The effect of hyperinflation

The principle impact of hyperinflation is that buyers battle in purchasing what they need. The costs of products rise ceaselessly, so individuals need more cash to purchase the things they would have had the option to bear the cost of already. This outcomes under water, which would be difficult to follow through on off particularly if costs keep on rising, or doing without, which could cause medical problems. There is likewise the enticement of burglary; in urgency a few people may be attracted to robbery to help their family. In any event, for those couple of individuals whose pay stayed up with expansion, it was difficult to purchase the products. They required such a lot of cash to purchase what they required that they would truly battle to move the cash to the shop. At times of hyperinflation, individuals needed to ship cash in handcarts since they required such a large number of notes for even little things. A case of this was in Germany 1923, where a solitary portion of bread in the end cost 200 billion imprints. Another consequence of costs rising constantly was that laborers needed to get paid two times per day to surge out and purchase their merchandise before costs rose significantly more. Besides, this implied compensation never found the ever-lessening estimation of cash, and were inadequate to take care of the expenses. Another significant impact of hyperinflation is that individuals as a rule battled with developing deficiencies. At the point when little things were equivalent to thousands, or even millions, of notes, remote providers began declining to acknowledge the hyper-swelled cash. This implied imports evaporated and deficiencies of food and different products deteriorated, for everybody. Moreover, reserve funds, protection approaches and annuities got useless. This fundamentally influenced the white collar class, especially mature age retired people, and widows. For jobless individuals depending on reserve funds and annuities, this was decimating and caused numerous issues. Then again, this attempted to the benefit of those paying off debtors before the hyperinflation, who might now effectively have the option to pay them of as the wholes included got useless. Organizations were significantly influenced by hyperinflation also, for good and awful. Well off businesspeople would profit by hyperinflation since property was modest and with littler organizations battling; the greater, progressively fruitful organizations would assume control over the littler ones effortlessly. . Shockingly, it didn’t help littler organizations so much. They needed to pay higher wages which they couldn't bear the cost of and had less purchasing power. They were additionally in danger of being purchased out by the greater organizations leaving them jobless. Driving on from this, the laborers would battle too in light of the fact that when the littler organizations got assumed control over, they would lose their positions and afterward battle to pay for merchandise, while jobless. . On certain events, one aftereffect of hyperinflation was that the administration printed more cash. This improved it to begin with, at the end of the day aggravated expansion and started another cycle. As the costs rose, more cash was printed, making costs rise once more. Taking everything into account, the primary impact of hyperinflation was that individuals battled with purchasing what they required, anyway there are numerous different impacts that caused deficiencies and difficulty: investment funds and obligations getting useless, greater organizations assuming control over the littler ones, prompting joblessness, and the administration printing more cash. There are loads of impacts of hyperinflation, and despite the fact that it profited a couple of individuals, all in all, it caused disarray and hopelessness for the individuals.

Ten Words to Learn How to Spell in 2010 - The Writers For Hire

TEN WORDS TO LEARN HOW TO SPELL IN 2010 Make any goals this year? I’m going to propose you make one increasingly: Polish your messages. Compose perfect notes. Look more astute. Look at this funny animation on The Oatmeal’s site, Ten Words You Need to Stop Misspelling. It traces probably the most usually incorrectly spelled words (and indeed, even the best of us commit these errors some of the time) in a fun, engaging way. Study it. Submit these words to memory. In the event that I could include only one more word pair to this rundown, it would be here/hear. I see this one constantly (Hi, father!), and like most homophones, it’s actually a senseless mix-up, since the words are not comparable at all: Hear: action word, having to do with sound, tuning in, and utilizing your ears. Ex: Do you hear that commotion? Here: qualifier, thing, or descriptive word, having to do with place (both genuine and unique); it is something contrary to â€Å"there.† Ex: Come here and afterward we’ll go to lunch. Do you have any spelling or use annoyances that didn’t make the rundown? Tell us †¦ and here’s to a cheerful, mistake free 2010!

Whats a Trade War and Do I Really Need to Care

Whats a Trade War and Do I Really Need to Care Whats a Trade War and Do I Really Need to Care? Whats a Trade War and Do I Really Need to Care?Trade wars are the petty schoolyard fights of international politics, only with billions of dollars and thousands (maybe millions) of jobs on the line.You’ve seen stories on the news about the Trump administration’s ongoing trade war with China, but is that really what’s going on here? In fact, what is a trade war anyway? And if it is happening, is it something that you really need to know about?We have all those answers, and moreOn tariffs and international trade.Okay, in order to explain what a trade war is, we first need to talk about tariffs and international trade.Tariffs are a tax on imported goods (or goods that are produced outside the country). The purpose of tariffs is to protect domestic industries by making imported products more expensive.It’s important to note that tariffs are paid by the persons or companies importing the stuff. For all the talk of levying tariffs on foreign countries, it’s the importers who are actually shelling out.Up until 1913, when Congress instituted the income tax, tariffs were how we funded the U.S. government. As such, we had a lot of tariffs back then, at an average rate of 15 percent.After the income tax was established, America’s tariff rates steadily dropped until the Great Depression. In 1932, Congress enacted the Smoot-Hawley tariffs, which were aimed at protecting American jobs by hiking rates an average of 50 percent.Many people think that those Smoot-Hawley tariffs hindered international trade, which ended up making the Great Depression worse. And, as tariffs raise the cost of importing foreign goods, they do generally have a dampening fact on international trade.Although the purpose of tariffs is to give domestic manufacturers an advantage over their foreign competitors, there is a lot of debate as to whether they are helpful or harmful to the economy.After all, cheap foreign steel might hurt the domestic steel industry, but it can be a great boon to do mestic car manufacturers who are able to improve their profit margins and lower their prices.We’re not here to settle that debate, today. But it does help to remember that economies are massively complicated. When one particular sector gets a boost, it often comes at another sector’s expense.What is a trade war?When you were in grade school, you probably got into lots of petty fights on the playground. A kid would run over and slug you in the arm, so then you’d do the same. In retaliation to your retaliation, they’d kick you hard in the shin, so you’d kick them in their shin, and so on.This isn’t exactly how trade wars work … but it’s not that far off.We mentioned earlier that tariffs are paid by importers, not by countries themselves. But that doesn’t mean that the countries are unaffected. Higher tariffs will either mean lower prices paid for their goods or a decrease in exports. Either way, their economy is going to take a hit.As such, when one country imposes n ew tariffs or dramatically hikes their existing rates, the opposing country will sometimes retaliate. “You want  to raise tariffs on our steel?” they (metaphorically) say. “Well then, we’ll raise the tariffs on your milk. Let’s see how you like that!”From that point on, tariffs keep getting hiked, and both countries are now locked in an escalating dispute. It’s just like your old playground tiffs, only with massive implications for the state of the global economy.While trade wars are non-violent, that doesn’t mean they don’t do real damage. Industries in both countries will be negatively affected. Goods will sit unsold, profits will go down, and jobs will be lost.And trade wars can turn into shooting wars, too. During the 1800’s, the first Opium War started as a trade dispute between the Chinese Quing Dynasty and Great Britain over the East India Company’s importing of (you guessed it) opium.Are we in a trade war right now?Oh yeah.Starting in January 2018, the Trump administration and Chinese government (led by Communist Party general secretary Xi Jinping) have engaged in a classic trade war tit-for-tat.Trump levied tariffs on Chinese solar panels and washing machines. In response, China imposed tariffs on over 100 American goods including aluminum and pork.Things have continued to escalate from there. Back in September, the U.S. announced new tariffs on $200 billion worth of Chinese goods with the promise of more tariffs if China retaliatedâ€"which they promptly did.As of now, this trade war shows no signs of slowing down.But do you really need to care about this?Double oh yeah.Economies thrive on stability and trade wars are the opposite of stable. The purpose of the multinational trade agreements and organizations like the World Trade Organization (WTO) are to avoid trade wars by instilling both rules and venues to settle individual disputes.But the free flow of goods and services across borders isn’t without its downsides, especiall y for wealthy countries like the US. It can mean fewer well-paying blue collar jobs for U.S. residents, either because their companies aren’t able to compete or because they move their operations to lower-cost countries in order to stay competitive.Then again, the decreased cost of foreign goods also means much lower prices for consumers, which boosts the U.S. economy overall. As we continue to stress, the forces at play here are extremely complicated and require reams of rigorous, sober-minded analysis to unpack, more so than we can provide in a simple blog post.The word of the day is: uncertainty.All that having been said, the short-term effects of this trade war are likely going to be lost jobs and higher prices. Even if you won’t be affected by the former, you will almost certainly feel the latter in one way or another.But really it’s that instability, and the uncertainty that it breeds, that is the largest cause for concern. We can talk about the likely short-term effects , but its the complete unknowns that could be really harmful. Or they could be great! The problem is: we don’t know.If it helps, think of our current trade war like it’s that creepy, psychedelic boat ride from Willy Wonka and the Chocolate Factory. As Gene Wilder himself puts it:Theres no earthly way of knowingWhich direction we are goingTheres no knowing where were rowingOr which way the rivers flowingSure, in that scenario, everything turns out fine in the end. Well, for Charlie at least. Not for the other kids. And as anyone who remembers watching that scene from between their fingers can tell you: things might get better, but they’re going to get a whole lot scarier first.If you enjoyed this piece, check out these similar posts from OppLoans:Wait, Why ARE Employers the Ones Providing Health Insurance?25 Little-Known Presidential Money FactsIs There a Secret Money Lesson Hidden In “The Wizard of Oz?”The 12 Worst Financial Scandals In HistoryWhat big picture financial qu estions would you like for us to answer? Let us know! You can find us  on  Facebook  and  Twitter.

