Wawa Inc. Research Paper

On the scale of company sizes In this country, Way falls somewhere In the middle. Initiating leadership in the convenience store industry in the Delaware Valley, while at the same time providing the employees with small-company personal immunization. The company hopes to maintain this relationship with the employees In the future, even though the recent strike hurt the morale among the delivery personnel. The organizational structure begins with the president, Richard Wood. There are six vice-presidents in the company, each serving an important function.The segments of the company are broken down to the following levels, with the vice-president for each level controlling It: Law & Human Resources, Marketing, Store Operations, Real Estate, Finance, and Distribution. As you can see, the real state segment is heavily weighted in the corporate structure. The reasoning behind this strategy is that the company is expanding at the rate of three to four stores per month. Devoting resources t o real estate includes the locating, purchasing, developing, and operating the new store until sufficient management can be established. I have witnessed two new examples of this strategy this semester.I have observed the demolition process of a store, and the construction of three stores, and the renovation of one! These experiences have taught me the process template hat Way uses to build every one of its new stores. With such stress being focused in this area, you can Imagine that the employees involved in the new construction process know exactly how to open a store, from the purchase of the land, to the grand opening day! The other segments of the company mentioned follow the same format as most companies of today. Story ‘Offs successful company, serving the convenience needs of the greater Delaware Valley with pride since 1964.Through the strong respect from customers, Way has achieved a dramatic increase in sales in the past five years. With the introduction of ewe â₠¬Å"superstores†, the future looks extremely bright for the company. Haw's branding strategy of its own products has achieved national recognition. From the dairy products that it has manufactured since the early sass's, to the new Way Bakery, which is destined to be a phenomenal success in the years to come because of its versatility in creating exciting new products, Way is planning on leaving the twentieth century with a bang!The following is a short history of how the company has become as successful as it is today. Way, Inc. Did not begin as a food business, as many people may believe. Instead, the company began operations in the textile industry as early as 1803. By 1865, the company, dubbed as The Melville Manufacturing Company, was incorporated and was operating mills quite successfully in several states, with sales offices throughout the country, but headquarters always remaining in Melville, New Jersey.In 1902, George Wood, who was the owner of Melville, New Jersey, w hich was a bustling town thanks to his family-owned textile business, opened a small milk plant in Way, Pennsylvania, which specialized in processing, and the home delivery of â€Å"certified† milk. Since bastardization had not yet been discovered, consumers relied heavily on the quality of Haw's milk for years. The Wood family summer home, called Red Roof, became the office center for the dairy farm. As the textile industry began to fade in the sass's, the Wood family considered enlarging the small dairy business to serve a larger area, covering the Philadelphia metropolis.Their dairy business began to thrive, Just as the textile industry collapsed due to lower prices for labor overseas. The original mill remains in Melville today, however, and is currently occupied by Wheaton Plastics, Inc. In 1998, Way manufactured more than 92 million quarts of their own dairy products, Juices, and teas. Customer service is the pillar, which keeps Way standing tall as the leading convenie nce store company in the greater Delaware Valley. While there are many factors which go into the way that Way addresses the issue of customer service, there are four that have stood out since the opening of the first store in the sass's.Greeting, understanding, directing, and retaining are the four key factors that go into the customer interaction model, which is learned during the training of every new associate in the company. Since delighting the customer is such an important part of Haw's success, the company has worked to a great extent in creating a product line that is extremely effective in today's volatile marketplace. The Way label has been synonymous to people in the Delaware Valley for years in the dairy industry. Way also sells its own brand of delicious coffee, of which over 100 million cups were sold in 1998.Also, Way built over 24 million hoagies in 1998. Realizing this pattern, the marketing department in the past five years, has recognized this occurrence of brand loyalty by introducing several new products into the stores with the Way brand name attached to them. These products are breakfast â€Å"Sizzle† sandwiches, Waybill, and extremely successful, since consumers have developed a brand loyalty to Haw's high quality products. In the more recent months, the company has been suffering from the results of two key problems. First, the strike in October 1999 forced the company to a screeching halt, adversely affecting sales in every store.While an agreement was reached in less than three weeks, the effects are still being felt. Sales have still not ounces back to what they were, and plans to build a new headquarters are on hold. Second, there has been tremendous public scrutiny of an advertising promotion for cigarettes in the Delaware valley. This promotion does not include a surgeon generals warning on the advertisement, and it has been questioned if advertising for cigarettes through a convenience store is even legal. This problem, a long with the recent strike is nearly enough to change customers' minds when they decide to make a purchase.In the future, the company will have to not make any mistakes with advertising, and should steer clear of any type of controversial advertising. In the years to come, Haw's history of excellence and innovation will continue to be a major part of the Delaware valley, and quite possibly, the entire country!! POLICY There are hundreds of pages of policies that all employees have access to on the computer in every store and regional office. While some companies hide this information from the employees, Way encourages all employees to review the information at their leisure.Some examples of what is in the corporate policy would e information regarding political contributions, employment procedures (hiring and termination), changing from part time to full time employment, retirement, and policy regarding the emigration law. It was especially interesting to find that I was entitled t o 15 vacation days since changing to full time in July. Since I have been with Way for nearly seven years, I had accumulated the extra vacation days that are only good if you change to full time. I was able to find this information while viewing some of the policy during my internship.The corporate policies of Way ensure that sugarless of what the situation may be, there are rules that govern which process is necessary to take action. The corporate headquarters is very strict concerning the rules of the company, and enforcement is always carried out, no matter who the person in question may be. JOB DESCRIPTION My Job title at Way has been Customer Service Leader since July 1999. I was promoted at my request after carefully planning my senior year at Rowan. I realized that I would be able to handle 36 hours per week and have plenty of time for class also. This is because I have no social life.I feel that there will be plenty of time for that in the future! Basically, I run the store when the manager is not present from Thursday to Sunday every week. I perform cash functions, delegate all responsibilities to my co-workers, and myself and most important of all, wait on customers!! During the semester, I have participated in advertising in the Melville stores, and when necessary, I have created signs for hurricanes and other adverse weather in our area. In short, I really enjoy my Job, and I look forward to the opening off new superstore down the street from our present location.This will all take place in July 2000, and I am hoping to be a manager in training at the new store, having finished college. If everything goes as planned, I will have a career full of Primarily during my internship, I saw countless marketing concepts at work that I have learned in the past, in a real company setting. However, I will focus on the use of the â€Å"four up's†, relationship marketing, total quality management, and brand loyalty. For price, I have been exposed to the p rocess of changing the prices on the different items that we sell. During the strike, I saw the prices of many items skyrocket, while there fell.The products that Way offers all have one thing in common, they are essential items necessary to run a household, or a spontaneous item that someone wishes to have. New products introduced usually fit these criteria. Promotion is a key element in the company. Unfortunately, the company has focused a lot of attention to the promotion of Marlboro cigarettes, which may adversely affect other sales of merchandise negatively. While the company is attracting smokers, the ads have been detracting the non-smokers. Some non-smoking customers have dubbed Way a cigarette-friendly' company.This semester has been an interesting one when it comes to place. The delivery of all Way products and supplies was halted due to the strike. This created a distribution crisis, because the delivery system that has worked so well was now out of commission for three w eeks. Outside contractors had to be brought in to deliver the goods to the stores. It would have been a lot easier to simply settle with the drivers instead of start a nasty battle that created bad press, and angry drivers. Regarding relationship marketing, Way operates its stores on the Renville that the customer will return, time and time again.Therefore, in order to provide this high level of quality, Way strives to ensure that every customer is treated with the utmost of respect at all times, regardless of how indignant they may be. The most essential part of relationship marketing that Way engages in is customer service. All associates are trained to be polite, whatever the situation is. Being quick, while also being friendly is a difficult thing to do, but once the balance between the two has been achieved, the customers really appreciate it. Also, ordering properly is obviously important.If a store is out of stock on items, this leads to a disgruntled customer. Total quality management is constantly used with many products. One example would be the Washbowl program. The product has been changed three times since introduction. The changes have been made due to customer feedback through the use of surveys. Way is constantly receiving feedback from customers on every product that it produces. With the assurance of quality, the company has thrived with its own product line, ranging from milk products to breakfast sandwiches. Coupled along with TTS, brand loyalty is very important to the company.Through the constant innovation of its products, Way hopes to create a brand loyalty with the customers. This is extremely important to Way, unlike an electronics store or department store, which carries several brands. Way needs to constantly monitor the marketplace, to seek out the strongest performing products that people will buy. Since the store is small, we only carry one brand of everything we sell, so it is important that we sell the most popular brand of dry dog food, aluminum foil, toothpaste, etc†¦ Selling popular products is something that sets Way apart from its competitors. During the semester, I would say that I have never had more opportunities to meet key people. This has helped me gain the exposure to the key management of the headquarters as I was promised, I was still able to meet many of the to-management of the company, since the regional office is two blocks from our store. I will be visiting the headquarters in the next few weeks. I feel that I have performed my Job to the adequacy that it demands. While balancing school with work can be stressful, I was able to orchestrate my schedule to accommodate both successfully.I am looking forward to the months to come, with the construction of our new store, and the opportunities that await! Working at my store has exposed me to the hiring and firing of people, dealing with customer issues face to face instead of passing the issue on to the manager. I have had to balance th e tedious position of what percent of the time I need to spend with the customers, while also getting my Jobs done for the evening. My manager has worked with me regarding the flexibility of my schedule, even though I am sure e will be very happy when I am finished college!Working with my co-workers has been a rewarding experience as well. I could never begin to do everything myself, and I feel that the help I have received from a few key employees over this semester has been tremendous. Over the next few months, I plan to create more advertising material for our store, and others. With the winter season arriving, I am ready for the annual creation of signs warning customers that they need to prepare for a winter storm. All in all, the experience this semester has been very rewarding, thanks to the help of everyone that I work with at Way!

