Theory vs. Practice in Small Business Setting Essay

Theory vs. Practice in Small Business Setting Essay When it comes to working in any sort of organization or corporation, one of the obvious chasms that becomes clear here is the relationship between theory and what is practiced in a small business setting. To truly look at and assess that paradigm, the author of this report has interviewed an owner/manager at a small business to discuss what they do to make things work, what is suggested in theory and scholarly literature and how those frameworks and lessons do or do not work for their particular situation. The author of this report will personally be making a comparison and contrast between what is asserted within the literature and compare it to the feedback and personal experience narrative of the owner/manager. A common refrain seen in the blogosphere and elsewhere is that there is a disconnect between what is suggested in the minds of theorists and within the so-called ivory towers of academia and political think tanks. There is perhaps some truth to that common anecdote but ther e surely has to be some fire to go with the smoke that is the innovation and ideas that come out of academia. After all, not everyone in the academic and scholarly sphere is an insulated wonk with no real-world exposure. While the applicability of theory to real-world situation and practice might be hit or miss in some instances, the interview with the owner/manager that is the subject of this report clearly shows that academic sometimes gets it completely right. Analysis of Experience The author of this report took the time to sit down with the owner/manager of a business that has about two dozen employees. The epicenter of the analysis and ideas that are being looked at by the author of this report and as reflected by the owner/manager is a small team of four people that all share in about six total tasks. Anyhow, there was the idea that rose with the manger himself as well as the team that perhaps it would be more efficient and wiser to consolidate some tasks to two (half) of the people and the other tasks to the other half. Further, about half the of the tasks were client contact-related while the others were mainly internal in nature. The general idea was to keep each half of the team as homogenous as possible in terms of the jobs they did so as to avoid the number of differing tasks and multi-tasking that went on. This surely has its roots, at least in part, in a lot of the scholarly literature that is out there. Indeed, there are some sources out there that suggest multi-tasking is just another way of saying that one is doing more tasks without properly or fully excelling at any of them. In other words, doing one task and to completion is always going to be better than trying to juggle two or more at the same time (Weightman et al, 2017). Further, there is perceived benefit from many scholars when it comes to limiting the number of overall tasks, meaning the consolidation of as much like tasks as possible so as to avoid variability in tasks and keep people more productive (Camden, Nickels, Fendley Phillips, 2017). Separating the people-based and non-people-based tasks would also tend to limit interruptions that the non-people task people are doing (Szumowska Kossowska, 2017). Anyhow, the manager explains that the consolidation of tasks did show some promise and at first seemed to coincide fairly well with the theorists when it came to the subject. However, there were some adjustments that were necessary and there are some interruptio ns that are just not preventable. There will always be the urgent email that comes through and the demands of clients do not always align clearly with what could happen in theory. Even if some people disagree, there are many in the scholarly sphere that suggest that the loss of performance occurs at the brain level and it is not just something that is perceived or guessed about (Al-Hashimi, Zanto Gazzaley, 2015). Even with the proverbial speed bumps when it came to translating the common feelings and research about multitasking to the practice of the small business in question, there was still the personal and internal perception that the variability of tasks and the commonality of interruptions led to decreased performance. There was the further perception that perhaps keeping half the tasks entirely with half the team and half the tasks with the other half of the team. To test this, there was a look at how things before in terms of perceived performance as well as measurable metrics such as service level agreement performance, quality of work done and so forth. There was then a compare and contrast with what happened after the changes were implemented. As noted already, there were some bumps in the road but those were ironed out by testing and experimentation. Generally, it can be said that the theory was solid and strong overall but that adapting that to the particular situation at hand wa s something that required some diligence and adjustments. This is to be expected as no cookie-cutter or general approach is going to work without at least some customization and details being hammered out. A key part of making things work is asking the hard questions, hammering out the details and making sure that the ownership and management is on board with letting the chips fall where they may rather than trying to force something that is not going to work. Other Topics While the task reassignment project was one of the major overhauls that the owner of the business engaged in, there were other challenges and questions that at were discussed. As was the intention, the author of this report touched upon a litany of topics and theories and the owner gave his feedback based on what he has seen and done as it relates to the topic. Before getting into that detail, it should be noted how the business came to be. As noted earlier, the manager is also the owner. The owner/manager initially started working in the private sector as an employee for another business. It came to be that he was considering doing his own business and operation within the same industry and he concurrently felt he could do things better than what he witnessed in his employee job. However, he had to scratch up the money to do so and he also had to have a contingency to keep himself afloat and his bills paid while he brought the business online. It took him about a year, but he used a ll of his own funds and transitioned from working for someone else to working on his own over the course of a year or two. The additional twenty or so employees that work for him now have been added in the two to three years since then. He is having to add a new head to his staff about once every month or two, on average. This is obviously a break from what is seen with startup firms in Silicon Valley and other places that get significant amounts of venture capital and investment that allow a firm to lose money for months or years while they build up a consumer base and eventually become self-sufficient. The owner/manager interviewed for this report used all of his own money and still had to make ends meet from the inception of the business until it was self-sufficient for at least him. Now that it is self-sufficient and self-sustainable, he is much happier and feels that the long hard and effort was all worth it, even with the trial and error. He says that some frameworks and ideas in the scholarly and news sphere have been helpful but he also feels that every business has to devise a framework and solution that works for their industry, their geographical area and their goals. In many ways, this aligns very well with the verbiage and ideas put forth by many people in the scholarly sphere in that no solution or frameworks is entirely â€Å"plug and play† (Pullins, Timonen, Kaski Holopainen, 2017). As already noted, the author and the owner/manager segued through a number of theories and ideas surrounding small businesses and how they remain competitive and innovative. First up is the idea of shifting alignment of workloads, lot splitting and proper operation overlapping issues. It is perhaps more applicable to situations that involve manual labor and shop work. However, the topic could also be used in a way that applies to any job duties, task splitting and multi-tasking handling is of utmost concern. The owner/manager says that the aforementioned splitting and re-splitting of work is a good example of how this can at least be tried but that the details and context of the tasks being split, the people involved and the size of the business all matter a great deal. It became workable for his team but also said that perhaps it would be easier for a different or larger firm (Fernandes, Land Carmo-Silva, 2016). Speaking of company size, the topic of ethics came up and the owner manager explained that it is much easier to follow and enforce topics like utilitarianism, deontology, rights, duties and social contracts in a small business setting. However, his ability to devote a lot of money to entirely optional and cost-added corporate social responsibility efforts is much more constricted than it would be with a firm that has a much larger budget or pool of money (Grant, Arjoon McGhee, 2017). He also has spoken to a lot of other small business owners as well as people with larger firms and there is a disparate amount of ideas and concepts of what CSR really is and that the size of the business does matter. Put another way, Lowe et al (2016) says that â€Å"it would appear that social practice theories can be a useful analytical vehicle for academic analysis but cannot resonate with the modernist consciousness of the practical actor (Lowe, Rod, Kainzbauer Hwang, 2016; Bos-Brouwners, 2010). The author of this report quoted that line to the owner/manager and he said he whole-heartedly agrees. He says that even if a small business owner wants to do more to help society, the ongoing survival of the business has to be the primary priority. After all, what applies to small business may or may not apply to larger businesses, and for more than one reason (Rizzo Fulford, 2012). Even so, he knows that