...The question posed by Esty & Winston in this week’s reading, “Is Rohner a Failure?,” makes one consider the definition of success in business. Business success can be defined in many ways, and cultures around the globe tend to define and reward success that fit within their norms and expectations. In the case of Rohner, one would have to consider the criteria by which success is defined. Rohner’s intention to create a sustainable product and company has been achieved and therefore meets the entrepreneur’s intentions, which likely defines success in their eyes. In the case of Rohner, it is not necessary to be the cheapest product, or to own the largest market share in order to be successful. (Esty & Winston, 2009) The fact that they are sustaining their business, taking care of the employees, community and their customers handily defines success. In fact, most business owners gain their greatest satisfaction from creating things and seeing their ideas through to fruition. (Hill, n.d.) The personal satisfaction of seeing an idea come to life with ones name/brand and overcoming the challenges of starting a business is enough to define success for many people. The social aspect of what Rohner has accomplished should also help define success. The good jobs, training and skills they teach their workers help define success. The wages they pay get circulated back into the community and reinvested as well. Satisfied, long-term employees are the best advertising that...
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...Power and Light Company (PPL) was originally incorporated in 1920 as holding company. 1920-1994 PPL operated as a vertically integrated utility. In 1994 the company’s management recognizing and anticipating changes to the electric utility industry chose to changes it strategy by creating a subsidiary PPL Global “to pursue business opportunities in the unregulated electricity marketplace” (Esty, Ferman3). Senior management recognizing the need to create a more competitive environment within the company began a restructuring process from 1994-2000. In 1999 the company announced it intended to double its generation capacity by 2005 “through acquisition of existing plants and development of new plants” (Esty, Ferman 4). Jim Abel and PPL’s Finance team determined that in order to execute this new strategy PPL needed to maintain access to large amounts of capital at low cost while maintaining the financial soundness of the corporate balance sheet. This culminated in the separation of its unregulated generation businesses from its regulated distribution and transmission businesses in 2000(Esty, Ferman 4). The environment PPL was operating in during this time was not conducive to PPL Global using Corporate Finance to raise the billions of dollars needed to fund the expansion of the company’s generation portfolio. To use Corporate Finance would result in a burden on the company as a whole while putting the PPL at risk of credit downgrades resulting in it becoming increasingly difficult...
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...1. Introduction: In June 1997, board of the International Finance Corporation (IFC) was proposed with a $120 million debt-side investment opportunity in the Mozal project, a $1.4 billion aluminum smelter in Mozambique. The initiative shareholders approached IFC for their participation in debt-side financing in pursue of the commercial viability and development impact. In this report, we will be analysing the project’s major risks that are expected to arise in the future, as well as assessing the likelihood of a successful investment from various aspects, until reaching a final lending decision. In addition, loan portfolio considerations regarding the addition of the new investment will be discussed. 2. Major risks In this part of the report, the 3 major risks involved in the Mozal project are assessed, including political risk, operational risk and market risk. 2.1. Sovereign risk Comparing to other two types of risks, sovereign risk is relatively higher and more important in the Mozal case, with potential expropriation and moral hazard being realistic threats to the project. Mozambique was one of the poorest countries in the world and had only recently emerged from a 17-year civil war that had destroyed most of the country’s infrastructure. The high sovereign risk is reflected in the hurdle rate that amounts to a much higher value than its internal rate of return. Regarding the financing gap of $250m, participation of IFC is essential and could be very beneficial to the...
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...increasingly relied on to fund investments? 4 C. What advantages does it have over traditional corporate finance? 6 D. What are the major short-comings of project finance? 7 E. Typical Project finance Transaction 8 References 10 A. Introduction Unlike the traditional loan arrangements, project finance is a financial structure which facilitate the arrangements for project but the repayment of such loans are exclusively defrayed from the cash flows generated from the operations of the project and are specifically used in financing large-scale projects in the areas of oil, energy, petrochemicals, road and railway infrastructure, electricity and water supply (Bretton Woods Project, 2012; Fight, 2005; Kwakkenbos, 2012). According to Esty...
