Effect of Rapid Urbanization on Housing Essay Example

Effect of Rapid Urbanization on Housing Essay THE IMPACT OF RAPID URBANIZATION ON HOUSING DEVELOPMENT IN NIGERIA FROM 1950 -2010 (Focus on urban developments and housing problems case study: Lagos) Urbanization according to Aluko O. E is rather subjective and can be given various interpretations. However in this concept it can be defined as the expansion of the number of people living in an urban area that depicts the rate at which people move from rural areas and populate the urban areas. Reports however, from the united nation show that the population at the urban centres has multiplied four times its initial growth since 1960 and would have risen to a projected number of about 5 billion in the year 2030. Report also has it that over 70 per cent of these populations would settle in cities and towns. Following independence, many administrative centres experienced major unplanned rapid urbanization . The ripple effect of these on cities being the core of urban development is enormous especially on the housing development which has eventually resulted in overcrowding, inadequate dwellings, deplorable urban environment, degrading public infrastructure, and to an extreme, â€Å"outright homelessness† (Adesoji David Jiboye, 2011) . Nonetheless, According to Femi Olokesusi, 2011 quoting Onibokun et. al. 1987) and Onibolun and Kumuyi (1999), assert that various political and socio-economic factors have resulted in rapid growth of urban population resulting in informal settlements, poor housing and slums in Nigeria. The rate of influx of people into major cities has been so high that the pace of settlement development and housing provision could not accommodate them. Since they must have shelter, all forms of informal procedures are adopted to provide housing. This has resulted in non-compliance with physical planning regulations and development control standards. We will write a custom essay sample on Effect of Rapid Urbanization on Housing specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Effect of Rapid Urbanization on Housing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Effect of Rapid Urbanization on Housing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Thus there have been cases of incompatibility of land use activities, overcrowding (due to high occupancy ratio, high density of development), poor construction standards (due to use of substandard building materials and construction methods), and ill-serviced dwelling Units, among others. The impact of rapid population growth however, on urban development and conditions is far more than merely a demographic or quantitative one especially on housing development as a whole which is a direct consequence of the push of the rural areas and the pull of the town. Current studies however indicate that the impact of rapid urbanization in terms of housing is revealed both in its quantity and quantity such that the little number of available houses is being overloaded infrastructurally and spatially leading to a reduction in the level of comfort and a rapid development in the number of slums being created and the level of substandard houses being built in an unplanned and unhealthy environment. However, the level of impact on the adequacy of housing has been compounded particularly by the high rate of population growth, through influx of immigrants, exaggerated real estate values etc. Nonetheless, housing according to Aduwo 2011, Daramola 2006 et al is the measure of the level of housing inadequacy and its quality. According to pelu Awofeso, one out of every two Nigerians now live in a city leaving limited infrastructure to be engulfed by millions of individuals. In his report he stated that 16 million housing units would have to be provided to address the shortage in urban shelters since the inflow of people supersedes the rate at which affordable housing is being constructed. Housing however, according to Abbas Olukunmi Owoade, 2007 quoting Tannerfeldt and Ljung ‘06)does not only relate to provision of houses but also basic infrastructure of a neighbourhood as well as schools clinics , recreational facilities and other amenities. CASE STUDY:LAGOS The city of Lagos was first inhibited before the 15th century and grew from a typical small fishing and farming settlement due to certain factors such as, the construction of the railway in 1895 that linked the city, the hinterland and the port with the development of the Lagos harbour. In the twinkle of an eye, Lagos became the centre of trade and commerce bringing migrants from every nook and cranny. As the population increased so did the spatial expansion which posed a great deal of problems especially housing development. kehinde George, 2002). Population explosion in lagos became noticeable after 1950 amongst other reason, it was the national capital and in ’67 became a state on its own attracting funds from both the federal and state government there by introducing more migrants. However, Over 90 per cent of the typical housing standard is being provided by the private sector and individual efforts bringing about a gap between its demand and supply finding expression in the cost of rented values that eventually leads to vercrowding, growth of slums and rise in the number of substandard housing (Owoade,Abiodun ‘97). Two major factors that accounted for the rapid growth in lagos can tied to net migration and natural increase According to the old United Nations university website, prior to 1928, planned residential areas in Lagos were limited. They included Ikoyi, which was a reservation area for expatriates who were colonial administrators and executives of foreign firms, and had a population of 4,000, or 3 per cent of the population of the city in 1931. Apapa, Ebute Meta, and Yaba, with a combined population of 22,000, or 17 per cent of the total, also had some