Compensation of advertising Research Paper Example | Topics and Well Written Essays - 6500 words

Compensation of advertising - Research Paper Example On the other hand, advertisement is also viewed to be an important practice, as it provides the information related to the course of marketing, process of communication and more importantly marketing strategy that deemed to be essential for ensuring long-term growth and profitability. Mass media can be defined as the expanded media, which incorporates varied technologies to reach into masses through the mass communication process. Mass communication can be described as the study representing how individuals depend on the information through media to obtain any vital information about various objects. Both mass media and mass communication are important to consider in transferring information with using similar type of media (Advertising Educational Foundation, 2015). Mass communication helps an organization to transfer message to a group of people within a definite time. In relation to the above context, advertising can also be defined as the organized as well as collected mass communication information provided about the products or any other object through media. Advertising basically focuses on the group of public rather than considering an individual (Advertising Educational Foundation, 2015). The compensation method involves different models of pricing that are generally used for conducting varied sorts of activities that entail contextual advertising and associate marketing among others. The compensation method of advertising is identified to be different in this modern context as compare to earlier years. In earlier context, the ad agencies played the role of brokers without having any sort of directors as well as copywriters. There lay distinct types of compensation methods of advertising that entail pay- per sale, pay-per lead, pay-per call, pay-per install, pay- per click, pay- per action and pay-per method among others (Belch & Belch, 2003). Therefore, the advertisers are paid based on the above discussed several modes of compensation.

Report 501 Research Paper Example | Topics and Well Written Essays - 6500 words

Report 501 - Research Paper Example One of the widely used resource centre for efficient information service management is the Information Technology Infrastructure Library (ITIL). To be precise, hundreds of organizations all around the globe are encouraged to adhere to the practices outlined in the ITIL. In essence, different groups of stakeholders comprehend that to achieve top most success in information service management, then, it is essential that the key basics of the Information Technology Infrastructure Library are put into close consideration. The library offers the best platform for ensuring that an organization can efficiently achieve its set out operational goals. It further paves way for our organization to execute the right set of procedures towards creation of a successful and innovative business environment for the future (Mar 2013, 1). To be exact, the implementation of the ITIL in an organization is seriously a key subject not only in promoting our company’s competitive advantage but also in t he achievement of all our set out business goals. On this regard, this paper aims at delivering a well-designed report on the subject matter of issues related to the implementation of the Information Technology Infrastructure Library. In simple terms, the Information Technology Infrastructure Library (ITIL) entails a comprehensive and well-designed set of information technology documents that define the finest practices and techniques to be applied in an information technology environment. That is, it contains a high quality set of guidelines that are widely used in the day-to-day operations of both public and private companies (Chen 2010, 5). This is by providing them with an advanced blueprint necessary for the organization and management of the operations of an information technology company. The Information Technology Infrastructure library has aided many companies in promoting their global competitive advantage and be

Mother Teresa Essay Example for Free

Mother Teresa Essay One of the most loved people in the world, Mother Teresa devoted her entire life in a selfless deed of humanitarian acts. Being canonized as a saint by the late Pope John Paul II, her existence is forever cherished by those who came to love her and experienced the charitable works she did extending her self to the outcast and poorest sector of society. One of the most comprehensive and intimate autobiography written about Mother Teresa, is T. T. Mundakel’s Blessed Mother Teresa: Her Journey to your Heart which has been published in October 19, 2003 which happened to her beatification as well. This autobiography pertains to the most personal account of Mother Teresa’s life where the author maintained a close relationship with the saint herself. The one-on-one dialogue presented personal narratives coming Mother Teresa’s own words. Mundakel penned her struggles in life, her boundless faith in God, and her works as a nun reaching out to the poor in her country India, as well as her life before her sainthood and how this shaped her to the person that she is, loved and cherished even after death. This essay will delve into Mundakel’s work and how Mother Teresa’s life has created such impact to the world. She is clearly considered as a global leader who greatly reached out to her ‘constituents’ serving as manifestation of God’s kindness and selflessness. Born from a wealthy family situated in Albania, Mother Teresa does not have a close encounter with poverty just yet. Showing an interest to the stories of missionaries and their lives, this already manifested Mother Teresa’s innate selfless character. In the midst of wealth where her world has been limited to that kind of environment, the lives of the missionaries may have trigged her interest for an adventure accompanied by faith. The fact that missionaries are able to go from one or another to be able to serve ignited Mother Teresa’s interest the different world which missionaries’ visit and must have wanted to feel the kind of spiritual passion in which motivated the missionaries to do great works. Her desires to be a missionary pushed her to the goal of pursuing that dream by becoming a nun. By the time she arrived India, she has attained one of the things she may have wanted to experience like the rest of the missionaries she have heard of – a different world to where she can devote her service. When she was exposed to poverty, a whole different world has been brought in front of her. She cannot contain that such suffering and pain were being inflicted in this part of the world that Mother Teresa decided to give her full time to charity works. From the experiences that she had when she was submerged into poverty, Mother Teresa was to accomplish one of the most dedicated congregations aimed for the welfare of the poor. She started the Missionaries of Charity which is patterned on Franciscan aim of serving those in need, especially the outcast and most distraught sector of the society (Baldoni, 2003, p. 136). She also built a home for the orphans and homeless children called Nirmala Shishu Bhavan, for she was able to experience how it was to not have a home when she was just starting out as a missionary. Her missionary work did not aim in just helping the poor but to live and suffer with them. Ever since as a kid, Mother Teresa had already had a clear path that she wanted to take – a life committed in faith and to reach out to others. When she had witnessed the extreme poverty happening in Calcutta, it became an eye-opener for her and that further strengthened her vow and her faith to her mission and to God. In this present time, the Missionaries of Charity have grown into a significant number of approximately 4,000 nuns and still counting. From this aspect, it can be considered that Mother Teresa was successful in attaining her goals. The fact that her mission still exists in the presence of the congregation and the homes she spearheaded to be built, it is a manifestation of continuing her goals even after death. From Mother Teresa herself, one of the factors why she became successful in achieving her aim is due to her unwavering confidence to God by constantly communicating with prayer. The strong faith she pushed her to be a missionary is the same faith which made her stronger to surpass all the struggles she experienced in pursuing her missionary goals. That faith reminded her that it is a vow that she have been fated to serve and should be continued for the rest of her life. Mother Teresa was deeply honored in the global community. For she did not only focus on helping the poor of India but expanded it throughout other places in the world which experience famine, poverty, and calamity victims, the moment the missionary membership expanded as well. Through her consecutive efforts in helping suffering people from different places of the world, her name became recognized as the forefront of missionary works centering on humility and empathic deeds. Gaining recognition for her works, this influenced sectors of the society such as the government and the church to strengthen and intensify their work in reaching to the poor. Mother Teresa and her congregation became a good example on how service to the poor should be done and how to reach out to the people. The life and achievements of Mother Teresa is a hard path to follow. As the Christian Church preached to live a life like what Jesus did, emulating Jesus or Mother Teresa’s path is one hard task. She experienced a lot of hardship with her faith as her weapon and guidance for survival. From that, an ordinary individual will find it difficult to live a selfless life. Her accomplishments are not to be taken lightly for it took years to be able for the congregation to be built and its goals to be continually performed with so much strength and vigor. This autobiography made by Mundakel is indeed a tribute to the late missionary. The consistent gratitude honored for Mother Teresa shows a deep appreciation to the contemporary saint, despite of living in a fast-pace modern world, was able to attain a goal which helped a lot of people. Though it can be said that Mother Teresa’s life is hard to follow, her strength and passionate faith should be imitated or an individual to conquer life’s struggles and difficulties. Mundakel’s work is a manifestation of Mother Teresa as her love for God and her love for people brought her to be the most-loved person by the world. References Baldoni, J. (2003). Great Communication Secrets of Great Leaders. New York: McGraw-Hill Professional. Mundakel, T. T. (2003). Blessed Mother Teresa: Her Journey to Your Heart. India: Liguori.

