Nortel Case Report free essay sample

The company also used to be affiliated with ATamp;T/Western Electric until Western was forced to sell its stake in 1949. In 1976, the company changed its name from Northern Electric to Northern Telecom Limited, and shifted its concentration on digital technology. In 1977, Nortel introduced its DMS line of digital central office telephone switches. Nortel ended its long relationship with ATamp;T in 1984, a year after deregulation named. Bell Canada Enterprises the parent company to Northern Telecom. In 1998, the company acquired Bay Networks and changed its name to Nortel Networks. In the late 90’s, Nortel’s sales of fiber optic network gear was predicted to help their sales, but the market became saturated very quickly. At the height of Nortel’s first 100 years the company amassed for more than a third of the total valuation of all companies listed on the Toronto Stock Exchange (TSX), but once the Internet bubble passed, the company fell into ethical debacle. Nortel Networks Corporation, or formally known as Northern Telecom Limited was one of the largest telecommunications equipment companies in the world prior to its filing for bankruptcy protection on January 14th, 2009. During times of functionality, they specialized in multinational telecommunications equipment manufacturing. The company is based in Canada out of Mississiauga, Ontario, Canada. Their biggest rival always was Global System Mobile (GSM). Through the early 1990s, the company invested heavily in Code Division Multiple Access (CDMA) in attempt to grow in European and Asian markets. This did not pan out so well as Nortel’s losses amounted to $27. 3 billion by 2001—causing them to lay off two-thirds of the workforce. From 2000 through 2003 there was a period of fiscal irresponsibility resulting from the work of the company’s administrators. Initially in 2000, they falsified their fourth-quarter earnings by $1 billion to meet market expectations and selectively reversing certain revenue entries. In 2002, administrators discovered $300 million in excess reserves being carried over and swept it under the rug for future benefit in addition to establishing another $151 million in unnecessary reserves. In 2003, administrators directed the release of at least $490 million of excess reserves to boost earning, fabricate profits, and pay bonuses. Losses turned to profits during this year thanks to the shifty methods taking place. Later in that year, administrators mislead investors as to why Nortel was conducting a purportedly â€Å"comprehensive review† of its assets—attributed by restatement $948 million in liabilities. They said restatement was caused solely by internal control mistakes instead of the truth that there was intentional improper handling of reserves which needed to remain hidden. 2 On October 23rd, 2003, the company announced that Nortel would restate its financials for fiscal years 2000, 2001, and 2002. Shortly after this restatement, the major players of Nortel’s administration that were responsible for all of this were exposed through an independent investigation. In March 2004, The CFO and controller were suspended, in addition to the announcement of further restatements and revisions; they were terminated a month later in April 2004. A restatement in early 2005 showed approximately $3. 4 billion in misstated revenues and another $746 in liabilities. In late 2005, Nortel admitted that restatements were the result of management fraud—beginning the downturn of their stock. The company ended up restating financials four times over four years, replacing senior management, and instituting a comprehensives remediation program designed to ensure proper accounting and reporting practices. Eventually on October 15th, 2007, Nortel agreed to settle by paying a $35 million civil penalty and admitting to violations of the antifraud, reporting, books and records, and internal control provisions of the federal securities laws. 2 On June 25th, 2009, Nortel’s price dropped to 18. 5 cents a share down from a high of $124. 0 in 2000. The company decided that month that they would discontinue operations and sell off all of its business units. Nortel’s CDMA wireless business and LTE access technology were sold to Ericsson, and Avaya purchased Nortels Enterprise business unit. Major Players in the Scandal: The major players in this scandal were the four members of the senior management: CEO Frank Dunn, CFO Douglas Beatty, controller Michael Gollogly, and ass istant controller Maryanne Pahapill. CEO Frank Dunn, who is also a certified management accountant. Dunn was mainly involved in the improper use of reserves from 2000 to 2003. CFO Douglas Beatty, controller Michael Gollogly, and assistant controller Maryanne Pahapill were also involved in this management fraud. 