element of planning, in the sense that road networks in Ebute Meta and Yaba were laid out on a grid and residential development was confined to the blocks within the road pattern. On Lagos Island, apart from the areas around the racecourse and marina, the indigenous housing was unplanned and was left to develop haphazardly, with houses built quite close together. Such overcrowded, unhealthy housing and poor environmental conditions stimulated the rapid spread of influenza epidemics and bubonic plague, which ravaged the city between 1924 and 1930. These led to the emergence, in 1928, of the pioneer planning authority in Nigeria, the Lagos Executive Development Board (LEDB), which embarked on slum clearance and the relocation of families from the Island to the Mainland (Oko Awo scheme) and since then, the activities of planning authorities have assumed considerable importance in metropolitan Lagos. The government of Nigeria has interceded at different times to solve housing problems with particular focus on Lagos by providing housing units as well as establishing site and service programmes to make available plots of lands to individual to build their own houses, the period 1979-1983 under the Jakande administration witnessed a massive housing development programme. evertheless, These programmes had little impact in that it provided limited number of housing units with a major setback in the year 1994 due to increase in price of building materials. Thus, making a considerable number of Lagosians lack â€Å"shelter† a basic need of human existence. The wide gap between the supply of and the demand for has operated in escalating house rents, rent edict were promulgated to reduce this hardship by working population . In 1973 for instance the mid-west state government proclaimed an edict which limited the maximum rent payable on dwelling units. However, such edicts have not been effective in arresting increase in house rents (Josephine Abiodun,1976) Planned housing schemes in metropolitan Lagos |Housing agency |Scheme |Remarks | |Lagos Executive Development |Slum clearance of Central Lagos, 1955 to|1,847 families housed in Surulere. ,337 families resettled | |Board, 1955 -1975 |early 1960s, Olowogbowo Rehousing |in low-income rented houses. Subsidized by Ministry of Lagos| | |Scheme, Lagos Housing Scheme |Affairs | |   |Other housing schemes in Surulere |14,537 family units (dwellings) provided. In all, 128,800 | | | |people were provided with housing | |Lagos State Development and |Resettlement of slum dwellers from |1,000 families housed | |Property Corporation (LSDPC), |Central Lagos to Ogba and low-income | | |1972-1979 |housing in Isolo | | |Federal housing |Under 1975-1980 and 1981-1985 plan |6,000 housing units | | |periods | | |LSDPC, 1979 to date |Low-income housing |16,878 housing units | |   |Medium-income housing |1,790 housing units | Source: LSDPC In Lagos, like elsewhere in Nigeria the access to privately owned housing units through traditional channels has made it immensely possible for a relatively large number of people to be house owners at certain cost which includes the sale of the same plot to more than one buyer owing to a lack of a comprehensive land register and sometimes conflict over rights of ownership between the state and private individuals or family groups or between members of families â€Å"omo onile† (owoade, abiodun ‘97). However, over 60% of these residents are under a tenement kind of arrangement constructed by â€Å"absentee landlord† with this kind of arrangement ending abruptly due to unforeseen evictions(Owoade, abiodun et al) The issue of land acquisition at the same time is far more complex because government acquired land is rarely made available or affordable for the average or even made accessible due to lack of basic infrastructure. Alternatively, in order to live closer to job opportunities there’s need for settling in centrally located pieces of abandoned land left due to unsuitability for housing either for being along railway paths or under high tension electric cable or marshy lands. (Owoade ’07, Tannerfeldt and Ljung 2006). David Owoade in his report emphatically stated that the Problems of rapid urbanization have increased and become more glaring as the cities expand and many attempts to curb these problems have not achieved the desired results. Housing continued to be supplied through informal self-help landlords and a majority of tenants live in homes with unsecured tenure while many holders find home in slums and shantytowns. Examples include Ajegunle, Makoko, Badiya, Maroko etc. Those that have been fortunate enough to build their houses on the periphery of the cities (ota in sango) have to live without basic services and infrastructures such as clean water, sewers, electricity and roads. In 1976, it was estimated that 111000 residential houses were available in Lagos to provide accommodation for a population of 3. 2 million keeping it at an average of 28 persons per building. By 19080, it had gotten worse with 30 persons living in a building and it was further projected that 2 per cent of the population lived in self-contained buildings leaving the remaining 98 % to rooming accommodations connoting shared facilities like the kitchen and the toilet. It was further estimated that by the year 2000, a total number of 1. 5 million housing units would be needed to cater to fast growing population. It is no surprise that there is no more land for the government to build that they have resulted in sand filling of certain areas ( Raji Rasaki, 1988). However an updated article by lookman oshodi,2010 quoting the Lagos ministry of housing 2010 brings the demography to a total number of 91% of the total population living in the metropolis, about 20,000 persons per square kilometre in the built up areas. The occupancy ratio however are 8-10 persons per room with 72. 