Reading Responses of Long Day's Journey Into Night by O'neill, Essay

Reading Responses of Long Day's Journey Into Night by O'neill, Copyright 02 - Essay Example Most prominent in the book is the theme of addiction and drug abuse. The man of the family, James Tyron, is a worried man about his sons and wife. Mary, the wife is nursing morphine addiction as Edmund and Jamie struggle with alcohol addiction. In addition to these struggles, James has financial problems despite being a considerably wealthy man. All his wealth is tied up in assets. These tribulations befalling a man at the same time would make the strongest of men to crumble. Further, Tyron’s family is in chaos with itself. Everyone has problems and no one is willing to take responsibilities for anyone’s muddle. Act II begins as Jamie and Edmund taunt each other over stealing their father’s liquor. The two sons steal their father’s wine and top it up with water so that their father does not realize. Jamie is suspicious over everything. Edmund has an involving task of supervising his mother not to resume abusing morphine despite his addiction. He cares for his mother and is worried about her condition despite himself. Edmund is reluctant to take a test to ascertain his health condition for the fear of traumatizing his mother. He suffers but perseveres it for his mother’s sake. He says: promise not to worry yourself sick and to take care of yourself (ONeill, 23). O’Neill’s work is full of tension. James’s house is full of suspicion. In Act II, Edmund accuses his brother of being suspicious over everything. The characters in the play contribute to the dissonance. Jamie’s suspicion causes tension in the house. He complains that he had been put in the dark for 10 years about his mother’s addiction. He, therefore, trusts no one in the family. To him, everything that goes on is akin to a scheme. Moreover, the two sons are not sure of their mother’s morphine addiction state. When Mary left the main bedroom to go sleep in a spare bedroom due to her husband’s snore, Edmund suspected she was up

The Era of Technology for the Environmental Based Issues Essay

The Era of Technology for the Environmental Based Issues - Essay Example The idea could be referred as a perfect one because it will enable the council to get and accumulate sufficient funds which could be used for decreasing the level of air Creating awareness among the people is more worthwhile than that of applying the fees and fines over the people. It would work for California but new and effective strategies like in awareness could also be initiated. Public Law of United States (US) 480 stated that the United States sells the surplus gains to the developing countries, which pay them in local currencies. Later on, the country transfers much of its grains in de facto, but not to sell the grains which are not a good sign for a country which is highly effective and powerful in gaining and maintaining foods in total. This could be in a perfect way and the United States has to look forward to gaining an advantage by selling grains. In Economics, the name of elasticity is one of the most important topics which have its own importance and recognition. If the prices of food items are increasing without increasing the quantity, then it is known as negative elasticity in which prices are increasing not the quantities for poor. There are two different forests which need to be harvest accordingly. The first forest would be harvest accordingly and it is left in the similar position, while the second forest has been developed into a house. In terms of efficiency Forest, 1 would remain the oldest harvest age because it will remain in the same position for a long span of time, higher than that of the years of Forest B.