2 The Royal Canadian Mounted Police in Toronto arrested ex-CEO Frank Dunn, ex-CFO Douglas Beatty, and former corporate controller Michael Gollogly on seven counts of fraud. Including charges â€Å"fraud affecting public market; falsification of books and documents; false prospectus, pertaining to allegations of criminal activity within Nortel Networks during 2002 and 2003. Magnitude of the financial issue: Nortel at its peak was one of the best companies that Canada had ever seen. Just like ENRON and other financial frauds at the time, Nortel appeared to be a shining example of success in the corporate world. Again like ENRON, Nortel grew through a strategy of aggressive expansion and purchasing of smaller companies in order to create a massive conglomerate. During the good times Nortel was the largest technology company and the most valuable company in Canada. Nortel accounted for over one third of the entire aluation of the Toronto Stock Exchange. The Toronto Stock Exchange is the Canadian equivalent of the New York Stock Exchange and holds the most influential stock market in Canada. Nortel employed about 95,000 employees worldwide. About 26,000 of those workers based in Canada alone. Nortel at one point had a market capitalization of almost C$400 billion. Nortel had set up pensions and healthcare protection for its employees. All of these were lost to either the restructuring under Frank Dunne which left about 60,000 employees without jobs or the bankruptcy that followed in 2009. Canadian government officials and regulators identified how destructive a full failure of Nortel would be on the Canadian economy. The Canadian government through the Export Development Canada project tried to lend money to the falling giant. However the Canadian government could not cover all of Nortel’s debt obligations. Nortel owed about $107 million and the EDC (Export Development Canada) could only supply about $30 million in short term loans. This $107 million interest payment accounted for about 4% of Nortel’s cash and put the company into bankruptcy. The world financial crisis of 2008 had put too much strain on Nortel and they were forced to begin liquidation. Public auditor: The auditors involved with this case were Deloitte and Touche. In documents from the fraud case, which is still being heard by the Royal court in Canada, Deloitte claims that they were not given proper documentation by Nortel. Deloitte claims that they did not have pertinent information which should have been provided by administrators at Nortel. Deloitte raised concerns to the audit board of Nortel in 2003 when Nortel turned a profit after Frank Dunne’s restructuring of the company. Deloitte raised awareness of potential fraud and did their duty in that respect. However further investigation conducted has implicated Deloitte in the financial reporting irregularities in Nortel which some have claimed dates back to the time of CEO Roth who held office before Dunne. Information coming out of the case states that even if transactions were deemed suspicious, they still signed off on the verity of the financial reports. Frank Dunne and some of his officers are now charged with fraud by both the SEC and the OSC which regulate the American and Canadian markets respectively. The case is currently still under review in the Royal court of Canada and civil charges have been brought in the United States. Fraud Triangle Nortel had experienced tremendous growth throughout the 1990s, allowing it to expand operations worldwide. Nortel’s expansion came during the telecommunication and technology bubble of the 1990s that inflated stock prices of companies in those sectors. Frank Dunn had taken over for the previous CEO, John Roth, in November 2001 during the telecommunication bubble bust. Dunn felt pressured to maintain the high stock price because it accounted for over one third of Nortel’s value2. Nortel management was also incentivized to post profits that produced executive bonuses with over $7. 8million going to Dunn alone. The primary members of the Nortel fraud were able to commit the fraud because, as executive officers and controllers, they were able to go around the internal controls of the company. That allowed them to implement many accounting practices that did not comply with GAAP. Nortel management’s rationalization for these fraudulent practices must have been that they needed to maintain the high stock price in order for the company to continue operating. Moral Breach and Ethical Issues As a publicly traded company, Nortel had the responsibility of fairly reporting the company’s true financial data to stockholders and potential investors. Dunn, Beatty, Gollogly and Pahapill breached this responsibility by establishing earnings management accounting strategies to manipulate Nortel’s revenues. Nortel management also actively sought to inflate earnings to trigger very large bonuses for key members of management. Perhaps, if these incentives did not exist then there would be less motivation to commit the fraud. Finally, Nortel’s auditor for over a century, Deloitte and Touche, has come under scrutiny by the defense lawyers in Dunn, Gollogly and Beatty’s civil trial in Canada this year. The defense claims that Deloitte approved of all major accounting adjustments that Dunn and his team had engaged in. Summary of Legal Actions On April 28th, 2004, Dunn and his fraud partners were fired for financial mismanagement2. On March 12th, 2007 the SEC filed civil charges against Dunn, Beatty, Gollogly and Pahapill for repeatedly engaging in accounting fraud to bridge gaps between Nortel’s true performance, its internal targets, and market expectations. Dunn and Beatty were charged with violating the officer certification agreement that was established by the Sarbanes-Oxley Act. Nortel settled with SEC on October 15, 2007 by consenting to be prescribed from violating the antifraud, reporting, books and records, and internal control provisions of the federal securities laws. Nortel paid $35million to the SEC, and $1million to the Ontario Securities Commission to establish a Fair Fund for affected shareholders. Finally, Canadian authorities arrested and charge Dunn, Beatty and Gollogly with seven counts of fraud. Their trial began on January 16th, 2012. Current Status: Nortel, once known as the largest telecommunications manufacturer in the world, filed for bankruptcy in 2009. Now three years later, the period of bankruptcy continues as the company discloses their every operating report highlighting each cash receipt and disbursement. When Nortel went bankrupt, executives believed that selling all business assets would be the best and easiest way to fight debt. Recently, Nortel has netted $7. 