Penn Square Bank & Down Corning Bankruptcy Essay

According to Norm Bowie, â€Å"sometimes being moral enhances the bottom line rather than reduces it† (Hartman, 2005, p108). Unfortunately, in the instances of Penn Square Bank and the Dow Corning bankruptcy, that may not have been the case. The following will examine the particulars of these situations and discuss the ethical issues present for each. Penn Square Bank Penn Square Bank was a small bank that played a large role in the Oklahoma banking crisis of the early 1980s. In an effort to maximize on the profits of the booming oil industry, the upper management of Penn Square Bank cut corners in several areas of its new lending division. Documentation to support million-dollar loans became lax. Collateral valuation and revenue recognition was severely over estimated without verification of the documentation to support such claims. Loan contracts were with casual deals and unspecific terms. Credit was extended based upon unverified personal letters paid for by the client. These documentation errors led to loans not properly secured (Caskey, 1985). In addition, Penn Square was more and more money, which facilitated errors in revenue recognition as the bank accepted over estimated valuation claims without requiring loan or interest payments. Thus, on paper the bank looked successful without ever possessing the funds to support its lending endeavors. Finally, credit was extended without true verification of asset valuation or proper documentation, and re-extended when the client could not produce the payments necessary to support the lofty loans (Caskey, 1985). Each of Penn Square Bank’s actions represents a form of financial statement fraud, which led to its downfall in 1982. According to Fraud Examination, there are three ways to deter financial statement fraud: (1) reduce the pressure to commit the fraud, (2) reduce the opportunity to commit the fraud, and (3) reduce the rationalization of the fraud (Wells, 2005). However, in this instance, most if not all of the fraud committed can be attributed to demanding goals set by Penn State Bank owner, Bill Jennings. As explained by Hartman, the â€Å"driving force† of â€Å"profit maximization† created a business environment to facilitate fraud (2005). Because profit was the sole motivator, documentation was inadequate, collateral valuation and revenue recognition was overstated, and credit extension was unverified and inferior. Instead,  Penn Square Bank should have considered the following measures: †¢An oversight or review board should be been established to oversee verification of credit or collateral valuation and determine the risk associated with each loan. †¢Documentation requirements should have been heavily enforced and maintained by the review board. †¢Contract and loan deals should have been regulated to the office with strict documentation requirements. †¢Disclosures should have been made regarding the lack of loan and interest payments. †¢Asset valuation and revenue recognition should have been accurately portrayed to investors, clients, and potential buyers. †¢Upper management should have established company ethical standards and enforced these standards with strict consequences for violation without exception. Unfortunately, all the measures to deter fraud that should have been considered were undermined by the owner’s overwhelming demand for success. Thus, Jennings’ need to maximize profits and increase sales created the pressure, opportunity, and rationalization to commit each action of fraud. Dow Corning Bankruptcy Dow Corning Corporation is the big name in silicone and silicone-based material production. But in 1995, the company filed for Chapter 11 bankruptcy to protect itself from lawsuits regarding their silicone-based breast implants. Some advocated that the action was an effort to â€Å"avoid compensating women for their injuries† (Book review, 1996, p7). However, according to Hartman, Chapter 11 bankruptcy is intended to protect companies from creditors while it undergoes restructuring in an effort to stave off liquidation. By doing so, the company continues business, pays taxes, and provide jobs but is allowed time to reorganize to triumph over its economic hardship (Hartman, 2005). The ethical challenge is to use Chapter 11 as it is intended – as a restructuring tool to avoid losing everything – rather than file for Chapter 11 as a way of cheating its creditors out of owed money. Hartman suggests that what is ethical in regard to bankruptcy is to go beyond what the laws require and uphold the debt agreements made with creditors (Hartman, 2005). Dow Corning seemed to have that same perspective. Nine years later the company emerged from bankruptcy after settling the lawsuits for a payout of $3.3 billion over the next 15 years (Arndt, 2004). During the time under Chapter 11, the company reorganized  itself to refocus silicone production to develop fabrics, materials, and pharmaceutical products (Arndt, 2004). These sales and expanding markets will help Dow Corning to pay its debts to the 300,000 women named in the settlement (Sissell, 2004). Thus, Dow Corning is Chapter 11 bankruptcy free but still upholding its ethical obligation to the wronged party and its creditors. Although Dow Corning’s actions following the Chapter 11 emergence was ethically sound, its actions leading to the filing was anything but. Problems with Dow Corning’s silicone breast implants began as early as 1984 when they lost a lawsuit claiming the implant caused medical illness such as autoimmune disease. During the investigation for this lawsuit, lawyers found evidence showing Dow Corning executives were aware of complaints from doctors, concerns about the lack of long-term testing, and cases of the implant bursting during surgery. In addition, the study that supposedly proved the effectiveness and safety of the product revealed detrimental long-term effects on the animals under experimentation (Book review, 1996). However, throughout all the breast implant concerns, Down Corning continued to advocate the safety of their product going as far as to hire high profile and extremely expensive teams of legal and public relations specialists. In addition, allegations were present of executives attempting to destroy damning internal documents suggesting upper management was trying to cover up its liability in the claims. The 1984 lawsuit found Dow Corning guilty of fraud and deceit stating the company provided inferior and incomplete information by understating the risks to make an informed decision (Book review, 1996). More important, it revealed the unethical behavior of the executives and company as a whole.

Descriptive Essay Final Copy

I grab my bag and a hair-tie from the vanity on my way Out the door, tying my waist-length brown hair in a knot as I hurry down the stairs. My nana stands at the stove, stirring the pot of gravy she is making for breakfast. Behind her stands my papaw, playfully yanking her ponytail every time she turns around. At first glance one would think that they make an odd couple, with my nana being only five feet tall, with fox-red hair and hazel green eyes, in near perfect contrast to my papaw who is a large man, standing nearly six foot four, with eyes the color of the sky and white air that was once jet black.But as they laugh and play standing there in the kitchen, I know this place would mean nothing if they were any different. I slip on my boots at the door, and run across the field to the old wooden barn, its red has long faded, and the metal door handles are covered with rust. Reach out and grab the rusty handle and pull, hearing the ancient hinges creak and groan as the door opens. W alking into the barn can smell the fresh hay, and the lingering smell of the old moonshine still that sits in the corner, unattended for years, but left for the antique look.I climb the ladder to the loft, and wade through the piles of hay until reach the little door that opens onto the roof. Climb out onto the roof and walk to the end of the barn. There sit down, my leg hanging over the edge of the black shingled roof. I sit and watch as the deer run across the field, and as the train go by down next to the river. Reach in my bag and pull out my sketch pad and charcoals. I draw everything I see, the river, the birds, and the mountains. After I finish, climb down and run to the house; pause at the door, leaning own to pull off my boots.I open the door, and step into the kitchen, the floor is warm from the heat of the old white stove, causing tiny droplets of condensation to form on the speckled blue wallpaper. Nana has already set the table, her faded blue and white china resting in front of three chairs on the blue table cloth that covers the deep brown oak table. On each plate sit two biscuits, golden and gleaming with butter, accompanied by sausage and fried eggs. Grab the pot from the Stove and ladle the thick, creamy gravy onto everyone's plates.The steam rises from each plate like a plume of smoke from a tiny fire, taking with it the wonderful smell of my nana's cooking. As we sit down to eat, we join hands and my papaw gives the blessing; thanking God for the food he has provided on this day, and for forty years h?s had with the wonderful woman who cooked it. See my nana smile with love for my papaw, her head still bowed in prayer as we say ‘amen. ‘ As we raise our heads, I smile too, knowing that this place is filled with love and laughter and always will be.

Property law Coursework Example | Topics and Well Written Essays - 2000 words

Property law - Coursework Example It is essential that the terms of these contracts must provide for the lease term, annual rent, security deposit, taxes, construction and completion and obligations for repairs. A commercial agreement needs to clearly and unambiguously state the lease term. It must state when the lease begins, when it ends and what the duration of the lease is. The beginning of lease is usually from the same day that the tenant commences to occupy the property. The lease agreement must also define the exact area of land that the landlord is willing to rent. It must also clearly state whether the area to be rented is on the ground floor. If the area in question is on any other floor on a building, the agreement document must also mention the floor. If the landlord has promised to furnish the property in a particular manner before the commencement of the lease, it must also be clearly stated in the lease agreement. These renovations are known as â€Å"Tenant Improvements† and they are usually re quired in a commercial lease for office space. It is imperative that the landlord (the Lessor) must agree to â€Å"reasonable diligence to attempt to complete the Tenant Improvements†. The plan for Tenant Improvements must be certified by an architectural firm and the improvements must be in compliance with the plan. ... If the deficiencies have been properly rectified, the architect must intimate that to the Lessee and provide a certificate. Within 10 days of the certification, the Lessee must occupy the premises. The Lessor and Lessee then must â€Å"execute a memorandum in writing† that specifies the date of occupancy of premises by the Lessee. The annual rent and the amount of security deposit of the lease needs to be determined in advance and be put into writing. Lessee agrees to pay the Lessor a certain amount of monthly rent. It is usually agreed upon to be paid on 1st of each month. An additional charge of a certain amount must be provided for in the terms of agreement which is to be paid if the payment of rent is delayed for more than five days after the first day of any calendar month. The mode of payment of rent must also be provided for. More than one modes of payment can be agreed upon. A cheque that is denied by bank shall not be deemed to have constituted a valid and timely paym ent of rent. Where renting out of an office space is concerned, it must be agreed that the Lessee, its agents, servants, employees, customers, guests, and invitees shall have the exclusive right to park without charge in the parking lot of the premises throughout the lease term. However, the Lessee must also agree that he shall have a limited number of parking spaces and this limit must not be exceeded so that the parking spaces for other tenants of the building are not hindered. Lessor must also agree that he will not attempt to prevent the use of the allotted parking spaces by the Lessee. The Lessor agrees to grant the place in peaceful possession of the Lessee and gets it acknowledged by the Lessee that the place is in an acceptable condition. The Lessor

Human Resouce Management Essay Example | Topics and Well Written Essays - 750 words

Human Resouce Management - Essay Example As a result, employees tend to work hard for their companies boosting low employee turnover rates and high employee satisfaction rates. Fulfillment of the goals of HRM is directly associated with the dedication of employees to the company. If the employees are satisfied due to provision of various employee benefits, they work with full commitment, which not only results in increasing workplace productivity but also ensures generation of high revenues for the company. Low employee turnover is one of the most incredible accomplishments of the HR departments of Genentech and Zappos. â€Å"Companies take a deep interest in their employee turnover rate because it is a costly part of doing business† (Beam). If the employees are satisfied with the company and there is no issue of discrimination, none of the employees will ever want to leave the company. Therefore, employers of all companies need to include employee benefits in their strategic plans in order to fulfill their goals reg arding employee turnover and workplace productivity. Answer: No: 2 Rosenbloom states, â€Å"Employee benefits are a part of employees’ total compensation† (3). ... Money is not always the best motivating factor for the employees. Managers of Genentech and Zappos believe that employees look for benefits along with money. If a company provides employees with normal salaries without any employee benefit, it reduces their interest in working for that company. That is the reason why managers of Genentech and Zappos think towards providing such benefits to their employees, which should be able to retain and motivate the employees. Development of fun loving culture by Zappos and provision of innovative benefits to the employees by Genentech, such as, paid sabbaticals and pet insurance are some of the effective ways to retain and motivate employees. Provision of such benefits increase employee motivation and they feel good to work for their companies. Genentech and Zappos also focus towards ensuring flexibility in job design for the employees. The reason is that development of employee benefits system along with flexible job design not only motivates e mployees to achieve rewards and benefits but also improves morale of the employees. Therefore, we can say that Genentech and Zappos have been successful in motivating employees through providing considerable benefits to the employees. Answer: No: 3 The use of incentives and benefits such as those offered at Genentech and Zappos depend on some key factors. Some of the most important factors, which organizations need to consider while developing incentives and benefits system for their employees, include managerial capability and cost of the benefits. Managers of a company need to be proficient in implementing the rewards and benefits system in an appropriate manner. The most