Nimbus Helix Funiture - Business Plan - Free Essay Example

Sample details Pages: 8 Words: 2501 Downloads: 2 Date added: 2017/06/26 Category Business Essay Type Research paper Level High school Did you like this example? BUSINESS PLAN EXECUTIVE SUMMARY Nimbus-Helix Furniture Co. Ltd. is a medium-sized furniture manufacturer operating for over 10 years, specializing in traditional living and dining room furniture. As the competition in the market increases with constant changes in the home and office designs, the enterprise decided to innovate and expand the types of products. This paper will discuss the different barriers the company may encounter and the strategies to counter them and will enable the creation and seamless implementation of the innovations and reward strategies for stakeholdersà ¢Ã¢â€š ¬Ã¢â€ž ¢ enthusiasm, drive, and values parallel to the development of innovation. Don’t waste time! Our writers will create an original "Nimbus Helix Funiture Business Plan" essay for you Create order SUMMARY ANALYSIS Innovation macro barriers and their resolutions Political. These may include the different policies and regulations that may affect the business, such as the limitations on the number of trees allowed to get cut down every month in New Zealand. This will affect the availability of resources and, consequently, the availability of goods. In this case, Nimbus-Helix can consider using synthetic materials, like steel and plastic, instead of or in combination with the wood that they are used to work with. Another solution would be finding a supplier from another country and import more wood in addition to their NZ supply. Resources. As more products are planned to be introduced, higher amounts and more types of resources will be needed. Aside from the materials, more manpower and funds are necessary for the innovation. As for the materials, it would require the firm to look for new suppliers who can provide quality materials of the desired quantity in a specific time span. For the manpower, the human resources will need to find competent new staff and to send the current staff to trainings that are suitable for the innovations. Finally for the funds, Nimbus-Helix can resort to bank loans and other investors to fill up the need in purchasing new facilities and technology. Trends. Since the company is used to making only limited types of furniture, it will be a challenge for them to start making new ones to suit the new trends of the market. New styles, new materials, and new technology will definitely push them out of their comfort zone. It would be very helpful to have new employees or consultants from the real estate industry who can suggest innovations based on their knowledge in modern real estate. Hiring staff who are fresh to the industry will also be good in generating fresh ideas in to the company. Surveys and market research are still very useful tools to cope up with the barriers on trends. Innovation micro barriers and their resolutions Conflict. Conflict can be categorized as internal or external. Internal conflicts come from within a person, usually arising when the employeeà ¢Ã¢â€š ¬Ã¢â€ž ¢s moral values are challenged or compromised. This can highly influence an employeeà ¢Ã¢â€š ¬Ã¢â€ž ¢s performance level. On the other hand, external conflicts come from the environment and result to a hostile working environment. Examples are bad management and unsatisfied customers. Conflicts can be addressed by: Mediation. This involves having a third party mediator, who is unaffected by the conflict and therefore has an unbiased opinion. He manages any discussions with regard to the problem. In organizations, this is usually the human resources manager but sometimes necessary to get an outsider. Considerations. This refers to developing a set of guidelines that should be followed when resolving any conflict. These rules should be documented on the employee manual so everyone knows what to expect and how to deal with the problems at all times. Culture and attitude. There can be many different unpleasant attitudes that can affect the operational excellence of a company. Examples are of the most dangerous habits are: Having no initiative Having a à ¢Ã¢â€š ¬Ã…“conspiracy theoryà ¢Ã¢â€š ¬Ã‚  in mind Unhappy people Being the à ¢Ã¢â€š ¬Ã…“frog in the well,à ¢Ã¢â€š ¬Ã‚  pulling others down to oneà ¢Ã¢â€š ¬Ã¢â€ž ¢s level Having a passive aggressive behavior (Oorjabizops, 2013)[1] Employees with any of these detrimental behaviors should be addressed swiftly to avoid any huge impact from occurring. People should be talked into, coached, or removed from the innovation team if he does not understand and support the goals of the project. Politics of working relationships. à ¢Ã¢â€š ¬Ã…“Office politicsà ¢Ã¢â€š ¬Ã‚  happen when people take advantage of the circumstance or of other people in order to advance for personal reasons or for a cause they support. Many people think politics is something to avoid, however, it is practically impossible eliminating it because there will always be people who are more powerful than others, everybody wants to get promotion, and everybody will have to compete for the limited resources. The best way to deal with this barrier is to make the politics work for you using the strategies below: Re-map the organizational chart. The organisation may need some adjustments considering the political power. One should see who are the highly influential individuals, the à ¢Ã¢â€š ¬Ã…“brainsà ¢Ã¢â€š ¬Ã‚  of the company, and those who have authority but are not practicing it? Understand the informal network. Aside from the formal positions of employees in the organisation, one should also understand the social networks within the firm. One should know what cliques are formed, who gets along with whom and who does not get along with others. Build relationships. After understanding how current relationships work in the firm, one should build his own social network accordingly. It is important to get to know the politically powerful people and to make sure that you build relationships in all levels of the hierarchy. One must not associate oneself to a certain clique, but should work to be a part of multiple networks. Listen carefully. Everybody loves anyone who actually listens to them. Besides, the less you talk, the less things others will have to use against you. Make the most of your network. It is important to learn how to use oneà ¢Ã¢â€š ¬Ã¢â€ž ¢s network to promote oneself or oneà ¢Ã¢â€š ¬Ã¢â€ž ¢s team positively. Networks can also be a good source of information, publicize oneà ¢Ã¢â€š ¬Ã¢â€ž ¢s achievements, and see new opportunities for growth. Neutralize Negative Play. à ¢Ã¢â€š ¬Ã…“Keep your friends close and your enemies closerà ¢Ã¢â€š ¬Ã‚  perfectly applies in office politics. Ensure that you understand your competitors within the company, what their goals are and what motivates them. Govern Your Own Behaviour. Identify the model behaviours that help people be successful and apply it to oneself. It is important to be always positive and assertive and a person of integrity (MindTools, 2014).[2] Innovation reward management theory and practice Reward management refers to the development and implementation of tactics and guidelines which purpose is to recompense employees consistently with justice and equality, according to how much value they are adding to the organisation. It usually involves the study and manipulation of employee remuneration, compensation, and other employee benefits. Rewards can come in two different forms: Extrinsic rewards. These rewards are concrete and are focused on recognising and motivating employee performance. Examples are pay raise, bonuses, gifts, and promotions. Intrinsic rewards. These, on the other hand, are intangible and are focused on employee satisfaction and happiness. Examples are feedback, recognition, and empowerment. There are several motivational theories under reward management, categorizing the reward system based on the type of rewards and how they are used. Content theories. Such theories aim to identify and study the elements that motivate better performance ad higher efficiency from the employees. These are highly related with extrinsic rewards. An example is the Maslowà ¢Ã¢â€š ¬Ã¢â€ž ¢s Hierarchy of Needs. Process theories. On the other hand, these theories focus on the effects of the different personality types to employee behaviour. Process theories are more inclined to intrinsic rewards. A famous example is the Equity Theory. Other famous theories are: Frederick Herzbergà ¢Ã¢â€š ¬Ã¢â€ž ¢s motivator-hygiene theory. This theory considers satisfaction and dissatisfaction as two independent factors that should therefore be measured separately. Real motivation is believed to originate from the work per se, while rewards are introduced to stop any dissatisfaction from occurring from completing the tasks. Expectancy theory. This theory works best for employers who can calculate the motivation effort and can forecast a defined numerical return. It determines the interrelationship among performance, motivation, and ability, expressed as: Performance = Motivation x Ability From Wikipedia (2014).[3] Techniques for managing stakeholder expectations Poorly managed stakeholders can result to a series of problems that may be detrimental to the progress of innovation if not addressed quickly. Since stakeholders participate from the start through the end of the projects, it is vital that stakeholder expectations are properly managed all throughout the innovation cycle. Stakeholder expectations can be managed by these three essential tools: Communication methods. Face-to-face communication, individually or in meetings, is always the best method to resolve any communication concerns. However, results from this communication should be followed up with a written communication containing the summary of all decisions and actions agreed upon. Interpersonal skills. This is a vital characteristic of the project manager but it is also important that all members of the project team possess good interpersonal skills. These skills refer to the ability to establish trust and to express any information lucidly and positively. Management skills. Obviously, the project managers should be able to expertly manage the stakeholder perception and therefore have strong communication skills, motivation, and leadership skills (Dave Litten.com, 2014).[4] Change/performance curve theory and application The change/ performance curve theory presents the different stages an individual or an organisation goes through during a transition or innovation. In businesses, it helps the managemenent predict how to handle their employees and their company as a whole during the transition for the innovation. The stages are as follows: Stage 1 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Shock and denial. This stage is very critical for communication. The employees involved need information in order to understand the situation and to know that help is available. Stage 2 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Anger and fear. At this stage, the people or the organisation already starts to react to the change, actively or passively. Employees will start to express their feelings towards the transition, which is usually anger. For organisations, this stage is considered the à ¢Ã¢â€š ¬Ã…“danger zoneà ¢Ã¢â€š ¬Ã‚  as poor management at this stage can lead to chaos and project failure. Figure 1 Change/performance curve theory (MindTools, 2014). Stage 3 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Acceptance. After the à ¢Ã¢â€š ¬Ã…“danger zoneà ¢Ã¢â€š ¬Ã‚  is the à ¢Ã¢â€š ¬Ã…“turning point,à ¢Ã¢â€š ¬Ã‚  where employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢ acceptance grows and starts moving onto the success of the project. Stage 4 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Commitment. In this stage, the innovation or the change becomes natural, the employees have finalally adapted to the improvements, and the benefits of the innovation are started to get realized (MindTools, 2014). [5] Strategies for identifying obstacles and barriers Awareness and knowledge Motivation Acceptance and beliefs Skills Practicalities Strategies for minimising barriers to communication Educational materials Meetings Conferences, workshops, training Outreach visits Opinion leaders Reminder systems Organisational culture self-awareness strategies Organizational culture refers to the traditions or practices that the group has naturally developed in order to adapt with the internal and external problems, which have been successful and are therefore considered official. These are not documented but new members of the team are trained and are expected to follow. Thus, it is important to know if the existing culture is still beneficial during the transition period upto the new state after the innovation. Below are self-awareness strategies a company can use: A Need for