Financial Analysis of I.T Ltd.

Company background I. T Limited (0999. HK) is an investment holding company based in Hong Kong. It was listed on the main board of The Hong Kong Stock Exchange on 4-March-2005. The company offers a wide range of apparel products. It sells its products as well as offers a variety of national and international brands through its network of retail stores. As of February 28, 2011, it operated 392 stores in Hong Kong and Mainland China. Objective To undertake a comprehensive analysis on the financial performance of I. T. Limited. Detailed financial ratio analysis will be performed.An estimation of the firm’s cost of equity capital and weighted average cost of capital will also be provided. Horizon of analysis We will focus on its performance in the latest 5 fiscal years. A) Detail financial analysis The financial analysis will be conducted in two ways. First, the major accounts on financial statements will be inspected in order to derive a general picture on the healthiness of the business. Second, PERL (Performance, Efficiency, Risk, Liquidity) framework will be used to further analyze the financial performance of the company. I.Going through the financial statements We can get a glimpse of the healthiness of the business by looking into the trend of accounting items in income statement, balance sheet and cash flow statement respectively. Consolidated income statement (Referring to appendix A – table 1 and 2) 2008/09 was a special year, financial tsunami happened. Therefore there was a huge profitability impact in that year, resulting in a large decrease in operating profit. And since the market recovered in 2009/2010, the profitability suddenly increased a lot in that fiscal year. Other than these wo special years, the overall growth trend in sales turnover, costs, and profit is healthy. (Referring to appendix A – table 3) Standardizing the income statement can extract extra information. All the accounts are expressed as a percentage of turnov er. The company has done a good job in cost controlling, since the cost of sales as a percentage of turnover is in a decreasing trend, hence the gross profit margin is in an increasing trend. On the other hand operating expenses fluctuates at about 50-51% of turnover, but since cost of sales has a greater decrease, the net effect is operating profit is in an increasing trend.Consolidated balance sheet (Referring to appendix A – table 4) In general, total assets experience an increasing trend. This is reasonable since the business is at a growing stage. One notable point is the growth of non-current assets look greater than current assets, especially property, furniture and equipment has a very significant increase in 2010/11, this is probably due to the rapid expansion of retails stores in Hong Kong and China. And as a result, there is a significant increase in inventories in 2010/11 too. (Referring to appendix A – table 5)Similar conclusions can be drawn by viewing th e same accounts in a standardized balance sheet (all items are standardized by total asset value in the fiscal year). Property, furniture and equipment, and inventories make up most of the total assets. (Referring to appendix A – table 6) Liabilities also grow a lot with total assets as the business expands. Notably there is a significant increase in both short-term and long term bank borrowings. In addition the payable accounts also increased more than 100%, meaning that the company bought stocks or services from suppliers on credit more than before.This growth of liabilities is fine as long as the company can generate consistent operating cash flows, as we will see in the next section. (Referring to appendix A – table 7) Similar conclusions can be drawn at standardized balance sheet, bank borrowings and payables increased significantly, especially for longer term bank borrowings. (Referring to appendix A – table 8) The growth of the business was mainly funded by growing liabilities, as we can see that the growth of equity is not so significant, the company has not issued new shares to get funding. The company has simply retained some of the profit in each year into reserves.Consolidated cash flow statement (Referring to appendix A – table 9) The company has improved its cash flow generation as its business grew. The profitability of the company increased, and so as the cash generated from operation. And since the company has increased in size, it has increased its ability to finance from banks, therefore it also increased its cash generated from financing activities. Although the company has increased investment in fixed assets and hence the cash outflow from investment, this is offset by the increase in cash flow from operation and financing.II. PERL (Performance, Efficiency, Risk, Liquidity) analysis (Referring to appendix B and C) 1) Performance Profit margins (Gross, operating, net) Gross profit margin keeps increasing. The la test figure is 63. 35%, which is a very high margin. This is probably due to the increased brand image of the company, hence the company can increase the selling price of the products. Also, the company shifted the focus on selling products of its own brands more than imported brands, this also increased the gross profit margin.Both operating and net profit margin are also in an increasing trend (despite year 2008/09, a special year which financial crisis happened). But it is worth noting that the current margins are 12. 08% and 10. 12% respectively, which show a great difference from gross profit margin. This indicate the operating expenses are very high, eating up more than 50% of profit margin. The company should think ways to further reduce operating costs. Return on Equity (ROE) The company has increased its ROE along the years despite the special year 2008/09. The latest ROE is actually a high return, 21. 6%. So what are the main drivers of such high return? By utilizing DuPon t analysis, the reason for return growth can be found: ROE = Net Profit Margin x Asset Turnover x Financial Leverage The net profit margin is increasing throughout the years. At the same time, since the financing ability of the company has increased, the financial leverage also increased. These two factors drove the ROE up, offsetting the diminishing effect on ROE by asset turnover. The asset turnover actually decreased in last two fiscal years, indicating the efficiency of turning asset to revenue decreased.It is a bit worry to see the ratio decreased from 1. 6 to 1. 17 in these 2 years. It may indicate that the asset size of the firm is too large, further expansion may not bring further increase in revenue. This may be an indicator of the firm has passed its optimum point and management must take extra care in evaluating whether the company should invest in expanding more retail stores or not. Extended DuPont analysis breaks down net profit margin into tax burden, interest burden, and EBIT margin. Tax burden of the company is actually increasing, i. e. it has to pay more effective tax hence impacting the net profit margin.But it’s still fine as the effective tax rate is still at about 20%, which should be quite low when compared to effective tax rate outside Hong Kong and China. Interest burden also experiences an increasing trend. This is reasonable since the company has increased financing ability and financed through more bank loans. EBIT margin is increasing, offsetting the negative effect of tax burden and interest burden. 2) Efficiency Fixed asset Fixed asset turnover is in a decreasing trend (from 16. 08 to 7. 98 in last five years). This indicates the efficiency of generating sales revenue from fixed assets investment is lowering.This confirms with the decreasing asset turnover ratio mentioned above. However the ratio is still at a high level, the management should still invest in fixed asset and expand the business, but extra care should be t aken to determine the amount and scale to be invested. Inventory Inventory turnover is decreasing (from 3. 