7 billion from selling its patents and businesses. As stated on their website, â€Å"Nortel remains focused on maximizing value for its stakeholders, including the sale of its remaining assets, resolution of claims, the wind-down of its global operations and entities, resolution of allocation matters with respect to the sale proceeds, and other significant restructuring activities toward the conclusion of the creditor protection proceedings. † The case for Nortel executives Dunn (ex CEO), Beatty (ex CFO) and Gollogy (ex controller), who were charged with fraud for affecting the public market and falsifying books and documents to earn larger bonuses, is still in trial. In February, a former Vice President of Nortel testified in court against executives stating that they had asked him to use questionable accounting methods to manipulate the company’s earnings. Although those who committed the crime have been charged, thousands of employees will still be left without pension plans and jobs. Nortel has spent over $20 million on retirement package these past two year, but unfortunately the company will stop the pension plan and disability program payments as it continues to sell away its businesses. By the end of 2011, Nortel was split into regional entities – Nortel Networks Limited in Canada and Nortel Networks Inc in the United States, causing disagreements over how to split $7. 5 billion that was earned by selling many assets and patents other corporations such as Apple and Microsoft Corp. The following charts, graphs and financial statements analyze Nortel’s current status. Case Study Questions and Solutions: 1. Dunn is a certified management accountant. Based on the facts of the case, which provisions of the IMA’s Statement of Ethical Professional Practice that was discussed in chapter 1 have been violated? Dunn violates many of the provisions of the IMA’s statement of Ethical Professional Practice they are as follows: 1. Perform professional duties in accordance with law, regulations and technical standards. 2. Provide decision information that is accurate, clear, concise and timely 3. Retain from engaging in any conduct that would prejudice carrying out any duties ethically. 4. Abstain from engaging in or supporting any activity that might discredit the profession. 5. Communicate information fairly and objectively. 6. Disclose all relevant information, that could reasonably be expected to influence an intended users understanding of the reports analyses or recommendations. 7. Disclose delays or deficiencies in information timeliness processing or internal controls in conformance with organization policy and/or applicable law. He violated these by selective reversal of revenue entries in 2000. Followed by concealing the reserves in 2002, which violated GAAP, and then avoided posting a profit so the company wouldn’t have to pay out bonuses. In 2003 Dunn released the reserves to falsely report a profit, which allowed them to eports a profit a quarter earlier than expected, and to pay out more bonuses to senior management. Also in 2003 he misled the investors about why Nortel had restated its financials in order to avoid uncovering the unethical management techniques him and his team had been using. All of these actions take away Dunn’s integrity and credibility in the field of manageria l accounting, which are two of the standards the IMA sets out. Dunn failed to meet his professional code of conduct and his company suffered because of it. 2. What are the responsibilities of an auditor to detect fraud? How were those responsibilities compromised by the actions of Nortel’s management? It is the auditors responsibility to report fraud if they find it, however in this case the actions of Nortel’s management made it difficult for the auditors to do their job. The false financial statements and hiding of money veiled the problems of the company from the auditors. Once there was a hint of the fraud the auditors found it and perused the trail, taking the ethical route and also following the code of conduct. It was their investigation that brought down the fraudulent executives and forced the company to restate its financials properly. This would eventually lead to the failure of Nortel. Nortel made materially false and misleading statements and omissions in connection with the quarterly reviews and materially misstated annual audits of financial statements. This caused the auditors to not be able to properly do their job, and review the statements. 