Order and Consistency The Strength of a Culture Invent, Discover, or Develop Taught to New Members Work Well Enough To Be Considered Valid Perceive, Think, and Feel Analyzing the Process and Content of Socialization of New Members Analyzing Responses to Critical Incidents in the Organizations History. Analyzing Beliefs, Values, and Assumptions of Culture Creators or Carriers. Jointly Exploring and Analyzing with Insiders PERCIEVED KEY BARRIERS Inadequate funding Unable to keep up with current trend Our business or organization might look old fashioned Unable to invent new technology in the business Unable to expand the business Strategy Plan Getting bank loans on the new investment Joint venture with another fast growing company with least share holding Lack of effective communication Might create rumors about the organization innovation Unable to convey the fact of real innovation accordingly to public and stakeholder May interoperate wrong impression on the business reputation Strategy Plan Conduct business meeting among employees Conference with stakeholders Email blast communication Lack of resources Shortage of skill staffing Shortage of raw material aspects Skilled expatriate are too costly Strategy Plan Send internal employee for Skill Training programs Lack of leadership Lack of productivity from the team Hard to achieve organizationà ¢Ã¢â€š ¬Ã¢â€ž ¢s goal Personality clashes between Leader Team members Strategy Plan Develop a leadership training program people management Create two communication, coaching may be appropriate Stakeholder resistance Misunderstanding Low tolerance of change Different assessment of situations Strategy Plan Carried out communication of the problems Proof stability STRATEGY TO DEVELOP SELF-AWARENESS Below are self-awareness strategies a company can use: A Need for Order and Consistency The Strength of a Culture Invent, Discover, or Develop Taught to New Members Work Well Enough To Be Considered Valid Perceive, Think, and Feel Analyzing the Process and Content of Socialization of New Members Analyzing Responses to Critical Incidents in the Organizations History. Analyzing Beliefs, Values, and Assumptions of Culture Creators or Carriers.à ¢Ã¢â€š ¬Ã…“ Jointly Exploring and Analyzing with Insiders COMMUNICATION STRATEGY PLAN Group meetings. It can increase informational awareness of the barriers because of the interaction between employees and the top management ( e.g. Conferences and lectures, training sessions) Feedback. Feedbacks are always important in order to realize the opportunities for improvement that were unseen. Educational materials (booklets, CD-ROMs, DVDs). These tools can raise awareness on working the strategies to overcome the barriers. Notice boards. These have always been an easy access to information for the employees. Brainstorming. This is usually done in small groups to discover the solutions in minimizing the barriers. CRITERIA FOR EVALUATING SUCCESS The key barriers and the strategy plans for each of them are discussed earlier in this paper. The effectiveness of the strategy plans mentioned above can be measured respectively with: Investor enthusiasm. Level of awareness of stakeholders. Availability of quality resources. Well-managed team and performance levels. Stakeholder satisfaction. CONCLUSION Nimbus-Helix Furniture Co. Ltd. has been known for 10 years for their quality furniture products that serve traditional living and dining rooms. However, due to the changing fashion and lifestyles, the enterprise decided to innovate new types of furniture. The different barriers that Nimbus-Helix may encounter were discussed and are known to be mostly inevitable. However, for every problem, a different set of solutions and strategies were suggested, and with proper management and implementation, innovation success is surely achievable. Noteworthy, above everything, it is very important to have self-awareness and strong communication within the organisation. [1] Oorjabizops. (2013). Five toxic employee attitudes that should be banned from the work-place à ¢Ã¢â€š ¬Ã¢â‚¬Å" People barriers to operational excellence. Retrieved August 19, 2014 from https://www.oorjabizops.com/five-toxic-employee-attitudes-that-should-be-banned-from-the-work-place-people-barriers-to-operational-excellence/ [2] MindTools. (2014). Dealing with office politics. Retrieved on August 19, 2014 from https://www.mindtools.com/pages/article/newCDV_85.htm [3] Wikipedia. (2014). Reward management. Retrieved August 19, 2014 from https://en.wikipedia.org/wiki/Reward_management [4] Dave Litten.com. (2014). Manage stakeholder expectations. Retrieved on August 19, 2014 from https://www.pm-primer.com/manage-stakeholder-expectations/#sthash.grm5H6Gq.dpuf [5] MindTools. (2014). The change curve. Retrieved August 19, 2014 from https://www.mindtools.com/pages/article/newPPM_96.htm

Nonpolar Molecule Definition and Examples

AÂ  nonpolar molecule has no separation of charge, so no positive or negative poles are formed. In other words, the electrical charges of nonpolar molecules are evenly distributed across the molecule. Nonpolar molecules tend to dissolve well in nonpolar solvents, which are frequently organic solvents. In a polar molecule, one side of the molecule has a positive electrical charge and the other side has a negative electrical charge. Polar molecules tend to dissolve well in water and other polar solvents. There are also amphiphilic molecules, large molecules that have both polar and nonpolar groups attached to them. Because these molecules have both polar and nonpolar character, they make good surfactants, aiding in mixing water with fats. Technically, the only completely nonpolar molecules consist of a single type of atom or of different types of atoms that display a certain spatial arrangement. Many molecules are intermediate, neither completely nonpolar nor polar. What Determines Polarity? You can predict whether a molecule will be polar or nonpolar by looking at the type of chemical bonds formed between the atoms of the elements. If there is a significant difference between the electronegativity values of the atoms, the electrons wont be shared equally between the atoms. In other words, the electrons will spend more time closer to one atom than the other. The atom that is more attractive to the electron will have an apparent negative charge, while the atom that is less electronegative (more electropositive) will have a net positive charge. Predicting polarity is simplified by considering the point group of the molecule. Basically, if the dipole moments of a molecule cancel each other out, the molecule is nonpolar. If the dipole moments dont cancel out, the molecule is polar. Not all molecules have a dipole moment. For example, a molecule that has a mirror plane wont have a dipole moment because the individual dipole moments cant lie in more than one dimension (a point). Nonpolar Molecule Examples Examples of homonuclear nonpolar molecules are oxygen (O2), nitrogen (N2), and ozone (O3). Other nonpolar molecules include carbon dioxide (CO2) and the organic molecules methane (CH4), toluene, and gasoline. Most carbon compounds are nonpolar. A notable exception is carbon monoxide, CO. Carbon monoxide is a linear molecule, but the electronegativity difference between carbon and oxygen is significant enough to make the molecule polar. Alkynes are considered nonpolar molecules because they dont dissolve in water. The noble or inert gases are also considered nonpolar. These gases consist of single atoms of their element, such as argon, helium, krypton, and neon.

Anglo American Dissatation Free Essays

string(158) " plan was created to improve the relationship between the board and management, which could have helped reduce the conflicts of interests and agency problem\." Introduction Anglo American Plc is a mining conglomerate and is one of the largest companies within the mining industry. It originally started in 1917 as a gold mining company going by the name of Anglo American Corp; the name was created when the initial starting capital of ? 1million was raised from U. K. We will write a custom essay sample on Anglo American Dissatation or any similar topic only for you Order Now and U. S. sources (Forbes 2006). In 1999, following a major strategic review, Anglo American merged with Luxembourg headquartered Minorco to form Anglo American Plc, with its primary stock exchange listing and head office in London and secondary listings in Johannesburg, Switzerland, Botswana and Namibia (Anglo American 2012d). Anglo American â€Å"operates in Africa, Europe, South and North America, Australia and Asia† and is a global leader in the mining of both platinum and diamonds (Anglo American 2012c). They employ approximately 100,000 people (Anglo American 2012c) across the world, both in the mines and in local offices, with the majority of employees being based in South Africa, 79,000 (Anglo American 2011). Anglo American employs 10,000 people in South America, which is the second largest proportion of employees in the company, and employs 11,000 people in other countries across the globe (Anglo American 2011). South Africa produces the highest amount of revenue by origin, $17,855million in 2011, which accounted for 49% of the group’s total revenue for that year (Anglo American 2011). When comparing all the countries’ revenue for the year, South Africa has a very dominant position, as all the other countries have less significant revenues of $5,058million or lower (Anglo American 2011). This suggests that South Africa is the main country for production. They have a highly diversified mining portfolio, comprising of many metals and minerals. In 2011, Anglo American increased their shareholding to 85% in the world’s leading diamond company, De Beers (Anglo American 2012a), which accounted for 6% of the share of Anglo American’s operating profit in 2011 (Anglo American 2012c). The company employs 16,000 people in the diamond division, in North America and Africa, which is the second largest percentage of employees across the group (Anglo American 2011). Another subsidiary of Anglo American is Anglo American Platinum Ltd. AAP), of which they own 80% and employ 55,000 people, which is the largest proportion of employees across the company, 55% (Anglo American 2011). AAP is the main producer of platinum in the world, accounting for 40% of the global supply (Anglo American 2012c). Iron ore is the most predominant area of Anglo Americans operating activities with the largest share of the group’s profit in 2011 of 41%, $4520Million (Anglo American 2011). This is significant in comparison with the second high est area of operating profit, copper, which attributed to $2461Million, 22%, of the operating profit. Anglo American also produce metallurgical and thermal coal, nickel and other materials, which, although contribute to the company’s profits, are less significant in comparison to the more major operations of diamond, copper, iron ore and platinum. Anglo Americans main corporate aim is to, â€Å"be the leading global mining company becoming the industry’s largest employer, partner and investment of choice† (Anglo American 2012f). They believe a â€Å"sound strategy, sustainable development and good corporate governance are essential to achieve this goal†. (Anglo American 2012f) Methodology At the first meeting, the group decided that the company study was to be worked on two days a week and a table was drawn up in order to manage the time efficiently to ensure the deadline was met. The table comprised of a ‘plan’ and ‘achieved’ column for each date during the weeks leading up to the deadline of 14th December, see Appendix A. After the first meeting, the group went away to do some individual brief research on the given company in order to get background knowledge of Anglo American and so the in depth research for each section could be carried out at the next meeting. In order to make the most of the time given, the group was divided so that each of the main sections were researched thoroughly in order to give a more detailed report. The group followed the recommendations, allowing a third of the time to carry out research, a third on writing up the report and a third on editing and producing the final piece. After the research had been carried out on all sections, different members of the group began writing up different sections of the report using the information previously obtained. The group then looked over each other’s sections in order to make sure all relevant information was included, to check for grammar and spelling mistakes and to make sure enough references had been used. This was important to ensure all members had a good understanding of each section. Anglo American’s website and annual reports were the main source of information for the company study. The issues surrounding Anglo American during the past year allowed for many relevant news articles to be widely available for use within the