Urban Sustainabiliy Essay Example | Topics and Well Written Essays - 1500 words

Urban Sustainabiliy - Essay Example Populations grow vertically because families stick together and find space to work and connect with people through wealth. Urban places have a better chance of growing horizontally than those places with poorer services who are growing vertically as each person in the block or family or cross-section investigated has to grow out on their own and wish selfishness for himself while growing up. Defining what an urban citizen needs is what every citizen in the world requires:clean air,natural beauty,less pollution and intoxication of natural resources,peace and quietude and simplicity of living and understanding life and people with less complicated structure of behaviour than that which is by the people of rural or countryside places. 'In the context of sustainable urban development, we discuss the assessment of residential environmental quality and the importance of considering inhabitants' perceptions of natural resources in urban areas. Two series of studies, conducted in Guildford (United Kingdom) and in Rome (Italy), addressed the correspondence, or contrast, between inhabitants' and experts' assessment of urban quality concerning two crucial natural resources: air quality and biodiversity. The Guildford study emphasized the accuracy of the assessment of urban air quality by experts and the public. The Rome study focused on the evaluative criteria employed by scientists and the public in assessing the quality of urban green spaces. The results from both studies shed more, albeit complex, light on the simple conventional wisdom about public versus expert understanding and assessment of environmental quality.' (1) This is true as scientists do not have themselves living under the pressure of the persons in need of the changes and challenges especially that their points of discussions could be more of a story than of a realistic impression of what goes on and what is the fact that results in such concerns and what they mean and what they impose on the people who live such conditions which could be fatal to their lives because there is no escaping it. Scientists speak for the purpose of being heard even though much of them speak to solve,but the point of differences resulting in both words of the inhabitants and experts is the realism of what the inhabitants speak of and in the semi-realism of what the experts speak of. As always,the words of inhabitants shown in expert's words leads to the fact and result that inhabitants speak out of emotions and not realization and realization of facts;that their perspectives of the problems is nave and unemploying reason and facilities to exert more effort t o bring thoughts and understanding of the nature of the problem to the person who really lives such an issue. It is like what a doctor's manner of trying to soothe the pain of a dying patient by telling them that they are going to be alright except that they just have to wait a while 'and see furthermore solutions to solve

Management - Business Simulations Essay Example | Topics and Well Written Essays - 2000 words

Management - Business Simulations - Essay Example The month end bank balance of ?7687 is decent enough to start with and is sufficient to meet the immediate cash needs as compared to the level of business activity. The slightly higher fixed costs of ?826 are indicative of the initial spending in research and networking which is absolutely crucial at this stage to take the business into the future. This is a step in the right direction at this stage. There is a net loss of ?778 and at this stage it is quite expected as the sales effort starts showing results only after some time. Besides, from the Time spent breakup (Appendix 1.2), it seems that the sales effort is greater than the overall marketing effort at this stage, since building cash inflow is a priority at this stage. The idle time shows that here is pressure to build up business and this is translated into sales activity which is more action oriented than the marketing activity. The same trend continues in February and is depicted in March ’13 report. In March’ 13, the bank balance is more or less maintained, indicative of even cash inflows and outflows. However, the expenditure and time on the marketing and product research activities shows an increase. The customer research and competition research is complete and the product redesign based on the research has been completed y this time. The business breaks even in the month of March 13 which is shown in the April 13. The bank balance is maintained and the business shows strong growth signs. The sales are increasing and the bank balance is building up with increase in new orders. The production time is increasing and the idle time is decreasing. The business has made a small profit of ?45. However, this trend is reverted the very next month owing to higher overheads in terms of spending business website. The website though a cost, is the right decision at the right time for the business, since, an online presence with the traditional marketing as well as supply chain management methods was hugely complemented by the same. Since at this time, the number of sales enquiries from traditional marketing methods is too low to sustain the business (Appendix1.3). The sales effort and its effectiveness has been maintained and is evident from the fact that the product stock at the end of the month is zero for a considerable period of time that is from Jan’ 13 to Feb’14. This apart from sales effort is also indicative of good inventory planning. However, by month May 13, due to lack of orders, the production capacity was idle for the most part. The scenario seems to be a result of overemphasis on research and planning at the expense of sales effort in recent past. The management was advised to give some more focus to the core activity of selling. This showed some result in the very next month, when the orders from previous month exceeded an amount of ?2870 and this is where the business starts making profit on a sustainable basis. The production capacity is util ized to a great extent and the idle time minimized. The growth in profit continues and by August, the production targets are being met. The Marketing team was advised to work out the possibilities of a long term business opportunity. The effort showed results in the form of the first customer contract by August 13 (Appendix 1.4). By September

Lift observation Essay Example | Topics and Well Written Essays - 2750 words

Lift observation - Essay Example Modern lift design aims at providing passengers with more aesthetic enjoyment. The need for mobility within buildings has enhanced the design of lifts to create places of character and destination where people can meet. Lifts bring a sense of ease and pleasure among people. Ethnographic inquiry provides a seamless compatibility of ideas between the researcher’s own observations and other users; lift users. The perception of technical design determines how people interacted with lifts (Carroll, 2000). This research will consider how lift design enhances social interaction. As it has been the case, once people got into a lift, colleagues acted like strangers and dropped their voices to a hush. People rushed into corners and stood motionless. Passengers watched as floor numbers counted to their respective floors. These behavior and technological advancements in lift designs has prompted numerous researchers to study the inherent social interactions. The psychology of the architectural environment determines how the presence or absence of specific design features triggered lift habits (Honey, 2003). This study was based on observing lifts in The Shard; a high-rise building where lift usage is a necessity, and London Underground; where socio-cultural dimensions come into play. The quantifiable and unquantifiable dynamics of these spaces assist in gauging user behavior. Observations were divided into two parts to enhance the amount of data collected. In the first stage, I sat outside the lift banks watching people use the lifts while in the second stage; I travelled up and down trying to blend in with other users. Using the lifts brought about a clear understanding of the experience; from the users’ point of view. Population determined the level of social interaction. In London Underground, the population was higher than that in The Shard. The stations have barrier free access to and from street level. In The Shard, a security desk

In the British and American systems of government, power is ultimately Essay

In the British and American systems of government, power is ultimately held by prime minister and president respectively - Essay Example The president for instance can be removed from office for important crimes such as treason or the accepting of bribes. There are differences in the two positions. The president, immediately upon taking office, becomes head of the various armed services, whereas in the United Kingdom these offices are held by others. The president, together with the vice president, make up the executive. The post of deputy prime minister is a very new one in the United Kingdom, coming in only with Margaret Thatcher, yet in recent years there have been several instances of others being in charge on a temporary basis, as when for instance the prime minister is out of the country. The American President takes his power wherever he goes. Powers of the President The History Learning Site ( 2000) cites Bowles as having said ‘ The President of America is not the Government of America.’ The theory, if not always the practice, is that the executive, the judiciary and the elected legislature, all w ork together to achieve what is believed best for America. The President has to be perceived as the strong and decisive leader of his nation, yet at the same time must spend hours in negotiation if he wants to achieve his desired ends. Bowles is also quoted as having said ‘A president cannot lead unless he appreciated the perspectives of other elected politicians and accepts their legitimacy.’ A president has an inner cabinet - his advisors on various aspects. In theory these can come from any political background , so that only the president and vice president may share a party, because those felt to be the best at particular tasks are chosen, whatever their affiliations. There are some things however that the president is able to do by himself, although of course even here he may ask for advice. These areas are to do with appointments to various high offices –ambassadors, federal judges and the justices in the Supreme Court, as well the members of his cabinet. Except in cases of impeachment he also has the right to grant reprieves and pardons. He can recommend certain legislation, and also has the power to veto bills presented. This power is again not absolute. If two thirds or more of Congress disagree with his decision things go no further. He can make treaties with other countries, but again he requires a majority of two thirds of Congress to agree. Powers of the Prime Minister Being elected as head of his party and then winning a general election is not the end of things for a British Prime Minister. He must then be formally invited to form a government by the reigning monarch. After that he can stay as long as he wishes, or is able to maintain the confidence of his party and the electorate. In theory that could be for the rest of his life, but in practice elections intervene and people make new choices. Sir Robert Walpole was head of government for more than 20 years. In 1746 the Earl of Bath was asked to form a government, but prove d unable to get others to agree to serve with him. He lasted only 2 days. The greatest limit upon any prime minister’s power is his own political party. Without the support of all elected members his position becomes a weak one

Dataming testing Essay Example | Topics and Well Written Essays - 4000 words

Dataming testing - Essay Example Additionally, the preponderance of individuals with type 1 diabetes greatly outweighs those with type 2. Fig. 7.1 Gender Figure 7.2 is the histogram that examines patients with both hypertension and diabetes. Of the total sample population the chart indicates that 176 patients had hypertension and a form of diabetes. Conversely, there were 185 patients who had diabetes with no sign of hypertension. Ultimately, close to half of the patients sampled had both diabetes and hypertension. Fig. 7.2 Patients with Hypertension Figure 7.3 is the Fasting Blood Sugar test (FBS). The majority of the patients tested fell between the 100-280 mg/dl range. Still, a number of patients had fell above the 300 mg/dl range, so this is not uncommon. Fig. 7.3 Fasting Blood Sugar Test for the Patient Figure 7.4 depicts the results for the Blood Sugar tests (HbA1c) that were administered. Of the approximately 140 patients that were administered this test, the average HbA1c score for individuals having diabete s was 5-9%. Additionally, the chart indicates that for patients with type 1 diabetes there was a significantly higher propensity of HbA1c, with an average rate of 10-13%. Fig. 7.4 Average Blood Sugar Test for the Patient The chart depicted in Figure 7.5 demonstrates the tests with patients taking metformin. As demonstrated, the test consists of 188 patients who took this medicine and 167 patients who did not take it. The results demonstrate that of the patients that took metformin most are diabetic type 2 patients. Only a small number of diabetic type 1 patients take metformin. Fig. 7.5 Patients Taking Metformin Medication Figure 7.6 considers the patients with diabetes in relation to their age. A notable division occurs here. Namely, patients between 30-70 years old have the highest rate of type 2 diabetes. This shifts with individuals age 5-18, as type 1 diabetes dominates this age bracket. Fig. 7.6 Age of the Patients Figure 7.7 is a diagram depiction of patients with hyperlipide mia. The results indicate that 183 patients have hyperlipidemia, the majority of them also having type 2 diabetes. For type 1 diabetes patients, the majority do not have hyperlipidemia. Fig. 7.7 Patients With Hyperlipidemia Figure 7.8 examines the relation between the patients’ with diabetes and their weight. The chart seems to demonstrate a correlation between the two inputs, as patients between the 70-112 kg range experience the highest levels of type 2 diabetes. Fig. 7.8 Weight of the Patients in Kg Figure 7.9 considers patients with diabetes who also are taking insulin medication. Of the 100 patients taking insulin medication the majority of individuals with type 1 diabetes take it. Conversely, most individuals with type 2 diabetes do not take it. Fig. 7.9 Patients Taking Insulin Medication Figure 7.10 considers patients with an abnormal heart condition because of vascular problems unrelated to diabetes. The diagram demonstrates that most of the patients with diabetes hav e a normal heart condition, but there is a small number of patients suffering from heart disease. Fig. 7.10 Patient Heart Condition Figure 7.11 examines the patients who took glidazide as medication. 92 patients out of the 257 took glidazide. All of these patients had type 2 diabetes. Fig. 7.11 Patients Taking Glidazide After the above histograms were established and analyzed, a comparative analysis implementing

Business information system Essay Example | Topics and Well Written Essays - 1500 words - 2

Business information system - Essay Example There are many factors that are contributing to the increasing vulnerability of organizational information assets. Given below are some of the important factors that play significant role in making the organizational assets vulnerable (Prentice Hall, 2010; KingCounty, 2009; Turban et al., 2005): Internet Vulnerabilities The research has shown that open or public networks such as the Internet are more vulnerable than internal networks for the reason that they are virtually open to everyone. Hence, when the Internet turns out to be an important part of the business network, and the most of the business tasks are supported by this network then the organization’s information arrangements also become open for attacks from outsiders. Wireless Security Challenges Wireless networks based on radio technology are also vulnerable to security penetration for the reason that radio frequency bands are easy to scan and detect for the attackers. These days Wi-Fi technology is extensively avai lable and offering great deal of support for connectivity and information sharing. However, these networks always remain the major target of attackers which can cause problems for the organizations and attacks against information system. Malicious Software: Viruses, Worms, Trojan Horses, and Spyware A malicious software program can cause a variety of threats for example worms, computer viruses and Trojan horses. These threats can cause massive destruction to organizations’ resources in the forms of theft of organizational information, personal data theft and huge danger to corporate and personal information. Hackers and Cybervandalism A hacker is a person who aims to obtain illegal access to an information system. However, in the hacking community, the term cracker is normally employed to demonstrate a hacker with criminal objectives, though in the public press, the terms cracker and hacker are employed interchangeably. These hackers can get access to an organization’s network and launch a variety of security attacks such as: (Prentice Hall, 2010; KingCounty, 2009; Turban et al., 2005): Spoofing and sniffing Denial of service attacks Identity theft Question 2: Contrast unintentional and deliberate threats to an information resource. Provide two (2) examples of both. Information systems are vulnerable and in danger due to a number of possible threats and hazards. However, there are two major types of threats known as deliberate threats and unintentional threats. Given below are acts with no malicious determination and with malicious determination (Rainer, 2009; Safari Books Online, 2013; E.Whitman, 2004): Unintentional Threats Device Loss Human errors or mistakes are the major causes of un-intentional threats that can happen due to human error or due to negligence of human. For example, a person who has lost his device, mobile or laptop which be misused by an attacker for carrying out illegal activities. Temporary Hires Temporary hires are also ma jor type of unintentional threats. In this scenario, temporary workers including contract labor, janitors, consultants, and guards can also create serious security loss for the organizations. Contract labor, for example temporary hires, can be ignored in information security policy. Though, these staff members can unintentionally access the

