Economic History of Modern Europe Essay Example

Economic History of Modern Europe Essay Example Economic History of Modern Europe Essay Economic History of Modern Europe Essay Name: Course: Instructor: Date: Economic History of Modern Europe Europe has undergone one of the most profound changes in various aspects such as the economic conditions and sociopolitical values. This is due to the increase in interactions between various societies enhancing the aspect of globalization and multiculturalism. Historical events such as trade across the whole of Europe are among the instigating factors of the widespread economic development across Europe. In addition, this also placed Europe as a significant force of trade to reckon around the world leading to the ability of empires in Europe to access numerous products, which enhanced the development and growth of civilization in European countries. Economic structures in Europe have changed over the years, as a result of the increase in democracy and new approaches to enhance equity in the distribution of resources (Clough, Charles, 27). Land is considered a crucial factor of production. Land carries all life and economic potential of a given region. This is evidenced by the increasing values of land accruable to prime properties because of the presence of infrastructure or resources on the land. As a factor of production, land is important in the sense that it is considered as the origin of all material wealth. The value of land and the ability to access the same has changed considerably over the years because of the changes in the uses of and in the demand for the same over the years. Land in historical Europe was essentially used for agricultural purposes. This is because agriculture is the main economic means of ensuring sustenance. Land is an essential factor of production as it provides a producer with the much-needed area or space for production purposes. In addition, it also avails the much-needed resources such as mineral that are raw materials for production (Clough Charles, 33). From the perspective of a landowner, the use of land over the years has been the main of drivers of demand for land in Europe. This is attributable to the increased demand for housing, production sites and agricultural sites for production. The agricultural revolution took place in Europe as a means of transition into civilization from other means of survival such as hunting and gathering, which were unpredictable and unreliable for sustenance of large numbers of people in communities. Increase in the value of land is attributable to the increase in population sizes as well as the growth of industrialization. Industrialization is defined as the process of transition or change from an era of agrarian processes into an ear of industrial processes. The increase in population necessitates the need for ample land to provide housing to people in the society. In addition, it also leads to subsequent need for land, which is usable for set up of industries for production of consumable goods. The changes in the prices of land have resulted in wealthy individuals because of the increase in their land values. Hence, an upward change in land value usually results in the increase in wealth for a landowner. On the other hand, it also results in the inability of other individuals belonging to a low economic class to make acquisition of land. This is one of the main effects of increase in demand of land and the subsequent prices. This has resulted in the division in classes in terms of those who have the ability to make purchases of land and those who are unable to purchase of land. In addition, this is among the main reasons of the presence of a large size of the population in the world without access to ownership of land (Wasserstein, 47). PART II It is evident from available literature that a majority of Europe in the medieval years focused on means of survival. This is evidenced by the focus on agrarian activities to ensure that people had access to food for survival. Majority of labor in Europe focused on agriculture as this sector was the largest employer. Agriculture and commerce are among the main drivers of the economic changes in Europe. Agriculture necessitated the need for innovations and inventions to ensure that there was high production in the field for satisfaction of the increasing demand (Clough, Charles, 46). The industrial revolution is estimated to have taken place between the eighteenth and nineteenth centuries in Europe. Changes in terms of the transition from agriculture to industrialization were one of the main instigating factors of the unprecedented population growth in Europe. Industrialization has resulted in the growth and expansion of industries, such as services and manufacturing, all of which require land as a main factor of production in terms of the site of issue of the services and production of goods. Literature evidenced provides that in the period of 1870 majority of the labor force was embedded in agriculture as the primary source of income and sustenance. However, there was also dire need for transition from the traditional means of agriculture to large-scale farming for the increasing population. In addition, this resulted in the struggle for new means of economic growth. This resulted in innovations, which encouraged large-scale farming resulting in the dire need to dispose the produce because it was in surplus. This was a driver for the need by European countries to engage in commerce to ensure that they were able to access varied products and sell their produce to foreigners (Wasserstein, 52). The developments in agriculture are evidenced in the modern European societies as they are able to ensure large-scale farming at negligible costs due to innovations in farming practices. In addition, commerce is also another