics and Space Exploration 14). This is because of its capacity to withstand extremely high temperatures. The development was made in consideration of the current as well as future rocket motors, some of which have been under development. In addition, it is not limited to use in the motors since it can also be uses in other equipment such as industrial

IP1 Diversity in the Workforce Research Paper Example | Topics and Well Written Essays - 500 words

IP1 Diversity in the Workforce - Research Paper Example It fosters equality in the distribution of resources and opportunities (Page 2008). This document focuses on the importance of diversity in human resource section of Steel Mill Company. Steel Mill Company has maintained its front-line supervision staff for a long time because of the performance and experience from these top official employees which has helped in the maintenance production levels and profits. However, the company does not benefit from the approaches resulting from diversity thus the workforce demographics of the company have changed dramatically. The main objective of changing the management structure of the company by replacing the old human resource managers and front-line supervisors with a new lot of top official employees of the same ranks is to foster diversity in the company which may lead to profits and production as well as service delivery. Current population projections indicate a change in the future demographic profile of the United States. The population is expected to rise from 296 million to 438 million people in a span of 45years and 82% of this population increase will be as a result of immigrants settling in the United States if the current population trends continue. The population of immigrants is estimated to reach 117 million people with an approximate of 67million adults, 47million children and 3million will total the sum of the grad generation of the immigrant society. The current trends indicate that 12% of born children born in the United States are of foreign origin. The racial and ethnic radar indicates that 67% of the total population in the United States is made up of whites and 14% are of Hispanic origin. Black people sum up to 13% of the total population while 5% are Asians. The working population sums up to 63% while children below the age of 17years make up 25% of the total population. The elderly group made of people

Tree of knowledge Essay Example for Free

Tree of knowledge Essay In the Paradise Lost, Milton has created the character of Satan with unparalleled brilliance and heroic energy. Satan, the leader of the fallen angels, rises to the occasion with unusual strength and inspires his comrades with his undying conviction in his own ability and that of his followers. He refuses to accept his defeat with his strong conviction that â€Å"Better to reign in Hell, than serve in Heav’n† (Book -I. line 263). Satan not only convinces his audience but also charms them to plunge into action with his seductive brilliance of verbal persuasion. It is evident in his compelling speech to Beelzebub, his motivational appeal to his legions and in the final seductive speech of Eve. Milton presents Satan with a singularity of grandeur, of suffering and a ruined splendor. He depicts Satan as embodiment of the spirit of pride and ambition- ambition not as a virtue but as the fevered lust for power, which springs from self-exaltation. Satan’s resolve to accomplish the fall of man is because of his jealousy and his desire to assert his supremacy. It is his pride that stands at the back of all his actions. This pride and egotism vitiate all that is noble and good in him. In his compelling speech to Beelzebub he acknowledges their plight but stresses the fact they are strong now as they are still united. His rises himself as a tower of strength and states that they are in a better position to having known the strength of God. Previously it was unknown as it was untried. He declares â€Å"All is not lost; the unconquerable Will, And study of revenge, immortal hate, And courage never to submit or yield: (Book I lines 106-109) Thus, he instills confidence in Beelzebub inspiring him not to yield or surrender. He claims that God’s rule was in danger with imminent revolt from them at any time. He outlines his course of action to fight against God. He expresses his desire to defy God’s authority once again as he is against to ‘bow or sue for grace with suppliant knee’. Obviously, Satan speaks boastfully and words his wishful thinking. Beelzebub understands Satan’s trial of God’s strength, but worries about the loss of Heaven and grieves for the punishment they were given. Satan aptly replies using all his skill and reminding Beelzebub that their task is never to do any good, but always to spoil or pervert what God does. He urges him to leave the lake and join him for reassembling their followers. It is noteworthy that Satan projects himself as infallible though he is actually fallen. He maintains that he neither changes nor fails. On the contrary his is a story of degradation and ultimate failure. As the poem progresses Satan becomes less compelling degrading himself from a heroic warrior to a snake ultimately. Satan’s extraordinary powers of persuasion and oration are best expressed in his most appealing and inspiring speech to the fallen angels. He begins his speech first by soothing them with words of hope. The very beginning of the speech raises the spirit of his followers with his address â€Å"O Myriads of immortal Spirits, O Powers Matchless (Book I, lines 622-23). He empathizes with their suffering by acknowledging their dire situation. He acknowledges that the better part remains with them and stresses that the power of mind. He tells him from his past experience and knowledge that a fitting answer to the God would be taking revenge by working in close design by fraud or guile. He tells them about the creation of new world and the new creatures. Then they build Pandemonium to assert themselves of their power. Being a valiant leader he draws his fallen angels together and instills confidence in them saying stirs them to action with his most inspiring words. Satan is presented with extraordinary powers of oration and persuasion. His words have become the most inspiring quotations in literature. For example the quotations â€Å"the mind is its own place, and in itself / can make a Heaven of Hell, a Hell of Heaven† (Book I lines 254-55). and â€Å"Better to reign in Hell, than serve in Heaven. † (Book I lines 263) are electrifying and haunt the minds of his audience. Milton honestly builds the character of Satan to great heights only to show that all evil