Communicators of the Sea Essay Example for Free

Communicators of the Sea Essay

Historical Relationship Between Art and Music

Historical Relationship Between Art and Music Referring to key examples, identify and discuss the historical relationship between art and popular music, using key examples to support your argument. Some people would think that art and popular music have no combined points of reference, and that each is a completely separate unit, with each subject trying to achieve several different goals. However my intentions are to prove that this is not true. I believe that they have linked many times in the past particularly during the creation of the Dada movement in 1916. Hugo Ball composed sound poems and performed them at Cabaret Voltaire, a club he opened that consisted of an artists club, exhibition room, pub and theatre all rolled into one, it showed several styles of artistic performances. He believed others like him were interested not only in enjoying their independence but also giving proof of it. On July 23rd 1916 Hugo Ball recited his sound poem Karawane. It contained seventeen lines of text, which have no meaning but was successful for the resonance of the tone and in the manner it was performed. The visual version is also congratulated for the several styles of font used to decipher different emotions. For example, a sort of undulatory motion is produced by the alternative use of italics and roman type, while the left column produces a soothing effect. Cabaret Voltaire and founder Hugo Ball were the main creators of the Dada movement in Zurich 1917. The Dada movement is believed to be the co-founder of contemporary art. Contemporary art a s we know it could not have come into existence without Dada. It was breaking down and merging the differences between the several art forms as a response to World War 1. Richard Huelsenbeck was a close friend of Hugo Ball, who also recited on the 30th March at Cabaret Voltaire and was also associated with the Dada movement. Although he believed Dada needed to be stronger and more political and in 1919 set up his own club, Club Dada in Berlin. He was regarded as arrogant, and thats how he looks. His nostrils vibrate, his eyebrows are arched, and was not liked by the public. His work and several of the Club Dada creators were more political than the other Dada-groups they released convincing magazines to illustrate their beliefs through photomontages and manifestos. His works include The end of the world and Don Inigo de Loyola, which were more obviously political than that of Hugo Ball. Louis Armstrong was one of the first jazz musicians to experiment with his vocal techniques. By improvising the original composed music, and creating sound on the spot, he created skat singing. He is still well known as one of the greatest jazz musicians today for his spontaneity, and amazingly quick, inventive musical mind. I believe this is a good example of the kind of performances that would be shown at the Cabaret Voltaire, although he did not. I believe it is possible that, through horizontal and vertical lines constructed with awareness, but not with calculation, led by high intuition, and brought to harmony and rhythm, these basic forms of beauty, supplemented if necessary by other direct lines or curves, can become a work of art, as strong as it is true. Piet Mondrian Piet Mondrian was influenced by music, particularly the style that surrounded him whilst in New York. In particular his piece Victory Boogie Woogie 1942 44 (which was not named by him but based on his original piece Broadway Boogie Woogie 1942-43) was based on a title for a song and type of dance, which was extremely popular at the time and still heard of today. Among his collection of records, was the album Boogie Woogie from 1942, the inspiration behind two of his most famous works. Set in the Jazz period the piece represented the short melody lines that were interrupted by open rhythmical patterns as seen and heard in Jazz music. He would use plastic and bits of paper to illustrate and create new rhythms across the canvas, and create a busy, fast work to reflect the upbeat music and the bustling environment of New York. Jazz music played a big role in Mondrians work both as jazz music and modern art depend a great deal on improvisation. Like jazz where an artist will never play the same thing twice, Mondrian also would rely on instinct and natural ability to present his work. It presents a sense of randomness and how the artist was feeling at that particular time, which is found throughout many other artist movements. Jakob van Domselaer was a composer of the works Proeven van Stijlkunst (Experiments in Artistic Style) and a close friend of Mondrian. His work was inspired by Mondrian and the art movement De Stijl, which represented using simplicity, limited colours and using horizontal and vertical lines. Walter Gropius was the founder of Bauhaus school of art and design in Germany 1919. It revolutionised the art industry by replacing the traditional pupil-teacher relationship with the idea of a community of artists working together. It combined artists from all creative industries and allowed people to be creative and meet creative people. It was very influential and housed several well known artists including Kandinsky and Klee. Walter Gropius was a lover of art and music, therefore inspired art students to start musical groups and blend with people from other creative industries, which was important for the progression of art to inspire new, creative ideas from both sides. The Bauhaus Jazz Band in 1927 played the Charleston on the Bauhaus Roof which originally inspired this link of art and music, and was the main reason for starting the trend of artists creating bands. Bauhaus, Dancing on the Roof focuses only on that exhilarating moment when utopian dreams, uncertain ties, and fresh visions. The sixties was a massive decade for both art and music, with great pieces of work being produced from both the fine arts and the performance arts. The Beatles are one of the main well known music group that connect art to music, as most of the members were artists before creating the band. Also Stuart Sutcliffe, a previous bass player for the Beatles, dropped out and started doing art. (Stuart Sutcliffe Untitled 1961-62). When the Beatles first began 50% of the fans that would see them perform were art students including Astrid Kirchherr a photographer that would take pictures of them. George: Astrid was the one, really, who influenced our image more than anybody. She made us look good. She was the one who had the lather kecks and the Beatles haircut.. Sam Walsh used to jokingly call themselves jazz artists rather than pop, believing that their art owed more to the free-form improvisation of American artists During this time, music and art formed together like never before, with bot h artists and musician practising together. Adrian Henri statement : to the cataclysmic effect of the Beatles and Merseybeat in general; yet the visual arts (and poetry) benefited from the sheer headiness, the excitement of the time, as well as the attention generated by the music. In the late 1960s the musicians, clubs and pubs surrounded the school of art, creating a bond between the two creative areas. With John Lennon and Stuart Sutcliffe being pupils of the art school, they were exposed to the musical talent surrounding them. The Beatles revolver album was released on the 5th of august 1966 which reached number 1 in both the UK and the USA. The cover illustration was created by German-born bassist and artist Klaus Voormann. The image is mainly a simplistic line drawing but also using very recognisable aspects of each member of the band. It is also done in a collage style where a lot of images are placed in between them which consist of more detailed images of characters taken by Robert Whitaker. It was stated to be a part of the phycodellic era, you also perceive this sense from the other albums that they have done in the sixties, by the way in which the surrealist art comes through. The infamous butcher cover Yesterday and Today has now become famous in the album art subject matter because of how controversial it was and has been called the Beatles album of all time. Shot by photographer Robert Whitaker, (who had also done other covers with the Beatles), the image shows the band sat down smiling while covered in decapitated baby dolls and pieces of meat while the four of them are dressed in butchers aprons this image proved to be too strong and was quickly banned, some DJs even refused to play it. Which, if you compare it to some of the art of today, it would be seen as acceptable, as freedom to a subject matter is an asset to the modern art world. Not only was their album art banned, but also some of their music, on the grounds that it could encourage a permissive attitude towards drugs, which also connects to the era, in which drug taking was popular. Their other album covers consisted of many modern artists including Robert Fraser, Robert Blake and Peter Blak e. Although Peter Blake, may be well known for his cover St Pepper, in fact his wife Jan Howarth created this design with him. John Lennon enjoyed experimentation with sound along with artist and wife Yoko Ono. They would create tape loops and use the technique Musique Concrete, a technology that allowed tapes to be cut and edited. Musique Concrete is defined as a musiclike art form composed directly on magnetic tape by the electronic manipulation, distortion, or transformation of natural sounds and noises, as of musical instruments or rain. The Piece Revolution 9 appeared on The White Album released in 1968. This was made by layering tape loops over the basic rhythm of revolution. Lennon called it The music of the future and whilst it was loved by many people who appreciated and understood sound art, it was also hated, particularly by producer George Martin who tried to keep it off the album. Paul McCartney, a member of the Beatles and Yoko Ono opened an art gallery, in the basement off a bookstore. Indica was opened during the late 1960s. It was where John Lennon met Yoko Ono on Novermber 9, 1966. During the exhibit His famous retort : an imaginary five shillings to hammer in the imaginary nail made them inseparable. This was the start of the experimentation with sound and art. In 1968 they released an album with this inspirational sound Unfinished Music No1: Two Virgins which was also famous for its controversial cover, that was slated and not appreciated by the public. Exploding Plastic Inevitable consisted of organised sound and lighting events constructed by Andy Warhol in 1966. His favourite group Velvet Underground performed there along with the showings of Warhols films and Nico. Victor Bockris said January to April 1966 was the golden period for the Velvet Underground and Andy Warhol. After the psychiatrists convention, Warhol shot a scintillating film of the band rehearsing at the Factory, symphony of sound, which remains the single best visual record of the Velvet Underground. They also recorded sound tracks for two of Warhols best movies shot at the beginning of the year, hedy and more milk yvette.. Andy Warhol was inspired by the times music particularly this group and filmed them. Using these as inspiration he created many current day artworks, which celebrated the popular culture, exactly what the musical groups wanted to achieve. Exploding Plastic Inevitable was said to be very heavy on the emotions, as it was loud and bright with stro be lights, colours exploding and the light-show could be blinding at times. Another example of a more modern link is the punk scene, which was said to have two causes. The first being a response to the environment and current trends, the second coming out of art schools. Malcolm Mclaren stated that he was responsible for starting the Punk movement in Britain and was also heavily involved in forming The Sex Pistols, and became their manager. The Sex Pistols were the first Punk band in Britain and formed the punk scene, along with the fashion and political values that came with it. Malcolm McLaren was also a fashion designer and an art student in the sixties; it was this that led the movement in its uniqueness of clothing and style. After The Sex Pistols and the punk scene, he became more involved in his burgeoning art career; he wants to be taken more seriously as an artist and calls them musical paintings. Malcolm McLarens video piece Shallow has been given great credit to his anticipation of becoming a more recognised artist. His work on erotica and music was becoming more popular with the public. Since I was an art student in the Sixties Ive been interested in the foreplay in sex films, Im not sure why intrigued by the blandness, the stupidity and the kind of innocence of these people who couldnt act but who would be paid to have sex. Sex films became more hardcore, and lost a lot of charm in the Seventies. Somehow this was allied to my feelings about a disappearing world of pop culture the images were how I imagined pop music to look. The feeling was the same as when I was 13 imagining a world of sex you might imagine or never possibly have, and listening to pop music. This is a perfect example of the link between art and music, I feel at this time it was stronger than it has ever been, with artists considering music as a topic for their work, or even having or creating music to enhance their art. Jamie Reid created the cover album art for The Sex Pistols; he was involved with the situationist movement and a strong believer in anarchy. The situationists ideas were very hard to accumulate, as there were several ideas about the movement, Situationists focus on their cultural ideas, particularly in relation to detournement and the development of punk. They believed in looking at real life, instead of false truths. Jamie Reids famous cover God Save The Queen was known as one of the single most iconic image of the punk-era. His work involves the cutting from newspapers and combining graphical work that has and always will be recognized for it anarchistic feel. It was loved and hated at the time and some of his work has been banned in the past. Brian Eno studied at art school, but became involved with the glam rock group Roxy Music, even though he had no musical background or playing experience. After leaving this band he became more experimental with his music creation, taking the idea of chance with lyrics and sounds, he started to see his work as art not music and called it visual art. He used sound in an abstract expressionist way, in the same way as Jackson Pollock. His work 77 Million Paintings was created in 2007, and is a constantly evolving sound and imagescape which continues his exploration into light as an artists medium and the aesthetic possibilities of generative software. This involves the combination of image and sound working together. He is known as one of the most important people to combine the art and music worlds, and is still continuing to do so today. In a more modern perspective, an example of the link between music and art is the group, Franz Ferdinand. Having come from an artistic background (Hardy graduated from Glasgow School Of Art, and Thompson also posed as a life model there) they would rehearse in The Chauteau, they were known to have rave-like events incorporating music and art. In their recent career they have been known to have artists and art references throughout their careers, including music video Do You Wanna, where several artists or art works are within the gallery where it is set. Although I feel this was to attempt to put them in an art music group, they wanted the public to know they were previously from an art background, making them more popular. Another example is their album art covers, which are obviously inspired by the pop art movement, as the techniques and overall appeal is similar. Graffiti is part of the hip hop culture that has been split up into various different art forms such as Graffiti, Writing, Dj-ing, MC-ing and break dancing. There is a very close culture between graffiti art and some of the big hip hop artists such as Dr Dre, 50 Cent and The Game Grafitti art has changed dramatically since its origins, with the likes of Bansky, a famous British artist. Not much is known because he hides his identity, (WHY) but he had start his rise to fame during the great Bristol aerosol boom of the late 1980s most of his art are cover such topics such as ethics culture and politics, Banksy successfully combines graffiti writing and a stencilling technique that stands out from all of the others. Graffiti has also been used on a wide range of album covers which shows a direct link from art to music such as Blur, a Britpop band who have used more than one of Banksys piece of artwork. This album Think Tank, has been said that it inspired some of Blurs music. They have also used Banksy artwork on another cover, Crazy Beat, which was taken from one of Banskys original artworks. This graffiti was destroyed soon after Blur used it for their single cover, the council simply painted over it. The image was on the side of a privately-owned building in Londons Stoke Newington, featuring a cartoon version of the Royal Family waving from the top of a balcony, the council thought that they were cleaning the building, branding that the graffiti was unclean. The image was on the side of the building for 8 years before they decided to do anything about it. I find the history of art with combined music to be fascinating. My favourite example being Charleston on the Bauhaus Roof because i feel the teachers influenced the students to start these art bands, if not for this i feel art would have not developed as successfully as it did. I also think that art and music have a strong bond because they are both very personal subjects, in that one person may like the work and another wont. Both industries have high demands to get out to the public and show their work, and hope that people appreciate what they have created. I feel the use of experimenting and combining all of the creative fields is expanding and artists and musicians will continue to use the creative minds of each other in both fields in the future.

