Tuesday, August 20, 2019
The Kingdom of Cambodia | Essay
The Kingdom of Cambodia | Essay The Kingdom of Cambodia, or simply known as Cambodia, is located in South East Asia. It is surrounded by Thailand, Laos, Vietnam, and the Gulf of Thailand. The capital city is Phnom Penh which is located in the South. Cambodia has area of 181.035 square kilometers. Its size is about half of Germany. Cambodias flag is the only one in the world to have a picture of building represented on. The building is very well known in the name of Angkor Wat. The flag has three strips, two colors, and one building in the middle. Blue and red are used on the flag as they are traditional colors. There are approximately 15 million (UN, 2010) people living in Cambodia which is only about 18% of German population. Majority of Cambodian, about 90%, are Khmers. Vietnamese is the second biggest group with the percentage of five. Chinese is the following one with one percentage and the rest is others. Dressing style is similar to other countries nearby. Either cotton or silk shirt with short sleeves is worn by man, together with cotton trousers. Sarong is used by woman to wrap around her waist. It is a long fabric piece which is embellished with silver and gold threading. A scarf called krama is a Cambodian local wear. It is commonly used for multi-purpose such as baby carries, decoration, pillow covers, and drying a work day s sweat. National currency of Cambodia is called riel (KHR; symbol CR). Figure 5 represents some of riel bank notes and coins. Bank notes are varied as follow: CR 100,000, 50,000, 20,000, 10,000, 5,000, 2,000, 1,000, 500, 200, 100 and 50. Coins are less varied as there are only CR 50, 100, 200 and 500. The inflation rate is very high but the cost of living is relatively low, compared to European countries. One dish costs about 4000 KHR and the exchange rate between EURO and KHR is about 5415 KHR per one EURO (rate at 16 January 2011). Therefore, one dish in Cambodia is not even one Euro. Another currency which is wildly used as well in Cambodia is US Dollar. In tourism attraction such as Phnom Penh and Angkor Wat, most of the price in goods and service are provided in US Dollar. Riel is used only for a small amount of paying, for example, buying bred. Traditional Food Cambodian food has a lot in common with those from surrounding countries but one big different characteristic is much less in spicy. As same as other Asian countries, rice is served in almost every meal as main dish. The most popuplar Cambodian side dishes are Amok Fish and Lok-lak. Amok fish is made from fish with curry, vegeable, and coconut milk. It is cooked by stream and served with a dipping sauce. The traditional one is to be served with rice in banana leaf bowls, as presented in figure 6. Another mentioned dish is Lok-lak which is a beef with vegetables cooked by stir fried in a lime and black pepper sauce. It is served with either onions or red onion. The dish is bedded by fresh vegetable such as lettuce, tomatoes, and cucumbers. Cambodia stir fried is differed from the Chinese one by having dipping sauce made with lime and pepper. Talking about snacks, one of the most famous ones for the adventurous in Northern Cambodia is crispy fried spiders. It is a local snacks and the whole body of spiders can be eaten. A lot of tourism chooses to visit Cambodia because of its unique in architecture and nature. The most famous tourist attractions are Angkor Wat, Angkor Thom, Temple of Ta Phrom, and Mondulkiri. Angkor Wat, represent in figure 7, is an UNESCO World Heritage Site and one of the Seven Wonders of the World. It was built to be the state temple and capital city for King Suryavarman II, early 12th century. Since the national religion of Khmer was changed according to the king s religion, Angkor Wat had been changed for its purpose as well. The first one was to be the center of Hindu. Then, it became the dedicated place for Vishnu, the Supreme God in Vaishnavite traditional of Hindu. Finally, it has been changed to be the center of Buddhist until the present time. The building itself is constructed with stone and decorated by Khmer architecture with high classical style. It is said to contain even more stonework than the pyramids of Egypt. Lao national currency is Kip (LAK; symbol ?). The bank notes are varies as follow: LAK 50,000, 20,000, 10,000, 5,000, 2,000, 1,000, 500, 100, 50, 10, 5 and 1. No coins are provided. Lao monetary is highly inflation. The exchange rate for EURO is 10370 LAK per one EURO (rate at 14 January 2011). One dish of food can be obtained for 10000 LAK. Large amount of purchase can be done by using US Dollar or Thai Baht in many areas. Traditional Lao food are quite hot and spicy, might be too hot for foreigner. The main dish is sticky rice, Khao neo, which is also the symbol of Laos. Hands are normally used for eating this kind of rice. Tam maak houng or papaya salad is very famous as well. Papaya and other vegetables are mixed together. The original one can be very spicy for foreigners. Laap or meat salad is meat mix with some herb and can be very spicy as well. Another dish is Ping kai or barbeque chicken. All the mentioned four dishes are normally served together as one meal. The most attractive points for Laos are its nature and culture. Recommended places are Vientiane, Pha That Luang, Luang Prabang, and Plain of Jars. Vientiane, as mentioned earlier, is the capital city of Laos. Being once a former French Indochinese state had brought this city through various complicated situations and conflicts. However, the pace of life found here is rather slow and laid-back. There are several interesting Buddhist monasteries for those who want to calm down your soul and for those who want to have an experience of bustling life, market is the place to go.
