Protestant Reformation and economy

Introduction Social activist have been trying to determine the relationship between religion and economic growth especially during the medieval times in Europe and America. It has been argued that the emergence of Protestants from the Catholic Church had a positive effect in the economic growth. This is because Protestants had a capitalist ideology while the Catholics still held on to the socialist ideologies, which hindered economic growth.Advertising We will write a custom essay sample on Protestant Reformation and economy specifically for you for only $16.05 $11/page Learn More England and Netherlands for example attribute their economic growth during the 17th and 18th century to the change in their religion from the traditional Catholic beliefs. At the same time Spain and Italy saw a decline in their economy and political stability during the same period. Many scholars speculate that this fall might be due to the fact that these empires still held on to the traditional Catholic beliefs. Max Weber theory Many scholars have come up with theories which have tried to explain the relationship of Protestantism and economic growth during the medieval times. One of the strongest theories was put forward by Max Weber in his essay which was released in 1905 called Protestant Ethic (Cantoni 1). To this date historians, scientists and sociologists have never come to an agreement on the correct meaning of Weber’s ideas. However, during the early days, the essay was understood in its simplest terms where people believed that economic growth was tightly related to the changes in religion which were experienced during the sixteenth and seventieth century. With time, different people had different interpretation of the essay which brought about arguments as a result of difference in ideologies that people had. The sixteenth century is a period where Europe and America experienced a lot of economic changes. Much of these changes had alrea dy been experienced even before the period of reformation. However, it is during the reformation period that drastic changes occurred in the economy. That is why many scholars like Weber believe that the change in religion might have changed people’s ideologies, triggering economic growth. When people started to embrace the new religious ideologies they also developed the concept of capitalism, a key factor that led to economic growth over the years. This led to the development of trade on a credit system and the development of companies and trade unions. The western civilization was engaged in mass importation of sugar, silver and gold. There was also a massive increase in the Trans-Atlantic slave trade which involved large amounts of money that led to the development of the Atlantic coastal cities. This led to a shift in trade from the Mediterranean to the Atlantic as a result of the good market that the Atlantic region was offering. As a result some merchants became very r ich thus spread their businesses to new regions defying the rules which were set up by the state or the church most of which were governed by catholic beliefs. During these times many people enjoyed monopolies and thus imposed high lending rates to the loans which they offered to people.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In his essay Weber assumed that the western civilization was distinguished from other societies by its spirit of capitalism. This is because most of the people in these societies were Protestants and they embrace the worldly asceticism a reaction to the doctrine of predestination. He believed that greed and the love of making money were the key elements behind capitalism. Supporters of Weber’s Work Kemper Fullerton was one of the people who defended the works of Weber. He said that people have been having the element of greed all their lives but the con straints in the society suppressed this feeling. He believed that the elements of capitalism had been present in all societies but lacked the right of environment to sprout out. This is because the traditional religion and the early church were against the activities which would have led to the development of capitalism in the society. Weber also discovered that there was a difference between the lifestyles of the people who were Catholics and Protestants and that this difference could not have been just a matter of chance but it held some elements of truth behind it all. Therefore, Calvinism ethos resulted in the emergence of capitalism in the medieval societies. That is why Weber referred to Benjamin Franklin as the father of capitalism. Franklin most famous phrase was; time is money. People therefore needed to work hard all the time and make as much as they can because once time is gone it cannot be bought back. Therefore to capitalists, making money is more of a passion. As stat ed earlier, Weber believed that Protestantism had a direct influence to capitalism. In his thesis Weber looked at two villages in ancient Germany (during the sixteenth century). One village had Catholic believers while the other had protestants, mainly Lutherans. These two villages therefore offered extreme conditions for his studies. He managed to notice that Protestants earned more income as compared to the Catholics. He also noticed that the Protestants attended technical schools while Catholics attended liberal art schools. He therefore concluded that Calvinism was successful in instilling the notion that work and moneymaking was a vocation. This attitude thus could have been the avenue through which capitalism rose through into the modern society during the medieval times which later led to industrialization and economic growth in Europe and North America. As a matter of fact, many religious scholars also point out that Calvinism was a means through which bourgeois and urbaniza tion developed from which finally led to the growth of businesses, the economy and industrialization.Advertising We will write a custom essay sample on Protestant Reformation and economy specifically for you for only $16.05 $11/page Learn More People thus became rational and developed industrious spirits since they knew that hard work led to success at the end of the day. People therefore dedicated much of their time in commercial activities and accumulation of capital. Calvinists cities also approved imposition of interest rates on money borrowed especially for commercial purposes, a thing which the catholic cities had refused to approve. Interest earned from money earned made the lender to feel the value of his money and also gave them extra money to invest in other businesses. This made the economy of protestant cities to be much stronger compared to catholic cities. One should thus expect as a result of these theories that protestant cities had a st ronger economic growth as compared to catholic cities especially if the cities had a strong potential in commerce and trade. Other theories suggest that the rise in Protestantism changed people beliefs and ideologies. These changes had a positive impact in the development of the spirit of commerce in individuals. This is because these beliefs had a form of economic teachings to the people who believed in them. Some branches of Protestantism like the puritans and pietists might have led to the emergence of modern science. The protestant teachings also stressed on individual freedom and flexibility in life which might have made individuals to be open to modern ideas. If these theories are true then Protestantism might have played a huge role in economic development and industrial revolution during the medieval times. Other scholars suggest that trust is a major element in the development of strong economic ties and market exchange. In ancient civilization when cities were under the ca tholic rule there was lack of trust even among the leaders of the society. This is because the hierarchical leadership under Catholicism discouraged horizontal ties among people leading to lack of trust in these individuals. Hierarchical states thus performed in a somewhat poor manner in terms of political stability, economic development, civic participation, development of infrastructure and corporations. Further studies on the issue show that Protestants are not likely to lie on taxes, take a bribe but might easily trust a stranger unlike Catholics who do not easily trust strangers, teach their young ones thrift and do not deal well with competitions. This might be reasons why Protestant states grew stronger in terms of development as compared to Catholic states.