5% of household occupying one room apartment’s . ince the rate of growth in Lagos has assumed a geometric progression the provision of houses has never been commensurate leading to decay in structure either by quantity or quality. Hence, multiplying the number of inhibited slums from 42 in the year 1985 to over a hundred in 2010. (slums and squatter settlement)also, this à ¢â‚¬Å"urban poor† pay house rents that are almost 50-70% of their income since most accommodations as earlier said are provided by private landlords. Thus, dividing the metropolis into classes such as low income/high density, medium income/medium density, high income /low density. (Lawanson 2007, lookman oshodi 2010) The population in Lagos seems to growing each day with its problems. onetheless, according to aduwo,2011 quoting (Okupe, 2002; Oruwari, 2006), Public housing was birthed as a solution to the proliferation of slums and squatter settlements but Housing specialists have revealed that public housing has failed to provide decent housing, claiming that it has succeeded in segregating tenants by income, race, and that it has isolated residents from the larger community. However, all these problems have resulted in overcrowding of buildings leaving room for no access, urban sprawl, lack of open spaces, high cost of building materials etc. [pic] Population in lagos Source: case study of lagos:geography and climate [pic] Source: case study of lagos:geography and climate Reference 1. MANAGING METROPOLITAN LAGOS ,Raji Rasaki ,Inaugural Programme of the Africa leadership forum, 1988 2. HOUSING TRANSFORMATION AND ITS IMPACT ON NEIGHBOURHOODS IN SELECTED LOW-INCOME PUBLIC HOUSING ESTATES IN LAGOS, NIGERIA: A PhD Thesis: Egidario Bridgette ADUWO,2011 3. THE IMPACT OF URBANIZATION ON HOUSING DEVELOPMENT: The Lagos Experience, Nigeria. ;Aluko O. E; Ethiopian Journal of Environmental Studies and Management ; Vol. 3 No. 3 2010 4. PUBLIC HOUSING DELIVERY IN NIGERIA: PROBLEMS AND CHALLENGES; World congress on Housing Transforming Housing Environments through the Design south Africa, L. M Olayiwola, O Adeleye L Ogunshakin, 2005 5. CHALLENGES AND GROWTH OF DEVELOPMET IN METROPLOLITAN LAGOS, archive. unu. edu/unupress/unupbooks; old United Nations university website. 6. ANALYSIS OF THE INTERPLAY OF MIGRATION AND URBAN EXPANSION, ON HEALTH AND THE ENVIRONMENT: THE CASE OF LAGOS by Okuneye P. A, Adebayo, K, Opeolu B. T. and F. I. Baddru; University of Agriculture, Abeokuta and University of Lagos, Lagos, Nigeria 7. LAGOS: THE CHALLENGES AND OPPORTUNITIES OF AN EMERGENT AFRICAN MEGA CITY by Femi Olokesusi Paper Presented at the NISER Seminar Series on 5 July, 2011 8. HOUSING PROBLEMS IN NIGERIAN CITIES, Josephine Olu. Abiodun, reprinted from the town planning review, vol. 47, no. 4, October, 1976.

Food Law, Food Safety Risk Management The WritePass Journal

Food Law, Food Safety Risk Management Introduction Food Law, Food Safety Risk Management , p. 1). Furthermore, although the food was baked in a bakery in the neighbouring food authority, Elsewhere it will still be appropriate for the enforcement officer in Somewhere Local Authority to investigate this case because this is where the food was actually eaten. Since Mrs Its Disgusting found glass in a scone she purchased from the bakery it is evident that this would be harmful to her health as this is a serious matter which needs to be dealt with accordingly. Under Reg. 6 (1) of the FHR and section 10 of the FSA it is made clear that an enforcement officer authorised under the FSA may serve a notice on the food business operator ordering them to improve their business if they have reason to believe that the business is failing to comply with the Hygiene Regulations. In doing so, the officer will thus be required to; â€Å"State the officers grounds for believing that the food business operator is failing to comply with the regulations; Specify the matters which constitute the food business operators failure to comply; Specify the measures which the food business operator must take in order to secure compliance; and Require the food business operator to take those measures within a certain time period† (Reg. 6 (1) (a)-(d)). In deciding if there are reasonable grounds for believing that the food business operator is failing to comply with the regulations the officer would need to enter the premises and take necessary samples of the food being produced. Under Reg. 14 (1) of the FHR officers are permitted to enter the premises of a food business operator whether they are in or outside the authority’s area. Furthermore, under Reg. 12 the officer will also be permitted to take samples of food or articles so that they can be used as evidence in the event of proceedings. If any samples are taken, the officer will then need to decide whether they should be examined under Reg. 13 and in accordance with their powers under section 9 of the FSA. Regulation EC 178/2002 provides the general traceability provisions which will provided the officer with the ability to trace and follow the food being produced by the baker through all stages of production, processing and distribution (European Commission, 2007, p. 1). As part of the investigation process, it is also necessary for the enforcement officer to send details of the food complaint to; the manufacturer or importer of the food; the bakery where the food was purchased; and the Elsewhere local authority. This is because, the comments provided by the manufacture of the scones and the bakery may be able to establish what caused the problem and an overview of the precautions normally taken will be provided. In addition, they will also be able to demonstrate what steps will be taken in the future to prevent this from happening again. The Elsewhere local authority will also be able to â€Å"provide information on hygiene conditions at the production plant, the precautions taken and how well they usually