Monday, August 19, 2019
Earthquakes :: essays research papers
Earthquakes Earthquakes occur almost everyday all over the world. Most of the time earthquakes are not strong enough to be felt by people, but the shaking caused by an earthquake can be recorded by a seismometer. These machines are located all over the world to ensure detection of earthquakes of all strengths. Only occasionally will a larger magnitude earthquake strike and cause damage to the region. There are many faults around the world and depending on where these faults are plays a major factor in determining where an earthquake will occur. It is these faults that are the reason for earthquakes. The information seismologists know about past earthquakes and earthquakes in general give them a limited ability to generally predict when and where earthquakes are going to occur. An earthquake is the shaking of Earth’s surface caused by rapid movement of the earth’s rocky outer layer. â€Å"Earthquakes occur when tension stored in rocks suddenly releases†(Vogt 12). Faults occur at these places where rocks on either side of the crack have moved. Oceans are very common places for major tectonic plates to shift. When two plates separate, new oceanic crust is made near the fault as magma rises and eventually sets on the sea floor. If the plates on either side of the fault continue to spread then the ocean slowly becomes larger in width. This is called seafloor spreading. Mid-ocean ridges are characterized by a crack like valley at the fault. This crack like valley is caused by the tension pulling the plates apart, causing normal faulting to occur a number of times in the divergent boundary.                                                   Shevchik 2 The most common type of fault is a normal or dip-slip fault. These occur when two blocks of earth are thrust toward each other, causing one to ride up over the other (Britt 1). â€Å"The hanging wall moves downward relative to the footwall†(Tarbuck 244). A reverse fault is the opposite of a normal fault. â€Å"The hanging wall moves upward relative to the footwall†(Tarbuck 244). A very powerful type of fault is the strike-slip fault that occurs when two plates slide past one another. The San Andreas Fault in California is a very good example of this type of fault. A great deal of damage is done when any type of fault shakes the soil under structures in a low-lying, waterlogged areas, causing liquefaction. Liquefaction occurs when an earthquake shakes the wet, sandy soil near a body of water.
Sunday, August 18, 2019
View of humanity ( The Time Machine by H.G. Wells :: essays research papers
H.G. Wells          The Time Machine                    Mischel Figusch                                              Englisch-LK Jg. 13 The view of humanity in The Time Machine     -     Essay This essay is about the view of humanity that arises from â€Å"The Time Machine†It includes the TT’s speeches and his theories about how the Eloi and the Morlocks came to be. It also shows that Wells haunts at critical aspects on society. The first hints at Wells political attitude are already noticeable in the beginning of the novel: â€Å"To discover a society†, said I, â€Å"erected on a strictly communistic basis.†(page 10, line 19) By the example of Eloi and Morlocks, he warns of Capitalism and its consequences to mankind. This vision which is presented in â€Å"The Time Machine†shows or rather forecasts the results of the social split between the leisurely wealthy upper class and the working class, especially in the Victorian England. The increasing development of the division between â€Å"upper†and â€Å"lower†class will lead into a big disaster in further future. The intelligence of the human species is going to be at an unthinkable minimum. All achievements in culture, technology and knowledge will be vanished. â€Å"You see I had always anticipated that the people of the year Eight Hundred and Two Thousand odd would be incredibly in front of us in knowledge, art, everything. Then one of them suddenly asked me a question that showed him to be on the intellectual level of one of our five-year-old children-- asked me, in fact, if I had come from the sun in a thunderstorm!†(page 38, line 4 – 11) The reason for this â€Å"devolutionary evolution†is the non-existence of the necessity to learn more, or rather to use the learned or skilled things. Knowledge and accordingly advancement of knowledge hasn’t got a meaning anymore. In one of his former theories, the TT assumes that the Morlocks, the inferior race (at this point in time) which lives in the underworld, are the direct outcome of England’s East-end worker, who already live â€Å"in such artificial conditions as practically to be cut off from the natural surface of the earth.†(page 77, line 17) â€Å"The Time Machine†can be seen as Wells’s socialist warning of what will befall humanity if capitalism continues to exploit worker for the benefits of the rich.