are people that could do better but do not, even if it is for vexing reasons. A real-world example of this is hand-washing practice in medical and surgical realms (Mortell, Balkhy, Thannous Long, 2013). As the conversation went on, it because clear to the author of this report that a major takeaway from this dialog is that focusing on the size of the business is important when comparing theory and practice. For example, it makes complete sense to the owner/manager that people that are cultural sensitive and/or multilingual is a good thing to focus on. However, the owner/manager also notes that finding the right job skills and traits is more important and this sometimes leads to those cross-cultural skills becoming an opportunity cost (Visser, 1995). Even with that downside, the owner/manager notes that he is able to be much more flexible and agile than a larger business ever could be. This is obviously due to the lesser amount of personnel and hierarchy involved (Zontanos Anderson, 2004). Another important aspect of the change described for the author’s workplace is change management and business process management. The ability to change and evolve the business via business process management (BPM) is greatly amplified and easier to pull off with the owner/manager’s space due to the lower amount of people involved as well as the lesser amount of complexity. BPM is something that the owner/manager is very passionate about. He states he is always assessing and reassessing how jobs are done and how they could be done better. The task realignment example above is but one example, according to him. Regardless of what precise steps and options are used, there needs to be a constant focus on a process mindset so that not hing important is missed or passed over (Smart, Maddern Maull, 2009). The owner/manager says that he is fortunate because he is in the service industry because he feels that effecting major change in a business, small or large, is much easier when speaking of a service sector industry like his rather than one that is based on manufacturing, physical products and so forth. In addition to the passion to perfecting things, he says that he tries to avoid relying on necessity to be the mother of invention. In other words, he will try to perfect a solution or fix a problem right away and will not wait until there is a major crisis or problem. He feels that this is a competitive advantage for him given that he acts when there is the chance rather than waiting for a problem and he is in an industry and business size realm that allows for quick adjustments and changes (Radovic, 2013). Even with the above agility and some of the luxuries seen with small businesses like his, the owner/manager notes that there are legal roadblocks and other challenges that all businesses have to deal with on some level such as human resources, tax compliance and so forth. Rather than having dedicated people such as an HR manager, there are instead people that wear a lot of â€Å"hats† within the firm. For example, a lot of the HR functions of the firm are done by the owner/manager and the supervisors (Brady Lowell, 2014). The owner/manager notes that not dealing with HR is not an option and outsourcing to other people or firms just tends to complicate things even more (Brook Milner, 2014). One other important aspect of innovation and learning that the manager/owner swears by is the use of networking. Even though there are the common learning and innovation channels of scholarly journals and the like, the use of networking with other people can be very useful and can bridge a lot of the gaps that exist between theory and practice and this is something that both the owner/manager and the literature agree on (Ford Mouzas, 2013). The lessons to learn when it comes to growing and expanding a business is one subject that smaller businesses would be wise to learn about when they can (Phillips, 1996). Before wrapping up, there are a few other quick topics that were touched upon between the author of this report and the owner/manager that was interviewed. One example is that the owner/manager asserted that information technology and the ability to multi-task at least somewhat is something that all small business owners and employees must do well to thrive (Harrison, Myktyn Riemenschneider, 1997). Further, while some of the laws and regulations vary not depending on size, there are other laws and regulations that specifically pertain to small business are often different and that will affect the operational constraints in question. This is something the owner/manager has learned first-hand (Zachary, 2014). Because if the disparate nature of the laws in large and small businesses, along with the finances and resources that are commonly available, the strategy options and the strategies selected are going to be different (Ghezal, 2015). When it comes to division of duties and assignm ents, family struggles and squabbles can enter the fray. This is something prevalent in the literature and the owner/manager concurred even though he is the only owner of his business and thus does deal with this himself (Devins Jones, 2016). The family angle could be an issue in the business that the author referenced but it did not come up in the particular situation mentioned. This would obviously be less of an issue in firms that are owned by people that are not related and/or that are publicly traded on a stock exchange. In those cases, whomever is a shareholder would have the power with the biggest power going to those that owned the most shares. Again, the owner manager does deal with this personal but he has seen many of his peers encounter some major power struggles and issues (Sepe, 2017; Ramsay, 2015). Conclusion In the end, the owner/manager interviewed for this report was quite limited and unique. Even so, he says that this was clearly by design and he would rather be the main person that operates the company. He knows that the business will likely cease to exist if he were to pass away or become disabled. Even so, he is fine with that and is not concerned about passing on a legacy to someone else at this time. In many ways, he breaks the mold that is described in a lot of the literature. However, he also confirms a lot of other stories and frameworks. Essay Prompt With close reference to a small business of your choice, submit a written analysis highlighting the relationship of theory to practice. This might refer to your own working environment, or to one in which you have worked. Your work should address the following: 1. An analysis of your research process and experience (20%). Set out here how you came to identify and approach the owner manager, and your research methodology. 2. Then, more broadly, an exploration of the business behaviour of the people concerned and how it meets or doesn’t meet particular evidence, theories and frameworks in the Small Business Management literature. You must demonstrate the ability to analyse your evidence critically, making links to theory. Please make sure that any strong statements are supported by evidence, example and reference. Quotation from your interview(s) should be referenced in the normal way. Word limit is 3,000 words References Al-Hashimi, O, Zanto, T, Gazzaley, A 2015, Neural sources of performance decline during continuous multitasking,  Cortex; A Journal Devoted To The Study Of The Nervous   System And Behavior, 71, pp. 49-57, MEDLINE, EBSCOhost, viewed 3 May 2017. Bos-Brouwers, HJ 2010, Corporate Sustainability and Innovation in SMEs: Evidence of Themes and Activities in Practice,  Business Strategy The Environment (John Wiley Sons,   Inc), 19, 7, pp. 417-435, GreenFILE, EBSCOhost, viewed 3 May 2017. Brady, K, Lowell, W 2014, Theory vs. Practice: A Study of Business Consultants and Their Utilization of Corporate Culture in Daily Practice,  Journal Of Practical Consulting, 5, 1, 1-22, Business Source Premier, EBSCOhost, viewed 3 May 2017. Brook, C, Milner, C 2014, Reflections on ‘creative’ action learning in business education: some issues in its theory and practice,  Teaching In Higher Education, 19, 2, pp. 126-137, Academic Search Premier, EBSCOhost, viewed 3 May 2017. Camden, A, Nickels, M, Fendley, M, Phillips, C 2017, A case for information theory-based modelling of human multitasking performance,  Theoretical Issues In Ergonomics   Science, 18, 3, pp. 266-278, Business Source Premier, EBSCOhost, viewed 3 May 2017. DEVINS, D, JONES, B 2016, STRATEGY FOR SUCCESSION IN FAMILY OWNED SMALL BUSINESSES AS A WICKED PROBLEM TO BE TAMED,  Vezetà ©studomà ¡ny   / Budapest Management Review, 47, 11, pp. 4-15, Academic Search Premier, EBSCOhost, viewed 3 May 2017. Fernandes, N, Land, M, Carmo-Silva, S 2016, Aligning workload control theory and practice: lot splitting and operation overlapping issues,  International Journal Of Production   Research, 54, 10, pp. 2965-2975, Business Source Premier, EBSCOhost, viewed 3 May 2017. Ford, D, Mouzas, S 2013, The theory and practice of business networking,  Industrial   Marketing Management, 42, 3, pp. 433-442, Business Source Premier, EBSCOhost, viewed 3 May 2017. Ghezal, S 2015, ASSESSING THE VALIDITY OF A SMALL BUSINESS STRATEGY INSTRUMENT USING CONFIRMATORY FACTOR ANALYSIS,  International   Journal Of The Academic Business World, 9, 1, pp. 79-87, Business Source Premier, EBSCOhost, viewed 3 May 2017. Grant, P, Arjoon, S, McGhee, P 2017, Reconciling Ethical Theory and Practice: Toward Developing a Business Ethics Pedagogical Model,  Business Professional Ethics   Journal, 36, 1, pp. 41-65, Business Source Premier, EBSCOhost, viewed 3 May 2017. Grigorios, Z, Alistair R, A 2004, Relationships, marketing and small business: an exploration of links in theory and practice,  Qualitative Market Research: An International Journal, 7, 3, pp. 228-236, Business Source Premier, EBSCOhost, viewed 3 May 2017. Harrison, D, Mykytyn Jr., P, Riemenschneider, C 1997, Executive Decisions About Adoption of Information Technology in Small Business: Theory and Empirical Tests,  Information   Systems Research, 8, 2, p. 171, Computer Source, EBSCOhost, viewed 3 May 2017. Lowe, S, Rod, M, Kainzbauer, A, Hwang, K 