financial management section. After the report had been completed, the group booked weekly sessions in the Techno booths with print outs of the completed report, to ensure all members of the group were familiar with all sections. The presentation was then brainstormed and the main points put on a PowerPoint, which then allowed for the presentation to be practiced over a couple of weeks prior to the deadline. Many rehearsals of the presentation were carried out to ensure it filled the time allocation required and it flowed well. Problems occurred with the methodology closer to the deadline, as members of the group had less spare time to work on the company study, due to other assignments being due in around the same time. Financial Accounting Corporate Governance As a global organisation it is crucial that Anglo American complies with the highest standards of corporate governance, to ensure any agency problems within the company are minimised and the company is well run. Anglo American aims to â€Å"direct and control its company in a transparent and accountable way. † (Anglo American 2012f). From the 2010 board effectiveness review, an action plan was created to improve the relationship between the board and management, which could have helped reduce the conflicts of interests and agency problem. You read "Anglo American Dissatation" in category "Essay examples" The action plan was to Increase contact between directors and management between board meetings and â€Å"Introduce more ‘free flowing’ informal discussions outside board meetings – the pre-board meeting dinners will be more ‘structured’ whilst retaining an informal style† (Anglo American 2011). In 2011, this action plan was reviewed and changes within Anglo American were made. The flow of management information to the Board was enhanced and the frequency of dissemination of this was improved. † â€Å"Structured board dinners also took place during the year where matters such as strategy were discussed† (Anglo American 2011). This shows good corporate governanc e by Anglo American as areas of the business which need work are being identified by the company and being acted upon accordingly to improve the effectiveness and control. The Anglo American board is chaired by Sir John Parker and consists of two executive and eight non-executive directors. 0% of this board it made up by women, this suggests that the Anglo American board could be more diverse. In the current business economy, â€Å"Regulators, politicians and shareholders are each stepping up pressure on companies for greater board  diversity  as part of a drive for better governance† (Robertson 2012). The Lord Davies Women on Boards report set a target of 25% minimum of board members to be female by 2015. Anglo American stated in their annual report their â€Å"intention to increase the representation of women on the Board from 20% to about 30% by 2013† (Anglo American 2011), which is two years below the national expectation. This is an example of good corporate governance by Anglo American as it is adhering to policies and targets which are not compulsory and also has disclosed in its annual statement, its future intentions to increase diversity in the boardroom. Anglo American also has a nomination committee which â€Å"aim is to build on the existing diversity of the board by identifying and nominating suitably qualified candidates† (Anglo American 2011). This is viewed as being good corporate governance by the company as Anglo American is making sure before directors are appointed that they are right for the job and the best candidate is chosen. To do this, they are considering both men and women for the job roles which is widening the talent pool. The Government passed the UK Bribery Act 2010, under this act the â€Å"defence  for a company against this liability is to prove that it had ‘adequate procedures’ in place to prevent bribery† (Wilkinson 2010). To comply with this act, Anglo American have implemented the necessary procedures to ensure that its business integrity policy operates effectively, so the risk of bribery is minimised as far as possible (Anglo American 2011). During the year, Anglo American developed enhanced guidelines on the acceptance and provisions for gifts and entertainment and provided specific guidance on the procedures to be followed where risks were considered higher. This is a good example of corporate governance as this would reflect positively for shareholders and potential investors, as new laws are being adhered to. In accordance with the UK Corporate Governance Code, Anglo American continue to propose the re-election of all its directors on an annual basis (Anglo American 2011), which ensures good corporate governance, as directors will always be of the highest quality possible. Within Anglo American â€Å"The Audit Committee plays a pivotal role in ensuring high standards of corporate governance and provides assurance to the Board on its reports to shareholders† (Anglo American 2011). In Anglo American, the audit committee comprises of four independent non-executive directors. The audit committee is also charged with reviewing the results of the key risk management process, â€Å"being involved in the risk management procedures of the company† (Anglo American 2011). However, to improve the governance in this area Anglo American could disclose the main risks to the company and the strategy it has in place to deal with these risks. The Audit committee is also responsible for the whistleblowing programme which the group has had in place for a number of years. It â€Å"is designed to enable employees, customers, suppliers, managers or other stakeholders, on a confidential basis, to raise concerns in cases where conduct is deemed to be contrary to our values† (Anglo American 2011). This shows good corporate governance as there is a programme which has been set up by the group where stakeholders, can report failures and discrepancies within the company, to independent non-executive directors. However, Anglo American could disclose the procedures which are to be followed when issues are reported. Within Anglo American, the board delegates certain responsibilities to a number of committees; these include the Remuneration committee, Nomination committee and Audit committee. In coherence with the UK combined code of corporate governance there â€Å"should be a formal and transparent procedure for developing policy on executive remuneration and fixing individuals director’s remuneration packages, no director should be involved in deciding their own remuneration† (FRC 2012). Anglo American’s remuneration committee seeks advice from external advisers Pricewaterhouse Coopers LLP, Linklaters LLP, Mercer Limited and Deloitte LLP, to help determine the director’s remuneration packages. Anglo American describes its policy as being â€Å"formulated to attract and retain high-calibre executives and to motivate them to develop and implement the Company’s business strategy in order to optimise long-term shareholder value creation† (Anglo American 2011). The remuneration mix is an important part of good corporate governance as it ensures that the company has an appropriate blend of basic and performance related pay as the remuneration committee will see as suitable. This will ensure that the directors will strive to achieve the main goal of increasing shareholder wealth. At the present time, director’s remuneration is calculated on the industry median for the mining sector and is adjusted by the director’s performance and experience. Anglo American could improve their corporate governance by setting director’s remuneration packages at the industry averages only. Within Anglo American, each executive director’s total remuneration consists of basic salary, annual bonus, long-term incentives and benefits. This ensures that an appropriate balance is maintained between fixed and performance-related remuneration (Anglo American 2011). However, the sheer value of some of the bonus packages is likely to affect shareholders wealth and the willingness for potential investors to invest. An article from the Telegraph explains that the chief executive of Anglo American was handed a 38 per cent increase in pay last year, with a total package worth ? 2. 17m, however the cash element of her annual performance bonus was increased by 134 per cent to ? 962,000. Never the less, at this time shares in Anglo American fell by 14 per cent over the course of 2011 (White 2012). This could be viewed as bad corporate governance by the company as despite the share price falling the chief executives pay has been dramatically increased. To help the directors ensure they have a meaningful stake in the performance of the company, in 2004 the remuneration committee devised a Bonus Share Plan (BSP), â€Å"which requires executive directors to invest a significant proportion of their remuneration in shares† (Anglo American 2011). This demonstrates good corporate governance, as it aligns the directors’ interests with that of the shareholders, reducing the agency problem. The bonus share plan also weakens independence of the directors within the company, as it is giving them greater interest within the company on a personal level. Training is offered to new directors in order to develop a comprehensive view of Anglo American’s company, continuous training is also available to directors throughout their employment. However, the governance could be improved by disclosing in the annual report the nature and the schedule of the training, so the stakeholders know what is being covered in the induction training. Within the annual report for Anglo American there is a statement of director’s responsibilities, which sets out what is expected of the directors. The board should present a balanced, true and fair view of the company’s position and prospects. Under company law the directors should not approve the accounts unless they are satisfied that they give a true and fair view of the affairs of Anglo American. This shows good corporate governance from the company as in the annual report it breaks down the directors responsibilities, however this could be improved by giving details to the users of the annual reports about what responsibilities each director has. A breakdown of the separation of roles between the chairman and director could also be disclosed in the annual report, which will ensure that one person is not given too much power which could prove to be very risky for Anglo American. The skills and knowledge of all the board members are summarised in the annual report, to give the shareholders and stakeholders an idea of their previous experience and the wealth of knowledge they bring to Anglo American, which shows good corporate governance by the company. Overall Anglo American shows good corporate governance with compliance to the UK combined code of corporate governance. The company has disclosed majority of information but could improve by disclosing the strategies in place, especially for the risk management prospective and its whistleblowing and training schemes. Stating the responsibilities of the chairman and chief executives would also ensure that corporate governance is being applied at a continuous high level. Stakeholders UK corporate law requires companies to be principally accountable to their shareholders. However, Anglo American believe that their shareholders’ best interests are served when the company makes sure all appropriate stakeholders are kept happy, not just the shareholders (Anglo American 2011). It is in all stakeholders’ best interests that the company not only survives, but flourishes long term, Anglo American therefore seek to be the partner of choice for its stakeholders by operating in a way that is acceptable to them all (The Times 2012a). Anglo American needs their stakeholders to support them in order to meet the organisations objectives’, for example treating staff well and respecting local communities, will make it easier to recruit new people necessary for growth. In the long term, this will create more value for shareholders. Employees are possibly the most important stakeholder for Anglo American, employing approximately 100,000 people around the world (Anglo American 2012c), however working within the mining industry has been voted one of the top ten most dangerous jobs (Korch 2012). To help protect this stakeholder group, Anglo American has adopted strict health and safety regulations which are outlined in the safety way, ensure that employee’s working conditions are as safe as they can possibly be. The safety way is a comprehensive framework of roles and responsibilities supported by a set of safety principles and mandatory safety standards† (Anglo American 2012b). The strategy outlines Anglo American’s risk-based approach to safety based on ten key factors that support effective safety management; leadership, risk management, culture, competence, assurance, monitoring, planning, standards, communications