Saturday, August 17, 2019
Ethical Impacts of the Internet on Children and Teenagers Essay
As the use of internet dominates every activity in the global market, its use in homes and schools has exponentially grown raising concern on its ethical effect on children and teenagers. The nature of the youngsters’ use of internet has generated heat and anxiety among the general public as the society calls for ethical and moral guidelines that would protect children and teenagers from negative effect of the internet. This paper proposes a research that will identify the effect of internet use among the young people as the academic and policy importance concerning the opportunities and dangers of internet use continue to be raised. The paper identifies these opportunities and dangers as it proposes the methodology and limitations for the research paper. 2. 0 Introduction 2. 1 Background Internet which slowly started as a network for military officers in the cold war eventually became an important tool in the academic corridors and today the former â€Å"Arpanet†has greatly grown to become the primary platform for communication and interaction for different communities around the world. As the Internet traffic hit millions of users each day the communication technology continue to grow to allow for infinite information access and instant interaction by users, a fact that has brought about a social paradigm shift in the way societies used to live in the earlier days. This technology has particularly been embraced by children and teenagers as a way of learning, socializing and leisure. In the developed countries and many other regions around the word, internet access has ceased to being a trademark for the privileged members of the society as its use in the workplace, education institutions and leisure places continue to grow exponentially. As the use of computers and internet become more and more entrenched in our day to day routine practices, it has become a basic feature not only in the offices but also at our homes. The presence of internet at our homes has opened up a â€Å"super highway†to children and teenagers who are being referred to as the â€Å"digital generation†that incidentally predisposes them to overwhelming information and social sites that may contribute heavily in shaping their behavioural patterns. Whereas internet offers a perfect educational platform for the young people, it is also seen largely as a risk factor that could expose them to adult sites, make them more addicted and dependant on the internet and eventually instil anti-social behaviour in some of them. While this issue demands a critical stance given the consequences it has on the future generation, very little independent researches has been conducted to inform the policy makers and end the growing public anxiety. In most of the researches conducted in the recent past only a few have focused on the social consequences of the internet among the children and teenagers. The households with children or/and teenagers that have access to the internet is however more common than those without (Wigley and Clacke, 2000). 2. 2 Research Objectives The main objective of the proposed research project is to explore the impact of the internet on children and teenagers based on the expected social, cognitive and behavioural patterns in the society. The research project will aim at identifying issues that deviate from the laid down expectations both at school, home and in the society which find their root from the internet. 2. 3 Research Question The proposed paper will focus on answering the following primary question; †¢ What are the ethical impact on the use of internet among the children and teenagers? To effectively explore the primary research question the following secondary questions will be analyzed? †¢ What are the children/teenagers perceptions towards internet? †¢ What are the perceptions of the parents whose children are using internet at home or/and school? †¢ What are the important contrasts in internet activities from what is expected to what is actually practised? †¢ What are the possible impacts of these struggles between the theoretical and practical internet activities on children/teenagers’ social development? 2. 4 Research Significance A study conducted in the UK by Wigley and Clacke (2000), revealed that among the young people aged between 7 and 16 years, 75% of them have used the internet as compared to only 38% from the adult population. This explains that in the contemporary society the young are actually the pioneers of the internet culture. For a long time children and teenagers have also been regarded as a special homogenous object in other studies a fact that has made this category of population marginalised and often left out in researches on the internet. Even in the midst of growing researches on e-commerce and e-democracy very little efforts are focusing on the expanding online market driven by the young people. For these reasons children and teenagers are often left out in technological advancement as the market analysis is evaluated. As the social effects of internet on the young people become obvious in most societies it is becoming more difficult to ignore the subject and therefore many empirical projects on children and teenagers use of the internet are coming up. This makes it appropriate moment in which the research agenda on this category of population must be given priority. 