3. Describe the incentives that created pressure on Nortel to manage earnings. Considering the role of Nortel’s management in this regard, discuss whether it met its corporate governance obligations as discussed in previous chapters. The incentives that drove Nortel to manage its earning where greed of the management team, the pressure to deliver bonuses, the pressure to survive an economic downturn, and the pressure to make the company seem like a good investment to both current and potential investors. In an economic climate of intense competition and corporate greed the management at Nortel fell victim to their vices and allowed the pressure to perform to overwhelm their priorities. This caused them to put their own greed and personal ambition before the well being of the company. Nortel did not meet its corporate governance obligations. It did not follow any internal rules of how to run the business. It ignored any corporate ethics they might have. It lied to stakeholders several times by misstating the financials. They did not follow the professional code of conduct of their careers and also did not follow industry standards. They broke the law. No one inside the company caught the fraud therefore their internal controls where not effective. Each of these immoral acts is a case where corporate governance has failed. 4. The final quote in the case characterizes Nortel’s failure as â€Å"just another casualty of capitalism. Do you agree with this statement? Why or why not? How would you characterize the cause of the failure at Nortel? I would argue that Nortel is not just another casualty of capitalism. Nortel did not function in a system of free market capitalism where the government had absolutely no regulation and let the markets function however they wanted. The capitalism system of North America is more of a mixed economy, which combines public and private ownership of companies, and also provides government regulation and intervention to prevent and deal with fraud. Even in a free market the system is meant to come to an equal balance of supply and demand, which cannot be reached if there is fraud involved since the supply has been inaccurately disclosed by the senior management at Nortel. I would characterize this failure as one of humanity. It was not the economic system that allowed this fraud to take place, but the greed of the people and a social environment that ties success so strongly to wealth. It was the social pressure and the effect of human nature that led to Nortel’s demise. . The case discusses how Nortel’s managers prioritized themselves over the shareholders, which, in part, lead to the company’s failure. What should be a company’s first priority? A company’s first priority should be following their code of ethics. The second priority should be the shareholders, followed by the management and other employees. This hierarchy ensures that all the business that is done with be both moral and legal , meaning there is no room to commit fraud and damage the company. In this way you are putting the shareholders first, because by providing a stable and healthy company the shareholders will see an investment that will be able to reach its highest potential. 6. Was Nortel’s settlement a fair penalty? Should the SEC have imposed harsher or more lenient sanctions? Should these sanctions have been on the managers, on Nortel as a whole, or both? A fair settlement would offer compensation to all those who were hurt by this fraud. Groups that may have been hurt could be shareholders, employees and customers. Deciding what is a fair compensation is a little more difficult, however as much of what these people lost as possible should be returned to them. As for the managers who created the problems and took part in the fraud should face a sentence of termination from their company, loss of license (if applicable) and jail time. The company and the individual managers have both failed stakeholders and should both be held accountable. In the case of Nortel specifically the stockholder settlement goes with these guidelines, as for the managers their trial is still ongoing and therefore no sentenced has been given to them yet.

A great place to buy term papers Essays

A great place to buy term papers Essays A great place to buy term papers Essay A great place to buy term papers Essay New customers always ask themselves what is the least they should expect from a term paper writing company. This article provides guidance to customers who are new to a service designed to salvage situations of students who have extremely busy schedules. The least that new customers should expect every time they buy term papers are high quality papers that have been written from scratch. The phrase high quality may have different meanings to different students. On my part, I propose that high quality custom papers are the ones that have been written by strictly following customers instructions. Partial or full mismatch renders custom papers null and void. Additionally, this paper needs to be written, not by trainees, but by writers who have expansive experience in the term paper writing service. Secondly, a new customer should expect a plagiarism free paper. In most cases, experienced writers are knowledgeable enough to fully reference custom papers and thus exonerate students from possible risks of expulsion arising from plagiarized papers. Customers are always free to ask for a plagiarism report. It is worth noting that this report can be charged or it can be offered freely. It is astute to choose a term paper writing service that does not charge anything for plagiarism reports. Thirdly, new customers should expect to be treated fairly by their chosen term paper writing service. By this I mean that customers queries, calls and concerns should be attended to promptly. Additionally, students should understand that every time they buy term papers, completed versions of these term papers should be delivered long before the expiration of their deadline. If all these are not granted, a customer should buy term papers from another term paper writing service provider who delivers on what it promises.