Biblical Worldview Essay Example | Topics and Well Written Essays - 750 words

Biblical Worldview - Essay Example s of words contained in Genesis 1: 26 which say that, â€Å"God thereby said, let us create man in our likeness and image, and let us give him dominion over every creature of the earth. This paper therefore argues that since man is created under the image and likeness of God, there is a need of treating mankind with respect, honor and faithfulness. The work that gives me satisfaction is systems analyst. This work involves researching on problems, planning solutions on the problem researched, and recommending software’s and systems at the functional level of a computer. My job also involves preparing broken computer servers, for business organizations, and individual companies. As a system analyst, it is my duty to act as a liaison between computer vendors, and experts of information technology. While carrying out my duties, I’m always under the inspiration of God’s word contained in Romans 12:4-8, which requires mankind to carry out their duties and vocation in a manner that is perfect, and pleasant to God (Groh, 2010). This scripture denotes that Christians are the body of Christ, and each Christian has different gifts. Christians should therefore use these gifts for purposes of serving each other. Under the image and likeness of the Almighty God, there are three major issues that we need to understand. The image of God that Genesis 1, refers to is not a physical image. This is because the bible in John 4:24 denotes that God is a spirit and therefore, to worship him, it must be in truth and spirit. Therefore, God does not possess a physical body that is made up of blood and flesh, but a spiritual body (Pembroke, 2012). However, the image of God that the scriptures talk about is the mental image. God has given mankind a mental capability that is far much above that of animals. This was for purposes of enabling mankind to carry out the work of God. Gods work was to protect the earth, and every living thing that existed in earth. As a system analyst, my duty

A Bridge to Wisemans Cove Essay Example for Free

A Bridge to Wisemans Cove Essay ‘With it’s sight restored at last, the bird jerked it’s head sideways to look at Carl and then Joy, as though it was asking, is it true? Am I free?’ James Moloney uses the image of the osprey in several ways throughout the novel. The main technique in which it is represented, is the emotion of the characters finally feeling free in there own way. The first use of the image of the osprey is shown when Carl’s mother Kerry would always leave to go on one of her ‘holiday’s’. I believe that she went on these holidays to make herself feel free. To go away for a few days and leave her real life. But in fact she was never really free. Even on her holidays she always knew that she would eventually have to come back to reality, to her children. It’s not that she didn’t love her kids, she did. Perhaps she just couldn’t handle the stress of having to raise three children as a single parent or maybe just having them around was holding her back. During the prelude of the novel an unknown women gets on board a bus. She waits out of sight and sneaks on the bus when the driver is pre-occupied. She does not have a ticket and no one knows who she is. ‘The driver gunned the engine, commanding its throaty roar and the bus pulled away from the roadhouse into the sea of darkness. Only then did the women sit up and permit herself a smile’ At the end of the novel we find out that this women was Kerry. She was on her way back to her children when the bus she was on drowned into the ocean. In the moment that Kerry died, came the realization that she knew she was finally free. Sarah, Carl’s sister also finds the courage to leave and set herself free. Free from living her own life. Since Sarah was old enough to remember she would always have to depend on herself not her mother. When her mother would leave she would have to look after Carl and Harley as though they were her own. She states in the book ‘I’m only nineteen years old. I’ve got my own life. By the time Harley’s old enough to take care of himself, I’ll be thirty.’ Although I don’t agree with the way Sarah went about just dropping Harley and Carl off at their Aunt Beryl’s, I agree that she has her own life to live and she needed to escape. Consequently, setting herself free. The image of the osprey is shown in a major way within Carl. In many ways the osprey is a mirror image of Carl, in its appearance, pain, suffering, recovery and how it is set free. The image of the osprey is remarkably similar to that of Carl’s. It was a, ‘large bird, brown and grey, its head covered by a canvas hood.’ The description of the osprey matches some aspects of Carl’s body and personality. Carl was a large boy, miserable like the colour grey and he was shy like a hood covering his head. This was because he did not want to see what people responded to his body. He was ashamed of himself and the name his family had. Although by the end of the book Carl realizes that he finally has new friends and a new family. He finds that people like him and that they ignore that he is a Matt. ‘My name is Carl Matt. M-A-T-T.’ Carl screams his name out to the world, he doesn’t care anymore. Carl was free. Free of his worries, free of his fears. He is free from the curse that everyone says he and his family has. He could let go of his sorrowful past and be alive just like how the osprey let go of its painful past and began to fly once again. The way the osprey spread it’s wings and took its first beat against the wind symbolizes the emotions rushing through Carl when he finds out his mum truly did love him and Harley. The journey of the osprey mirrored Carl’s personal life. The osprey was set free in a way that makes Carl feel alive. The image of the osprey is used to represent the characters feeling free. It mainly symbolizes as a metaphor for Carl’s life. The osprey is free from being injured by people by being nurtured from Justine and Joy. Carl was also getting injured by people. Throughout his whole life people were hurting him. Kerry, his mother, Beryl, his aunt, his older sister Sarah and kids calling him names about him weight. When he met Justine and Joy, they saved him. They made him feel alive. They set him free.