Strategic Analysis Of Nestle Company Management Essay

Strategic Analysis Of Nestle Company Management Essay The purpose of this paper is to critically evaluate the strategic decisions that have occurred over the corporate history of Nestle mentioned in the case and to what extent has Mergers and Acquisitions and Strategic Alliances played a role in NESTLEs strategy in that period. In order to evaluate these strategic decisions, the paper shall outline Nestlà ©s historical strategic decisions; give a brief description of each decision and how mergers and acquisitions contributed to the growth of the company. The paper goes on to explain the current strategies of Nestlà © and how sustainable these strategies may be in the future. It explains the rationalisation of these current strategies and the new strategies that ought to be developed. The paper then looks at the future strategies of Nestle to outline the issues that are likely to be faced when these strategies are implemented .Likely actions are then suggested which may help give solutions to problems faced by Nestle on implementation of its future strategies. The strategic decisions involve new product development, extensive research development and entry into new product category which were mostly achieved through mergers and acquisitions. The current strategy was noted as unsustainable in the long term due to the fact that most of the products of Nestlà © cannot be classified as healthy .The suggestion made was that Nestle should come up with strategies that will make them healthier than their competitors. Nestlà ©s future strategies were also scrutinized and possible solutions given to overcome some of the strategic implementation issues the organization is likely to face. 1.  Ã‚  Ã‚   Evaluate the strategic decisions that have occurred over the corporate history of NESTLE mentioned in the case and to what extent has Mergers and Acquisitions and Strategic Alliances played a role in NESTLEs strategy in that period?    Expansion According to Bell and Shelman (2009), Nestlà ©s sales expanded rapidly across Europe a few years after its inception. The company started developing an international reputation, and in 1905 it took the strategic decision of acquiring its main competitor, the Anglo-Swiss Condensed milk company (Bell and Shelman, 2009). The Federal Trade Commission refers to this as a horizontal merger where a firm acquires a former competitor allowing for a consolidation of companies in the same industry (Barney, 2011). As a result, Nestle in the early 1900s began positioning itself as a powdered milk, and infant food company. Furthermore, the combined companies through the Nestle brand name continued to grow through product and market extension mergers. Barney (2011) describes a product extension merger as one which adopts a complementary product through an acquisition, as seen in the case of Nestle which aligned product adoption in categories such as sugar, milk, cocoa and coffee. Nestlà © further undertook market extension mergers which involve gaining entry into complementary markets through acquisitions (Barney, 2011); whereby Nestle entered the confectionary, coffees, cereals, soft drinks, ice cream, water and prepared foods markets (See Ansoff Matrix below). Ansoff (1965) would argue that Nestlà © uses four different approaches to grow its products and markets. To explain the reasoning behind Nestlà ©s past MAs they can be assigned into these categories of growth which include: market penetration, product development, market development and diversification (See Ansoff Matrix above). During the 1920s, Nestle diversified its portfolio from infant formula to include Milo. This was its first powdered drink not created for infants. Spanning from 1938 to 1948, Nestlà © made the decision to enter into coffee and tea sector with the launch of Nescafe and Nestea. Nestle also diversified into the confectionary market, prepared foods, water, pet foods, energy bar and weight loss markets with the acquisitions of Peter, Cailler, Kohler Swiss Chocolate Company, Maggi, Vittel, Friskies, Powerbar and Jenny Craig respectively. Diversification outside the food and drink industry to enter pharmaceuticals and cosmetics was executed in the 1970s when it became a minority shareholder of LOreal (25%) and later acquired Alcon Laboratories. Barney (2011) highlights that acquiring new companies leads to reduction in production or distribution costs through economies of scale and vertical integration. Mergers and Acquisitions are also beneficial In increasing market share For industry know how and positioning For Financial leveraging (See appendix 3) Reasonable for this industry To improve profitability and EPS (See exhibit 2 for EPS 2006 and 2007) Source: Lasserre (2012) According to Lasserre (2012), MAs can also create several types of values for a company. He argues that they are justifiable if the economic value of the two entities is worth more combined than the sum of independent values before the merger (2012). Thus, the businesses must create shared economic values through synergy by increasing revenues whilst decreasing costs. Lasserre assumes these created values can be both short-term (one-off value) and long-term (synergistic effects). Diversification and global reach were the main values created for Nestlà © in its acquisitions. For example, Carnation enabled Nestle to extend not only in its product range but also to reach new areas around the world. The following table outlines the values created through Nestlà ©s MAs. Nestlà ©s MAs Value created Anglo-Swiss Condensed Milk Company  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Consolidation Maggi  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification Acquisitions in canned and frozen foods, water, ice cream and pets food  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification Alcon Laboratories  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Options (to monitor the evolution of the technology) Carnation  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Global reach  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification Ralston-Purina  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification Jenny Craig  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification Novartiss Gerber  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Global reach  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Options (to monitor the evolution of the technology) Table: Nestlà ©s MAs and their value created. Source: Authors own creation based on information from Bell and Shelman (2009) and Lasserre (2012). Furthermore, the relationship between Nestle and LOreal developed further when they created two joint-ventures: Galderma and Laboratories Inneov. According to Barney (2011), joint ventures are undertaken in order to manage risk, share costs, and enter into new markets and industries. It is assumed that Nestle saw the benefits of alliances rather than acquisitions into the cosmetics market due to its lack of knowledge on the industry. Once Nestlà © diversified its portfolio, they followed-up by expanding brands through what Ansoff (1965) refers to as market penetration. In order to utilise its current resources, and take advantage of the market opportunities created by Milo and Nescafe, Nestle developed new brands such as Nesquik and Nespresso (Bell and Shelman, 2009).   Additionally, Nestlà © acquired more brands consistent with its presence in the water and pet foods market: e.g. Vittel and Friskies.   Ã‚   According to Ansoff (1965), market development is the introduction of existing products into new markets. This can be seen through Nestlà ©s acquisitions of Stouffer, which enabled the company to sell its food products to different markets: frozen prepared meals. Lastly, Nestle used product development to introduce new products such as Buitoni, Carnation, and Kit Kat to grow within its existing market of food, powdered drinks and confectionary. Nestlà ©s diverse portfolio provides it with a competitive advantage, and has enabled the company to become the worlds largest food and Beverage Company (Bell and Shelman, 2009). However, it seems that some product diversifications through mergers and acquisitions led to the downfall of its profits; especially visible in the years leading up to Mauchers administration (Bell and Shelman, 2009). Barney (2011) suggests that mergers and acquisitions between strategically unrelated businesses do not necessarily create significant economic profits. Thus, it can be assumed that Nestlà ©s strategically unrelated acquisition of Alcon and partial acquisition of LOreal between 1974 and 1977, contributed to a decline in profits between 1978 and 1981. Supply Chain Rationalisation As Nestle grew and entered new markets, they worked towards horizontally integrating their supply chain. According to Christopher (2005), companies such as Nestle seek to spread geographically, whilst reducing costs through economies of scale by prioritising manufacturing and operational processes. This can be seen throughout the 1900s as Nestle invests in its value chain by: opening processing plants within the U.S., Britain, Germany and Spain; manufacturing in Australia; warehouses in Singapore, Hong Kong and Bombay; and factories in the U.S. and Brazil (Bell and Shelman 2009) (See Nestlà ©s value chain). Firm infrastructure Decentralized organization Executive Committee consists of the CEO and 12 top managers The company is structured through 43 regional organisations reporting to directors of three geographic zones (zone Europe, Asia/Oceania/Africa and zone Americas). Country managers are given a large degree of autonomy when dealing with customer matters. Nestlà ©s Value chain Human Resource Management Focus on developing local management Investment in training and providing cross experiences People start from the bottom and move their way up in the organisation Unique culture/ focus on long term results Developing people from acquired companies. Technology Development Strong RD platform/ open innovation model Big investment in RD (investment to support pharmaceutical businesses and food, nutrition, health and wellness) Creating an innovation acceleration team to support rapid product introductions. Initiating a common technology infrastructure/ a comprehensive information system named the GLOBE. Margin Procurement Purchasing some raw materials instead of processing them in-house. 60% of materials purchases from emerging economies Direct sourcing -In developing countries agricultural commodities are bought from local markets and often directly from farmers- rather than on the world market Service Jenny Craig -personal nutrition counselling / Jenny Direct website and phone /Home delivery. Personalized services 24/7 service though telephone and internet help line for Nestlà ©s premium products. Marketing sales Positioning the company as healthy Strong brands product and brand differentiation. Dealing directly with consumers. Medical nutrition: market to professionals Outbound Logistics Synchronization of data between manufacturing and retailers- through the GLOBE system. Introducing new distribution channels for some brands (e.g. Nespresso corners, boutiques and home delivery) Inbound Logistics Ware- Housing Operations -Manufacturing, food processing plants -Producing locally -About half of the factories are in developing countries/ production for the local market. -Partnership with local farmers -providing advice and support -Implementing quality control processes. Moreover, Nestle made the strategic decision of establishing local supply chains which meant deploying its agricultural capabilities down to  the farm level through strategic alliances. This is referred to as their milk district model which allows farmers to supply milk to the company directly and in exchange Nestle provides its resources and know-how, such as providing storage and chilling facilities (Nestle, 2012). This highlights the fact that Nestle was seeking to establish its value chain activities, or Global business system, earlier on in its history (See value chain above).   