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More To expound further on the theory, it is believed that Protestants Cities taught their people how to read and write thus they were literate unlike the people living in catholic cities. They therefore could read and interpret the bible on their own which may have lead to the accumulation of human capital. This may have led to the development of the industrial economy by the Protestants especially during the nineteenth century. A classical example of this was in the Prussian communities who were mainly Lutherans and were taught how to read and write while they were in elementary schools. They thus became literate and acquired much wealth both in the cities and on the countryside which gave them a strong base of economic capital. Historians have gone on to analyze deeper the work of Weber and discovered that his work had a global and universal application. They say that he might have invented the term rationality as a key aspect to the development of modern capitalism. In his thesis, th e term rationality distinguished modern capitalism from other forms of development. According to these historians, rationalization in an individual can be measured as the degree which magical thoughts and beliefs are replaced. These thoughts and beliefs are strong in individuals who believe in ancient religion such as Islam, Catholicism and other ancient religions. This is because the orientation of religion contemplates on magical beliefs which hinder economic development. That is why dominant religions of the world during the medieval times did not have a strong economic base. The people who believed in the doctrine of predestination, the bible was seen as a sole authority which put an individual directly before God. This had the effect of displacing the magical beliefs which were the key elements of the ancient religion giving an individual the chance to get in touch with God directly and to make his own decision. This is the point at which individuals started to become rational in their thoughts and behavior. It came as a result of them being able to decide what they want and what they did not want. In the end capitalism emerged as the people had the thirst of making money and gathering capital. Calvinism thus led to the spirit of capitalism to develop in the people who believed in this new religion. Critics of Weber’s work However, not all historians and scholars were in line with Weber’s thoughts and beliefs of the development of capitalism. This is because Weber believed that capitalism developed as a result of the reformation that led to the development of Protestantism. Some scholars and historians argue otherwise since they believe that capitalism had long been experienced in the western civilization before the period of the reformation. It is just during this period that much of the development of capitalism was experienced and that is why Weber and other scholars think that capitalism may have been related to Protestantism. A theory w hich was advanced to critic the work of Weber was referred to as Leuthy Thesis (Wright 5). It was advanced by Herbert Leuthy, an Italian politician. This theory is in line with Weber’s thesis that the western civilization is characterized by the ideology of rationalism amongst individuals. However, it rejects the fact that capitalism and economic development during this period is related to Protestantism. According to Leuthy, the development of all sectors of the economy such as technology, economy, development of the mind and the liberation of man’s personality were related to the spirit of wealth accumulation which preceded the reformation in all parts of the western civilization. However, the other half of Europe did not experience these developments because of inquisition and trials based on heresy. In Calvinist Europe on the other hand, spiritual liberation was connected with the dropping of submission and fear, factors which led to the development of the modern c ulture that embraced capitalism. As a result, radical changes took place in the society. People started to apply and pursue scientific knowledge while the need of democracy in the society started to emerge. Meanwhile, a move to counter the reformation that was led by catholic scholars discouraged a free market which the forces of demand and supply determined the price of goods and services; a market which the Calvinist had established. These catholic scholars followed the beliefs of Aristotle which stated that an ideal market should be composed of natural goods which were mainly agricultural in nature. Businesses such as loaning money for interest and selling of goods for a profit were discouraged. The people who believed in the Roman Catholic religion were unable to adjust to the changes which had hit the market. They saw that this new culture was against the beliefs and practices of their religion. They therefore rejected to be involved in the market and economic activities leavin g those who were actively involved to wallow in sin. All these events had taken place even before the reformation and led to casuistry. According to Leuthy, Calvinism did not favor casuistry and led to its decline after the reformation started to be experienced. Protestantism only legitimatized capitalism which made people to have a true and natural economic spirit. It also clearly differentiated between private charity and acquired economic activities, things the Catholic Church was against. Due to the poor beliefs of the Catholic Church, many merchants and liberal Erasmian fled the religion and joined Protestantism bringing in their talents and skills. In their previous societies, merchants and Erasmians worked as subjects of the rulers, but in these new lands they actually earned money from their services leading to a rise in their living standards. Another scholar who differed with the works of Weber was Luther. He did not encourage avarice or greed. Avarice makes money to be de emed as the most necessary thing in life even though it cannot be eaten. It should be noted that Luther did not attack the development of trade and commerce. However, he was against their incorrect usage where one individual took advantage of the other in the name of trade. He also complained about usury especially in the advancement of loans where the lenders usually looked for loopholes to make the law to be in their favor. He believed that in the event of loan advancement, a security should be used. If a profit was earned in the process it should be shared between the two parties and losses should also be shared in the same manner. Impact of the Reformation on the Social and Economic Realm This whole argument can be summed up by looking at the impacts of the reformation on the social and economic realm. The works of Weber where the aspect of Calvinism was expounded on and the works of Luther both had a common feature of controlled begging as a means of discouraging poverty in the society. Through these concepts, lending of money started to follow certain stipulated laws and procedures which other economical sectors also started to follow. Drastically with time, capitalism emerged from these practices and beliefs in the society. This therefore led to the establishment of a rational society. Private and individual needs were abandoned and people started to focus on community issues and problems using a secular and rational approach to solve these issues. They people therefore recognized poverty as a bad thing and wealth to be a good thing in the society. That is why almost all communities in the world even at the present moment strive to eradicate poverty from their society and try to attain economic stability so that they can have a stable lifestyle. Conclusion The reformation had drastic impacts on the development of the economy. Although many contrasting theories have been advanced to explain the phenomena, they all have some common elements. During this p eriod people were rebelling against the Catholic Church and started protestant religions which gave the people the freedom to think and choose what is right. The ideologies of rationalism and capitalism developed in them. As a result, the economy of the states which believed in the protestant religion started to grow. This was a positive change in the lifestyle of man and his society. Thanks to the reformation people could now earn from their hard work. This made them appreciate their efforts. People could also engage in numerous economic activities which if carefully planned would earn them a good profit. The increase in income improved their living standards, gave them a chance to expand their businesses and also gave them the chance to come up with new ideas and innovations. In the end the general economy of these societies and of the entire world as a whole grew, revolution in the industrial and scientific world occurred leading to where the world is at the present moment. Works Cited Cantoni, Davide. The Economic Effects of the Protestant Reformation: Testing the  Weber Hypothesis in the German Lands. 2011. Retrieved from www.econ.upf.edu/docs/seminars/cantoni Wright, William. Economic Impact of the Reformation. Age of Reformation. (2003): 1-9. Retreived on 17 March 2011 from www.utc.edu/Faculty/Bill-Wright/ecoimp.pdf This essay on Protestant Reformation and economy was written and submitted by user L1ndsey to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Online Public Schools for Wisconsin Students