Morrisons Marketing Strategy

Morrisons Marketing Strategy Morrisons is the biggest retailer and chain of superstores in the UK. Morrisons started it business long back in late eighteen century by William Morrisons having head branch at Bradford, England. Steadily it grew its business and operates almost 455 stores in the UK and is a part of stock exchange of FTSE 100 Index. It is operating under Public Limited company label of WM Morrisons. It is a big dealer of food and has won many Awards for best food for its meat, bakeries, frozen foods and many other food items and daily household needs. Definition of Marketing Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer (P. Tailor 7/00) Marketing is a long process which requires particular skill to co-ordinate, plan the activities and implement plan for the success of carrying out marketing campaign. This success comes from analyzing market and market research. Task 1. The role of marketing in Company and how it helps contribute to business objectives. Vision of Morrisons Different and Better than Ever It cares for the values of bringing improvement always. Business objectives of Morrisons To maximize its revenue and profit by focusing on being Food Specialist TO be the cheap provider of goods and services to the customers. Role of Marketing in Morrisons In Morrisons, marketing plays an important role in different contexts. Marketing has to deal different departments of the organization where it needs to bring improvements and changes. Role of marketing and sales are of great importance in marketing activity. Direct and indirect marketing are equally important to target the market for Morrisons. For the effective marketing role, Morrisons can take competitive advantage of modern technology which would bring corporate image and better turnover for Morrisons. With effective accomplishment of marketing role, it would be able to fulfill its corporate objective of being first in retail business with profit and sale maximization. An Analysis of the External Factors influencing marketing in Morrisons Markets are highly vulnerable to external market that has great influence on the companies. Proper analysis of external factors affecting Morrisons must be seriously evaluated and managed. PESTLE analysis will help Morrisons to understand impact of these external factors. Political Factors- Rules and laws governing authorities fall under political factors. These authorities put forward laws for the limitations of the company. For Morrisons, political factors like policies and procedures for the business to carry its operations. Economic Factors- are all important factor relating to profit and money. Morrisons is focused on profit maximization wherein it has to take more care of credit crunch and economic downfall. Technological Factor-Â  It relates to use of modern technology and techniques in use for production and sales. Prior concern for Morrisons is to make sure that it uses World Wide Web for its business strategies. Environmental Factors- This factor has become top concern for the world due to global warming issues. Thus for Morrisons, it is important to make use of non polluting machines, technologies and techniques. Legal Factors- It is about issues and difficulties coping up with laws. Morrisons would like to handle legal affairs while planning its growth and expansion activities. Morrisons being in the retail sector faces many more problems due to effect of its external factors. (Bookrags.com, 2006) An explanation of how marketing is used to achieve business objectives Achieving business objectives is possible by possible achieving four levels of objectives. Companies is able to achieve it goals and objectives when it analysis its external and internal factors and focus on the strategy and aims of corporate and marketing level. Corporate Objectives- The overall objective of a company in terms of its vision and goals for coming 5 years is known as corporate objective. Morrisons corporate objective for next five years would be increasing profit by 5% which can be significantly achieved by marketing activities. Marketing Strategies- Corporate objective is straight linked to marketing objectives which is designed by marketing department of the company. Marketing objective should go hand in hand with corporate objective which helps to achieve corporate goals ultimately. Marketing Strategies and tactics- Strategies on marketing expenditure and type of advertising activities, all should be linked back to corporate activities which help company to be successful. Whatever is marketing activities and strategies, it should be focused in the line of companys ultimate goals achievement which is either to maximize profit or to be brand popular. Morrisons can achieve both together with marketing activities. (tutor2u.net.com, 2012) Elements of the marketing process The different element included in the marketings Ps is product, price, place, promotion and price. These are also known as marketing mix which rightly analyzed can bring profit to the organizations. Product- Expanding its customer base through acquisition of more customers is important to Morrisons. This can be done through improving its existing product and introducing more products for new demands. Sale is expected to improve with expansion of its product line. Price- Customers would always like to pay negotiable price for the products that has substitute in the market. Morrisons has always been ahead in offering goods at cheaper price than its competitors. Giving discounts, coupons and best reduced prices. Promotion- Numerous promotion techniques promoting the brand need to be adopted which promotes the product not only nationally as well as internationally. Promotional activities like direct and indirect marketing and advertising needs to be carried out by Morrisons. Promotion needs to be carried out intensively. Place- Right market for right customer is very important. Morrisons needs to understand right market for its product. It has to carry out research on market segmentation and