Definition and Examples of Standard British English

Definition and Examples of Standard British English The term Standard British English customarily refers to a variety of the English language thats generally used in professional communication  in Britain (or, more narrowly defined, in England or in southeast England) and taught in British schools. Also known as  standard English English or  British Standard English (BrSE). Although no formal body has ever regulated the use of English in Britain, a fairly rigid model of Standard British English has been taught in British schools since the 18th century. Standard British English is sometimes used as a synonym for Received Pronunciation (RP). John Algeo notes, however, that despite numerous differences in pronunciation, American English resembles present standard British English more closely than it does any other British type of speech (The Origins and Development of the English Language, 2014). Examples and Observations [D]uring the 18th and 19th centuries publishers and educationalists defined a set of grammatical and lexical features which they regarded as correct, and the variety characterized by these features later came to be known as Standard English. Since English had, by the 19th century, two centres, Standard English came to exist in two varieties: British and US. These were widely different in pronunciation, very close in grammar, and characterized by small but noticeable differences in spelling and vocabulary. There were thus two more or less equally valid varieties of Standard English- British Standard and US Standard. . . . [T]here is no such thing (at present) as a Standard English which is not British or American or Australian, etc. There is no International Standard (yet), in the sense that publishers cannot currently aim at a standard which is not locally bound. (Gunnel Melchers and Philip Shaw, World Englishes: An Introduction. Arnold, 2003) The Perceived Prestige of British English [D]uring most of the 20th century Europeans preferred British English, and European instruction in English as a foreign language followed the norms of British English in pronunciation (specifically RP), lexical choice, and spelling. This was a result of proximity, the effective methods of language teaching developed by British institutions such as the British Council, and the perceived prestige of the British variety. As American English grew more influential in the world, it became an option alongside British English in mainland Europe and elsewhere. For a while, especially during the second half of the 20th century, a prominent attitude was that either variety was acceptable for a learner of English as long as each variety was kept distinct. The idea was that one could speak British English or American English but not a random mix of the two.(Albert C. Baugh and Thomas Cable, A History of the English Language, 5th ed. Prentice Hall, 2002)The prestige of  British English is  oft en assessed . . . in terms of its purity (a baseless notion) or its elegance and style (highly subjective but nonetheless powerful concepts). Even those Americans who are put off by posh accents may be impressed by them and hence likely to suppose that standard British English is somehow better English than their own variety. From a purely linguistic point of view, this is nonsense, but it is a safe bet that it will survive any past or future loss of British influence in world affairs.(John Algeo and Carmen A. Butcher,  The Origins and Development of the English Language, 7th ed. Wadsworth,  2014)   Irregular Verbs The researchers [using a new online tool developed by Google with the help of scientists at Harvard University] were also able to trace how words had changed in English, for example a trend that started in the US towards more regular forms of verbs from irregular forms like burnt, smelt and spilt. The [irregular] forms still cling to life in British English. But the -t irregulars may be doomed in England too: each year, a population the size of Cambridge adopts burned in lieu of burnt, they wrote. America is the worlds leading exporter of both regular and irregular verbs.(Alok Jha, Google Creates a Tool to Probe Genome of English Words for Cultural Trends. The Guardian, December  16, 2010)

Starbucks Coffee Company †MIS Review

Starbucks Coffee Company – MIS Review Free Online Research Papers Introduction The aim of this assignment is to produce a report about the Management Information System used within the organization of my choice. The organization I choose is Starbucks Coffee Company ltd, where I have been working for the last two years as a Shift Manager. The aim of this report is to identify two Management Information Systems used in Starbucks and how the MIS facilitate problem solving. This report describes hardware and software used to obtain, store and analyze data. The last part of the report includes possible weakness in the company’s system, how they could be resolved and what possible training could be provided to help staff to cope with new technologies. Report based on Management Information System A Management Information System (MIS) is a computer system designed to help managers to plan and direct business, with organizational operations, provide reports and access to company data. In different organizations can be found different types of systems that meet specific business requirements. There are four major types of systems: TPS (Transaction Processing System) is a basic business system that serves the organization’s operational level. DSS (Decision Support System) serves management level with data, analysis for making decisions. ESS (Executive Support System) provides communication that serves the organization’s strategic level. Management Information system serves mainly Middle Managers. Starbucks Coffee Company ltd uses a Management information system called IRIS. IRIS stands for Intelligent Restaurant Information System. This tool provides the Managers with the information needed to run a successful business. The IRIS System is made up of two components: 1. The Point of Sale System (POS) or front of house till system; in addition to regular register functions offers some functions to be accessed only by Store Manager(SM), Assistant Manager(ASM) and Shift Supervisor(SS), with the correct security level. 