major aspect in the modern society in terms of the economic activities engaged by the European societies. Technological changes have enabled increased productivity in economic activities such as agriculture. Innovations are aimed at enhancing productivity and increasing the economic benefits accrued from agricultural activities. Real estate is a lucrative economic activity, which has gained large-scale acceptance. This is because of the increase in demand driven up by increases in population. Increase in population translates in a dire need for land to increase production of goods and issue of services and agricultural activities, which form a substantial economic activity around the world. Modern land prices, when compared to historical land prices could be simply termed as exorbitant (Wasserstein, 57). In addition, issues such as politics have also been factors, which have dictated the ownership and ability towards the acquisition of land by the public in Europe. Policies instated in Europe have been major determinants in terms of enhancing or restricting the ability of the populace to acquire and own land in Europe. Economic conditions have also changed leading to changes in terms of ability of the populace in Europe to acquire and own land. Increasing costs of living have resulted in a scramble for the available employment opportunities, which are essentially inadequate for an ever-increasing population (Berend, 36). Economic conditions usually translate to the effects of aspects such as rates of inflation. Inflation determines the availability of disposable incomes, which in turn affect the purchasing or buying power of the population. Hence, a decline in the inflation rates usually results in subsequent increases in the disposable incomes and thus increases in the purchasing power of the populace. This usually results in economic effects such as property booms and bubbles which if unregulated could result in collapse of real estate markets. On the other hand, high inflation usually translates to reduced disposable incomes and the ability of the population to make real estate or land purchases. Hence, a landowner has the value of his or her land stagnating or declining. Reductions in value also translate to lower rates of real estate developments and the establishment of industrial plants (Berend, 39). Socio-cultural values of land in Europe differ from one region to another. Some parts of Europe only allow ownership of land at certain areas because of historical values placed on some parts of Europe. Land, which is regarded as a heritage, is usually regarded as government property irrespective of such land hanging, been under private ownership. However, there is a transition from the traditional means of business, which focused largely on manufacturing of goods. Consumerism has changed in that, specific focus on service industries than on products consumed is needed. This is because of the changes around the world in terms of consumer preferences and changing consumer needs and focus (Pounds, 57). Land value increase is attributable to improvements in the labor sector in terms of working conditions and remuneration accruable to a laborer. In addition, this is also directly intertwined to the increasing costs of living resulting in the dire need by the labor industry to give in to the demands for higher wages. In essence, land costs and inflation are mutual events, which affect the ordinary citizen. Land costs are determined by the costs of living. In addition, the products, which are derived for use by consumers, are usually produced with the availability of land. Products such as consumables are usually the modern means of sustenance. Some are derived through agriculture whereas others are derived from production processes (Pounds, 63). Hence, increase in the value of land usually translates in the increase, in costs of production of goods such as agricultural products from farms and other manufactured goods. This is because the cost burden is usually transferred to the consumer by either the farmer or producer to the consumer. In addition, production costs of goods are increased by costs such as lease for land and purchase of the same. However, such costs are recoupable as the probability of increase in the value of land is usually high resulting in increased value of the acquired land. Focus on industry and services have resulted in high demand for land, in urban areas because of the high number of population. Service industries usually require high turnover and traffic flow of potential customers for making tier sales. Hence, this resulted in abandonment of agricultural land and new focus on the service and manufacturing industries. Hence, land value is usually different in either the urban areas or the rural areas or between less populated areas and highly populated areas. This is because of the high value attributable to large movement of population because service industries are considered as the modern day businesses (Pounds, 68). Social value of land over the years has evolved because of the changes in the social norms and values. Historically land has been associated with wealth and power. However, in the modern world land is associated with peasantry and agriculture. This is because large farms are usually held by farmers, which might require extensive labor hours to ensure maximum productivity. Hence, modern society has changed in terms of the consideration of land. The value of land is usually associated with prime locations. This is evidence of the changes in the value land in that, urban land is essential in comparison to rural land, which might be more productive than the land located in the urban areas. Landowners over the years have faced challenges brought about by changes in the ability of acquisition of land. New policies have resulted