72 to 2. 48 in last five years). This indicates that in general, the speed of stocks selling has slowed down as the business expands. When this ratio is converted to days of inventory on hand, the meaning can even be clearer. The days increased from about 98 days to 147 days in these 5 years.Overstocking, importing or producing products which are not popular, or insufficient marketing efforts are all possible reasons to this decreasing efficiency. Receivables Receivables turnover is decreasing. To get a clearer meaning, the ratio is converted to days of sales outstanding, and this ratio is increasing (from 1. 97 to 11. 49). This ratio means on average how many days the company’s customers who buy on credit will pay their bills. This increasing ratio means that it takes more time to collect the bill from customers, meaning that capital has to be tied up for longer period. However the number actually is not large, it’s about 12 days and therefore an acceptable value. Payables Payables turnover decreased from 11. 14 to 5. 51. The ratio can be converted to number of days of payable. This ratio increased from 32. 76 to 66. 23. This ratio is the average amount of time it takes to pay its bills. The time has increased significantly. It showed the advantage of the growth of the company, i. e. when the company went listed and expanded, the ability to pay on credit increased. This increased time to pay bills increases the flexibility to manage working capital and hence benefits the operation of the company.Working capital The effectiveness of the company in using working capital has increased since the working capital turnover increased from 2. 72 to 4. 46 in last five years. This means that more sales revenue is generated for each dollar of working capital which funded the sales. This is probably due to increased size of the company, so that the compa ny can get more funding by short-term bank loans, and increase its payables to different creditors. These increased funding are used to purchase inventories to generate sales revenue. 3) Risk Gearing All debt-to-equity, debt-to-asset and financial leverage ratios are in an increasing trend.As the company grows, more funding is needed. Financing by debt issuance is better than equity issuance since the required return by debt is lower, and there is possible tax advantage on debt payment. These three ratios are still in a healthy range and further increase in the ratio is still possible. Debt-to-common equity ratio is 0. 32 and debt-to-asset ratio is 0. 18, these two numbers are fairly low. This indicates that the company has a considerable capacity in debt financing if needed. Coverage Interest coverage ratio maintains at a high level (159. at 2010/11), although the company has increased financing by bank loans. That means the operating profit is more than enough to cover the interes t expense and indicate that the business is healthy. Cash flow coverage ratio is also at adequate level despite it has fallen a bit (50. 54 at 2010/11). This is also a healthy signal because net cash flow is positive and adequate. 4) Liquidity Cash conversion cycle Cash conversion cycle is the days the company takes to convert its investment in inventories back into cash. The company has an increased cash conversion cycle, due to the increase in days on inventory on hand.This is still an acceptable length (92. 15 days), but the company should try to lower the days in inventory on hand as mentioned above. Current and acid test ratio Both current and acid test ratio are decreasing, but they are still at a healthy level. Current ratio is at 1. 85, meaning the current assets are 1. 85 times of current liabilities, which is sufficient for its short-term obligations. Acid test ratio is 1. 12, meaning the cash-like current assets are 1. 12 times of current liabilities, indicating that it i s sufficient to cover its short-term liabilities by short-term cash.Operating cash flow to maturing obligations This is also a measure of the company’s ability to meet short term liabilities from cash flow. Although the overall cash flow has improved, the current liabilities has also increased considerably, therefore this ratio is not at a high level (0. 44). The major cash outflow is from purchasing fixed assets and repayment of bank loans. Management should control the cash outflow in these two areas in order to improve the overall liquidity. III. Summary The company has a healthy business. It has an increasing net profit and positive cash flow.The ROE and profit margin are at good levels. It utilized bank loans to further expand its business, while the leverage ratios are still in a healthy range. There is no liquidity problem associated with the company as seen in liquidity ratios. However the management should focus on improving the efficiency of the company while expand ing the business. The major concern here is reducing days of inventory on hand, in order to reduce the length of cash conversion cycle. To sum up, this is a company with good financial performance, and therefore it is worth to invest in this company.B) Cost of equity capital Capital Asset Pricing Model (CAPM) is used to determine the cost of equity capital. There are three major inputs in CAPM equation: risk-free rate, beta of the company stock to a benchmark market, and equity risk premium of the benchmark market. Since I. T. Limited is a Hong Kong based company, therefore the input parameters mentioned above should come from Hong Kong. Risk-free rate Hong Kong government do not issue bill or bond (despite the newly launched ibond, but that is a floating rate bond which its purpose is for general public to protect inflation).Therefore risk-free rate should be the yield on Exchange Fund Bills issued by Hong Kong Monetary Authority. Risk-free rate should be the yield on short-term bi ll, therefore the yield on one-month bill is selected, which is 0. 05%. Stock beta Hang Seng Index (HSI) is the benchmark index in Hong Kong. 5 years of monthly return stock of I. T. Limited and HSI were obtained. Stock Beta of I. T. to HSI can be calculated by using Slope function of Excel, or regressing both return series. The estimated beta is 1. 399, meaning that the stock of I. T.Limited is more volatile than the index. R2 coefficient is 0. 2261, meaning that about 22. 61% of the variability of the stock returns can be explained by variability in the index. Equity risk premium According to Zhu & Zhu (2010), the equity risk premium of Hong Kong is 8. 19%. Applying CAPM: Cost of equity capital = (0. 05 + 1. 399*8. 19)% = 11. 51%. C) Weighted average cost of capital (WACC) The company has not issued any debt. The â€Å"debt† of the company is in the form of bank borrowings, so the effective interest rate of borrowing will be treated as cost of debt.In the latest annual repo rt, the effective interest rate is 1. 4% (from notes 23 of annual report). Total bank borrowings is HKD594. 145M, total equity is HKD1846. 961M, therefore: WACC = 594. 145 / (594. 145 + 1846. 961)*1. 4% + 1846. 961 / (594. 145 + 1846. 961)*11. 51% = 9. 049% References: Hong Kong Monetary Authority, Exchange Fund Bills and Notes fixing (http://www. info. gov. hk/hkma/eng/press/index_efbn. htm) Zhu & Zhu (2010) – Estimating the Equity Risk Premium: the Case of Greater China, Jie Zhu, Xiaoneng Zhu (http://citeseerx. ist. psu. edu/viewdoc/download? doi=10. . 1. 175. 