distribution channels for its product. Finding right agents and franchisee internationally becomes a challenge for Morrisons. Morrisons focus on 4ps will help it to find new markets and right price from its right customers. (Antiessays.com, 2012) Task 2-Understanding the principles of marketing through detailed analysis of the marketing mix and segmentation Marketing Mix is an effective strategy for putting up right products and services at the competitive price at the right place in the market. Market segment is another tool that helps to put the product and services to the right targeted customers by segmenting them on the basis of their taste, style and needs. These both tools are considered to be top and effective tools in marketing due to its significance importance in marketing. This both strategies help to put products in the right market due to segmentation and positioning. For marketing of product and for the best sale, right market for the product which can be done through communication which demands advertising. Market segmentation will help to target customers based on geographic, behavioral and psychographic segmentation. This division helps to catch the customer as per their needs and demands. Growth and expansion strategies of the business can be carried out with market segmentation tool. Morrisons has been performing well with its sales, expansion, and diversification and segmentation strategy so far. It just needs to explore more of its stores in international countries which really need diversification and segmentation. As it is a new market, product and market diversification are both essentially important. (scribd.com, 2012) An analysis of the positioning of Morrisons in the market in comparison with other supermarket chains. Positioning of Morrisons in the UK market is very strong due to its strong history and strong marketing strategies. The best thing about Morrisons is its price promise to offer goods and services at reasonable and comparatively lower price. In highly competitive and price war market. Morrisons has positioned itself on the top among the list of other superstores like Asda, Tesco and Sainsbury. Price Promise- It has launched guarantee work by Morrisonss Price Check where it claims to be cheapest superstore. If customer compares the price list with other stores customers find the products very cheaper and better. Thus when supermarkets were surveyed , it was noted that Morrisons was in the lead in its positioning in the market with compare to other superstores due to its price promise, loyalty schemes and various other promotional schemes. .(ceibs.edu.com, 2012) A review of Morrisons main market segments and an explanation of how they have been segmented e.g.: demographic, geographic. Review of Morrisons Main Market Segments Morrisons has already created a strong market in grocery and superstore segment where the products have become customer favorite. For few next coming years, Morrisons would like to expand the market segment of its non-food items into new geographical segments. Morrisons Online-Morrisons has covered huge market in the UK and operates it business with many superstores in various regions. It has showed good increase in revenue in each year. The company is still further planning to increase its revenue stream through maximization of use of Morrisons online with its customers. After capturing good share of supermarket, Morrisons is further developing its strategy to maintain and increase its market geographically. (Morrisons Annual Report, 2011) Market segmentation Market Segmentation is the tool that divides market into segment based on some divisional factors like geographical, demographical, psychological and behavioral segmentation. This segment helps distribution and marketing departments to sell their products and services based upon its demands. Behavioral segmentation- This is based upon behavior, nature and attitude of customers. Morrisons has identified choice of its customers based upon customer database and surveys. It has identified purchasing behavior of its customers into Finer foods, healthy foods, traditional foods and thus have formulated new products range based on this. Psychological Segmentation- This segment focuses on the basic psychological needs of the customers which is based on lifestyles and motives of the customers. Morrisons customers are strongly associated to the brand due to Morrisonss ability to meet its customers requirement which demands cheaper prices and the best services. Morrisons has been proved very effective to deliver products that best suits customer lifestyles and fulfill their motives. Thus its has been successful with meeting its psychological segmentation. Demographic Segmentation- Its about focusing on more locations and market coverage. Morrisons has been strong holder in the UK market but has captured great share of market but it has to more focus on new places and countries which are unexplored but people will value its products and services. Morrisons has segmented its market quite systematically and need more focus on geographic segmentation so as to be strong leader in the market. (Joseph. 2010) An evaluation of the benefits of Morrisons of segmenting markets. 1. Competitive position- Segmentation process helps to identify potential customers to its products. The company is able to derive competitive advantage because of positioning and segmentation. This can be done through proper direct and indirect advertising and marketing. 2. Growth Opportunities- To attract new customers and retain older ones is the main objective of the business. Market can grow only if segmentation is right. Thus growth is possible only through finding right customers. 