in the reduction of ability of people to won land. Restriction of ownership of land has been necessitated by the need to ensure parity in the acquisition and subsequent ownership of land in a given country. Policies are instituted to ensure the presence of transparency in terms of land ownership. Land is historically an asset, which has been associated with graft in numerous countries around the world. It is also an asset, which has the potency to result in conflict, in the case of disputes over land. Due to the changes in governance structures, land disputes are on the decline. In addition, there are provided avenues for settlement of disputes such as through mediation teams and the main avenue, which is through law courts (Broadberry, Kevin, 47). However, the value of land is constant in that, it is associated with wealth but from a different perspective. Land is valued in terms of its accessibility and proximity of social services or amenities and to the urban areas. Changes in society such as increased rural to urban migration have resulted in the decline in the value of the land in rural areas. This has resulted in appending of high values on land and subsequent developments in urban areas because of the high demand of such land and the scarcity in terms of availability. This represents an elaborate demand and supply chain. The move towards industrialization was influenced by the availability of land and the presence of resources for production. Landowners during the historical period were forced to give up prime land for the establishment of industries and extraction of raw materials for the industries, which sought to satisfy an insatiable consumer need for the products. Additionally, this resulted in appreciation of land value and thus subsequent high demand for land (Brodaberry, 67). In conclusion, land is a primary factor of production as well as for economic development. This is because society appends high value to land as it provides raw materials, goods such as agricultural products, and provides for sites to establish industries and premises for issue of services. Land in Europe was historically sued for agriculture as the main economic activity. However, the economic activities in Europe have changed over the years resulting in a focus on new activities such as the service and manufacturing industries. This is because of the changes in social norms, values and resulting change in consumer behavior. Work Cited Brodaberry, Stephen. â€Å"An Economic History Of Modern Europe: Sectoral Developments, 1870-1914† Unifying the European Experience: An Economic History of Modern Europe, Volume 2: Pp. 1870-2000, 2005. Print. Broadberry, S N, Kevin H. O’Rourke. The Cambridge Economic History of Modern Europe. New York: Cambridge University Press, 2010. Print. Berend, T I. An Economic History of Twentieth-Century Europe: Economic Regimes from Laissez-Faire to Globalization. Cambridge, UK: Cambridge University Press, 2006. Print. Clough, Shepard B, Charles W. Cole. Economic History of Europe. Boston: Heath, 1952. Print. Pounds, Norman J. G. An Economic History of Medieval Europe. London: Longman, 1974. Print. Wasserstein, Bernard. Barbarism and Civilization: A History of Europe in Our Time. Oxford: Oxford University Press, 2007. Print

Linguistic Essay Example | Topics and Well Written Essays - 250 words

Linguistic - Essay Example Although OED describes itself as descriptive by taking a more objective approach: allowing English users to utilize words according to which way they think is more appropriate; somehow, it is not as descriptive as other dictionaries like Merriam Webster’s or American Heritage considering that it subdues itself from adopting slang, newly-created words. For example, both Merriam Webster’s Dictionary and OED recognizes the word â€Å"skunk†; nevertheless, OED sticks with the original meaning while Merriam Webster’s Dictionary takes a new definition of the word which means â€Å"an obnoxious or disliked person† (Merriam Webster’s Dictionary, â€Å"Skunk†). OED claims that "it traces the development of English from the earliest records, and formally from 1150 AD, up to the present day" (Oxford English Dictionary, â€Å"Guide to The Third Edition of the OED†). Anyone can nod as to the looseness of the rules in this dictionary, but still, it has the slightest leanings towards prescriptivism. Acocella (5) asserts â€Å"the most curious flaw in the descriptivists’ reasoning is their failure to notice that it is now they who are doing the prescribing.† OED and other descriptivist dictionaries are becoming more of a trendsetter rather than an agency to respond to the changing needs of the society. However, OED’s belief that it’s a descriptivist dictionary but claims it â€Å"does include information on which usages are, or have been, popularly regarded as ‘incorrect’† may just be a sign that it’s not fully descriptivist

International Financial Reporting Essay Example | Topics and Well Written Essays - 5500 words