Online Public Schools for Wisconsin Students Wisconsin offers resident students the opportunity to take online public school courses for free. Though students normally attend a public school in the district where they live, Wisconsin allows students to enroll in public schools in other districts, so although a school is chartered in one district, students statewide can enroll.    JEDI Virtual Online PK-12 School JEDI Virtual School, a not-for-profit charter school, offered its first distance education class in the 1996-1997 school year and was the first school of its kind in Wisconsin.   JEDI focuses on personalized attention. Full-time online students are assigned, in addition to their highly qualified teachers, learning coaches to help with time management and tracking students’ achievements. Also, a student services coordinator oversees course schedules, monitors grades and attendance, and makes any necessary schedule adjustments. Curriculum options include AP and dual-credit courses. The chartering district is  Whitewater Unified School District.   Wisconsin Virtual Academy Wisconsin Virtual Academy (WIVA)’s core values are â€Å"Achieve, Communicate, Collaborate Engage (ACCE).† WIVA promotes a collaborative, student-centered approach to ​developing young adults who are ready for college or a career. With the school’s individualized program, K-5 students learn at their own pace in a mastery-based curriculum. Middle school students study core subjects as well as self-guided electives in music or world language. High schoolers have a diversity of options for meeting their educational needs. This full-time, tuition-free, online public charter school is authorized by the McFarland School District. Monroe Virtual Middle School​​ The Monroe Virtual Middle School (MVMS) uses computer-based courses, correspondence, independent study and experiential credit-based options to offer a flexible approach to earning middle school credit. Approved by the School District of Monroe Board of Education, MVMS offers a three-year middle school diploma. The MVMS program understands that all students are entitled to have the opportunity to earn a middle school education, but not all students are well served in a traditional classroom setting.  Students at MVMS can earn credit for work study and service learning.​ eAchieve Academy The vision of the eAchieve Academy team  is as follows: â€Å"Using todays technology to educate tomorrows leaders.†Ã‚  All Academy faculty and staff pledge to help students develop to their full potential and lay the groundwork for life success. To bolster that pledge, the curriculum at eAchieve is constantly evolving, as courses, technologies and social opportunities are added to address the needs of the diverse student body. First known as iQAcademy Wisconsin, eAchieve Academy has the most graduates and some of the best ACT and high school WKCE scores of any online Wisconsin high school. eAchieve added its virtual middle school in 2009 and its virtual elementary school in 2014. The school can boast of four National Merit Scholar Finalists and 916 total high school graduates since 2004 (as of May 2017).

Article Annotations Essay Example | Topics and Well Written Essays - 500 words

Article Annotations - Essay Example The public who are the major focus of the study are the major participants. They are further sub grouped basing on their age, race se occupation and knowledge on the importance of physical activity. In addition, the center for disease prevention and behavioral risk factor surveillance system. These two groups in the study play a pivotal role in reaching out to the people while administering the questioners. They are likely to reach a large number of people for the fact they are already established with a program in place that involves annually data collection. Thus, they just needed to add into their questionnaire a section that focus on physical activity and the level of happiness. The researchers utilizes the qualitative method of study. This was achieved by use of questioners and interaction with the people in the community. A number of variables were used in the study to determine the effect of activity on one’s happiness in different people. Some of the variables involved included sex, age, marital status, occupation, race, and physical wellbeing. Either observation or subjective reporting measures the effect of variables on one’s involvement in physical activity. The study is a qualitative study that utilizes the use of questionnaires to obtain information from the participants. There is also a retrogressive study of the participants to establish the relationship of the variables with their involvement in physical activity and the outcome of the involvement. From the study, it is evident that physical activities plays a great role in promoting ones wellbeing. Apart from keeping the lifestyle diseases at bay, it increases the general happiness in one’s life. This is achieved through mood elevation after a sporting activity and elevated self-esteem from the achievements in the activity. A number of factors

My Position on the FDA Essay Example | Topics and Well Written Essays - 750 words

My Position on the FDA - Essay Example While debates continue, on risks associated with the GMO use to human health, questions continue to arise as to whether FDA should take action in assessing the risks of these foods, in isolation and separately from GM foods and require labeling of food items, to have consumers informed, about the presence of GM ingredients, to enable them to make purchase decisions accordingly. I strongly feel that FDA played a significant role in approving the GMO for the reasons that thorough research and testing is done to ensure that these products are safe for both human and animal consumption. Food and Drug Administration (FDA) of the United States is charged with a number of duties and one of such is protection of the public health through assuring the efficiency, safety and security of medical devices, cosmetics, biological products, food supply together with human and veterinary drugs. FDA is a federal agency that deals with the regulation of GMO products among other agencies, which include the United States Department of Agriculture (â€Å"USDA†) and the Environmental Protection Agency (â€Å"EPA†). The FDA policy leaves the duty of ensuring food safety entirely to the manufacturer or producer. So the company to assert the safety of an item meant for consumption and not any independent review team. The health of the prospective consumers will, therefore, be left at the mercy of companies or manufacturers that could just be interested in maximizing turnover while treating with little regard the need for the GMO foods to meet certain health standards. The FDA guidance to industry issued in 1997 did cover voluntary consultation procedures, though it still depended, upon the product’s developer, to offer safety data. At present, there is no regulatory scheme for the GM foods to confirm their safety for human consumption. There is an increasing use of chemical herbicides, which are poisonous and engineered particularly for killing plant life.  