3. 0 Literature Review 3. 1 Nature of Internet Usage Recent surveys reveal that children and teenagers attach high value to the usage of internet to gather information, entertainment leisure and as a medium of communication. According to Valkenburg and Soeters (2001), 73% of the children and teenagers use internet as an education tool, 59% use it for E-mails, 38% to play games, 32% for chatting with friends and 31% use internet as a hobby and an area of interest. The internet has already revolutionized the social patterns of our younger population drastically changing the earlier forms of communication and interaction among the peers. A research conducted by Valkenburg and Soeters (2001), indicates that among most households internet has continued to elicit mixed reaction between the parents and their young ones as it is considered to easily lead the young toward the wrong direction if mismanaged or taken for granted. While the parents praise the internet for its role in availing most of the information that their children would need in pursuit of their education, the children consider the opportunity more as a source of entertainment that gives them a break from the other â€Å"old fashioned†entertainment sources. The tug of war between the parents and children demonstrates an obvious digital generation gap in which children and teenagers who normally acquire and understand new internet skills faster than their parents get transformed into â€Å"family tutors†. The expertise in computer and internet skills among the children gives them a symbolic advantage over their parents that can easily be mis-used in pushing their interests that could not necessarily be approved by their parents. The current researches on the social context in which internet is focusing more in identifying ways and means in which children and teenagers are changing their homes into centres for content production, entertainment and leisure. This fact has in essence brought about new approaches in children’s activities as questions linger on whether learning has become more fun, playing is turning more and more educational and whether online chatting is part of civic participation or a way of withdrawal from the general society. This kind of researches therefore calls for the need to analyse the online content that is most preferred by children and teenagers. This raises a challenge given the large volume of online contents from which one can choose from and the fact that the hypertext content can be actualized by the user. This has in effect discouraged most of the researchers carrying out studies on the impact of internet on children and teenagers. Most of the researches today are however guided by the policy issues that are endeavouring in trying to balance the benefits that the internet offers to the young population against the harm that may be associated with some of the sites. Therefore the key agenda is on how the society in general should ethically conceptualize and balance the benefits and the dangers of the internet on the children and teenagers within there spheres of influence.
Economies Of Scale Scope Essay
Economies of Scope: An economic theory stating that the average total cost of production decreases as a result of increasing the number of different goods produced. For example, McDonalds can produce both hamburgers and French fries at a lower average cost than what it would cost two separate firms to produce the same goods. This is because McDonalds hamburgers and French fries share the use of food storage, preparation facilities, and so forth during production. Another example is a company such as Proctor & Gamble, which produces hundreds of products from razors to toothpaste. They can afford to hire expensive graphic designers and marketing experts who will use their skills across the product lines. Because the costs are spread out, this lowers the average total cost of production for each product. Economies of scale are the cost advantages that a business can exploit by expanding their scale of production. The effect of economies of scale is to reduce the average (unit) costs of production. Here are some examples of how economies of scale work: Technical economies of scale: Large-scale businesses can afford to invest in expensive and specialist capital machinery. For example, a supermarket chain such as Tesco or Sainsbury’s can invest in technology that improves stock control. It might not, however, be viable or cost-efficient for a small corner shop to buy this technology. Specialisation of the workforce Larger businesses split complex production processes into separate tasks to boost productivity. By specialising in certain tasks or processes, the workforce is able to produce more output in the same time.