2. The Manager Work Station (MWS) or back of house computer system compiles and reports all store information to effectively manage all aspects of store business. It displays all the different functions available on the Information System (IRIS), some of which are only accessible by partners with the correct security which consists in typing the correct username and password. The Point of sale consists in two touch screen tills used by deployed partners that need to insert their username and specific password before to start. From the Point of sale, managers can access different manager’s functions menu, such as paid in and Paid Out, and Refund to customers. These manager functions are security measures for cash management and inventory control in the store. Paid in and paid out occurs when money is taken from the till to buy items necessary for the store operations and/or any kind of emergency. Other functions such as Cash Skim, Void transactions or refunds occur when money is given back due to complaints or customers are returning faulty merchandise. The point of sale is used also to record wastage. In conclusion, most Point of sale functions are related to customer service, sales, refunds, discounts, voids. By ringing items through the tills, data such as time, customer transaction, quantity of food and drinks sold, quantity of wasted items, are transferred to the Management Work Station where data are stored, analysed and produced in form of reports, graphic, charts or diagrams. The Manager Work Station can be accessed in the office where there is a computer connected to the intranet, a private communication channel for employees to access the organization network that resembles the internet. To access the system it is required to sign in with a password and the partners ID. The system recognises security level and allows accessing the function assigned to the security level. The normal partners can just access the time punching option, which is that function that record staff punches in and out for breaks and shift. A start of day and end of day is run into the system on a daily base. Shift managers can access cash management functions that are used to count tills, modify or correct transactions and to prepare daily bank deposit. A menu of available reports is available on a report menu. The Store manager can access these reports to track sales, find out customer transactions within different hours range, to check sale by product category, to record wastage, to carry a financial audit. All this information is relevant for Store Managers to identify business requirements and customer needs, to identify peak time in the store, to increase or amend product ordering, to control wastage and track stock and decide whether is necessary to cut labour. Managers can access staff information and personal details in the work station, they can insert new partners, terminate partners, maintain employee records, track employee‘s training and process payroll. The payroll process transfers information to the support centre in order to pay partners. Store Manager and the shift supervisors can use the IRIS System to process electronic ordering for food, stationery, packaging. The IRIS System can also use e-mail set up for communicating with London Support centre and other stores within the district and others. The Fundamental functions of the role of managers are five: Planning is possibly the most important managerial function. Planning is the process of setting goals and deciding the best approach to achieve them. Careful planning reduces uncertainty, focuses attention on goals, eliminate wasteful effort and ensure appropriate control system. Organization is the way that aims and objective are turned into reality. Communication is the exchange of information so that the message communicated is understood by everyone involved. Decision and problem solving. Problem will always arise but from managers it is required to have the ability to solve problems before they become crisis. Controlling is the managerial function that monitors the performance of systems to check that what is supposed to happen is happening or going to happen. Control can be done in different ways; with financial checks, comprehensive reporting and communication systems, technological system and regular reporting. The presence of a Management Information System in Organizations of different nature, facilitate the role and the functions of different managerial level In STARBUCKS the Iris system provides a number of reports that can be used to help to manage store profitability These reports can be viewed on the computer monitor or can be printed for review or archive. Store Managers can use the Management information System to prepare short term budget to plan long term profit and prepare proper forecasts. The Iris system helps the managers to identify customer needs trough accurate reports, so to implement sales and marketing strategy and to plan production based on actual demand. The Iris system can be also accessed to check and monitor inventory. Hardware components of the computer system used in Starbucks There are two types of modem: The speed touch cable modem and the ISDN (integrated services digital network) modem. The speed touch cable modem and the ISDN connect the store computer system to the STARBUCKS retail network. The Retail Network is the communication access between the store and the internet. This allows the management work station to send and receive large quantities of data and information. There is a wireless internet provided by T-mobile, which allows customers to connect to the wireless network. There are two pieces of equipment; the