According to Hill and Hill (2009), this type of model has the capability of reinforcing a companys competitive advantage as it is able to overcome barriers to integration, better respond to delivery speed, simplify sharing of information and reduce costs of production (Bell and Shelman, 2009). Adapting to a Global Role Nestle recognised that for it to sustain its competitive advantage it needed to establish a global technological platform to capture data, manage information and create knowledge (Bell and Shelman, 2009). Consequently Brabeck made the strategic decision of initiating the GLOBE system. Using this common technological infrastructure, it would be able to share information amongst all Nestlà ©s businesses and allowed for a synchronization of data in its supply chain (Bell and Shelman 2009). Refocused Strategy: Nutrition, Health and Wellness Nutrition has always been an integral part of Nestlà ©s vision, dating back to its first nutritious infant formula. However, due to Nestlà ©s realisation of consumers being increasingly aware of the link between food, health and personal wellbeing, there has been more of a shift away from a technology and processing-driven image towards health and wellness (Bell and Shelman 2009). Under Brabecks tenure, a Nutrition Strategic Business Division was created, along with the acquisitions of Proteika, Musashi (nutrition business), Jenny Craig (diet centres) and Novartis Medical Nutrition (Bell and Shelman 2009). Restructuring of Research and Development Unit Nestlà © also made a strategic decision of restructuring its RD unit to satisfy customer needs and internal growth. This was by shifting away from small decentralized units set up globally to limited large resource-intensive centres. This was done to renovate old brands by finding multiple uses for its product. Under Brabecks tenure, a 60/40 preference rating system was introduced where products were either discontinued or sold if they did not achieve the 60% level. This was done in order to ameliorate the companys performance and market orientation (Bell and Shelman, 2009). 2.  Ã‚  Ã‚   To what extent is the current strategy of NESTLE competitively sustainable in the future? How should it be rationalised and what new strategies ought to be developed in the future? Current strategy Nestlà ©s current strategy was to achieve worldwide sustainable competitiveness through four strategic pillars: low cost, efficient operations, renovation and innovation of the Nestle product line, universal availability and improved communication with consumers through better branding. They also had a vision of transforming the company from a technology-and processing-driven food and beverage company towards a vision of nutrition, health and wellness. (Bell and Shelman, 2009, p.3). Nestlà ©s current strategy of reorganizing its operations did come as an advantage as in some cases moved away from its agricultural and processing roots to buying the ingredients from outside suppliers (Bell and Shelman, 2009). This can be argued on the basis of Nestlà © reducing the steps of its value chain activities as Brabeck explained some of these activities could not add value to some businesses. An example would be the fact that Nestlà © exited from cocoa roasting but still carried on producing chocolate. This in turn reduced the costs and made the value chain more efficient. In fact, in terms of strategic operations, Lasserre (2012) argues that making fundamental changes in the value chain can lead to developing new products and services which can help a company sustain its innovative advantage. Moreover, to enhance the reliability of its suppliers, Nestlà © implemented a strategy of forming partnerships with its suppliers by creating direct links with them and providin g them with support and technical advice. This helped the company cope with the volatility of the supply market and enhance its operations.   Therefore, in terms of operational efficiency, Nestlà © can be seen to be sustainably competitive. Secondly, Nestlà ©s current strategy was focused on renovating and innovating its product line through reorganizing its RD.   Lasserre (2012) suggests that organizations such as Nestlà © could be trying to gain a critical mass advantage. He further explains that in order to achieve this, a minimum amount of resources needs to be mobilized for an activity to perform efficiently and effectively. Hence, Nestlà ©s shift from decentralized units of RD to few large resource-intensive centres. As a result of its RD centralization, Nestlà © was able to reinvigorate old brands; an example was finding multiple uses of the Nesquik brand from not only being a powder but to also present it as syrup and into ready to drink varieties. However, this strategy came at a disadvantage to Nestlà © as they lost the benefits of decentralization. These benefits include proximity to markets which gives a firm the ability to create products that fit local customer specificities, gaining access to geogr aphical clusters of knowledge creation and development access to good-quality scientists and the capability of a firm to learn from different market and cultures (Lasserre, 2012). Therefore, in terms of its RD strategy, it could be argued that Nestlà © will have trouble sustaining its competitive advantage in the future since part of its future strategy is to expand to other markets. Thirdly, with the introduction of GLOBE in the mid-2000s, Nestle initiated an era of capturing data by tying all of Nestlà ©s entities together under a common technological platform. This led to the company standardizing its data to manage its vast information and create and share knowledge among its Strategic business units, manufacturers and retailers. The main idea was to use shared knowledge to enhance the collaboration between all the different units of the company which can reduce costs and produce value all over the organisation. Bauwens (2012) outlines this as a social innovation where knowledge is shared and can be used by others. A good example would be the fact that the Globe system allowed for a synchronization of data leading to an improvement in order fulfilment between manufacturers and retailers. This has allowed Nestlà © to sustain its competitive advantage by adapting much faster to change and delivering value to customer (Lasserre, 2012). Therefore, knowledge sha ring has the potential to play a big role in helping Nestlà © maintain its competitive advantage.    Nestlà ©s final strategic pillar of improving communication between the organization and consumers through better branding could signify the companys efforts to differentiate its products. Barney (2011) would argue that Nestlà © could be trying to alter perceptions of current and potential consumers by altering its product features. In fact, Nestlà © focused on reducing fat and calories as well as incorporating healthy and natural ingredients into a wide range of products. It could be argued also that better branding is linked to its vision of moving from a food and beverage company to a wellness, health and nutrition company. This could also be Nestlà ©s way of differentiating its products by taking advantage of its reputation in the marketplace as a leading company in its industry. Therefore, customers would, in the long term, respond positively to the companys efforts of producing healthier products. Thus, if Nestlà © actually succeeds in changing peoples perceptions and posi tion itself as a health driven company, it can manage to maintain its competitive advantage in the future. It is through these four strategic pillars that Nestlà © derives its current model, the Nestlà © model, which refers to the companys long term of objectives of organic growth (target of 5% and 6% each year), continuous yearly improvement in EBIT and improve capital management which determines the assets of the company against the profit it generates (Bell and Shelman, 2009). The company seems to be achieving its objective as it has slightly improved its earnings before interest and taxes as seen in exhibit 6; it has slightly made progress in its capital management through its improved return on capital employed as seen in Appendix 2; and it has been able to achieve its objective of organic growth between 5% and 6% except for 3 years between 1996 -2007 years also indicated in Exhibit 6. Therefore, it is safe to assume that Nestlà ©s current strategy is competitively sustainable in the present however it remains to be seen if it can be successful in the future with its new vision . This is due to the fact that Nestlà © is possibly trying to implement both product differentiation and cost leadership strategies. Porter (1980) defines such firms as stuck in the middle (Barney, 2011). On the one hand, three of its strategic pillars indicate the companys intention of becoming a cost leader through low cost operations, restructuring its product line and efficiently managing its knowledge. On the other hand, it wants to differentiate its whole portfolio of products and services by changing the product features or by diversifying their products. Porter (1980) cited in Barney 2011 further explains that if a firm tries to implement both strategies then one of them will fail. He continues to add that for a firm to be economically superior in a single industry then they need to sell   at a high price and have small market share (product differentiator) or sell at a low price and gain significant market share (cost leader) therefore Nestlà © needs to decide which of the two it wants to become . As a result, a lot of their organizational requirements such as organizational structure and management control systems are stuck in the middle for example the fact that certain products need to be managed globally especially in the nutrition division while others are locally managed. Nestlà ©s current strategy could be rationalized by foregoing their vision of being a nutrition, health and wellness organization. Instead they should focus on being more of a healthier food and beverages company as a cost leader with its current Nestlà © model. First of all, if Nestlà © was to pursue a health, nutrition and wellness strategy Nestlà © would then have to restructure its product portfolio by getting rid of its unhealthy products such as Hot Pockets, and Kit-Kat. In exhibit 8 it can be seen that these products do not deliver growth to the company yet in exhibit 9 they seem to have a higher market share. This shows that the unhealthy products are in fact the cash cows of Nestlà © which indicate that they are the foundation of the company. It should try and follow Unilevers example of focusing on its core products. Therefore, Nestlà © should frame new strategies and make changes to its vision. Instead of holding on to unrealistic goals, the company could reposition itself in the market as becoming healthier than the competition. In fact, Nestlà © has already implemented this approach in the past with several products by introducing some nutritional improvements. As an example, Nestlà © reduced ice-cream fat by 50% and calories by 30% for Dreyers Slow Churned ice-creams and added healthy ingredients to some chocolate snacks (Bell and Shelman 2009). This indicates that the company has the resources needed to deploy this repositioning strategy. The company should also revaluate its SWOT analysis in terms of switching its vision to Health, Nutrition and Wellness. (refer to Appendix 2) Indeed, the strong RD platform enables Nestlà © to produce more healthy products while maintaining its taste. Moreover, Nestlà © has the capabilities of doing so with its open innovation model (global network with 5,000 scientists and technologists as well as RD centres worldwide) which enables the company to maximize its chances of coming up with new and innovative products. 3.  