2016, Exploring the perceived value of social practice theories for business-to-business marketing managers,  Journal Of   Organizational Change Management, 29, 5, pp. 751-768, Business Source Premier, EBSCOhost, viewed 3 May 2017. Mortell, M, Balkhy, H, Tannous, E, Jong, M 2013, Physician defiance towards hand hygiene compliance: Is there a theory-practice-ethics gap?,  Journal of The Saudi Heart Association, 25, 3, pp. 203-208, MEDLINE, EBSCOhost, viewed 3 May 2017. Phillips, PD 1996, Business retention and expansion: Theory and an example in practice,  Economic Development Review, 14, 3, p. 19, Business Source Premier, EBSCOhost, viewed 3 May 2017. Pullins, E, Timonen, H, Kaski, T, Holopainen, M 2017, An Investigation of the Theory Practice Gap in Professional Sales,  Journal Of Marketing Theory Practice, 25, 1, pp. 17-38, Business Source Premier, EBSCOhost, viewed 3 May 2017. Radovi?, R 2013, Business Challenges and Design: Theory and Practice in the Furniture Industry in the Republic of Croatia,  Business Systems Research, 4, 2, pp. 79-93, Business Source Premier, EBSCOhost, viewed 3 May 2017. RAMSAY, I 2015, Increased Corporate Governance Powers of Shareholders and Regulators and the Role of the Corporate Regulator in Enforcing Duties Owed by Corporate Directors and Managers,  European Business Law Review, 26, 1, pp. 49-73, Legal Collection, EBSCOhost, viewed 3 May 2017. RIZZO, A, FULFORD, H 2012, UNDERSTANDING SMALL BUSINESS STRATEGY: A GROUNDED THEORY STUDY ON SMALL FIRMS IN THE E.U. STATE OF MALTA,  Journal Of Enterprising Culture, 20, 3, pp. 287-332, Business Source Premier, EBSCOhost, viewed 3 May 2017. Sepe, SM 2017, Board and Shareholder Power, Revisited,  Minnesota Law Review, 101, 4, pp. 1377-1455, Legal Collection, EBSCOhost, viewed 3 May 2017. Smart, P, Maddern, H, Maull, R 2009, Understanding Business Process Management: Implications for Theory and Practice,  British Journal Of Management, 20, 4, pp. 491- 507, Business Source Premier, EBSCOhost, viewed 3 May 2017. Szumowska, E, Kossowska, M 2017, Motivational rigidity enhances multitasking performance: The role of handling interruptions,  Personality Individual Differences, 106, pp. 81-89, Academic Search Premier, EBSCOhost, viewed 3 May 2017. Visser, C 1995, Theory and practice: a defense of small business language strategies,  European Business Journal, 7, 2, p. 49, Business Source Premier, EBSCOhost, viewed 3 May 2017. Weightman, M, McCulloch, K, Radomski, M, Finkelstein, M, Cecchini, A, Davidson, L, Heaton, K, Smith, L, Scherer, M 2017, Further Development of the Assessment of Military Multitasking Performance: Iterative Reliability Testing,  Plos ONE, 12, 1, pp. 1-19, Academic Search Premier, EBSCOhost, viewed 3 May 2017. Zachary, M 2014, U. S. EMPLOYMENT LAW AND SMALL BUSINESS MANAGEMENT—ILLUSTRATIVE THEORY AND CASES,  Global Business Economics Anthology, 2, 127-137, Business Source Premier, EBSCOhost, viewed 3 May 2017. View or Download this full document in (.docx) format. --> Open Full Document Open full document and source list OR Order A Custom Written Essay Order a one-of-a-kind custom essay on this topic

Research and analysis in applied accounting - Free Essay Example

Sample details Pages: 20 Words: 5850 Downloads: 3 Date added: 2017/06/26 Category Statistics Essay Did you like this example? I. INTRODUCTION a. Topic Chosen and its context In this Research and Analysis project Report, I will be analyzing the financial performance of Ââ€Å"Royal Dutch Shell Plc†. Don’t waste time! Our writers will create an original "Research and analysis in applied accounting" essay for you Create order I will be identifying and analyzing the factors effecting the financial position of Royal Dutch Shell plc. The role of non-financial performance indicators which effects the financial position of the company will also be kept in mind. I will analyze the financial position of the company compared to its performance with previous years, with the industry and with its rival (BP). The word Shell will be used in place of Royal Dutch Shell as it is convenient. I will base my comparison on figures of audited annual accounts for the last 3 years. Financial analysis is an effective way of analyzing companyÂ’s performance. Ratio Analysis is the technique, which will mainly be used for financial analysis. My analysis will also be based upon the comparison of key ratios with main rival of Shell, which will indicate some of the core strategies in seeking a competitive position to achieve its purposes. I will use ‘Life CycleÂ’ model to analyze my findings on those markets, which materially contribute towards the companyÂ’s financial results. Then I will use PEST analysis to analyze different stages identified and nature of ‘Life CycleÂ’. My conclusions will be based on current situation of the company as compared to past years and future expectations using the techniques mentioned above. b. Reasons for selection Reasons for selection of the topic and organization are as follows:  § Wide Information base: Shell, being a public limited company and one of the largest oil and gas concern in the finance sector the availability of timely, relevant, reliable information was an added advantage.  § Relation to my studies: While studying my ACCA, one of the important skills which I have learned is the ability to analyze the financial statements, and such a comprehensive research and analysis project will definitely help in developing the same  § The company: Ââ€Å"Other reason is the investment prospective and size of the company. The company unveiled the largest expenditure program in its history, spend $36bn in 2008 compared to $25bn last year, as it seeks new sources of oil and gas to boost reserves and production and to better exploit its existing resources†. (Ft.com, July2008) Ââ€Å"Standard Poors, the credit ratings agency, downgraded its long-term rating for BP, the Oil and Gas Company, and upgraded Royal Dutch Shell, BPs closest rival, illustrating the widening perception of the two companyÂ’s circumstances. SP noted Shells reserves replacement success and said current major projects should sustain its production plateau in the next decade†. (Ft.com, September 2008) c. Aims and Objectives The aims and objectives contains the comparison of the financial performance of the petroleum sector to assess the worth of the company in its operational industry .To get an idea about the attitude of the management towards the operations of the company by assessing the companyÂ’s cash flow position compared to its profits. Also to analyze the risks faces by the company I will take in to account Solvency, Liquidity and Capital structures. d. Research Approach ACCA provides a complete guide about different sections of the report, and also this provides the opportunity to plan and think to allocate my time carefully. This planning will help me to concentrate on each section of the report so that I can focus on core and important areas of the report. This also enables me not to overspend my time in explaining any section of the report. Information mainly collected from annual reports of the company and also different sort of other sources like ACCA text books, internet, newspaper, library etc. Traditional ratio analysis has been used to measure and compare the financial performance of the company over last 3 years with its rivals. Ratio analysis will focus on the following key ratios:  § Profitability Ratios This ratio is the reflection of how well the business is performing in term of profits in order to pay the shareholders. Key ratios are: a. Gross Profit Margin b. Operating Profit Margin c. Return on Average Capital Employed  § Liquidity Ratios Liquidity ratio refers to the state of an assetÂ’s nearness to cash to meet business short term obligations as they fell due. Key ratios a. Current Ratio b. Quick ratio (Acid Test Ratio)  § Efficiency Ratios These ratios show how efficiently the business is employing those resources invested in fixed assets and working capital. Ratios are: a. Debtor Days b. Creditor Days  § Risk Ratios These ratios are used to assess how healthy and sound the business is in term of capital or finances. Ratios are a. Gearing Ratio b. Interest Cover  § Investors Ratios Both present and prospective shareholders look at these ratios to measure their return and to make economic decisions. Key ratios are a. Earnings per Share b. Diluted Earnings per Share II. INFORMATION GATHERING a. Sources of Information Used The information has been collected from different secondary sources for the preparation of this project. Main secondary sources which are use to gather information is as follows:  § Annual Accounts: The annual audited accounts of Shell are the main secondary source of information to use in this project. These annual audited accounts were available from stock exchange. As it supposed to be accurate and reliable thus provides me with an ideal source of annual accounts of the company. I have used only the audited annual accounts for the last three years of the company though unaudited quarterly review until July was available, to make certain that only reliable and accurate source of information is used in my research and analysis project. These audited annual accounts provides me all the information for the last three years which is essential in computing key financial ratios and also to make a comparison with rivals and industry averages of the company. Annual accounts of the rivals for the last three years are also used to make comparison with the Shell.  § Financial AnalystÂ’s Report: They are professional people and their views are independent and their analysis helped the shareholders making economic decisions, which in turns affects the very existence of the company.  § KaplanÂ’s Tutorial Text: KaplanÂ’s tutorial text for Bsc (Hons) in Applied Accounting also helped me a lot for gathering information and also about the different requirements of the reports. It also helped in focusing a particular section of the report and also helped in overall design of the project so that nothing is missing in the project.  § News Papers: Getting in touch with the business section of leading newspapers like The Times, The Independent, Daily Express and The Telegraph was very useful as it provided me guidance on the economy overall and as well the movement in the share prices of different companies. b. Methods Used To Collect Information To collect information various methods are used like,  § Internet: Ââ€Å"Internet offers a speedy and impersonal way of getting to know the basics of the services that a company provides†. (BPP 2005 Paper 3.4) I visited www.shell.com to access the financial reports of the company and press releases. I also visited www.bp.com to get information about the rival company of Shell for the purpose of comparison. Also I visited www.ft.com which really helped me a lot for the up to date information about the Shell and BP. I have also visited www.wikipedia.org to get information which helped me a lot to understand the oil and gas industry. In addition I visited the www.bbc.co.uk to get the latest news and important interviews.  § Use of the E-mail: For communication with Shell people I use to e-mail them during my research whenever I want to get some important information. They responded quickly to answer my query.  § Library Research: Libraries proved quite helpful so some libraries in London, Kaplan Financial College library and City Business Library in Moorgate London for general reading of the newspapers, journals, different books, magazines to get important information about Shell and BP. I spend most of my time in city business library, where I was able to get specific information through different CD ROMS which included different databases search designed specifically for getting information about different companies. Some of the CD ROMs are:  § Financial Analysis Made Easy: This database provided the detailed key financial data in the form of profit and loss accounts and the balance sheet. Also it helped me to get important ratios of the Shell and BP and their comparison with the preceding years in the form of graphs.  § Marketing and Business Information Centre (Data Monitor): This database provided vital information regarding the company, industry and market news for the research and analysis. This database contains records of hundreds of companies in UK and worldwide. When I looked at the Shell data, it really helped me by providing the overview and the detailed information. Then same thing was true for its rival BP. c. Limitations in the Information Gathering A number of difficulties I have faced sometime in getting the required information. For instance, I was expecting to get more information from the newspaper, but actually it was not. The newspaper only provides information about a particular date and some events but in depth information cannot be obtained and also articles are found in different newspaper i.e. nothing is new than others. Similarly when I went to City library, I was not aware of using FAME database, so when I tried to get information from database it took me too long. Moreover it only provides me the financial data in the form of graphs. Another problem which I have faced is the information overload on the internet. Whenever I tried to search something on the net it gives me too many results which some time confused me which information I should use and which is not. d. Accounting Technique Used and Limitations In this report to analyze the financial performance of Shell comparing to BP ratio analysis has been used. Ratios are important tool in analyzing the financial performance of the company. Ratios are used because shareholders and potential investors are primarily concerned with receiving an adequate return on their investment. An earnings per share is a key ratio that is to be used to determine the returns on shareholderÂ’s fund. Suppliers and lenders are concerned with the security of their debt or loan. So they are mainly focused on the gearing level the company is having and also the interest cover. More over management is concerned with the trend and level of profits, so ratios are the main measure of the success. Furthermore, managementÂ’s bonuses are linked to the profits of the company. I have calculated the key ratios in an appendix from 2006-2008 for Shell and BP and they did analyze the results. Ratios were used as a tool to assist analysis and to focus attention systematically on important areas. Ratios summarize information in an understandable form and also helped me to identify trends and relationships. Ââ€Å"There are also limitations of financial statements and ratio analysis as they are based on the past and ratios are not predictive if they are based on historical information. Ratios ignores any future action which is or to be taken by management. Another limitation faced by ratio analysis is the fact that the ratios results may be distorted if there are differences in the accounting policies†. (Kaplan Financial Study Text Paper F7) In all, Ratios have limitations but are still regarded as the best tool for analyzing the financial performance of the business and so I also used it. III. ANALYSIS In this section of the report I will explain and analyze the financial performance of Shell and will compare its results with BP.I will also explain ShellÂ’s financial position in the current year. a. Company History: Ââ€Å"The Royal Dutch Shell Group was created in February 1907 when the Royal Dutch Petroleum Company and the Shell Transport and Trading Company Ltd of theUnited Kingdommerged their operations. This move was largely driven by the need to compete globally with the predominant American oil company† (www.wikipedia.org) b. Financial Analysis: Here is the analysis of the financial data of Shell (Revenue, GP and NP) over the last three years.  § The revenues in 2008 were ($458.4 billion) 28.8% higher than in 2007, when they were ($355.8 billion) 11.6% higher than in 2006. (Appendix)  § The oil and gas prices was One of the main reasons of increase in revenues in 2008  § Ââ€Å"Brent crude oil prices average $97.14 per barrel in 2008 compared with $72.45 in 2007, while West Texas Intermediate average $99.72 per barrel compared with $72.16 a year earlier. Oil prices saw great fluctuation in 2008†. (Annual Report Shell 2008)  § A 6% increase in Gross Profit of Shell in year 2008 and 2007 as compared to gross profit in year. (Appendix)  § Its shows an increase in production costs in line with increase in revenues on high margin products.  § Earnings ($26.5 billion) were lower by 17% in 2008 compared to 2007, when they were ($31.9 billion) 21% higher than in 2006 ($26.3 billion). (Appendix) Ââ€Å"The decrease in 2008, compared with 2007, reflected the effect of declining oil prices on inventory in the second half of the year, lower production volumes, lower realised refining margins and higher operating costs. These more than offset the positive impact on earnings from higher realised oil and gas prices as well as higher LNG and GTL product prices†. (Annual Report Shell 2008) Ââ€Å"Second quarter 2009 reported earnings were $3,822 million compared to earnings of $11,556 million in the same quarter a year ago†. (2nd quarter results 2009, www.shell.com )  § Earnings By Business Segments : All figures in this table are in $million The table shows that earnings in 2008 were higher by 47% in Exploration Production, Gas Power and Oil Sands segments as compare to 2007. On other hand earnings were lower by 100% in 2008 as compare to 2007 in Oil Products, Chemicals and Corporate segments. This 100% reduction in last three segments causes overall reduction of earning in 2008. Ââ€Å"In the Second quarter Exploration Production segment earnings were $1,334 million compared to $5,881 million a year ago. Earnings compared to the second quarter 2008 reflected the impact of significantly lower oil and gas prices on revenues, lower oil and gas production volumes, higher exploration expenses and non-cash pension charges, which were partly offset by lower royalty and tax expenses†. (2nd quarter results 2009, www.shell.com ) Comparison of Shell with BP  § Revenue Growth: Shell and BP revenue over the last three years is shown in the graph: Growth in Revenue in $ Million Shell and BP revenue showed a consistent growth over a period of 3 years. In 2008 Shell revenue 26.9% higher than BP. Which shows that Shell growing consistently as Shell revenue were higher 25.2% 19.9% from BP in 2007 2006 respectively. (Appendix) a. Profitability Ratios Ââ€Å"The profitability of a company is important and a key measure of its success. The figures shown in the profit and loss account mean very little themselves. However, by expressing them as a percentage of sales they become much more useful. The figures can then be compared with previous years or with other similar companies†. (Student Accountant ACCA Magazine, Ââ€Å"Christopher†, 1999.) Gross Profit Margin: Gross profit margin shows earning on sales of a company. In the 2nd quarter of 2009 the gross profit margin has fallen 62% compared to last yearÂ’s 2nd quarter results. An indication of high profit margin is that the company earned well on sales by keeping overhead cost in control. Gross profit margin of 2008 is lower than previous years. Net Profit: Shell net profit margin dropped by 3.2% to 5.8% in 2008 from 9% in 2007. And margin in 2006 was 8.3%.BP net profit margin dropped by 1.5% to 5.9% in 2008 from 7.4% in 2007. The 2006 margin was 8.4%. (Appendix) Growth in Net Profit Shell and BP (%) The profit margin is mainly used as an internal comparison tool. As there are different levels of expenditure involved it is therefore sometimes difficult to accurately compare the net profit ratio for different entities. As compared to BP ShellÂ’s net profit margin dropped by a higher percentage in 2008.On the other hand if we see the year 2007 the Shell profits are higher than the BP. Return on Average Capital Employed: ROACE reflects the ability of the company to utilize the resources i.e. capital in generating revenue. Capital employed consists of total equity, currant debt and non-current debts. The published segment level contains the computation and calculation of the tax rate and the minority interest components. The strong income generation