7333&rep=rep1&type=pdf) Appendix A – Selected figures from financial statements Table 1 – Excerpt from summarized consolidated income statement 201120102009200820072006 HK$'000HK$'000HK$'000HK$'000HK$'000HK$'000 Turnover3,834,422 2,995,952 2,733,256 2,021,283 1,530,763 1,314,443 Cost of sales(1,405,482)(1,176,707)(1,121,570)(819,423)(640,442)(540,243) Gross profit2,428,940 1,819,245 1,611,686 1,201,860 8 90,321 774,200 Other income – incentive income0 13,200 0 0 Other (loss)/gain(7,544)3,791 (11,123)1,900 (4,395)(273) Impariment of goodwill0 (4,217)(59,569)0Operating expenses(1,958,255)(1,524,760)(1,468,877)(1,002,046)(749,898)(642,553) Operating profit463,141 307,259 72,117 201,714 136,028 131,374 Table 2 – Growth trend of turnover, costs and profit, calculated based on consolidated income statement 20112010200920082007 Increase/Decrease (%) Turnover27. 99%9. 61%35. 22%32. 04%16. 46% Cost of sales19. 44%4. 92%36. 87%27. 95%18. 55% Gross profit33. 51%12. 88%34. 10%34. 99%15. 00% Operating expenses28. 43%3. 80%46. 59%33. 62%16. 71% Operating profit50. 73%326. 06%-64. 25%48. 29%3. 54% Table 3 – Excerpt from summarized and standardized consolidated income statement 01120102009200820072006 Turnover100. 00%100. 00%100. 00%100. 00%100. 00%100. 00% Cost of sales-36. 65%-39. 28%-41. 03%-40. 54%-41. 84%-41. 10% Gross profit63. 35%60. 72%58. 97%59. 46%58. 16%58. 90% Other income – incentive income0. 00%0. 44%0. 00%0. 00%0. 00%0. 00% Other (loss)/gain-0. 20%0. 13%-0. 41%0. 09%-0. 29%-0. 02% Impairment of goodwill0. 00%-0. 14%-2. 18%0. 00%0. 00%0. 00% Operating expenses-51. 07%-50. 89%-53. 74%-49. 57%-48. 99%-48. 88% Operating profit12. 08%10. 26%2. 64%9. 98%8. 89%9. 99% Table 4 – Excerpt from summarized consolidated balance sheet 20112010200920082007HK$'000HK$'000HK$'000HK$'000HK$'000 ASSETS Non-current assets Property, furniture and equipment727,022 233,395 229,124 179,850 93,191 Current assets Inventories736,717 394,520 411,145 323,724 196,299 Table 5 – Excerpt from summarized and standardized consolidated balance sheet 20112010200920082007 ASSETS Non-current assets Property, furniture and equipment22. 13%11. 83%13. 44%11. 59%9. 38% Current assets Inventories22. 42%20. 00%24. 12%20. 85%19. 77% Table 6 – Excerpt from summarized consolidated balance sheet 20112010200920082007 LIABILITIES Current liabilities Bank borrowings (214,911)(47,400)(47,400)(10,000)0Trade and bill payables(360,545)(149,488)(155,993)(121,840)(66,805) Accruals and other payables(349,524)(178,245)(135,677)(140,200)(71,648) Non-current liabilities Bank borrowings(379,234)(35,200)(82,600)0 0 Table 7 – Excerpt from summarized and standardized consolidated balance sheet 20112010200920082007 LIABILITIES Current liabilities Bank borrowings-6. 54%-2. 40%-2. 78%-0. 64%0. 00% Trade and bill payables-10. 97%-7. 58%-9. 15%-7. 85%-6. 73% Accruals and other payables-10. 64%-9. 04%-7. 96%-9. 03%-7. 21% Non-current liabilities Bank borrowings-11. 54%-1. 78%-4. 85%0. 00%0. 00%Table 8 – Excerpt from summarized consolidated balance sheet 20112010200920082007 EQUITY Capital and reserves Share capital119,725 115,504 115,504 115,468 103,950 Reserves1,727,236 1,362,219 1,096,205 1,105,369 722,803 Non-controlling interests(3,749)0 0 0 0 Total equity1,843,212 1,477,723 1,211,709 1,220,837 826,753 Table 9 – Excerpt from summarized con solidated cash flow statements 20112010200920082007 HK$'000HK$'000HK$'000HK$'000HK$'000 Net cash generated from operating activities450,446 366,025 135,589 243,939 91,589 Net cash used in investing activities(508,347)(137,011)(156,242)(110,300)(101,843) Net cash generated from/ used in) financing activities204,453 (47,400)22,668 (76,497)(49,807) Net increase in cash and cash equivalents146,552 181,614 2,015 57,142 (60,061) Appendix B – Ratio formula Performance Profit margins Gross profit margin = Gross Profit / Turnover Operating profit margin = Operating Profit / Turnover Net profit margin = Net Profit for the year / turnover Return ratio Return of equity (ROE) = Net Profit for the year / Averageyear, year-1 (Share capital + Reserves) Decomposition of ROE ROA = Net Profit for the year / Averageyear, year-1 (Total Assets) ROE = ROA x Financial Leverage DuPont Decomposition of ROEAsset turnover = Turnover / Averageyear, year-1 (Total Assets) Financial leverage = Averageyear, year-1 (Total Assets) / Averageyear, year-1 (Share capital + Reserves) ROE = Net profit margin x Asset turnover x Financial leverage Extended DuPont Decomposition of ROE Tax burden = Net profit for the year / Profit before income tax Interest burden = Profit before income tax / (Operating Profit + Share of profit of jointly controlled entities) EBIT margin = (Operating Profit + Share of profit of jointly controlled entities) / Turnover ROE = Tax burden x Interest burden x EBIT margin x Asset turnover x Financial leverageEfficiency Fixed asset turnover = Turnover / Averageyear, year-1 (Property, furniture and equipment) Inventory turnover = Turnover / Averageyear, year-1 (Inventories) Days of inventory on hand = 365 / Inventory turnover Receivables turnover = Turnover / Averageyear, year-1 (Trade and other receivables) Days of sales outstanding = 365 / Receivables turnover Payables turnover = Cost of sales / Averageyear, year-1 (Trade and bill payables) Number of days of payable = 36 5 / Payables turnoverWorking capital turnover = Turnover / Averageyear, year-1 (Net current assets) Risk Debt-to-common equity ratio = (Short term + Long term bank borrowings) / (Share capital + Reserves) Debt-to-asset ratio = (Short term + Long term bank borrowings) / Total assets Financial leverage = Averageyear, year-1 (Total Assets) / Averageyear, year-1 (Share capital + Reserves) Interest coverage ratio = Operating profit / Interest expense Cash flow coverage ratio = Net increase in cash / Interest expense LiquidityCash conversion cycle = Days of sales outstanding + Days of inventory on hand – Number of days of payable Current ratio = Current assets / Current liabilities Acid test ratio = (Current assets – Inventories) / Current liabilities Operating cash flow to maturing obligations = Operating cash flow / Current liabilities Appendix C – Calculated ratios 20112010200920082007 Performance Profit margins Gross profit margin63. 35%60. 72%58. 97%59. 46%58. 16 % Operating profit margin12. 08%10. 26%2. 64%9. 98%8. 89% Net profit margin10. 12%8. 77%1. 56%8. 46%8. 0% Return ratios ROE23. 35%19. 53%3. 50%16. 70%15. 55% Decompsition of ROE ROA14. 76%14. 29%2. 61%13. 43%13. 05% ROA*Financial Leverage = ROE23. 35%19. 53%3. 50%16. 70%15. 55% DuPont decompistion of ROE Asset turnover1. 46 1. 63 1. 68 1. 59 1. 63 Financial Leverage1. 58 1. 37 1. 34 1. 24 1. 19 Net profit margin*Asset turnover*Financial Leverage = ROE23. 35%19. 53%3. 50%16. 70%15. 55% Extended DuPont decomposition of ROE Tax burden80. 65%83. 29%53. 97%81. 23%82. 63% Interest burden100. 46%100. 86%103. 66%106. 90%112. 12% EBIT Margin12. 49%10. 44%2. 8%9. 74%8. 63% Tax burden*Interest burden*EBIT Margin*Asset turnover*Financial Leverage = ROE23. 35%19. 53%3. 50%16. 70%15. 55% Efficiency Fixed asset turnover7. 98 12. 95 13. 37 14. 81 16. 08 Inventory turnover2. 48 2. 92 3. 05 3. 15 3. 72 Days of inventory on hand146. 89 124. 95 119. 58 115. 82 98. 19 Receivables turnover31. 76 31. 98 5 1. 12 81. 59 185. 10 Days of sales outstanding11. 49 11. 41 7. 14 4. 47 1. 97 Payables turnover5. 51 7. 70 8. 07 8. 69 11. 14 Number of days of payable66. 23 47. 38 45. 21 42. 01 32. 76 Working capital turnover4. 6 3. 91 4. 24 3. 39 2. 72 Risk Debt-to-common equity ratio0. 32 0. 06 0. 11 0. 01 0. 00 Debt-to-asset ratio0. 18 0. 04 0. 08 0. 01 0. 00 Financial Leverage1. 58 1. 37 1. 34 1. 24 1. 19 Interest coverage ratio159. 70 119. 70 29. 64 646. 52 45342. 67 Cash flow coverage ratio50. 54 70. 75 0. 83 183. 15 (20020. 33) Liquidity Cash conversion cycle92. 15 88. 99 81. 51 78. 28 67. 40 Current ratio1. 85 3. 00 2. 80 2. 93 4. 66 Acid test ratio1. 12 2. 08 1. 70 1. 91 3. 42 Operating cash flow to maturing obligations0. 44 0. 85 0. 36 0. 77 0. 58