Ã‚  Ã‚   With regards to future strategies what are the strategic implementation issues likely to be faced by the company and what actions should they take to overcome them? Future strategies One of the future strategies of Nestlà © is to grow internally instead of growing through mergers and acquisition. Implementing this strategy could be catastrophic for the company as its growth has been largely relying on acquisitions and joint ventures. Nestlà © would also lose the benefits of using joint ventures, strategic alliances and acquisitions (Appendix 4). This would then imply that Nestlà © would have to use its own resources and core competencies to expand thus placing a greater risk on the business. It can also have a negative impact on the liquidity position of the company. A way in which this issue could be overcome is by applying both strategies. By applying both strategies, the company would be able to spread its corporate risk and share its costs as its return on capital employed still continues to generate profits for the company. Additionally, Nestlà © has managed to build strong foundations through mergers and acquisitions which has led it to improve its financial position. As seen on Exhibit 4, the acquisition of businesses has increased from 447 million in 2006 to 456 million in 2007 which has improved its cash flow. Therefore, in order to maintain a strong position, Nestlà © should carry on with mergers and acquisitions as well as growing internally. Another of the future strategies initiated by Bulcke is to shift the structure of Nestlà © from an organisation by country to an organisation by business through sharing best practices using GLOBE (Bell and Shelman 2009, p.10). He argues that this would enable Nestlà © to start managing its operations globally instead of adapting to every market. However, using the McKinsey 7s framework, many issues can be foreseen as seen on the table below. Factor Strategy Produce variety of quality products, wide variety of brands. Focus on nutrition, health and wellness. 4 strategic pillars (low cost, efficient operations, renovation and innovation of the Nestle product line, universal availability and improved communication with consumers through better branding) (Bell and Shelman, 2009, p. 3) Structure Decentralised and relatively flat organisational structure which helps to cater for local needs thus increasing flexibility. organized by country/ every country is like a small kingdom It has operations worldwide through strategic business units. System Comprehensive information system:   the GLOBE Employees move from the bottom up in the organisation. Style Democratic leadership style: managers are given autonomy to take decisions.   As such, they feel a sense of belonging in the organisation Staff Nestlà © maintains local companies with regional staff in local markets as they better understand the needs of customers. 43 regional organisations. More than 275,000 employees. It has a pool of experts- its staff consists of scientists, technologists from top universities (Bell and Shelman, 2009, p. 6) Skills Nestlà ©s competitive advantage is its RD. It has a high level of technology (23 Product Technology Centres), and  a network of experts around the world. (Bell and Shelman, 2009, p. 9). Shared Values Deliver long term value to shareholders. Focus on long term results. Unwritten culture strong personal culture (Bell and Shelman, 2009, p. 8). Although the change in the structure and the strategy was supported with a change in systems by adapting the GLOBE, other elements of the framework have not been adapted. For instance, the style used by Nestlà © was a democratic leadership style where management in the different countries are given a great deal of autonomy. By changing to a more centralized and global management style some internal resistance from the people can emerge.   The different markets are used to operating as small kingdoms (Bell and Shelman 2009, p.10). Therefore, given that country managers in the different countries were used to be given a great deal of freedom especially when dealing with issues related directly to the customer, this new strategy can produce some internal problems for Nestlà ©. To overcome this issue, other elements of the 7s framework have to be adapted. The main element that links everything together is shared values. Nestlà © has to work on making changes to its internal culture by introducing new shared values between its people. Implementing the GLOBE is not enough to implement the new strategy, a culture of sharing information and best practices should also be introduced and reinforced. Nestlà © should teach its people to move from a management style of taking control and matters into their own hands to a style of sharing control and producing decisions globally and collectively. The implementation of this approach may differ across countries due to the cross-cultural differences between countries. According to Lasserre (2012), country specific cultural values influence managerial values and assumptions in an organisation. As an example, Lasserre (2012) illustrates that western countries are more individualistic while Asian countries are collectivists which heavily impacts how business is done in these countries. In terms of implementing a culture of sharing, it can be assumed that Asian countries would respond more positively to the change than western countries.   Ã‚   Nestlà © intends to achieve its future growth by implementing four platforms for growth which are health, nutrition and wellness (to be the centrepiece), emerging markets, out of home consumption and premiumisation of existing products. (Bell and Shelman, 2009).The aforementioned strategy for growth is expected to double Nestlà ©s sales in the next 10 years. (Bell and Shelman, 2009)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Bulcke emphasized that the priority should be on health, nutrition and wellness to implement the vision into every product segment and every country. This vision is in line with Brabecks strategies of going beyond food to Nutrition, Health and Wellness (Bell and Shelman, 2009). The total sales for Nestlà © Nutrition segment has significantly increased from 5,964 million in 2006 to 8,434 in 2007, which represents an improvement of 41% as shown in Exhibit 11. Although total sales have increased, most products that have led to this increase in sales were unhealthy. So, in order to maintain its vision as a Health, Nutrition and Wellness, Nestlà © should give up its unhealthy products in the long term. However, this would negatively impact on the financial position of the company as these are its core products. Moreover, making the same products available in every market might not be adapted to the needs of every customer in terms of tastes, preferences and nutritional value so Nestlà © should make sure at least every different product are tailored to the needs of every different market.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Regarding emerging markets, Bulcke found out that these markets are growing at a faster pace and therefore Nestlà © should integrate further into it as there is a high potential for growth. The implementation of popularly position products (PPP), a strategy designed for low income earners so they can afford good nutrition products on a daily basis, is ex

Biography of Billy Graham and His Accomplishments in His Career :: Billy Graham Religion Evangelism Essays

Biography of Billy Graham and His Accomplishments in His Career "This is the Hour of Decision with Billy Graham, coming to you from Minneapolis Minnesota" Billy Graham, has preached to more than 210 million people through a live audience, more than anyone else in history. Not only that, but Mr. Graham has reached millions more through live televison, video and film. This has led Billy to be on the "Ten Most Admired Men in the World" from the Gallup Poll since 1955 a total of thirty-nine times. This includes thirty-two consecutive more than any other individual in the world, placing him as the most popular American for about forty years. This essay is going to talk about Graham's personal life, and what kind of family he grew up in and im also going to talk in detail about how he became an evangelist, because I feel it is very important yet interesting. His accomplishments in the fifties are uncomparable, so I will be including a considerable amount of information concerning that topic. Finally I will be talking about his personal achievements, bo oks written, and how he has been a companion to some of the American Presidents. William Franklin Graham Jr. was born in Charlotte, North Carolina on November 17, 1918. Graham was raised on a dairy farm by William Franklin (deceased 1962) and Morrow Coffey Graham (deceased 1981). In 1943 he married his wife Ruth McCue Bell, and had four children Virginia 1945, Anne Morrow 1948, Ruth Bell 1950, William Franklin, Jr. 1952, and Nelson Edman 1958. At age eighty, he keeps fit by swimming, playing with is nineteen grand children, and from aerobic walking, in the mountains of North Carolina, where he currently lives. (Billy Graham Best Sellers, 1999) Billy Graham told Time Magazine in one article about his life before becoming a preacher. "I lived on a farm. The only difference was I had to get up early in the morning and go milk cows. When I came back from school that day, I had to milk those same cows. There were about twenty cows I had to milk. By hand. That was before they had those ma chines. I loved being a farmer. But God called me to this work that I'm in now. I knew it was God calling. I said, "Yes. I will follow what God wants me to do." And so I went to two or three schools to get education. Biography of Billy Graham and His Accomplishments in His Career :: Billy Graham Religion Evangelism Essays Biography of Billy Graham and His Accomplishments in His Career "This is the Hour of Decision with Billy Graham, coming to you from Minneapolis Minnesota" Billy Graham, has preached to more than 210 million people through a live audience, more than anyone else in history. Not only that, but Mr. Graham has reached millions more through live televison, video and film. This has led Billy to be on the "Ten Most Admired Men in the World" from the Gallup Poll since 1955 a total of thirty-nine times. This includes thirty-two consecutive more than any other individual in the world, placing him as the most popular American for about forty years. This essay is going to talk about Graham's personal life, and what kind of family he grew up in and im also going to talk in detail about how he became an evangelist, because I feel it is very important yet interesting. His accomplishments in the fifties are uncomparable, so I will be including a considerable amount of information concerning that topic. Finally I will be talking about his personal achievements, bo oks written, and how he has been a companion to some of the American Presidents. William Franklin Graham Jr. was born in Charlotte, North Carolina on November 17, 1918. Graham was raised on a dairy farm by William Franklin (deceased 1962) and Morrow Coffey Graham (deceased 1981). In 1943 he married his wife Ruth McCue Bell, and had four children Virginia 1945, Anne Morrow 1948, Ruth Bell 1950, William Franklin, Jr. 1952, and Nelson Edman 1958. At age eighty, he keeps fit by swimming, playing with is nineteen grand children, and from aerobic walking, in the mountains of North Carolina, where he currently lives. (Billy Graham Best Sellers, 1999) Billy Graham told Time Magazine in one article about his life before becoming a preacher. "I lived on a farm. The only difference was I had to get up early in the morning and go milk cows. When I came back from school that day, I had to milk those same cows. There were about twenty cows I had to milk. By hand. That was before they had those ma chines. I loved being a farmer. But God called me to this work that I'm in now. I knew it was God calling. I said, "Yes. I will follow what God wants me to do." And so I went to two or three schools to get education.