is the only reason for change in ROACE from18% to 24% between 2006 and 2008. Ââ€Å"There is a significant decrease in the capital employed from 24% to 18% in 2008 as compare to 2007. A significant decrease in income attributable to shareholders is partly offset by an increase in capital employed, resulted in a decrease in ROACE of 6.0% in 2008(18%) compared to 2007 (24%). The 2006 figure was 23%†. (Appendix and Annual Report Shell 2008) Ââ€Å"ROACE is defined as the sum of the current and previous three quartersÂ’ income adjusted for interest expense, after tax, divided by the average capital employed for the period. In the 2nd quarter or 2009 the ROAC stands at 8.3% way below the 25.8% in the 2nd quarter of 2008†. (2nd quarter results 2009, www.shell.com ) On the other hand BP utilization of its capital resources was showing a sorry picture. BP ROCE has moved in a range of 16% to 19% between 2006 and 2008. BPÂ’s ROCE was 19% in 2006, and then reduced to 16% in 2007, followed by an increase of 1% to stand at 17%. This was due to lower income attributable to shareholders in 3 years time. This increase in 2008 was due to some increase in income attributable to shareholders. (Appendix) ROCE Shell and BP (%) The drop in oil price in the second half of 2008 had a significant impact on earnings. The strengthening of the dollar against other main currencies reduced the impact of ShellÂ’s investment plans on capital employed. b. Efficiency Ratios Debtor Days ShellÂ’s receivable days has fallen from 76 days in 2007 to 65 days in 2008. The figure for 2006 was 68 days. This was due to the effective and better controlled credit policy. (Appendix) BP on the other hand, showed increase in its collection to 30 days in 2008 from 49 days in 2007. The 2006 figure stands at 53 days. All this reflected an aggressive and comprehensive credit control policy and ability to collect from customers. (Appendix) Creditors Days The payment to creditors from Shell showed improvement in payment to creditors in 2008 if we compare the figures to last three years. As creditors days reduced to 78 days in 2008 from 93 days in 2007, while the figure in 2006 was 87. This improvement shows that company has liquidity to pay off its debts and also helped in making stronger relationship with creditors, which could be Suppliers, lenders. (Appendix) BPÂ’s creditorÂ’s days showed reduction over a period of 3 years i.e. from 82 days in 2006 to 78 days in 2007 and more improved to 46 days in 2008 which showed a good sign for the company. (Appendix) c. Liquidity Ratios Current Ratio Ââ€Å"As short-term creditors prefer a high current ratio since it reduces their risk. The current ratio measures the adequacy of current assets to meet the companyÂ’s short-term liabilities as they fall due. Traditionally, a current ratio of 2:1 or higher was regarded as appropriate for most businesses to maintain creditworthiness. However, more recently a figure of 1.5:1 is regarded as a norm†. (Kaplan Financial, Paper F7 Study Text) Current ratio for Shell in 2008 was 1.1 and remained Constant between 2006 and 2007 to stand at 1.2. This shows better position for Shell and its ability to pay short term liabilities as they fall due. (Appendix) BP current ratio was also healthy between 2006 and 2007, but in 2008 the ratio was below 1 which may be not a good sign for short term creditors. But it was ok as for as it remains near to 1. (Appendix) Ââ€Å"One drawback of the current ratio is that inventory may include many items that are difficult to liquidate quickly and that have uncertain liquidation value. SO the quick ratio is an alternative measure of liquidity that does not include inventory in the current assets†. (Paper3.6, BPP Professional Education, June 2007) Quick Ratio Ââ€Å"The quick ratio also known as the acid test ratio eliminates inventory from the currant assets. It provides the acid test of whether the company has sufficient liquid resources (receivables and cash) to settle its short term liabilities. Normal level for quick ratio ranges from 1:1 to 0.7:1†. (Kaplan Financial, Paper F7 Study Text) For Shell, liquidity ratio remained unchanged within the industry standards between 2006 and 2008 to stand at 0.9. This shows the companyÂ’s ability to pay short liabilities from most liquid resources i.e. receivables and cash not inventory. (Appendix) BPÂ’s quick ratio showed a sorry picture and remains unchanged on 0.7 between 2006 and 2008, as it was standing at the danger level of 0.7 meaning that BP is not having enough liquid resources to pay off the liabilities due. (Appendix) d. Risk Ratios Gearing: Ââ€Å"Gearing is the relationship between the companyÂ’s fixed return capital and its equity capital. Gearing ratio indicates the degree of risk attached to the company and the sensitivity of earnings and dividends to change in profitability and activity level. High geared businesses uses large proportion of fixed return capital, so there are greater chances of insolvency and ultimately return to shareholders grow proportionately more if profits are growing. While low geared businesses provide scope to increase borrowings when potential profitable projects are available and can usually grow more easily†. (Kaplan Financial, Paper F7 Study Text) Gearing levels in (%) (2006-2008) Shell maintained smooth profits and more suitable assets for security in order to make use of gearing successfully. ShellÂ’s gearing level increased in 2008 due to more debts taken as compared to 2006 and 2007. Gearing was 23% in 2008 compared to 17% in 2007. The gearing ratio was 15% in 2006. The increase was due to rise in the total debt. On the other hand, BP gearing level was also high standing between 36% to 28% with 36% in 2008 compare to 28% in 2006, while 2007 figure was 33%, which is higher than Shell. High level of gearing means high risk to business, but this is compensated by a significant increase in profits and the returns to the shareholders. So Shell can borrow more easily in future. Interest Cover Ââ€Å"CompanyÂ’s interest cover indicates the ability to pay interest out of profits generated. Low interest cover indicates to the shareholders that their dividends are at risk (because most profits are use to pay interest payments) and the company may have difficulty financing its debts if its profits fall†. (Kaplan Financial, Paper F7 Study text) ShellÂ’s interest cover has decreased to 42 times in 2008 compared to 45 times in 2007. The interest covers for 2006 was 38 times. This shows ShellÂ’s ability to finance its debts and the ability to pay interest out of the profits for sure. As investors are interested in the risk level the company is in, it is a healthy sign. Interest Cover in Times (2006-2008) For BP, there is an increase of interest cover to 30 times as compare to 29 times in 2007 but in 2007 there is a huge reduction in interest cover to 29 times from 49 times in 2006 which clearly indicates the inability of BP to finance its debt and to pay interest out of profits generated. That makes BP riskier than Shell for investment purposes. e. Investors Ratios Earnings per Share (EPS): Ââ€Å"Earnings per Share for Shell decreased in 2008 from $5 in 2007 to $4.27 in 2008. This was due to decline in profits followed by the repurchase of the shares, which causes a net decrease of 105 million in the number of ordinary shares outstanding as a result of share buybacks. As widespread the use of the EPS as a yardstick for investment decisions. Share price of company might fall if it looks as if EPS is going to be low. EPS increased to $5 in 2007 compared to $3.97 in 2006, this was due to decrease in the number of ordinary shares in 2007 as company repurchased its 112 million shares of common stock for cancellation at a gross cost of $4.4billion.this purchase reduced the number of shares outstanding to 1.7% in 2007 and by 7.3% in total since the commencement of share repurchases following the unification into Royal Dutch Shell and successful completion of Royal Dutch Minority tender (August 2005)†. (Annual Report Shell 2008) Ââ€Å"In the first six months of 2009 the EPS for Shell is $1.19 compared to the six month figure of $3.34 of the same period of 2009 (2nd quarter results 2009, www.shell.com ) Earnings Per Share in $ (2006-2008) Ââ€Å"BPÂ’s Basic Earnings per Share increased in 2008 to $1.13 from $1.09 in 2007. This was due to the appreciation in the profits followed by the repurchase of shares, which causes a net decrease of 373 million in the number o shares. Basic EPS decline by 0.01 to stands at $1.09 in 2007 compared to $1.10 in 2006. This was due to the declining of profits of BP†. (BP Annual Report 2008) Diluted Earnings per Share(DEPS) : Ââ€Å"Diluted Earnings Per Share attempts to alert the shareholders to the potential impact on the Earnings per Share due to change in equity share capital in future owing to circumstances which exist now-known as dilution. The most common type of dilution is an option or warrant which gives the holder right to buy shares at time in future at predetermined price†. (Kaplan Financial, Paper F7 Study Text) Diluted Earnings Per Share in $ (2006-2008) ShellÂ’s DEPS reduced due to the reduction in the profits and number of shares to $4.26 in 2008 compared to $4.99 in 2007, while it was $3.95 in 2006. BPÂ’s DEPS increased to $1.12 in 2008 from $1.08 in 2007. The figure was $1.09 in 2006. The main reason for this was increase in profits despite shares in numbers was reduced. (Appendix) f. Cash Flow Statement: ShellÂ’s cash flow from operating activities has increased by 27% reaching a record level of $43.9 billion in 2008 compared with $34.5 billion in 2007 and $31.7 billion in 2006. This improvement in cash flow from operations was a result of reduces working capital in 2008 compared to 2007. The increase in the operating activity in 2007 mainly because of increase in income as well as a reduction in taxation paid in 2007 compared to 2006. Ââ€Å"In 2009, ShellÂ’s cash flow from operating activities reduced in the first two quarters to stands at $8478 million compared to $21,030 million in the same period of 2008†. (2nd quarter results 2009, www.shell.com ) Ââ€Å"BPÂ’s cash flow from