comply with legal standards† (Embridge Borough Council, 2012, p. 1). Once the investigation has been undertaken, it is then up to the officer to decide whether an offence under the FSA has been committed. Since the bakery has rendered food that is injurious to health, it is likely that an offence under section 7 (b) of the FSA will be found. This is because an article appears to have been used as an ingredient in the preparation of the food which had caused Mrs I-D to sustain injuries. In deciding whether the appropriate action shall be a warning letter, formal caution or prosecution, the seriousness of the offence and the steps taken to avoid any future mishaps will need to be considered. Regardless of this, however, if the bakery is able to demonstrate that they had taken all reasonable precautions to avoid problems such as this from occurring then they may be able to put forward the ‘due diligence’ defense as provided for under section 21 of the FSA. If it can be shown that the person involved in the sale of the scones had acted with due diligence to prevent the commission of an offence from occurring then that person will not be found negligent (Wild and Weinstein, 2010, p. 627). Because of the broad nature of investigations, it is likely that the process will take a number of months since a lot of in-depth information needs to be gathered. This is because unless all of the relevant information is attained, a proper review of the case cannot be mad e and the due diligence defense will not be made out. On completion of the investigation, the officer will be required to write to Mrs Its Discgusting informing of the action that shall be taken. If the matter has been resolved informally during the investigation no further action will be taken and the food business complained of may want Mrs Its Disgusting’s and Mrs ID’s details so that they can send an apology or provide them with compensation. The permission from both ladies will first be needed, however, before any details can be passed on. In deciding what action shall be taken, the officer will need to decide whether the bakery had acted reasonably in order to prevent any risks of contamination and if not a plan of action will need to be devised so that care is taken to â€Å"identify and consider the risks of potential sources of contamination in the surrounding environment† (Brennan, 2006, p. 357). Accordingly, suitable controls will need to be developed and implemented so that future contamination is avoided (Sprenger, 2003, p. 229). This will ensure compliance with Regulation 852/2004 which makes it clear that all food business operators must ce rtify the â€Å"hygiene of foodstuffs at all stages of the production process, from primary production up to and including sale to the final consumer† (Europa, 2009, p. 1) in order to avoid damage to health. Compliance with Regulation 853/2004 must also be certified which lays down the specific hygiene rules relating to the microbiological criteria for foodstuffs. Available Options There a number of different options available for the investigating officer, yet it would be appropriate to serve a notice on the food business ordering them to make necessary changes to the production process in order to avoid a re-occurrence of this problem. This will require the officer to serve a notice on the food business, yet in order to decide what changes need to be made, the officer will be required to interview all those involved with production. Once this has been done, the officer may also want to undertake legal action so that Mrs I-D can make a claim against the food business for breaching their duty of care towards Mrs I-D. In doing so, it will need to be established that the food business did actually owe Mrs I-D a duty of care, that they breached their duty and that the duty caused the harm as in Caparo Industries plc v Dickman [1990] 1 All ER 568. Because Mrs I-D would have been so closely affected by the actions of the food business that they ought to have had her in their contemplation it is clear that they owed her a duty of care. This duty was thus breached by allowing the glass to enter the scone and the glass subsequently caused injury to Mrs I-D’s gums. As a result, it is evident that the food business shall be liable for negligence and that Mrs I-D should be compensated for the damage. This can be settled out of court but if the food business is un-cooperative; legal action will be the next step. And it will therefore be up to the food business to demonstrate that they acted with due diligence (Atwood and Thompson, 2009, p. 346). References Atwood, B. Thompson, K. and Willett, C. (2009) Food Law, Tottel Publishing, 3rd Edition. Brennan, J. G. (2006) Food Processing Handbook, John Wiley Sons. Elmbridge Borough Council. (2012) Food Complaints; What we can do about unsatisfactory food, [Online] Available: elmbridge.gov.uk/envhealth/food/foodcomplaints.htm [28 December 2012]. European Commission. (2007) General Food Law – Traceability, Health and Consumers, [Online] Available: http://ec.europa.eu/food/food/foodlaw/traceability/index_en.htm [29 December, 2012]. Europa. (2009) Food Hygiene, Summaries of EU legislation, [Online] Available: http://europa.eu/legislation_summaries/food_safety/veterinary_checks_and_food_hygiene/f84001_en.htm [29 December 2012]. Food Standards Agency. (2011) Making Every Inspection Count, Internal Monitoring Advice for Local Authority Food and Feed Law Enforcement Team Managers, [Online] Available: food.gov.uk/enforcement/enforcework/ [27 December 2012]. Rochdale Metropolitan Borough Council. (2012) Food, Pests, Pollution and Food, [Online] Available: rochdale.gov.uk/health_and_social_care/food.aspx [27 December 2012]. Sprenger, R. A. (2003) Hygiene for Management, London, Highfield Publications. Wild, C. and Weinstein, S. (2010) Smith Keenan’s English Law: Text and Cases, Longman, 16th Edition.

