Isolation of Essential Oils from Eugenol Essay Example for Free

Isolation of Essential Oils from Eugenol Essay Anyone who has walked through a forest or who enjoys the variety of fragrances that flowers have to offer knows that many plants and trees have their own distinctively pleasant odors. These odors are due to the volatile essential oils, many of which have been prized commodities since ancient times. If a list of commercially important essential oils was compiled the list would exceed 200 essential oils. Thyme, garlic, peppermint, and spearmint are but a few examples of the many essential oils used in commercial goods. Essential oils have many applications in the world that can range from flavor enhancement to perfumes. Some oils have also been found to have medicinal properties such as antibacterial and antifungal abilities. Chaulmoogra oil is one of the few know curative agents for leprosy. The oils can also be used in the paint industry, where turpentine is used as a solvent for many paint products. These oils are often found in the intracellular spaces and glands of plant tissue. The oils may be located throughout the entire plant, but are often concentrated in the seeds or flowers of the plant. Many of the essential oils are steam-volatile and can undergo steam distillation to isolate the oils. Another method of oil extraction from these plants is through both solvent extraction and pressing methods. The functional group that is mostly responsible for the characteristic odors and flavors of fruit and flowers is the ester. Although the ester composes most of the scents it is not totally responsible for all scents. Beside the ester functional group an essential oil can also possess complex mixtures of hydrocarbons, alcohols, and carbonyl groups. These compounds usually belong to one of two groups of natural products called terpenes or phenylpropanoids. Investigation of the essential oils in the nineteenth century found that many of the pleasant odors we obtain from nature contained exactly 10 carbon atoms in the compound. These 10-carbon compounds later became known as terpenes if they were hydrocarbons. If the compound contained oxygen in an alcohol, ketone, or aldehyde functional group it was called a terpenoid. It was eventually found that minor and less volatile compounds containing 15, 20, 30, and 40 carbon atoms also exist that give an odor. Since the 10-carbon compounds were at the time called terpenes they changed the name to monoterpenes. The other terpenes were classified in the following way. Class

Management Commitment And Participation Of The People Marketing Essay

Management Commitment And Participation Of The People Marketing Essay The firm applied advanced of human resources and for Social Policy;  the management style is based on management commitment and participation of the people. In addition, the company had a responsible corporate citizen, committed to the government, shareholders, customers, communities and consumers. Environmental objections are committed to business practices and taking into account the need to conserve natural resources and save energy is environmentally friendly. For example, guarantee that all products manufactured, imported and distributed  by Nestle Malaysia are certified HALAL by authorized Islamic certification bodies. Perhaps, Company shares through achieving sustainable and profitable long-term growth has been delivered. This brand has a wide area. Branding strategy is corporate. Part of the branding strategy is the brand plan for each product. This is an integrated strategy. The brands of Nestle area key power but the executive levels are very aware today that brands alo ne are not enough to win. From its beginning, Nestle developed its commerce globally and became aware of the  truth that food products have to be  closely connected to restricted  eating and  social custom. That is why Nestle form the very start has always shown reverence for various cultures and traditions. Nestle activities to complete self as much as feasible into the cultures and  traditions where it  is present, adding also to  the local setting its  own set of values. so, Nestle embrace cultural and social diversity and does not discriminate on the basis of origin, nationality, religion, race, gender or age. Also, Nestle believes that is activities can only be of long term benefit to the company if they are the same time useful to the local community. exactly, the environment is changing very quickly and in particular customers are looking for answer  to their concerns. To our view, global thinking and strategies can best be expressed through local action and commitment as showed as Nestle Malaysia. And of course, Nestle practical think globally act locally as well as thinking out of the box idea in their product and distribution with the help of strategic global marketing. Milo, a brand of chocolate/malt powder beverage of Nestle, which is once known in the past as number one brand in customers mind in Thailand. But nowadays Milo is not that well perceived as before but another manager, Oval tine, had triumph the position and become market leader in the segment. With the character of Nestlà © that employ general marketing strategy such as cost direction in business, the company is currently struggling hard time finding the competitive advantage for Milo, when it comes to face to face with its main rival, Oval tine. The main goal of this marketing plan is to provide marketing strategies, Explain and predict sales Milo become the market leader in Thailand. Models and concepts of modeling, SWOT analysis and Porters Five Forces analysis is being conducted to assist in the analysis of external factors. Product Milo the energy drink nestled into