Co-ordinate implementation of customer service strategie Essay Example for Free

Co-ordinate implementation of customer service strategie Essay Brief Background McDonalds is a well admired, large organization of approximately 5,500 locally owned and operated businesses all around the world. Food quality is the key at McDonalds as is has implemented rigorous food safety standards for almost 50 years, and the fast food restaurant has been recognized for its popular and well known meals, ranging from delicious burgers, well known French fries, healthy salads, rolls, fruits, deserts, and also breakfast foods such as bacon and eggs, cereals and pancakes. The restaurant also has Ronald McDonald House Charities and its global network of independent local Chapters, which help find, create, and support programs that directly improve the health and well-being of children. There are many employees in each McDonalds restaurant which are well trained to help serve the more than 47 million customers, in 119 countries from more than 30,000 different restaurant locations. The specific department on which is being focused on this report revolves around working on the front counter; this includes customer service, preparation of the meals, dealing with cash, cleaning and stocking. Organisations internal and external customers Working on the front counter at McDonalds deals with the external customers, these are the people who pay for the product/food that the business has to offer. The employees, who work on the front counter, act as internal customers towards the employees at McDonalds who work in the back. People working on the front counter next-handle the jobs that have been completed from out the back where the food is made. When an external customer walks into a McDonald restaurant, straight away their main needs and expectations is to firstly walk into an attractive well maintained and clean environment, to have a fresh tasting meal delivered to them politely from a well organized employee, who should prepare the meal quickly but carefully, making sure no mistakes are made. Each and every employee has the resources they need to serve the customers so they can be prepared as each customer approaches. Restaurants are adequately staffed to allow for a good customer experience as well as to provide schedule flexibility, work-life balance and time for training. When serving the customers, employees should act in ways which make the customers feel as though they are happy with the service and would continue to do business with the organisation. Therefore the employees are trained to use appropriate communication techniques to make the customer feel comfortable, welcome and satisfied with the service. This means that every customer should receive respect, patience, friendliness, and good quality products. On behave of McDonalds (2004), claims that At McDonalds, we know that people are our most valuable resource. We aim to be the best employer in each community around the world where we do business. Read more:Â  Customer Service Essay How the organisation recognizes its customers requirement McDonalds is well known as a fast food restaurant, therefore the meals are expected to be delivered to each customer in a fast, efficient way, but in the same time, the meals need to be prepared cautiously to make sure no mistakes are made and to also make sure that the meal is fresh and of great quality. Another issue concerned with the service is the customer rush this is when many customers all approach at once. This usually occurs during lunch time, straight after school hours, and around dinner time. When there is a customer rush, the store should be adequately staffed to allow employees to be prepared and deal with the large group of people as quick as they can. The organisation becomes aware of the requirements from previous circumstances when customers complain that their food is not fresh, or if they have been waiting a long time for their meal to be prepared. All McDonalds restaurants have possession of a particular McDonalds owned clock which works as a timer and helps in the process to distinguish how long the burgers have been sitting for. This process prevents the burgers from going past the stage where they are not fresh anymore. The fry station in which the fries are made also has a separate timer which goes of when the fries are no longer fresh. From time to time, accidents may happen and the timers may not be used efficiently. This is when the food gets cold, and customers begin to complain. When a customer complains of their food being cold or not fresh, they should be treated with extra consideration, get an apology and then have their meal replaced. The only way this problem can be resolved is for workers to make sure they keep an eye on the timers, and if there are no fresh burgers when a customer is served, they should be seated and have theyre meal taken to them within a few minutes. If a customer feels that they repeatedly receive food which is not fresh enough, and they do not mind waiting a few extra minutes, they can ask for a fresh burger. Then, they will be asked to be seated while their meal is being made. Another circumstance may be if a customer is allergic to something in a meal, or dont want a particular ingredient in their food such as pickles in their burgers or salt on their fries. All they need to do is make the person who is serving them aware of this. This is called a grill, and their meal will be freshly made as of above. All the staff of McDonalds