Liquidity Gap Analysis And Schedule Finance Essay

Liquidity Gap Analysis And Schedule Finance Essay The main technique used to measure liquidity position is liquidity gap analysis. Liquidity gaps are differences between assets and liabilities at present time and in the future (Thomas Barnes 15 Jan 2010). Gaps generate liquidity risk; deficits will require funding and excess will result in interest rate risk. Gaps can either be static or dynamic. Static gaps will consider all assets and liabilities which are actually present in the balance sheet. In such case the analysis shows a reduction of the assets and liabilities as they mature. Dynamic gaps are simply the consideration of actual plus projected inflows and outflows; these depend on business uncertainties (Hampel et al 1999). A liquidity gap schedule provides an analytical framework for measuring future funding needs by comparing the amount of assets and liabilities maturing over specific time intervals (Thomas Barnes 15 Jan 2010). Table 3 presents a sample liquidity gap schedule. Table 3: Liquidity gap schedule Less than 10 days Over 10 days but less than 3 months Over 3 months but less 6 months Over 6 months less than one year 1 to 5 years Over 5 years and capital Total Assets 10 10 10 5 65 0 100 Liabilities and Equity 50 30 15 0 0 5 100 Net outflow(Assets minus Liabilities) (40) (20) (5) 5 65 (5) 0 Cumulative net outflow (40) (60) (65) (60) 5 0 0 Source: Office of Thrift Supervision Jan 15 (2010) Sec 530 page 29 In the liquidity gap schedule, the company ranges assets and liabilities into different time intervals taking into account their remaining time to maturity. Generally, the company ranges assets and liabilities according to their effective maturities rather than their contractual maturities. For instance, a company will treat non maturity deposits as long-term liabilities rather than short-term liabilities. Negative gapping at the shorter end of the schedule increases the risk that the company will be unable to rollover maturing liabilities as they come due. While such a position is in favour to liquidity, it tends to enhance profitability over the long-term, provided the company keeps the gaps within manageable limit. However, a limitation of the liquidity gap schedule is that it does not capture projected balance sheet changes such as future loan and deposit growth. While it is important to understand the liquidity of a companys existing balance sheet, it is also essential to forecast the growth of key balance sheet components, such as deposits and loans, over time. (Thomas Barnes 15 Jan 2010) 2.8.3 Risk Management Liquidity risk management should be vigorous with analysis and metrics that reflects a companys liquidity position and assess its options under different market conditions, such as economic stress, crisis, and collapse (Thomas Barnes 15 Jan 2010). Liquidity risk needs to be managed once it has been identified and measured. Risk is more integral to business for insurance that it is perhaps for any other industry (Capgemini 2006). Long-run profitability will suffer when companies hold too much low-earning liquidity assets. Holding too little liquidity can lead to severe financial problems. Managing liquidity risk is not only to eliminate the risk but rather find the equilibrium between return and risk (Decker, A, P 2000). Selling some assets rapidly seems to be an easy solution, but still insurers will have to face forced sales risk. For some insurers, their projects to improve risk management evolved into the establishment or expansion of their risk management department (Henry Essert march 2010). The aim in managing liquidity is to minimize cost. The cheapest approach is to try to restructure the balance sheet in such a way to reduce gap and that the appropriate level of risk is reached (Decker, A, P 2000). 2.8.3.1 Metrics used for liquidity risk management Most financial firms such as insurance companies use various metrics to control their liquidity risk. This consists of three basic approaches which can be categorized as: the liquid assets approach, the cash flow approach, and a combination of both. (Sharma paul et al 2006) Under the liquid assets approach, the company needs to maintain liquid instruments on their balance sheet which can be consulted whenever required. (Ratios are the relevant metrics in this approach) Under the cash flow matching approach, the company tries to match cash outflows against contractual cash inflows across a range of near-term maturity buckets. This approach is mostly used by insurance companies. The mixed approach is a combination of both cash flow approach and the liquid assets approach. The company attempts to match cash outflows each time bucket against a combination of contractual cash inflows. Insurance companies place more emphasis on the cash flow matching approach. When gaps in maturity buckets are unfavorable, insurance companies would utilize the mixed approach to help ensure that they will be able to meet their obligations to provide cash to counterparties. (Sharma et al 2006) 2.8.3.2 Assets Liability Management Assets Liability Management (ALM) can be termed as a risk management technique designed to earn an adequate return while maintaining a reasonable surplus of assets beyond liabilities. It considers interest rates, earning power and degree of willingness to take on debt and hence is also known as Surplus Management (Sayonton Roy 2010). Management of liquidity consists of raising fund and invests where excess of fund is available. The managers will buy, hold and sell assets and liabilities in order to maintain a predetermined level of liquidity (Matti Peltonen 2010). This technique forms part of the Asset liability Management and thus facilitates in Funding, Investing and Hedging issues to achieve predetermined strike between risk and return. The objective is to increase profitability, while monitoring risk, as well as complying with the constraints of companies (Arzu Tektas et al 2005). 2. 9 Study in the same field 2.9.1 Estimation of Liquidity Risk Patrick Tobin and Alan Brown 2003 designed a method to model liquidity using a bottom-up approach. They calculated average size of withdrawals as, Yt=ZtNt Where, Zt is the total withdrawals for time t Nt is the number of withdrawals for time t A period of 35 weeks was considered The average values were, N=t=1TNt, Y=t=1TYt, Z=t=1TZt Then they rescaled data as follows, Mt=NtN , Ct=YtY , Bt=ZtZ Where, Mt is the mob, Ct is the clip, Bt is the bag The basic model was found and applied to product p BLt=p=1KWpBpt, Where, BLt= Business Line at time t Bpt= Bag for each product p at time t Wp= Weight for product p This gives rise to a weekly factor. The dispersion of this weekly factor was the subject of further analysis. This model tries to estimate the weekly cash outflow. 2.9.2 Measuring liquidity risk in Insurance companies In an article namely Measuring Liquidity risk in Banking Management Framework Giampaolo Gabbi (2000, p.44-58) proposed a model to implement liquidity risk within the risk management mostly used, the Value at Risk (VaR). This model also applies for the Insurance sectors since they have similar operations such as fixed deposits, loan facilities and other banking activities. Value at Risk is the largest likely lost from market risk that an asset or portfolio will suffer over a time interval and with a degree of certainty selected by the decision maker Titus Lewis, 1997. In a general circumstance five factors are considered before calculating VaR, this are: volatility of prices, interest and exchange rates probability distribution of likely return time horizon confidence interval correlation among different positions Once these elements are known, risk manager can calculate VaR in the worst case scenario for the single position (pos) VaR pos= pos.n. Ã‚ ³Ã¢â€š ¬Ã‚  t where,  Ã‚ ³Ã¢â€š ¬Ã‚  t is volatility for frequency t n is the scaling factor needed to obtain the desired confidence level under the assumption of a normal distribution of market returns Modeling liquidity in a VaR framework is given by: VaR= n { Ã‚ ³Ã‚ Ã¢â‚¬ ¦Ã‚ Ã¢â‚¬ ºÃ‚ Ã¢â‚¬Å¾Ã¢â€š ¬Ã‚ ¨ L)  Ã‚ 1â‚ ¬Ã‚ ¯2 + Æ’( Ã‚ ­  Ã‚ ³Ã¢â€š ¬Ã‚ ²Ã¢â€š ¬Ã‚  Ã¢â€š ¬Ã‚ ©Ã¢â€š ¬Ã‚  Ã†â€™.  Ã‚ ³Ã‚ Ã¢â‚¬ ºÃ‚ Ã¢â‚¬Å¾Ã¢â€š ¬Ã‚ ¨ Lâ‚ ¬Ã‚ ©Ã‚ Ã‚  +  Ã‚ ³Ã‚ Ã¢â‚¬ º log c â‚ ¬Ã‚ ¨Lâ‚ ¬Ã‚ ©Ã‚ Ã‚ Ã‚ Ã‚ ½ Where n depends on the underlying distribution,  Ã¢â‚¬ ¦Ã‚ Ã¢â‚¬ ºÃ‚ Ã¢â‚¬Å¾Ã¢â€š ¬Ã‚ ¨ L)  Ã‚  is the expected execution log in selling the L shares,  Ã‚ ­ is the mean quality discount,  Ã‚ ³Ã¢â€š ¬Ã‚  is the volatility of the discount and c â‚ ¬Ã‚ ¨Lâ‚ ¬Ã‚ © is the quantity discount Unfortunately all these information are difficult to access or calculate, so indicators were used to simplify the equation, leading to the following outcome COL = 12  Ã¢â‚¬ º Pt â‚ ¬Ã‚ ¨S +  Ã‚ ¡Ã‚ Ã‚ ³Ã¢â€š ¬Ã‚  spreadâ‚ ¬Ã‚ ©Ã‚ Ã‚  Where COL is the cost of liquidity, Pt is todays mid price for the assets or instrument, S is the average relative defined as  Ã¢â‚¬ ºbid ask Ã‚ Ã¢â€š ¬Ã‚ ¯ mid price,  Ã‚ ¡ is the scaling factor and  Ã‚ ³Ã¢â€š ¬Ã‚  spread is the volatility of relative spread. 2.10 Overview of liquidity Risk Management in Mauritius 2.10.1 Liquidity in the Insurance Act 2005 Insurance Companies in Mauritius are governed by the Insurance act 2005 which is regulated by the Financial Services Commission (FSC). The FSC has the responsibility to ensure that Insurance companies are taking appropriate measures to manage all the risks to protect the interest of the clients and the public at large. The consequences of liquidity risk on a countrys financial system make its management become a very important issue. Section 23 of the Insurance Act 2005 considers liquidity and solvency issues. It also lists the different assets which are to be considered as liquid assets, for example; cash balances, fixed interest, equities. According to Section 24 (1)(a) of the insurance act an insurer shall in respect of its insurance business at all times have and maintain its level of liquidity as may be prescribed. It imposes Insurance to maintain an adequate and appropriate form of liquidity. At any time the Financial services Commission may order an Insurer to increase its level of liquidity, depending on risks in the Insurance operation, maturing liabilities, quality of assets and other financial resources. Failure to comply with the above will result in that Insurance not been permitted to assume any new risks of any kind, or underwrite or renew any insurance policy; unless it increases its level of liquidity to the indicated amount. 2.10.2 Guideline on Liquidity The Financial Services Commission has issued a Guideline on Liquidity in February 2008. This Guide is issued under section7 (1) (a) of the Financial Services Act 2007 and Section 130 of the Insurance Act 2005. The Guideline on Liquidity gives an exact indication of what the Financial Services Commission is expecting from the Insurers in their management of liquidity. In order to help insurance companies to foster professional standards the Commission expects all insurers to have regard to these Guidelines. These guidelines also require insurers to provide reports on its liquidity position every three months for the first year and at the end of each year afterwards. Guideline on liquidity also concerns contingency planning. A good contingency plan should be realistic, unambiguous, designed to be flexible and should indicate the responsibility and priority of the Insurance and their management team. This will enable an insurance company to withstand a liquidity crisis. Stress test is another aspect of the Guidelines on liquidity. The stress test requirement is the minimum amount of assets that an insurer should hold in excess of its liabilities. The stress test requirement is important in managing liquidity risk. Special attention should be given to assets, liabilities and off balance sheet, consider maturity of policies and their future prospects. The guideline is not intended to be prescriptive on how insurance should measure and control its funding requirement, but however, certain approaches in the theoretical review are recommended. Finally an Insurance company should manage access to fund and consider its diversification. Concentrating in few types of assets, liabilities or market may be risky. Therefore, internal limits on maximum fund engage in one type of activity should be set. The guideline also encourage Insurance to look for new arrangement and developing financial assets and market to have access to fund while reducing liquidity risk. 2.10.3 Solvency II consideration of liquidity Since the introduction of the Solvency I in the early 1970s, there has been continuous development of sophisticated risk management systems leading to its replacement by Solvency II. Solvency II has introduced a wide framework for risk management which helps in implementing procedures to identify, measure, and manage levels of risk. It is the most recent set of regulatory requirements for insurance companies and is scheduled to start on 1 January 2013. New funding sources and liquidity management techniques have been brought forward by financial and technological advances. Therefore, Insurance companies are expected to understand the liquidity levels and the behavior of cash flows in different circumstances and thus enabling them to react accordingly. Solvency II identifies the principles for a proper liquidity management. Those principles fall under the following main headings; reducing the risk that an insurer cannot meet its claims; To reduce the losses encountered by policyholders ; To enable supervisors to act spontaneously if capital goes below the level required; Increase confidence in the financial stability of insurance sector. The Solvency II framework has three major parts for the insurance sector: Quantitative requirements. Governance and risk management requirements. Disclosure and transparency requirements The Guideline on Liquidity issued by the Financial Services Commission reflects mostly the following principles; to develop a structure for the management of liquidity, to measure and monitor net funding requirements, to manage market access, contingency planning, and internal controls for liquidity risk management in improving Liquidity.