Friday, August 16, 2019
A Time to Kill (1996) Argumentative Paragraph
A Time to Kill (1996) Violations of the Canadian Charter of Rights & Freedoms In the movie A Time To Kill, many rights & freedoms were violated according to the Canadian Charter of Rights & Freedoms. In this paragraph, three very big & important rights and/or freedoms will be discussed. The first is section 2 (Fundamental Freedoms), part c. The freedom of peaceful assembly was violated seven times in the movie; the most prominent is when the KKK formed outside the courthouse & demanded that Carl Lee be pronounced guilty or else they’re going to get violent, that is in direct violation of that freedom.Section 2, part d (freedom of association) was also violated as the KKK clearly violated that freedom by fundamentally being in existence because the purpose of their association is to hurt or kill anyone who lives in the United States of America and is not Caucasian and does not follow Christianity or Catholism. The second violation is Section 15 (Equality Rights) subsection 1. T his right provides equality before and under the law and equal protection and benefit of the law.Before & during the trial, Carl Lee was held in a segregated prison cell, which isn’t so bad but still racist, the next unfair treatment to Carl Lee was being put on trial in front of a bias and all white jury. When Carl Lee’s lawyer requested that the venue of the trial be changed due to the fact that the jury is all-white and bias, he hoped it be changed to a venue where the jury will be maybe fifty percent black.The judge, who is white, denied that request quite blatantly and anyways started the trial in Canton with a bias jury, which later on in the movie proved to extremely racist in their reasoning for Carl Lee being guilty. The third and last of many other rights & freedoms that have been violated in this movie is, section 13 (treatment or punishment). Everyone has the right not to be subjected to any cruel and unusual treatment or punishment. This right has been vio lated and abused in so many ways.Chronologically, Carl Lee’s daughter was raped and brutalized by the two racist red necks, Carl Lee being in a fit of rage procures an automatic rifle with a high ammunition capacity and shot those two men in cold blood while unintentionally severely injuring an officer of the law. If those violations weren’t enough, the KKK clan tries to punish the white lawyer for representing a black man by almost burning down his house and intentionally abusing and intending to kill that same lawyer’s paralegal.The clan capped it off by trying to assassinate Carl Lee’s lawyer with a high-powered sniper rifle, but the assassin missed and killed an officer (state trooper/soldier) of the United States of America. The Canadian Charter of Rights & Freedoms or any other similar constitution of rights and freedoms evidently was not implemented in the time present in the movie, but what is evident is that our society today has learned from tho se ethical & moral mistakes of the past and created policies, rights & freedoms to help prevent those mistakes from ever happening again.
Thursday, August 15, 2019
Haw Par Value Chain & Financial Ratios Analysis Essay
1. PART ONE 1.1 Introduction Haw Par Corporation Limited is a multinational corporation engaged in healthcare, leisure businesses securities and real estate investment, among which we will mainly focus on Haw Par’s traditional business sector-the healthcare segment, which includes 9 subsidiaries (Annual report, 2010). Based on revenues generated and locations of manufacturing facilities, two prominent geographical markets, Asia and America, are selected for discussion. We will look into the competitive environment of the corporation, and the generic strategies adopted to survive in the environment. Then we will investigate operations within Haw Par by analyzing its value chain activities, and propose improvements to enhance its competitive advantages. Lastly, we will identify the top risks imposed to the corporation. 1.2 Competitive Environment – Michael Porter’s Five-Forces Model 1.2.1 Threat of New Entrants Initial capital requirement of entering the healthcare industry is high, including investment in property, plant, equipment and research and development. Moreover, compliance burden with various regulations is heavy, as illustrated by the warning letter received by Haw Par from the Food and Drug Administration (FDA) in the US. Besides, its scale of business, well-establish brand and distribution network are difficult to imitate. Thus, the threat of new entrant is low. 1.2.2 Threat of Substitute Currently, Haw Par’s healthcare products mainly consist of traditional herbal medicines and newly developed chemical products. The substitutes of herbal medicines are mostly western chemical medicines. We can see that Haw Par is actively responding to the challenge of chemical medicines. However, the existing pharmaceutical companies are very strong, and their products are more competitive on the whole. Therefore, the threat of substitutes is medium. 1.2.3 Bargaining Power of Buyers The products of healthcare division are mainly traditional Chinese medicine oil and its related products, as well as muscle rub, spray and gel (Hoover’s, 2011). As the products are generally medications for daily use, the majority of buyers are individual consumers. Hence, the buyers’ bargaining power is weak. However, if the buyers’ group is large, for example, wholesalers or retailers, the bargaining power of buyer could be moderate or high (ME Porter, 2000). 