Panopticon: The Ideal Social Order :: essays research papers

Panopticon: The Ideal Social Order "The Panopticon is a marvelous machine which, whatever use one may wish to put it to, produces homogenous effects of power." Panopticism is a style of controlling the individual and making him conform to the system. That system could refer to the police or the world as a whole. There is never a definite top position, therefore, everyone feels as if they are being monitored by someone else. It is for this reason that this disciplinary mechanism is so effective. The Panopticon serves as a tool for discipline and a laboratory of power. The capabilities of a Panopticon are endless. It is the basis for the government while it could also aid in the criminal activities for the mafia. In the government there is a system of checks and balances where nothing can get accomplished without the authorization of a higher ranked official. Once these ideas are passed they are then imposed on the individuals of society by other organizations . Whether it be the police, the IRA, or a neighborhood watch group. The Panopticon can serve the public in many ways. It can defend a country, reform prisoners, treat the ill, and educate the public. It does this by creating channels of power and distributing them to the individuals. In the Panopticon, no one individual shall be granted too much power so as to place his or her own values upon the masses. The concept behind panopticism is the distribution of power in order to better society as a whole. The historical problems with power have proven, when it is unevenly distributed, those with the power take advantage and impose their values on the public. For instance, Hitler was given too much power and he massacred millions of innocent people. The Panopticon, on the other hand, serves to increase the wealth, welfare, education, and spirituality of society. The Panopticon does punish but it does so in a means of reform. It attempts to restore the individual to a being that can be a productive and positive influence. The system has two main purposes, the distribution of power and the means of establishing discipline. Every aspect of the world has the ideas and principles of panopticism behind them. The world is full of intricate and complicated people. These people group together to create tribes, governments, countries, and or civilizations. What are the rules? How are we, the most complicated form of life that we know of, suppose to act towards one another. The panoptic system has implemented itself upon the world. It has created a system where no one

Linking Financial Ratios and Stock Returns

Chapter I INTRODUCTION Financial ratio analysis is a technique for trying to help interpret financial accounts and to determine the intrinsic value of a security by careful examination of key value drivers such as risk, growth, and competitive position. Various ratios can be calculated from the financial accounts. These ratios will then help us to examine the company’s performance over a number of periods by comparing the same ratios in previous years’ accounts and also the accounts of other businesses operating in a similar environment (Most common benchmarks are industry leaders and industry averages). Financial ratio analysis provides essential information and serve (Investors, Stockholders, lenders, corporation management, Fundamental analysts†¦. ) with a lot of different contexts for different kinds of decisions. 1. 1 Statement of the Problem The enormous number of financial ratios used by financial managers and financial analysts and their relationship with stock return is the main problem in interpreting the financial statements. Based on, the ultimate goal of financial managers is to maximize the wealth of their stockholders; financial managers must understand the impact of their managerial decisions on their company’s financial statements and financial ratios concluded which will consequently affect the stock price of their company. Interpreting such a huge number of ratios distracts attention from the most relevant factors that affect stock prices. 1. 2 Purpose of the study A number of studies such as Timo Salmi (1990) were conducted to reduce the information load resulting from computing a large number of ratios and categorize those ratios that were believed valuable. This study aims to identify those variables that are most relevant to the stock returns of pharmaceutical sector in Egyptian stock market. 1. 3 Statement of objectives This study attempt to achieve the following objective: -The most relevant independent variables (financial ratios) with stock returns as a dependent variable. Chapter II FINANCIAL RATIOS AND STOCK MARKET 2. 1 Literature Review The main goal of our research is to evaluate the relationship between common financial ratios as independent variables and stock returns of the pharmaceutical firms as dependent variable. The relation between financial statement information and stock return was examined by Ou and Penman (1989) who observed returns to investment strategies that are based on a measure that summarizes the information in financial statements to identify the relevant financial ratios. Their study indicate that the predicted returns can not be explained by return based risk measures and that financial statements capture fundamentals that are not reflected in stock prices. The results of the study suggest that it is possible for investors to make excess profits using publicly available information. More recently, the relation between financial statement information and stock return was extended by Holtausen and larcker (1992) who identify value-relevant fundamentals in the context of a return-fundamentals relation. Holtausen (1992) examined the ability of accounting information to generate profitable trading strategies (using 60 accounting ratios). The excess returns were observed in the fourth month following the company’s fiscal year end. The results of the study suggest that the trading strategy was able to earn significantly abnormal returns during the period of 1978-1988. The same issue was examined later by Lev and Thiagarajan (1993) who used fundamental ratios as the basis of analysts’ description of different ratios to identify the value relevance of the financial ratios and their usefulness in security valuation. Afterward, Belkoui (1997) employed the popular financial ratios to show the value relevance, where the popularity of these financial ratios is matched by their usefulness in security valuation. He shows that value relevance of popular financial ratios in both a non contextual setting and a setting conditioned by levels of inflation and growth. 2. 2 Classification of financial ratios The classification of financial ratios was studied by Timo Salmi (1990) who split these financial ratios into five somewhat arbitrary groups: †¢Profitability – how good is the business as an investment. Liquidity – the amount of working capital available. †¢Capital Adequacy – measure the leverage percentage. †¢Debt service coverage – how near is the business to bankruptcy. †¢Efficiency – how good is the management of the business. Each financial ratio has its own signal and its own relation to the stock return. Based on these previous studies, the stu dy selected the most popular financial ratios guided in major financial analysis books such as Mishkin (2001) 2. 3 An overview of Egyptian stock exchange EgyptWatch (2002) studied the history of the egyptian stock exchange and mentioned that the Egyptian Stock Exchange is comprised of two exchanges: the Cairo & Alexandria Stock Exchanges (CASE), and is governed by the same board of directors that share the same trading, clearing & settlement systems. The Alexandria Stock Exchange was officially established in 1888 followed by that of Cairo in 1903. The two Exchanges were very active until the 1940s, when the Egyptian Stock Exchange ranked fifth in the world. Nevertheless, the political turmoil of the mid-1950s led to the demise of activity on the Exchange, which remained dormant throughout the period between 1961 and 1992 (MohieEldin and Sourial, 2000). In 1990, the Egyptian government started on economic reform & restructuring program. The move towards a free-market economy has been remarkably swift and the process of deregulation and privatization has simulated stock market activity. The Capital Market Authority (2002) played an instrumental role in initiating and leading the effort for the revival of the Egyptian stock market in the period between 1992 and 1996. The Capital Market Authority (CMA) is the regulatory body in charge of enforcing, regulating & ensuring compliance as well as monitoring market performance. Relevant policy actions undertaken by the CMA include introducing all types of investment vehicles, allowing open competition in the pricing of market services; and providing full investor protection. The main features of the operational framework are fair trading procedures and practices as well as an immediate transfer of ownership of traded securities; optional listing on the stock exchange; quarterly disclosure requirements for companies; adequate protection of minority shareholder rights; and improved data collection schemes. Capital Law 95/1992 has put in place the regulatory framework in which financial intermediaries such as brokers, venture-capital firms, underwriters and fund managers are to operate. With respect to the managerial framework of CASE, a coherent organizational structure with a clear division of authority & responsibilities was established, creating new divisions & departments such as Publications & Public Relations, Research, Surveillance & Market Control, and Information Technology. Additionally, in May 1998, CASE signed a contract with EFA Software Ltd. , to deliver the new electronic trading, clearing & settlement system that will replace the existing one. The Board of Directors also set up several committees with specific responsibilities. At the senior level, an international advisory committee made up of internationally prominent economists, investment bankers, financiers & investors has been developed in order to ensure that CASE stays closely linked to the int’l arena. This group also provides continuous feedback on its policies. Both the CMA & the CASE monitor market activity to detect possible market manipulation or insider trading. Accordingly, they may suspend offers & bids for institutions suspected of price manipulation. In the case of an emergency, the CASE and/or the CMA may halt trading and/or place ceilings on floors trading prices (maximum 5% up or down), based on the closing prices of the preceding day. In the case of individuals, mutual funds & international funds, no taxes are levied on dividends, capital gain & interest on bonds. Profits of Egyptian corporations from securities investments are subject to a capital gains tax. 2. 3. 1 Recent developments On 21 July 2002, CASE commenced its new price ceiling system with regard to the most actively traded stocks. According to the new practice, the five-percent ceiling on daily prices was removed for a set of selected active stocks (currently twelve). This set of stocks comprises 12 out of the most actively traded stocks on CASE. The chosen of this set of stocks was based on meeting some stated criteria decided by CASE (2002): †¢Stocks must be dematerialized. †¢Minimum trading days per company per year is 220. †¢Average number of transactions per stock must be 20. †¢Minimum market capitalization per company amounts to LE 200 million. Minimum free float amounts to 15 percent of the total listed shares. †¢Minimum turnover ratio per company is 10 percent. †¢The company must prepare financial statements for three consecutive years. †¢Transactions conducted on the shares of the company must be executed by at least 20 brokerage firms. The new practice will stipulate the halt of trading on any of the twelve stocks for a period of thirty minutes, forty-five minutes o r till the end of the trading session, if the stock prevailing weighted average price exceeds 10 percent, 15 percent or 20 percent respectively over opening price. When trading is halted, brokers should inform their clients about the temporary suspension, its reasons, duration and should take the necessary actions in order to fulfill their clients requests. Brokers are allowed to cancel, any of their clients’ orders, when trading is halted. 