teenage wasteland Essay -- essays research papers

The Teenage Wasteland, why was it so good? Growing up in the recent generations is very challenging. Children at such young ages, even younger than teens have been faced with such perilous decisions. It is especially hard for teenagers to find acceptance at this point in their lives. Here is an instance that is so common in this day and age, yet this particular case is only fiction. A teenage boy named Donny has been going through a few changes in his appearance. His parents, Matt and Daisy, are somewhat disturbed yet they don’t say much to him. Then one day Daisy gets a call from Donny’s school administrator and tells her that his grades are attitude are dropping scale. He eventually gets kicked out of private school and does poorly in public school. Daisy was concerned and decided to take advice from the school and psychologist to get help from a highly reputable tutor, Calvin Applebee. Instead of Donny’s parents talking to their son they hire Cal, which tries to handle Donny’s lack of emotion an d performance. Donny’s performance didn’t change with Cal, at least in the school aspect, but Cal kept reassuring Daisy and Matt that it would change and to give it more time. In result, Donny runs away after being sent home because he was expelled for being caught with drugs in his locker and months later he still has not returned home. Who is to blame? Should Daisy and Matt been more disciplined on Donny? Well, in Anne Tyler’s short story the Teenage Wasteland this is just what happened. I really enjoyed this story because I feel it really focused on an issue that is so common in our generation. It was easy to read and was straight to the point. I especially enjoyed the role of the dumbfounded parents, Cal’s cynical character, and in result of the all their foolishness, the action Donny resulted in taking. It was really funny to me to see how Donny’s parents could be so oblivious to all that was happening to Donny. They were very good parents but didn’t but enough discipline on him. They instead let the school, the psychologist, and especially the Cal run the life of Donny. Daisy and Matt should never have given so much control to everyone else over their own son. Daisy tried helping Donny in school, even having to start supper late at times and spending less time around her other daughter. It wasn’t always pleasant because when Matt would come home she would... ...r’s story may not have been happy but it ended as more of a realistic matter. Maybe she decided to conclude the book with the disappearance of Donny to show some parents how important is truly is to communicate and love their children unless they want the same thing to happened to their children that Donny experienced. I really enjoyed â€Å"Teenage Wasteland† because it displayed a topical issue some parents have actually faced in their lifetime. It was exceptional the way the story was wrapped up. Not that I don’t enjoy happy endings but I am more interested in reading stories that may be written in fiction but that I can actually relate to and imagine it happening. Anne Tyler displayed this real life situation through a fiction tale that has such valuable lessons to be learned. Donny’s just a teenager who was going through a rough time in his life and just wanted to be loved and to love himself. It isn’t always happy the way children turn out but parents do make the difference and communication is a key to success. I feel Tyler displayed this quite clear in her short story so everyone could learn a lesson worth learning to prevent this astounding situation from happening to others.

The Scarlet Letter Work Journal :: essays research papers

Whatever the people of Boston take pleasure in seems to interpret as sin. If heaven is supposed to be a placed of paradise, isn’t it pointless to say that all that brings pleasure and happiness is sin? It’s almost like they’re making whatever part of heaven given to them in life into a living hell I think the people of Boston hypocrites because they are trying to build a place of the bible and a place of peace and happiness, yet they are unwelcome to change, narrow minded, and hard and judgmental towards other people I think these people are also fearful of their own emotion because everything because they wear is drab clothing that covers every inch of their body and they act very insensitive, but kind to those who had not done wrong These people are also very frightened of nature and the aboriginal that surround them. I think all the fears that these people have reflect the fear that is inside themselves because they are insecure and they know that they sin and they are so god fearing that they think they will not be forgiven so everything around them symbolizes the demons within themselves. That explains why they act so hard towards it because subconsciously, they think that they are showing their personal strength If God truly exists, does he not want a person to take pleasure of their gifts in life and take pleasure in the gift of life itself? I think Hester Prynne should take more pride and have more faith in herself. Everyone views her as a sinner simply because she got pregnant with someone other than her husband. I know that cheating on your husband is wrong, but her husband was gone and she did not know if he was dead or alive. She was simply doing what a sensible person would do and that was move on I really like Hester Prynne’s character because although she is insecure, she stands out from other people in the novel. The Boston citizens in the novel think she stands out in a bad way, but I think it’s in a good way. She is not afraid to give into her own passion I really like Hester Prynne’s daughter, Pearl, because she is daring and she challenges the people’s beliefs with her own although she is very young. Her mother is always telling her, â€Å"Hush, hush,† because she does not want Pearl to get into trouble with people but I think it’s a wonderful thing that she develops her own opinions.

Philistinism In England And America :: essays research papers

Comments on Matthew Arnold’s "Philistinism in England and America" In his essay, "Philistinism in England and America," Matthew Arnold examines the ancient ideas of Plato in the context of a twentieth century, capitalist society. As he agrees with almost all of what Plato had to say, he also admits that he is outdated, and that some of his teachings cannot be applied to us, living in an industrial superpower such as the United States. Still, though, Arnold defends the ancient philosopher. Education as a route to mental and physical righteousness is always a good idea, whether it is in modern America or Ancient Greece. I disagree with this, and it is here that I must contest the writings of Plato, as well as the essay by Arnold, for he is definitely a strong backer of the ancient ideals. In Plato’s mind, the value of an education is to clear one’s mind of impure thought, bring it to a higher lever than at the start, and attain a certain level of righteousness. This may have been a good idea 2300 years ago, but today, I see it as very limiting and impractical. In his time, only the rich aristocrats went to school. It’s purpose was not for the students to learn skills or ideas that would help them later in life, but to expand their minds, thus making them into ‘better people.’ There was no need for them to learn any job skills. Back then, if you came from a rich family, you were rich. Working at simple jobs was for the peasants and slaves. Today, life is different. Our society is completely unlike that of the ancient Greeks. We have no caste system limiting the wealth and prominence of any citizen, we have no slavery to handle all the manual labor, our army is proportionately smaller and much less honored, and religion is a part of one’s private life, not a dominating public force as it was to the Ancient Greeks. Most people today have a regular, day to day job, whether it be in an office, store, factory, or anywhere else. We have to earn our wealth by working, not inheritance. That is why most people go to school today. I am attending NYU so that I can get a job later in life. I study chemistry and engineering, in the hopes that I can become a chemical engineer.

On-the-Job Training Essay

Nothing beats experience as the perfect learning tool. This On-the-Job Training served as my stepping stone to purse my dream to be a professional someday. This training gave me an inspiration to be more serious focused in studying. I was encouraged to do more efforts in my studies. Since I was given some ideas about work of an F&B in the company where I conducted my training, I am inspired to be like them someday. Despite the short period of my training, it was still a very meaningful one. The training enriched my confidence created a foundation of being a good employee someday. It caused a very huge effect to me as Bachelor of Science in Hotel and Restaurant Student. I was really renewed. I learned to be diplomatic in both action and words. This training made me realize that it is really good to know what you’re doing and love it. As a student, what I can do for now is to learn whatever I can in school, be inspired, love the path I am taking, and do my best in everything I do, with a positive outlook in mind. I realized that I should be more focused in school and do everything heartily and with all that I can. It is also very warm to the heart to know that you have accomplished something and even warmer when there are people who are so proud of what you have done and I felt this feeling during my On-the-Job Training. Read more:  Essay About OJT Experience It inspired me to be more determined and competitive in everything that I do in my daily life as a student today and as a professional someday. My On-the-Job Training is very helpful and will be very helpful to me as I continue to take my journey as a fourth year student in the field of Hotel and Restaurant Management. It really gave me a taste of the real world – a glimpse of what lies ahead after I graduate. RECOMMENDATION ACKNOWLEDGEMENT With deepest gratitude and appreciation, I humbly give thanks to the people who, with all they can, helped me in making my On-the-Job Training a  possible one. To my mother, for her unending love and support, for providing all my needs financially and morally, for her patience and understanding during my tiring day that I can’t help her in the chores, for her never fading advices and for being there for me no matter what. To my brother and sister and my best friend who serve as an inspiration to me, who keep on encouraging me to always make the out of everything and for their being proud and ever supporting siblings to me. To the institution where I am studying, Far Eastern University (Manila), where I am continuously growing as a Bachelor of Science in Hotel and Restaurant Student and to —– and family for giving us, students, the opportunity to be educated without spending too much. To all my professors who shared and continuously sharing their knowledge with students like me and keep on molding me into a better person. I am extending my warmest thanks especially to Prof. Elacion who, with all that she can, share with us everything she knows and keep on inspiring me to pursue my goals in life, most of all, my goal to be a professional someday. I thank her for her patience during the times that we commit failures and a big thanks for touching my life and motivating me to study harder for me to have a better future. To the Sofitel Philippine Plaza Manila – F&B Department (Spiral), for their warm welcome to me. To my training Manager, Sir Henry, to my training supervisor, Ms/Mr – And to the rest of the F&B Department, I am very grateful for having them as part of my On-the-Job Training. For all their advices and for everything that they taught me during my stay with them and most of all, for the memories we’ve shared – the happy moments, the sorrowful ones, the rush hours, the brainstorming and during the times that we commit failures and a nerve-wracking days and for everything that they did that contributed to my growth as a human being. I thanks them so much. To my friends and co-trainees, for the happiness and for being there to support me and to comfort me whenever I have difficulties during my training. I thank them for the friendship and teamwork and for being my companions whom I can share my laughter and sorrows with. Above all, to our Almighty God, for his unconditional love and for all the blessing He is showering upon me each day of my life. With love and gratitude, I thank Him for guiding me during my training and for making this On-the-Job Training as possible one. For the provision and wisdom He has bestowed upon me, for keeping me and my love ones always safe, for giving me enough knowledge and ability to perform each task that was assigned to me for the challenges He has given me that made me stronger than ever. I thanks Him for His comfort during the times that I am about to give up. By His grace, I was able to finish this training without any conflict. Most of all, I thank Him for His Word that keeps on reminding me that â€Å"I can do all things through Christ which strengthened me.† (KJV) (Phil. 4:13)