is powerful and seems attractive. It is this power and attraction that cause the down fall of all including Satan and his followers. It should be noted that beneath the attraction lies the inherent wickedness and false ambition. Satan’s seductive speech to Eve brings out all the skill and powers of persuasion in him. It involves trickery, flattery and appeal to the commonsense and emotions. The story of the Paradise Lost reaches climax in the Book IX as Satan successfully seduces Eve and takes revenge on God by degrading himself into the form of a serpent finally. Satan, who wished but never hoped to find Eve alone, finds her alone in the rose bower. He feels happy at it as it helps him to convince her easily when she is alone without Adam by her side. He feels he can use all his powers of persuasion without much defense from Eve. He is so overcome by her beauty, that for a moment, he forgets his evil intentions, and is ‘stupidly good. ’ She is gently supporting the stalks of flower plants and she herself is like the ‘fairest unsupported flower, away from her support. The spot where she is working surpasses all those famous gardens in mythology, history and the Bible. But the hot hell always burns in him and that reminds him of his present mission. He recollects his thoughts of mischief and takes advantage of the loneliness of eve as he wants of some marvelously beautiful tricks to engage her attention (Book IX, lines 494-531). He looks like a divine serpent with burnished neck of verdant gold and so on. He stands erect amidst circling spires. He is more beautiful than all the famous of myth and legend. Eve is first attracted by his incomparable beauty and when he starts speaking to her with human voice, she is greatly surprised; Satan begins with flattering the beauty of Eve, which is a method to win her favor. (Book IX, lines 533 -548). He says that such an angelic beauty is wasted in the lonely forest where she is looked at by only one man. She should be served by Goddesses. Eve expresses her sense of wonder at a snake taking sense like a human being. The tempter then fabricates his story. He says that he has obtained a recent promotion to human sense and status after eating and fruits of a tree in the garden, (Book IX, lines 568 -612). His strategy proves successful as Eve is surprised and wants to know where that tree is. The serpent (Satan in disguise) is too happy to lead her to that tree. Thus that leader of the devils leads (or misleads) the first woman to that fateful tree as a wandering fir origins fastuas or will of the wisp conducts a lost traveler into bogs and mires, where he is swallowed up, far from any help (Book IX, lines 634 – 642) . On seeing that tree, Eve immediately recognizes it to be the forbidden tree of knowledge. She tells the serpent that God has commanded them not to eat the fruit of that. So their coming there is fruitless, though the tree is full of fruits. The serpent is astonished that scandal should have been started about so excellent a tree. As if he is greatly concerned with Adam and Eve, he expresses anger at God, who deprived them of the pleasure and profit of eating the fruit. In a great emotional fervor, he begins his lecture, and looks more impressive than all the great orators of the world (Book IX, lines 665 -668). Satan is at his best in his seductive brilliance of persuasion. His words accompanied by his action have a compelling effect on Eve. First, he turns to the tree and plays a tribute to its great virtues. Then he turns to Eve and presents his long drawn argument (Book IX, lines 684 -733). He asks her not to believe in God’s threats of death. â€Å"Ye shall not die’, he declares. The fruit has no killing power, and he himself is the standing example for it. After eating the fruit he says he is not dead but his vital, mental and spiritual faculties are enriched. The serpent (Satan) first surprises her with his physical and intellectual abilities. Then he uses his logical reasons in and pretends very rational in his approach. He says that when it is not forbidden to the beast (the snake), it need not be forbidden to human being as well. God will not get energy for such a minor trespass but will praise the adventurous spirit of Adam and Eve: The fruit gives them knowledge of good and evil. Knowledge of good is desirable, knowledge of evil is also necessary for without knowing it, how can one avoid it? Here anyway, the fruit has to be eaten. God, therefore, cannot hurt them, and still he is just. If he is not a just God, he need not be obeyed at all. Hence, anyway, there is no need to follow God’s word. Satan excels in his brilliance in putting a series of reasons and questions to innocent and helpless Eve. He questions Eve why God has forbidden them from eating the fruit? He does it only to keep them ignorant, low and in his control. The moment they eat the fruit their eyes will be fully opened and become Gods, knowing good and evil. If he, a beast by tasting it, could attain human status, surely she a woman, by tasting the same fruit, ought to become at least a Goddess. If according to God’s words she dies the death only leads to a new birth as a Goddess which is good. Satan goes to the extent of proving that man is not inferior to God in any way and stresses that man also should have every thing as God has. He seems superb when he says that human beings have every right to become Gods for, how are they inferior to Gods? In fact, the earth created for man, is better than heaven, for earth is created later by God himself, with all heavens defects rectified. Above all how does man offend the Gods in eating the fruit? What do they lose if man becomes intelligent? Or if everything goes by Gods intention and Will, how does the tree impart knowledge without His will? (Satan means to say that tree has the intrinsic power and God has no claim or control over it anybody who eats the fruits becomes wise). Thus Satan concludes his speech saying. â€Å"These and many more causes import our need of this fair fruit,† (Book IX, lines 730-731) Satan’s guileful words have won any easy entrance into Eve’s heart. She believes his words to be true. She feels hungry as the lunch time approaches and the attractive color and fragrance of the fruit, in addition to the tempting words of Satan, encourage her to touch and taste them. Yet, she first considered it within herself (Book IX, lines. 