Development and Training Paper Essay Example | Topics and Well Written Essays - 1250 words

Development and Training Paper - Essay Example On overall increase in the performance standards of the company’s staff and to undertake greater and more demanding roles account for the main reason behind development of this training program. Training needs assessment The opening up of new stores in new locations necessarily means that the company must adapt to the wide diverse demands made by the consumers at different locations. For example, stores located in the densely populated and diverse areas might require selling high proportions of specialty goods in order to cater to the requirements of the customers in that area. This means a thorough analysis of the profile of customers in that area. Moreover, stores located at diverse places would require a wide diversity of technical competencies and skills; The organization also requires an employee base with wide skill ranging who would be able to work with high flexibility and would prove to be more productivity for the purpose of the business (The Times 100, 2012). Design ing the training material The first step towards designing the training module would be set the overall goals in training. ... TESCO requires its employees to deliver high technical competence, problem solving abilities, decision making skills, and delegator skills, customer specific skills. The next step would be to decide the exact methods of attaining the learning objectives. This implies completing a course within a required time under basic supervision, addressing major problems and hurdles in the process, or delegating certain employees for undertaking the tasks. Documentation in the training process is an important step in the process, such as course grades could be allocated; written evaluations could be undertaken; decision making and problem solving approaches could be undertaken. Finally assessment and evaluation of the quality of evidence would highlight whether the required goals and objectives were achieved or not (McNamara, n.d.). Development of the training program Training would be primarily provided through internal sources. This would be provided highly sound and experienced technical prof essionals from within the company. This would primarily cater to developing the technical skill aspects of employees. The main aim would to identify the skill and knowledge gaps of employees. Employees along with their managers would identify these gaps and try to remove them by applying the training and development programs. Moreover, the training module would also try to enable employees develop such skills which help them advance in their careers. The idea would be not only to benefit the organization through the training programs but also provide career benefit to the employees at large (The Times 100, 2012). Online training could also be employed as a potential medium of training as it would be accessible for all at any point of time. Moreover, it would also act a manual for

Why was India so important to Britain between c. 1858 and 1914 Essay

Why was India so important to Britain between c. 1858 and 1914 - Essay Example But in course of time the merchants became the master of the land2. Like Dutch, the Danish started a Danish East India Company in 1616 and established factories at Tranquebar in 1620 and Serampore in 1676. But they sold of their factories to the British in 1845 for Rs. 12, 50,000. The Ostend Company was similarly started by Flemish merchants in 1723. Its chief settlement in India was at Bankibazar, three miles north of Barrackpur. A Swedish East India Company was chartered in 1731. All these projects, after sometime, could not stand the test of time3. The victory of the English over the Spanish Armada and the report of the immense wealth of India spread by the English travellers like Ralph Fitch and Mildenball aroused in the minds of Englishmen a strong desire to trade with the East. With this end in a view body of English merchants applied to Queen Elizabeth for a charter granting them the right of trading in the East. In 1600, Queen Elizabeth granted them under the title, ‘The Governor And Company of Merchants of London trading into the East Indies’ - a monopoly of trade in the East for a term of 15 years. This company is generally known as East India Company. India was the bone of contention between England and France but as a result of three Carnatic Wars fought from 1746 to 1761, the East India Company had established her superiority in India. As a result of her success in the wars amongst European Powers in the 18th Century, England emerged as the mistress of the seas4. There is no doubt that the permanent settlement made the British government highly popular and gave stability to its administration. The causes those were responsible for the success of the English Company. Firstly it was a private enterprise. This created a spirit of self-reliance among the people. They knew that if they worked hard, they would be able to get profits and if they slacked, they were to be ruined. The result was English company

Report for potential investors in tesco plc

Report for potential investors in tesco plc The purpose of this report is for potential investors who are considering buying shares in Tesco plc. The report creates an overall picture of Tescos financial position and provides an assessment of Tescos performance over the last three years. The information used to assess the financial position of Tesco was gathered from the Annual report of the last three years. This information was downloaded from the official Tesco website. From that, the ratios were calculated from the financial statements within the report. Results Ratios 2004 2005 2006 Change (%) Return on capital employed 13.99% 14.77% 17.29% 19.09% increase Net profit Margin 5.17% 5.76% 5.78% 10% increase Asset Turnover 2.72 times 2.56 times 2.99 times 9.03% increase Current Assets 0.56 times 0.57 times 0.52 times 8.77% decrease Quick Ratio 0.35:1 0.35:1 0.33:1 05.71% decrease Gearing Analysis 35.35% 34.52% 28.38% 19.72% decrease Interest Cover 7.75 8.31 9.46 18.08% increase Earning per share 15.05p 17.44p 20.07p 25.01% increase Dividend Cover 2.13 times 2.29 times 2.57 times 17.12% increase Introduction The aim of this report is to provide an assessment of the companys performance over the three year period to a group of potential investors in the company. So this report will use nine financial ratios which are useful for the investors to help them to identify and highlight area of good and bad performance of the company and area with significant change. Therefore this report will consist: brief overview of the history of Tesco and Then it will analyse the profitability, liquidity, investment analysis of Tesco plc. The report will also advice potential investors on