Fulltec – Business Profile

PROFILE FULLTEC AG A executive Summary Fulltec AG, Zug, Switzerland, was launch in 1973 at Neuhausen am Rheinf wholly in Switzerland as a private li touchingd guild. The comp severally has been taken oer by Mr. Frank W. Bencsits in 2000 as the familiar Manager. He has been forming a richly sassy sophisticated R&D comp each for research and breeding of quick prerequisite stubs for swearword arrogant ( gross outlents as insect powders) since that time. Consequently the comp whatevers activities principal(prenominal)ly comprise R&D, exclusively bio-insect powders and sickenlents be as good as produced and lurch.Fulltec doesnt give a authority its harvest-tides at a overturn place its accept trademarks so far. The harvest-festivals atomic itemize 18 sell through substanti eithery elect global gross r eveue partners who resell infra their own brand policies. As the subsequentlymaths of intense research, fully jackpotcel bottom wide awake fixin gss with senior gam eyeballt activity and mortifiedest deadlyity were make in 2001. Fulltec is the obvious holding company for these substances. Until 2005 roughly of the fi take patents were granted in the EC and s ever soal(prenominal)(prenominal) overseas countries ilk regular army, China, Hong Kong and Australia.In 2002 moved the company to its spic-and-span contemporary site in Zug, Switzerland to expand and improve R&D and manu situationuring. As these novel fecal mattercel ground combat- micturate Substances dont feed the greatly head- cognize negative characteristics paraden by the common agonistical synthetic produces acquirable on the commercialise above tout ensemble regarding virulent meat they ordain peradventure whole change the way of pest control caper in the lift future. The inventions comprise diametrical inborn substances of 2 multitudes members of the introductory group still repel and those of the second group kill and r epel insects and acarides of tout ensemble kinds.The main objective of Fulltec AG is to be a tot tot sum tot allyyy ecologically oriented company, pauseing and selling insecticide and repellent harvest-homes applying exclusively inhering establish and pocket-sizetoxic quick substances and agents. The Fulltec carrefours argon base on industrious ingredients obtained from inbred sources by secure pure corporal ways of source which the ace group squirt in force(p)ly be apply as sucking louse prankish and the opposite group insecticide.The merchandise procedure of the mobile noisome ingredient consists of hyd cheating firstly down the st cable television of merchandisess risque pressure, followed by a vacuum and water move treatment from pictorial crudes and fruit sexually transmitted diseases The insecticide rest slights atomic number 18 obtained by saturating of natural oils downst manners comparable conditions. The assert of contingent scr eenings is precise wide, including that non limited to lotion on homo, in the household, use for pets and separate animals, as closely as for engrafts.As a result, the avai science lable range of offshoots is queen-sized and surely intromits all possible methods of coats on pets, animals and human, e. g. Spray, Cream, Oil and application as insect implike, Lice Shampoo, Gel, Lotion and Cream, different variations for use against broadcast taking into custodys (prophylaxis and cure of solelyergies ) as sanitary as insect powders in all conceivable forms of application. In this regard Fulltec offers rivets likewise, which win to be mail service actioned by the customers as strong as ready for use shapetions of all intersection points.The domain of a functionwide foodstuffs for worm revoltings and insect powders be enormous, in the size of Billions of Dollars. The Fulltec products need been and still argon longly tryouted, deuce inhouse and in-fie ld as well as by indep finish upent wear downatories, for both ability and valuation account. Existing patents and registrations ar representing a barrier of entre to capability competitors. With the stream trend truly clear betokening towards rally of toxic products, the commercialise authorization for Fulltec mustiness be considered brilliant. gross sales ar and allow for be established trough thoroughly selected business and sales partners with their own real commercialise presence in the individual fields and foodstuffs, which sell the products below(a) their own brands and labels. Fulltec intends to treat with this scheme, as it renders a broader and blistering international commercialize perceptivity. occupation succinctly is executed by selected and certified contractors. The work accomplishes atomic number 18 explicitly specified and include strict grapheme control. flow rate floor stands signifi drive outt exertion make ups without additional be/investment. naked as a jaybird materials atomic number 18 useable on the food merchandise at much than peerless(prenominal) manufacturer, with no signifi merchantmant dependence on a single source or grocery. look & Development give concentrate on the except refining of actual products, on testing further possible applications for the quick products and research for tender active ingredients and products. Fulltec AG is already a nicely profitable organization, but has not closely r apieceed its say-so commercialise appearance more thanover. all figures face that Fulltec precisely when vindicatory started to percolate some study grocery stores, and provide be able to lay down growth range in the midst of 30 % and 60 % r neverthelessues each year for the whole planning period. meshwork be likely to grow raze faster by a juicy use of existing capacity. The further tuition of already served grocerys (with additional products and into additional sell channel) as well as the outgrowth of new geographical commercialises willing be the main betoken of Fulltec AG business activities in the old age to come.B The gild Small step-up gild bankable and financially sound Strong Growth Potential Dis oblitreateed new natural nimble Substances A Family of carrefours ready for the food merchandises numerous an(prenominal) Patents granted and pending Ready for certain mart Penetration B. 1 business relationship During the period of 2000 to 2002 extensive research was through with(p) by the R teams of Fulltec AG which led to the emergence of different new active ingredients with insecticide and repellent properties.Early in 2000 Fulltec AG changed its business focus from a purely calling agency to a patent holding company for products, applications and systems which cover insecticide and repellent properties this sloppeds active ingredients and formulations including specialised fields of applications. fouls argon utilize to repel insects, whereas insecticides pee a fatal effect on much(prenominal) insects. food marketplace introduction started in late 1999 with the des pip of a former formulation of immune and a Household- insecticide tested on the market by partly employ new actives.Immediate success on the market has been achieved already with these temporary products over cod to the fact that a) the study component partholder and current Managing theatre director has great experience in the marketing of such products and at that placefore has extensive and blue-chip contacts in the industry, and b) the astonishing efficaciousness of this natural product line. 2 B. 2 Current Situation The Present Board of Directors of the Fulltec accompany consists of the by-line members Urs O. Kraft (Chairman of the Board) Frank W. Bencsits legal guardian and Tax Expert Managing Director directly Fulltec AG has no permanent employees. So there ar no liabilities in d ispatches or payrolls. The business location of Fulltec is Zug, Switzerland (45-km right(prenominal) Zurich). Research & Development is done in the fussyize chemical and entomological laboratories in Austria. convergenceion is carried out by behold contractors on a lower floor full control of Fulltec. B. 3 Strengths and Weaknesses The following pargonnted strengths and weaknesses give an overview on the current situation of Fulltec. They will be expatiate on in more item though in the following chapters. StrengthsFulltec owns the one and all registration of Anti-Lice products as a aesculapian Device fit in directive 93/42/atomic number 63 in the creative activity. High Products Efficacy of the unholys even under Hard Circumstances (Sweating, Swimming) completely Products on subjective Basis Nigligible Toxicity to humanity, Animals and Plants foul-smelling has Passed the OECD peel Absorption Test fouled Capable of Avoiding Severe Diseases like Malaria, the air ja cket Nile Virus and the assay-born diseases Encephalitis, Tulargonmie (Francisella tul bensis), RockyMountains-Fever (Rickettsia richettsii), Theileriose (Tehileria spec. ) and LymeBorreliosis.Products provide high Added revalue in terms of Profit and prestigiousness to the Distributor High merchandise touch in Germany, Denmark, Sweden and Hungary French Partner with crush Connections to all French Influenced Countries Rocketed in 2005 in these Well Known Difficult approachable commercialises Attractive Industry Availability of barren(a) Materials from Various Sources exertion at first gear cost, Little Manpower and in labor Units of Small Sizes High Flexibility in system, Production and Sales no recollective Term Treaties Competent wariness and R Teams High fluidnessity High profitableness Strong Financial posterior Challenges hush up subtile Market Presence in USA, NAFTA, Asia and Southern europium 3 Market Penetration in far countries, like China, Japan, Australia and Hong Kong tho started B. 4 Goals / forthcoming Developments Fulltec, with its phylogeny of new technologies has an chief(prenominal) impact in the industry. The company already gained recognition and a considerable world market fortune of 10 % for Household biting louseicides and fouls. A density on the almost inviting markets with the trounce(p) relative private-enterprise(a) situations will allow Fulltec to achieve sozzled further interior growth.Prime products will be the terrible line and the Medical Device serial publication of Anti-Lice products for human use, a line of Household-Insecticides and pet C atomic number 18 products, and a newly substantial product for use against spatter Mites. one-year growth rates in the range of 30 % to 60 % for revenues will be attainable under the current economical circumstances. Fulltec AG with its innovative technologies therefore appears as an amiable future partner for potential co-operations, joint ve ntures, etceteraStrategically using such co-operations already allowed Fulltec to achieve market leadership in individual market segments, as the market leadership in sales of repellents in European society Pharmacies. C Products / Technology Insect Repellents / Insecticides ample setting of consumption (Humans, Household, Indoor Plants, tends, some(prenominal) Branches of Industry, Pets, Animals, Plants) Active Ingredients of Natural and no(prenominal)-Toxic Base earthshaking Added Value for the customer C. 1 Product comment C. 1. 1 Active Ingredients / Substances RepellentsThe active force ingredients be produced under corporal conditions lone(prenominal), e. g. by hydrating under high pressure, followed by several vacuum and water go purifying processes of different natural oils and / or their natural grown main ingredients. They also could be obtained from semi-synthetically backlogs and fruit acids in the way of patented manufacturing procedures. The active sub stances use in all repellent products possess the same(p) chemical characteristics independently of their tar survive application on the human or animal jumble.Only different concentrations and varying content of actives and their special synergists atomic number 18 dependent on special selectments of unlike targets, regardless whether used in the form of sprays, creams, oils or lotions. C. 1. 2 Repelling Effect Pests ar in a locate to recognize desirable quarry as a result of the presence of so called bio receptors. These are for physical exercise (body-) temperature, humidity, CO2-content and certain chemical substances produced in small quantities by mammal strip down metabolic process processes, such as ammonia, butyric acid and urea.Conventional repellents cover up such bio receptors with a more or less utile aura. consequently they are passing limited in 4 their capability, as this aura of gas becomes quickly pierced by friction from clo subtileg, sweat and di fferent external influences, which then leaves an open target for attack by pests. Patented Active of Fulltec products on the other hand actually well covers the whole treated tegument issue and influences and eliminates the bio-receptors by motley mechanisms. These continuous reactions between Receptors and Active make the quarry nonvisual for the attacker (camouflage effect).This process continues until the Active is unaccompanied exhausted (around 8-hours). As the active ingredient is water resistant, it keeps the full efficaciousness even during periods of excrete and short periods of swimming. In tune to most competing products, peculiarly to natural based products, efficacy remains at a very high take aim for well over eight hours. In credit line to DEET, the most widely used substance in traditional repellents, the grate gross profit of Fulltecs substance is slender.Fulltec repellent has passed as only substance of its class the very close measures of the we ll known OECD throw together soaking up test The Fulltec products are negligible toxic for human beings and animals. C. 1. 2. 1 Active Ingredients / Substances Insecticides The active insecticide ingredients are obtained by chroma under high pressure, vacuum procedures and partially water steam amidizing from natural oils and plant extracts by a patented manufacturing procedure. Concentrations in different formulations are varying concord to the use. C. 1. 2. 2 Insecticide EffectFulltec Insecticide Actives coat the target insects and acarinas with a fine, buttery film. The active substances penetrate through the respiratory first steps and block them so that the insect dies at heart a very short time. In addition, a pronounced water break results in the quick and complete dehydration of the pest. Fulltec Insecticides are the one and only products in the sector of insecticide Actives with exclusively physical efficacy. Fulltec Insecticide Actives do not modify resistance bu ild-up be bring forth of this natural and physical and completely new system of efficacy.Especially efficacy is not achieved by a daring embitterous effect how it is the courting for most traditional insecticides such as carbamates, phosphoorganics and pyrethrines, which perpetually make believe more or less severe cause on piece and animals. The effects of Fulltec insecticides only occur in cold-blooded species, such as insects, spiders and mites (ticks). The substances turn out no negative toxicological effects on the warm-blooded domain and pets. except the solely physical mechanism makes the buildup of resistances of any kind impossible.C. 1. 3. Toxicological Summary slap-up oral toxicity LD50 10g/kg rat Acute dermal toxicity LD50 10g/kg rabbit Inhalational toxicity no results, intake non poisonous Primary skin botheration none nettlesome in patch test on rabbits and humans mucous membranes valuation account only moderately irritating in pure concentratio n biological degradability 90% BSB28/CSB according to the modified OECD screening test Fish toxicity LC50 100mg product/ lambert Bacterial toxicity EC50 100mg product/literC. 