745 -779), It is doubtless that the fruit is virtuous (powerful) which made the mute snake speak. God also did not conceal its merits and told them that it is the Tree of knowledge. But his forbidding â€Å"commends thee more. † Human mind runs towards forbidden things. If God has forbidden them from being wise such prohibition binds not. The threat of death also appears false as the serpent still lives. Then ‘For us alone was death invented? † The beast, ‘friendly to man’ has brought news about his good experience. So saying she reaches for the fruit and eats it. Eve falls an easy prey to the enticing words of the Serpent. Satan’s use of trickery, flattery and his seeming logical reasons had their effect on innocent Eve. Had she not been taken by surprise by the charming golden serpent with a human voice, Eve might have found his arguments specious. His reasons are not based on any truth or reality. All his reasons are based on self deception and pride and are aimed at tempting her to eat the fruit. Thus, Satan with his extraordinary powers of persuasion and heroic energy not only convinces his followers but also tempts them for taking revenge against God Obviously, his actions and conviction are based on self-deception and his false ambition. Works Cited Paradise Lost, John Milton http://www. dartmouth. edu/~milton/reading_room/pl/book_1/index. shtml

Product and Service Marketing Analysis Essay Example for Free

Product and Service Marketing Analysis Essay Product and service marketing are highly related. Take the success of a company like Apple, for example. The technology giant operates nearly 400 retail stores, employs more than 42,000 people and hosts more than a million visitors each day. In 2012, Apple’s retail operations generated nearly $19 billion. Furthermore, it’s estimated that Apple’s Fifth Avenue store generates more than $35,000 per square foot, making it the highest grossing retailer in New York – ever. Those statistics reinforce the company’s product and service strategies of those of a highly successful company. Apple continues to hold a number one spot on a list of the world’s most admirable companies. However, the success of Apple hasn’t always been so great. It wasn’t until the company combined good products with good services, that profits increased exponentially. Slide 12-12: Service Differentiation Apple actually had a point in business in which it struggled. That was in the 1990s when the company was selling products through larger retailers such as CompUSA and Sears. It was then, that Apple computers were shoved to the side, out of the main view of customers, as just another computer brand available on store shelves. Apple employees didn’t pay enough attention to the installation of the product in the big box stores in which it was being sold, so there wasn’t a true selling point for buyers. Also, the product delivery took a major hit. In fact, the brand became so weakened when retailers did not market the products properly, that the inventory wasn’t fully stocked. While Apple products plummeted in sales, the Gateway company was offering direct sales to consumers in its own stores, and Apple had to reinvent its business model, and quickly learn how to operate in a different manner. Less than two years after Apple launched its retail stores, Gateway shut down all of its shops and laid off 2,500 workers. Only three years later, CompUSA closed its chain of 23-year-old stores as well. Apple went against much of the advice it had received, and clearly the company was doing something right. Apple created retail stores that offer more than just a product. The stores offer a shopping experience that consumers often give raving reviews on. That includes ordering ease, smooth delivery, clear installation, the right customer training and consulting, and simplified maintenance and repair. Slide 12-11: Product Differentiation Apple Stores are now the highest performing stores in retail history. This isn’t due to just good in-store and online service. The products typically set the bar among all other technology products offered in the industry. Many Apple products come with customizable features based on a customers wants and needs. That includes hard drive and disk space, all the way down to the detail of an optional custom engraving on a product. In addition to the features, Apple products are known to hold superior performance quality. Sure, the products aren’t cheap, but typically when a customer buys an Apple product, they know that product will pay for itself over time. Slide 13-5: Categories of Service Mix When you’re dealing with a product that Apple designs and sells, it’s typically a highly technological device. That tangible good brings on accompanying services. The more advanced the product, the greater the need for those high-quality supporting services. When a customer goes into an Apple store looking for a new computer or an iPad, there’s a chance they don’t know how to maximize its use to its full capability. Apple found a way to assist costumers, so they can learn about the devices they’re purchasing for free. Employees at each Apple retail shop hold free workshops for consumers to teach the basics. In addition to workshops, customers can sign up for one-on-one training sessions to dig even deeper into their product’s capabilities. Slide 13-6: Service Distinctions These services offered by Apple require the client’s presence; therefore employees need to be considerate of the consumer’s needs. That is why Apple is known for hiring â€Å"customer-obsessed, empathetic employees.† Apple cofounder Steve Jobs offered a unique insight about how consumers interact with technology. Jobs said often the problem was that consumers are limited to thinking in terms of only what they know, instead of what is possible. Jobs once said that one of the keys to Apple is that the company builds products that turn the employees on. That is certainly to the benefit of the customers, that it â€Å"often means products are exactly what they want because Apple employees are so deeply entrenched in and committed to the customer’s experience.† Slide 13-8: Distinctive Characteristics of Service While many consumers know the physical products Apple offers are those of high quality, the company has made it a point to â€Å"manage the evidence,† and â€Å"tangibilize the intangible.† In doing so, Apple had to create stores that have a clean layout, in which traffic flows steadily, have employees that are busy, but they can still manage the workload, have equipment that is state of the art, have a symbol that suggests quality in both product and service, and finally, has a reasonable price for service. We already know that Apple services are offered for free, the company’s logo is iconic, and that the equipment is top notch. So, Apple’s stores had the main focus of a clean layout and employees readily available, yet still busy. When a customer walks into an Apple store, the aesthetics are clean and well thought out. Each product is on display for testing use, and the floors, walls, and counter spaces are clean and tidy. In addition to that, carefully recruited and trained sales associates are encouraged to take customers on a â€Å"ride.