The Importance of a Strong Human Resource Department †Business Research Paper (200 Level Course)

The Importance of a Strong Human Resource Department – Business Research Paper (200 Level Course) Free Online Research Papers The Importance of a Strong Human Resource Department Business Research Paper(200 Level Course) There are many facets a modern day business must posses before it can be deemed as successful. One important ingredient of the pie is a strong human resource section. For the last 13 years I have been an executive for Target Corporation; two of these years serving as the human resource manager of a building. Target focuses heavily on the strong development of each team, and team member, in all of our 1350 buildings across the United States. In this paper, I will discuss the structure and core roles of a human resource manager at Target as it relates to my current position in the building. To get a realistic view of an HR in Target, you must first understand their place in the building. In Target, there are 5 executive positions, similar to assistant store managers. Each position, although in charge of different areas in the building, holds similar weight in terms of importance and authority. There is a front end manager in charge of the cashiers and food service section. Two sales floor executives who handle each side of the selling floor. A logistics manager who runs the backroom, and an HR executive in charge of people piece. Becoming a store manager requires that a person runs at least three of the five executive positions for one year. On my route to store manager statues, I was lucky enough to be placed in two different stores as the HR executive. The core roles for HR in Target revolve around one â€Å"theme†: right people, right place and right time. As a logistics manager currently, I rely heavily on my HR to follow this theme to ensure my success. It all starts with the â€Å"right people†. My HR is responsible for hiring me the best possible candidates. Even for entry level positions, HR executives are picky about the type of people they hire. All candidates are first given a personality test that places them in a red, yellow or green hiring statues. Once a candidate passes with a yellow or a green, they are then subjected to at least two interviews, one with the HR and one with me. Putting new team member in the â€Å"right place† is also an important key to success, for them and the store. I expect my HR each week to update myself and fellow executives as to staffing plans, guidelines and current statues. We discuss as a group any staffing downfalls, problem employees and any areas that extra training is required. The HR then writes action plans and distributes them to us as an executive staff. My HR constantly gets updates from our executive staff on how many new people we need, if any schedule adjustments must be made and any â€Å"human† issues that require support from the executive staff. â€Å"Right time† in the retail world is as important as having merchandise to sell. This last piece encompasses two important things. It might sound odd, but retail HR teams have just entered into their own â€Å"Christmas Season†. At Target, we have entered into fourth quarter and Christmas is just around the corner. Our staffing needs just went from 125 people in an average Target store to over 200. It is the HR’s responsibility for the acquisition, training and scheduling of all these new team members. Marta McGough, my current HR said â€Å"It has always been said that July through October is Christmas for HR’s, from November to January their job’s should be easy if the planning and executive happened earlier in the year†. The second piece to â€Å"right time† deals with the development and promoting of internal team members to management. With the addition of 600 new Target stores in the next 4 years, we are constantly looking for internal talent to be the leaders of tomorrow. It is Hr’s role to coach and train the team members in the building who want a career with Target. My current HR holds many mock interview sessions with team members, trains them on professionalism and grooms them for promotions. The process one must go through to get a promotion with Target is very strenuous. Before any team members I sent to district interviews, they must first acquire the seal of approval of the stores HR representative, only then will they be even eligible to interview for a hirer position. One thing that I am very thankful for in terms of HR support is what I like to call the â€Å"shield†. The HR is prohibited from participating in many interactions with team members such as corrective action and does not normally conduct formal training with team members, they just orchestrate the interactions and ensure that all communication to team members is legal and productive. I personally have the tendency to say the wrong things that could potential put me in harms way with the legal system. That is all I will say about that. My HR I use as a shield to filter out things I can not do or I can not say to my team. The HR role constantly keeps up to date on legal trends and issues such as working off the clock, which has been in the news a lot lately due to our foe Walmart’s follies. A good HR plants their executives and is the little voice in the back of their heads keeping them in check as to the â€Å"right† things to do and to say. Research Papers on The Importance of a Strong Human Resource Department - Business Research Paper (200 Level Course)Moral and Ethical Issues in Hiring New EmployeesAnalysis of Ebay Expanding into AsiaThe Project Managment Office SystemOpen Architechture a white paperMarketing of Lifeboy Soap A Unilever ProductRiordan Manufacturing Production PlanResearch Process Part OneIncorporating Risk and Uncertainty Factor in CapitalThe Hockey GameBionic Assembly System: A New Concept of Self