are trained to deal with the customers in a pleasant manner. Any suggestions from customers on how the service, environment, etc. can be improved would be taken positively and the matter would be discussed with the management because McDonalds wants all customers to be happy. Some McDonalds restaurants have suggestion boxes where customers can give their thoughts of any improvement which can be made for customer service delivery. The suggestions from customers are a great help to the management, as the customers are the ones who the store is trying to impress. Within time, business technology can assist with the service at McDonalds by creating higher technology cash register, which may help with interpreting the order and assistance with the cash. The quicker the meal is ordered the quicker the meal can be delivered. Business technology could also assist with serving the customers on drive through. Our People Promise is more than words. McDonalds and its independent owner/operators have made a commitment to our employees that we strive to achieve with our actions every day McDonalds.com (2004). To deliver the People Promise, there are in place, five people principles which promote customer service strategies. They include Respect and recognition, Values and Leadership Behaviors, Competitive Pay and Benefits, Learning Developing and Personal Growth and Resourced to get the job done. The delivery of a quality service is essential to a successful business. For McDonalds to achieve our goal of being the worlds best quick service restaurant experience, we must have the best experience for all McDonalds employees. This quotes that the quality of the McDonalds business revolves around the employees actions. Another main issue is that there is always a clean surrounding of each restaurant, to make everyone feel comfortable to dine in. The main customer objective is when food is not fresh. To fulfill this objective, budget recourses which may help with the solution could include a buzzer or alarm to indicate that the food is off. Stronger heat may help so that the burgers, and fries stay hot, but this brings danger to the employees with the high risks of burns. The company can look further towards these issues to come to a resolution to the complaints. Conclusion The company of McDonalds is a largely known and popular business. The reoccurrence of so many customers indicates that it is successful. But there can never be enough of pleasing customers, because the more pleased customers become, the more business the store will get, this is from word of mouth. Therefore if a customer has a bad experience, the companys earnings may slightly drop. McDonalds is cautious of the way they handle customers, the environment, and the quality of their food. They are also aware of customer complaints or suggestions of improving the service, food, etc. This helps a lot to improve the business which is becoming more and more popular everyday. Bibliography * http//:www.Mcdonalds.com.au * Burbury E, 2003, Deliver and Monitor a Service to Customers, Software publication Pty. Ltd., Sydney. * McDonalds Pty Ltd, 2001, Crew Member Handbook. * http//:www.Mcdonalds.com (world wide)

The Coral Reefs Essay -- Sea Ocean Nature Wildlife Environmental Essay

The Coral Reefs Can we save â€Å"Tropical Rain Forests of the Ocean†? Anyone who’s ever scuba dived at a coral reef and seen the perfect handprint of dead coral can appreciate how fragile and delicate this ecosystem is. Coral reefs are not just rock, like some people believe, but are an animal. Corals are a type of animal called a polyp, the simplest of predators that eat meat in the form of drifting zooplankton†¦all corals have boarders, zillions of microscopic, one-celled plants called zooxanthellae that live inside the polyps and transform sunlight into oxygen, keeping the corals alive. As you will see, the corals need these algae in order to live, but too much is deadly. Coral reefs are limited to where they live. Most live in the narrow band of the equator, as they need light, the shallow near shore areas is where most coral reefs can be found. Their biological riches, though, hold value far beyond their beauty. After tropical rain forests, coral reefs may be the most biologically diverse ecosystem, holding a substantial portion of the basics of life on the planet. They form what is thought to be the most species rich ecosystem in the oceans, the crucible of life some 3,000,000,000 years ago. Covering just 0.17% of the ocean floor, an area the size of Texas, coral reefs are home to perhaps one –quarter of all marine species, earning them the title â€Å"the tropical rain forests of the Oceans.† Unfortunately, these beautiful and diverse ecosystems are in trouble from a large variety of sources. These sources being everything from natural water temperature fluctuations to being mined for building materials. One source of abuses to the coral reefs ... ...eefs helps, but does nothing to prevent runoff from pesticides and fertilizer. Many resorts educate divers about not touching the coral, but it is unrealistic to expect that the coral could not get accidentally bumped. One country could ban pollution, but if the next country doesn’t, what good does that do? It needs to be a global effort if we are to save these â€Å"tropical rain forests of the ocean.† Works Cited Butler,James N., et al. â€Å"The Bermuda Fisheries: a tragedy of the commons averted?† Environment Jan-Feb/1993/pg6+ Matsen,Bradford. â€Å"Travel to Exotic Foreign Lands! See Beautiful Coral Reefs! And Kill Them!† Mother Jones May-June/1998/:pg60+ Raloff,Janet. â€Å"Sea Sickness.† Science News Jan/1999/:pg72+ U.S. Coral Reef Task Force.www.coralreef.gov 4/23/00 Weber,Peter. â€Å"Coral Reefs face the Threat of Extinction.† USA Today May/1993/:pg62+