† They give each willing customer a short, informative tour of the space to be able to have a conversation and connect with each and every visitor. Then, of course, there’s the offering of support for each customer, which is just another delight to those who shop at Apple. The end result of Apple’s mix of product and service marketing combined is certainly one of success. Apple has the highest retail sales per square foot than any other U.S. retailer. The stores average more than $6,000 per square foot, which is more than twice the former gold standard Tiffany Company. That success did not come with quality products alone, but quality product marketing coupled with quality service marketing. The company’s marketing strategy is unique, but the company figured out how to attract and retain customers, generate an extremely large amount of word-of-mouth and brand appeal to give it a huge competitive advantage. Works Cited Chazin, S. (2013). The Retail Secrets of Apple. Retrieved from http://www.marketingapple.com/marketing_apple/2013/01/the-retail-secrets-of- apple.html on 07/23/2013. DuBois, S. (2011). World’s Most Admired Companies. Retrieved from http://money.cnn.com/magazines/fortune/mostadmired/2011/snapshots/670.html on 07/23/2013. Kotler, P; Keller, L (2011). Marketing Management (14th ed). Upper Saddle River, NJ: Prentice Hall. Moorman, C. (2012). Why Apple is a Great Marketer. Retrieved from http://www.forbes.com/sites/christinemoorman/2012/07/10/why-apple-is-a-great-marketer/ on 07/23/2013.

Corporate Social Responsibility: Tesco and Sainsburys

Corporate Social Responsibility: Tesco and Sainsburys Importance of CSR: Case studies of Tesco and Sainsbury Executive Summery Corporate social responsibility which needed explanation some decades ago, is now included almost every mission statement and does matter in the recent time. It is to a very large extent true that with the awareness of consumer, Media, certain rules from the authorities and pressure from NGOs have lessen the harm of the corporate world to the society. But on the other hand it has been observed that if a conflict between profit and doing the right thing is seen profit wins. To start with, the project will examine what CSR stands for in reality in the light of the definitions provided by different intellectuals. It will further highlight does corporate social responsibility matter followed by the discussion about the importance of CSR in the recent times. After that the project further enquires the different approaches towards CSR as some people are in favour and many are against CSR activities in the business. Furthermore, the project throws light on the obligation and practices of the different institutions and authorities which includes businesses, Government, Professional accountants, Non government organization and general public as well. The impartial conclusion has been made after enquiring the findings from previous literature, previous progress in respect of CSR, corporate worlds role in current situation, future priorities declared by government, accountants, non- government organizations and civil society . Moreover, an analytical approach of case studies has been adopted in the project where mainly two companies Sainsbury and Tesco have been chosen to demonstrate the corporate worlds current role with regards to CSR. In addition to two companies Sainsbury and Tesco, the analysis of the scores of other companies is also included to reach the conclusion. Finally, the projects propose some recommendation with regards to CSR for Government, Professional accountant, Businesses and civil society that they need to make collective efforts to make this world a better place not only for themselves but for the successors as well. Chapter 1 1. INTRODUCTION 1.1 What is CSR? Although every organization has formed a different definition for corporate social responsibility yet there are common grounds and connection between them. CSR is about how companies manage business processes to produce an overall positive impact on society. (www.mallenbaker.net) With the passage of time CSR has become very important issues in the corporate world and even for other stakeholders including media. For instance the financial times and guardian have special reporters for Corporate Social Responsibility of the corporate world. Social responsibility can be found in almost every weekly newspaper. According to Mallenbaker CSR is something which ‘like original sin can never be escaped by corporate world. The following illustration will help to explain CSR to a very large extent: In terms of the above mentioned illustration, to bring the quality of management, the organization or company has to consider all the inner and outer circle factors which will ultimately bring about the positive effect on the society. For instance if the company tries to show its responsibility in respect of Environment it has to satisfy the government, non-government organization and civil society concerned with environment. Similarly for work place it has to keep in mind the employees rights and unions as well. 1.2 Who are Stakeholders? Person, group or organization that has direct or indirect stake in an organization because it can affect or be affected by the organizations actions, objectives and policies. Key stakeholders in a business organization include creditors, customers, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions and the community from which the business draw its resources (www.businessdictionary.com). Businesses generally need to manage their relationship with their stakeholders for both short and long term benefits. It is considered more valuable for any company to involve the stakeholder in the whole process and communicate them through a sophisticated process. For the lasting relationship with the stakeholders, the managers need to expand role of the stakeholders by moving form just informing and responding to involving them in corporate social responsibility process. 