Causes of stress and its solution

The circumstances that cause stress are called stressors. Stressors vary in severity and duration .For example the responsibility of caring for a sick parent may be an ongoing source of major stress , whereas getting stuck in a traffic jam mat cause mild short term stress .Some events such as death of a loved one are stressful for everyone .But in other situations ,individuals may respond differently to the same event. Stressors can be classified into 3 general categories: 1)catastrophic stress 2)Major life changes 3)Daily hassles In addition simply thinking about unpleasant past events or anticipating unpleasant future events can cause stress for many people. 1)Catastrophe: Is a sudden , often, life threatening calamity or disaster that pushes people to do outer limits of their coping capability example earthquakes ,tornadoes ,fires ,floods and hurricanes as well as wars ,torture ,automobile accidents , violent physical attacks and sexual assaults . They often continue to affect the individuals mental health long after the event has taken place. 2)Major life changes: The most stressful events for adults involve major life changes such as death of a spouse ,family member ,divorce , imprisonment ,loosing ones job and major personal disability or illness . The most stressful events for adolescents are death ,imprisonment or divorce of parents ,personal disability or illness .Getting married is a positive experience but planning the wedding ,deciding whom to invite ,and dealing with family  members may be stressful for the couples. 3)Daily hassles: Much of the stress in our lives results from having to deal with daily hassles pertaining to our jobs ,personal relationships and everyday living circumstance .Many people experience the same hassles everyday example living in a noisy neighbourhood ,commuting with heavy traffic ,disliking ones fellow workers ,worrying about money , waiting in a long line and misplacing or losing things .When taken individually , this hassles may feel like minor irritants , but cumulatively , they can cause significant stress . Studies have found that one’s exposure to daily hassles is actually more predictive of illness than is exposure to major life events . SOLUTIONS TO STRESS 1)coping with stress: Coping with stress means using thoughts and actions to deal with stressful situations and lower our stress levels. People who cope well with stress tend to believe that the can personally influence what happens to them .The usually make more positive statements about themselves ,resist frustration ,remain optimistic and persevere even under extremely adverse circumstances. People who cope poorly with stress tend to have somewhat opposite personality characteristic such as low self esteem and a pessimistic outlook on life. Coping strategies: Psychologists distinguish 2 broad types of coping strategies: a)Problem focused coping b)Emotional focused coping The goal of both strategies is to control ones stress level. In problem focused coping people try to short circuit negative emotions by taking some actions to modify ,minimize or avoid the threatening situation . In emotional focused coping people try to directly moderate or eliminate unpleasant situations. Problem focused coping is the most effective coping strategy. 2)Social support: Social support from friends ,family members and others who care for us goes a long way in helping us to get by in times of trouble. Social support system provides us with emotional sustenance ,tangible resource ,aid and information when we are in need .People with social support feel cared about and valued by others and feel a sense of belonging to a larger social network. 3)Bio feedback: Bio feedback is a technique by which people learn voluntary control of stress related physiological response such as skin temperature ,muscle tension ,blood pressure and heart rate .Normally people cannot control these responses voluntarily .Individuals learn to be sensitive to subtle changes inside their body that affect the response system being measured. 4)Relaxation: There are 2 types of relaxation A)Progressive muscular relaxation B)Relaxation We should learn to relax our body. 5)Aerobic exercise: Aerobic exercise such as running , walking ,biking and skiing can help keep stress level down because the increase the endurance of the heart and lungs ,an aerobically fit individual will have a lower heart rate at rest and lower blood pressure ,less reactivity to stressors and quicker recovery from stressors.

How does the theme loneliness between the main characters differ in Essay

How does the theme loneliness between the main characters differ in the power and the glory and the quiet american by Graham Greene - Essay Example In the sorrowful and bleak context of â€Å"the Quiet American† and â€Å"the Power and the Glory† the theme of loneliness is handled to expose the bare nature of life. Fowler in his fifties is a drug addicted middle aged British correspondence in Vietnam. He is in love with a beautiful young Vietnamese girl Phuong who eludes with Pyle, a young American. Indeed amid this triangle love grows to alleviate the pain of loneliness. Fowler is detached from his wife for some years and his life is sagged with the burdens of blood, death and the destructions of the war. Here love plays the role of a soothing factor of loneliness. Fowler’s loneliness appears to crave for love of the orphan as a soothing bypass of his inner suffering. Even then the bleakness of the novel facilitates to the dawning of the question whether mercy of God for his creature man as religion asserts is believable enough or if life is meaningful enough to live or even all the institutions and systems concerned with human life are worthy enough to obey, when man thrown amid the crunch and crisis of this world has to struggle to find the way-out himself by his own laws. Incontrovertibly the two novels â€Å"The Power and the Glory† and â€Å"The Quiet American† deal with the interactions among politics, religion and common life of human beings, but in the two novels Graham Greene’s treatment of ‘loneliness’ sets their tone of these interactions on the premise that man is too lonely in his lonely path of life to receive any sympathy from others for his pain and agony. Man himself is to take care of his own wound and agony. Greene is always aware of the fact that Man’s pain and suffering are further stimulated by his loneliness and vice-versa. Greene’s characters are apparently modern; they suffer from the crunches between their belief and disbelief in God, duty and desires, individual and ideals, and sometimes between individual and the society. These crunches are

Contemporary Application of Economic Theory (proposal) Research Paper

Contemporary Application of Economic Theory (proposal) - Research Paper Example This research shall seek to scrutinize the validity of the model and assess how the model has succeeded over the years in fetching the economic environment of England with reliable economic predictions, based on which economic policy analysis of England can be attributed to. The literature review and theoretical framework of this research work shall be built purposely around the research questions. To this effect, there shall be three major themes which will be looked at. These themes have briefly been discussed below: The ‘suite of statistical forecasting models’ used by the Bank of England was born out of behavioural game theory. Behavioural game theory has been lowered by economists to mean the empirical determination of â€Å"how individuals make choices under conditions of uncertainty and strategic interaction† (Gintis, 2005). It is based on clues of how people make choices under uncertainty and strategic interaction that the Bank comes out with its forecasts of inflation and output growth as inputs into the forecasting process (Kapetanios G, Labhard V and Price S, 2007). Major components of the model include simple linear autoregressive (AR) models, information from existing history, univariate non-linear models, more information from extra variables, Linear vector-autoregressions (VARs), and use of Bayesian techniques. The major and most outstanding impact of the model on economic policy making in England’s economy is that the model has succeeded in coming out with reliable forecast for decision making on inflation and other macroeconomic variables. This is not without the challenge of dealing with the unconditional mean but as noted by Stock and Watson (2007), â€Å"the well-documented move towards macroeconomic stability, sometimes referred to as the ‘Great Stability’, has made forecasting more easy in the sense that macroeconomic variables stray less far from the unconditional mean† (Kapetanios G, Labhard V and Price S, 2007, p.

Asia-Pacific Region Essay Example | Topics and Well Written Essays - 1250 words

Asia-Pacific Region - Essay Example The theme for APEC 2007, strengthening our Community, Building Sustainable Future, corroborates the APEC's principles namely: communication, cooperation, collaboration, and community among the 21 member economies of the organization (Australian Government). Australia, being the host country of the meeting, sees valuable opportunity to showcase their business, society and culture to their constituents; and at the same time, to provide Australia with a unique opportunity to guide its future direction (Australian Government). That direction is heading towards economic stability and growth of the region. In this regard, we can appreciate the action taken by the Australian Government of involving their youth in this affair in order to inculcate in their minds the importance of strengthening international relations so as to build sustainable future among the member economies. This approach is vital and effective; it is like putting the future in the hands of the next generation. As we can see, the main goal of the APEC is "to promote economic growth and prosperity in the region and strengthen the Asia-Pacific Community" (Australian Government). It is undeniably that many countries in the Asia-Pacific are economically poor. ... In some Southeast Asian countries, children are not only suffering malnutrition but also they are even subjected to force labor and have a minimal access to education and the use of technology like computers. They are quite far behind the technological advancement. In rural areas, many patients died in hospital because of lack of life-saving facilities that could have helped patients. The question "How can I/we build/create a better future" depends on the economic situation of the country which one belongs. Subjectively, the first thing that I can do is to help my self achieve my dreams in life. One cannot think of building or creating a better future if he does not have a dream or ambition in life. An architectural engineer for example can create an infrastructure design that will truly make a better community. A doctor can help patients in remote areas where access to hospitals is difficult due to financial problem. An educator can help educate people whose capacity to send their children to school are low if none at all. Objectively, there are many international non-governmental organizations such as the Green Peace Environmentalist group, the Human Rights Advocates and many other that endeavor so hard to reach out on people in depressed areas. Therefore, the same consciousness must also be taught to citizens of rich countries, in order to lend a hand for a better future of the region. Asia-Pacific Region is composed of both rich and third world countries, in which relationship between each of them is highly important especially on economic matter. As I see it, it is also of paramount importance to make out those countries of equilibrium in terms of economic privileges. Poorer countries should also experience healthier