the Indian market in 1996. The responsibility of launching the drink in a market dominated by time tested Bourn vita and Boost was no easy task for Nestle. As the fifth player in the market for a coffee drink. , the drink was up against Bourn vita which had an enviable market share of 40% and SmithKline Beecham, a strong contender, especially in the south. After creating the worlds number one energy drink Milo and taste benefits, the attention shifted to presenting its emotional benefits too. Focus now on rebuilding brand image of a delicious energy drink into the extra energy to winning. New Milo is for active, growing children its energy releasing B vitamins give them the extra energy, vitality and stamina that make them winners. Milo, the chocolate milk beverage targeted essentially at teenagers in the urban marketplace is the fastest selling product here. The only surprise to find that rather than being grand children, senior citizens want to ma ke it your everyday bottle. Place Distribution is the most important thing next to sales. Sales are not possible if the distribution network is not effective. If product is not available in the market at the right place at the right time and the customer may lose a great product that can change it. Price The firm has several options for addressing the price. Domestically Nestlà ©s Milo manufactured finished products may be force to switch to offshore sourcing of certain component to keep costs and prices competitive. Another factor has been audited by the distribution in target markets. An extension or ethnocentric pricing policy describe that the per-unit price of an item to be the same no matter where in the world the buyer is situated. Nestlà ©s executive level monitor consciously on the freight and import duties according to the Malaysia market. Compliance or polycentric pricing policy allows the subsidiary or affiliate managers or independent distributors to create whatever price they feel is in very good condition. Price strategy Price strategy is a basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle. The third type of pricing strategy is to manipulate prices, the pricing and the pricing is made available.  Malaysia, Nestle Milo current practice is that the market penetration pricing to charge relatively low price for a product where Nestle (Milo) initially as a way to reach a mass market. Choose the price strategy When Nestle Milo has decided the product price, they will choose a good pricing strategy that will give them direction of price movements over the Product Life Cycle. Nestle Milo are knowledgeable about higher prices. If the higher prices, they have to produce a good quality of Milo. In addition, competitors may affect pricing strategy. For example, if Nestle Milo introduces a new product that same with competitors, the price will be restricted and close to the price of competitors. But Nestle Milo able to differentiate and convince consumers they can set a higher price for the product. Promotion Using the consumer insight that mothers are driven by a need to support their sons hard work and help them succeed when under pressure, the agency launched an impressive ad campaign. The study showed that the campaign needs to Milo as a drink with two strong power delivery and taste perception. Thus a strategy was adopted wherein the agency targeted children belonging to the age group of 7-12 years and through them their mothers. The strategy worked and led to a 40% volume growth, with the market share growing to 8.8%. The agency came up with commercials addressed to children as the target audience and mothers as the secondary audience. The campaign proved to be successful with the drink emerging as the No. 2 brand in 3 out of 4 zones, and its market share growing to an impressive 11.4%. Not satisfied, the agency undertook another research, which revealed two issues that needed to be addressed immediately. Firstly the pester power, which in this category was not very high and secondl y, the fact that Milo s brand promise of winning was unfortunately being perceived as an advertising/ marketing claim. Hence Nestle embarked into yet another campaign, this time with the intention of improving the brand image by overcoming a mothers apprehensions and getting her to subscribe to the brand promise. Other than that it takes an active part in the sponsorship of sports event at both school colleges, they also distribute T-Shirts having Milo logo and other such apparel. This helps company to promote their product as well as build their Brand Awareness. Promotion Recommendation To make Milo being well-known all over the country, they should make a lot of  promotions which is dissimilar with the promotions that they have done before.Afterwehave  been  through  the  discussion,  we  have  all  agreed  that  Milo  can  wider  their  promotion by making a contest or a lucky draw. They just need to put a lucky number  behind the packaging and the end of the month, the will pick a lucky number and the lucky customer can redeem their price at the nearest Milos branch. Besides that, Milo can make a different packaging style. They should combine all their products in one pack that include mini pack of Milo powder, Milo energy bar, Milo fuse, and so much more. By doing this style of packaging, Milo can make all your delicious product promotion to a customer so that they are able to try all the products produced by Milo . If they interested with one or all the product, for sure they will but it again and again. This will increase the profit. .

Business Plan Bakery Example