operation declined to $24.7 billion in 2007 compared to $28.2 billion in 2006, but the cash from operating activity increased in 2008. This is menially because of increase in income†. (BP Annual Report 2008) Higher capital expenditure in 2008 compared to 2007 made Shell to use its Cash flow in investing activities i.e. $28.9 billion in 2008 compare to $14.6 Billion in 2007. Ââ€Å"In 2009, Shell continued to invest more with cash flow from investing activities stands at $(13,829) million in six months from $(12,275) million in 2007†. (2nd quarter results, www.shell.com) Ââ€Å"But there was less cash paid out in investing activity in 2007(-14.6 billion) as compare to 2006(-20.9 billion) and the main reason was that the proceeds from sale of asset was higher and les capital expenditure in 2007 as compare to 2006†. (Shell Annual Report 2008) Ââ€Å"BP was also having strong investment with $(22.8) billion in 2008 from $(14.8) billion in 2007. The figure for 2006 was $(9.5) billion†. (BP Annual Report 2008) In 2008, as Shell took more debts which results in ShellÂ’s cash flow from/used in financing activities reduced to $(9.4) billion in 2008 from $(19.4) billion in 2007.As Shell acquired Canada minority interest in 2007 resulting Cash flow from financing activity increased in 2007 from (13.7) billion in 2006. Ââ€Å"There was a small increase of BPÂ’s Net cash flow from/ used in financing activities from (9.0) billion in 2007 to (10.5) billion in 2008 menially because of more dividends paid and less repurchase of shares in 2008. Net cash from financing activities was reduced to $(9.0) billion in 2007 from $(19.0) billion in 2006†. (BP Annual Report 2008) Cash and Cash Equivalent of Shell and BP in Billions Ââ€Å"Cash and Cash equivalent of Shell reached 15.2 billion at the end of 2008, up by 57% as compare to 2007 figure of 9.6 billion. Which is good sign for Shell as there cash and cash equivalent was higher as well in 2007 as compare to 2006 figure of 9.0 billion. BPÂ’s cash and cash equivalent also increased to $8.2 billion in 2008 from $3.5 billion in 2007 and also up from 2006 level of $2.5 billion†. (Shell and BP Annual Report 2008) This shows that Shell has a sound position and has no problem what so ever in cash flow compared to its rivals. c. Non-Financial Analysis In this section of the report I will be analyzing the corporate social responsibility and the SWOT analysis. Corporate Social Responsibility (CSR) Ââ€Å"We recognise that our continuing business success depends on helping to meet the worldÂ’s growing energy needs in environmentally and socially responsible ways. To manage todayÂ’s business risks and deliver our strategy, it is critical that we maintain the trust of a wide range of stakeholders†. (Shell Annual Report 2008) Environmental Social performance Greenhouse Gas Emissions Ââ€Å"In 2008 despite growing business, Shell operated facilities emitted 75 million tons of GHGs, (measured on a CO2 equivalent basis), about 7 million lower than the previous year, and nearly 30% below 1990 levels†. (Shell Annual Report 2008) Flaring Since 2001, Exploration Production has reduced its natural gas flaring by more than 70%. In 2008, total flaring in Exploration Production dropped again mostly due to reduces flaring in Malaysia and Gabon, as investment and operational improvement programs showed result. In 2008 flaring levels in Nigeria were same as in 2007. Spills Shell has reduced the amount of oil and oil products spilled from operations for reasons, Shell can control, like corrosion or operational failures. Spills from sabotage or extreme weather, like hurricanes, which are harder to prevent, have fluctuated with events. In 2008 the number and amount spilled for operational reasons dropped again. Accident and Injuries Rate Ââ€Å"In 2008 26 people lost their lives working for Shell. That was five more than in 2007. Shell has improved in its accident on sites and injuries to staff by 50% reduction in it compared to 1999 by staff training and better working conditions†. (Shell Annual and Environmental Report 2008) SWOT Analysis Ââ€Å"SWOT analysis is a critical assessment of the strengths and weaknesses, opportunities and threats affecting an organization to establish its strategic goals and objectives, taking into account the environmental conditions. Strength and weaknesses analysis involves looking at the particular strengths and weaknesses of the organization itself and its product/service range. It is an internal appraisal. An analysis of opportunities and threats is con concerned with profit-making opportunities in the business environment, and with identifiable threats. It is therefore an external appraisal†. (BPP study text 2007, paper P3) Strength Ââ€Å"Shell strong financial position and manpower strength which dominate Shell as compare to their rivals. Shell invested more in 2008 as compared with last year, as it seeks new sources of oil and gas to boost reserves and production and to exploit existing resources better†. (www.ft.com 1-08-2008) Ââ€Å"Shell is world leader in oil and gas with technological advancement and project management skills and operations in 37 countries and majority interest in 40 refineries worldwide. The company is ranked third in 2008 Fortune Global 500 ranking†. (City Business Library DATAMONITOR) Weaknesses Ââ€Å"Hydrocarbon production has shown a decline in recent years due to the fields decline. Furthermore, natural gas production was also affected by declining fields in Malaysia, US, UK and Canada. This would adversely affect ShellÂ’s revenue. In 2008, Shell paid $120 million to settle a class action lawsuit led by the Pennsylvania State Employees Retirement Board due to the overstating oil and natural gas reserves and inflating stock prices from April 1999 to March 2004†. (City Business Library DATAMONITOR) Opportunities Ââ€Å"In order to cope up with worlds demand for energy, Shell is expanding business particularly in Asia. In 2008, Shell signed joint venture with Qatar and China, which would build an oil refinery and petrochemical products manufacturing complex in China†. (City Business Library DATAMONITOR) Ââ€Å"Shell is the latest company to invest in AustraliaÂ’s coal bed methane industry to develop projects in Australia and internationally†. (ft.com, June 2 2008) Threats Ââ€Å"Worlds energy demands on the rise, by 2015 easily accessible oil supplies of oil and gas will no longer keep up with demand†. (www.express.co.uk, 26 January 2008) Ââ€Å"Disruption in Nigeria has badly affected ShellÂ’s business. Nigeria is the worlds eighth-biggest oil exporter; however, the violence in the country affected the industry with the output cut by a fifth since early 2006, thus increasing the oil prices above $100 per barrel in 2008. In Nigeria, ShellÂ’ pipelines were attacked by the residents†. (bbc.com, 20-06-2008) IV. Conclusion: Shell is having a strong growth in its business throughout the world between 20062008 and this continues in 2009 as well. This growth is attributed to number of factors including high revenue generation, more investments and thus rising profits particularly in last one year. Moreover, ShellÂ’s ability to expansion in different continents of the world with 42% in Europe, 25% in Asia, Africa and Australia, 25% in America and 8% in other America is also a main factor in its growth. ShellÂ’s sales revenue has gone up by nearly 11.6% in 2007 and 28.8% in 2008.In 1st six month of 2009 its sales revenue has affected due to world economic slowdown and reduced to 49.7% compared to 1st six months of 2008. ShellÂ’s profits are also high in last three years but reduced 56% increase in six months of 2009 that is due to the reduction in oil price resulting by world economic downturn. Return on Average Capital Employed (ROACE) also showed a rise of 1% from 2006 to 2007 but a significant decrease in income attributable to shareholders in 2008 and partly offset by an increase in capital employed, resulted in a decrease in ROACE of 6.0% in 2008(18%) compared to 2007 (24%).However ROACE has reduced 17.5% in current yearÂ’s first two quarters to last year because company is facing threats in its operations in Nigeria, 8th biggest oil nation in the world and also due to the OPEC reduction in oil production. Shell generated a massive cash flow from its operation 34.5% up in 2008 to last year. This is due to strong income growth followed by less taxation. Whilst ShellÂ’s rival BP reported a huge decline in cash flow from operations showing its bad performance. Gearing (risk attached to business) increased to 23% in 2008 from 17% of 2007 mainly due to more borrowing i.e. more debt and also due to rise in operating lease obligations, as ShellÂ’s expansion allows it to borrow more. This increase in gearing is offset by significant rise in profits. Earnings per Share for Shell decreased in 2008 from $5 in 2007 to $4.27 in 2008. This was due to decline in profits followed by the repurchase of the shares. Despite of worlds slow economy a second quarter 2009 dividend has been announced of $0.42 per share, an increase of 5% over the US dollar dividend per share for the same period in 2008. Shell has also met its environmental and social obligations by implementing strong company-wide health, security, safety and environmental (HSSE) standards. The company has shown a considerable reduction in Greenhouse Gas Emissions, Flaring, and Spills and also company has implemented a strong waste minimization policy mainly due to the success of the mud treatment process. From social perspective, Safety-Fatal Accident Rate also reduced in recent years and also the Injuries-TRCF rate shown a decline. This was attributed to better working conditions, employees training and by following the health and safety laws. Summing up, Shell has strong market position and ranked best in the world. Shell is the energy company of the future. Its strong revenue generation ability, more expansions, and strong strategies in conducting business, its technological advancements its project management skills and sharper implementation of strategies will help the company to overcome the situation of global economic slowdown and to improve its performance.