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...business setting is essential to make the work environment comfortable. In every culture, there are basic standards of thinking, and acting and these cultural differences strongly influence workplace values and communication. What one considers acceptable and natural in the workplace for one person may be unacceptable for another person. Diversity in the workplace can be beneficial as well as challenging. Respecting individuals and their differences can increase productivity. It could also reduce lawsuits, increase opportunities and the business’s image (Esty, 1995). On the other hand, some negative behaviors in the workplace may include prejudice, stereotyping and discrimination, which should never be a practice by management for hiring, retention, and termination practices. Negative behaviors can be barriers to organizational diversity because it can harm working relationships and damage morale and work productivity (Esty, 1995). Businesses can benefit from a diverse body employee in the work environment. Diversity in the workplace helps in bringing fresh ideas, perspectives, and views to the workplace. In today’s increasingly global workplace environment, the ability to effectively communicate with people of different cultures and backgrounds is an essential...
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...diverse workplace today is rapidly becoming as much of a key to success requirement as knowing how to manage projects. Successful managers must first understand what diversity is and how to manage an equal and efficient workplace. There are many advantages and disadvantages of diversity at the workplace. Diversity is generally defined as acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status (Esty, et al., 1995). Diversity is beneficial to both associates and employers. Although associates are interdependent in the workplace, respecting individuals differences can increase productivity. Diversity in the workplace can reduce lawsuits and increase marketing opportunities, recruitment, creativity, and business image (Esty, et al., 1995). In an era when flexibility and creativity are keys to competitiveness, diversity is crucial for an organization’s success. Also the consequences (loss of time and money) should not be overlooked. Effective managers are aware that certain skills are necessary for creating a successful, diverse workforce. First, managers must understand discrimination and its consequences. Second, managers must recognize their own cultural biases and prejudices (Koonce, 2001). Diversity is not about differences among groups, but rather about differences among individuals. Each individual...
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...‘The failures of environmental multilateralism demonstrate the need for a World Environment Organisation.’ Critically evaluate this claim. One of the main challenges that face environmental politics today is a significant lack of integration between the global governance structures that address ecological matters. The international trade system has some of the most powerful institutional actors, such as the World Trade Organisation, where legal rules are supported by a dispute resolution body, trade sanctions, as well as the power to authorise other retaliation tactics when a country does not comply with a ruling (Eckersley 2003.) In contrast, the existing multilateral framework for environmental politics provides a fragmented, and incoherent arrangement to govern some of the most important ecological issues. Organisations like the United Nations Environmental Programme, for example, are supported by voluntary member state contributions, and lack the financial foundation, as well as the legal mandate to express sound environmental policy-making. As quoted by Eckersley (2003), “judged in terms of size and teeth, we might regard the WTO as a large tiger and MEAs as a ragged collection of small cats” (pp. 2.) This paper makes the case for a reorganisation of environmental governance, with the specific transformation of UNEP into a World Environment Organisation (WEO.) A WEO is argued to be able to provide an authoritative voice and force to issues of the global commons...
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...Islamic Financing for Large Infrastructure Projects Jasper Camacho International Financial Mgmt, Section 1 Fall 2005 Summary This paper examines the growing Islamic finance market and how it is becoming an important source of capital to fund infrastructure projects in the Muslim world. The paper starts by introducing basic tenants of Islamic finance and the problems as it relates to large capital projects. Innovations in Islamic project financing are then introduced along with the complexity that those have to innovations address. The paper concludes with a description of selected recent infrastructure development projects that use Islamic financing. Islamic Project Development Needs Increasing population throughout the Muslim world and the appetite for demand in investment for infrastructure in Muslim populated countries has led an increase need for capital that conforms to Islamic standards (see exhibit 1 for list of Organization of Islamic Countries).1 In many of these countries especially in the Middle East, Central Asia and South East Asia, oil and natural gas deposits push the need for companies to build extraction, transport and refining capacity. In developing countries such as the ones in Africa, Pakistan, and Afghanistan, there is an increasing need for electricity and water desalination stations. These projects are capital especially capital intensive in nature. Islamic Financing Basics Islamic financing is the method of financing that complies with the Shari’ah...