International Financial Reporting - Essay Example The notion â€Å"true and fair view† has originated from British accounting. There has numerous definition of â€Å"true and fair view† as there is no exact definition available of the term either by the standard setters or in law or even through court verdicts. The notion â€Å"true and fair view† has never been defined officially and as the principle is dynamic, it is neither desirable nor possible to give an exact definition for the concept. (Evans 2003:312) However , in a French case that was decided in 1994 did mention about the phrase that termed it as a trust on adhering with accounting regulations, which does not automatically guarantee a true and fair view. IASB demands that financial reports should offer a true and fair view. US accounting regulation's demand that accounts should be presented as per generally accepted accounting principles. (Walton & Aerts 2006:69). As per IFRS, the general intention of financial reports is to offer a just and fair presentation of the modification or changes in the financial performance and position of a business organisation or a company. The Conceptual Framework of IASB advocates that fair presentation could also be mentioned as offering a â€Å"true and fair view†. However, IAS 1.15 standard specifically states that publication of financial reports, which is based on the chief hypothesis that the application of IFRS with further or additional dissemination, if needed, is supposed to present financial reports mirroring a â€Å"fair presentation.† ... needed, is supposed to present financial reports mirroring a â€Å"fair presentation.† Further, IAS 1 demands in the same tenor an unreserved and explicit of adherence with IFRS to be comprised in the notes to the accounts. (Walton & Aerts 2006:69). As per Walton, the three classes of significance of â€Å"true and fair view† are a residual, legal clause; a generally accepted accounting concept and an independent concept. Further, under the view of GAAP, the proposition for European harmonisation is that before the fourth directive, each member nation had its own â€Å"true and fair view.† Thus, to establish a synchronized â€Å"true and fair view† would need a common meaning or GAAP; and that it should be noted that actual words are just signifiers only. As regards to â€Å"true and fair view†, Walton’s general view is that it is having both a probable large political meaning and an operational meaning, when accountants are enhancing or defe nding their professional position. The notion â€Å"true and fair view† has been formulated in the UK footed on the following three fundamentals namely an independent concept; a legal residual clause and generally accepted accounting principles. (Evans 2003). A† true and fair view â€Å" is needed to accomplish â€Å" the goal of financial reports â€Å" which is to offer info about the status of the financial standing , financial performance and any modification or change in the financial status of a business or a company that is advantageous to a broader choice of stakeholders or users in arriving at financial decisions. (ISAB: IAS Framework 2001). In financial reporting, the â€Å"true and fair view† can be mirrored by four qualitative uniqueness namely undesirability; relevance; comparability and reliability. Financial reporting is the

Taste and Books Essay Example for Free

Taste and Books Essay Books are wonderful gifts to mankind. Books are useful in many ways. They educate, entertain and serve as good companions when we are lonely. They guide us when we are confused. They inspire us when we are low in spirit. They are men’s best friends. Books console us when we are in sorrow. We are never alone in the company of books. They demand nothing for the service they do to the mankind. The kingdom of books is as vast as universe. There are books on literature, science, fiction, history, art, culture, civilization, architecture, fashion, technology, philosophy, etc. Some books are for serious reading, some are intended to enrich our knowledge and learning. Many books give us an insight into various aspect of life. Books on travel and adventure infuse into us a spirit of fearlessness and adventure. The reading of novels is a pleasant pastime for many of us. This provides an escape from the din and bustle of life. One is completely lost in the company of good books. There is no sphere of life which has not been explored by the books. Books are good source of dissemination of useful ideas. They are effective tools to popularize the fruits of our research in various fields of knowledge. They help in the spread of our progressive views. They are reservoir of knowledge and information. They pass the knowledge and information from generation and generation. In fact, no single labour of human fruit has been as helpful to the advancement of civilization as books. Books are written in all languages of the world. The advancement of science and technology has brought about a great change in the field of books. Five centuries back, the books as we have today did not exist. But machines and technology have helped in the spread of knowledge. Moreover, the high percentage of literacy, the growth of libraries in towns and villages and growing fondness of the intellectuals to have their private libraries have led to the growth of publishing industry. This in turn contributed to the spread of knowledge and information. Books are written by experienced persons who are wise and have matured minds. They are full of ideas, and thoughts which enlighten us and guide us at the time of trouble. There are books which entertain, enthrall and thrill us according to our taste. Different people have different tastes and choices. As one grows old, one’s interest and taste also changes. A child may be crazy for comics, picture, story books or works of science fiction. Some people have great love for books. Books are their permanent friends. They carry them wherever they go. Books help to widen our interest. They broaden our outlook. They enrich our thoughts. They help us in understanding different aspects of life. They give us inspiration to do great things in life. They encourage us to fight the odds of life bravely. They fill our minds with noble thoughts. They awaken our souls. They mould our characters. But we should be very cautious in the choice of books. Books which are not good may mislead the readers. They can spoil us. Thus, books are a blessing. They are the treasure richer than the treasure of the king. This treasure is inexhaustible. They are the gold mines of art, literature, science and information. We should develop a habit of reading. It is good for us and society as well.