The Demographic Characteristics Of The Senior Population...

CONCEPTUAL FRAMEWORK The demographic characteristics of the senior population has been changing over time. The rise in diversity and the geographic placement of seniors can provide an opportunity to examine their use of the social program SNAP. Characteristics of food insecurity such a geography and race correlate with higher rates of food insecurity and as these same characteristics continue to grow in the senior population. Since seniors have the lowest rates of SNAP participation versus other age groups, and their rates of food insecurity continue to grow it is important to examine what characteristics impact the likelihood of SNAP take up among this population. Demographic Shifts With increases in longevity, improved quality of life†¦show more content†¦In 2003 close to 12% of those aged 70-79 years of age faced the threat of hunger, and that rate grew to about 14% in 2013. For those aged 80 and older there was about a 2% increase in those facing the threat of hunger from 2003 to 2013, moving from around 9% to close to 11%. All three age groups saw sharp increases from 2007 to 2008, though the growth was more pronounced in the younger age group (Ziliak Gundersen, 2013, 2014). The pattern of higher rates among younger age groups of seniors also occurs in SNAP participation. There is a clear age gradient in SNAP participation among seniors. In 2009, older age categories had lower take-up rates among seniors. Seniors aged 60-64 had 34% take-up rate, those aged 65-69 had 33% take-up, seniors aged 70-74 had 29% take-up, those age 75-79 had 30% take up, and those older than 80 years of age had 28% take-up (Leftin, 2011). Like longevity trends, racial trends among the elderly are an important aspect when looking at demographics of the aging population. The growing aging population is also changing in composition. The aging populace is moving to be a more racially and ethnically diverse population than previous aging populations (Ortman Velkoff, 2014). In 2010, non-Hispanic whites made up 80% of adults aged 65 years or older, by 2030 that percent will decrease to 71.2% of the population 65 and older. It is predicted that by 2050 non-Hispanic whites will make up fewer than 60% of the

Use of Irony to Portray Morality in Lord Byrons Don Juan...

Use of Irony to Portray Morality in Lord Byrons Don Juan In Don Juan, George Gordon, Lord Byron, diverges from his name-sake characterization with an un-Byronic hero, Don Juan. The poem has been viewed as nihilistic and immoral. Actually there is plenty present in the first canto to show morality and hope for humanity. The poem should be viewed as the author intended: a satire on abuses of the present state of Society, an not an eulogy on vice... (Bostetter 9). Don Juan is a satire and therefore the morals present are shown in an ironic way. If fact, he wrote in such an obvious ironic fashion that it is hard to imagine the message was lost on many. His ironic theme is based on what people think and what they actually do. In effect†¦show more content†¦Byron pokes fun at the hypocritical nature of people. An overabundant curiosity in others affairs is certainly looked down upon yet it is rampant among people. Thus within in one sentence Byron points this idea out; people say one thing yet do another. This problem is central to what Byron sees as wrong with society, the basic hypocritical nature of people. There is truth to his thinking and by directing the reader to notice this, he can be said to be wanting to change that. Change usually does not occur until the fault is presented outright. Indeed, one form taken by the philosophic irony underlying the first canto suggests that cant and hypocrisy may endanger the very continuity of civilized tradition (Bostetter 22). The narrator, using his particular talent in prying in peoples affairs feels fit to speak of Juans upbringing. Instead of quarreling, had they been but both in,/ Their senses, theyd have sent young master forth/ To school, or had him soundly whippd at home,/ To teach him manners for the time to come (Byron 197-200). This presents a sort of paradox--the reader may find it immoral for the narrator to judge Juans parents and yet without this view Juans later episodes would have less meaning behind them; for we would not know the reasons behind his behavior. Perhaps we would find the narrators opinion of Juans parents biased. Therefore we are told more of their immoral behavior. They lived an unhappy sort of life,/ Wishing each other,

Verbal Communication Nonverbal Communication - 905 Words

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Nonverbal communication is behaviors and characteristics that convey meaning with out the use of words. Sometimes accompanying verbal messages, to clarify or reinforceRead MoreVerbal Communication And Nonverbal Communication1235 Words   |  5 PagesCommunication is a natural thing that we as human beings do every day whether we speak or not. There is two different types’ verbal communication and nonverbal communication. Verbal communication is when we communicate using words exchange in the form of speech in writing or oral. Nonverbal communication does not use words for exchange a message. We use body language, facial expressions, sign language, and eye contact among a few things (Adler, Elmhorst, Lucas, 2013). Read MoreVerbal and Nonverbal Communication1472 Words   |  6 Pagesresearch done on verbal and nonverbal communication. First, we need to know what verbal and nonverbal communication is. Nonverbal communication is the way in which people communicate, intentionally or unintentionally, without words. Nonverbal communication uses nonverbal cues including facial expressions, tone of voice, gestures, body position, movement, the use of touch, and gaze (Aronson, Wilson, Akert, 2013). Verbal communication is what a person actually says. This communication relies on the wordsRead MoreVerbal and Nonverbal Communication11225 Words   |  45 Pages Verbal and Nonverbal Communication When we are attempting to transfer our meaning to another person, we use three different modes, methods, or channels to carry our intentions. We use these modes to tell people who we are, how we experience the world, and the meaning we attach to our experience. We communicate verbally and nonverbally, and often with mixed signals or noise. When two persons, A and B, are attempting to communicate with each other, their communication is distorted by their personalitiesRead MoreNonverbal Communication : Non Verbal Communication890 Words   |  4 PagesLiterature Review According to some psychologists, non-verbal communication varies based on a person’s cultural background, more so in the individualism-collectivism dimension. Additionally, studies have indicated that intercultural diversities in how verbal communications are observed can be traced to differences in facial signs that individuals from West and East look for when detecting emotions (Serlin, Berger Bar-Sinai, 2007). Therefore, people from distinctive cultures are expected to beRead MoreNonverbal Communication And Non Verbal Communication1682 Words   |  7 Pagesâ€Å"Non-verbal communication is especially significant in intercultural situations† (Businesscom, 2015). In a business setting duties performed are the main reasons for an employees success, though studies and reports show that nonverbal communications can hinder or excel an employees relationships. Ultimately, nonverbal communications can benefit a business. With the communication of nonverbal there are many f orms that help to read body language and true feelings including: adapters, a body movement

History Argumentative Essay Example For Students

History Argumentative Essay Pre-Civil War New OrleansNew Orleans is a city in southern Louisiana, located on the Mississippi River. Most of the city is situated on the east bank, between the river and Lake Pontchartrain to the north. Because it was built on a great turn of the river, it is known as the Crescent City. New Orleans, with a population of 496,938 (1990 census), is the largest city in Louisiana and one of the principal cities of the South. It was established on the high ground nearest the mouth of the Mississippi, which is 177 km (110 mi) downstream. Elevations range from 3.65 m (12 ft) above sea level to 2 m (6.5 ft) below; as a result, an ingenious system of water pumps, drainage canals, and levees has been built to protect the city from flooding. New Orleans was founded in 1718 by Jean Baptiste Le Moyne, sieur de Bienville, and named for the regent of France, Philippe II, duc dOrleans. It remained a French colony until 1763, when it was transferred to the Spanish. In 1800, Spain ceded it back to F rance; in 1803, New Orleans, along with the entire Louisiana Purchase, was sold by Napoleon I to the United States. It was the site of the Battle of New Orleans (1815) in the War of 1812. During the Civil War the city was besieged by Union ships under Adm. David Farragut; it fell on Apr. 25, 1862. And thats what it says in the books, a bit more, but nothing else of interest. This is too bad, New Orleans , as a city, has a wide and diverse history that reads as if it were a utopian society built to survive the troubles of the future. New Orleans is a place where Africans, Indians and European settlers shared their cultures and intermingled. Encouraged by the French government, this strategy for producing a durable culture in a difficult place marked New Orleans as different and special from its inception and continues to distinguish the city today. Like the early American settlements along Massachusetts Bay and Chesapeake Bay, New Orleans served as a distinctive cultural gateway to North America, where peoples from Europe and Africa initially intertwined their lives and customs with those of the native inhabitants of the New World. The resulting way of life differed dramatically from the culture than was spawned in the English colonies of North America. New Orleans Creole population (those with ancestry