1.3 Background The history of social responsibility of the corporate in the world is as old as business itself. For instance the laws to protect forest during commercial operation can be found almost 5000 years ago. In ancient Mesopotamia almost 1700 BC King Hammurabi introduced some laws for farmers, builders and innkeepers which showed that they would be prosecuted if they caused any death or major problem for the citizens. In old Rome senators grumbled about the failure of business to contribute sufficient taxes to fund their military campaigns. (www.brass.cf.ac.uk ) With the advent of industrialisation the impacts of the business on society assumed a new dimension. By the 1920s the world saw a new discussion about social responsibility of the business which was actually the beginning of the modern Corporate Social Responsibility movement. In March 2006 the European commission published its latest communication on CSR which clearly defines that the companies should recognise the social and environmental concerns in their business activities. The aim for this communication was to make Europe ‘pole of excellence ‘on CSR.Uk government also encouraged such activities and in the ‘global reporters surveys UK companies were rated the top 3 reporters. Almost 80 % of FTSE 100 companies report on social and environmental issues. (www.corporateRegister.com) 1.4 Project Objectives A large part of the project includes the discussion about the importance of the CSR to the businesses, Government, civil society and especially for the professional accountants who can play a very important role in respect of CSR reporting. It has been tried to achieve the following objective in the project. * What is CSR in reality with its true spirit * Importance of CSR in the current era * Stakeholders expectation from Corporate World * Role of professional Accountant * What the businesses are doing in this respect * How CSR can be developed * Is there any legislation exists or needed The debate on CSR is growing day by day but in reality a big part of the corporate world and society almost does not know the real meaning of the this term. Some recognise it as a report for public relation. Some say it is about to improve the business competitiveness. Some call it a good business practice. The other feels it is just a type of threat. CSR in reality is a framework of relations between corporate world and the rest of society both nationally and internationally. It is not the activities just for the big countries in the world but for all the companies exist in this world because people exist everywhere. CSR is good for long term business development as well as for wider society. The world has seen progress in every area and this thing has increased more concerns for the society. Thats why the partnership of society and business world is needed to deal with all the concerns. Government in this aspect ha a very important role to play to bound and encourage the corporate world to recognise its social responsibility and act positively. This task is not only the responsibility of one department ,company or community but participation is needed from every field of life including Governments, Corporate world, NGOs, Professional Accountants ,Professional bodies and Civil society. 1.5 Priorities So For CSR has gained more attention for all including media but on the other hand the real importance of the CSR is being neglected or going behind the scene in some way or other. Many organizations are using CSR as a tool to make money for their shareholders ignoring the other stakeholders of the business which is totally against the true spirit of CSR. The government and private bodies made some priorities in the past and started working on CSR. They precisely mentioned some principle to go along with these issues. For example U.K CSR department announced publically that it will highlight the importance of social and environmental responsibility, assist the involvement of all the small and medium sized companies in this respect. They further mentioned that they will favour the transparency of CSR reporting and aware the whole corporate not only in U.K but all over the world. To talk about the professionals who are considered responsible for reporting financial and social issues used to follow only a set of rules established by GAAP and other bodies. These rules and regulation do not seem to be helpful for the professional accountants to report social and environmental issues. The professional used to look into the past for reporting like historic cost, prudence etc and have ignored the changing trends of the world which has become the global village. Although management accounting deals with the removal of waste which is also a part of CSR yet there are so many things which the accountants are lacking. The accountants should know the reality that the standards only provide guideline and it is accountants who by using their own moral standards ethically can make the things bit better. In terms of the firms priorities for CSR, it seems that they are claiming more than taking practical steps and their priorities together with their practise are ambiguous. Although CSR reporting have become tradition in many companies but still they are lacking many aspects. It seems that they are looking after their own benefits only and not giving importance to other stakeholders .They seems to follow Friedmans idea that money belongs to shareholders only and they have to decide where to invest it. They are planning for short term ignoring long term. They do no consider this reality that by investing in social issues like community development, employees betterment , customer care, environment issue etc not only improves the reputation of the companies but develop the companies benefits in long term. But in spite of all the claims it seems that saying something and doing something practically are two separate things. One can find hundred and thousands of press releases about CSR but less practical steps can be found. It does not mean that nothing is being done on CSR but more needs to be done. Chapter 2 2. Literature review This Chapter will examine the academic literature on Corporate Social Responsibility. More specifically the review will focus upon what CSR in reality stands for, its importance, Rules and Regulation, what the companies are doing in respect of CSR, Professional Accountants Role and expectations of the stakeholders. CSR which has been used for business ethics, defined as tantamount to corporate philanthropy, and considered strictly as relating to environment policy has different meaning and importance for everyone. (McWilliams, Siegel, Wright, 2006) Through the power of collective action, the Global Compact seeks to advance responsible corporate citizenship so that business can be part of the solution to the challenges of globalization. In this way, the private sector in partnership with other social actors can help realize the Secretary-Generals vision: a more sustainable and inclusive global economy. (www.unglobalcompact.org) 2.1 The concept of CSR JCI believes that CSR is about what business can do not about what business must do. It is about opportunities not about obligations or new rules. (www.davidgrayson.net). The recent CSR concept was first found in the mid-twentieth when the focus was just on social issues like charity and Labour issues. But later the area of discussion widened and covered ecological issues as well. It included how business should take account of its economic, social and environment impacts in the way it operates- maximizing the benefits and minimizing the downsides. Corporate social responsibility means that a company or business is not only accountable to its shareholders but to all its stakeholders which include its customers, suppliers, employees, local communities, investors, environment, governments etc. CSR to a very large extent has been noticed a voluntary action with less legal requirements. 