Teddy Roosevelt Essay example -- essays research papers

Roosevelt, Theodore (American President) (c. 1858-1919) Roosevelt’s presidency began with the chaos of McKinley’s assassination in 1901, when Roosevelt was 43 years old, and ended after his second term, achieved by his election to President in 1904. Although Roosevelt’s selection as McKinley’s Vice-President was more of a political pay-off, and the New York political machine, fearing an independent Roosevelt, was more than ready to say good-bye to Roosevelt as Governor, Roosevelt is acknowledged by most historians as having waged a vigorous and winning campaign, while his presidential candidate seemed content to stay behind. With McKinley’s assassination, the Republicans and the country had bought themselves an activist president who, in the span of seven years, turned an isolationist America into a world power which created American leadership and power in world affairs, dealt corporations a new set of rules, enacted a philosophy and policy of environmental conservation, set forth a progressive agenda which held Victorian values at its fulcrum, and dealt with the social and economic issues presented by the burst of immigrants. The issues of non-english speaking immigrants, large corporate trusts acting with greed, defining America’s role in the world politic, all faced Roosevelt, as they face Bush today. Moreover, Roosevelt fashioned policies, rationales, and enacted legislation to engage this challenge and pursued an even more aggressive presidential activism in his second term. This activist president, currently the public icon invoked by members of both parties, was descended from a mixed cluster of immigrant lineage: Welsh, German, and French, to name a few. Influencing his political ambitions and policies were his wealthy background; he was the son of a wealthy and successful glassware merchant whose Dutch family of origin, the Knickerbockers, had been residents of Manhattan since the mid-1600’s. Born on October 27, 1858 in New York City, â€Å"Teedie† was known as a scrawny, weak child, sick from asthma, until his father’s comments regarding his physique as representative of his manhood, turned young Teddy around. Because of his father’s tremendous influence over the young boy, Teddy responded to his father’s encouragement and began to work out vigorously in a gym installed in the home by his father. Despite his efforts to improve his physical abili... ...moral decline), the nation was in peril. Thus, these values formed the fulcrum of Roosevelt’s presidential actions: active mind, healthy body; corporations must do the â€Å"right† thing by society or government could compel them to do â€Å"good†; immigrants must be assimilated into American society with inter-marriage by the third generation; an only English spoken policy was necessary to promote assimilation. He had a natural ability to communicate with the American people. Roosevelt integrated the physicality and roughness of the frontiersmen with the values of a reformer. Roosevelt believed that politicians could make life better for the average citizen. Roosevelt created and implemented a reformist agenda: the Panama Canal despite Colombia’s protests, â€Å"dollar diplomacy† became a substitute for inter-countries’ debt, reserved thousands of acres of federal lands for the people and further, established an activism in the president ial office which has influenced its occupants for years to come. Although Roosevelt wished to serve again in 1912, he failed to halt Woodrow Wilson with his newly formed â€Å"Bull Moose Party† and lived the remainder of his life as a hunter and informal ambassador.

Success Factor for Zara

What are the Key success factors of Zara? â€Å"The ability to respond to customer requirements on a timely basis has always been a fundamental element of the marketing concept. † Martin Christopher et. al. Hence, it is important being proactive in a market such as the fast-fashion industry which Zara is operating in, time is always a crucial factor. The fast-fashion market, amongst other things, is characterized by short lifecycles, high volatility, low predictability, and high-impulse purchases. Therefore, it is very important for Zara to constantly have their products available for a potential customer in order to sell and earn more profit.Since the fast-fashion market is also constantly shifting and trends can be replaced over a night, there is a low predictability. This makes it a lot more difficult to compose accurate forecasts. In order to stay competitive in the market, it is important to take be aware of these types of factors mentioned above, and make sure you are no t left behind. One of Zara? s distinctive key success factors is their valuable and planned integrated logistics and supply chain management. This allows them to further develop and deliver a competitive marketing mix.In a marketplace where customers expect to find the latest designs that are still in fashion, Zara is an outstanding example of how to make that possible. It usually takes at least six months in the textile industry for an idea to be transformed into a product and reach the store shelves. By reducing the lead-time through efficient channel management, Zara has developed a vertical integrated business model, which allows them to change some parts of their inventory in only a couple of weeks. This strategy is nowadays known as the â€Å"Quick Response† (QR).The definition of QR can be described as; â€Å"A state of responsiveness and flexibility in which an organization seeks to provide a highly diverse range of products and services to a customer/consumer in the exact quantity, variety, quality, time, place and price, as dictated by real-time customer/consumer