1.2.4 Bargaining Power of Suppliers Due to Haw Par’s broad product lines, it would have contracted with vast suppliers for the procurement of various crude materials. The main ingredients are common Chinese medicines (Alternative Health Supplies, 2005). The company may choose from a wide range of suppliers. In general, bargaining power of suppliers is low. 1.2.5 Industry Competitors Haw Par has distinguished itself from small and medium size medicine oil businesses by its branding and broad market distribution, yet it is still involved in intense competition with business of comparable market share, for example, Biosensors International and Sun Pharmaceutical Industries Limited which is a main competitor both in Asian and American market. In 2010, Sun Pharmaceutical’s deal with Taro Pharmaceutical Industries boosted Sun’s dermatology and topical products in U.S which might deeply affect Haw Par’s extension market. Generally rivalry among existing firms is high (Hoover’s, 2011). 1.3 Competitive Strategies – Michael Porter’s Three Generic Strategies The general global economic climate took a favorable turn in 09-10, boosting the consumer confidence. On the other hand, the competitive environment of the business is challenged by the intense competition and rising costs (PM Danzon, 2000). To enhance the performance of the business, Haw Par had responded â€Å"by introducing more products that will appeal to a larger group of consumers and by conducting more intensive marketing†(Wee Cho Yaw, 2010). The generic strategy adopted by the business is focus differentiation. The business focused on selective markets and products to raise entry barrier. For example, Haw Par launch a new product in 2011â€â€Tiger Balm Active Muscle Rub which focused on a certain buyer segmentâ€â€sporting enthusiasts. It also endeavored to distinguish itself by branding as well as adding uniqueness and value to products. One such example comes from Tiger Balm Medicated Plaster, a product with combined functions of energizing body and relieving pains. To do branding, Haw Par increased popularity by sponsoring public events such as marathons in Singapore, and advertising in national magazines in America (Haw Par, 2010). Besides, it also undertook social responsibility by contributing to charities, such as organizing the fundraising event â€Å"The Tiger Balm Record Roar†which supported the Society for the Physically Disabled (Haw Par, 2010). This focus differentiation strategy helped lower the degree of substitutability of other companies’ products and reduce the level of competition. 1.4 Top Three Business Risks The top risk was the intense competition from existing companies, as this would directly affect the percentage of market share owned by Haw Par, and hence its profitability. The second risk was the rising cost of raw materials, which was also an industry-wide problem that might limit a company’s development. Another risk was the failure of compliance with regulations, which had only emerged in the US market, but certainly reflected defects in Haw Par’s internal control. 1.4.1 Intense Competition from Existing Companies Haw Par Corp Ltd faced strong competition from a number of multinational corporations. According to the Competitive Landscape Singapore, in 2011, Haw Par ranks the third in the healthcare sector for market capitalization. The companies listed in Appendix 1 are the major competitors of Haw Par Healthcare Limited in Singapore. Besides, although Haw Par’s healthcare products were distributed to 150 countries via 70 distributors, it still faced high risk from competitors which could render its market share shrink in the health-care area (Haw Par, 2010). To mitigate this risk, Haw Par managed to boost its market shares through improvement of Tiger Balm brand by advertising, sales promotions and the extension of manufacturing line. Another strategy adopted was to diversify product line to broaden customer choices so that consumers would be more likely to choose Haw Par’s product and hence this risk would be minimized. 1.4.2 Increase in Costs of Raw Materials Due to upwards general inflationary pressure, unit price of herbal materials for traditional Chinese medicine was expected to rise. Haw Par also expressed serious concerns in its annual report on rising costs of raw materials and operating activities that would erode its profitability in healthcare sector. This would be one of the reasons why gross profit slipped 3.52% while net profit raised 88.50% in 2010, compared with 2009. To neutralize the negative impact, Haw Par put emphasis on expanding its product portfolio to cater for more customers (The edge, 2011). 1.4.3 Failure to Comply with Regulations and Provisions When Haw Par was expanding its market in foreign countries, it faced challenges in conforming to the different regulations and standards. For example, an inspection on Haw Par’s manufacturing facilities by FDA, discovered â€Å"significant violations of Current Good Manufacturing Practice regulations for finished pharmaceuticals†(FDA, 2010). Failure of conforming to regulations would pose a potential threat of being banned in specific markets, which would negatively affect revenue, brand image and social acceptance. To mitigate this risk, Haw Par shall immediately review the unqualified production and procurement practice while proposing appropriate remedies. Furthermore, Haw Par shall also seek opportunity to make appeal to the public so as to restore and conserve its corporate image. 