2.2 Importance of CSR The exploitation in the business world is as old as business world itself. Whether it was employees rights, communities inconvenience, environment, shareholders, customers, suppliers, creditors or debtors it has been obvious everywhere. But as the CSR ha gained a lot of attention, the world has become the global village now where the comments like ‘ Profit is only responsibility can not be accepted. (Husted, B.W. and Salazar, J., 2006). Where selected stakeholders like particular suppliers, creditors or shareholders can not be favoured by managers, where abuse of power by business can not exist, employees can not be exploited and society can not ignore the damage of the environment. The main reason for the awareness for all these things is CSR. One thing is sure that the pressure on business to play its role on social issues will continue to grow in future. In the last ten years the institution which worked hard within the global sphere of operation gained more respect, power, monetary benefits and influence as well. On the other hand the institutions like police, judiciary and scores of government institutions have been failed in doing so. But the pressure is growing day by day in this respect. The governments have admitted this thing that it can not change the whole world without the help of the people who are living in the world particularly the corporate world which is getting benefits from the society. So the government is in one way or another putting pressure on the businesses to contribute towards the social issues. On the other hand businesses have also come to known that for long term recognition and benefits, they have to be active in respect of CSR. They have to recognise the rights of their employees respect their suppliers, save the environment and contribute towards the other issues which exist in the society 2.3 Intangibles and CSR The importance of the intangibles can not be ignored as the new International Financial Reporting Standards (IFRS) stated that from 2005 all listed European companies must report acquired intangible assets. The intangible assets includes Brand value, goodwill etc. (www.csr.gov.uk). It is said that intangible assets are more important for a business than the tangible ones. CSR not only helps in building these assets but protects and expands them. For example the brand value of any business do not start form the beginning but retained afterwards with different CSR activities which may include Consumer specific activities, health and safety measures , Sponsoring community development programme, support for clean environment and so on. 2.4Competitiveness A business can be more competitive and successful as well by adopting CSR policies which is an edge for any company. For example a link between a business and customer give more information to the business about the needs and requirements of the customer. Ultimately this thing results in the business becoming more competitive in terms of product development. CRS also makes the businesses more efficient and competitive in respect of price by taking steps like minimizing waste .If the companies prefer to make the recyclable products, it can help on the one hand to reduce a danger for environment and on the other hand can help a lot to reduce the cost of the product which ultimately results in low price for the customer and more benefits for the businesses. 2.5 Different Approaches towards CSR Corporate social responsibility is one of those topics-like Manchester United and the New York Yankees- that raises passions both for and against. (Simon, 2005). Different approaches can be found about CSR which are contradictory. This part will examine some of the approaches available and analyze them. For many years, Milton Friedman (1962) has been known as the villain in the business and social literature. His notion, that business are owned by their shareholders and they have to decide about their money if they want to give it to the charity or not, has been criticized (Husted and Salazar, 2006).He further had an argument that CSR is indicative of self-serving Behaviour on the part of manager and reduces shareholders wealth (Abagail , Donald and Patrick 2006).But without going into details this idea seems to be true that how spending more on social issues will help to maximize the benefits of the businesses . The shareholders do not have any problem to spend a moderate amount on these types of issues. On the contrary, there are others who have totally different opinions. For example Jones says in his stakeholders theory that the firms which are loyal and honest to their stakeholders ultimately create incentives for their own firms. Some say that CSR is only used by some companies to get competitive advantages. (Abagail , Donald and Patrick 2006) Some are with the viewpoint that CSR is not about giving charity only but it is more than that. It is about helping the community, taking steps to save environment, taking care of the rights of employees, improving relationship with customers and about contributing towards other social issues. (www.mallenbaker.net) One thing is quite sure from the previous experiences that companies cannot maintain business success and shareholder value by maximising short-term profits and the importance of the CSR can not be ignored in the recent time. (Oketch, M. 2004). The companies should, therefore, should take part in the activities which allow them to get benefit in the long run, and contribute as much as possible to the community without making a loss. This will take them towards a win-win situation. 