Duport Analysis: the Number Game

DuPont Analysis: Playing The Numbers Game! The summary of this case is that a newly joined CFO of a company, Plastichem Inc. , was able to turn the company’s unfortunate situation around when he first arrived. Yet, five years later, Plastichem has gone through some difficult times including their stock price/ratings severely dropping with no understanding as to why. The case ends with the CFO attempting to figure out what went wrong with the numbers he was given. To determine the liquidity, we used the quick ratio, current ratio, and interest coverage ratio.From these equations, the higher the ratios meant the better of the company’s financial condition, or more liquidity. The acceptable ratios vary from different industries. In general, company’s quick ratio should be 1 or higher, and its current ratio should be above 1. 5 to be considered liquid. In the comparison between two companies’ ratios, DCM Molding has shown a better financial condition on averag e in the past four years, and Plastichem has barely met the acceptable average or is below the average in the past four years. Quick Ratio = (Cash and marketable securities + A/R + Other Current Asset)/ Current Liabilities | Year| 2004| 2003| 2002| 2001| Plastichem| 0. 86| 1. 141| 1. 039| 0. 826| DCM Molding| 0. 99| 0. 93| 1. 114| 1. 568| | Year| | 2004| 2003| 2002| 2001| Plastichem| 1. 301| 1. 523| 1. 462| 1. 309| DCM Molding| 1. 632| 1. 518| 1. 826| 2. 095| | Year| | 2004| 2003| 2002| 2001| Plastichem| 0. 763| 1. 9113| 1. 962| 2. 442| DCM Molding| 4. 667| 1. 217| 4. 217| 8. 6| To measure the leverage, we calculated the debt-equity ratio. Plastichem had a relatively high Debt-Equity Ratio, which indicated that Plastichem was using many debts to finance its growth.High Debt-Equity Ratio also indicated that Plastichem bore more risk because the cost of debt (interest). The company would make more profit if the incremental profit exceeds the incremental cost of debt; however, the comp any may lose more money/ make less money if the incremental profit is less than the incremental cost of debt. | Year| | 2004| 2003| 2002| 2001| Plastichem| -19. 331| 5. 076| 4. 862| 1. 355| DCM Molding| 1. 192| 1. 477| 1. 274| 0. 714| To determine the profitability, we calculate the Profit Margin, ROE, and ROA. By looking at the ratios, Plastichem’s profit has dropped in the past four years.The high leverage may have enlarged the loss of the company. On the other hand, DCM Molding has shown a steady income/profit over the years. | Year| | 2004| 2003| 2002| 2001| Plastichem| -24. 14%| 0. 68%| 3. 45%| 5. 65%| DCM Molding| 5. 91%| 6. 19%| 5. 37%| 5. 09%| | Year| | 2004| 2003| 2002| 2001| Plastichem| ? | 3. 53%| 6. 38%| 17. 30%| DCM Molding| 17. 76%| 18. 64%| 17. 44%| 10. 95%| | Year| | 2004| 2003| 2002| 2001| Plastichem| -26. 90%| 0. 58%| 1. 09%| 7. 34%| DCM Molding| 8. 10%| 7. 53%| 7. 66%| 6. 39%| A common size balance sheet is a different type of balance sheet that hows each d ollar amount in a form of percentage of a common number from the actual balance sheet. Common size balance sheet is useful in comparing companies that have a different scale of operations. This type of balance sheet helps in observing at the firms as a common sized and it also helps in comparing the changes in various segments over a period of time. PLASTICHEM INCORPORATED| | | | | Annual Income Statements (Value in Millions)| | | | | 2004| 2003| 2002| 2001| Sales| 100. 00%| 100. 00%| 100. 00%| 100. 00%| Cost of Sales| 74. 81%| 62. 76%| 63. 39%| 65. 04%| Gross Operating profit| 25. 19%| 37. 24%| 36. 61%| 34. 6%| Selling, General & Admin. Expenses| 13. 27%| 18. 54%| 18. 66%| 20. 73%| EBITDA| 11. 92%| 18. 71%| 17. 95%| 14. 23%| Depreciation & Amortization| 6. 16%| 5. 51%| 5. 82%| 4. 41%| EBIT| 5. 76%| 13. 20%| 12. 12%| 9. 82%| Other Income, Net| -0. 17%| 0. 20%| 0. 12%| 0. 08%| Total Income Avail for Interest Exp. | 5. 59%| 13. 40%| 12. 24%| 9. 90%| Interest Expense| 7. 54%| 6. 90%| 6 . 18%| 4. 02%| Minority Interest| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Pre-Tax Income| -1. 95%| 6. 50%| 6. 06%| 5. 88%| Income Taxes| 0. 03%| 0. 71%| 2. 61%| 0. 23%| Special Income/Charges| -22. 15%| -5. 10%| 0. 00%| 0. 00%| Net Income from Cont.Operations| -24. 14%| 0. 68%| 3. 45%| 5. 65%| Net Income from Discont. Opers. | 0. 00%| 0. 00%| 0. 00%| 0. 00%| Net Income from Total Operations| -24. 14%| 0. 68%| 3. 45%| 5. 65%| Normalized Income| -1. 99%| 5. 78%| 3. 49%| 5. 65%| Extraordinary Income| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Income from Cum. Eff. of Acct. Chg. | 0. 00%| 0. 00%| 0. 00%| 0. 00%| Income from Tax Loss Carryforward| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Other Gains| 0. 00%| 0. 00%| -2. 02%| 0. 00%| Total Net Income| -24. 14%| 0. 68%| 1. 43%| 5. 65%| PLASTICHEM INCORPORATED| | | | | Annual Balance Sheets (Values in millions)| | | | | | 2004| 2003| 2002| 2001|ASSETS | | | | | Current Assets| | | | | Cash and marketable securities| 1. 20%| 1. 40%| 1. 47%| 0. 60%| Accounts receivable| 17. 34%| 17. 33%| 14. 74%| 21. 03%| Inventory| 10. 31%| 7. 01%| 7. 44%| 12. 88%| Other Current assets| 1. 54%| 2. 21%| 2. 03%| 0. 40%| Total Current Assets| 30. 40%| 27. 94%| 25. 68%| 34. 91%| | | | | | Non-Current Assets| | | | | Property, Plant & Equipment, Gross| 35. 