1.5 Value Chain Activities – Primary Activities 1.5.1 Inbound Logistics For Haw Par’s health-care segment, inbound logistics contains management of raw materials, inventory control, warehousing and even returns to suppliers. Efficient inventory management system is an essential factor in boosting profits for Haw Par, by enhancing efficiency and thus reducing expenses. 1.5.2 Operations In the operating process, value is created through transforming the raw materials into final products. Unfortunately, Haw Par Healthcare was warned by FDA about mislabelled products and inadequacies (FDA, 2010). In this case, Haw Par failed to show itself â€Å"to be capable to detecting potential impurities†. Therefore Haw Par Healthcare should improve its testing and packaging operations, so as to maintain its product quality to secure current market position (CBS Interactive, 2010). 1.5.3 Outbound Logistics Though possessing a worldwide distributing network covering 70 countries, Haw Par continued expanding its markets. Nevertheless, Haw Par’s healthcare manufacturing facilities were centralized in its major markets, so as to reduce the costs and improve the overall efficiency. 1.5.4 Marketing and Sales Haw Par focused on marketing activities to boost sales and build brand image, as discussed in competitive strategies. According to the General Manager Ah Kuan Han, Haw Par would intensify substantial advertising activities to enlarge consumer bases (The Business Times, April 1st 2010). According to the horizontal analysis of income statement, the sales and marketing expense increased by 6.00% in 2010. Furthermore, with the already widespread fame, Haw Par was striving to expend its market in UK, America, Caribbean and other parts of world through its comprehensive marketing and sales strategies (The Business Times, 2009). 1.5.5 Service Haw Par has built the Tiger Balm website to facilitate serving its customers. The website provides a wide range of information about its products. Haw Par also provides experience sharing service on its website, through which past users can share their experience with others. 1.6 Value Chain Activities – Support Activities 1.6.1 General Administration A strong and effective board of directors would bring Haw Par to success, by supporting the whole Haw Par Corporation through the activities including planning, general management, risk management, and so on. Good management and information systems would increase operating efficiencies as well as improving the company’s image. 1.6.2 Human Resource Management Haw Par has been recruiting a large pool of staffs. More significantly, Haw Par emphasized on maintaining high quality employees, as evidenced in its advertisement of hiring o-level and above diploma holders as laboratory technicians. (Jobstreet.com, 2011) 1.6.3 Technology Development Haw Par has been actively engaged in technology development, indicated by its â€Å"launching of line extensions on a slate of new products that would address lifestyle needs of modern consumers†(Haw Paw, 2010), which would secure Haw Par’s long term competitiveness in the market. Yet Haw Par shall continue its efforts in innovation to further strengthen market power and improve efficiency. 1.6.4 Procurement As the ingredients of Haw Par’s product are mainly traditional herbs supplied from China, India and Malaysia, the cost of materials from these suppliers is relatively low. However, the procurement activity still needs to be further improved. As mentioned above, Haw Par received a warning letter from FDA which identified a problem of unqualified suppliers. Thus, apart from outsourcing cheaper raw material from suppliers, Haw Par should keep monitoring its suppliers regularly to ensure reliability. 2.2 Financial Ratios Analysis The following sessions will assess the profitability, liquidity (including operating efficiency) and solvency of Haw Par in 2009 and 2010, and account for any substantial fluctuation emerged, through analyzing relevant financial ratios respectively. One of Haw Par’s major competitors – Sun pharmaceutical industries Ltd. is also referred to for comparison. 2.2.1 Profitability Analysis Ratios adopted here include net profit margin, gross profit margin, return on assets, return on equity and earnings per share. The net profit margin of Haw Par nearly doubled from 46.10% to 86.90%. Such a rise is aligned with the increase in sales revenue from $124m to $130m, mainly due to the recovering global economy. As the International Monetary Fund (IMF) stated, the world real GDP growth is 1.4% and 2.5% for 2009 and 2010 respectively, while for Asian countries the growth was estimated to be 5.5% and 7.0% (Michael Mussa, 2009). As an Asian company, Haw Par has benefited greatly from the economic recovery. However, the gross profit margin displays a slight decrease from 58.25% to 56.20%. This can be partially attributed to rising material costs and operating expenses. Haw Par reported a 7.51% increase in costs of sales while Sun Pharmaceutical reported a 28.3% rise in the costs of sales. Consistent with the trend shown in profit margins, the return on assets, return on equity and earnings per share ratios are also nearly doubled, owing to a better economic environment. Though the total assets and owners’ equity increased due to the market expansion in America, the increase is insufficient to offset the effect of a strong rebound in net income. In short, ratios concerning the profitability manifest a rising trend, and thus we conclude that Haw Par’s profitability has improved from 2009 to 2010 by tapping the opportunity of the warming global economic climate. It also outperformed its competitor, Sun Pharmaceutical, which reported an 8.62% fall in income from operation in 2009-2010(Sun Pharmaceutical, 2010). 