Business Plan Bakery Example The Planning Process in Appendix A has been used as a planning tool to ensure the successful setting up of the new bakery. Starting with Gathering information, the business will start as a sole trader, with me being its owner as self-employed. According to Gov.uk (2016) self-employed means to run your own business as an individual. The bakery will be called The Farmhouse as seen in Appendix F . As a result, it will derive its name from the animal and vegetable shaped bread it will be selling, this being the competitive advantage, which resulted from Porters Five Forces Analysis ( Appendix B ). In terms of market research, it has been found that the business can effectively target families with children aged between 5 -14, which represents 14% of Lutons population, as seen in Appendix D . This gap emerged, after assessing the strengths and weaknesses of, Greggs, one major competitor within the bakery industry in the Mall (Appendix I) . Greggs has two shops and provide products similar to the new bakery, such as pastries, bread, and doughnuts (Appendix H ). According to Marketline (2016), one of Greggs weakness is concentrated operations, which means the business, fails to meet the needs of a specific market in terms of geographic reach. Greggs, is also facing tough competition from emerging businesses, as well as existing competitors, by lacking products, service offering, store size and quality food (Marketline, 2016). Therefore, the future goal of The Farmhouse will consist of providing creative and high quality products, to promote wellbeing within the community it operates, as seen in Appendix J . The legal requirements to start a bakery include Sale of Food licence and Food Preparation Licence approved by Luton Borough Council (GOV.UK, 2015), The General Food Law Regulation and The Food Safety Act 1990, also an inspection of the premises must be carried out to ensure Health and Safety regulations are put in place (HSE, 2016). According to Boddy (2014, p. 6) the first aspect of successfully planting the roots of a business, is to draw resources from the external environment making up the Inputs, as seen in Appendix E . One of the most important resources is Premises. The Farmhouse will be located in Luton Mall, with an average weekly footfall of 405,000 people (Completely Group, 2016). Feasibility is a key, therefore, a small unit has been chosen, costing  £1500/month, to minimise costs and ensure a profit will be made without any irrelevant costs being incurred see Appendix K . Capital is also important in funding the business, to acquire its resources. Therefore, a loan will be borrowed, amounting  £22,000, which will be used on different aspects, to successfully start the business venture, as seen in Appendix L . In terms of Labour, to ensure viability and to meet the vision of the new business, it is needed to have two part-time bakers, two part-time kitchen porters and two part-time shop assistant s and myself as an accountant and decision maker, which is analysed in stage 2 of the Business Plan. Stage 2 Human Resources Boddy (2014, p.340) states that to ensure that a business has the right employees to achieve its goals, the process needed to be taken into consideration is human resource planning, job analysis, employee recruitment and selection. The same approach will be taken by The Farmhouse. A job analysis will be compiled for each individual role, followed by recruitment process and selection. Job Analysis Job analysis starts with collecting data to create a job description, which will outline the purpose of a job, main responsibilities and duties, followed by what skills and knowledge the individual should possess (Boddy, 2014 p.348). The data will be collected from interviewing and observing current job holders, as suggested by Boddy (2014, p.340). It is also efficient to ensure, that as a new business, employees with broad competencies will be taken on board. This can ensure that more skills can be leveraged upon, being more cost effective. As the business owner, I will directly manage every employee as I possess skills such as finance, customer service, business focused, customer friendly, Patience, Passionate and always looking for new opportunities. Through the job analysis it has been identified that two part-time bakers will be needed to carry out the activities of the new business, ensuring its success. Therefore, a job description (JD) has been complied as seen in Appendix M . The baker will play an important role within the business, as it will provide creativity, efficiency and innovation. Next employees needed to start the business are the kitchen porters. They will also play a key in effectively running the business. They will be the second on the line employees, responsible with ensuring that the business adheres to the Food and Hygiene Act. These are all outlined in the Job Description (Appendix N ). Finally, shop assistants, are also valuable to the business, as they will sell the baked goods. They will also receive feedback and communicate to the owner, along with ensuring that customers receive the best service possible (Appendix O ). Recruitment and Selection Process Using Appendix P as the process, starting with advertising, the vacant positions will be advertised through jobs websites, such as Indeed, Total jobs and Monster, also on the Malls website. After the deadline, every application will be assessed and carefully selected for the interview stage. Boddy (2014, p.351) stated that interview remains popular as it has low direct costs, therefore, it results in being an efficient practice in selecting suitable candidates. However, before finalising recruitment, on crucial step in selecting candidates, is to see them perform on the job. Gov.uk (2016) states that a work trial is a way of trying out a potential employee before offering them a job, therefore, every employee will be