44%| 28. 70%| 25. 85%| 47. 99%| Accumulated depreciation & Depletion| 14. 41%| 9. 13%| 8. 15%| 19. 42%| Property, Plant & Equipment, Net| 21. 03%| 19. 57%| 17. 71%| 28. 57%| Intangibles| 45. 67%| 50. 07%| 53. 53%| 33. 0%| Other Non-Current Assets| 2. 90%| 2. 41%| 3. 09%| 3. 52%| Total Non-Current Assets| 69. 60%| 72. 06%| 74. 32%| 65. 09%| Total Assets| 100. 00%| 100. 00%| 100. 00%| 100. 00%| | | | | | LIABILITIES AND EQUITIES| | | | | Current Liabilities| | | | | Accounts payable| 7. 71%| 6. 92%| 6. 03%| 9. 76%| Short Term Debt| 2. 48%| 1. 63%| 1. 03%| 3. 92%| Other current Liabilities| 13. 17%| 9. 80%| 10. 50%| 12. 98%| Total Current liabilities| 23. 36%| 18. 35%| 17. 56%| 26. 66%| | | | | | Non-Current liabilitie s| | | | | Long-term debt| 80. 96%| 64. 35%| 65. 38%| 30. 89%| Deferred Income Taxes| 0. 00%| 0. 00%| 0. 00%| 0. 0%| Other Non-Current Liabilities| 1. 13%| 0. 84%| 0. 00%| 0. 00%| Minority Interest| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Total Non-Current Liabilities| 82. 09%| 65. 19%| 65. 38%| 30. 89%| Total Liabilities| 105. 46%| 83. 54%| 82. 94%| 57. 55%| | | | | | Shareholder's Equity| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Preferred Stock Equity| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Common Stock Equity| -5. 46%| 16. 46%| 17. 06%| 42. 45%| Total equity| -5. 46%| 16. 46%| 17. 06%| 42. 45%| | | | | | Total liabilities and Stock Equity| 100. 00%| 100. 00%| 340| 100. 00%| DCM MOLDING| | | | | Annual Balance Sheets (Values in millions)| | | | | 2004| 2003| 2002| 2001| ASSETS | | | | | Current Assets| | | | | Cash and marketable securities| 0. 33%| 1. 25%| 0. 47%| 8. 06%| Accounts receivable| 19. 87%| 18. 36%| 20. 31%| 19. 44%| Inventory| 14. 32%| 13. 34%| 14. 69%| 10. 83%| Other Current assets| 1. 89%| 1. 48%| 2. 19%| 4. 72%| Total Current Assets| 36. 40%| 34. 44%| 37. 66%| 43. 06%| | | | | | Non-Current Assets| | | | | Property, Plant ; Equipment, Gross| 47. 28%| 42. 08%| 43. 44%| 56. 39%| Accumulated depreciation ; Depletion| 17. 20%| 12. 66%| 11. 09%| 10. 83%| Property, Plant ; Equipment, Net| 30. 08%| 29. 42%| 32. 34%| 45. 56%| Intangibles| 33. 0%| 35. 46%| 28. 44%| 5. 28%| Other Non-Current Assets| 0. 22%| 0. 68%| 1. 56%| 6. 11%| Total Non-Current Assets| 63. 60%| 65. 56%| 62. 34%| 56. 94%| Total Assets| 100. 00%| 100. 00%| 100. 00%| 100. 00%| | | | | | LIABILITIES AND EQUITIES| | | | | Current Liabilities| | | | | Accounts payable| 7. 66%| 8. 10%| 8. 28%| 5. 56%| Short Term Debt| 7. 44%| 6. 61%| 4. 22%| 7. 50%| Other current Liabilities| 7. 21%| 8. 10%| 8. 28%| 7. 50%| Total Current liabilities| 22. 31%| 22. 69%| 20. 63%| 20. 56%| | | | | | Non-Current liabilities| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Long-term debt| 28. 63%| 31. 93%| 29. 22%| 15. 00%|Deffered Income Taxes| 0. 1 1%| 0. 57%| 0. 00%| 3. 89%| Other Non-Current Liabilities| 3. 33%| 4. 45%| 6. 09%| 2. 22%| Minority Interest| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Total Non-Current Liabilities| 32. 08%| 36. 94%| 35. 31%| 21. 11%| Total Liabilities| 54. 38%| 59. 64%| 55. 94%| 41. 67%| | | | | | Shareholder's Equity| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Preferred Stock Equity| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Common Stock Equity| 45. 62%| 40. 36%| 43. 91%| 58. 33%| Total equity| 45. 62%| 40. 36%| 43. 91%| 58. 33%| | | | | | Total liabilities and Stock Equity| 100. 00%| 100. 00%| 100. 00%| 100. 00%| DCM MOLDING| | | | |Annual Income Statements (Value in Millions)| | | | | 2004| 2003| 2002| 2001| Sales| 100. 00%| 100. 00%| 100. 00%| 100. 00%| Cost of Sales| 66. 83%| 64. 85%| 64. 76%| 62. 96%| Gross Operating profit| 33. 17%| 35. 15%| 35. 24%| 37. 04%| Selling, General & Admin. Expenses| 17. 23%| 18. 65%| 19. 60%| 22. 22%| EBITDA| 15. 94%| 16. 49%| 15. 64%| 14. 81%| Depreciation & Amortization| 4. 61%| 4. 40%| 4. 32%| 4. 86%| EBIT| 11. 33%| 12. 09%| 11. 32%| 9. 95%| Other Income, Net| 0. 00%| 0. 00%| -0. 12%| -0. 23%| Total Income Avail for Interest Exp. | 11. 33%| 12. 09%| 11. 20%| 9. 72%| Interest Expense| 2. 43%| 2. 16%| 2. 0%| 1. 16%| Minority Interest| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Pre-Tax Income| 8. 90%| 9. 93%| 9. 10%| 8. 56%| Income Taxes| 2. 99%| 3. 75%| 3. 73%| 3. 47%| Special Income/Charges| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Net Income from Cont. Operations| 5. 91%| 6. 19%| 5. 37%| 5. 09%| Net Income from Discont. Opers. | 0. 00%| 0. 00%| 0. 35%| 0. 00%| Net Income from Total Operations| 5. 91%| 6. 19%| 5. 72%| 5. 09%| Normalized Income| 5. 91%| 6. 19%| 5. 37%| 5. 09%| Extraordinary Income| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Income from Cum. Eff of Acct. Chg. | 0. 00%| 0. 00%| 0. 00%| 0. 00%| Income from Tax Loss Carryforward| 0. 0%| 0. 00%| 0. 00%| 0. 00%| Other Gains| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Total Net Income| 5. 91%| 6. 19%| 5. 72%| 5. 09%| We can see that the cost of the s ales has been increasing for both the companies. But, the cost of goods sold for DCM is less that than of Plastichem. This indicates that DCM has been better at controlling their cost so they have a higher gross margin as compare to Plastichem. This reduction in the gross profit has lead to the reduction on the expenses occur due to selling the goods, but since DCM has a higher gross profit than Plastichem, they can also spend more in selling their goods.Plastichem also has more debt compare to DCM, due to which they have a higher interest expenses compare to DCM. A DuPont analysis helps us better understand the changes in return on equity (ROE). DuPont analysis tells us that three things affect ROE: operating efficiency, asset use efficiency, and financial leverage. Therefore we break up ROE into its components: ROE = Profit Margin (PM) * Total Asset Turnover (TAT) * Equity Multiplier (EM) | 2004| Return on Equity| Net Profit Margin| Total Asset Turnover| Equity Multiplier| | | | | | | Plastichem| 0. 