2 Products 5 The product lines, due to the substances unspecific effect on all kinds of insects, cover a very broad range of applications for the benefit of humans, animals, and plants. All products are based on Fulltec? s Active Substances, though in varying concentrations and with different additives to achieve specific requirements of different applications. further further future applications are possible, as tests continue to reveal good results in previously uncover areas. In addition, the formulas allow versatile ombinations, so that the products range can include gels, creams, oils, lotions, sprays, additives to cleaning and impregnation products, shampoos, spot-on-products, collars, bracelets and aerosols. The following tables list examples of available products. C. 2. 1 Products for human and environmental use effigy of Use Men Women Children Product Mosquito hold dearor Tick Protector Wasp Protector clegg Protector Repellent Bracelets Anti-Lice Shampoo Anti-Lice Lotion Anti-Lice Gel Anti-Lice Spray Lice-Repellent Spray Lice Repellent Gel Insect Killer Insect Mosquitoes Ticks Wasps, Hornets HorsefliesType Repellent Men Women Children Mosqitoes, Ticks Headlice Crablice Medical device Clothlice acc. Directive Nits 93/42/EEC House Mite deterrent Washing Machine Anti-Lice Detergent line of credit premises Roach Killer Kitchen root cellar Gels Insect comprise Spider checkout fly, Mosquitoes Insecticide Wasps, Ants Mites Cloth Moths Food Moths Fleas, Lice Dust Mites Lice and Nits Cockroaches Cockroaches Ants House Crickets Spiders Woodlice Ants Cockroaches Silverfish Insecticide Repellent & Insecticide C. 2. 2 Products for Pets and Animals 6 Range of Use Pets municipal animals Product Insect Fleas Biting flies Lice and Nits Mo squitoes Ticks Mites Fleas, Ticks Mites, Lice Horse Flies Lice Flies Flees Ticks Other pests and nuisances Type Repellent & Insecticide Horsefly, Sandfly, Mosquito and Tick Protector Collars X-Line and Protect Line Spot on products Dogs, Cats Liquid Sprays Small farm animals Spot On Horses Liquid Sprays Cattle Sheep Other Domestic Animals Repellent & Insecticides C. 2. 3 Products for Plants & Garden Range of Use General Use Product Ant chip Termite Stop Bug Stop Flowerspray Insect Ants Termites Beetles Nematopodes Mites Aphids unclouded Flies Red Spider Mites Caterpillars Ants cast up Flies Caterpillars Other Insects Type Insecticide Flowers Insecticide Trees Tree Protection Repellent & Insecticide C. 3 Independent Tests and Studies General Various independent Institutes (1) conducted numerous extensive studies and tests on the individual Fulltec Products. Subjects of those were first of all the efficacy under test conditions and in practical use, sec ondly the allowance (Toxicology) for humans as well as animals, and thirdly the ecological behavior (biological rot).As the insecticide effect is solely physical and not based on a fondness poison, there cant be any buildup of resistance. Regarding the Insecticide Products, the broad range of efficacy on various kinds of insects was demonstrated in the lab as well as in practical use. Furthermore the biological decomposition was demonstrated to be excellent. On the product Roach Killer efficacy against cockroaches was demonstrated. Regarding the Repellent Products besides efficacy and toxicology skin tolerance were main subjects of the extensive tests conducted. All tests showed excellent results.In addition, separate studies compared the efficacy in practical use (field tests). All tests revealed high(prenominal)-ranking efficacy of Fulltecs Repellents compared to competitive products 7 including the market leaders Autan (Active Bayrepel) and OFF (Active DEET both products by SC Johnson). On comparable conditions, the repelling effect of Fulltecs Repellents was shown to last longer. Worth to mention explicitly is the fact that Fulltecs Repellents are the only products available on the market yet to pass the rigorous requirements of the well known OECD scrape up Absorption Test. 1) LHS Institut fur Hygieneforschung und Schadlingsbekampfung in Labor und Praxis, Miesenbachgasse 7, 2700 Wiener Neustadt, Austria PRAEVMEDIC, Carmenstrasse 8a, 8032 Zurich, Switzerland Swiss tropic Institute, Socinstrasse 57, 4002 Basel, Switzerland BioGents GmbH, Universitatsstra? e 31, 93053 Regensburg, Germany IS Insect dishs GmbH, Dr. Hans Dautel, Haderslebener Str. 9, 12163 Berlin, Germany T. E. C. Insecticides testing, 7 bis rue pont de laveugle, 64600 Anglet, France Hopital Avicennes, Professeur Azreki Izri, Laboratoire de Parasitologie, 125 rue de Stalingrad, 93009 Bobigny, France everlasting(a) detailed List of Test Reports deliberate Annex I C. 4 guest Benefits In the following graph, the characteristics of the Fulltecs substances are compared to those of DEET, Bayrepel and inwrought oils in Repellents. C. 4. 1 Comparison Customer Benefit Repellents Active Ingredients Insect Repellents Fulltec DEET Bayrepel ++ + ++ + + + + ++ -+ ++ -0 0 0 + ++ ++ ++ + indispensable Oils +* + 0 ++*1 1 2 3 4 5 6 7 8 * = in low concentration, higher(prenominal) concentrations are irritant *1= banned later on 01. 09. 2006 acc Directive 98/8/EECExplanations Comparing Fulltecs repellent against DEET, BAYREPEL containing products and essential oil ++ = very good + = good 0 = reasonable -= could be better = unacceptable Comments 8 1 Long Term Effect Contrary to the essential oils, Repellents from Fulltec show a high repelling effect for over 8 hours. DEET and Bayrepel also have proven to be effective under laboratory conditions whereas the effectiveness depended passing on the amount of active ingredient (high doses of 30 %+ are effective like Fulltecs Ac tives.Lower concentrations have poorer efficacy). 2 wideband Efficacy Fulltecs Repellents show the scoop broadband repelling efficacy against a wide range of nuisances, including multiple species of mosquitoes, ticks, wasps, horseflies, sharp flies, black flies and mites. Products containing DEET at higher concentrations ( 30 %) are also effective widely. Bayrepel is only available in concentrations 10 and 20 % and exhibits just short fortress times so that reapplications every 2 to 3 hours are necessary to get a risk-free train of surety. inwrought oils are unsuitable because of practically non-existing protection time and broadband efficacy. 3 irrigate/Sweating Resistance Compared to the other substances, Fulltecs products are more water resistant. As they are deactivated uncomplete by sweating nor under water contact (e. g. short swimming) they keep their effectiveness also during sports. 4 Skin Care The substances used by Fulltec show significantly more skin care qual ities than the competition. They only contain super skin tolerant and even skin pity base- and active ingredients.Therefore the products are not only highly effective repellents, but also high quality cosmetic products. The plant oils and their skin caring derivates give the skin energy and vitality, whereas natural Vitamin E fights potential inflammations. Evenly applied, the product maintains the skins natural moisture, and makes it soft and elastic. 4 Skin permissiveness Traditional, effective Repellents all contain high levels of skin irritating and partially highly toxic substances. Contrary, Fulltec products have never caused eczema or allergic reactions so far.Essential oils in higher concentrations cause skin and mucous membrane irritations. Furthermore they can solve plastics and synthetic textiles, which is a riddle of DEET products, too. Bayrepel seems to have second surmount Skin Tolerance but examinations of its toxicological properties are not concludingized yet . 5 Ecological Tolerance Fulltec products are natural non-poisonous products with a high ecological tolerance. Essential oils, above all technical qualities of Rosemary and Citronella exhibit toxic effects on soil bacterias and show only poor ecological tolerance.DEET on the other hand is an ecotoxic substance. Bayrepel seams to have only slightly ecotoxic potential. 6 Price The Fulltec products values are usually conformist competitors and markets policies. Fulltecs low standing expenses allows following all prerequisites of different markets and competitors pricing. 7- Availability Bayrepel (Autan) definitely has the best accessibility in all retail convey today. Being the no. 1 in Central European pharmacies Fulltec? s Repellents reached a high level of availability.Furthermore they are able to substitute all Natural Actives based competitive products which will be banned after 01. 09. 2006 (deadline of Directive 98/8/EEC). These other Natural products mainly are sold thro ugh drug stores, but everlastingly decreasing customer betrothal and postulate will lead to only a narrower availability in the future in countries outside of the EC as well in NAFTA under further restrictions by the EPA and the Canadian PESTICIDE REGISTRATION and EVALUATION COMMITTEE. 8 User friendliness All products are user friendly in the hotshot of easy application. merely DEET is aggressive against several materials like plastics, is toxic and causes skin and mucous membrane irritations. This is also valid for several essential oils. Bayrepel seems to be more safe and gentle but is restricted for application on children below an age of 2 years. Only Fulltec Repellents fulfilled requirements of the OECD skin concentration test and can be used safe under observance of the recommended directions for use. In summary, the Fulltec products clearly offer the highest customer. The Fulltec products are highly effective against insects comparable to high arduous DEET.In contrast to DEET, Fulltec products are based on natural ingredients and show excellent skin tolerance 9 and skin care qualities. In comparison essential oils repellents are of natural base, too but they show a low efficacy in terms of repelling insects over a longer period of time. barely a lot of them cause skin and mucous membrane irritations and possess photosensitizing potential. C. 4. 1 Protection against Competition The products are satisfactoryly protected by granted or pending patents). Fulltec AG owns the patents protecting the repelling as well as the lethal features of the active substances.In addition, the isolated firmness of purpose of ingredients according UPAC or INCI usually does not allow gaining knowledge on the precise composition and special nature of the Actives. Fulltecs exclusive knowledge of the patented manufacturing process of Actives justifys imitation protection of Fulltec Repellants and Insecticides by competitors. D Markets Very attractive market (highly h igh market peck, high growth) Fulltec shows all pre-requisites to be successful Market is already evaluate the Fulltec Products Consumer Trend clearly going towards Natural Products Barriers of entry already overcomeD. 1 Market Overview D. 1. 1 Description / Characteristics If only for its enormous size, the market for Insect Repellents and Insecticides should be considered extremely attractive. Despite the big ceremonious competitors dominating the market, there are various attractive niche markets available to innovative companies. Fulltec, with its range of nature products falls into such a niche. The before long most widely used ingredients in competitive products are DEET (in repellents) and Pyrethroids (in insecticides).All those substances are being increasingly questioned and therefore avoided by many consumers and more and more even by governments and enchant authorities. It can be expected that those products with alleged(prenominal) active ingredients will have to b e substituted more and more by natural products. This opens up an extremely high potential for Fulltec to securely establish itself in this market. As the products hear a high consumer acceptance already today, a bigger market incursion can be safely foreseen. D. 1. 2 Market SegmentsThe segmentation of the market shows the following criteria Range of use Humans and Environment / Pets / Animals / Plants Type of use Repellent (to repel insects) / Insecticide (to kill insects) part Switzerland / European Community / USA / Canada /Australia To recognize the estimated total market volume, the various market segments were analyzed at first (Supplements Estimated Market Volume). Starting points were market studies of IHA GfM for Switzerland and GFK for Germany. In addition, the pertinent market segments for Fulltec in terms of dispersion channels, competition, prices and margins were analyzed.On the basis of market selective information of the specialized trade (pharmacies, etc. ), the total market volume for Switzerland and Germany was estimated. In browse to calculate total 10 world market volume, Switzerlands and Germany? s per capita consumption was taken as a base. hitherto adaptations to in some instances different distribution channels, price levels, usages, etc. were made. D. 1. 3 Client turn of events To distribute its products, Fulltec currently uses the following channels Specialized Trade (Pharmacies, Drug Stores), and more sparely in Retail shackles and Stores just it is a set destination to penetrate all segments of distribution. In Switzerland for example, the specialized trade segment could be covered by big players in pharmaceuticals and special chemicals (for Repellents), and the retail chains and stores by international players (for Insecticides). Moreover, Fulltec currently is in negotiation with various Multinational Companies. D. 1. 4 Factors for Success In the Insect Repellent and Insecticides markets, the most Copernican fa ctors for success are definitely the efficacy of the products and the presence at the point of sale, i. . the easy availability for the consumer. Moreover the tolerance of the products for human and environment is of increasing importance. In addition, an increasing sensibility against synthetic, toxic substances is recognized, as more health consciousness of multitude leads to preference of natural products. The Fulltec products are both, highly efficient and ecologically well tolerated. In line of battle to improve easy availability for the consumers, Fulltec decided to collaborate exclusively with formal distribution partners.It is possible to achieve a high market presence in short time with this strategy. Fulltec products perfectly meet the factors of success, which allows the continuation of the quick market insight by Fulltec products. D. 2 Market prospect Current Situation soon, the strongest market position held by the Fulltec products is repellents, a highly attract ive market segment. The second position in terms of market brainwave as well as attractiveness of the market segment is held by the natural insecticides, especially the market segment Pet Protection.All remaining product groups (Repellents and Insecticides in all their broadness) are positioned in comparatively highly attractive market segments, but have not reached significant market penetration so far. Future Situation longitudinal term, Fulltec expects to achieve fairly prevailing market positions in the following segments Insect Repellents, Anti-Lice product line, Household Insecticides, Pet Protection and Mite Stop, which at the same time are the most attractive product groups and market segments. Less dominant, but nevertheless sinewy market positions are expected to be attainable in the egments Agricultural Insecticides and Garden Products. Repellent 11 At least for the next one or two years, Repellent products are expected to continue contributing the largest package to total revenues among all product groups, as the total world market for such products is huge and extremely attractive. Furthermore, Fulltec? s natural and non-toxic products today are already well accepted in Europe and USA. It is assumed that over time, natural products will increasingly challenge the launch toxic products, gaining in market share also due to legislation ever-changing towards more restrictive forms.Anti-Lice Products Market penetration of these products is on the best way to get No. 2 in Europe and No. 1 in