Cisco Router and the Cisco Wireless access point. Connected to the computer system there is a Printer used to print reports of any nature, and a cash scale which counts Cash in a faster way and more accurately, mainly it is used to count the tills and at the end of this process all data are sended to the system. At the Point of sale there are two small printers where all receipts come out, and two (chip and pin) credit and debit card machines. To protect retailers, a new security system has been designed for cards which will use a smart chip. When customers pay using one of these cards, rather then signing a confidential security number (PIN) is entered. Recommendations about training staff and limitation of the computer system used Starbucks invest a lot on training people, many books are provided to partners, shift supervisor and store managers, where useful information can be found such as how to use the point of sale and the management work station, and the different functions. Different level of information are given depending the different position covered in the organization; while in one side partners learn how use the point of sale and the register functions, in the other side store managers and shift managers receive a more accurate training how to use the management work station and the related functions. The management information resources used by STARBUCKS’ partners are really accurate and detailed; I would rather suggest investing in new technologies such as new monitors, wireless system, printers etc. The chip and pin machine sometimes result being a bit slow, and when doing some credit or debit card transactions the point of sale freezes and the same issue occurs when doing transaction with STARBUCKS card or when trying to upload cards. The issue has been minimised a lot during the last few months. The support centre and the help desk from USA have been working on the issue, this apparently has been happening because for the STARBUCKS system in UK, this of uploading cards is still something new and lots of work has been done by the management information enterprise to make it a faster and more efficient system. At the moment the best way to minimise the issue is to reboot the tills and the chip and pin machine before every shift and/ or before each partner sign in for a till. Store Managers and Shift Supervisors have been trained on which procedures to follow when rebooting the system; my recommendation is to involve partners to learn how to react when this kind of issues may happen and to follow same procedures when rebooting the system without having to rely on their Shift Supervisors. When considering training to be given to store managers and shift managers; it would be helpful to involve them in a more practical training session where it can be explained how to solve small technological issues or troubleshooting instead of panicking when it occurs or call the help desk in USA, which some time it may take longer than just to fix the problem, such as what do in case the system does n t accept partner ID, if the cask scale is not working, etc. Conclusion The use of management information system in the organizations has had a deep impact on the way to conduct daily business; the different functions that can be found on the system facilitate and simplify the role of managers within the companies. Numerous companies have also developed websites to promote their image online. Also the way the Travel Tourism Industry conduct its business has changed the last decades or so. These changes are due to the major inroad made by electronic distribution. Several types of system are used in the Travel Industry. Travel agencies use agency system that handles office management accountancy, reservations and administration. In business travel is popular the global distribution system or computer reservation system that help the role of travel agent, in fact their service result being more efficient and faster. The only limitation is that technologies need to be updated regularly and every company should invest in training their staff how to cope with new technologies. Bibliography Notes of Chris Skipp Operation manual from Starbucks http://en.wikipedia.org/wiki/Management_information_systems answers.com/topic/management-information-system#after_ad1 www.starbuck.co.uk Research Papers on Starbucks Coffee Company - MIS ReviewThe Project Managment Office SystemRiordan Manufacturing Production PlanMoral and Ethical Issues in Hiring New EmployeesOpen Architechture a white paperBionic Assembly System: A New Concept of SelfIncorporating Risk and Uncertainty Factor in CapitalNever Been Kicked Out of a Place This NiceAnalysis of Ebay Expanding into AsiaResearch Process Part OneMarketing of Lifeboy Soap A Unilever Product

Explain what Hume means by saying that reason is and ought only to be Essay

Explain what Hume means by saying that reason is and ought only to be the slave of the passions, and why he thinks this is so. Is he right - Essay Example If reason can do anything, it is to do, as the passions of a person require him/her to do. According to Hume, whatever we do and act depends on our passions and not on the reason (Hume 1888). Hume does not mean that reason is aimless and does no job at all. Reason provides knowledge with which, passions and will get direction. Reason is there to guide us about how can we fulfil our passions (Hume 1888). Reason is only for judgement not for taking decisions. All the decisions are taken by passions of a human being and a human being acts according to his/her passions. According to Hume, reason cannot be only cause of any action of determination (Hume 1888). He also elaborates that reason is in position to combat with passion as it is enslaved by passions. The sentence, â€Å"reason is and ought to be the slave of the passions† means that reason is unable to become a cause of any action alone, it needs the companionship or in appropriate words, we can say, authority of passions with it to motivate an