and learning (Anglo American 2012b). Employees in management positions are also seen as stakeholders within Anglo American, as they are esponsible for making key business decisions within the company and without the relevant information they will not be able to make reliable decisions. Unions are a very important stakeholder for Anglo American as they try to make the employees’ time whilst working for Anglo American as safe and as beneficial as possible. Previously, Anglo American have clashed with unions and issues have been raised, as seen in The Telegraph (2011), resulting in negative media interest and damaging the reputation of the company (White 2011). This, in turn, has a negative impact on all stakeholders within the company. In 2010, Anglo American received an â€Å"Employer incentive award for good performance† due to their â€Å"sound labour relations with trade unions, as well as the implementation and enforcement of sound occupational health and safety practices and initiatives† at the South African trade unions solidarity awards for 2010 (Anglo American 2012k). Examples of some of the trade unions that are recognised within Anglo American are The National Union of Metalworkers of South Africa, The National Union of Mineworkers, The United Association of South Africa and The Togetherness Amalgamated Workers Union of South Africa. Activist groups can be classed as stakeholders, as mining involves using the world’s natural resources and in some cases can lead to long term damage to the environment. Such groups are passionate about protecting the environment and if they feel that Anglo American are not protecting the environment enough, they put pressure on the company. On 28 Sep 2012, War on Want released an article discussing the miner’s strikes in South Africa and the poor working conditions of the employees (War on Want 2012). This could create negative publicity and disrupt operations, therefore affecting shareholder wealth. In response to these activist groups, Anglo American has recently developed a Socio-Economic Assessment Toolbox (SEAT) as a means of further improving the impact of its activities, e. g. setting up training programmes for local communities (The Times 2012b). The contractors that work on the various sites across the globe are also seen as stakeholders within Anglo American, as they carry out the majority of the work on civil engineering projects, such as digging new mines. Contractors are important stakeholders in Anglo American as they have a lot of responsibilities when undertaking projects and if these are not carried out properly, then problems can arise. If quality standards were compromised, due to disillusioned contractors, then this could have health and safety consequences in the future. Contractor management is also an important consideration when using contractors as external stakeholders, for example local communities may accuse Anglo American of poor social performance associated with these contractors. This is the reason that the social impact of contractors on the local area is managed professionally. Customers are a vital stakeholder within Anglo American, but due to the nature of the industry, the majority of Anglo American’s customers are countries, â€Å"China is a key customer of Anglo American’s products† (Anglo American 2012m). Anglo American has many different key performance indicators (KPI), divided into investing in world class assets in the most attractive commodities, operating safely, sustainably and responsibly, employing the best people and organising efficiently and effectively (Anglo American 2011). One of the main operating KPIs is the work related fatal injury frequency rate (FIFR). FIFR is calculated as â€Å"the number of fatal injuries to employees or contractors per 200,000 hours worked† (Anglo American 2011). This information is most relevant to the employees of Anglo American, and the unions representing them, as they are the ones who are directly affected by the injuries of co-workers. The FIFR for 2011 shows a small increase in fatalities from 15 to 17, however, in 2009 there were over 50 fatalities which shows that Anglo American is implementing the correct strategies in order to minimise these fatalities. Despite the downward trend, Anglo American targets 0 fatalities, showing that Anglo American show a keen interest in their employees’ welfare. Another operating KPI is the lost time injury frequency rate (LTIFR), which is the amount of lost time from injuries (LTIs) per 200,000 hours worked (Anglo American 2011). An LTI is an injury which leaves the employee unable to perform their regular duties for a the period after the injury was incurred (Anglo American 2011). If Anglo-American have a higher FIFR or LTIFR than the industry average, it may put off possible employees from applying for a position, which could result in the company not being able to employ the most knowledgeable people, which can have a negative impact on shareholder wealth. Another operating KPI is greenhouse gas emissions which is measured in CO2 equivalent emissions (Anglo American 2011). Environmental activist groups, such as Greenpeace, are likely to be interested in this key performance indicator as greenhouse gases are very harmful to the atmosphere and have been linked with global warming. The annual report from 2011 shows a reduction in Greenhouse gas emissions than in 2010, signifying that Anglo American are moving in the right direction in terms of reducing their carbon footprint. Total water use is another operating KPI and includes water used for primary activities, which affect the people who live in the area surrounding the mine. Some of the regions that Anglo American work in, have sparse water supplies and therefore any water used by the company may result in less water for the local communities. Reducing this KPI is important to Anglo American, as if this is not managed it may put off potential employees within these communities from applying for a position within the firm, and may give Anglo American a bad reputation. The final key operating KPI is Enterprise Development, which is is defined as the number of companies supported and number of jobs sustained by companies supported by Anglo American enterprise development initiatives (Anglo American 2011). The stakeholder that is most closely linked to this key performance indicator would be the local community in which Anglo American operates. Results from this KPI show that Anglo American is currently supporting 38,681 businesses which is much higher than their target of 3,500 businesses (Anglo American 2011). A key KPI relating to employing the best people is voluntary labour turnover, which is the number of permanent employee resignations as a percentage of total permanent employees (Anglo American 2011). In 2011, the percentage of employees who resigned was 3% which shows a decrease of 2. 3% from the previous year (Anglo American 2011). This shows the company is striving to improve employee morale and employee working conditions. This KPI is important for the employees of the company, as it indicates the number of people who may have been unhappy within their work. An important employment KPI in recent times is gender diversity, which represents the percentage of women and female managers employed by Anglo American (Anglo American 2011). In 2011, the group managed to increase the percentage of female employees from 14% to 15% and the total number of female managers from 14% to 21%. This KPI can be linked to both the employees and unions of the company, as both want to make sure Anglo American has equal opportunities for both genders in order to create a harmonious working environment. The first â€Å"organising efficiently and effectively† KPI is asset optimisation, which is defined as the sustainable operating profit benefit from optimised performance of the asset base of the core businesses (Anglo American 2011). An asset optimisation strategy is comprised of asset management and asset monitoring and a well organised strategy can reduce avoidable maintenance and interruption times. Managers of Anglo American will be interested in an effective asset optimisation strategy, as it will allow them to make effective decisions with regards to the best method of maintaining and using the company’s assets. The other organising KPI is the supply chain, which is the â€Å"operating pro? t and capital spend bene? ts to Anglo American resulting from centralised procurement from core businesses† (Anglo American 2011). An effective method of managing the supply chain is by local procurement, as it saves transport costs by supplying across the world. Therefore, managers of Anglo American will be interested in this KPI as it allows the company to build relationships with key contractors/ suppliers that can produce mutually beneficial outcomes. The results for the most recent financial year show an improvement to the supply chain of $472 million from the previous year. In the annual report Anglo American also have a section of investment KPI’s, these include return on capital employed and underlying earnings per share. The results from the annual report show an increase in both KPI’s from 2010 to 2011, 24. 8% to 26. 5% and $4. 13 to $5. 06 respectively. Investment KPI’s are only relevant to shareholders. It enables shareholders to check how well Anglo American generates profit from the capital invested and provides them with a comparison to the previous year. Despite the fact that Anglo American has a fairly extensive list of key performance indicators, there are other factors that have not been accounted for that would benefit the company’s stakeholders. Antofagasta Plc. , another company within the mining sector, uses operational KPIs that state the volumes of the most important metals that has been mined during year and compared with previous years (Antofagasta 2011). Anglo American could create this form of KPI to ensure they increase the level of production for the most important materials each year, which would be useful to the majority of stakeholders as they would be able to see how much the company has expanded its’ production over the year. Contractors would be able to use this information to estimate how the level of production will increase over the following year to put aside enough resources in order to carry out any projects that Anglo American may have in the future. London Mining Plc. ave a KPI for number of employees trained, which gives the number of people who have undergone professional training within the year (London Mining 2011). Anglo American could use this as one of their KPIs to show whether the management have executed the relevant training schemes for employees. Customers would be the most likely stakeholder to benefit from this KPI, as if there is a high number of people that have been professionally trained, it implies that their staff are trained to the highest standard and will have the correct knowledge needed in order to carry out best practice. Employees would find this information useful to determine whether they might be entitled to be given professional training by the number of employees put on schemes within the year. hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh Financial Management Figure 1 shows Anglo American Plc. ’s share price performance over the period 1 January to 30 September 2012 and the FTSE All Share performance. After analysing, it can be seen that both share price, and average share price of the FTSE All Share, have considerably similar movements over the given period with Anglo American’s share price being more erratic. [pic] On 6 January, Anglo American shareholders approved the change of holding from 45% to 85% of De Beers at the company’s general meeting. During the meeting the chairman voiced his expectations for an increase in shareholder value due to the expertise and leadership of De Beers (Anglo American 2012a). This shareholder approval was expected to result in an increase in demand for shares, which is represented by the increase in share price between 9 January and 23 January. This movement in share price seems to be autonomous from the FTSE All Share which would aid our analysis of this particular period as the event is internal to Anglo American. On 26 January Anglo American released their production report for the 4th quarter in 2011. Initially, the share price dropped from ? 27. 37 on 26 January to ? 26. 35 on 30 January which could have been due to the decrease in diamond and platinum production. This area of production is what the company is best known for, so a decrease in production of these would initially deter investors and create doubt for shareholders. Between 30 January and 3 February the share price shot up by ? 2. 