whether shares in this company would be a good investment. Brief Background on Tesco plc It is best known that Tesco Company is the leading retailer in the UK and one of the largest food retailers in the world. The retail industry is a highly competitive market. Tesco competes with a wide range of retailers with a wide range sizes and there face increased competition from UK retailers as well as international operators. Tesco also sell non food goods such as electrical goods and clothing. In general Tesco is a successful profitable company which attract investors to invest in the company. General Financial Analysis It is well known fact that the financial ratios become important for investors to help them whether they should buy shares in the business, sell them, or hold on shares which already own them. Therefore ratios analysis helps investors to identify and highlight area of good and bad performance of the company and area with significant change. In addition, financial ratios explain the relation between different figures in the financial statements consequently we could calculate hundred of ratios fro a set of financial statements, because of this we need to know which ratio provide a good and useful information for the investors , the ratios which are applied incorrectly they may be completely useless and misleading. However if they are used correctly they are useful for understanding the performance of the company and interpreting the company account. Ratios describe the relationship between different items in the financial; however the relative usefulness of each ratio depends on what aspects of a companys business affairs are being investigated. In this case of Tesco plc, there are four elements of ratios that are been analysed. These are Profitability, Liquidity and Investment analysis. Return on Capital Employed (ROCE): The ROCE is an important measure of the profitability of a company. This is because it is a popular indicator of management efficiency by contrasting the net profit generated by the company with the total capital employed (traditionally, total capital employed in this case has been taken to be the long term funding). It does not only incorporate the funds the shareholders have invested, but also funds invested by banks and other lenders, and therefore shows the productivity of the assets of the group. ROCE = PBIT ÃÆ'-100 Capital employed 2006 = 2,280 ÃÆ'-100 9,444 + 3742 = 17.29% 2005 = 1,952 ÃÆ'-100 4,563 + 8,654 = 14.77% 2004 = 1,729 ÃÆ'-100 7,990 + 4,368 = 13.99 These calculations show that the return on capital employed has been on steadily increasing for the past three years. For 2006, the ROCE is 17.29% which is 1.94 % above the average for the three years. This indicates that Tesco is using its invested resources more efficiently and that by comparing with other leading retailers, they ROCE are higher. This shows that this figure is more likely to be acceptable to potential investor. Comparison on Return on Capital employed Year Tesco plc J Sainsbury plc Morrisons 2004 13.99 7.99 6.01 2005 14.77 -2.56 5.1 2006 17.29 3.73 -5.63 Average 15.35 3.053333333 1.826667 Net profit margin is another widely used ratio in the assessment of company performance and in comparison with companies in the same industry. Net profit margin = Profit before exceptional items, interest tax ÃÆ'-100 Revenue (turnover) 2006 = 2,280 ÃÆ'-100 39,454 = 5.78 % 2005 = 1,952 ÃÆ'-100 33,866 = 5.76 % 2004 = 1,735 ÃÆ'-100 33,557 = 5.17 % From the calculation, it shows that net profit margin has been increasing slightly which shows Tesco have kept control of its expenses. Group sales have increased consistently through 2004/05 by 9.4% and in 2005/06 by 14.33%. (Note: in order for comparisons, two different figures were used in 05 sales due to the implementation of IFRS while the comparison for 04/05 was accounted under the standard of UK GAAP). As for PBIT, there was not much increase in 2004/05, however between 2005/06 there was an increase of 14.16 %. Comparison on Net profit Margin Year Tesco J Sainsbury plc Morrisons 2004 5.17% 3.23% 6.19% 2005 5.77 -0.99% 2.12% 2006 5.78 1.43% 2.17% Average 5.573 0.012 0.035 This shows Tesco average on net profit margin for the past three years is way above the averages of other leading supermarkets. This illustrates that in 2005 and 2006, Tesco profit margin is miles ahead. From this it can be concluded that it is a profitable company which has kept control of its expenses. The Asset Turnover is a measure of how much sales are generated by the capital asset base of a company. Asset turnover = Revenue (turnover) Capital employed For Tesco plc, asset for the three years are as follows: For 2006 = 39,454 13,186 = 2.99 times For 2005 = 33,866 13217 =2.56 times For 2004 = 33,557 12,358 = 2.72 times this shows that asset turnover is slightly increasing. This is due to the fact that revenue has increased considerably from  £33,557 in 2004 to  £39,454 in 2006 Comparison on Asset Turnover Year Tesco plc J Sainsbury plc Morrisons 2004 2.72 2.47 0.98 2005 2.56 2.57 2.59 2006 2.99 2.61 2.59 Average 2.7566667 2.55 2.053333 This shows that Tesco is above the average asset turnover for the market. From this it can be concluded that Tesco is generating more sales from its capital base. Liquidity Analysis It is clear that liquidity ratios analysis important to the investors as liquidity ratios related to the capacity of business to pay its short term debt as become due, therefore the focus is on the relationship between current assets and creditors due within one year, since these measure short term sources of cash and short term calls on that cash, there are two commonly used ratios which highlight such a situation: Current ratios (current assets/current liability) The current ratio measure the relationship between the companys current assets and its current liability in Tesco Companys balance sheet shows the current asset for 2006 3991 and current liability of 7518, the current asset for 2005 3224 current liability 5680, for 2004 current assets 3139 current liability 5618 Current ratios = currents assets Current liabilities For 2006 = 3919 7518 = 0.52 times For 2005 = 3224 5680 = 0.57 times For 2004 = 3139 5618 = 0.56 times It can be seen from the results the current ratio for Tesco company is stable between 2004 and 2005, however it fell slightly in 2006, this is because of the fact that there was an increase in current liabilities. Quick ratios (Current assets inventories) / current liabilities The quick ratios ignore the stock and concentrates upon those assets which can be turned into cash, the quick ratios important for investors who want to take share in Tesco Company where stock is turned over quickly and the sales are mainly on a cash, consequently the quick ratios compares liquid current assets with current liabilities. For 2006 = 3919 1464 