Cruel and Unusual Punishment Essay Example | Topics and Well Written Essays - 1250 words

Cruel and Unusual Punishment - Essay Example Despite widespread outcry on the cruelty associated with the death penalty, many countries around the globes still practice it and view it as a perfectly legal form of extreme punishment. Whether to uphold or abolish the death penalty has been a controversial subject in many societies, in the world. This is because of the divergent views that different people have based on phenomenon such as culture, political ideology and religion. The United Nations, for example, has in recent times adopted resolutions though non binding, advocating for the abolishment of executions giving emphasis on the sanctity of life. The European Union also outlaws the practice of capital punishment in its area of jurisdiction through the second article of the European Union Charter of Fundamental Rights. This has proved to be ineffective since countries like the Unites States, Indonesia, India and China, which hold a large part of the global population, still practice capital punishment (Mandery 45). Accordi ng to Amnesty International, two nations each year have abolished capital punishment in their criminal justice systems since 1976. Counties such as Germany, Australia and Spain strongly against the practice of capital punishment regardless of the crime committed. Capital punishment dates as far back as 8th Century B.C in Babylon, where twenty five different crimes were punishable by death. The Hittite code of the 14th Century B.C also embraced capital punishment. Most astonishing of them all was the draconian Athens code of the 7th Century B.C, which set out death as punishment for all crimes. In early civilizations, the death penalty got executed thorough drowning, firing squads, impalement, lynching, decapitation and crucifixion. In present day, capital punishment gets executed through the use of lethal injection, firing squads, lethal gas, hanging and electrocution (Radelet 46). The death penalty in the Unites States has been an issue of insurmountable concern for a long time. Th e precedence of capital punishment in Americas came as a result of British influence on the then colony. Though capital punishment had been occurring, the first recorded execution took place in Virginia in 1608. The early 20th Century marked the resurgence in the execution of the death penalty. The 1930s marked the decade with the largest number of executions in the history of America. In the 1950s, the public began to voice their opposition to capital punishment. This led to a drop in the number of executions. In the 1960s, the legality of capital punishment got challenged. Before 1960, the eighth, fifth and fourteen amendments were interpreted as having endorsed the death penalty. It was later suggested that the death penalty was unusual and cruel, and hence unconstitutional in accordance to the Eighth Amendment (Mandery 77). In 1985, the Supreme Court ruled that the 8th Amendment had an evolving standard of decency which marked progress of a society that was coming of age. This n ewly found decency no longer had room for the death penalty. As a result, the Supreme Court began refining the administration of the death penalty by ensuring that it was practiced with little or no pain inflicted. Whereas the 8th Amendment of the Constitution of the United States restrains the government from cruel and unusual punishments, the ambiguity of the term ‘cruel and unusual’ has over the years fuelled the controversy about the constitutionality of capital p

From Englightenment to Romantisicm Essay Example | Topics and Well Written Essays - 1500 words

From Englightenment to Romantisicm - Essay Example Mozart’s oeuvre often focuses on these subjects – he revolutionised traditional operas by making a member of the serving class the hero of one of his masterpieces in â€Å"Le Nozze di Figaro†, where the popular figure of Figaro (a barber) triumphs over his social superiors because of his higher moral values, and because of his wit. The play by Beaumarchais on which the opera libretto was based was banned in Vienna in the times just before the French Revolution, as the content was deemed too inflammatory. The opera â€Å"Don Giovanni† remains to this day one of the most often performed operas worldwide. This paper will explain the particular fascination this opera still holds today by demonstrating the complexity of two of the main characters of the libretto, Leporello, Don Giovanni’s valet, and Don Ottavio, the fiancà © of Donna Anna, one of the women Don Giovanni tried to seduce. As in the comic opera â€Å"Le Nozze di Figaro† Mozart and Da Ponte sketch a two-tier society and the characters in Don Giovanni are either members of the aristocracy or the serving class comprised of servants and peasants. Again, moral values are not identical with class and rank, but low morals can be found in the aristocracy (Don Giovanni) and high morals can be found in the peasant class (Zerlina, Masetto). Leporello appears to be a case of his own - in the first Act we find Leporello in the garden owned by the Commendatore whilst his master, Don Giovanni, is attempting to seduce Donna Anna, the Commendatore’s daughter and fiancà ©e of Don Ottavio. Leporello, although a loyal servant, is dissatisfied with his employment and with his master. He complains that he is kept busy day and night, as expressed in his aria â€Å"Notte e giorno faticar† which could be translated as â€Å"day and night nothing but work†. The close proximity to his master and the knowledge he has therefore gathered about his master’s life

External Environmental Scan Paper Essay Example | Topics and Well Written Essays - 750 words

External Environmental Scan Paper - Essay Example The analysis of the external environment has made Apple has spread its operations to different parts of the world like Korea, Cork, China, Ireland and Czech Republic (Hassan, 2013).   The most important external environmental factor in the remote, industry, and external operating environments of Apple include political, economic, social, and technology. By operating in different parts of the world, political factors normally affect the operation of Apple. A country with stable governance systems like UK and the US provides the company with a favorable environment for the operation because such countries hold an enviable and strong position in global politics. However, there are risks posed by terrorist elements that hinder their operation. The current political challenges that affect the company are, therefore, the sagging popularity of some countries like the UK and the increasing terrorist threats (Newlands & Hooper, 2009). Economically, the company has been greatly affected by the economic downturn experienced throughout the world. This has affected the financial systems of many countries as it has resulted into fluctuation in exchange rate particularly when dealing with their foreign trade. The global crisis has also led to slow economic growth that has reduced the profit margins for the company particularly in weak economies (Hassan, 2013).   These factors have massively contributed to the companys success in terms of increased sales volume. Increased education levels and increased the number of people, institutions and companies that buy through the internet has resulted in the tremendous increase in growth of the company. Another factor that has greatly impacted the company is a technology. Due to fast technological changes and heavy competition, the company has increased its expense on research and development so as to be ahead of their competitors by improving their design and performance continually (Hassan,

Comparison of Reports Essay Example for Free

Comparison of Reports Essay The ability to read and write reports is an essential skill in today’s world. Therefore we need to acquaint ourselves with the three main types of reports – Informational, Analytical, and Proposals. Informational reports mainly provide facts and figures while analytical reports go one step further and provide an analysis of the facts presented. Proposals are usually prior to writing a full-blown report and contain the methods on how a certain study is to be undertaken. No matter what our occupation is, one thing we will surely deal with is reports whether it be reading and evaluating them or writing them. Therefore it is of importance for a person to be acquainted with three main types of reports – Informational Reports, Analytical Reports, and Proposals. The most basic report is the informational report. As its name implies, an informational report’s main purpose and goal is to provide information in the form of facts, figures, or observations on a certain subject so that the reader will have a better understanding of the subject matter. For informational reports, it is very important to have accurate and significant facts gained from credible sources. An analytical report is similar to an informational report in that it also contains significant and informative facts gained from credible sources but it goes a step further because the author presents an analysis of the information cited in an effort to come up with ways of solving the issue. Usually the author will present facts and figures regarding the subject and then will provide a detailed analysis of these facts and figures in order to shed more light on the subject of the report. (Shurter et al. , 1965) A proposal on the other hand is something that is usually written prior to making a report or a study and states the importance or significance of undertaking that study. (Brown 1955) A proposal is similar to an informational report in that it must include preliminary sources where facts can be gained from. It is similar to an analytical report in the sense that it usually tackles an issue and it proposes to use a certain methodology or framework in which to analyze the data and thereby draw conclusions from. The main purpose for writing a proposal is if you want to undertake a certain study or report and wish to get a professionals’ opinion and advice on your idea for a report or to gain funding from different sponsors. Reference List: Brown, L. (1955). Effective Business Report Writing. Wisconsin: Prentice-Hall. Shurter, R. L. , Williamson J. P. , Broehl, W. G. (1965). Business Research and Report Writing. California: University of California.