2.6 CSR and Poverty Reduction Because of the unfair distribution of the wealth, people in some countries do not have food to eat and water to drink while in some countries people have more than they need. Although poverty reduction and CSR do not seem to be connected with each other yet the social responsible business can contribute to reduce the poverty especially in developing countries. Creating Jobs, Training the people, addressing the issue of child labour, gender equality, health care, community development, higher minimum wage and better working place conditions are some of the steps under the roof of CSR which can help to reduce the poverty to a certain level. A proactive approach of corporate world, society, professionals and governments is needed towards CSR to reduce the poverty. 2.7 Professional Accountants role Scores of Professional accountant have already started taking steps to adopt the concept of CSR and ready to contribute towards a contemporary issues especially environment-being the most important currently. But they have been criticised usually for not unfolding the required information which the stakeholders are looking for. Their CSR reporting fails to be logical and does not produce comparable data on environmental issues, risks and uncertainties which can be relevant to the business current and future performance . The main objective of corporate reporting is to communicate economic measurement of the information about resources and performance that would be useful to users who have a right to this information. To fulfil this objective, corporate reports have to possess the following qualitative characteristics: relevance, reliability, comparability, objectivity and timeliness (Barry Elliot and Jamie Elliot, 2004). Accountants, who are actually considered responsible for reporting all the aspects, have been following set rules made by professional bodies and other authorities. These bodies have only provided basic rules which do not include the ultimate guidance on social and environmental issues. Furthermore accountants have been focusing on past only rather than dealing with present and future. For instance historic cost, prudence, representational faithfulness and so on have been their basic areas of interest. These concepts actually do not help when reporting social and environmental issues. After years of criticism both professional bodies and government worked out certain criterias about these issues. But in spite of the fact that accounting standards have some provisions and government has put some restriction, the accounting professionals need to take these new issues into consideration while reporting financial performance. The standards only provide basic guidelines to standardise the system globally and the whole world will be a better place if theory and practice is balanced for its betterment. The accounting professionals need to use their moral standards as well while reporting. 2.8 Governments role The role of the governments is very vital to improve the contribution of the business to the social development. According to many intellectual the basic thing which prompts any organization to play its responsible role in society is legislation in that particular area. There are laws which cover many areas like minimum wage, Health and safety and disclosure to investors but the governments have probably need to make some amendments in laws in the areas such as social and environment. Whereas on the other hand many opine that if the legislation regarding CSR is prepared, the businesses will only make efforts which the law requires but never more. At the moment many companies are doing their best voluntarily but the legislation can effect their motivation and they may step back. The governments have been facing two challenges. First how to engage more and more companies in CSR and secondly how to make the contribution of the companies better in terms of CSR. For the first challenge the government has made a set of rules and regulation for the companies to follow CSR and reviewed it action and polices across the board and made CSR a priority. For the second challenge the governments have been encouraging the roles of the companies which are doing their bets for the social issues. The governments can make corporate social responsibility better by providing best practice guidance, intelligent regulation and incentives to the companies where needed. Some suggestions of making a separate department for CSR have also come to the surface from many critics. They think that accountants are not supposed to deal with CSR especially social and environmental issues. 2.8.1 U.K Government U.K business world to some extent going in the right direction as the global Reports 2006 survey shows that U.K companies were rated the top three reporters (www.csr.gov.uk). ‘Since I became Minister for CSR in May 2002 we have seen rapid growth in Interest in the application and implications of CSR. What has impressed me most has been the level of creativity and enthusiasm brought to the subject from all quarters. Weve seen encouraging progress. Id like to highlight some significant recent developments and look at where we need to focus for the future. (www.csr.gov.uk) The government encourages companies to report on their CSR performance in different ways like: * Issued guidance on environment reporting * The ACCA sustainability reporting awards * Supported the global Reporting Initiative The U.K Government has brought the regulation up to date as well. From October 2007 Quoted companies must also disclose the information about employees, environment, social and communities matters. Company act 2006 also has shown some legislation in this respect. (www.corporateRegister.com) 2.8.2 European Union Role Like UK European commission also considers Corporate Social responsibility an important area and have already started working. In 2001 the European commission developed a strategy on CSR which resulted in the establishment of a Multi-Stakeholder forum on CSR in October 2002.In march 2006 European commission published its communication on CSR which states that CSR can make a significant contribution and make Europe a ‘ pole of exellance. During its presidency of EU in 2006, Finland held a conference with the name ‘ Corporate social responsibility policies promoting innovation and competitiveness which also emphasized on the importance of the Corporate Social Responsibility. (www.csr.gov.uk) 2.8.3 International Commitment In September 2006 a ‘world summit on sustainable development was arranged in Johannesburg where all participant committed to promote corporate responsibility and made a future line of work. Some critics, however, says that the government is trying to avoid its duties because it is just dependent on the NGOs. Governments are trying to push NGOs on the front foot instead of going forward themselves. It is true that governments are making efforts for the development of CSR but the main problem is practice. It has been observed in different surveys that the non-government organizations in the world are making more efforts and taking practical steps for the solutions of social issues than the governments and the Governments are lacking the implementation of the its theory . 