3. Proper Allocation of Resources- Companys resources are very important and needs to be properly utilized. With segmentation, company would be able to save on its investment due to proper allocation of resources and less in wastage. It ultimately gives good returns on investment. Many more benefits can be derived from market segmentation and some of them are very much potential in achieving business objectives and goals. (Ries and Trot, 1972) Product distribution at Morrisons Efficient methods of marketing and distribution play an equal role in helping company to reach prime position. Many benefits can be derived if company is applying the best techniques to its distribution channel. Morrisons has introduced new transportation technique that aims at low carbon emissions and be eco-friendly. It has been actively working to have the best distribution technique which includes battery-operated vans for deliveries and fuel efficient transportation technologies that emit less of carbon in the environment. Analysis of pricing and promotional strategies at Morrisons Morrisons Pricing Strategy Morrisons is very good at offering its customers products at very low and cheap prices comparatively and offer reduced prices offers. It has proved to be giving the best price by it Price check test and also the big price drop campaign which bring heavy reduction to the products for its customers .(dummies.com, 2012) Morrisons Promotional strategy The biggest promotional technique of that Morrisons needs to bring in is its loyalty scheme club card which brings in great business o the company. The other promotional techniques are directly focuses on the customers which are voucher exchange, coupons at till, petrol promotions, advertising channels and offers on no food items. (dummies.com, 2012) Impact of current technology on marketing activity Businesses are left far behind if they do not use modern techniques. Marketing without modern technology cannot be effective due to its benefits and wide use among customers. Following sure some benefits of modern technology on marketing. 1. With modern techniques businesses can bring great change in products marketing due to creativity. 2. Bring brand awareness at global level due to world wide use. 3. Develops online presence as almost all company are on new technologies like online and internet marketing. 4. Online marketing has been cost effective with great benefits in term of revenue and sales. 5. Modern methods offer various approach to advertise the products due to multi marketing method approach. (Marketingmethods.net 2012) Task 3. Developing Marketing Plan for a new range of products. Methods for researching different market for a new range of ready meals. Primary and secondary methods are the techniques to find new markets for ready meals. Primary technique is a method that will collect data on first in hand with new research and surveys whereas secondary data is the one which is already tested and approved with results. Some techniques are- 1. Data base from companies already selling ready meals. 2. Direct Surveys and Questionnaires-This proves to be expensive and time consuming but gives right knowledge about customer choice. 3. Desk Research-will help to further research on the product and would test the product and send samples in the market which will be reviewed. (Euromonitor.com, 2012) Strategic aims and objectives for the plan. Aims for ready meals marketing is very clear and are as mentioned 1. Aims at customers convenience and costs. 2. Aims at providing better taste with new varieties of spices. 3. Aims at time saving for students, singles and busy and occupied people. 4. Target Market for Marketing activity and reason for choice Target market would be based upon market segmentation for customers. 1. Singles, bachelors, working couples and busy occupied professionals. 2. Market and customers that wish for trying new spices and are time savers. 3. International students and people who wish to work hard and saves money by having ready meals with good taste and spices. Micro and /macro environmental factors affecting the planning- PESTLE analysis of ready meals will help to understand external factors that might affect planning. Political factors- Health and hygiene factors is very important considerations. Policies regarding manufacturing and packing labeling for international level needs also to be taken into focus. Social Factors- Traditional foods are very popular in market, thus it is important to present nutritional part of this ready meal for future focus. It should be like by household and working women. Technological Factor- Ready meals needs to use new packing and labeling techniques with modern techniques so as to ensure safety and modern technology marketing will ensure good business. Marketing Mix for the ready meals Product- Ready meals newly introduced needs to be tested and reviewed by sampling distribution by checking spice level, nutritional elements and salt factor. Price- Customers expect new products with little reasonable and cheaper side on price part. With new products, price factor needs to be satisfied by the customers. Place- As targeted customers are placed in line, place would be promoting it to customers wishing to save time and costs. Promotion- New promotional strategy which adding it to existing product line of micro wave food and easy to cook food. With more effective strategy, Ready meal will prove a big success. Factors relevant to the implantation of the plan Advertising and marketing- For ever new product, it is me too scene when new product takes time to get along with other products wherein marketing and advertising activities plays an important role. Engagement- Customers need to be continuously engaged by means of samples distribution, promotional offers and coupons so as to keep product selling and bringing awareness. Monitoring- Customer follow-up is essential to find out review, suggestions and recommendations which will help to improve product and made better. Conclusion All the companies are concentrating great on marketing activities and strategies as it is the only way to reach customers and bring awareness about the brand. Morrisonss has been a strong brand in the market from quite along time. But in competitive market and competitors like Asda and Morrisons, it is important to retain customers and focus on new through marketing strategies only.