action. According to Hume, behind every action, there is a cause and effect theory and this theory only works when reason supports passion in motivating an action. In response to passion, there is an action, passion is the cause while action is the effect and reason is only there for helping with decision-making. Hume also negates the idea that reason plays any role in morality (Hume 1888). According to his ideology, a human being is activated only by means of his passions that keep a person in control and reason has no control over passions. Passions have enslaved reason and reason is employed to support passions (Hume 1888). Hume elaborates that immorality is not considered as immorality on the basis of reason but on the basis of our discontentment with an act (Hume 1888). According to Hume, passions have â€Å"original existence† (Hume 1888). Hume claims that reason is attached with ideas and copies of ideas are formed in mind while passions do not

In todays conditions, the survival of magazines, individually and Essay

In todays conditions, the survival of magazines, individually and collectively, is not dependent on the quality of their journalism. Discuss - Essay Example The real problem is quality journalism, but the media business itself. For instance, under discussion is whether the World Wide Web can help major, independent journalistic organisations. The Internet—the greatest medium ever created for information dissemination and news transmission—already provides a plethora of quality journalism and constantly will, from small-scale magazine organisations to the online expansions of large-scale newspapers and networks (Cook 2008). However, can new magazine businesses—organisations which are formed external to and in competition with the giants of the old media—survive through quality journalism alone? Can and will the prospective counterparts of today’s major magazine companies penetrate the current media barrier, emerging as strong national magazine brands above the debris and dissonance of the current magazine industry? In a study examining the disparity between professional magazine editors and journalism educators, Dickson and Brandon discovered that there were considerable disparities between the educators and editors in their belief of what comprises the survival of magazines today, specifically what media-related skills or advantages are vital (Lepre & Bleske 2005). The researchers discovered that educators ranked theoretical knowledge in mass media and society, communication theory, and media history, and professionally focused skills in media management, media ethics, and media law, higher than professional magazine editors did (ibid, p. 190). Technical skills in language arts were ranked the highest by professional magazine editors. The group of journalism educators was the only one which ranked another category, skills in journalism, as being the most contributing factor to the survival of magazine businesses (Lepre & Bleske 2005). Generally, the findings of this study demonstrated that even though there were considerable disparities between the groups of

Lobbyists Essay Example | Topics and Well Written Essays - 1000 words

Lobbyists - Essay Example Lobbying is therefore, the practice of promoting, opposing, or in any manner influencing or attempting to influence the introduction, defeat, or enactment of legislation before any legislative body; opposing or in any manner influencing the executive approval, veto, or amendment of legislation. It is also the practice of promoting, opposing, or in any manner influencing or attempting to influence the enactment, promulgation, modification, or deletion of regulations before any regulatory body (Smith). A lobbyist is therefore a term that includes the following; a person who receives compensation from another person, group or entity to do the lobbying work. A lobbyist is also the person who lobbies as a regular and usual part of employment irrespective of whether there is compensation in addition to regular salaries and benefits is received. a lobbyist is also the a consultant to the state, county, or municipals parts of the government, they are employed to make an influence legislation or regulations irrespective of whether they are paid or not; in full or in part the funds that relates to these forms of government (Luneburg, William, and Susman). Lobbying is quite an important act given the experience they give to the Lobbyist groups. From research it is clear that experienced and successful lobbyists extensively understands the legislative process and therefore they have a strategic plan which enables them to ensure a close follow up that is quiet significant to the client or group that they present. The understanding of the process is quite complex due to the increased competition of the recent past in the field. Lobbying through the Lobbyists helps the congress to follow issues in a timely manner making issues to be handled quite in time due to the avoidance of the delay likely to be created. This is driven by the fact that opportunities and challenges often present themselves with quite a short time to respond to such allegations prompting the need for lobby ing and lobbyist groups. Ongoing, active representation in Canadian legal departments is critical to effectively responding to these situations (Luneburg, William, Thomas, Susman, and Gordon). Lobbying is therefore meant to help specialists groups which may be of a special religion, belief or industry to get their voices to be heard by members of any law making body of a nation. In addition, lobby groups of large amounts of money are able to influence the opinions of the crowds in their favor making politicians against them vulnerable (Smith). Currently, Lobbying has become a way for corporations, religions, and other private and special interest groups present their influence over the legislature and essentially circumvent the standard law-making procedure. Lobbying is therefore protected by the model of government in place and since corporations and other special interests are legally considered a singular entity, they are represented in the same context in Congress (Smith). The d ata from the office of the Commission of Lobbying of Canada shows us the various lobbying groups that exists in