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...Case Distressed M&A and corporate strategy: lessons from Marvel Entertainment Group’s bankruptcy Joseph Calandro Jr Joseph Calandro Jr is the Enterprise Risk Manager of a global financial services firm and a Finance Department faculty member of the University of Connecticut (joseph.calandro@ business.uconn.edu). s the current recession unfolds, indications are that corporate executives and strategists will be making decisions in an economically distressed environment for some time to come.[1] Historically, investment and M&A activity tend to decline during periods of economic distress. However, a specialty form of acquisition, known pejoratively as ‘‘vulture investing’’ has flourished during such times. Perhaps because it has been practiced as a specialty by financiers accustomed to balancing high risks for quick rewards, acquiring distressed companies has not been widely viewed as a corporate strategic opportunity. Recently, however, distressed M&A has become more common: A B as of April of 2009, there were 60 distressed M&A deals for the year including Valero Energy Corporation’s purchase of VeraSun Energy Corporation’s assets in bankruptcy; in 2008, there were 220 distressed deals; and in 2007, there were 134.[2] B B When assessing distressed M&A opportunities, corporate strategists should leverage their industry knowledge and expertise to search for hidden value, and also to select qualified industry experts to validate strategic and valuation assumptions...
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...Globalization has had far-reaching effects on our lives. Globalization has led to the rapid rise in urbanization and industrialization, resulting in economic prosperity and progression in many countries. While globalization may have significant positive effects on economic growth, the negative impacts on the environment should not be downplayed (Goldin, 2009). The precipitous rise in global consumerism due to globalization has resulted in an unsustainable consumption of the earth’s natural resources in which the rate of depletion outpaces that of replenishment (Rajkobal, n.d.). Besides that, the increase in consumption has also raised several environmental concerns, particularly the aggravating global-warming phenomenon which seems to undermine the benefits of globalization. Thus, this paper seeks to examine the impacts of globalization on the environment that leads to climatic changes and how these problems can be alleviated through international cooperation and the use of new media. First, globalization has contributed to the rise in greenhouse gases in the atmosphere. Globalization causes an increase in cross-border interactions as well as the demand for production of goods, which in turn places tremendous stress on the environment. Individuals and businesses migrate from country to country in search of better prospects. This has certainly put pressure on existing land resources. As the amount of land available decreases, forested areas are encroached upon to pave way for...
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...focus on environment sustainability. Environmental sustainability is about decision making and taking actions that are in the interest of protecting the natural world, with specific focus on conserving the ability of environment for the human life. At the present time, it is an important topic, as it is being realizing by the people that individuals and businesses have full impact on the environment. Environment sustainability is related closely with making responsible decisions that are objected towards minimizing the negative impact of business on environment. It is not just about reducing the amount of produced waste and use of less energy, but is also associated with processes being developed which will lead to business in the future (Esty et al.,2005). In the present situation, the concerned group claims that these materials are causing an environmental hazard that is seeping from a local landfill into a nearby stream. An environmental group, SafePack Materials Pollute, has sprung up and has launched an Internet campaign geared toward compelling fruit producers to stop purchasing our packing materials. The situation at hand raises environmental issues that relate to the Clean Water Act and the Solid Waste Disposal Act. The Clean Water Act develops the basic structure to regulate discharge of pollutants into the waters of United States and regulating quality standards for surface water. Under this act, Environmental Protection Agency has...