Role and Value of Information to Todays Marketing Managers Essay

Role and Value of Information to Todays Marketing Managers - Essay Example According to Holland and Naude, the effectiveness of a marketing campaign should be evaluated on the basis of the relationships formed (Holland & Naude, 2004, 167). However, a Kotler asserts that information is very important to a marketing campaign. Therefore, he criticizes that marketing campaign should be assessed based on the information driven approaches that are used in the campaign (Kotler, 2005, 25). Information helps managers to identify and be acquainted with the latest trends in the market. The world of today is very diverse and market trends keep on changing depending on the level of innovation in the market. Markets that have highly innovative businesses will tend to have vast changes in their ways of operation. Therefore, a business located in such a market will need to be equipped with data about the latest trends in the market (Randall, 1993, 5). Therefore, information is very important in helping marketing managers to recognize changes in the market prices, product d esigns and packaging methods. Impact of Information Information in the current days has greatly changed due to use of current technology. For instance, promotional methods have improved due to technological advancement. Therefore, the way in which goods and services are advertised in the market has greatly changed. Managers should be aware of these changes so that they can make the right decisions concerning their marketing procedures. This is because; all business activities are also becoming more information intensive and thus, this also makes it easier to solve physical problems in the business (Holland & Naude, 2004, 168). However, Holland & Naude have been criticized that they do not analyze the whole market when giving out this report because; it is not all business activities that are information intensive in the market. There are other business activities which require very little information (Georgia State University, 2002, 11). Information in marketing has also changed to an extent that it facilitates the marketing plan and control of the organization. Unlike with the old marketing methods, currently marketing managers are able to plan in advance concerning their marketing strategies due to availability of information. The business is able to analyze the whole market effectively since; it will have collected full market information from its competitors (Holland & Naude, 2004, 170). Therefore, the business can use this information to ensure effective

Importance of prenatal care Essay Example | Topics and Well Written Essays - 1250 words

Importance of prenatal care - Essay Example So it is mandatory for every pregnant woman to receive prenatal care to have an healthy and secured pregnancy period. Prenatal care is the care provided to women during the period of pregnancy, this involves offering medication and nursing care to the women to experience a safe pregnancy period. Prenatal care is even known as antenatal care and is a regular provision of medical and nursing to pregnant women. It is a prevention care where pregnant women are protected from diseases and illnesses while being pregnant. It includes regular check- ups and midwife related services to introduce a healthy life style to pregnant women. The main objective of prenatal care is the health and wellness of mother and baby from conception to birth. The prenatal care is an important aspect of pregnancy and every women benefit from it throughout their pregnancy period (thesis). The prenatal care allows the mother and baby to be in better health. It gives psychological and physiological advantages to the mother and the baby. It have has been revealed with the help of survey that women who receive prenatal care has baby with perfect weight. According to (Schmitt,2009) â€Å"Babies of mothers who do not get prenatal care are three times more likely to have a low birth weight and five times more likely to die than those born to mothers who do get care†. When pregnant women get prenatal care, the doctor checks every problem arising with the health of mother and baby. There are cases where, mother and baby die due to the ignorance and the absence of prenatal care. Doctors can detect problems or complications in the health of baby and mother only if prenatal care occurs. Prenatal care is a kind of care which is recommended to every pregnant woman in order to have a healthy motherhood and baby. Healthy pregnancy is a want of every mother and prenatal care helps in having a healthy mother and healthy

Holden and Alexander's Frustration Research Paper