The Use Of Ergonomics Health And Social Care Essay

The Use Of Ergonomics Health And Social Care Essay The practice of safety in workplace has seen incredible advances as time has gone, due to advancement in technology, although there is still considerable amount of challenges that comes in form of injuries and illnesses (Hopwood and Thompson, 2006). This is where ergonomics comes to play a role in making the workplace safe for activities that would be carried out by the employee. Ergonomics draws on many disciplines in its study of humans and their environments, including anthropometry, biomechanics, mechanical engineering, industrial engineering, industrial design, kinesiology, physiology and psychology (Wikipedia, 2010). Unsafe, unhealthy, uncomfortable or inefficient situations at work or in everyday life are avoided by taking account of the physical and physiological capabilities and limitations of humans (Dul and Weerdmeester, 1993). Human health and safety is at optimum range when the workplace environmental parameters are suitable for the employee (Story, 2010). Each year, poorly designed products and workplaces account for thousands of injuries and skyrocketing costs. That is why ergonomics the human factor in product and workplace design is fast becoming a major concern of manufacturers (Gross, 1995). This report is about how is about applying and proper training on the use of ergonomics to everyday workplace can prevent life threatening illnesses, discomfort, accidents, and how employers can save money by reducing costs related to issues like workers compensation, absenteeism and turn over, as it makes operations more efficient by creating work place designs with fewer errors and improve on workplace user friendliness (MacLeod, 1995), with the goal of reducing musculoskeletal discomfort, increase work productivity, efficiency and comfort, as an employee who is more comfortable is more productive (Meriano and Latella, 2008). 1.1 AIMS AND OBJECTIVES The aim of this report is to know what ergonomics is all about and how it can be incorporated into the health and safety sector. The objectives of this report are; Reduce risks factors associated with poorly designed work stations and, To design a workplace that is suitable for the human body rather than the human body adapting to workplace. To be able to identify, measure, control and monitor the occupational health hazards/agents in the workplace which may cause ill-health to employees. 2.0 LITERATURE REVIEW 2.1 WHAT IS ERGONOMICS? Ergonomics is the science of fitting workplace conditions and job demands to the capabilities of the working population, it tends to look into work related problems that poses a risk of musculoskeletal disorders and ways of alleviating them (Cohen et al, 1997). It is also the applied science that is devoted to provide comfort, efficiency and safety into the design of items in the work place (Shelly and Vermaat, 2010), ergonomic intervention can benefit both employer and employee (Meriano and Latella, 2008). The International Ergonomics Association defines ergonomics as follows: Ergonomics (or human factors) is the scientific discipline concerned with the understanding of interactions among humans and other elements of a system, and the profession that applies theory, principles, data and methods to design in order to optimize human well-being and overall system performance. A large number of factors play a role in ergonomics; these include body posture and movement, environmental factors, information and operation as well as work organization. Ergonomics differs from other fields by its interdisciplinary approach and applied nature (Dul and Weerdmeester, 1993). The benefits of ergonomics include job satisfaction and enhanced worker motivation, added problem-solving capabilities, and greater acceptance of change. Involving staffs can help to identify job hazards, suggest ways to control these hazards and working with management in deciding how to put this control in place. 2.2 WHO IS AN ERGONOMIST? An Ergonomist is one who has adequate knowledge of the relation between humans health and humans performance (Schlick, 2009) taking into consideration the job, equipment used and information used (http://en.wikipedia.org/wiki/Ergonomics). According to Dul and Weerdmeester, 1993, the professional ergonomists can work for the authorities (legislation), training institutions (universities and colleges), research establishments, the service industry (consultancy) and production sector (occupational health services, personnel departments, design departments, research departments, etc.), they also wrote that the ergonomist highlights the areas where ergonomic knowledge is essential, provides ergonomic guidelines and advises designers, purchasers, management and employees, on which are more acceptable systems. 2.3 HISTORY OF ERGONOMICS: Science of Ergonomics dates back to 1717, when Bernadino Ramazzini, father of occupational medicine, speculated on factors within the work environment that contributed to his patients illnesses, he described violent and irregular motions, bent posture and tonic strain on the muscle as factors that contributed to musculoskeletal pains in his patients (Meriano and Latella, 2008). However, in the United Kingdom, ergonomics started in 1917 in World War I when the Department of Scientific and Industrial Research and the Medical Research Council were asked to investigate industrial conditions, particularly of munitions workers, this led to the establishment of Industrial Fatigue Research Board who performed research on above topic in 1929 because of the expanded scope of work (hours of work, training, accidents, lighting and ventilation, and design of the machinery. In 1949, the Ergonomics Research Society was established at a meeting held by a small group of research workers at the Admiralty; this made the society the earliest to be formed in the world (Meister, 1999). 2.4 LEGAL CONTROL OF ERGONOMICS: The law serves as a vital function in complex social setting as it provides standards or guidelines that define unacceptable and acceptable human behaviour. A breach in this law can be considered violation of the law and the transgressor could face civil or criminal penalties the legal system of every governmental jurisdiction and at every level of organised society must constantly adapt to changing demands, so there has and will be a continuing effusion of controlling laws. It is for this reason that the legal system is based on concepts of human faults. Liability prevention or mitigation is the avoidance of fault by investigation, analysis, evaluation, risk assessment, corrective action, and preventive remedies. The probability of a scientist or engineer having contact with law is high, it is wise to become familiar with the area of entanglement (Marras and Karwowski, 2006), as there are a myriad of roles that can be played in state or federal common law actions, workers compensati on cases, allegations of statutory violations, arbitrations or mediations, government agency hearings, or citations involving Occupational Safety and Health Administration (OSHA), Environmental Protection Agency (EPA) (Vinal, 1999). According to Health and Safety at Work (HASAW) Act 1974, which is legislation, it states that; it is the duty of the employer to carry out a risk assessment in the work place. Failure to this is regarded as a breach in the law and has its consequences. 2.5 METHODS OF UNDERTAKING ERGONOMIC ASSESSMENT The fundamental goal of human-centred engineering is to match human characteristics such as body size, strengths and weaknesses, and capabilities and preferences with the relevant attributes of equipment, tasks, and procedure (Kroemer, 2006). The different methods used in the assessment of ergonomics include; I Physical methods II Psycho physiological methods III Behavioural and Cognitive Methods IV Team methods V Environmental methods VI Macroergonomics methods (Stanton et al., 2005) All these methods make use of the following techniques listed below; Measurement teams Anthropometric techniques Assessing energetic capabilities Assessing muscle strength Assessing mental workload Assessing vision capabilities Systematic gathering of information The ideal field assessment tools used should possess the following attributes; Predictive: the tool should provide predictive measure of risk of musculoskeletal injury, Robust: can be used in any work situation, Inexpensive: tool can be available at minimal monetary cost, Non-invasive: should not affect when worker performs or process work flow, Quick: assessment could be performed quickly, Easy to use: tool could be used with minimal training, (Marras and Karwowski, 2006). 3.0 METHODOLOGY 3.1 INTEGRATED ERGONOMICS ASSESSMENT FOR THE WORK STATION For the purpose of this assessment to be done, several protocols would have to be met. The first thing that would be done is to get a work station that can be used to carry out an ergonomics assessment, and the Help Desk in the Learning Resource Centre (LRC) has been selected. A proposed meeting was set up with the Manager of the LRC to get permission to carry out the assessment, the manager approved of this and forwarded necessary messages to the supervisors in the LRC who helped in completing the task. A confidentiality questionnaire was handed to one of the supervisors, which was filled and returned and would be used as a point of reference in the results. Using anthropometric method of ergonomic risk assessment, measurement of the work station would be taken using a measuring tape and pictures snapped for further evidence of the work station for ergonomics assessment. Ergonomics assessment on the work station would be done on the basis of the task carried out. The task carried ou t in the Help Desk in the LRC involves helping students use the computer systems to locate books in the library and helping to arrange books in shelves. For this reason, there is the need to alternate between sitting down and standing. Below is a chart that shows a plan on how the work would be carried out. Observation Hazard Identification Ergonomics Assessment Evaluation Risk Validation Control and monitor Review Chart 1: Flow Plan on the methodology of the ergonomic assessment. 