Ethics - Terms to know Essay Example for Free

Ethics Terms to know Essay WorldviewThe way the world is seen made sense of; framework of individual understanding. e.g. Deism God abandoned creation Nihilism Reality has no value; traditional values unfounded Existentialism Life has no meaning but what we give it Eastern Pantheism Polytheism, i.e. Hinduism Naturalism Secular humanism / modernism; God is irrelevantnothing exists but natural world New Age Pantheism All is one; no distinction between plants, people; all are God Judeo-Christianity There is only one God who created universe; God is involved w/ creation Post Modernism God is dead; truth is a social construct; relativism prevails EthicsThe explicit, philosophical reflection on moral beliefs and practices. (The difference between ethics and morality is similar to the difference between musicology and music. Ethics is a conscious stepping back and reflecting on morality, just as musicology is a conscious reflection on music). Descriptive EthicsStating actual moral beliefs. Normative EthicsStudy of what is really right or wrong. MetaethicsStudy about field of Ethics. Metaethics Theories ObjectivismThere are correct and incorrect answers. SubjectivismThere are no correct or incorrect answers. AbsolutismAll moral rules hold without exceptionthere is only one truth; opposite of relativism, contrasts with consequentialism. RightsJustified claims upon other(s) for actions or non-actions. Negative Obligation (Right)An obligation to refrain from something or entitlements to do something without interference from other people. See also autonomy. Positive Obligation (Right)An obligation to perform / provide, etc., or entitlements that obligate others to do something positive to assist you. In remUniversal rights (obligations fall on all moral agents). In personamRestricted rights (obligations fall on selected individuals). General Obligationsmoral requirements of all moral beings. Role-related Obligationsmoral requirements of specific roles, e.g. MD, priest, etc. Strong PaternalismForced acts of beneficence on person able to decide. Weak PaternalismForced acts of beneficence on person unable to decide. Negative PaternalismRefraining from doing something to/for someone. 4 Main Ethical Principles / Values NonmaleficenceDo no harm; (Primum non nocere first, do no harm); a negative right. BeneficenceDo good; promoting the welfare of others; actively avoiding harm; a positive right. AutonomyNon-interference with others choices and freedom to make choices / self determination. Justice / Social JusticeEqual treatment for all. Ethical Systems Theories (*Related concepts) *ConsequentialismThe end justifies the means; the rightness or wrongness of any action depends on its consequences. *Utilitarianism (act)To act in a beneficial way based strictly on the good consequences for the most people; case-by-case analysis of each act. *Utilitarianism (rule) To act in a beneficial way (with good consequences for the most people) based on moral rules; categorical imperative? DeontologismIts not whether you win or lose, its how you play the game; some actions are right or wrong regardless of their consequences; contrasts with consequentialism. Relativismit all dependsall points of view are equally valid. Also: When in Rome, do as the Romans do (cultural relativism). Beauty is in the eye of the beholder (personal relativism). *Doctrine of Double Effectintention is everything; concerns only intended means or ends, not actual means or ends even if predictable (i.e. chemo side-F/Xs). Patient Relationship Models Engineering ModelJust the facts, maam; healthcare professionals as scientists presenting factspatients make decisions based on these facts. Paternalistic ModelDo what I say; decisions are made by healthcare professionals. Contractual ModelLets make a deal; healthcare professionals give informationassist patients in decision-making by making recommendations. ConfidentialityNot divulging information which another has revealed on condition of secrecy; patients right to privacy (of information). Deontological Argument for the Obligation of ConfidentialityRespecting confidentiality respects patient autonomy. Consequentialistic Argument for the Obligation of ConfidentialityRespecting confidentiality protects and promotes well-being of patients. 3 Accepted Exceptions for Divulging a Patient ConfidencePatient not competent, required by law, protect public interest. Truth Telling (Veracity)Obligation to tell the truth. Consequentialistic Case for Telling and Withholding the TruthDo what will most benefit/least harm patient; truth-telling / withholding truth context dependent. 3 (actually 4) Possible Exceptions to the Truth-Telling RuleFamily request, patient request, for the good of others (less so now), avoiding disastrous consequences (extreme cases). 5 Elements of Informed ConsentCompetence, information disclosure, understanding, voluntariness, and authorization.

Analysis Of The Financial Report Of Burberry Finance Essay