2. 3. 2 Background of Privatization Program The Ministry of Public Enterprise (MPE) is dedicated to achieve the long-term goal of complete implementation of Egypt’s overall privatization plan. In 1991 Public Enterprise Law No. 203 was introduced as a transitional measure. Dr. Khatab M. (Minister of Public Enterprise) (2002) has explained his Ministry’s plans and objectives to facilitate privatization in Egypt and the methods that have been followed in this regard. Also Dr. Mokhtar Khatab has mentioned to the Government of Egypt (GOE) his efforts in undertaking an extensive privatization program whereby state-owned companies are transferred to the private sector through several methods McKinney (1996). †¢The transfer of ownership & control of state-owned enterprise to the private sector through a partial or a full public share flotation on both the domestic or foreign stock exchanges. †¢Direct sale of a controlling interest to domestic or foreign investors. Direct sale of a controlling interest to employees. †¢The law also allows the sale or lease of company assets, unlimited sale of government-owned shares, or liquidation. Primary objectives of the plan are to generate higher productivity and faster (but sustainable) growth, and as a consequence an increase in returns on assets and equity while at t he same time raising internal efficiency, improving capital structure and increasing capital expenditure. Since the early 1990s a number of key programs have been put into place to greatly liberalize commerce and trade; and to re-frame the country’s legal, regulatory, judicial, and tax structures. An equally important focus of the plan is the creation of new jobs that an expanding economy will provide for the workforce. Over the past five years, the GOE has achieved very gratifying results in macroeconomic terms. This is due to the creation of policies to remove trade barriers, the reform of trade and financial markets, and the reform of the legal taxation and regulatory frameworks, Field (1995) 2. 3. 3 Updates on the Situation of the Privatized Companies The Government of Egypt (GOE) has designed a balanced privatization program, which includes the following share sales strategies. The Egyptian Ministry of Public Enterprise Sector (2001) revealed that: †¢Public Offerings on the Cairo and Alexandria Stock Exchange 37 companies have so far been approved by the GOE for privatization and have been sold through Initial Public Offering (IPO) or second offerings. The sales of these companies netted 5. 6 billion pounds which represents 36% of privatization proceeds to date. 16 companies have achieved partial privatization netting the government nearly 1. 76 billion LE. †¢Sale to Anchor and Strategic Investors 3 companies have been privatized by this method, accounting for 6. 4 billion pounds LE in proceeds to the government. Sales to anchor investors have amounted to 42% of the total privatization proceeds thus far. †¢Employee Stock Ownership Programs (ESOPs) The GOE has approved the allocation through the sale of 10 percent of the public enterprises’ share offerings to the employees as part of the â€Å"Employee Stock Ownership Program†. I n other cases, and according to the particular circumstances of each company, the majority of shares have been sold to its management and employees. To date, mainly medium-sized companies in the public works sector have implemented this scheme. So far, 30 Employee Shareholder Association (ESA) sales transactions have taken place bringing in 870 million pounds LE. †¢Lease Management Contracts In this method, Companies were offered for management by the government to the private sector with an option to buy at a future date. This alternative is not very different to the anchor investor approach if and when the managing company exercises its option to buy. Five contracts of this type are currently active. Chapter III PHARMACEUTICAL SECTOR OVERVIEW The government has set a 40% ceiling (maximum that could be privatized), 10% of which is reserved for Employee Shareholder Associations (ESA), on the privatization of any public pharmaceutical company. The restriction relates to the government’s desire to maintain control of the industry for its significant role in society, The Egyptian Ministry of Public Enterprise Sector (2001). The first five companies that have been privatized: Alexandria, Cairo, Memphis, Arab and Nile pharmaceuticals. These companies have already been 40% privatized. The privatization plan then expanded to cover 11 companies at the end of June 2002. . 1 Pharmaceutical Industry Highlights Drug policy and planning center (2002) has published the following statistics: 199920002001 Market Size (LE bn)4. 655. 42 No. of Products (thousand)3. 63. 84 Per capita spending (LE)72. 6677. 1882. 14 3. 2 Pharmaceutical Products Total exports made by Egypt to the whole world includes a lot of commodities which are classi fied to (Fuels Products, Cotton, Raw Materials, Semi finished commodities and finished commodities). Central Bank of Egypt (2002) revealed that Pharmaceutical products are considered as part of finished commodities, they represent 3% of finished commodities and 1. % of the total export. Also, Pharmaceutical products play a significant role in Egypt’s import. They represent 4% of the total import and 21% of their classification division (consumer goods). Figure (1) shows Pharmaceutical Export and Import situation. Figure (1) Local production of medicine satisfies 92% of the market demand, whereas the remainder is balanced by imports. Kompass Egypt (2002-2003) classified the local market players as: 1) Public-sector companies. 2) Private-sector companies. 3) Multinationals Figure (2) Note: The term Private sector encompasses Multinationals and other Private companies. The government has set a relatively low tariff on imported drugs, which averages around 5%. The main reason for this comparatively low duty is the state’s policy of making medicine available to the bulk of the population at the cheapest possible price. 3. 3 Pricing Policy Prior to the reform program in 1991, the government’s major consideration when setting prices for drugs was to make medicine affordable to the bulk of the population regardless of a company’s cost structure. The focus on the social role of medicine, rather than the profitability of pharmaceutical companies, is the main reason behind this policy. The Drug Policy & Planning Center (DPPC) is the main regulatory authority controlling the pharmaceutical industry. The center is in charge of drug registration and pricing. The DPPC (2002) uses a â€Å"Cost Plus Formula† to price drugs. The formula stipulates a price equivalent to the products cost plus a certain profit margin. The profit margin is 25% for nonessential products, and 15% for essential products. It is noteworthy that once a product has been priced, it is seldom eligible for re-pricing to account for increasing costs. The heavy drop in the value of the Egyptian pound was mirrored in an increasing raw material costs burdening the Egyptian Pharmaceutical companies, which import around 80% of their raw material requirements. In order to save the profit margins from the aftermath of the devaluation, the Ministry of Health finally agreed to raise the prices of five products for each pharmaceutical company starting February 2002. 3. 4 GATT and TRIPS Egypt is a signatory to the General Agreement on Tariffs and Trade (GATT) which will come into effect for the pharmaceutical sector in Egypt in 2005. The agreement is likely to have serious repercussions for the pharmaceutical industries of developing countries including Egypt. The agreement calls for the abolition of both quantitative and qualitative barriers to entry for pharmaceutical products, thus eliminating any governmental protection of the industry. Under GATT, Egyptian companies have to abide by the restrictions imposed by patents and property rights for a period of 20 years. Based on the Egyptian commitment with the agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which is part of the GATT, President of Egypt published The Law No. 2 for year (2002), calling for the Protection of any invention whether industrial or intellectual. The agreement will result in the extension of a patent to 20 years and will grant protection to the product and the production process. Chapter IV METHODOLOGY AND EMPERICAL MODELS 4. 1 Data Set In our study, we select all the pharmaceutical companies quoted in the Egypt ian stock exchange which consists of 11 pharmaceutical companies representing the pharmaceutical sector. We covered the period from 1996 to 2001. Analyzing six continuous years of data, strengthen and support results and give our conclusion stability and reasonability. Kompass Egypt Financial Year Book and the Egyptian Capital Market Authority were the prime sources for our data set. Additionally, for the purpose of this analysis, we calculate the returns using annually prices of securities for years starting from 1996 to 2001. 4. 2 Selection of Financial Ratios (Independent variables) According to the literature, we determine the most useful financial ratios that could be functional in security valuation by analyzing and comparing several papers and texts were analyzed and compared. The reasons behind the selection of these financial ratios: †¢Their talent in theoretical explanation of fundamental relationships and signals experienced by the firms. [Foster 1986] †¢The importance of their existence in published annual reports. [Gibson 1982] †¢Surveys proved that chief executive officers and other senior executives are concerning popular financial ratios for various types of decision making. [Walsh 1984] The following table provides the most common financial ratios that might affect stock returns. For each financial ratio, we provide the way of calculation, the hypothesized positive or negative relationship with stock returns. Table (1) The common financial ratios and their prediction with stock returns GroupFinancial ratiosVariablesEquationsPrediction of relationship ProfitabilityEarning per ShareEPSNet income / Number of shares outstandingPositive Return on EquityROENet income / owners’ equity Return on AssetsROANet income / total assets Profit MarginPMNet income / total sales LiquidityCurrent RatioCTRCurrent assets / Current liabilitiesNegative Quick RatioQR(Current assets – Inventory) / Current liabilities Operating Cash flow RatioOCFCash flow from operations / Current liabilitiesPositive LeverageDebt to Equity RatioDERLong term liabilities / owners’ equityNegative CoverageInterest CoverageICEBIT / interest expensePositive EfficiencyAssets TurnoverATOSales revenue / Total assetsPositive Receivables TurnoverRTOSales / Account Receivables EBIT: Earnings before Interest and Taxes We refer to the explanantion of these financial ratios (independent variables) in the Appendix section. . 