demand. †Neil Towers et. al The QR strategy allows Zara to create products that are inspired by the latest fashion trends from around the world through diverse media sources displayed to a broad public, leading fashion scenes, movies, bloggers, etc.By having products for a reasonable price with relatively high quality, Zara is one of the leading fast-fashion companies in the world. But, how does their company function to have this much success? One of the main reasons why Zara is so competitive is because they have suppliers that are strategically designed to fulfill their conceptual idea. Their conceptual idea is to supply trendy clothes, to a broad market, for a reasonable price. Almost 30 percent of the company`s suppliers are situated in either Spain or parts of Europe.The local presence of the manufacturing facilities within a short distance to many of their stores and hea dquarters, has allowed the company to be very flexible in a changing market. With high integration to the company? s suppliers, the products that are highly sensitive to availability and proactive response are mainly produced in Europe. They minimize costs and lead-time because of the local presence, which makes it possible to introduce new and fresh merchandise multiple times a year.Since, major parts of the production are situated locally, the products can reach the stores at the right time, meet the actual demand, and reach a higher sell-through. The other part of their product line that is not susceptible for seasonal change is outsourced to low-cost-labor countries in Asia. The combination of suppliers works as a competitive advantage. It promotes high-impulse purchasing from their new lines while still profiting for their basic product lines. Another key success factor is their pricing strategy.The company uses a market-based pricing strategy, which means that they design prod ucts at a fixed price according to what the costumers are willing to pay. All the costs to produce and deliver the product combined with the planned gross margin for profit are then calculated in accordance to the final retail price. Besides the pricing strategy, Zara also uses a market-oriented approach, which refers to being aware and predicting costumers hidden needs. As studies has revealed, the company only spends one percent of their annual turnover on advertising.They put most of their resources into using modern technologies, such as point-of-sales data collected from their stores as an effective communication tool. By regularly collecting POS-data, and translating the information into real demand and different consumption patterns, the company can deliver the exact quantity of merchandise, at the right time, to their stores. This activity minimizes the costs and results in higher profit, which can be used for other business activities such as expansion, product development and so on.Not to mention, it also makes it possible for the company to evaluate and predict which products that will have a shorter or longer product life cycle. Hence, will result in higher sell-through, quick elimination of products that are out of fashion, and replenishment of new merchandise. Another reason to why their internationalization has been so successful is the fact that their merchandize can be sold in many different parts of the world. Even regardless of cultural differences. One of the reasons is that their consumer’s love garments from the high-end market and Zara copies those garments at lower prices for their consumers.In some cultures the company is using adaptation tools. For example, each store manager is allowed to make slight modifications to the assortment to achieve a better match between supply and demand in certain countries. In addition, the location of the stores is another successful factor. Zara has chosen to position their stores in attractive and high-trafficked locations. Also, Zara’s stores are designed by professional store decorators in accordance to Zara’s business image. The interior of the Zara in Central for instance is very similar to other high-end fashion stores, which gives customers the same feeling as shopping in a luxury store.References Used the two articles posted by Dawn on FB Lectures Tutorials And: Retrieved on 2012-03-11http://www. google. com. hk/books? hl=sv&lr=&id=-9Ja0ZQ6gSMC&oi=fnd&pg=PA62&dq=market+orientation+and+supply+chain+management+in+the+fashion+industry&ots=0FiX4Yvyf5&sig=BoBe-KOlSiOaY6igTvN7NvyPVYM&redir_esc=y#v=onepage&q=market%20orientation%20and%20supply%20chain%20management%20in%20the%20fashion%20industry&f=false Retrieved on 2012-03-11 http://martin-christopher. info/wp-content/uploads/2009/12/CREATING-AGILE-SUPPLY-CHAINS-IN-THE-FASHION-INDUSTRY. pdf

Hormel Foods Analysis - Free Essay Example

Sample details Pages: 7 Words: 2069 Downloads: 3 Date added: 2018/12/29 Category Food Essay Type Research paper Level High school Did you like this example? Hormel Foods is a big food processing company which has over the years grown into an iconic company in the food industry. The company mainly deals in meat products such as turkey and chicken. The company usually engages in products in the meat industry where it controls a high part of the market in the industry. Don’t waste time! Our writers will create an original "Hormel Foods Analysis" essay for you Create order The company has grown to be a business hub worth admiration. It deals with many types of products which are all in the food industry. The company is divided into five main business models. The main products are Refrigerated Foods, Turkey store, Speciality foods and international products. Some of their products are Hormel Chilli, SPAM, Wholly Guacamole, Hormel Black Label Bacon, Hormel Party