7518 = 0.33: 1 For 2005 = 3224 -1309 5680 = 0.35: 1 For 2004 = 3139 1199 5618 = 0.35: 1 As it can be seen from the results the quick ratios test follow much the same trend on average over the three years of 0.34, which shows low level of resources are tied up in inventory. It can also be concluded that Tesco does not have any cash flow problems and therefore the company is using its resources well. Gearing Analysis An important determinant of a companys capacity to develop is its funding structure. This very important as it enables the company to assess its capacity to satisfy its long term commitment. The financial structure of a business is an important consideration when assessing the financial health of any entity. The most commonly used structure is the Gearing ratio, which quantifies the relationship between debt and equity. The higher the ratio then the more vulnerable the company is perceived to be this is because there is a high and fixed call on its profit before equity can be satisfied. This means that a company that has high gearing will has deal with its long term commitment such as long term debt and this in turn means they will be less fund for payment such as dividend for shareholders. Gearing Ratio = Long Term Debt ÃÆ'-100 Capital Employed For 2006 = 3742 ÃÆ'-100 9444 + 3742 = 28.38% For 2005 = 4563 ÃÆ'-100 8654 + 4563 = 34.52% For 2004 = 4368 ÃÆ'-100 7,990 + 4,368 = 35.35 % From these calculations, it shows that the long term debt has been decreasing steadily for the past couple of years while on the other hand the equity of the company has been increasing steadily, which indicate the finances of the company as moving towards equity and less on debt. Interest cover ratio: It is important to recognize that the interest cover ratio is important for investors as they measure the amount of profit available to cover interest payable. The high interest cover ratio it means that the company or business is easily able to meet its interest from profit. in the same way a low value from interest cover ratio it means that the business is in danger to meet its interest obligations therefore the profit available to the shareholder will be very low. In Tesco company the measure of interest cover ratio as follow: Interest cover ratio = profit before interest and tax Interest charge For 2006 = 2280 241 = 9.46 For 2005 = 1952 235 = 8.31 For 2004 = 1729 223 = 7.75 The measure of interest cover ratio of Tesco within the last three years tells us that the company maintaining increase in interest cover ratio 7.75, 8.31, 9.46 as a result Tesco is able to meet its interest from the profit therefore the profit are sufficient to pay the interest it owes and the profit available to the shareholder increased from 1729m in 2004 to 2280 in 2006. Investment Analysis Potential investors who want to buy shares in a company want to be able to have the information they require to compare the benefit from their investment. There are two measures of benefit to the investor: One is the profit of the period (usually referring to the profit available for the ordinary shareholders). The other is the dividend, which is the amount actually paid to the shareholders. Earning Per Share (EPS) EPS is a widely used measure of business performance and progress, and importantly the percentage change from year to year should be monitored for the trend. It explains to an investor the kind of return they could receive for each share during the accounting period. Therefore, it is important ratio as earning per share works out the average amount of profits earned per ordinary share issued. In accordance with FRS 14 Earnings per share, EPS must be disclosed on the face of the income statement. This means that when producing financial statements companies must disclose the EPS figures for investors to see. EPS = Earnings (profit) Number of equity share in issue For 2006 = 1,570 7,823 = 20.07p For 2005 = 1,344 7,707 = 17.44p For 2004 = 1,100 7,307 =15.05p As it can be seeing there has been a steady increase of EPS for the past of years. This indicates that potential investors would have an attractable return on there shares Dividend Cover The dividend cover ratio is another important ratio for potential investors as it measures the proportion of available profits which are issued to shareholders and the amount which is reserved by the company. In another words, the dividend cover ratio tells the investor how easily a business can pay its dividend from its profit. Dividend Cover = Profit after tax Ordinary dividend For 2006 = 1,570 609 = 2.57 times For 2005 = 1,344 587 = 2.29 times For 2004 = 1100 516 =2.13 times The measure of dividend cover ratio of Tesco plc for the last three years has shown a steady increase. It increased slightly from 2004 to 2005 and again in 2006. A high dividend cover means that a company can easily afford to pay dividend. For the last year (2006), the dividend covers shows that for every  £2.57 made in the profit,  £1 was issued to the shareholders Investment Advice Sales have risen by 14.94 %to  £39,454m Pre-tax profits are up by 24%, with earning per share increasing by 25% in 2006 from 2004. This result shows the excellent performance from all aspects of Tesco strategy. This is an extract from the Directors report for 2006: The directors recommend the payment of a final dividend of 6.10p per ordinary share, to be paid on 14 July 2006 to members à ¢Ã¢â€š ¬Ã‚ ¦. Together with the interim dividend of 2.53p per ordinary share paid in December 2005, the total dividend for the year will be 8.63p compared with 7.56p for the previous year, an increase of 14.2% This shows that Tesco plc strong performance is been implemented in dividend as can be seen in the increase of payment. Tesco faces strong competition from other leading supermarket, however with the management strategy implemented by Tesco and their huge experience which has given them good image (every little help!) and trust in the market as a leading retailer. Therefore, it will be worthwhile investment for those who are interested in earning money through share price fluctuations to invest in Tesco. Conclusion This report has used nine ratios to analyse and interpret the financial position of Tesco plc. There are many other ratios that could be used and will also assist in the interpretations of the financial accounts. Although there are limitations to ratio analysis such as; ratios are based upon past performance and hence there are historical data. However ratio analysis is one of the best ways to analyse the financial performance of a company. This is because, it allows managers to spot any problems and therefore concentrate resources on that area. If ratio analysis is interpreted the right way then it can be useful tool of results which can be understood by accountants and non-financial users such potential investors.