2.2.2 Liquidity and Efficiency Analysis Ratios adopted here comprise of current ratio, quick ratio, assets and fixed asset turnover, inventory and receivable turnover, average days in inventory, and average days of receivables. Quick ratio and current ratio are used to assess group’s ability to pay the current liabilities due within one year. The current ratio of Haw Par dropped from 12.57 to 12.09 because of the fair value losses in its investment in United Overseas Bank Limited and disposal of available-for-sale financial assets (Haw Par, 2010). However, the quick ratio, a more stringent measure on liquidity, indicated a rise from 2.70 to 3.31. The contradictory result is actually justifiable on the basis of the very reasons just mentioned. Due to an increase in cash and net accounts receivable, the quick ratio increased, it can be concluded that Haw Par demonstrated a greater capability in meeting its short term bond obligations. The assets turnover and fixed assets turnover ratios assess the group’s ability to generate revenue for each dollar invested in assets and fixed assets respectively. Haw Par’s assets turnover experienced a slight drop from 0.07 to 0.06, while its fixed assets turnover increased from 2.73 to 2.91. Possible explanation would be the group’s heavier investment in subsidiaries and inventories, which increased the total assets, resulting in lower asset turnover ratio. Since the fluctuations on both indicators are insignificant, it is unconvincing to say that Haw Par’s management efficiency improved. The inventory turnover ratio and average days in inventory assess how fast the company is selling its inventories. From 2009 to 2010, the inventory turnover declined from 8.19 to 7.41 and average days in inventory lengthened from 44.59 to 49.29. This is attributed to a 52.30% increase in inventory. These two indicated that Haw Par’s inventory management became less efficient. However, Haw Par might have accumulated inventory purposely to counteract the negative impact of rising raw material costs. The receivable turnover and average days of receivables both indicated the improved efficiency in collecting receivables. While the receivable turnover rose from 6.17 to 6.99, the average days of receivables fell accordingly from 59.20 to 52.23 days. It is discussed earlier that sales revenue increased sharply. Besides higher sales revenue, another factor accounting for this may be a better economic situation under which fewer customers face liquidity problem. In all, though its current ratio decreased slightly, Haw Par still retains its ability to cover short-term debt. However, there is still room for Haw Par to enhance its operating efficiency. It may improve the inventory and receivable management system to boost its business performance. 2.2.3 Solvency Ratio Analysis Ratios adopted for solvency analysis are debt to assets and cash acquisition. The debt to asset ratio reflects the degree of reliance on creditor finance. Haw Par’s debt to asset decreased from 0.047 to 0.045, indicating Haw Par’s improvement of financing strategy by financing more on equity. Two possible explanations for that change may be: (1) Sufficient cash flow allowed Haw Par to rely less on loans. (2) The promising trend in economy helped restore confidence of shareholders who in turn invested actively, as evidenced by the rise in share capital. The cash acquisition ratio nearly doubled from 5.92 to 9.40. The numerator, net cash from operation, plummeted by more than half; however, the denominator, cash paid for PPE, fell more dramatically by two thirds. The two fluctuations as a whole resulted in a rise in cash acquisition ratio, giving a positive indication on Haw Par’s solvency situation. As the two ratios suggested, it seems plausible that Haw Par has improved its solvency. However, its competitor Sun Pharmaceutical, with the debt to assets ratio of merely 0.026, has outperformed Haw Par in solvency. It is still possible for Haw Par to improve further. 3. CONCLUSION To conclude, though benefited from the overall economic recovery, Haw Par was also surrounded by risks and challenges in the competitive environment. However, it has been actively engaged in product innovation and adopted pertinent strategies, especially in marketing sector. Haw Par’s responses were fairly effective in tackling the above-mentioned problems, as proven by its successful financial year. So far, Haw Par has been tapping the benefits of economies of scale, enjoying the opportunities in the emerging Asian market and taking advantage of the global economic recovery. Yet in the contestable market where the barrier to entry is minimal in the long run, Haw Par should continue to strive hard so as to maintain its competitiveness in the ever-changing business world.
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