The Perfect Perfect :: essays research papers

â€Å"Therefore let them be instructed by you, at least by your deeds.† What does this verse mean to me? Well, what does it mean to you? How many of you believe you live a life of example? Perhaps you feel unqualified? That’s exactly how I felt. When I sat down and started to think about the oratory I was going to be giving for the last year I would be in high school. I wanted it to be moving. Funny. And finally I decided that I wanted it to be about exemplary life. I felt like I had no right, no privilege of allowing others to follow me. A mere adolescent 17 years of age, hormones off the charts, grips on reality out of the question, and virtually inexperience in the ways of the world, some may go so far as to call me sheltered†¦ what can I say about leading a life of example? Well, if I stick to my state of mind as an adolescent, I;m obviously not going to have too much to say for at least another decade. But if I stand outside of myself, and reflect on the quot e as rational intelligent human being, you’re gonna have an earful. This past year, just before Christmas, I got a job at a pizza joint no more than a 15 minute drive from home. The area in which the restaurant was situated has some wealthy neighborhoods, but for the most part, the community is downtrodden. Before coming in to work, I had no knowledge of the people that worked there. I had a friend from school with whom I’d be working, but he was the only person I knew. He had told me that they needed workers. I needed a job, and I got hired right on the spot. I learned some very shocking things within just a couple weeks of my employment My manager age 46. His oldest child? A son at the ripe young age of 31. My manager impregnated his girlfriend, of the same age, at 14. He got married at age 15 and became a father shortly after that birthday. His so called â€Å"wife† ran away, and so, at 16, he got divorce and continued to raise the child alone. A girl who is one of the pizza makers is 16. She had an abortion at 15, and is now expecting a child in late January.

Aspen Tech case study Essay

History and Overview †¢Ã¢â‚¬ ¯ Specialized in the development of simulation software for customer in process manufacturing industries †¢Ã¢â‚¬ ¯ Advanced System for Process Engineering (ASPEN) project conducted at the Massachusetts Intitutes of Technology (MIT) in Cambridge Massachusetts, from 1976 to 1981 †¢Ã¢â‚¬ ¯ Founded in 1981 by Dr. Larry Evans, a professor of chemical engineering at MIT †¢Ã¢â‚¬ ¯ Larry Evans†leadership in the development and application of integrated systems for modeling, simulation and optimization of industrial chemical process History and Overview †¢Ã¢â‚¬ ¯ In 1982 its first year of operations, AspenTech lost USD565,000 on sales of USD182,000 †¢Ã¢â‚¬ ¯ Over next 13 years AspenTech’s sales grew rapidly as it became a major payer in the process simulation segment of the software industry. †¢Ã¢â‚¬ ¯ 1995 company earned net income $5.4 million on sales $57.5 million. AspenTech estimated that it commanded 50% of the simulation market for chemical sector. †¢Ã¢â‚¬ ¯ 1995, it employed 417 people of which 265 ware based in the US and the remainder in office in 5 countries. History and Overview †¢Ã¢â‚¬ ¯ AspenTech went public in USDD31 million IPO which included a USD 18 Million primary offering and USD 13 Million secondary offering : –†¯ to finance further R&D –†¯ to acquire externally developed technologies –†¯ to allow early investors to monetize their holdings in the company, †¢Ã¢â‚¬ ¯ Feb1995, Aspentech conducted a $23 million public offering, which included a USD 1 million primary offering and USD 22 million secondary offering. †¢Ã¢â‚¬ ¯ 1995, AspenTech was the only one of the firms that specialized in simulation programs for chemical petroleum, and petrochemicals industries that was publicly traded. Products (versi makalah) †¢Ã¢â‚¬ ¯Aspen Plus Aspen Plus is the most popular product a steady state modeling system built around the core technology This product accounted 48% of sales in 1995 †¢Ã¢â‚¬ ¯Speed UP It was AspenTech’s dynamic process modeling product commercialized in 1986 by Prosys Tecknology that AspenTech purchased in 1991 †¢Ã¢â‚¬ ¯Max It is a less powerful version of Aspen Plus †¢Ã¢â‚¬ ¯Advent A software to optimize the tradeoff between capital expenditures for energy saving heat exchangers and the energy saving realized   Product Portfolio (versi makalah) †¢Ã¢â‚¬ ¯ Properties PLUS It is a database of chemicals properties underlying its other products, popular with customers ~ developed in-house modeling software †¢Ã¢â‚¬ ¯ Other modules –†¯ offers to the customers ~ license separately –†¯ use with its other products to model subsystems used in highly specialized chemicals processing application. Product Portfolio (versi web) †¢Ã¢â‚¬ ¯Process Engineering – – – – – – – – Process simulation Chemicals (10 products : AspenPlus) Process simulation Oil&Gas (8 products : AspenHYSYS) Process simulation Refining (11 products : Aspenadsim+) Process simulation Batch/Pharma (8 products :Aspenproperties) Model Deployment (3 products : AspenModelrunner) Equipment modeling (8 products :AspenAcol+) Basic Engineering (2 products :AspenKbase) Economic Evaluation (3 products : Aspn Icarus Project Manager) †¢Ã¢â‚¬ ¯Advance Process Control (14 products : Aspen Apollo, Aspen IQ) †¢Ã¢â‚¬ ¯Planning & Scheduling (10 products : Aspen Advisor, Aspen MBO) †¢Ã¢â‚¬ ¯Supply & Distribution (3 products : Aspen Retail) †¢Ã¢â‚¬ ¯Production Management & Execution (16 products : Aspen 0server) Sales & Marketing †¢Ã¢â‚¬ ¯1995, licensed to more than 450 companies ~ chemical industry and 350 univerities †¢Ã¢â‚¬ ¯The selling cycle for process modelling software was long (6-12 months) †¢Ã¢â‚¬ ¯AspenTech charged a premium over competitors products, raise licensing fees three times (1998-1995)~10% †¢Ã¢â‚¬ ¯Customer loyalty –†¯ Over 90% renewed their software –†¯ 1994 : 34% revenue from software renewal; 34% from expansion from existing customer †¢Ã¢â‚¬ ¯United States : –†¯ Directs sales force –†¯ Earned combination of salary & commission †¢Ã¢â‚¬ ¯Sales subsidiaries : UK, Japan, HongKong, Brussels –†¯ Serve local & regional markets via directs sales forces †¢Ã¢â‚¬ ¯Licensed software for a non-cancelable term ~ 3 or 5 years †¢Ã¢â‚¬ ¯Charge : –†¯ annual fee x license term (year) –†¯ Interest rate 9.5% – 11% currently 12% †¢Ã¢â‚¬ ¯Customer were more likely to buy software priced in local currency Risk Exposure 1.†¯ Foreign Exchange Risk – – – – sell software in local currencies  installment from three-to-five years creates foreign exchange exposure exchange rate fluctuations 52% revenue generated from foreign company with following revenues figures: †¢Ã¢â‚¬ ¯ Europe 31% †¢Ã¢â‚¬ ¯Asia 12% †¢Ã¢â‚¬ ¯Other countries 9% †¢Ã‚  In United State 48%. Risk exposure are might be applicable :Transaction Exposure (High) most the costumer operated outside of US Translation Exposure (Low) convert foreign currency financial statements into a single currency (USD). Risk Exposure 2. Interest Rate Risk (low) –†¯ AspenTech debt using US dollar currency fix interest rate and mid term (3years) –†¯ place a seasonal line-of-credit facility with a New England Bank Risk Exposure 3.