Analysis Of The Financial Report Of Burberry Finance Essay In this section we are considering the Annual Report 2009-10 of Burberry and will compare Burberrys performance in this year with the previous years. When financial year 2009-10 started i.e. April 2009, Burberrys main issues of concerns were weak and highly uncertain consumer spending environment (because of prevalent recession). Following which groups main goals were established: Expense Reduction Working Capital Management Indeed, they succeeded up to a remarkable level under most strategic, operational and financial measures. Performance of Burberry was among the best relative to its peers either public or private. Highlights of Burberrys important strategic and operational decision in 2009-10:  £50 M cost efficiency program-helped in reduction of Cost of Sales Upgrading wholesale distribution and restructuring the operations in Spain To maximize Gross Margin, continued to reduce assortment size across categories-resulting in increased Gross Margin from 52.1 % to 59.7% Improved inventory management- inventory reduced 36% over year Added 21 stores with 9% space extension These mentioned decisions helped Burberry perform strongly in 2009-10 and resulted in improved financial strength. Key financial strengths during the period are: Total revenue growth 7%- Revenue  £1.3bn Adjusted operating profit increased 22%  £220M increase Diluted adjusted EPS increased 16% to 35.1p Financial Ratios: Financial ratios are widely used be managers, shareholders, creditors and analysts for all kind of purposes. Firth (1975) proclaimed that these can be used for two purposes. These are: To compare companys latest performance with its performance in earlier periods To make comparisons with corresponding ratios of other firms Following is an analysis of the companys financial ratios and a comparison with the preceding year and its peers: Profitability Ratios: Return on Capital Employed (ROCE): Formula: Net profit before tax/ (All shareholders fund + long term debt) Significance: Profits earned from the two major sources of finance for the company viz. investment by shareholders- shareholders fund and financial institutions mostly- long term debt. The effectiveness of the management in utilising the funds is indicated by ROCE. The return for the FY 2009-10 is 26.03%. It shows a significant change when compared to the previous years return of NEGATIVE 2.78%. A quick glance at the operating profit for the last two years reveals the reason behind such a big leap forward. The company has performed tremendously in the last financial year. From an operating LOSS of  £9.9M for the year ended 31 March 2009 to a significant operating PROFIT of  £171.1M for the year ended 31 March 2010, shows the efficient and effective measures the company had adopted over the year. Even if the comparison is made between adjusted operating profits (after considering the exceptional items) for the last two years, we can see a significant difference of  £39.1M (219.9-180.8). All of this shows that the business is effectively earning on shareholders fund and long term debt generated. Ratio Formula Significance Net margin Net profit before tax/ Total revenue The net profit percentage on the entire revenue earned for the financial year Gross margin Gross profit/ Total revenue The gross margin percentage on the revenue earned for the financial year It is the one of the most commonly used profitability ratio. It shows the net margin with respect to the amount of sales. In 2010 it got increased from -1.34% (2009) to almost 13%. In 2009, Burberry reported negative profit i.e. loss. Main reasons behind this were: High Cost of Sales in 2009 (12.5 % higher than 2010) Higher operating cost (6.71%)in 2008-09 which was mainly because of Goodwill impairment in global market(mainly Spain)  £116.2 million Relocation of headquarters Store impairment and onerous lease provisions Increase in NPM shows that Burberry has controlled its costs effectively in 2009-10. It demonstrates effectiveness of Burberry at converting sales into actual profit. Gross Margin: There is an increase from 55.41% (2009) to 62.82%. It shows that Burberry has increased its gross profit by 7.4 p per  £1 of turnover. It is because of higher sales and low cost of sales in 2010. Sales Growth: Formula: (Present sales- Previous sales) / Previous sales Sales increased from  £1200M (2009) to  £1280M (2010) i.e. an increase by almost 7%. Adapted: Burberry Annual Report 2009-10 Sales growth is one of the KPIs. The above graph shows the revenue earned by Burberry in the last five years. The overall growth shows the increasing trend followed by the company in spite of its macro-economic conditions. This proves the companys ability to capture the market being a luxury brand. Liquidity Ratios: They show the companys ability and the ease with which it can lay its hands on liquid cash. In other words, these ratios signify the liquidity position of the company. The main components of these ratios are the current assets and current liabilities which are also the factors that determine the working capital of the company. Current Ratio: Formula: Total Current Assets/ Total Current Liabilities This is the one of the best known measures that indicates the liquidity position of the company. There is an increase in Current Ratio in 2010 as compared to 2009 which indicates that Burberry has improved its ability to meet the payment schedule of its current debts. The change from 1.36:1 in 2009 to 1.53:1 in 2010 shows the efficiency in working capital requirements. Having current assets equivalent to 1.53 times of current liabilities shows a moderate approach from the management not being too aggressive by holding less current assets nor too conservative by holding more current assets leading to high opportunity cost. Quick Ratio/Acid Test: Formula: (Total current assets-stock)/total current liabilities It measures companys ability to meet short-term obligations with its most liquid assets. An acceptable ratio should be at least 1:1. However in 2009 it was .87 which is not sufficient. An increase from .87 to 1.2 over a period of one year demonstrates that Burberry has stronger liquidity position than it had before. Shareholders POV: Collier (2009) state that Dividends are a decision made by directors on the basis of the proportion of profits they want to distribute and capital needed to be retained in the business to fund growth. (p.114) Shareholders invest in a companys stock with the motive of higher returns through dividends or capital gains. The idea of investing in the shares of a company may give higher returns compared to the other secure investments like bank. However, the risk is also more. The investors