5 which signified that the shareholders had looked into the report further to see that the production of all other materials had increased, including nickel production increasing by 125% from the previous year (Anglo American 2012). From figure 1, it can be seen that this increase is reflected in the movement of the FTSE 100 which could suggest that there may be external factors also affecting Anglo American at this time. On 23 March, Anglo American sold a â‚ ¬750m 10 year euro bond which could have been due to funds being needed more within the company (Euroweek 2012). Investing in the euro bond may have been to help create or strengthen values of the company, especially within Europe at this particular time of the European Sovereign Debt Crisis. As shown on figure 1 between 23 March and 29 March the share price fell dramatically. This could be due to shares being sold by shareholders that primarily invested in Anglo American, as they supported the Eurozone. On 1 June, Anglo American re-entered the euro bond market which â€Å"several bankers speculated that they returned out of prudence† Euroweek 2012). The share price shot back up, which could have been caused from the amount of demand for the deal, this suggested investors were pleased to see Anglo American again. Anglo American was in talks with Peru on 29 June in relation to a potential local sustainable development to accompany a mining project in the region, and had proposed a $118 million investment (Guerra 2012). $36. 9 million of the investment was budgeted to install a pumping sys tem in to two of the country’s rivers (Guerra 2012). The fact they are supporting and helping Peru is a sign of good corporate social responsibility for shareholders and potential investors which resulted in a ? 0. 66 increase over 4 days. Between 10 August and 30 August, there is a noticeable decrease in the share price which would seem to be an internal factor as the FTSE All Share does not seem to follow suit during this period. An outside article was realised on the 10 August stating that Anglo American were dismissing claims that a shareholder spring was expected to occur which was broadcasted in the Telegraph (2012). The article in the Telegraph (2012) stated that shareholders had contacted Sir John Parker, Chairman of Anglo American expressing their dissatisfaction with the CEO, Cynthia Carroll. Sir John parker sided with the CEO which fuelled the shareholders to take their complaint to one of the company’s directors. This highlighted to the shareholders the lack of support they were receiving, which therefore could be the internal factor forcing the share price down. When comparing Anglo American with other companies within the mining industry, the movements in the FTSE share price are mirrored more closely by Antofagasta than Anglo American, which may suggest that their beta is closer to 1. [pic] Throughout the period analysed, the share price movements for Anglo American is quite volatile in comparison to the FTSE All Share. Between 2 April and 7 June, the movement in share prices between both Anglo American and The FTSE is extremely similar with Anglo American’s movement being more responsive. This could signify that external factors affecting the whole market have affected Anglo American the same way but at a more severe rate, this is shown by their beta of 2. 08, see Appendix C. With the FTSE having a perfect market beta of 1 the beta value of Anglo American is in perfect correlation with the movement of share prices, see Appendix B, as in the majority of places the movement is the same but double as volatile. With the beta value being considerably higher than 1, shareholders or investors are likely to be risk seeking rather than risk averse. The further away from 0 the beta value is, the lower the shareholder value, but the potential for a high return is there. As seen in the London Business School Risk Measurement Services publication the commercial betas for the 3 quarters up to September 2012 are of a similar value, see Appendix C, with the average being 1. 55. This is significantly lower than our calculated beta of 2. 08. However the â€Å"Risk Measurement Service uses estimates based on an analysis of variable factors, and is therefore no way guaranteed† (London Business School 2012), whereas the beta of 2. 8 was calculated based on weekly data taken from Thomson Analytics. Although the beta of 2. 08 is the less favourable one, it is the more accurate out of the 2 so will give a better indication of shareholder value and the risk an investor may take. Both betas are aggressive in relation to the market beta however the commercial calculation is less so. Unless a serious investor were to calculate the beta the mselves, using actual data for the company, they would be likely to base an investment decision on estimated inaccurate beta values. A shareholder’s decision to invest can be influenced by another confounding variable, the company’s investment rating. There are 3 main investment ratings that stakeholders use and rely upon these are Moody’s, Standard Poor’s (SP) and Fitch. Anglo American are rated on Moody’s with a long term investment rating of Baa1 and the equivalent long term rating on SP of BBB+ which is noted to be a lower medium grade of investment. SP define their BBB+ rating as the company having â€Å"adequate capacity to meet financial commitments, but more subject to adverse economic conditions† (Standard and Poors 2012). Although Anglo American’s ratings could be higher they seem to be in a good stable financial position and therefore an attractive investment for potential shareholders. The short term ratings for Anglo American are of a slightly better position than the long term ratings, with Moody’s being P-2, which implies they â€Å"have a strong ability to repay debt obligations† (Moody’s 2009). This shows the company is fairly liquid giving reassurance to shareholders because if the company was to enter default there would be a higher chance of shareholders getting a return. The SP credit rating for Anglo American was the same in 2011 as in 2012 with a long term rating of BBB+ and a short term rating of A-2 for both. This gives investors the security of Anglo Americans stable credit rating and in turn ability to pay off debt. Although investment ratings can be used to help determine whether to invest or not they should not be relied upon, as companies with the same rating do not have absolutely equal credit quality. It does not take into consideration external factors such as a change in money rates and it ignores the length of maturity. Dividends |2011 |2010 | | |($) |($) | |Interim dividend |28 |25 | |Recommended |46 |40 | |final dividend | | | |Total dividends |74 |65 | Anglo American has a clear dividend policy in which a base dividend will either be increased or maintained from year to year (Anglo American 2011). An interim dividend of 28 US cents per ordinary share was paid on 15 September 2011, and for the 2011 financial year â€Å"The Board proposes a final dividend of 46 cents per share, giving a total dividend for the year of 74 cents, a 14% increase† (Anglo American 2011) see figure 3. During the year the Group paid dividends of $818 million to company shareholders, which is a huge increase on the $302 million paid out in 2010, and $1,404 million in dividends to non-controlling interests. Based on shares eligible for dividends at 31 December 2011, this will result in an estimated distribution of $557 million of shareholders’ funds, of which $350 million will be distributed by the parent Company. The interim dividend for 2012 has increased by 14% to 32 cents per share, which continues their policy of a base dividend being slightly adjusted after discussion to ensure the maintenance of their investment grade rating (Anglo American 2012n). Dividends are proposed to be paid out in cash and not scrip issues therefore the $557 million will be shown on the balance sheet, therefore affecting cash flows. Anglo American have a fairly attractive dividend yield of 3. 32% in 2011, when compared with other mining companies within the FTSE 100, see Appendix D. From the four companies analysed the dividend yield has increased from 2010 to 2011, apart from BHP Billiton. This suggests that either companies are issuing a higher divided or the value of shares has dropped. In Anglo Americans case the share price has fallen over the given period, but the annual dividend has also increased. As a percentage of earnings the dividend for 2011 was 14. 51%, which had increased from 11. 97% in 2010. Considering the high capital investments that Anglo American commit themselves to, this is fairly good proportion of earnings attributable to shareholders. The optimum dividend policy would offer shareholders a constant, steady dividend paid at regular intervals now rather than later; this is exactly what Anglo American has to offer. However due to the Group’s aggressive investment plans for future growth, which includes three major projects; Barro Alto, Los Bronces and Kolomela, the constant regular dividend policy is likely to cease or at least come under discussion at board meetings. Shareholders have questioned the decision to invest money into these projects, CEO Cynthia Carroll has announced that the 3 projects and another one expected to commence in 2013 will contribute $6bn to dividend pay-outs. Although the expected change in dividend policy has undoubtedly caused controversy with shareholders, the company has proven that investment into new projects is necessary to maintain a high profit and continue to pay a regular dividend in the future (Vuuren 2011). Over the past few years Anglo American have had a strong, fairly positive balance of debt and equity, which has allowed them to have the flexibility to attain more finance when necessary. Net debt at 30 June 2012, including related hedges, was $3,124 million which was an increase of $1,750 million from the net debt at 31 December 2011. Net debt at 31 December 2011 comprised $12,873 million of debt, partially offset by $11,732 million of cash and cash equivalents (Anglo American 2011). However a dramatic net debt decrease of $6,010 million occurred from 31 December 2010 to 31 December 2011 which reflects strong operating cash flows and proceeds on the disposal of 24. 5% of Anglo-American Sur (Anglo American 2011). Anglo American is funded mainly by equity as shown by the debt and equity ratios in Appendix D. At 30 June 2012 for every $1 of capital invested by the shareholders $0. 655 is funded through debt, which is a slight improvement on the debt equity ratio of 0. 677 at 31 December 2011. The ratios indicate that the group should easily be able to generate enough cash to satisfy its debt obligations as the group has enough room to manoeuvre its current levels of finance. It is important that a company’s debt-equity ratio is not too high as this can lead to increased interest payments and an enlarged risk of damaging their credit rating. This is perhaps the reason that the group made efforts to decrease the debt-equity ratio from 31 December 2010 from which it was 0. 755. Anglo American has a sound equilibrium between debt and equity as seen by the gearing calculations in Appendix D. Over the past two years, the figure has increased gradually from 45. 71% at 30 June 2010 to 50. 30% at 30 June 2012, which could be due to an increase in long term liabilities. The market value of equity has also increased but at a slightly lower rate, causing the gearing ratio to increase steadily. However, the value of equity is based on the market value of the shares at 30 September 2012 for each of the three years to ensure a more accurate comparison, so when considering each year in turn, it would not show the true value of gearing. Figure 3 shows the comparison of the percentage of gearing compared with the percentage of gearing using the market value of equity. Both show a similar pattern with gearing gradually increasing over the two years, but a steeper incline for the gearing based on the share price at that year. This could be a result of the share price dramatically decreasing from 25. 26 at 30 September 2010 to 18. 17 at 30 September 2012, in turn giving a lower value of equity when using the market share price. Calculating the gearing using the share price at that time, rather than the market value today, shows the gearing in a way that the company would have wished to portray. Overall, it can be seen that the share price movements of Anglo American Plc. generally follow the market trend, signalling that external factors are the main influence on any change in share price. The erratic behaviour of Anglo American’s share price makes an investment in this company quite risky. For example a variation in the market share price due to a change in regulation is likely to have more of an effect on Anglo American as their beta value is 2. 