supervised under a trial shift, to check performance and suitability for the job it is required to performed. An employees handbook will be compiled, to ensure the right policies and procedures are followed by all employees within the business. Stage 3 To successfully manage the new business, an organizational structure has been created ( Appendix Q ). Thus, having a narrow span of control, staff will have more responsibilities which results in less supervision and communication is effective, leaving no space for business processes waste (Boddy, 2014 p.311). Starting with the inputs, using Appendix E , after taking out a loan, renting premises, bargained with suppliers on best prices, and hired the most suitable employees, these resources go through operational processes. Part of the competitive advantage, baking is going to be done on site, having fresh baked goods, will overcome competition and attract customers. As customers come in, there will be refrigerators on each side of the shop, with fresh baked goods, such as animal and vegetable shaped bread, pastries, savory goods and doughnuts. They will then pick their goods and come at the till where the shop assistant will politely and eagerly serve the customer, asking for anonymous feedback at the end of customer service. Then the goods are handed back to the customer in a bag with a receipt, all these outlined in Appendix R . It is very important to collect feedback from to continually improve on the processes, and reduce processes waste. No matter the role, people contribute to the overall performance of a business by adding value to the resources.   Thus, the feedback gathered from customers is communicated to employees through the monthly appraisals along with an assessment of everyones performance., this being part of the continuous improvement process (Boddy, 2014 p.434). Therefore, a human relations culture approach is taken, where the owner takes part in the daily tasks of the business, and makes employees attached, thus encouraging cohesiveness and membership, leading to effectiveness and commitment (Boddy, 2014 p. 85) The kind of baked goods The Farmhouse will provide are listed in Appendix S. All the mentioned aspects, such as fresh baked goods, low prices and with the vision of looking after the welfare of people within the community lead towards a good reputation, thus, being able to expand and grow as an organisation to make a profit. As a future vision, using the continual improvement process model in Appendix T , adaptability will be a key aspect in assimilating feedback and changes occurring within the Macro and Micro environment, to create sustainability (Boddy, 2014 p29). Boddy (2014 p. 29) also states that by making productive use not just of financial and physical resources, but also of human and natural ones companies will excel in achieving its goals and, thus becoming successful. This is the exact strategy the small bakery will adopt to achieve success. To reduce baked goods waste, one of the ways of approaching it, is that all the former foodstuffs can be converted into quality animal feed, therefore, avoiding negative impact on the environment. Thus, all foodstuffs that are not suitable for human consumption, can be resold to factories that produce animal feed, whilst complying with the Feed Hygiene Regulations EU 183/2005 (Featherstone, 2013). Another way is to adhere to the Weights and Measures Act 1985, which states that bread should be produced in smaller quantities, such as 400g a loaf, to avoid waste (Legislation,1985). References Agency, F.S. (1999) Related pages. Available at: https://www.food.gov.uk/business-industry/startingup (Accessed: 21 December 2016). Agency, F.S. (2015) Food Safety Act 1990. Available at: https://www.food.gov.uk/business-industry/guidancenotes/hygguid/fsactguide (Accessed: 13 December 2016). AXA (2016) Employers liability insurance from AXA business insurance. Available at: http://www.axa.co.uk/insurance/business/employers-liability/ (Accessed: 22 December 2016). Boddy, D. (2014) Management an Introduction. 6th edn. Harlow: Pearson Education Limited. Completely Group, R. (2016) The mall Luton, Luton, Bedfordshire, south east capital regional shopping centre portfolio. Available at: https://completelyretail.co.uk/portfolio/CapitalRegional/scheme/3675/index.html (Accessed: 15 December 2016). Completely Retail (2016) Properties to let. Available at: https://completelyretail.co.uk/search/properties?dataset=/search/propertiesin_place=Lutonin_place_id=21840 (Accessed: 21 December 2016). Doves Farm Foods, L.T.D. (2016a) Organic plain white flour. Available at: https://www.dovesfarm.co.uk/flour-and-ingredients/sack-flour/organic-plain-white-flour-25kg/ (Accessed: 25 December 2016). Doves Farm Foods, L.T.D. (2016b) Quick yeast. Available at: https://www.dovesfarm.co.uk/case-quantities/quick-yeast-16x125g/ (Accessed: 25 December 2016). Featherstone, P. (2013) Recycling food waste into animal feed within the UKs legislative framework. Available at: https://waste-management-world.com/a/recycling-food-waste-into-animal-feed-within-the-uks-legislative-framework (Accessed: 22 December 2016). GOV.UK (2015) Food business registration. Available at: https://www.gov.uk/food-business-registration/luton/apply (Accessed: 21 December 2016). GOV.UK (2016a) Choose a legal structure for your business. Available at: https://www.gov.uk/business-legal-structures/sole-trader (Accessed: 20 December 2016). GOV.UK (2016b) Income tax. Available at: https://www.gov.uk/income-tax/overview (Accessed: 13 December 2016). GOV.UK (2016c) Jobcentre plus help for recruiters. Available at: https://www.gov.uk/jobcentre-plus-help-for-recruiters/work-trials (Accessed: 22 December 2016). Greggs PLC (2016) Pasties