3 Buy-and-Hold Returns (BHR) As far as the dependent variable is concerned, stock returns, there is no consensus on the appropriate methodology for calculating the long-run stock returns (see among other, Barber and Lyon, 1997; Kothari and Warner, 1997; Brav and Gompers, 1997; and Barber, Lyon and Tsai, 1999). Researchers use several methods to calculate long run returns, in particular Buy-and-Hold returns (BHRs) method. The first s tep in calculating Buy-and Hold return method is to calculate rate of return on stocks. We consider that the appropriate rate of return on a given stock is the difference between the stock prices in time t plus dividends in time t-1 and the stock prices in time t-1 , as follows: (1) Where is the return for security I for period t, refers to the closing price of security I at time t , and is the price of security I at time t-1 , is the dividend received for period t-1 for the firm I As far as we consider time t as a year, rate of return on stocks ( ) that we calculated from the previous equation is the Buy-and-Hold return method for a financial year. (2) Where is Buy-and-Hold Return for security i in period t. we consider it a year. 4. 4 Regression Model To determine the relationship between the independent variables (financial ratios) and the dependent variable (stock return), we follow a similar methodology to that of Belkaoui (1997) and estimate the following regression: (3) Where is the annual stock return of firm I at time t, is the earning per share for firm I at t ime t, is the return on equity for firm I at time t, is the return on assets for firm I at time t, is the profit margin for firm I at time t, is the current ratio for firm I at time t, is the quick ratio for firm I at time t, s the operating cash flow for firm I at time t, is the debt to equity ratio for firm I at time t, is the interest coverage ratio for firm I at time t, is the asset turnover for firm I at time t, is the receivable turnover for firm I at time t. Since the return of a given stock is based on a period extending from 9 months prior to the fiscal year-end and 3 months after the fiscal year-end, corresponding roughly with the period between announcing the financial statement, the starting month would be December for firms whose fiscal years end at Jun, the 30th and June for firms whose fiscal years end at December the 31st. CHAPTER V RESEARCH FINDINGS 5. 1 Results We present results of a regression model where independent variables in the regression equation are chosen in two ways (both general and step wise regression). Multicollinearity tests the correlation among two or more of the independent variables (financial ratios) used in the regression equation. Multicollinearity is a problem because it increases the likelihood of rounding errors in the calculation of the beta estimates and standard error, and also it may produces confusing and misleading (signs of beta parameters are different from those signs expected) results (Mendenhall, 1996). Table (2) shows that the existing problem in this Multicollinearity is especially evident for the correlation between the Current Ratio and the Quick Ratio reaching 0. 92 and significant at 99% level. Current Ratio and Quick Ratio are two faces for the same coin. They are categorized under liquidity ratios group, they have the same explanation about the result and there is a little bit difference in their equations (In Quick Ratio, Inventory is excluded from the Current Assets). So we eliminate Quick ratio from the independent variables (financial ratios) and retain on Current Ratio because it is more popular. Table (2) Correlation Matrix to explain the relationships among the financial ratios as independent variables VariablesQRATODERCTRICEPSOCFPMRTOROAROE QR1. 000 ATO-0. 4204*1. 000 DER0. 03920. 3860*1. 000 CTR0. 9239*-03478*0. 08801. 000 IC0. 3752*-0. 3246**-0. 15040. 3610*1. 000 EPS0. 1884-0. 2604**-0. 12480. 0724-0. 03061. 000 OCF0. 0641-0. 3243-0. 29300. 15720. 19970. 32021. 000 PM0. 1659-0. 4338*-0. 2835**0. 23450. 04750. 6245*0. 34311. 000 RTO-0. 2999**0. 1663-0. 0413-0. 0230-0. 0298-0. 19220. 6846*0. 16561. 000 ROA0. 0535-0. 1600-0. 4080*0. 16850. 17500. 6342*0. 6703*0. 6392*0. 3761*1. 000 ROE0. 1264-0. 1178-0. 01580. 21150. 10610. 11030. 8970. 2610**0. 18200. 3693*1. 000 * Significant at the 1% level ** Significant at the 5% level Table (3) & (4) show the multiple and step-wise regressions of the relationship between explanatory variables (financial ratios) and stock returns utilizing buy-and-hold return (BHR) method. The relationship between stock returns and common financial ratios is es timated using the following equation: Where is the annual stock return of firm i at time t. BHR is calculated as follows: Where is buy- and- hold return for security i, in period T, T is the trading month number 12, and indicates the first event month of calculating the return. s the dependent variable in the regression equation. Table (3) Multiple Regressions of the Relationship between Financial Ratios and Stock Returns Independent variables BetaT testSig. T 1- Current ratio (CTR)0. 7821993. 0940. 0055* 2- Interest coverage ratio (IC)0. 6895873. 0850. 0056* 3 Profit margin ratio (PM)0. 6434102. 5740. 0177** 4- Earnings per share (EPS)0. 3790681. 1190. 2757 5- Operating cash flow ratio (OCF)0. 2002970. 5430. 5931 6- Assets turnover (ATO)0. 1150700. 4550. 6537 7- Return on Equity (ROE)0. 0966730. 5010. 6215 8- Debt to equity ratio (DER)0. 0622020. 3040. 7640 – Receivables turnover (RTO)-0. 165573-0. 4660. 6457 10- Return on Assets (ROA)-0. 121268-0. 3320. 7433 Multiple R = 0. 68529F = 6. 76472 R square = 0. 46962Significant F = 0. 0031 * Significant at the 1% level ** Significant at the 5% level The results from table (3) show that the F test used to test the overall utility of the model indicates that the model is significant at the 99% level. However, the R square is 46. 96% indicating that the ten independent variables together explained approximately half of the variance in the yearly return of pharmaceutical sector as a dependent variable. Also, T test of the individual Betas (financial ratios) indicates that the most active ratios in determining stock returns are Current Ratio (CTR), Interest Coverage Ratio (IC) and Profit Margin Ratio (PM) with a significant level of 99%, 99% and 95% respectively. To check on the signs of the beta coefficient, the dependent variable (stock return) was regressed on each of the independent variables (financial ratios) and the signs of the resulting betas were checked against that of the original equation. There are three ratios which are Current Ratio, Receivable Turnover and Return on Assets that had different signs from the original regression equation The positive coefficient estimated for Current Ratio with stock returns is not expected because conservative policies that tend to keep current asset higher than current liability have lower risk and also have lower expected return than the aggressive policies. So we conclude that rational investors put more confidence in low risky stocks and look forward for stable stocks more than the temporary profitable stocks. On the other hand, Receivable Turnover ratio and Return on Assets ratio are completely insignificant as show in table (3), so there is nothing important to explain their different signs from the original prediction. Table (4) Step-wise Regression of the Relationship between Financial Ratios and Stock Returns Independent variables R? BetaT testSig. T ChangeAccumulation 1- Current ratio 0. 194050. 194050. 7302745. 2990. 0000* 2- Interest coverage ratio 0. 121330. 315380. 7161115. 2420. 0000* 3 Profit margin ratio 0. 072850. 388230. 4597934. 1170. 0001* Multiple R = 0. 62308F= 12. 69213 R square = 0. 38823 * Significant at the 1% level ** Significant at the 5% level In the next step, we utilize the step-wise regression to reach the final model that contains the significant explanatory variables and give better explanation for the relationship. Consistent with the general regression models, the step-wise results confirm the above mentioned findings as Current Ratio (CRT) is the most significant variable at the 99% and explained about 19% of the variance in the yearly return of pharmaceutical sector with R square about 19%, while R square for the model is about 39%. Interest coverage ratio has also explained about 12% of the variance in the yearly return of pharmaceutical sector. Interest coverage ratio is regarded as a measure of a company’s creditworthiness because it shows how much income there is to cover interest payments on outstanding debt. Profit margin ratio explained about 7% of the variance in the yearly return of pharmaceutical sector with R square 7%. From results we conclude that rational investors and stockholders are looking for strength and stability first then profitability when evaluating a pharmaceutical stock company. Table (5) Stepwise Multiple regression analysis for the good predictors Company R? BetaT testSig. T ChangeAccumulation 1- Memphis0. 466240. 466240. 73001412. 4530. 0000* 2- Cairo0. 213940. 680180. 6092937. 6880. 0000* 3- Alexandria0. 094360. 77454-0. 521862-4. 6470. 0001* Multiple R = 0. 88006F= 23. 73573 R square = 0. 77454 * Significant at the 1% level ** Significant at the 5% level Stepwise multiple regression model yielded a reduced equation containing only three companies (independent variables) explaining about 77% of the variance in the yearly return of pharmaceutical sector as a dependent variable: the analysis yielded three good predictors as demonstrated at table (5), the results proved that Beta value of Memphis Pharmaceutical and Chemical Industries was 0. 73 and it is significant at 99% level. Additionally, Memphis Company alone explained about 47% of the variance in the yearly return of the pharmaceutical sector. The second good predictor is Cairo Pharmaceutical and Chemical Industries while its Beta value was 0. 60 and it is significant at 99% level. Cairo Company alone explained about 21% and together with Memphis Company explained about 68% of the variance in the yearly return of the pharmaceutical sector. The third and last predictor is Alexandria Pharmaceutical and Chemical Industries with a Beta value of -0. 52 and significant at 99% level. Alexandria Company explained alone about 9% of the variance in the yearly return. 5. 2 Summary and Conclusion The relationship between financial ratios and stock returns has been a popular issue in the area of accounting and finance for a long time, so we found that it is a good issue to discuss on the Egyptian stock market. Here, an analysis is undertaken to show the value relevance of the financial ratios and their usefulness in security valuation in the Egyptian pharmaceutical sector. In our research, we use step-wise multiple regressions between financial ratios and stock returns, also between pharmaceutical companies’ returns and pharmaceutical sector returns. The results from using step-wise and multi regression indicate that Current Ratio (CTR), Interest Coverage Ratio (IC) and Profit Margin Ratio (PM) respectively, are the most relevant ratios in determining stock returns. Additionally, Memphis Pharmaceutical and Chemical Industries is the most relevant company in explaining the variance of the pharmaceutical sector return as a whole. Finally, it seems that Current Ratio (CTR), Interest Coverage Ratio (IC) and Profit Margin Ratio (PM) play a significant role in formulating investment decisions in the Egyptian stock market (specifically, Pharmaceutical sector). Egyptian rational investors put more confidence in low risky stocks and look forward for stable stocks more than the temporary profitable stocks. 5. 3 Further Research The study was conducted on Egyptian pharmaceutical sector and taken all pharmaceutical companies (11 companies) that have been quoted in Egyptian stock exchange, covered the period from 1996 to 2001. Replicating the study on other sectors in Egypt such as (Agriculture, Food & Beverages, Construction, Banks†¦) at different times could be very useful. The study could be also replicated on the valuable Egyptian market indices such as (Case 30, IFCG, MSCI, EFG Hermes). These studies could help in determining more clearly the relationship between financial ratios as independent variables and stock returns as dependent variable. CHAPTER VI REFRENCES Barber, B. , Lyon, J. , and Tsai, C. , (1999), â€Å"Improved Methods for Tests of Long-Run Abnormal Stock Returnsâ€Å", Journal of Finance, 54 (1), 165-201. Baraber, B. , and Lyon, J. , (1997), â€Å"Detecting Long-Run Abnormal Stock Returns: The Empirical Power and Specification of Test Statisticsâ€Å", Journal of Financial Economics, 43 (3), 41-72. Brav, A. , and Gompers, P. , (1997), â€Å"Myth or Reality? 