measure the prospects of a stock under various scales. Few of them are as follows: Dividend per share (DPS): Formula: Dividends paid/ number of shares Often DPS is the measure of a companys performance because it indicates how profitable a company is over a period of time. In Burberrys case, its excellent performance is reflected through the increase in the dividend per share paid to shareholders. As at 31st march 2010, Burberry had 435,024,782 ordinary shares, of which 77,215 were held as treasury shares, shares that have been bought back by the issuing corporation and is available for retirement or resale; it is issued but not outstanding; it cannot vote and pays no dividends. (http://wordnetweb.princeton.edu/perl/webwn?s=treasury%20shares) As per annual report, Burberry has proposed dividend of  £45.7M, which is 20% higher than last year ( £37.7M). This increases its dividend per share to 10.5p from 8.65p. It also increased interim dividend, which is declared and distributed before the calculations of companys annual earnings, per share slightly from 3.35p to 3.50p during year. So, the total dividend per share is 14p for the year ending 2010 giving a 17% increase from 12p in 2009. Dividend Yield: Formula: Dividend per share/ market value per share It shows the relationship between dividends and market share by expressing a companys dividend as a percentage of its share price. However, dividend yield fluctuates with share price. Burberrys shares price was 276.25 on 27 March 2009 and 725.00 on 1 April 2010. (http://www.google.co.uk/finance?client=obq=LON:BRBY) Using its share price value at financial year end, dividend yield is 1.93% in 2010 and 4.3% in 2009. This need not represent that Burberry has decreased its value in investors eye. This fall is because of 163% increase in share price of Burberry, which made increase in dividend less significant. Dividend Payout Ratio: Formula: Dividend paid / (profit after tax i.e. net income) or the ratio of dividend per share and earnings per share. It helps in predicting how well earnings support the dividend payments. Investors seeking high current income and limited capital growth prefer companies with high Dividend payout ratio. However investors seeking capital growth may prefer lower payout ratio because capital gains are taxed at a lower rate. (http://en.wikipedia.org/wiki/Dividend_payout_ratio) For 2010: it is 14/36 = 38.88 % 2009: 12/31= 39.2% It is almost similar in both years, which shows that Burberry is maintaining the balance between interest of shareholders and expansion of business. Earnings per share (EPS): Formula: profit after tax or net earnings/ number of shares Burberry calculates EPS on the basis of both diluted and basic. When all convertible securities such as convertible preference shares, convertible debts, convertible debentures and warrants exercised; number of outstanding shares increases. This is called Diluted weighted average number of shares, the basis of Diluted EPS. As number of outstanding shares increases, Diluted EPS is always lower than Basic EPS. It is more accurate to use a  Diluted EPS over the reporting term; because the  number of shares outstanding can change over time (We can observe this in annual report that Burberry has always mentioned diluted EPS). In 2010, Diluted weighted average number of shares was about 442 million with dilution effect of 9.3 million. In 2009, it was 438.1 million with dilution effect of 6.8 million. Earnings were  £81.4 million in 2010 as compared to loss of 6 million in 2009, because of reasons mentioned before. This leads Basic EPS to 18.8p (-1.4% in 2009) and Diluted EPS to 18.4p (-1.4% in 2009). Using details of exceptional items in note 4 of annual report 2009-10, adjusted earnings are  £155.2million and  £132.1 million for 2010 and 2009 respectively. This leads to Adjusted Basic EPS to 35.9p (30.6p in 2009) and Adjusted Diluted EPS to 35.1 (30.2 in 2009). Increase in Adjusted Diluted EPS by 17 % is mainly because of 17 % increase in adjusted profit as weighted number of shares is almost same. This increase represents better performance of Burberry in 2009-10. Price-Earnings (P/E) Ratio: Formula: Market value per share/ EPS It is the valuation of companys current share price compared to the per share earnings. This ratio reveals the popularity of a stock because it reflects how much people are willing to pay for it (http://library.thinkquest.org/3298/NoFrames/help/glossary.html). The P/E ratio can be interpreted as number of years of earnings to pay back purchase price, ignoring the time value of money (http://en.wikipedia.org/wiki/P/E_ratio). For 2010 P/E ratio is 725/35.9= 20 and for 2009 it is 276/30.1= 9.2 There is almost two times increase in P/E ratio. This is because of increase in share price by 163%. This increase makes Burberrys stock more attractive than previous year. Bottom line: The above analysis from a shareholders POV leaves an overall positive impact on the investors or the potential investors. Considering the shareholders return, profitability, growth rate the company has been maintaining and the increasing trend in the share value, it would be more than likely a wise decision to invest in the Burberrys stock. Gearing effect: Tools used: Gearing ratio: long-term debt/ (shareholders funds + long-term debt) This ratio gives the proportion of funds which is borrowed from outside in the entire capital employed, than from the shareholders (through issue of shares). This is also called the leverage ratio. The method of introducing debts in place of equity is referred to as trading on equity leverage Collier (2009) states that Higher the gearing, higher is the burden on repaying the debts and the associated interest. Also, if profits turn down, there are substantially more risks carried by the highly geared business. (p.108) However, there is a relationship between risk and return which is to be analysed. Higher proportion of long term debt signifies two issues: Higher return for shareholders Less tax burden