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...Individual differences and diversity in workplace The research of individual differences is a true fact since human existence. With increasing competition in the world workplace, it is clear that the businesses with various resources still at the level of demand (Marquardt & Reynolds, 1993). As companies face multiple of difficulties in order to keep successful in the marketplace, workforce give the company most valuable benefits. Therefore, respecting employee in the organization is the key for successful company and that can be achieve by understanding individual differences. Behaviours, values, personalities, and attitudes are different for each person. Considering these diverse traits lead the employees to the most appropriate in achieving organization. Since individuals are different, it is accepted that each employee behave in different ways. The key for companies is meeting individual diversity as a real opportunity and moving it into an advantage. There are three main important individual differences that organisations should focus on, values, personality and attitudes. Values: According to Howard (1988), values are the basic structures of culture. However, values can be applied in management to develop relationships with people. Values can be defined as the beliefs of individual or a group which they have an emotional investment (clegg S. et.al, 2011). Schwartz (1992) describes some values as ‘trans-situational’. These values in one’s life without considering...
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...Introduction: Diversity in the workplace is natural to Canada with its multicultural population and more than 250,000 newcomers entering the country every year (Government of Canada). One of the distinguished features of Canada’s current workforce is its growing diversity. As a concept, diversity refers to a broader set of qualities than race and gender. Its dimensions include, but are not limited to, age, ethnicity, educational background, geographic location, income, marital and parental status, religious and moral beliefs, physical abilities, working experiences, and job classifications. For example, for the first time in history, today’s workplace accommodates four different generations — the Matures, the Baby Boomers, Generation X, and the Generation Y. Each age group brings different perspectives on life and work; all of them relate differently to the same working environment; all of them bring new ideas that benefit the workplace on different levels. It is a great challenge for both employers and employees to learn to value and to embrace differences and not get caught up in stereotyping those who look, think and act differently. It is a great need to start learning about diversity by talking to people, asking questions and listening. The more we know about differences, the more we understand them and the more we can appreciate and value their contributions to the workplace. Employers need to learn how to integrate and manage their diverse workforce; employees need...
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...One of the major force in the green marketing area is for organizations to retain their competitive position in the market place. This is one of the major force in the green marketing area. (Esty & Winston, 2008; Asundaram, 2012) Contemporary markets are competitive in nature, and in pursuit of the largest share, there exist among them a competitive struggle to survive and thrive (Peattie, 1995) and that competitors are the potential reasons for the change in companies’ environmental behavior. Competitive pressure pushes firms to take an approach to green marketing in order to avoid negative consequences, but this does not lead to competitive advantage. Rather than formulating and executing a consistent customer-oriented strategy, this type of firms often decides its moves based on its competitors moves. (McDaniel & Rylander, 1993) Polonsky (1994) and Kotler (2006) pointed out that reacting based on competitive pressures can have costly consequences. If the leader company has made a mistake, the followers subsequently repeat it. Esty and Winston (2006) adhered not to follow competitors blindly but to keep a close eye on their strategic...
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...Myplace: The plalce for Diversity Antonio Sigala COMM/315 Mr. Brian Lempke Diversity is generally defined as acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status (Esty, et al., 1995). There are the obvious characteristics such as gender, race, religious beliefs, social class, etc.; and of course there are those characteristics that are not so obvious such as mental ability, religious beliefs, physical ability among others. It is tough to decipher those hidden qualities on an individual without knowing much about that person. For my first example I have chosen Jenna, this was very tough for me as I let my personal bias get in the way of a rational choice when I came across the decision to match a picture to the description. I was wrong! Her Drive is eminent; her commitment to succeed is unprecedented. She was able to survive drug dependency (demonstrates drive and the will to succeed) and established herself as she once had after she graduated college. Mental toughness was very important as she went through hard times after losing her mother, these hidden characteristics cannot be detected by the naked eye and most of us base our judgment on our own personal bias and stereotypes. Kim was my second choice, She too has the drive to succeed, and she was the first one of her family...
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