trays, Skippy peanut batter, Jennie-O turkey products, Lloyds barbecue products. Over the years, 6the company has acquired some other enterprise to build up their business. One such move was made in 2015 when it purchased the Applegate Farms. This moves the company receive a very high growth brand in the sector that involves natural and organic products. Apparently, at the time, the Applegate company was the largest brand in the natural and also the organic meats sector. In the years 2016, the company has made loads of revenue from poultry and perishable items. Almost two-thirds of their revenue got generated from the items. SWOT Analysis The company has some aspects bearing in mind that it is a huge company. One of the main strengths the company has is that it is endowed with a high level of management expertise which has enabled it to maintain a high level of competence while it also maintains a food balance sheet., The company has continued to maintain a good expertise by maintaining more and more acquisitions. One of their big acquisitions is that one of the Applegate company. This has enabled the company to maintain a good brand name. This is because it has well maintained the other companies that it has acquired. Another strength of the company is that there has been a constant increase in the demand for protein foods. Hormel is on the right side of this trend. As the world continues to grow, more and more people continue to appreciate the culture of eating meat products. There has been a huge growth in the number of people taking protein products. Apparently, there has also been the incorporation of proteins into other foods which do not require proteins (Townsend Consulting 67). Additionally, the companies are a huge company. In that sense, it has economies of scale. The company controls a huge part of the American market. In so doing, it purchases products in bulk which enables it to sale the products at a lower price since it enjoys economies of scale. This enables it to buy and sale at an advantage compared to its competitors. Weaknesses The Hormel foods company has most of its products in an area where there is a high level of competition. This makes the company spend so many resources in the process of marketing the product. In such a situation, a company cannot claim to fully control the product market. In light of that, they have to spend so many efforts in trying to ensure that they completely sell the products. One of the major forms of competition in a highly competitive market is reducing the prices of the products completely. In so doing., Companies compete at a higher level with their competitors Lower prices are a good and the most effective way to compete with competitors in a highly populated market. As such, the Hormel company has to forego a huge profit merging so that it can keep up with most competitors in the market while it tries to make a competitive survival in the said market (Louderback 57). The Hormel foods company has not invested a lot of money in the field of research. There are some areas in which the company can invest in such as the marketing field. The Hormel company ought to compete with other companies in the way they market their products. However, they have maintained the old forms of competition over time without looking for new means of production.The companys lack of investment in the research area causes the company not to have a good edge over other companies. This is a major weakness for the company in question. The company has maintained a high level of production sand sales over the years even as it is seen in their 2017 financial report. However, they have not had a good level of growth over the years. Their overall economic growth has been at an alarming low. This situation makes a very dangerous situation for the company where it risks losing all of its market shares (Townsend 37). Apparently, the company could even lose business if there comes another company with a dynamic shift in its methods of operations. As such, it is important that the company maintains a high level of dynamism to ensure that it maintains a high market share no matter the fact that it already has a huge market share. This will also enable the company to grow economically in a very short period. Opportunities Harlem has of late been improving its operations in international communities. It is going beyond its normal American market. Such countries where the company has improved its operations to are Mexico, Japan, Australia, Canada and England. This move enables the company to efficiently increase its market share. Apparently, there are some factors at stake when selling the product to the international markets. To begin with, the company will get to interact with a new market. Apparently, people usually appreciate the change in culture (International Institute of Business 67). This also comes with the entry of a new product line. The entry of Hormel foods in other countries will also prompt the people from those countries to purchase most of its products. This is because most people like to take products from other parts of the world. People deem it as a change in culture and hence would highly appreciate taking foods form another culture. Growing trends in the food industry come in as an opportunity for the Harlem Foods company. One of the greatest trends o0f 2016 and is set to continue occupying the food industry is the employment of technological tools. Apparently, as at the end of 2016, there was more than $1 Billion in investments on food startups in the Silicon Valley. The company has a good opportunity to invest in the tech centre. This will make the company at a point of making lots of profits because they could invest in business