Burberry in 2009 has a gearing of 52.72%. For the year ending 2010, it is 43.06% i.e. 56.94% of equity. This shows that their almost half of the sources of finance is through long term borrowings. The effect of generating finance through debts than through equity is shown on the return the shareholders are enjoying. It also shows the company has been closely monitoring tax burden. This is because the provision made for the interest obligation/payment is reflected in reducing the profits, thereby a lower tax on lower profits. However, the debts carry with them the interest obligation and repayment commitments. This way the company has been trying to balance between debt and equity. In the financial year 2009-10, the company has reduced its debt content trying to be a little conservative. The capital structure can be considered to be moderate. Interest cover: Profit before interest tax/ interest payable This represents the profit available, to meet the interest obligation, in terms of the interest payable (number of times). Higher interest cover leaves less strain on the profits and giving a cushion with profit AFTER interest and before tax. Profit before interest and tax: Interest payable: For 2010:  £171.1M  £6.2M For 2009:  £ (9.9) M Loss  £13.4M Interest cover for the year 2009-10 is 27.6 times. This is a highly impressive cover leaving a comfortable position. Considering the loss in the previous year and still maintaining this is very efficient. The decrease in interest commitment this year can be related to the reduction in the debt content of the capital structure (gearing ratio). Financial Risk Management Overview: Burberry deals with variety of financial instruments viz. derivatives, short term and long term borrowings, trade receivables/payables etc. It also combines with variety of financial risks. However, the risk management is carried out by a dedicated Group Treasury under the approval of Board of Directors. Guidelines/ Tools: To reduce the financial risk and ensure sufficient (OPTIMAL) liquidity position Work closely with the business requirements Uses derivative instruments to hedge certain risk exposures Market Risk: Foreign Exchange Risk: Risk: Multiple foreign currency transactions because of international operations Tools/Policies: Entering into forward foreign exchange contracts Hedge anticipated cash flows in each major foreign currency Monitor the desirability of hedging the net assets of the overseas subsidiaries when translated into Sterling for reporting purposes. At 31 March 2010, the Group has performed sensitivity analysis to determine the effect of non-Sterling currencies strengthening/weakening. Price Risk: Risk: Fluctuations in employers national insurance liability due to movements in the share price. Tools/Policies: Entering into equity swaps at the time of granting share options. Monitor the fluctuations in the liability on a continuous basis. Cash flow interest rate risk: Risk: Fluctuations in the interest rates. Tools/Policies: Use interest rate swap derivatives to manage fixed and floating rate borrowings within limits. Credit Risk: Risk: Possible bad debts. Tools/Policies: Wholesale sales only with appropriate credit history/check. Retail sales only through cash or major credit cards. Maximum credit risk exposure is classified separately and attended. Liquidity Risk: Risk: Maintaining sufficient cash balance. Tools/Policies: Maturity profile is established All short term creditors, accruals, bank overdrafts and borrowings within one year. Compliance with all the committed banks credit guidelines. Capital Risk: Risk: Returns to shareholders and other stakeholders; Maintain Going concern. Tools/Policies: Maintain strong credit rating. Appropriate capital structure mix debt and equity. Adjustments according to the economic changes and its strategic objectives. Analysis of the above: All of the above represents the measures adopted by Burberry to meet the Financial Risks. The company having a dedicated risk management team in order to face the risks gives a confidence in the minds. However, they should be continuously aware of the fact that a large corporate like Burberry will have to attend to growing/new risks by anticipating well in advance. They may include a deeper analysis in the following areas: Working capital cycle: Inventory management, EOQ/JIT methods, optimum cash model. Financing needs. Other sources of finance can be analyzed like debt factoring. Capital budgeting decisions before expanding or investing on a project. WACC Weighted average cost of capital is to be considered before deciding the capital structure. Comparisons with the market rate and interest rates prevailing. The overall financial risk management shows the companys ability to address almost all the possible risks efficiently and effectively. Conclusion: With comparison to most of the essential parameters, it can be concluded that Burberry plc showed a promising performance in the last completed financial year 2009-10. Not just with regard to the financial performance, but also in satisfying the shareholders with competent returns. A birds eye view shows the company has made a great comeback this year with a significant profit. However, a deeper penetration/analysis into the last year financials reveals that the loss made in 2008-09 is because of high cost of sales with a difference of  £59.8M compared to the recent year, goodwill impairment charge to the extent of  £116.2M, relocation of HQ costing around  £7.9M and other expansion charges. Also, the above report shows the companys transparency in complying with the Corporate Governance and commitment in attending to its Corporate Social Responsibility, employees welfare etc. Burberry showed continuous interest in brand integrity, being a true leader in luxury brands, and market growth through expansion. Indeed, highly motivated. All this leads to only reaffirm the companys continued efforts in excelling beyond horizons among its peers financially, ethically, and morally!