and Bakes. Available at: https://www.greggs.co.uk/pasties-and-bakes (Accessed: 17 December 2016). HM Government (2010) The minister of agriculture, fisheries and food, the secretary of state for health and the secretary of state for. Available at: http://www.bakersfederation.org.uk/pdfs/the-bread-industry/bread-and-flour-regulations.pdf (Accessed: 13 December 2016). House, C. and Group Ltd (1995) Food safety (general food hygiene) regulations 1995 food safety (temperature control) regulations 1995 industry guide to good hygiene practice: Baking guide. Available at: http://www.iccservices.org.uk/downloads/fsa_leaflets/fsa_complete_baking_guide.pdf (Accessed: 13 December 2016). HSE (2016) Bakery products. Available at: http://www.hse.gov.uk/food/bakery.htm (Accessed: 22 December 2016). Legislation, G.U. (1985) Weights and Measures Act 1985. Available at: http://www.legislation.gov.uk/ukpga/1985/72 (Accessed: 22 December 2016). Luton Gov.uk (2015) Luton 2015 mid-year population estimate. Available at: https://www.luton.gov.uk/Environment/Lists/LutonDocuments/PDF/Planning/Observatory/Luton%202015%20Mid%20Year%20Population%20Estimate.pdf (Accessed: 15 December 2016). Marketline (2016) Greggs Plc Analysis. Available at: http://0-advantage.marketline.com.brum.beds.ac.uk/Product?pid=FBCD9CA4-3C70-4E3F-9C43-57E5E1E23E11view=SWOTAnalysis (Accessed: 20 December 2016). NCS (2016) Baker. Available at: https://nationalcareersservice.direct.gov.uk/job-profiles/baker#skills-required (Accessed: 22 December 2016). Porter, M.E. (1979) How competitive forces shape strategy. Available at: https://hbr.org/1979/03/how-competitive-forces-shape-strategy (Accessed: 14 December 2016). RSPH (no date) National league tables. Available at: https://www.rsph.org.uk/our-work/campaigns/health-on-the-high-street-/nationwide-health-on-the-high-street-/national-league-tables-.html (Accessed: 13 December 2016). Virgin Start Up (2016) Start up loans. Available at: https://www.virginstartup.org/start-up-loans (Accessed: 22 December 2016). Appendices Appendix A The Planning Process (Boddy, 2014:183) Appendix B Porters Five Forces Analysis      Ã‚   Appendix C PEST Analysis (Gov.uk, 2016) Appendix D Luton Population (Age Analysis) Appendix E Transformation Process Model (Boddy 2014 :6) Appendix G Examples of Products to be sold by The Farmhouse Appendix F The Farmhouse Business Logo Appendix H Greggs products (Greggs PLC, 2016) Appendix I Greggs Swot Analysis (Marketline, 2016) Appendix J Vision and Values of The Farmhouse Appendix K Premises (Completely Group, 2016) Appendix L Costs incurred in the first month of operating Appendix M Job Description Baker Appendix N Job Description Kitchen Porter Appendix O Job Description Shop Assistant Appendix P Recruitment and Selection Process specific to The Farmhouse Appendix Q The Farmhouse Organisational structure Appendix R The Farmhouse Business Process Map Appendix S List of prices Appendix T Continual improvement process

Marriage In Pride and Prejudice Essay -- English Literature Austen Ess

Marriage In Pride And Prejudice Even from the first sentence, we can already tell that the novel will be focusing on the essential issues of marriage and wealth. It stresses a society where marriage is a very important and essential preoccupation. Marriage and wealth are closely linked together; the richer a man was, the more probable it was that single women would want to marry him. Austen tries to summarize the two main issues in her opening sentence "It is a truth universally acknowledged, that a single man in possession of a good fortune, must be in want of a wife." This doesn't appear to be the author's own 'voice'. She seems to put it in a very sarcastic way. The writer says, "it is a truth universally acknowledged..." this appears extremely exaggerated since she expresses that this is a fact recognized by the whole universe, which is highly unlikely. The next part of the opening sentence that sounds ironic is "a single man in possession of a good fortune, must be in want of a wife". She uses the word 'must' to put across the certainly in her statement. However, this isn't true of all rich, single men; not all wealthy, single men are seeking a wife. Her tone of voice seems to be very satirical, in the sense that she exaggerates everything to make it look extremely foolish, because she clearly disagrees with it. To some extent, she distances herself from society and this is very evident in her choice of words. The words 'truth' and 'must' indicate an ironic voice and already, from this first sentence, we can ultimately tell the kind of society the characters live in and what their concerns about life, marriage and wealth are. The view put forward is what other people in her society believe and she... ...ot marry for money, but for love. The opinion formed of the Gardiners is totally opposite to those formed of Wickham and Lydia. The connection between Bingley and Jane is the first that is spoken of as a possibility of a marriage, but it nearly doesn't happen because Jane doesn't show her feelings as picked up by Charlotte Lucas. The marriage between Bingley and Jane succeeds because they both share similar interests and intellect. Elizabeth and Darcy are the central focus throughout novel and it is possibly the best example of a good marriage. They have to overcome a lot of difficult situations before they finally get engaged. Two of the main obstacles were prejudgement and pride. Austen is trying to say that marriage should be given careful thought and consideration. It should not be solely for money and status, but for intellect and true love.

Save the Whales Essay -- Environmental