2.9 Consumer and CSR To talk about the role of the general public, they have also a very important role to play. Sometime the companies want to be more efficient and wishes to make CSR Central to their corporate identity. For instance the Seventh Generation who are the suppliers of the chlorine-free toilet tissues and Ben Jerrys, who are the eco-friendly ice-cream maker, have not been responded well by the consumer. It seems that only minority of people are ready to pay premium prices for these responsible products. This type of behaviour from consumer can demoralise the companies or force them to limit their CSR activities. Some critics says that only consumer can not be blamed for not supporting CSR activities as it is the duty of the government that it should aware the general public about CSR. If a common consumer does not know what CSR is or how it can be supported, how consumer can encourage such activities. 2.10 NGOs and CSR NGOs and trade unions have been pointing their fingers at the international government bodies for their lack of commitment towards CSR. It is to some extent true that companies have been left alone with less guidance and little support from governments. It has been noticed that Non-government organizations have been working more actively than the governments. Whether they are social or environmental issues non- government organizations seems to be excelled. For instance in many parts of the world different charitable or non- profitable organizations are going ahead to the governments institutions, professionals, and corporate world. ActionAid , Amnesty International UK , Oxfam GB , Refugee Council , Saferworld , Save the Children UK and World Development Movement are some of the examples of the NGOs which are working for social and environmental issues and putting their best efforts without making any profit. 2.11 CSR in developing countries CSR aims both to improve the contribution of the business in society and maximize the benefits out of the business activity. The more CSR activities can be found in the richest countries than in the middle and low-income countries. The agenda of CSR is less visible in these countries. CSR actually offers opportunity to the governments, Private Sectors, Professional Accountants to bring changes in the current social system in these countries. Even the companies which are doing their businesses in the developed countries can do a lot in these countries by expanding their Corporate Social Responsibility practices to these countries. By doing this they can enlighten their image and get long term benefits as well. However over the past few years the governments, businesses NGOs and civil society have managed to some extent to adopt CSR agenda and have started doing something in the developing countries as well . For instance the countries like South Africa, China, India, Brazil and Philippines have started CSR movements in their respective countries. But it is the beginning and still lot to do in this regard. 2.12 Consequences in the absence of CSR The above mentioned discussion about CSR and its importance made one thing very clear that CSR has become essential both from the business an Social point of view. If the society, the accounting professionals, businesses and other academics in the financial field do not challenge these issues and stop being passive in order to meet the true purpose of their roles, the problems will continue to grow. As far as the businesses are concerned they make money while working in a society. If the society where they are working is strong enough in respect of money and can enjoy the basics needs of the life the economy will grow which will result in a prosperous Situation. If the companies are making money from the people, it is not strange to give some part of it back to the people in the form of facilitating them in different respects such as community development, helping the poor, Taking care the children, take care of the suppliers, customers, employees and contribute towards the solution of the environmental issues which is in reality their surroundings as well. It is said that to get love from some one you have to give it first. By doing all the efforts regarding CSR the companies actually enhance their image side by side other benefits for long term. In the absence of CSR business can make money but can not earn long term benefits and respect in the society in current situation. To talk about the professional accountant, it is obvious that they follow certain rules and regulations while reporting but they need to follow morality and ethics as well. The professional, of course, are the part of society and not the part of problems in society. As CSR has become a source of betterment for the society, they should take care of the social and environmental issues while reporting for the companies and should try to point the risks in future with regards to business side by side giving analysis of the past. If they just ignore the issues of the society, who knows they can be ignored by the society. Chapter 3 3. Methodology Knowledge is a series of inventive activities which applying models to unfold the reality (Watofsky, 1983) .This type of inventive process changes time to time and human beings observe the changes. But the models which human beings themselves recognise vary time to time. The method of case study has been adopted in the project which will itself answer many questions like ‘How, when and why. The procedure to go for case study is more explanatory and flexible than the other methods. Case study procedure is found suitable because it helps to understand the complex issues deeply, points out the problems during the procedure and suggests remedies as well. The Case studies of Sainsbury and Tesco in this project are carried out in order to know the current situation of CSR and its importance in corporate world in U.K. The reason for selecting Sainsbury and Tesco is that the both companies are the very successful and big names in the U.K, represents other business community and rivals as well. The project aims to observe the CSR importance by analyzing their intern