a lot. If the company moves from their traditional form of selling into the new modern ways of product marketing and sales, then they stand at the chance of making do much money in the food industry. Another trend that may serve as an opportunity for the company is the new ways of selling food products. These means of making sales are propagated by companies such as Lidl, Aldi and Amazon Go. The Harlem company has been selling most of its products by listing them on stores in supermarkets. However, these new forms of making sales employ a very practical approach whereby there is a high level of interaction with customers while the company continues to make production easier. This form of making sales utilizes a very small profit margin. However, it also increases the sales of the product. On the other hand, the company does not have to worry about purchasing storage space since there will be enough storage space for the company as long as the third party companies continue to make sales. Additionally, this form of making sales saves the company the stress of making losses through spoilt products. This is because most of these companies only make sales out of ordered products. The refore, the company will not incur losses due to lost products. The Harlem foods company need to take note of these opportunities and move 9into a seasoned period of growth whereby they will obtain huge growth out of technology. The basic size of the company regarding revenue production yearly states it at an upper hand over most of its competitors. Apparently, it can make very dynamic moves since it has the resources to do so. For instance, all the opportunities listed above require resources to actualise. As a matter of fact, in the technology sector, a company will require a huge amount of capital before it can create a technology that is mind breaking. Additionally,m the company will need to do a lot of research to come up with the right technological mix that fits the client while it also makes various inroads to try and please the customer so that he can make more and more sales. Threats The nature of the Hormel foods company dictates that it depends on various third parties to ensure that it advances its business. This is evident from the fact that the company is a production company. As such, it bears a lot of risks if there are disruptions in the markets where the suppliers deal in. For instance,m disruptions among the meat producers may cause the company a lot of pain because they do not have a lot of control over the markets since they are not in their line of production (Creative Educational 56). For instance, in countries where rain majorly runs the economies, it is very hard for the companies to continue making trades when the businesses do not have rain. For instance, when a drought occurs in such a country, then the country gets to have a shortage in the supply of animals. Additionally, the animals might even die from the lack of food. This situation leaves the Harlem company in a very bad situation despite the fact that they themselves might not be affecte d by the drought. Forecast The company is at a transitioning phase where it has a big potential. However, it stands to lose all this should it fail to capture all the advantages that it stands to gain if it takes into account all the advantages it has and the opportunities at its table. The company has a wide array of economies of scale bearing in mind that it has so much products on its line while it also maintains a huge number of customers. The company is able to continue its growth and will increase its growth if trades in measures that are effective as deemed by financial dynamics. Secondly, the company can continue to have a huge control in the foods industry due to its huge customer base. However, as the company continues to sale its shares at a constantly high range, then they may fail to make the prerequisite sales required. Secondly, they may fail to have enough proceeds from the sale of shares and hence reduce their revenue streams. The company needs to increase its touch with technology. Over the y ear 2016, the food industry faced a huge dynamic shift in that there was a huge involvement of technology in the industry with an average of $1 Billion being invested in the industry. AT o maintain growth,m the company ought to develop measures to keep up with world trends so that it does not get caught up with the technological bubble. The company is expected to have a constant growth of 2.5% over the next ten years up to 2028. Valuation Expanded Football Field Comparable Company Analysis The Hormel Foods company is expected to have a similar growth to that of the companies listed above that have similar growth levels. Most of these companies are in the range of Horlem in terms of sales and profit margin. Discounted Cash Flow DISCOUNT MEASURE: FREE CASH FLOW DISCOUNT FACTOR: WACC WACC: 8.78% GROWTH: 2.50% PV OF FCF: $1,136,405.86 PV OF CONTINUING VALUE PAST 2020: $3,108,668.69 TOTAL ENTERPRISE VALUE: $4,245,074,548.35 TOTAL NUMBER OF SHARES: 76,520,000 EQUITY VALUE PER SHARE:$55.48 Sensitivities Conclusions As seen from above, the stock is overvalued and our recommendation is to hold the stock at the current price. Current price: $78.74 Dcf analysis: $55.48 Works Cited Creative Educational Video, Inc, and Insight Media (Firm). SWOT analysis. CEV Multimedia, 2009. International Institute of Business Analysis. BABOK: A guide to the Business Analysis Body of Knowledge. 2015. Louderback, J.? G., and J. Holmen. Managerial accounting. Thomson/South-Western, 2003. Townsend Consulting Group, and United States. Promoting environmental sensitivity: Business organization and operations. Townsend Consulting Group, 1995.