Every day whales around the world are being killed. Although some whales are being killed for scientific purposes, the majority of them are killed for their meat by poachers or whalers working for different countries. Careless companies dispose of their waste incorrectly, and in today's society, people do not seem to care about anything but themselves. Arguments can be made both for saving the whales and for killing them; this is a topic that has caused much debate over the past two decades, not only in America, but worldwide. Environmentalists and international governing groups have squared off against whale poachers and countries who ignore the laws governing whales, in an attempt to stop the ongoing, unnecessary killing. All marine life is affected by careless human activity. Man-made pollution from dumps, chemical plants, power plants, and pesticides all flow and spread throughout the oceans of the world. Even low-level contamination of small, sometimes microscopic species causes highly concentrated contamination in larger marine life, specifically whales. Plankton, the main constituent of a whale's diet, is a very small organism that drifts for thousands of miles throughout the oceans, and as a result easily spreads pesticides, toxic metals, and other contaminants throughout the ocean. When the whales eat the plankton, the small amounts of contamination become highly concentrated in the whales systems. Pollution, although deadly over long periods of time, is not the main source of unnecessary whale death worldwide. A recent technology developed by the US Navy emits the most powerful sound known to man straight into the ocean waters. This newly developed technology, called low frequency active sonar (LFA), was d... ...a> http://files.hsus.org/web-files//PDF/SWNW_IWCFctsht.pdf Defenders of Wildlife: http://www.defenders.org/wildlife/new/marine/whales/climate.html Save the Whales: http://www.savethewhales.org Humane Society of the U.S.: http://www.hsus.org/ace/19943 WhaleNet Population Study: http://whale.wheelock.edu/whalenet-stuff/ser_population.html Pro-Whaling Nations: http://files.hsus.org/web-files//PDF/SWNW_ProWhalingFctsht.pdf

Samuel Gander

Samuel Gander Mr. Dunham English 102 April 25, 2012 Farming On a Whole New Level Although people have worked in agriculture for more than 10,000 years, advance in technology assisted with maintaining and protecting land, crops, and animals. The demand to keep food affordable encourages those working in the agriculture industry to operate as efficiently as possible (Newman & Ruiz, pp. 33-47). Almost all people and companies in the industry have many acres of land they must maintain, and it is not always feasible for farmers to take frequent trips around the property to perform basic tasks such as watering soil in the absence of rain.The number of people-hours required to water soil manually on several thousand acres of land might result in businesses spending thousands of dollars in labor and utility costs. If the irrigation process is automated, sensors detect how much rain has fallen recently, as well as whether the soil is in need of watering. The sensors then send this data to a c omputer that processes it and decides when and how much to water. In addition to keeping the soil moist and reducing maintenance costs, computer also can utilize sensor to analyze the condition of crops in the field and determine whether pests or diseases are affecting the crops.If sensor detects pests and/or diseases, computers send a notification to the appropriate individual to take corrective action. In some cases, according to Brewster, the discovery of pests might trigger a pesticide to discharge in the affected area automatically (Agriculture: Expanding and Growing). Many farmers use technology in a daily basis to regulate soil moisture and to keep their crop pest free. With technology, farming can be much more convenient and efficient. ——————————————– [ 1 ]. Barton states the many automated home irrigation system also are programmable and use rain sensor (pp. 67-73)

Financial Analysis of Axis Bank

CORPORATE FINANCE END TERM PROJECT To study the Financials of ICICI bank, HDFC bank and Axis bank and to conduct Comparative Financial Analysis among them. UNDER THE GUIDANCE: Dr. ASHISH GARG PROGRAM COORDINATOR PGDM (FINANCE) Submitted by:Janmey Patel (202) Nikhil Arora (206) Shashank Mohore (228) Aniket Gupta (229) Parandeep Singh Chawla (231) TABLE OF CONTENTS Overview of Indian Banking Industry4 Types of Commercial Bank4 Public Sector Bank4 Private Sector Bank4 Foreign Bank4 Regional Rural Banks4 Overview of ICICI Bank 5Overview of Axis Bank 5 Overview of HDFC Bank 5 Stock Analysis6 Return & Risk Analysis7 Calculations:7 Terms:7 Risk7 Return7 Risk & Returns Figures8 Covariance & Correlations8 Terms8 Correlation Effect8 Covariance & Correlation Figures8 Portfolio Variance & Standard Deviation9 Portfolio Return Figures9 Portfolio Risk Figures9 Cost of Capital10 Cost of Debt10 Cost of Equity10 Cost of Debt & Equity Figures10 Weighted Average Cost of Capital Calculations11Comparat ive Analysis11 Leverages11 Leverage Figures12 Graphical Representation for Leverages12 P/E Ratio Analysis13 P/E Ratio Figures13 Dividend Policy Analysis13 Dividend Yield and Dividend Payout Ratio14 Conclusions and Inference14 Return14 Risk15 Choice based upon Risk and Return15 Cost of Capital16 Choice Based on Cost of Capital16 PE Ratio Analysis17 Leverage17 Dividend Policy18 Overview of Indian Banking Industry Types of Commercial Bank Public Sector Bank In case of Public Sector banks the major shareholders is Government of India.For example State Bank of India, Punjab National Bank, Bank of India etc. Private Sector Bank In case of Private Sector Banks the major Shareholders are Private Individuals. For example ICICI Bank, Axis Bank, HDFC Bank etc. Foreign Bank In