†¯Credit Risk –†¯Ã‚  Credit risk (default risk) in high exposure level 2 sources probability trigger this risk: growing rapidly customer choose to defer payment of their license over the life of the contract Ex: AspenTech was liable for $ 4,6 million of this amount under limited recourse agreement Unwilling (Low) most of the customers are a loyal customer Unable (High) depend on the type of business of customer Liquidity Risk many of its customers chose to defer payment of their licenses over the life of the contract the company usually experienced an operating cash shortfall Ex: the firm booked revenue of USD57.5 million, yet receive cash payments directly from customers of only $38.5 million (66.96%). Management Risk Perform by AspenTech Foreign Exchange Risk eliminated all sales transaction exposure arising from foreign currency denominated license contract inline with its risk management policy by doing hedging : –†¯ Sale non USD installment receivable for USD –†¯ forward currency agreement Credit Risk –†¯ AspenTech has not managed the risk of the uncollectible installment –†¯ The contract with GE and Sanwa in selling the account receivable has limited recourse agreement   Liquidity Risk –†¯ To manage its liquidity risk in order to cover their day to day operation, AspenTech sell its receivable to GE and Sanwa and other financial institution. –†¯AspenTech also has debt to Massachusetts Capital Resources –†¯ placed a seasonal line of credit facility with New England bank. Recommendation AspenTech’s should reexamine the firm risk management policies and practices in light of the changes : –†¯ over the past year AspenTech’s international sales had remained a substantial portion of its revenues –†¯ the firm international expenses had increase a slightly faster rate than its international revenue –†¯ AspenTech had gone from private company into a publicly traded company AspenTech’s should review and determine an acceptable level of risk. It involves determining reasonable level of risk in-line with appropriate opportunity to gain Recommendation Net Foreign Exchange Exposure (Operational Hedging) AspenTech’s Value at Risk, 1995 (95% confidence level) UK Pound German DM Belgian Franc Japanese Yen Expenses in local currency 3,129 722 158,223 414,793 Monthly Std. Deviation 2.90% 2.80% 2.70% 3.00% Exchange Rate* 1.5873 0.6711 0.0326 0.0106 Total *Average exchange rate (U.S. dollar per unit of foreign currency) over fiscal year 1995 VaR $238 22 230 218 $707 AspenTech’s Net Foreign Exchange Exposure (‘000) by Currency, 1995 Cash Inflows UK Pound German DM Belgian Franc Japanese Yen Current Sales 1,724 1,015 308,984 Prior Sales 981 577 175,781 Cash Outflows Expenses 3,129 722 158,223 414,793 AspenTech should hedge only the net exposure †¢Ã¢â‚¬ ¯ Net foreign exchange exposure in German and Japan †¢Ã¢â‚¬ ¯ Forward contract for Belgian’s operating expense Net Exposure (424) 870 (158,223) 69,972 Recommendation Liquidity & Credit Risk –†¯ AspenTech should look other possibility to deal with other financial institution to increase their bargaining position to GE and Sanwa With higher bargaining position, AspenTech can get lower cost and better position in managing their credit risk –†¯ Maximize in selling long term receivable first Recommendation Others Hedging Instrument : –†¯ Plain-Vanilla Options give the buyer of the option the right but not the obligation to buy (call) or sell (put) a specific amount of currency at a predetermined strike price (exchange rate High cost –†¯ Average-Rate Options †¢Ã¢â‚¬ ¯ Spot rate are calculated as an average over a period †¢Ã¢â‚¬ ¯ Transaction possible during the expiry period at several predetermined dates †¢Ã¢â‚¬ ¯ Strike rate can be fixed or floating –†¯ Knock-in/knock-out Options †¢Ã¢â‚¬ ¯ Does not provide full protection †¢Ã¢â‚¬ ¯ The key is in determining the barrier rate †¢Ã¢â‚¬ ¯ Low cost –†¯ Cross-currency transactions –†¯ Foreign currency money-market borrowing Recommendation †¢Ã¢â‚¬ ¯ Others Hedging Instrument : –†¯ Cross-currency transactions †¢Ã¢â‚¬ ¯ transaction basically does not provide ability to hedge or secure any risk †¢Ã¢â‚¬ ¯ provide probability of arbitrage if there is a difference between cross rate and indirect rate. –†¯ Foreign currency money-market borrowing †¢Ã¢â‚¬ ¯ Borrowing in the money market, rather difficult to use since the company need to determine level of debt that matched with its cash inflow from other matched currency