4.0 RESULTS AND RECOMMENDATION The particular work station selected for this ergonomics was carefully observed for the different task carried out to see if there is any problem associated with the work place. Anthropometric technique was used to carry out this work by getting measurements of the work place. 4.1 OBSERVATION: The help desk offered assistance in carrying out this work after permission was granted by the Manager of the LRC. Looking carefully at the way work was done and asking questions from the staff being monitored were put into consideration, also photographs were taken to also get a clear picture of how the employee carries out the task. Fig 1: A Staff carrying out her duties on a Visual Display Unit. 4.2 HAZARD IDENTIFICATION: hazard identification was obtained mainly by asking questions from the employee on the work station, making use of a questionnaire and viewing the work station for possible activities that may cause health disorder(s) and affect the employee. Health and Safety at Work (HASAW) Act 1974 demands that the employer should make sure that employers carry out a risk assessment in the work environment to ensure safety of staffs. See result in table 1 below. Table 1: Hazard Identification on the help desk. Hazard Hazard aspect Impact/ Effect Posture Stooped posture (resulting from fatigue and long hours of working) Stiffness of the back, neck, and wrist from working too long on the Visual Display Unit Variety of health problems, like caved shoulders, muscular imbalances, rounding of the upper back and a tendency to lean forward while walking. Incidence of lower back disorders. Movement Twisting of the waist, neck, stretching the hand and holding in that position for a long time (straining muscles in the hand) Pain and strain on neck muscles and waist. Stress on muscles of the arms while stretching causes fatigue of the arm muscle. Visual Display Unit (VDU), keyboard and mouse. Fixed position of the neck when staring at the VDU, and stress on fingers from too much typing, twisting and flexing of the wrist when handling the mouse. Makes the employee aware of some eye defects that he/she was not aware of. Straining of the arms to reach the mouse and twisting of the wrist to get to the keyboard and grabbing the mouse. 4.3 ERGONOMIC ASSESSMENT: Ergonomics assessment on the work station showed that the design of the station has a moderate score as it accommodates the employee and has a low risk level. Below is a table of the total ergonomic risk factor and how it was derived. Table 2: Ergonomic Work Position Evaluation. Assessed by: Igho Date:14/12/2010 Ergonomic Evaluation Risk Factor Static Points Comments/Action Work Positions (Sitting) 0 pts 2 pts 4 pts √ if 20 secs + X 3 if static Neck (Flexion) bending head forward √ √ 6 Moderate Shoulders (Raising elbows) √ √ 6 Moderate Wrists/Hands √ √ 6 Moderate Back (flexion) bending forward at the hips √ √ 12 High Hiking Shoulders √ √ 0 Low Twisting (incorrectly with feet stationary) √ √ 0 Low Table 3: Task factor Evaluation Task Factors Points Awarded Muscle force Low √ Moderate High 0 Vibration Low √ Moderate High 0 Lighting Good √ Fair Poor 0 Workplace Temperature Comfortable √ Warm/Cool Hot/Cold 0 Table 4: Risk Factor total on the work station. Risk Factor total Risk Factor Points Total Comments/Action 0 pts 2 pts 4pts Work Positions 0 7 8 15 16 pts+ = 4 High (8-12) Task factors 0 8 9 15 16 pts+ = 0 = 4 Moderate (4 7) Lifting 0 7 8 13 14 pts+ = 0 Low (0 3) Table 5: Key Descriptor Scale Descriptor Consequence Control 0-3 LOW Little or no complaints of muscle aches and pains Taking of short time breaks 4-7 MODERATE Stress and fatigue on muscles which is tolerable Selection of an employee to monitor how tasks are being carried out 8-12 HIGH Work Musculoskeletal disorder, static load on muscles leads to painful fatigue on muscles Reduction of work that can cause musculoskeletal disorder and training of staffs to become more aware of ergonomic risk factors related to musculoskeletal disorders. Below is a sketch on the work station used in the LRC, measured in cm. 48cm 24cm 96cm 48cm 72cm Floor Fig 1: Sketch and measurement of the work station. The sketch above can be compared to the British standard dimension to know if the measured work station meets up with the standard. Table 6: Work place measurement compared with British Standard Dimension Measured Work Station British Standard Dimension (5th 95th Percentile (mixed Population 19 65 yrs) Popliteal height 48cm 44cm Thigh Clearance 23cm Table Height (Popliteal height + Sitting Elbow height) 72cm 68.5cm Sitting Shoulder Height Position 57cm 59cm Back rest 48cm RISK VALIDATION Based on the production of a well ergonomically equipped work station, a good control and review of the work station, and everything put in order, information and training of employees there may still be a problem that can pose as a threat to the work place. This can be seen in workers habit; sitting forward on the chair, sitting in the middle of the chair, leaning on arm rest and back rest, arms resting on the table are some examples of employees habit, and this can result in intervertebral disc injuries and back problems as the muscles of the back are easily stressed. CONTROL AND MONITORING To control occupational health and safety risks, improvement of performance and benefits in work places in order to eliminate or minimize risk to employees and other interested parties exposed to risks associated with its activities, it is necessary to implement, maintain and continually improve occupational health and safety in the work place. The following can be used to control and monitor on-going activities and tasks in the work place; Avoid Unnatural Posture: bending the trunk/head sideways is more harmful than bending forward The working area should be located so that it is at the best distance from the eyes of the operator. Hand grip, materials and tools should be arranged in such a way that the most frequent movements are carried out with the elbows bent and near to the body. Manipulations can be made easier by using supports under the elbows, forearms or hands. Padded/soft warm materials that can be adjustable to suite people of different sizes. It is essential that the workplace should be suited to the body size and mobility of the operator/employee, since neutral/natural postures and movements are a necessary part of efficient work. Neck and head posture: head and neck should not be bent forward by more than thirty degrees when the trunk is erect, else fatigue and troubles may occur. 4.6 REVIEW Having seen that ergonomically, the work station is tolerable, and staffs have been informed on how to position themselves whilst working, there is need to review work practice every three months to ensure and enforce that the mode of working is still in place to avoid injuries that may have built up with time. 4.7 RECOMMENDATION After measuring the work station and comparing with the British standard measurement, it is recommended that the chair (adjustable) should be adjusted to fit the user so as to get the comfortability needed in order not to stress and strain muscles in the back and feet. The mouse and Visual display unit should be ergonomically put in place to the comfort of the operator, to reduce tension and strain to the eyes, hands and wrist ERGONOMICS POLICY AND CONCLUSION 5.1 ERGONOMICS POLICY: The purpose of this policy is to endeavour staffs to adhere to guidelines in the work place with the aim of ensuring a safe working environment as well as to bring health hazard to a minimum. It is the managements responsibility to carry out duties under the Health and Safety at work Act 1974 and other legislation including amendments to ensure safe working practices and work environment. For this reason, the help desk shall abide to the following guidelines; Ergonomics efforts shall be embedded, maintained and preserved on the help desk in Learning Resource Centre (LRC) to ensure a safe and healthy work place environment for employees. Cooperation of work force in making sure that ergonomic improvement is realised. (Joint effort of managers, supervisors, employees and other supporting staffs) Designation of post to a responsible employee to check that workers are well positioned, to prevent Work-related Musculoskeletal Disorders in the work station. Training of staffs to be more aware of ergonomic risk factors related to Work-related Musculoskeletal Disorders. Informing staffs about ergonomics and its risk factors can help to reduce cost of treatment of Work-related Musculoskeletal Disorders, as the budgeted cost can be used as employees benefits. This policy would be implemented and reviewed three times a year to ensure that the health conditions of the employees are in order, to reduce money spent on treating employees for work related musculoskeletal disorders. This policy would be handed to each staff through information and trainings and in written form. 5.2 CONCLUSION After a thorough ergonomic examination of the help desk in the LRC, and assessing the working environment, proper ergonomics evaluation was done and control measures put in Place as well as a policy for the safety and health of the employees so as to reduce chances of the risk of having a staff complain about a work related musculoskeletal disorder. Control measures used after ergonomic assessment and risk validation was carried out is to help in reducing the chances of getting a work related musculoskeletal disorder and cost of treatment from injuries sustained (if any at all, considering the tolerable amount derived from the evaluation and chances of any injury sustained, this is as a result of proper training of the staffs).