case of Foreign Bank the major Shareholders are the foreign entities. For example Standard Chartered Bank, Citi Bank, HSBC etc. Regional Rural Banks In case of Regional Banks the major shareholders are Central Government, Concerned State Government and Sponsor Bank in the ratio of 50:15:35.For example Andhra Pradesh Grameena Vikas Bank etc. Overview of ICICI Bank ICICI (Industrial Credit and Investment Corporation of India) Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI bank is the 2nd largest bank in India by assets and 3rd largest by  market capitalization.Overview of Axis Bank Axis Bank was begun its operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i. e. National Insur ance Company Ltd. , The New India Assurance Company Ltd. , The Oriental Insurance Company Ltd. nd United India Insurance Company Ltd. Overview of HDFC Bank HDFC (Housing Development Finance Corporation Limited) bank was amongst the first to receive an approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. HDFC Bank is the fifth largest bank in India by assets and the second largest bank by  market capitalization  as of march 31, 2012. Stock AnalysisBankex (Index tracking the performance of leading banking sector stocks) has grown at a compounded annual rate of about 31%. India’s gross domestic product (GDP) growth will make the Indian banking industry the third largest in the world by 2025. In coming years with its assets size poised to touch USD 28,500 billion by the turn of the 2025 from the current asset size of USD 1,350 billion. Return ; Risk Analysis Calculati ons: 1) The daily stock prices for the 3 banks for the duration of 5 years are taken from Nifty. 2) For the daily stock prices of the market we took the figures for 5 years of Nifty Bank. ) Formula for Daily Return Current Stock Price-Previous Stock PricePrevious Stock Prices 4) Average Daily Return is calculated by taking the average of Daily Returns. 5) Formula for Annualized Daily Return (1+Average Daily Return)249 – 1 6) Formula for Beta Covariance(Market, XYZ Bank)Standard DeviationMarket*Standard Deviation(XYZ Bank) 7) Formula for Annualized Standard Deviation (1+Variance(XYZ))249 – 1 8) Formula for Correlation Covariance(X, Y)Standard DeviationX*Standard Deviation(Y) Terms: Risk 1) Risk is the chance that an  investment’s actual  return  will be  different  than expected. 2) Risk  is usually measured by calculating he  standard deviation  of the  historical returns  or  average returns  of a specific investment. 3) A high standard deviations indicates a high degree of risk. Return 1. The gain or loss  of a security in a particular period. 2. The return consists of the  income  and the  capital gains relative  on an  investment. 3. It is usually quoted as a percentage. Risk ; Returns Figures Particulars| ICICI Bank| Axis Bank| HDFC Bank| Average Daily Return | 0. 001| 0. 001| 0. 00031| Standard Deviation | 0. 034| 0. 032| 0. 03393| Covariance (Nifty Bank, X)| 0. 001| 0. 001| 0. 00048| Standard Deviation (Nifty Bank)| 0. 025| 0. 025| 0. 02454| Beta | 1. 53| 1. 077| 0. 80000| Annualised Daily Return | 0. 159| 0. 331| 0. 08| Annualised Standard Deviation | 0. 580| 0. 545| 0. 58| Annualised Standard Deviation (Nifty Bank)| 0. 402| 0. 402| 0. 40| Covariance ; Correlations Terms Correlation Effect 1. Relationship depends on correlation coefficient 2. -1. 0 ; r ; +1. 0 3. The smaller the correlation, the greater the risk reduction potential 4. If r = +1. 0, no risk reduction is possible Covariance ; Corre lation Figures Covariance| ICICI Bank| Axis Bank| HDFC Bank| ICICI Bank| 1. 00000| 0. 00081| 0. 00058| Axis Bank| 0. 00081| 1. 00000| 0. 00052| HDFC Bank| 0. 00058| 0. 0052| 1. 00000| Correlation| ICICI Bank| Axis Bank| HDFC Bank| ICICI Bank| NA| 0. 00255| 0. 00174| Axis Bank| 0. 00255| NA| 0. 00167| HDFC Bank| 0. 00174| 0. 00167| NA| Portfolio Variance ; Standard Deviation Portfolio Return Figures Equal Weight Portfolio Return| Particulars| Return | Weight | Portfolio Return| ICICI | 16| 0. 33| 5. 333| HDFC | 8| 0. 33| 2. 667| AXIS | 33. 07| 0. 33| 11. 023| Total | 19. 023| Portfolio Risk Figures RISK (%) | ICICI | 0. 58| HDFC | 0. 58| AXIS | 0. 55| Portfolio | 0. 3278| Cost of Capital It is the minimum rate of return the suppliers of capital would expect to receive if the capital were invested.Cost of Debt Cost of debt is calculated using the formula: cost of debt kd=interest X (1-t)debt 1) Interest is the amount paid by the company as a interest on the Debt in the current year. I t is taken from the Profit ; Loss statement of the company. 2) Debt is long term debt which we have taken from the Balance Sheet of the Company. 3) The tax rate t is the corporate tax rate and is equal to the 33. 9%. Cost of Equity The Cost of Equity in this case has been calculated with the help of Gordan Dividend Model. Cost of Equity ke=Proposed DividendMarket Price per Share*Number Of Shares+Dividend Growth Rate Cost of Debt ; Equity FiguresParticulars| ICICI Bank| Axis Bank| HDFC Bank| Interest (Interest Expenses)| Rs. 8,50,44,350. 00| Rs. 1,79,32,646. 00| Rs. 2,29,99,060. 00| Total Debt| Rs. 1,40,16,49,073. 00| Rs. 34,07,16,721. 00| Rs. 23,84,65,086. 00| Corporate Tax Rate| 30. 00%| 30. 00%| 30. 00%| Cost of Debt (kd)| 4. 25%| 3. 68%| 6. 75%| Equity Capital| Rs. 1,15,27,683. 00| Rs. 41,32,039. 00| Rs. 46,93,377. 00| Proposed Equity Share Dividend| Rs. 1,90,20,400. 00| Rs. 77,00,725. 00| Rs. 1,17,27,733. 00| Number of Shares| 13565154| 41,32,03,952| 23,36,704| Dividend Growth R ate (g)| 17. 95%| 14. 87%| 30. 06%| Cost of Equity (ke)| 18. 11%| 14. 87%| 31. 02%|Weighted Average Cost of Capital Calculations Comparative Analysis Leverages The leverage analysis consists of: 1) Operational Leverage defined by Degree of Operational Leverage. 