8. To lower the risk they could strengthen themselves against external factors by introducing or improving their internal control systems, minimising their exposure to the external environment and in turn lowering their beta. The beta of Anglo American demonstrated by how the share price movement is generally the same as the market but exaggerated, which sh ows that it is an aggressive beta. When comparing with other companies in the mining sector Anglo Americans beta value is higher than most but not an anomaly, see Appendix C. All the companies within the mining sector in the FTSE 100 have a beta value higher than 1, making them all aggressive, risky investments, with Anglo American being one of the more risky options. Anglo American may seem quite risky when using the beta, however when considering this alongside the company’s gearing it could be considered as an attractive less-risky investment. Anglo American’s gearing is fairly average, but it could be improved by minimising the amount of debt that contributes to the company’s finance, also decreasing the debt equity ratio. Although the company may be seen as becoming increasingly highly geared, they are constantly investing in new projects to increase shareholder wealth in the long term, which makes the level of gearing more acceptable. Anglo American’s investment rating is fairly high on Moody’s credit rating table, which shows there are signs for improvement but also space for fault. The rating is based on many confounding variables, with Corporate Governance having a major influence on the overall rating. Although Anglo American has demonstrated fairly good corporate governance, there is still room for improvement in many areas. Another variable that could affect the rating is the dividend policy on offer to shareholders. Anglo American offer a very attractive policy with a base amount and regular payments, which is the optimum option for shareholders, as they know what to expect and when to expect it. After taking into account all aspects of the financial performance of the company, an investment in Anglo American would be recommended for a risk seeking investor expecting regular dividend payments. Anglo American is a worthy investment, as they have a number of new projects ined up for the future and have proven to have had huge success with previous projects, leading to satisfied shareholders. However, the value of Anglo American has declined over the period analysed, with the share price falling from 22. 29 to 18. 17, but this is forecast to increase over the near future due to all the projects recently invested in. If the global economy was to enter a double dip recession, Anglo American is not likely to be affected much by this, due to the strong commodity values and derivatives. Strategic Management Anglo American is currently one of the world’s top mining companies and has held this position for a number of years. Their main goal is to be the â€Å"leading global mining company, becoming the investment, partner and employer of choice† (Anglo American 2012f). A way in which Anglo American wish to become the global leading mining company is to outperform competition, by their structure of organising efficiently and effectively (Anglo American 2012l). They aim to achieve this from being more focused and performance orientated, and believes their Asset Optimisation (AO) programme will help to do this (The Times 2012). Anglo American wanted to enhance the health and performance of their operations, so designed an Asset Optimisation programme in order to achieve a holistic approach to this. It has allowed a more open working culture giving employees the encouragement to not only work together but contribute their own ideas to improve the business. A major contributor from the AO programme, that has added value across the group, is the development of the programme, in which it has been introduced into the day-to-day business of Anglo American. This programme has added value and strength to Anglo American as to date they have saved well over their target of $1 billion from their core operations and hope the strategy continues to present positive outcomes in the future (The Times 2012). To improve efficiency, each individual area of production is focused on lowering its costs, such as lowering excessive waste or managing the usage of natural resources. Water is vital to Anglo American in order to carry out their operations and also for the communities around them, especially as some areas are the most ater-stressed regions in the world. To reduce water usage, a 10 year strategy is in place which involves making projects water resilient, investing in new technology and building water infrastructure. By 2030, Anglo American hope to have reached the strategic objective of zero net water consumption. Not only does this strategy improve the efficiency of production, it also engages with stakeholders, which in turn benefits the co mmunity (Anglo American 2012l) and will reduce the agency problem between directors and the local population. Investment is a strong part of Anglo American’s strategy, and they feel that the investments they have made into large scale assets, with long life cycles, have given them a clear advantage through the low costs attached to them. The commodities that Anglo American specialises in are those that they believe hold the best returns over a long period of time, and even during the fluctuations that occur over an economic cycle. Anglo American also offers derivatives of their commodities which is a good strategic decision for them to take, in the sense that they are guaranteed a certain level of return for those derivatives. However if the demand and in turn the price dramatically rises for those commodities Anglo American could receive lower than the market value at that time. Therefore the option to offer derivatives not only allows for the opportunity of stability for an agreed amount of income, but also the threat to lose out on an increase of market value of that commodity. Operating safely, sustainably and responsibly is embedded in everything† (Anglo American 2012l) that Anglo American does. Employee safety is a huge part of any decision made by the company and they are persistent on reaching their goal of zero harm. The 5 years prior to Cynthia Carol becoming Anglo Americans CEO there was a total of nearly 200 fatalities, whereas the 5 years following her position as CEO the number of fatalitie s dropped to 77. This could be down to the change in strategy and how the importance and safety of employees was considered invaluable to Cynthia; this was demonstrated by her drastic decision in 2007 to close the Rustenburg mine instantly due to the risky nature of it (Carroll 2012). The health and wellbeing of employees was taken a step further when HIV/AIDS and general healthcare services were not only provided to employees but also their dependents, spouses and other stakeholders. This has been recognised as world class and has received a number of rewards for it, ‘The Business Excellence Award for Best Workplace Program’ being one of many (Engineering Mining Journal 2009). Minimising the effect that their operations have on the environment is something that Anglo American also considers in detail. Over the years Anglo American have received a number of awards that prove their commitment to the environment, in 2011 they received the three out of four awards at the ‘Three Nedbank Capital Green Mining Awards’. They were recognised for their rural research project at Sishen mine where management decisions were aligned with the long term sustainability objectives of the Taolo Gaetsewe District and the surrounding region (Nedbank 2011). Anglo American hope that this project will make a positive difference to community development, and in turn bring them closer together, building respectful associations within the society they work in (Anglo American 2012l). They believe that this strategy along with strong governance and solid risk management will create trust amongst the company and its stakeholders and fundamentally enable the delivery of long term returns to shareholders (Anglo American 2012l). Employing the best people is vital to the success of the company and also to achieving their main goal of becoming the leading global mining company. How effectively Anglo American operates depends on the people they employee which in turn contributes to the reputation they have with investors, partners and potential employees (Anglo American 2012l). To attract the best employees to the company, Anglo American; create a safe work place for all, have a clear strategy for success, offer stimulating work, are organised for effectiveness and efficiency and support employees in their career development (Anglo American 2012l). Not only does this strengthen the company, as employees have the help to progress and be motivated to progress and become the best employees, but it also offers opportunities for Anglo American to be the employer of choice. Although Anglo American has quite strong strategies in place, they should be aware of the external factors which are constantly changing that could affect these strategies or future strategies. Due to the many countries that Anglo American operates in, they need to constantly monitor each country to ensure they are aware of anything that could affect them, for example, a change in government may have a drastic effect on the way they operate in that country. This could be managed by strong internal controls and contingency plans to react to any change as quickly as possible. The minimum wage rate for each country is something that also needs to be monitored and adhered to as they differ dramatically between the countries Anglo American operate in. The minimum wage for Australia in 2011 was ? 10. 13 compared to Kenya which was ? 0. 61, which is a dramatic difference so is hard to monitor, but it is essential to ensure all the different countries regulations are adhered to (Wage indicator 2012). Governments have also started to impose super profit taxes, where mining royalties increased in Australia, Chile and South Africa. Companies are charged super profit taxes on revenue but now new legislation has been introduced where mining companies are charged on profits as well as revenue. To offset this, there are also discovery bonuses that Anglo American can be rewarded for, for finding natural resources within a country (Deloitte 2010). Anglo American should carefully consider the environment and the areas affected by their actions. There is a constant concern from the public, as appreciation of the environment grows along with the awareness of the harmful effects that mining can have on their surroundings (Australian Bureau of Statistics 2006). Activities at ground level constantly have an impact on the surrounding area, as bore holes, access tracks and sometimes even helipads are required. If the areas affected are left un-rehabilitated, this can have a long term effect on the environment (Australian Bureau of Statistics 2006). Anglo American has a strategy in place that is recognised internationally, and assists any mine-closure planning. It focuses on the provision for finance necessary and rehabilitation â€Å"for long term sustainability through addressing complex socio-economic, physical and bio-physical challenges† (Anglo American 2012e). Stakeholder relations are constantly upheld throughout any project that Anglo American carries out; this ensures they have constant feedback from the community, government bodies and any other stakeholders affected by their actions. Mining is always going to affect the environment and the local communities surrounding each project, but Anglo American has strong strategies in place to deal and cope with these affects to the best of their ability. It is important for Anglo American to value the importance of society. Employees, their communities, and the population of host countries are all part of the society that Anglo American should embrace. â€Å"Every year Anglo American spend a percentage of their pre-tax profit on social investment projects and spend time working with communities† (Anglo American 2012j). In 2011, Anglo American increased their Corporate Social Investment by 15. 8% to $128. 6 million. The Anglo American Group Foundation is their own venture that operates globally, offering grants to countries where projects are carried out (Anglo American 2012j). Education is a huge social aspect where grant funding is used; assisting the development of maths, science and literacy as well as higher education and ensuring teachers are of a good quality. Health is also considered an important aspect on which to focus grant distribution, and Anglo American have a holistic approach when it comes to HIV/AIDS as not only do they supply internal counselling and testing but have also donated $4 million to external HIV/AIDS projects (Anglo American 2012j). Anglo American has outstanding generosity and strategies in place when it comes to the society and has strong and thorough planning for any operation carried out to improve their relations with stakeholders. However â€Å"community projects require creative marketing strategies and comprehensive business plans, and an external project consultant could be useful here† (Engineering and Mining Journal 2012), to eliminate any bias, and to make society relations a major variable for any decisions made. A large proportion of Anglo Americans workforce and mining is carried out in Africa â€Å"with nearly 1 billion people, Africa accounts for over a sixth of the world’s population, but generates only 4% of global electricity† (Salaam 2007). Anglo American need a lot of electricity to carry out day to day activities and with the strain of electricity available throughout Africa it was essential for Anglo American to find an alternative energy source due their large consumption of 102. 