rooted in the citys colonial era) ensured not only that English was not the prevailing language but also that Protestantism was scorned, public education unheralded, and democratic government untried.Isolation helped to nourish the differences. From its founding in 1718 until the early nineteenth century, New Orleans remained far removed from the patterns of living in early Massachusetts or Virginia. Established a century after those seminal Anglo-Saxon places, it remained for the next hundred years an outpost for the French and Spanish until Napoleon sold it to the United States with the rest of the Louisiana purchase in 1803. Even though steamboats and sailing ships connected French Louisiana to the rest of the country, New Orleans guarded its own way of life. True, it became Dixies chief cotton and slave market, but it always remained a strange place in the American South. American newcomers from the South as well as the North recoiled when they encountered the prevailing French language of the city, its dominant Catholicism, its bawdy sensual delights, or its proud free black and slave inhabitants; In short, its deeply rooted Creole population and their peculiar traditions. Rapid influxes of non-southern population compounded the peculiarity of its Creole past. Until the mid-nineteenth century, a greater number of migrants arrived in the boomtown from northern states such as New York and Pennsylvania than from the Old South. And to complicate its social makeup further, more foreign immigrants than Americans came to take up residence in the city almost to the beginning of the twentieth century. The largest waves of immigrants came from Ireland and Germany. In certain neighborhoods, their descendants dialects would make visitors feel like they were back in Brooklyn or Chicago. From 1820 to 1870, the Irish and Germans made New Orleans one of the main immigration ports in the nation, second only to New York, but ahead of Boston, Philadelphia, and Baltimore. New Orleans also was the first city in America to host a significant settlement of Italians, Greeks, Croatians, and Filipinos. THE AFRICANS:African Americans compile about half of the city of New Orleans population to date. How did this come about? Well, during the eighteenth century, Africans came to the city directly from West Africa. The majority passed neither through the West Indies nor South America, so they developed complicated relations with both the Indian and Europeans. Their descendants born in the colony were also called Creoles. The Spanish rulers (1765-1802) reached out to the black population for support aga inst the French settlers; in doing so, they allowed many to buy their own freedom. These free black settlers along with Creole slaves formed the earliest black urban settlement in North America. Black American immigrants found them to be quite exotic, for the black Creoles were Catholic, French or Creole speakers, and accustomed to an entirely different lifestyle. The native Creole population and the American newcomers resolved some of their conflicts by living in different areas of the city. Eventually, the Americans concentrated their numbers in new uptown neighborhoods. For a certain period (1836-1852), they even ran separate municipal governments to avoid severe political, economic, and cultural clashes. Evidence of this early cleavage still survives in the citys oldest quarters. Assisted suiced EssayMARDI GRAS:Many locals begin with a party on January 6 that includes a King Cake, a cake baked in the shape of a large doughnut, covered with icing and colored sugar of green, gold, and purple, the traditional Mardi Gras colors. Purple represents justice, green representing faith, and gold representing power. Inside the cake is a tiny plastic baby, meant to represent the Baby Jesus. Whoever gets the piece with the baby is crowned King or Queen and is expected to throw a party on the following weekend. Parties with King Cake continue each weekend until Mardi Gras itself finally arrives. The name Mardi Gras means Fat Tuesday in French. The day is known as Fat Tuesday, since it is the last day before Lent. Lent is the season of prayer and fasting observed by the Roman Catholic Church and other Christian denominations during the forty days and seven Sundays before Easter Sunday.Easter can be on any Sunday from March 23 to April 25, since the exact day is set to coincide with the first Sunday after the full moon following the Spring Equinox. Mardi Gras occurs on any Tuesday from February 3 through March 9. The Gregorian calendar, setup by the Catholic Church, determines the exact day for Mardi Gras. The celebration started in New Orleans around the seventeenth century, when Jean Baptiste LeMoyne, Sieur de Bienville, and Pierre LeMoyne, Sieur de Iberville founded the city. In 1699, the group set up camp 60 miles south of the present location of New Orleans on the rivers West Bank. They named the site Point du Mardi Gras in recognition of the major French holiday happenin g on that day, March 3. The late 1700s, saw pre-Lenten balls and fetes in the infant New Orleans. The masked balls continued until the Spanish government took over and banned the events. The ban even continued after New Orleans became an American city in 1803. Eventually, the predominant Creole population revitalized the balls by 1823. Within the next four years, street masking was legalized. But it must be remembered that although costumes are worn for both, Mardi Gras is not Halloween. Gore and mayhem may work for All Hallows Eve, but for Mardi Gras, glamour is de rigour. Feathers, beads, glitter, spangles all work well on Mardi Gras. Tuxedoes, ball gowns, and boas work. Fake blood and Freddie Krueger gloves do not. The early Mardi Gras consisted of citizens wearing masks on foot, in carriages, and on horseback. The first documented parade in 1837 was made of a costumed revelers. The Carnival season eventually became so wild that the authorities banned street masking by the late 1830s. This was an attempt to control the civil disorder arising from this annual celebration. This ban didnt stop the hard core celebrators. By the 1840s, a strong desire to ban all public celebrations was growing. Luckly, six young men from Mobile saved Mardi Gras. These men had been members of the Cowbellians, a group that performed New Years Eve parades in Mobile since 1831. The six men established the Mystick Krewe of Comus, which put together the first New Orleans Carnival parade on the evening of Mardi Gras in 1857. The parade consisted of two mule-driven floats. This promoted others to join in on this new addition to Mardi Gras. Unfortunately, the Civil War caused the celebration to loose some of its magic and public observance. The magic returned along with several other new krewes after the war. Rituals and traditions have also evolved with non-krewe members as well. Those in the heart of Carnival often begin their celebrating on January 6, and dont let up until Ash Wednesday , remember, Mardi Gras is the peak of the Carnival Season, but it s only one day. Therefore, New Orleans has officially established Lundi Gras on the Monday before Fat Tuesday because no one can get any work done as of the Friday before anyway. NEAT FACT:Senegambia, where I noted earlier that a lot of the original blacks had come from, had long been a crossroads of the world where peoples and cultures were assimilated in warfare and the rise and fall of great empires.An essential feature of the cultural materials brought from Senegambia as well as from other parts of Africa was a willingness to add and incorporate useful aspects of new cultures encountered.This attitude was highly functional in a dangerous and chaotic world. New Orleans became another crossroads where the river, the bayous and the sea were open roads; where various nations ruled but the folk continued to reign. They turned inhospitable swamplands into a refuge for the independent, the defiant, and the creative unimportant people who tore down all the barriers of language and culture among peoples throughout the world and continue to sing to them of joy and the triumph of the human spirit.Put your paper here.

That One Day free essay sample

I take my seat as the bell rings. The teacher passes out the exam test. The last thing she says is, â€Å"Do not cheat or your test will not be graded.† Questions one and then ten go by, I think, â€Å"Wow this studying really paid off.† I look over to one of my classmates. He copied all of my answers. I didnt think of anything of it at the time, but I changed two to three of my answers just so I wouldn’t get in trouble. I know that this isn’t the right thing to do. It looks like I am the cheater. I panic knowing what I just did was the wrong thing. But I am finished with my exam and thought to myself nothing will happen. I get up and hand in my exam. The bell rings and I’m on to the next exam, and the next one. We will write a custom essay sample on That One Day or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Lunch comes. I get to the cafeteria and sit down to enjoy my lunch when someone taps me on the shoulder and whispers in my ear, â€Å"Can you come to my room. I need to talk to you.† I turn around and it’s my English teacher. Walking into the classroom, I notice my Scranton and the person’s Scranton who cheated off of me. I noticed I got an A on the exam, as well and the cheater. But unfortunately, he had a higher grade then me. The teacher looks at me and wants me to explain how this happened. I knew there was no way of escaping that it looks like I am the cheater now. But I didn’t cheat. I explained to her what have happened. Now looking back on it I know the right thing was to stay after class and just let her know the situation. It’s easy to make mistakes, but harder to learn from them. This was a big learning point in my life. It taught me now on to handle situations a lot more maturely, also I think of today that it wouldnt of been a problem to wait after class for a minute to let the teacher know the circumstances.