2) Financial Leverage defined by Degree of Financial Leverage. 3) Total leverage defined by Degree of Combined Leverage. Operational Leverage (DOL) = % change in EBIT % change in Sales Financial Leverage (DFL) =% change in EPS% change in EBIT Total Leverage (DCL) = % change in EPS% change in Sales = DOL* DFL Leverage Figures Graphical Representation for Leverages P/E Ratio Analysis P/E ratio is calculated using the formula: P/E RATIO=Current market price of share EPSP/E Ratio Figures Dividend Policy Analysis Dividends paid by a firm are measured using one of two measures. 1) Dividend Yield: Which relates the dividend paid to the price of the stock. Dividend Yield=Annual Dividend per Share Market Value per Share 2) Dividend Pa yout Ratio: Relates dividend paid to the earning of the Firms. Dividend Payout Ratio=Dividend Distributed Total Earnings Dividend Yield and Dividend Payout Ratio Particulars| ICICI Bank| Axis Bank| HDFC Bank| Dividend Paid (000's)| Rs. 19,013,434| Rs. 6,697,611| Rs. 7,695,463| Number of shares| 13,565,154| 413,203,952| 2,336,704| Dividend per share| 1. 402| 0. 016| 3. 293|Intrinsic value per share| 890. 2| 1146. 2| 519. 85| Dividend Yield| 0. 157%| 0. 001%| 0. 634%| Earnings (000's)| Rs. 103,860,000| Rs. 74,308,700| Rs. 89,504,000| DP Ratio| 0. 183| 0. 090| 0. 086| Retention Ratio| 0. 817| 0. 910| 0. 914| Conclusions and Inference Return As one can see from the above chart , Axis Bank offers the highest returns per annum at 33% , followed up by ICICI and HDFC Bank at 16% and 8% respectively. It can be safely concluded that Axis Bank is the best option to invest in. Let us now have a look at the Risk analysis before we go any further. Risk The following chart depicts the Risk witness ed by each of the Banks.As one will notice, each of the three Banks i. e. ICICI , Axis and HDFC Bank belong to the same risk class. Risk of ICICI and HDFC Bank is equal at 58%, while that of Axis Bank is little lower at 54%. There is not much to choose between the Banks when it boils down to Risk. Choice based upon Risk and Return Based upon Risk and Return Assessment Axis Bank stands out to be a clear choice. On one hand it offers returns which are twice that of ICICI Bank and four times in comparison to HDFC Bank, on the other hand, its risk is marginally lower than that of the other two Banks, which makes AXIS Bank to be the standout choice.Cost of Capital The Cost of Capital of each Bank is depicted in the following chart: As one can see from the above chart The total cost of Capital for ICICI Bank averages out to be 8. 42%, Whereas Axis Bank has a WACC of 8. 15 % and HDFC bank has its cost of capital in excess of 20%. HDFC Bank needs to substitute its Equity and reserves with m ore of Debt, if it wants to lower down its WACC. Cost of Capital for HDFC Bank is high primarily owing to its huge Cost of Equity which is more than 30%. It needs to substitute more of debt in its Capital Structure if it wants to reduce its hurdle rate.Choice Based on Cost of Capital If one is viewing the affairs og the company based on the Cost of Capital, HDFC gets eliminated without any second thought. It needs to bring down its Cost of Capital if it wants to sustain in the long run. While on the other hand there is not much to choose between ICICI and Axis Bank , as both of them have almost the same hurdle rate close to 8%. PE Ratio Analysis The PE Ratio of ICICI and Axis Bank is very much comparable. ICICI Bank has a PE ratio of around 15 , whereas, the same for Axis Bank Hovers around at 11.One can easily draw a conclusion that investors are willing to pay more for ICICI Bank and also expect a higher growth rate in its earnings in the future. Following Chart depicts the compar ative analysis of ICICI Bank along with HDFC Bank and ICICI Bank. It can be clearly seen that the PE ratio of ICICI Bank and Axis Bank are Comparable. But, the PE Ratio of HDFC exceeds 120. One can safely draw a conclusion that the Market Price of HDFC Bank is highly overpriced compared with the Industry average and one can expect a downfall in its share prices in the near future, because such high level of PE Ratio cannot be sustained in the long run.Leverage The Position of Leverages for each of the Banks depict the same story. Following chart will substantiate it: Each of the Banks has a operating leverage lower than 1 , which implies that EBIT is not increasing in the same proportion as the sales of these Banks. Even the degree of financial leverage and the degree of combined leverage of each of these three Banks is comparable and there is not much to choose from when it comes to leverages. Dividend Policy When it comes to total dividend Paid by the Bank, ICICI Bank exceeds the two other Banks with quite a margin.The following Chart depicts the situation more comprehensively: As one can see from the Chart ICICI Bank is the clear leader when it comes to the amount of dividend paid, while there is not much to choose between Axis Bank and HDFC Bank. Total Amount of Dividend Paid doesn’t show the true picture as , it has not been adjusted for number of shares. In other words , Dividend per share will show the appropriate picture. Following chart will depict the amount of dividend paid by each bank per share.As one can see clearly from the graph above , it is the HDFC Bank which is more liberal while declaring the dividend vis-a-vis ICICI and Axis Bank. HDFC pays dividend in excess of Rs 3 per share. ICICI pays a dividend just exceeding a rupee on a share. While, Axis Bank doesn’t even pay 50 paisa on a share. From Investors point of view who wants a steady flow of Income, HDFC stands out to be the most logical choice of Investment. Such an Invest or should obviously resist and desist from investing any amount of money in AXIS Bank.