Growth of Online Shopping Around the World Essay -- Technology, Amazon

Introduction When Amazon.com launched its online retailing strategy in 1995 and began to reap benefits, many analysts viewed doing business and shopping online with great optimism (Denise, 2004). They anticipated for a day when people would be able to order their shopping items from the comfort of their homes. Consequently, customers would see little or no need at all to physically visit traditional in-stores to make their purchases. It is now a decade and a half down the line and online shopping has taken the business world by storm with more and more companies opting to test the sweet waters of online retailing. Analysts foresee a rapid growth of online shopping in the next decade or so though some reports still show a significant number of consumers across the world who have never attempted to do their shopping online. The growth in popularity of online shopping points to the presence of certain advantages, which are not available in traditional shopping. At the same time, it alludes to the existence of differences between the two types of shopping. This paper shall discuss the growth of online shopping around the world and provide statistical evidence of this growth in the United States, Australia, and the United Kingdom. It shall also elucidate the differences between online shopping and traditional shopping. The Internet has significantly transformed how consumers shop for goods or services. While traditional in-store shopping still dominates in some industries in various countries, it has done little to increase convenience, efficiency, and ease of shopping and making travel arrangements. According to a survey conducted by the Nielsen Company in March 2010, there are some products that are universally bought online ... ...d shoppers have to keep themselves up to date with the ever evolving technology. On the other hand, technology used to facilitate traditional in-store shopping has remained the same for many years and does not change as often as is the case in online shopping. Online shopping is not dependent on geogaphical location as transactions can take place across borders. Consequently, access to items offered by retailers is not impeded by factors related to geographical location. In other words, consumers whether local, regional, or international can shop anywhere in the world through the Internet. On the other hand, traditional shopping is limited by geographical considerations. As a result, the number of customers who are able to access the premises may be greatly determined by the location (Differences Between Online Retail & Traditional Retail Businesses, 2007).

Motorcycle & Sweetgrass Journal

Journal 2 â€Å"Motorcycle & Sweetgrass† brought up two major conflicts at the very end of the novel. The first conflict was based on a battle between John and the raccoons (Person vs. Nature) John was in the forest having a talk with the raccoons and giving them food. The raccoons were all surrounded around the bushes, resemble in ready to have a fight with the Nanabush. The animals reproached John and he was so furious. The clash with the raccoons shows the mysterious hidden relationship between them.John even wanted them to disappear, he burnt the forest and the creatures began to melt into the forest background. This conflict appeared the wicked and wild behaviour of the spiritual creature. The second conflict was the combat between John and Wayne. (Person vs. Person) A cousin of Virgil, Dakota, was missing and Virgil believed she went to find John for a talk. He was worried about Dakota since John was a Nanabush, she might fall into trouble. Soon or later, Virgil and Wayn e went to find John and to see if Dakota was with him or not.Meanwhile, they witnessed the fight of the raccoons and the Nanabush. Wayne was fearful that the Nanabush would hurt Dakota and everyone in the community and he was dangerous, so, he decided to have a fight with the creature. Wayne defiled his motorcycle and they started their battle. He was injured so seriously, the Nanabush even threw a raccoon towards his face. Of course, John won the battle. This conflict was the most incredible part of the novel, the writer portrayed every scene of their fight and it showed the courage and confidence of this character.The first significant quote of the novel was (1) â€Å"Who is this man? Nobody in his family was cool enough to know this guy like this, Virgil thought† (p. 47). This was the situation when the white man, John, came to the Otter Lake and visited Virgil’s grandmother, Lillian. John was white and he was different from everyone of them in the community. The wr iter described the word, â€Å"cool† as the character of the white man. This compared the differences of the white community and the native community.The native community was more old fashioned and traditional, but the white community was more modern. This quote shows that the natives believed they had a lower status by comparing the whites. The two communities couldn’t be connected together. John was a symbol of the white man attacking the native community, it was hard to believe that a white man could have a close relationship with a native woman. This quote showed a theme of an interracial relationship. The second quote of this novel was (2)â€Å"He was dancing! He was a blur of movement one minute, and almost still the next.At times John was silhouetted against the almost full moon. Virgil was mesmerized. This wasn’t any type of dancing he’d seen on television, or at powwows. It had an ancient, tribal quality, and yet at the same time, a modern, inno vative style. And just about everything in between. † (p. 130) In this quote, the writer described the unique character of John. He was not only a normal white man, but a man dancing in a strange style. I believed the writer would like to use this as implying the readers that John was not a normal human, but a Nanabush.He used different abnormal behavior and actions of him as well as his style of dancing, â€Å"ancient and modern†, to let the readers predict the character of John. The writer illustrates the creepiness of John, on how perilous he would affect on Maggie and the whole Otter Lake community. The last quote of this novel was (3) â€Å"Dakota might be in trouble, thought Virgil. With John, since nobody really knew his game, that was a strong possibility. Virgil weighed his options and decided Dakota’s situation was the most important. † (p. 85) When Virgil noticed Dakota, his cousin, was lost, he knew the most important thing for him to do was to find his cousin, not to go to school. Although skipping classes was not a good example, he knew that finding his cousin is more important. The writer depicted the matured attitude of Virgil. At the beginning of the story, he was a rebellious kid who always skipped classes, however, after the arrival of John, he started to become a grown up child. I believed John is a symbol to Virgil’s maturity and this quote showed a theme of growth and self discovery.