00%| -24. 07%| 1. 12| 0. 00|DCM| | 17. 76%| 5. 91%| 1. 37| 2. 19| | 2003| | | | | | | | | | | Plastichem| 3. 53%| 0. 68%| 0. 85| 6. 08| DCM| | 18. 64%| 6. 19%| 1. 22| 2. 48| | 2002| | | | | | | | | | | Plastichem| 6. 38%| 1. 47%| 0. 74| 5. 86| DCM| | 17. 44%| 5. 72%| 1. 34| 2. 28| | 2001| | | | | | | | | | | Plastichem| 17. 30%| 5. 65%| 1. 30| 2. 36| DCM| | 10. 95%| 5. 32%| 1. 20| 1. 71| If we look at the figures we find that the reduction in ROE for Plastichem is mainly due to the drop in net profit margin. Plastichem increased their use of debt, which resulted in a higher EM, but poor PM ensured the fall of ROE.For DCM, on the other hand, we see that it has been fairly constant as well as ROE components. Some of the limitations regarding the various financial analyses above are: Many companies near the year or quarter end improve the appearance of their figures presenting them in the most attractive way possible. The miss misrepresentation of numbers makes the analysis more difficult. The analysis may also be unclear by inflation as general price levels for goods and services go up and subsequently purchasing power goes down, which makes comparison difficult over time.Many firms also use different accounting methods which make comparing of different companies difficult for instance there are two primary accounting methods used in USA, cash and accrual accounting. Cash accounting reports income and expenses are reported in the year they are received and paid; accrual accounting reports income and expenses in the year they are earned and incurred. Again making it very difficult to analyze different companies. Some additional data Jay and Jack need in order to improve their finding would be to look into the companies accounting practices and see if any off balance sheet items are present.From there they need to make sure the off balance sheet items are converted to in the balance sheet items to have an appropriate comparison. A statement of cash flows would also useful in analysis, as it would allow in determining the short-term viability of a company, particularly its ability to pay bills. A statement of cash of cash flows also allows us to view cash and cash equivalents coming in and out of company, giving better understanding as to where money is going and coming from.Also although looking at numbers may allow analysis to quickly spot differences in financials, I believe you must research companies in how they are run and if they are consistently making good business decisions. After collecting, compiling, and analyzing data we have come to conclusion that DCM Molding has shown a better financial condition on average in the past four years, and Plastichem has barely met the acceptable average or is below the average in the past four years. The Plastichem had a relatively high Debt-Equity Ratio, which indicated that was using many debts to finance its growth.The high Debt-Equity Ratio also indicated that Plastichem b ore more risk because the cost of debt (interest) making things difficult. The cost of the sales for both the companies have increased. But, the cost of goods sold for DCM is less that than Plastichem. This indicates that DCM has been better at controlling their cost so they have a higher gross margin as compare to Plastichem. This reduction in the gross profit has lead to the reduction on the expenses occur due to selling the goods, but since DCM has a higher gross profit than Plastichem they can also spend more in selling their goods.So in comparison we see that DCM Molding is doing far better with its figures showing much better results than Plastichem. Recommendation that Jack would be justified in making in his report to Andrew would be Plastichem needs to increase profit margin after looking at the figures we find that the decrease in return on equity for Plastichem is mostly due to the drop in net profit margin. Plastichem increased their use of debt that resulted in a higher equity multiplier, but poor profit margin ensured the fall of return on equity.Plastichem had a relatively high Debt-Equity Ratio, which indicated that Plastichem was using many debts to finance its growth. It should be treated as a serious problem being that Plastichem’s main rival is rated as a strong buy while their stock is rated as a hold. The strong drop in price will create fear for potential and current shareholders. If that fear continues, Plastichem’s shareholders might sell their stock at a decreasing rate, causing more issues for the company.The CFO should do a comparison between Plastichem and DCM’s numbers, and find the strengths and weaknesses amongst his company, in particular within its management teams. He should also begin finding ways to pay off Plastichem’s debt as well as not accumulating anymore, being that Plastichem is already seen as risky. The CFO should also find a tighter way to control the company’s costs. The analyst s are very accurate in their recommendations to the two firms. DCM Molding figures showed far better results and stock should rise; While Plastichem might consider selling stocks, if financial performance continues to worsen.