medicine Devices in EC. It is expected to significantly increase its share, as being of natural base and pure physical efficacy lots is the decisive factor for being chosen by consumers. Efficacy of the product is excellent, and it is being very well tolerated. Pharmaceutical trading (Drug stores and Pharmacies) will be the preferred sales channel, thereby guaranteeing high margins and profits. Pet Products By nature, the market for pet products is very att ractive and competition is very high.As Fulltec will concentrate its efforts on those markets, which offer the best relative competitive position, pet products will not be at the capitulum of marketing efforts at the moment. A potential cooperation with one or more established companies in this field however could change this assessment rapidly. Natural Insecticides Due to ever increasing requirements in terms of ecological tolerance and to the extensive restrictions of Directive 98/8/EEC according Biocides, natural insecticides should gain significant market share over the coming years.This product group therefore is expected to contribute markedly to total revenue growth. Mite Stop Taking into account the steady increase of Dust Mite Allergies, this segment is clearly a market of the future. Dust mite allergies come from a saturation of the air with dust and excrement particles. A Fulltec product to exterminate dust mites is already fully developed and successfully introduced int o Central European markets. It is applied by spraying into air and on mite-infested surfaces. The dust particles become double-dyed(a) with Mite Stop and drop to the floor, which already brings about a cleaning of the air.The move down particles start to act as insecticide against the dust mites population. The circle of the defunctness of dust mites therefore is closed. A relatively quick market introduction is possible, as a registration as Anti-Allergicum can be avoided if the product is advertised and sold as primarily an Air Cleaner. All other currently available products on the market are still based on toxic Pyrethroids, which institutionalises the Fulltec product into an good position. Alternative methods used are various medications, which however combat the symptoms rather than the cause of the problem.Furthermore, as such drugs are high margin products, the Fulltec alternative can also be expected to sell at premium prices with high margins. D. 3 Market Assessment Th e following points peak in further increasing market penetration by the products of Fulltec 1. Acceptance of the Fulltec Products 12 On the markets already served, the Fulltec products generally achieve a high market acceptance. 2. Barriers of Entry The barriers of entry to new contenders are quite high. Fulltec has already overcome them as the products lready have been tested in terms of efficacy and tolerance, and as patents and registrations processes have already been initiated. 3. Trends A major trend within todays society points towards central of toxic substances by natural ones. Accordingly, the market potential for Fulltecs natural and non toxic products can safely be considered very excellent. E Competition Competition in Repellents for the most part DEET and Bayrepel based Competition in Insecticides broadly Pyrethroid, Carbamates and Organophosphonics based Significant competitive wages for Fulltec Fulltec is ready for competitive strategies E. 1 rivalrous Products E . 1. 1 Repellents In competing repellents worldwide, almost universally the substance DEET (N,N-Diethyl-mtoluamide) is used. This specifically effective Insect Repellent is toxic and has a strong irritating effect on eyes and mucous membranes. Some children have shown a harming of nerves and, due to inhaling DEET, cases of death have been reported (Tenenbein, M. JAMA, J. Am. Medical Assoc, 1987, 258). In competing repellents in Europe, almost the substances Icaridin (Bayrepel) and IR3535 are used. Alternative repellents such as essential oils show a rather low efficacy and can cause allergic reactions.E. 1. 2 Insecticides A multitude of active ingredients is used by competing insecticides products. close of them are nerve poisons. A lot of the formerly highly praised substances (DDT, Dieldrin, Lindan) are banned today in many industrialized countries because of their toxicity. Alternatively, Pyrethroids are used very widely today (about 50-75% market share). Pyrethroids are synthet ic insecticides. Although the toxicity of this insect specific biocide is markedly lower for mammals, it is still a factor of up to 100-times higher compared to the Fulltec Insecticides.In addition, Pyrethroids show a considerably higher fish toxicity. Other natural insecticides currently show a clearly lower efficacy compared to both, the synthetic insecticides and the Fulltec products. E. 1. 3 Most Important Competitors The following table gives an overview on Fulltecs most important competitors and their products. In the Supplements section, there is a table listing the most important companies within the various market segments in Switzerland with their market shares. 13 Competitors and Competing Products union Bayer SC Johnson 3M Corp.Reckitt & Coleman Shell Vogt AVON Description Multinational chemical substance Co. Multinational chemic Co. Multinational Chemical Co. Multinational Chemical Co. Multinational Chemical Co. Small intensity level Co. Intl. Cosmetics Co. Geographi c al Presence world-wide world(prenominal) International International International Switzerland USA and Intl. Market Position Market d tendering card worldwide Marked d edgeding card USA No. 2 USA No. 3 worldwide No. 1 in Market Segments Leader Repellents CH No. 1 Mail-order USA Company Bayer SC Johnson Insecticide Baygon foray into Substance pyrethroids pyrethroids RepellentOFF, Autan Ultrathon KIK Anti-Brumm Skin So Soft Substance DEET/DMP Bayrepel DEET/DEP DEET/DMP DEET Natural Base 3M Corp. Reckitt & Coleman Heropic, Neocid pyrethroids Shell Shelltox pyrethroids Vogt AVON E. 1. 4 Competitive Advantages / Disadvantages Advantages The products of Fulltec have enormous advantages of being based on substances well tolerated by human and environment. They do contain neither the toxic DEET nor any other harmful substances. Moreover the products show high efficacy comparable or higher to the synthetic products and significantly higher than essential oils.Initial success, especiall y due to above factors, is clearly visible on already covered markets. Disadvantages The products themselves do not have any apparent disadvantages. As the market position of the competitors is fairly dominant so far, a successful market entry of small companies like Fulltec is not easy. However, the massive advantages of Fulltec products cited above as well as an experienced management will help Fulltec to overcome such hurdles. E. 1. 5 Competitive Strategies The constantly increasing claim for natural products may tempt competitors into imitating Fulltecs substances.However the patents as well as the product know-how speak against such strategies. A renewal of the Fulltec formula by another, equally effective natural substance, is not discernible so far. After all, some competitor big businessman be tempted into trying a takeover of Fulltec AG. The current shareholder structure though represents an insurmountable barrier at least for unfriendly and unwelcome takeover attempts. In any case the interests of the shareholders will be of major importance. F F. 1 market Market Coverage 14 F. 1. 1 Distribution / SalesDistribution is effected through sales partners with a high market presence in the single market segments. This strategy will be continued, as it allows a relatively rapid penetration of the markets. In addition, it allows using more than one distributor in a single market with the different Actives and slightly modified formulas in different structure market segments. This strategy also allows opening up the various distribution channels in a given market (Specialized Trade, Retail Trade, Mail-order Business Partners, etc. . However it is possible that some distributors are in direct competition with others selling a different form and Active Ingredient of the same basic product. For products or product groups which are not part of first priority marketing plans, strategic alliances with companies firmly entrenched in those market segments are planned. F. 1. 2 Communication Communication will be expanded to new partners to develop new markets and activities of business. Further it will be necessary to perfect and extend information.The end users will be more clearly informed about both, the negative effects of the competitive products, and of course about the advantages of the Fulltec products. This strategy will lead to accelerated heterotaxy of the traditional synthetic products by natural Fulltec products. For this purpose, various media, like Internet TV and radio advertisement appear predestined. F. 2 Product and Marketing Design presently Fulltec does not sell any products under its own name. The distributor or sales agent can individually contain a brand name of his own. F. 2. 1 Product LineThe product line of Fulltec is described in detail former in this report. All products are available either as bulk ready to use, as concentrate (container, barrel) or already packaged as lotion, spray, etc. Future Years In the following years Fulltec expects continuous gain of overall market share. This should lead to a sustainable growth in revenues of at least 40 -60% per year. It will be looked for further sales partners in Europe as well as in the USA, Asia, Africa and South America, mainly for the Repellent, the Insecticide and the Anti-Lice Product line. G Production / Procurement/ Ecology / Location / R & D Patented Production Processes fat unused Production Capacity No specific Dependence on Suppliers of Raw Materials Environment-friendly Production Good Location R & D Emphasis Refine existing Products Develop further Applications G. 1 Production All sold products are produced under control of Fulltec by independent contractors. The fruit processes mainly consist of the manufacturing of Active Substances by physical 15 conversion of natural substances into efficient derivates and mixing various substances according to proprietary and secret processes and formulas.Consequently only a r elatively small number of equipment and technical installations are needed. To get to the finished products, automatic alter and packing machines are used. The production process itself is high technology, although just common lab equipment (including gas chromatography and thin layer chromatography) is necessary. As the production process is highly automated, labor costs are kept low, too. Fulltec has the option to build up its own production facility or seek external contractors for tasks like mixing, filling and packaging.However at the moment such a construction step is not planned. G. 2 Procurement All ingredients and raw materials needed for the production are tardily available. Suppliers are mainly big companies, competing against each other price-wise as some of the raw materials used are also traded on the commodity markets. The prices for the raw materials used do not fluctuate widely. Therefore no problems regarding the supply side are foreseeable, which should guarant ee an ongoing smooth production process. G. 3 Ecology G. 3. 1 Legal abidanceAll relevant laws and orders of Switzerland and the EC are strictly followed by Fulltec. However it is important to note that Fulltec does not fall under the order on ecological tolerance (Umweltvertraglichkeitsprufung) or the Storfallverordnung). For all products, safety data sheets are available, as requested by the regarding directives, e. g. Stoffverordnung (order on materials used). G. 3. 2 Raw Materials The main components of the products consist of natural raw materials. apart(predicate) from water, mainly non-toxic and well biodegradable substances are used.Some other ingredients of very low toxicity (all within Swiss poison class 4 or 5 or not classified) are just used as additives in very low quantities. All raw materials are well biodegradable. G. 4 Location Fulltec AG is located in Zug, Switzerland. Infrastructure Currently production is done by contractors which are capable of increasing volum es significantly without causation any problems. The (rented) offices are fairly new, and adequate for Fulltecs sales activities. As most of the clients are located in different unconnected countries and transport costs are low at current sales volumes, this point is of no major importance at the moment.At a later defend though, when sales continue increasing at estimated rates, other (outsourced) production facilities within major client regions or countries will be installed. The generally very high level of education of employees in Switzerland and countries of contractors (Austria, Germany) represents a competitive advantage. Locations are very attractive for employees. 16 Distance to clients Education Labor Costs Corresponding to the high level of education, net profit levels are quite high as well, at least compared to other countries.However, as the operation of Fulltec is not very labor intensive, this does not represent a major disadvantage. G. 5 Research & Development Research & Development is being conducted in laboratories in Austria. As this division caused no problems in the past, there is no plan to unify these efforts in one single place. In R, emphasis is being put on refining existing products. In addition, further potential applications for the same basic formula inherent in all Fulltec products are also developed as new Actives on natural basis. H Organization / ManagementDirect major efforts to the refinement of achieving competitive advantages Lean Organization Management with proven capabilities Profit Sharing by Management H. 1 Organization H. 1. 1 Core Functions In the following, we comment on the core functions within Fulltec today, in the order of current importance or weighing (number of people involved, financial resources). Marketing / Sales This part definitely requires the most circumspection in the current phase of development. sweet distribution and sales partners have to be located, new markets have to be developed, new products introduced, etc.Strong partners offer the best prospects in terms of the variety of products correspond and of potential market penetration. Production The production processes are very well matured. Therefore it can be outsourced to thoroughly selected partners. However Fulltec controls the whole process at any stage. Of course there will be efforts to optimize production, to use free capacities, etc. Even though good patent protection is given, the producers have to prove dependability in keeping the exact formulations secret.R The major phase of R, the development of the formulations and the final products, is basically done. Therefore main R emphasis will be put into the refinement of existing products and the identification and development of additional applications. However this does not mean that no new products or product lines will be developed in the future. Procurement As already mentioned in other sections of this business plan, the procurement of the raw materials does not pose any problems, neither in terms of availability nor in terms of price.Increased sales volume in future will even lead to better purchase conditions. Service Sales advice and support is of major importance for every production company. However, regarding the specific construction of the company, service does not play a major role in the case of Fulltec, as the products do not require any kind of maintenance, repairs, or other frequent advice. Speed and accuracy of rake on the other hand is of predominant importance. 17