Holden and Alexander's Frustration - Research Paper Example This essay discusses the similarities in Holden and Alexander’s life situation. Theme and special connection between the characters Throughout the novel and children’s book, Holden and Alexander are struggling though their life and day, because growing up can be painful. â€Å"I could tell it was going to be a terrible, horrible, no good, very bad day† (Viorst 1) When Alexander wakes up in the morning, finds the gum he had slept with in the mouth stuck in the hair. As he gets out of the bed, he trips on the skateboard and accidentally drops his sweater in the sink with running water. When he gets to the breakfast table, Alexander feels bad that all he could find was breakfast cereals while Anthony found a Corvette Sting Ray car kit as Nick found a junior Undercover Agent code ring in their breakfast cereal boxes. Alexander continues to have a bad day as Mrs. Gibson lets Becky, Elliott and Audrey to sit at the window despite Alexander’s grievances of which no one paid attention to. At school, Mrs. Dickens likes Paul’s picture of the sailboat better than Alexander’s picture of the invisible castle. At singing time, Alexander was told that he sang too loud while at the counting time he was told he left out 16. This makes Alexander angry and asks â€Å"Who needs sixteen?† (Viorst 7). ... During lunchtime Philip, parker had two-cup cakes in his lunch bag and Albert had Hershely bar with almonds. Paul had a piece of jelly roll that had a little coconut sprinkles on top but did not have any After school her mother takes all of them to the dentist and Dr. Fields finds a cavity in Alex. He asks him to get back the following week. â€Å"Next week, I said am going to Australia† Similar happenings in The catcher in the rye Holden too has bad experience in school when he is kicked out of the pency prep school in Pennsylvania for failing his classes except English. His attempts in chatting Ackley for company end up distorted making him to decide to leave Pencey (Salinger 22). Holden gets to New York and is undecided on whom to call.   Here Holden is avoiding his parents so that they could not realize that he had been kicked out of school. In Edmond, in the hotel lounge, he dances with three "moron" girls. He is disappointed because the girl he found attractive among t he three was a minor and thus allowed to drink. The girls take off. when Holden gets back into a cad and goes to Ernie’s knowing that he will be able to drink there, he runs into an old and annoying acquaintance leaving her so that he can avoid spending time with her. In the end, he ends up with a prostitute sunny who leaves with his money but no sex. Sunny the prostitute returns with his pimp who beats Holden. Holden is having a very bad life and the craziness of the city life makes him want to run away and hide in a log cabin as he tells Sally. Sally is not willing to run away with Holden as he had wished (Salinger 74-98). Conclusion The two books have a different audience target. However, both books have the same message of how life can be stressful to children and to

Impact of Shale Gas Extraction on Business

Impact of Shale Gas Extraction on Business Research Question and Research Methodology This study was commissioned by Stolthaven Terminals (ST) to explore the potential economic impact of US shale gas extraction on ST’s business development strategy. The business development team’s preliminary assessment of the impact of US shale gas on ST’s business demonstrates a possibility for US LPG exports to fill unmet global LPG demand, primarily in Asia. This paper generates a strategic approach to selecting an optimal location for a new Stolthaven LPG terminal. Stolthaven Terminals offers storage for petroleum, chemical products, and gas. The implications of any innovative commercial production process, such as commercial shale gas extraction, should be evaluated carefully. Currently, the company is not active in the LPG storage segment. One of the ST’s objectives is to actively enter the LPG storage market, which is highly influenced by the US shale gas production. Shale gas extraction is presumed to be the main catalyst for LPG production and the development of related technologies. The LPG market transformation is believed to be facilitated by the growing US exports of shale NGL-derived LPG, the wider Panama Canal opening in 2015 and a significant LPG shipping capacity increase by 2015. This chapter frames the methodology that will answer the research question: Which investment opportunities does the impact of the US shale gas extraction upon the global LPG market bring to an independent storage operator’s (in application to Stolthaven Terminals) business development? The studied problem can be defined as a managerial optimization problem. The current business should be optimised to reflect the reality of industry developments under the US shale extraction influence. The methodology modifies Chopra and Meindl’s (2013) theoretical framework for network design decisions into a structured strategy for LPG network design and LPG storage capacity location so that it can be applied to the studied problem and in order to develop a recommendation for Stolthaven Terminals on the optimal location of a new LPG terminal in 2015. The supply chain related managerial decision making principles are established by Chopra and Meindl. They derive several factors that influence an optimised decision making process; strategic factors, technological factors, macroeconomics factors, and political factors (Chopra and Meindl, 2013). This chapter will establish the relevant methodology and introduce the research sub-questions. Methodology Management science and the academic world agree on four phases that determine a location for independent storage. Chopra and Meindl describe these phases and a strategic decision making process for a facility location. Phase one contains strategy and requires determination upon development and growth strategy, adequate competition evaluation, and capital constraints. Phase two requires a regional demand analysis, identification of risks and competitors, evaluation of local policy and tax environments, identification of possible trade restrictions. Phase number three implies selection of potential sites for a facility, and phase four is a final location choice that is based on aggregated and analysed information of previous phases. It is understood that a decision of such a nature is predicated by an executive decision to evaluate the feasibility of the investment. Such an executive decision, with a high degree of likelihood, is triggered by a market balance shift or a market transfor mation. In my case, the US shale development is a trigger that facilitated LPG market changes and attracted attention to possible imbalances. If I apply Chopra and Meindl’s (2013) framework to Stolthaven Terminal’s intention to enter the LPG storage market, then the first phase revolves around the strategy considerations with a goal to identify and understand the strategy for the entry. The company is willing to enter the market and the financial decision is assumed to be positive if an investment decision is developed. To establish objectives and define strategy, an initial market analysis and evaluation of potential changes in the market is carried out to fulfil phase one of the framework. Chapter 3 determines the strategic approach and conclusion of the initial market assessment while Chapter 4 analyses the strategic implications and develops a specific areas of applications for the strategy. The third chapter will access the LPG market dynamics in order to narrow the broad market activities down to a specific area that potentially contains business opportunities Stolthaven Terminals and is relevant for the established framework. It concludes with identification of the most opportunistic LPG market segment and answers the first sub-question: From a chemical storage operator’s perspective, in which area of the LPG market will the US-shale impact be the most evident for a chemical storage operating company? Further, the fourth chapter will finalise the phase one and concludes on strategic action that is relevant to Stolthaven Terminals in the identified LPG market segment to answer the sub-question 2: What is the impact of the shale-driven growth of low-cost LPG exports from the US on the global petrochemical industry and which strategic implications for Stolthaven Terminals can be derived from it? The second phase brings consideration of the configuration of the regional facility location (Chopra and Meindl, 2013). Here, fulfilling the strategic implications, the product flows are modelled in order to identify the regions where the exported from the US product optimally emerges in future. Next, within the fifth chapter, the 2015 forecasting network optimisation model is constructed to answer the sub-question 3: How will the US LPG exports be optimally allocated to the LPG demand nations in 2015? Next, when the optimal regions of interest are identified, the transformed 2015 LPG market structure is applied to relevant locations within each optimal region so that an unmet storage demand is geographically sited. The third phase contains an assessment of the existing business environment, which includes competition activity assessment, customers, and potential joint venture opportunities evaluation. This phase also includes analysis of the qualitative variables of decision making, such as geographical location, proximity to major distribution centres, hinterland connectivity, and areal demand localisation. Chapter 5 concludes phase two of the framework with a network optimization model for the product, which identifies specific regions for the third phase analysis. Chapter 6 focuses on the third phase of the market entry site selection process. Chapter 6 answers the sub-question 4: In which specific optimal locations within each optimal nation will the unmet demand for LPG feedstock storage emerge? Next, the fourth phase challenges the selected specific location to assess costs, estimate planning and scheduling, and establish pricing policy. Upon the completion of the last phase, an educated investment decision and financial decision could be made and the further strategic course of action could be established. I stop at phase three with a concluding list of potentially attractive locations for an LPG terminal location. A significant number of assumptions and lack of reliable data lead to a necessity to explore the impact of these uncertainties upon the outcomes of the research. Chapter 7 introduces the qualitative sensitivity analysis of the research uncertainties and assumptions as well as evaluates the reliability of the outcomes of economic evaluations. The sensitivity analysis also investigates the potential impact of implemented forecasting assumptions upon the results of the quantitative model.