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(1986), â€Å"The Relative Information Content of Accruals and Cash Flows: Combined Evidence at the Earnings Announcement and Annual Report Release Date† Journal of Accounting Research, p. 165-200 CHAPTER VII APPENDIX (A) Financial Ratios Financial ratios are very important for new investors who would like to invest in the firm and also for stockholders who are the investors of the firm because financial ratios give them several indicators which they can evaluate the firm with. 1) Profitability Ratios The main goal of these ratios is to help us to judge how good the firm's profit performance. Profitability ratios refer to the ability of a firm to generate revenues in excess of expenses. 1. 1 Earnings per Share The portion of a company’s profit allocated to each outstanding share of a company’s common stock. E arnings per share is simply a fundamental measure of profitability that shows how much profit was generated on a per-share-of-stock basis. EPS doesn’t reveal a great deal. Its true value lies in comparing EPS figures across several quarters, or years, to judge the growth of a company’s earnings on a per-share basis. David Irwin (2001) Therefore, studying refers to a positive relationship between EPS and stock market return. To calculate EPS, start with net income (earnings) for the period in question, subtract the total value of any preferred stock dividends and then divide the resulting figure by the number of shares outstanding during that period. Or: Net income / Number of shares outstanding 1. 2 Return on Equity ROE is a fundamental indication of a company’s ability to increase its earnings per share and thus the quality of its stock, because it reveals how well a company is using its money to generate additional earnings. ROE allows investors to compare a company’s use of their equity with other investments, and to compare the performance of companies in the same industry. ROE can also help to evaluate trends in a business. Businesses that generate high returns on equity are businesses that pay off their shareholders handsomely and create substantial assets for each dollar invested as mentioned by Peter S. 1999). To calculate ROE, divide the net income shown on the income statement by shareholders’ equity, which appears on the balance sheet: Net income / owners’ equity 1. 3 Return on Assets A Company’s profitability expressed as a percentage of its total assets. Return on assets measures how effectively a company has used the total assets at its disposal t o generate earnings. Because the ROA formula reflects total revenue, total cost, and assets deployed, the ratio itself reflects a management’s ability to generate income during the course of a given period, usually a year. Ross (2002) Naturally, the higher the return the better the profit performance. ROA is a convenient way of comparing a company’s performance with that of its competitors. ROA should have a positive relationship with the stock market return. To calculate ROA, divide a company’s net income by its total assets, then multiply by 100 to express the figure as a percentage: Net income / total assets 1. 4 Profit Margin Profit Margin is a company’s net profit or loss as a percentage of total sales for a given period, typically a year. This ratio shows how efficiently management uses the sales revenue, thus reflecting its ability to manage costs and overhead and operate efficiently. It also indicates a firm’s ability to withstand adverse conditions such as falling prices, rising costs, or declining sales. Ross (2002) The higher the figure, the better a company is able to endure price wars and falling prices. Investors tend to prefer a higher percentage of profit margins, which considered being an indication of a positive relationship between profit margin and stock market return. The calculation is very basic: Net profit / total sales (2) Liquidity Ratios These are ratios that measure the liquidity of the firm. Firms have to ensure that they have the liquidity required to meet all their commitments. To the extent a firm has sufficient cash flow; it will be able to avoid defaulting on its financial obligations and, thus avoid experiencing financial distress. 2. 1 Current Ratio Current ratio is the company’s liquidity and its ability to meet its short-term debt obligations. By comparing a company’s current assets with its current liabilities, the current ratio reflects its ability to pay its upcoming bills in the unlikely event of all creditors demanding payment at once. Current liabilities are debts that are due within one year from the date of the balance sheet as mentioned by Charles P. (2002). The basic source from which to pay these debts is a current asset. As long as firms are searching for no risks by increasing current assets, profitability will be getting shrunk. So that current ratio should have a negative relationship with stock market return. Working capital is also called net current assets or current capital, and is expressed as: Current assets / Current liabilities 2. 2 Quick Ratio How quickly a company’s assets can be turned into cash, which is why assessment of a company’s liquidity also is known as the quick ratio, or simply the acid ratio. Regardless of how this ratio is labeled, it is considered a highly reliable indicator of a company’s financial strength and its ability to meet its short-term obligations. Because inventory can sometimes be difficult to liquidate, the quick-test ratio deducts inventory from current assets before they are compared with current liabilities-which is what distinguishes it from the current ratio. Potential creditors like to use the quick-test ratio because it reveals how a company would fare if it had to pay off its bills under the worst possible conditions. Indeed, the assumption behind the quick-test ratio is that creditors are howling at the door demanding immediate payment, and that an enterprise has no time to sell off its inventory, or any of its stock. This ratio should have also negative relationship like the current ratio with stock market return. The quick-test is computed by subtracting inventories from current assets and dividing the difference by current liabilities: (Current assets – Inventory) / Current liabilities . 3 Operating Cash Flow Ratio Traditional working capital ratios indicate how much cash the company had available on a single date in the past. Cash flow ratio, on the other hand, tests how much cash was generated over a period of time and compare that to near-term obligations as published by John R. and Jeanne H. (1998). This ratio should str engthen the investors’ confidence toward the firm, therefore it should be positively related with stock market return. The numerator of the OCF ratio consists of net cash provided by operating activities. This is the net figure provided by the cash flow statement after taking into consideration adjustments for non-cash items and changes in working capital. The denominator is all current liabilities, taken from the balance sheet: Cash flow from operations / Current liabilities (3) Leverage Ratios 3. 1 Debt-to-Equity Ratio How much money a company owes compared with how much money it has invested in it by principal owners and shareholders. The debt-to-equity ratio reveals the proportion of debt and equity a company using to finance its business. It also measures a company’s borrowing capacity. The higher the ratio, the greater the proportion of debt but also the greater the risk. Mishkin (2001) describes the debt-to-equity ratio as â€Å"a great financial test† of long-term corporate health, because debt establishes a commitment to repay money throughout a period of time, even though there is no assurance that sufficient cash will be generated to meet that commitment. Creditors and lenders, understandably, rely heavily on the ratio to evaluate borrowers. As long as this ratio is considered to be low, investors’ confidence will be increased which negatively related with the stock performance. The debt-to-equity ratio is calculated by dividing debt by owners’ equity, where equity is, typically, the figure stated for the preceding calendar or fiscal year. Debt, however, can be defined either as long-term debt only, or as total liabilities, which includes both long- and short-term debt. The most common formula for the ratio is: Long term liabilities / owners’ equity (4) Coverage Ratios 4. 1 Interest Coverage The amount of earnings available to make interest payments after all operating and non-operating income and expenses—except interest and income taxes—have been accounted for. Interest coverage is regarded as a measure of a company’s creditworthiness because it shows how much income there is to cover interest payments on outstanding debt. Banks and financial analysts also rely on this ratio as a rule of thumb to gauge the fundamental strength of a business as argued Eugene F. & Joel H. (1998). Investors also rely on this ratio to examine the strength of a firm’s financial statement while this ratio should have a positive relationship with stock market return. Interest coverage is expressed as a ratio, and reflects a company’s ability to pay the interest obligations on its debt. It compares the funds available to pay interest—earnings before interest and taxes, or EBIT—with the interest expense. The basic formula is: EBIT / interest expense (5) Efficiency Ratios Ratios of turnover are constructed to measure how effectively the firm’s assets are being managed. 5. 1 Asset Turnover The amount of sales generated for every pound’s worth of assets over a given period. Asset turnover measures how well a company is leveraging its assets to produce revenue. A well-managed manufacturer, for example, will make its plant and equipment work hard for the business by minimizing idle time for machines. The higher the number the better-within reason. As a rule of thumb, companies with low profit margins tend to have high asset turnover; those with high profit margins have low asset turnover. This ratio can also show how capital intensive a business is. Some businesses-software developers, for example-can generate tremendous sales per dollar of assets because their assets are modest. At the other end of the scale, heavy industry manufacturers need a huge asset base to generate sales as refered by Eugene F. & Joel H. (1998). As long as the plant and equipment work hard and sales are increasing that would be an indication of a good sign. Consequently, this ratio should be a positively related with stock market return. Asset turnover’s basic formula is simply sales divided by assets: Sales revenue / Total assets 5. 2 Accounts Receivable Turnover This ratio explains the number of times in each accounting period, typically a year that a firm converts credit sales into cash. A high turnover figure is desirable, because it indicates that a company collects revenues effectively, and that its customers pay bills promptly. A high figure also suggests that a firm’s credit and collection policies are sound. In addition, the measurement is a reasonably good indicator of cash flow, and of overall operating efficiency as hence by Mishkin (2001). This ratio should have a positive relationship with stock return. The formula for accounts receivable turnover is straightforward. Simply divide the average amount of receivables into annual credit sales: Sales / Account Receivables (B) Statistical Results