9 million gigajoules in 2011 (Anglo American 2011). In order for this level of energy to be available to them Anglo American have constructed five platinum based fuel cells which not only provides them with the necessary power for productivity but also â€Å"provided a significant economic and environmental development opportunity for South Africa by facilitating the provision of clean, reliable and cost effective power† (Anglo American 2012g). Anglo American consider technology and carbon reduction to be linked very closely and aim to have technology capable of running cost efficient, carbon neutral mines in 20 years (Anglo American 2012g). Although Anglo American have the aim in place to achieve this, a strategic report on how they aim to achieve it and a breakdown of steps, costs and research would be useful. It would not only be useful to the company and employees carrying out the strategy, but also for stakeholders, especially the African population and government. It may even be possible for the project to be supported, and maybe even assisted by the local Government to push forward the time scale. Being a multi-national company, Anglo American has to comply with many laws from each country they mine in. As well as these, some countries have individual legislation, which varies in different areas of the countries, USA Canada (Garcia 2008). These can include environmental laws, e. g. water pollution, national laws e. g. minimum wages and safety laws. An example being that Anglo American has developed a safety and sustainable development committee in order to comply with South African safety law. This states that a company in South Africa must provide a committee with ambitions to â€Å"initiate, develop, promote, maintain and review measures to ensure health and safety† (Boshoff 2012). By having a safety committee they can try to minimise the lost time fatality rate and try to achieve their overall goal of zero fatalities within any Anglo American workplace. Anglo American has a sound collection of strategies in place to deal with external factors but it is also important for that they have strategies in place for internal factors. Figure 5 shows a value chain of Anglo American and allows for the internal factors that Anglo American could be affected by to be recognised. |Infrastructure: A multinational conglomerate with joint projects and subsidiaries. De Beers being the largest subsidiary of | |many. Extremely high capital investment, with lots of projects. Primary listing on LSE, secondary on JSE. | |Human Resources: Diversity among workforce across all levels of employment. Committed to International Labour Organisation. | |Development of talent remains a key priority. | |Technology: Research and develop their own technology. Link development of new technology with the ability for carbon | |reduction. | |Procurement: have a local procurement policy engaging local businesses in supply chain. Expect all suppliers to operate | |safely, sustainably and responsibly. Prefer suppliers who are engaged in China sourcing. | |Inbound Logistics: |Operations: Diamond, |Outbound Logistics: |Marketing and Sales: De Beers|Service: To maintain | |partner with Chinese |nickel, copper, iron |40% of worlds platinum|have their own diamond |the sites. Mines need | |suppliers to operate and |ore, thermal coal and |output. Own 85% of De |auction and shops. 70% of |to be maintained by | |maintain complex products|platinum mining. Beers, the global |platinum consum How to cite Anglo American Dissatation, Essay examples

Improving Health Promotion And Conditions †MyAssignmenthelp.com

Question: Discuss about the Improving Health Promotion And Conditions. Answer: Introduction Health Promotion is basically used to power people about the better health services available and making better responsibility for improving the health. Thus growing use of health Promotion is to promote good care services which are easily accessible by everyone in the society (Grossmeier, et. al, 2016). It focuses on bringing the clinical and governance perceptive together by improving the health conditions in economic, political and spiritually perceptive. Government has a major contribution in promotion as it has unique responsibilities to make sure that every individual is conductive to good health. Health Promotion First health promotion was started in Ottawa which states various health issues and their corresponding actions needed to resolve the issues. It can be done by empowering people regarding their health condition and decisions needed for better condition by enabling an individual to enhance their health issues (Zasada, 2017). In 1986, Ottawa chatter stated that health promotion involves certain levels; first is developing personal skills in every individual this could be done by starting various health education programmes that influence the society to take care of their health. Government have initiated various programs showing the warnings of poor health and implanting various plans to overwhelmed the health issues. This can be attained by creating secure social as well a physical environment that provides a platform to know more about the shortcoming of health issue (Ljungblad, et. al, 2014). By spreading the awareness helps in adopting actions to improve health condition. Other tha n that by developing public related health policies helps in reaching to larger audience. Various policies are enforced in the society like alcohol policy or non-smoking policy which includes various attributes like legal age of drinking/smoking or by applying high penalties or by advertising the negative impacts on health (Johns, Langley Lewis, 2017). For a small grocery shop health promotion is a good idea as promoting at the work place helps in increasing the employee moral by creating happier work environment. Health promotion focuses on filling the gap between economic determinates and health issues by promoting the methods to improve the health. As the living style is changing rapidly hence health issues are getting complicated. But promoting the health concerns at the grocery shop is beneficial as it improves job satisfaction among the staff working there. For this advanced technology are used to ensure that health services are provided to the end users (Lewis, Megicks Jones, 2017). People are informed about their health conditions by using digital technologies so that they can take decision accordingly to decrease the chances of diseases. This approach helps in improving social and environmental conditions by reducing the risk (Stigsdotter, et. al, 2017). Health is related to numerous factors like family behaviour, bad hab its or society discrimination or some socio economic factors. To gain a healthy environment government has launched unique agendas to support the individual. There are various applications to overcome with the consequences of bad health; this can be done by proper planning for prevention of diseases rather than focusing on recovery. Importance for prevention of chronic disease is necessary as it may lead to loss of life. The increasing negative health concerns have caused many problems like anxiety, depression and mental health problem. But Prevention strategies and promotion of health causes can lessen the effects from becoming stable (Goetzel, et. al, 2014). Research has shown that via social networks, some education programs, motivational conferences can help the individual to cope with the stress by building strength and maximize their latent to deal with stress and improve their physical wellness. But promoting health at workplace by health promotion programs lower health care costs as well as it reduces the effects of stress (Davis et. al, 2018). The organisation behaviour plans an important role in promoting health issues as it helps in developing work related environment which reduces dissatisfaction, tardiness and absenteeism. An organisation promotes health by understanding the risks, adapting opportunities and defining structure for innovation and growth. The research emphasizes that improved health and efficiency within work environments converts to higher job satisfaction, enlarged productivity, a better assurance to the company and a decrease in employee turnover. It is globally accepted as its changes the pattern of living health life but there are numerous barriers in health care strategy. Cost of launching programs need a large capital and it is also difficult as old aged people dont understand how to use the new technology system (Edelman, Mandle Kudzma ,2017). Promotion focuses on providing long term care facilities so that the situation dont get worsen. According to the research review providing long-term care amenities ensures that acute health conditions will be served with proper action to safeguard the life of every resident. Long term care facilities are provided at home so that patient could overcome from the disease faster. Other than solving the issues which give rise to depression and mental health issues are important. Like removing the discrimination from the society as intentionally discriminating an individual from other people causes (Clark, et. al, 2017). In general lack of intent can cause discrimination for this increas e of awareness and promotion of health issues in needed to decrease societal biases in the society so that older people do not suffer with mental health issues. Conclusion Maintaining the health is essential to live a healthy life. Thus attaining positive changes in health helps in contributing countries growth. For increasing the health control measures and improving health conditions, health promotion is used. It has been developed for spreading betterment across the world. It is a process to control health determinants by various actions. Thus it is concluded that health promotion is done by building healthy public policy, creating supportive environment, strengthening community actions, developing personal skills as well as reorienting health services. Thus for a small organisation launching programs within the company gathers attention of every employee as well as the staff coming to buy the products. References Clark, B., Adeleke, S., Goode, A., Healy, G. (2017). Changes in sitting time after a real-world workplace health promotion program.Journal of Science and Medicine in Sport,20, e4. Davis, K., Carter, S., Myers, E., Rocca, N. (2018). Health promotion for young people with profound and multiple learning disabilities.Nursing children and young people,30(1), 28-34. Edelman, C. L., Mandle, C. L., Kudzma, E. C. (2017).Health Promotion Throughout the Life Span-E-Book. Elsevier Health Sciences. Goetzel, R. Z., Henke, R. M., Tabrizi, M., Pelletier, K. R., Loeppke, R., Ballard, D. W., ... Serxner, S. (2014). Do workplace health promotion (wellness) programs work?.Journal of Occupational and Environmental Medicine,56(9), 927-934. Grossmeier, J., Fabius, R., Flynn, J. P., Noeldner, S. P., Fabius, D., Goetzel, R. Z., Anderson, D. R. (2016). Linking workplace health promotion best practices and organizational financial performance: tracking market performance of companies with highest scores on the HERO scorecard.Journal of occupational and environmental medicine,58(1), 16-23. Johns, D. J., Langley, T. E., Lewis, S. (2017). Use of social media for the delivery of health promotion on smoking, nutrition, and physical activity: a systematic review.The Lancet,390, S49. Lewis, D., Megicks, P., Jones, P. (2017). Bullying and harassment and work-related stressors: Evidence from British small and medium enterprises.International small business journal,35(1), 116-137. Ljungblad, C., Granstrm, F., Dellve, L., kerlind, I. (2014). Workplace health promotion and working conditions as determinants of employee health.International Journal of Workplace Health Management,7(2), 89-104. Stigsdotter, U. K., Corazon, S. S., Sidenius, U., Refshauge, A. D., Grahn, P. (2017). Forest design for mental health promotionUsing perceived sensory dimensions to elicit restorative responses.Landscape and Urban Planning,160, 1-15. Zasada, M. (2017). Entrepreneurial activity in community health promotion organisations: findings from an ethnographic study.Social Enterprise Journal,13(02), 144-162.