Isolation of Crude Acetaminophen Essay

After first isolation of crude acetaminophen, 1.22g of light, brown shiny, fine Crestline solid emulated, which demonstrated slight less than 0.030g of product was lost from original 0.150g of p-aminophenol. The melting point range of crude acetaminophen ranged from 166.8-167.6 °C, when compare to the known melting point of pure acetaminophen which ranged from 169.5-171 °C, is slightly depressed. After decolonization of crude acetaminophen 0.060g of a very light tan/pink almost white, fine, shiny crystalline purified acetaminophen was recovered. Significant amount was lost; slightly over half was lost from 0.122g crude acetaminophen. Purified acetaminophen resulted in a much lighter coloration than the crude acetaminophen. Purified acetaminophen was slightly light tan/pink nearly white, whereas crude acetaminophen was light brown. After crystallization of acetaminophen, 0.028g of whiter, shiny, fine crystals resulted with no apparent odor. Slightly less than half of product was l ost from 0.060g purified acetaminophen that was crystallized and about 0.122g was lost from the original 0.150g of p-aminophenol started with. The melting point range of the crystallized acetaminophen (166.1-169.8  °C when compared to the known melting point range of pure acetaminophen at 169.5-171 °C is clearly depressed and elongated. 169.5-171 °C Calculations: % yield of crude product: x = 0.207g crude acetaminophen x 100 = 58.7% % yield of crystallized (final) product x = 0.207g crude acetaminophen x 100 = 13.5% Observations: Weigh out about 0.150g p-aminophenol and place this in a %ml conical vial. Note: some amount of product was lost do to spillage. .150g weighted out; p-aminophenol is a dark purple powder containing few small grains. Using pipette, add 0.450ml of water and 0.165ml of acetic anhydride. About 450ml and 0.165ml of water and acetic anhydride weighted out. Addition of water formed dark purple viscous mixture; most p-aminophenol dissolved. Addition of acetic anhydride to the mixture produced a dark brown mixture brown precipitate seemed to have formed at the bottom of the vial. Heat the reaction with an alumina block at about 120 °C while stirring gently. After solid precipitate has completely dissolved heat for an addition 20 minutes. Remove vial from heat and allow cooling. Once cool remove the spin vane and air condenser from the conical vial and let cool to room temperature. Once safe to touch put the mixture in an ice bath for 15-20 minutes allowing for crystallization. Collect crystals through vacuuming through Hirsch funnel for 5-10 minutes allowing for air to go through. Once dry add weight the crude product and do melting point range test 166.8-167.6 °C compared to the know melting point range of 169.5-171 °C. Dissolve 0.2g of sodium Dithionite in 1.5ml of water in a 5ml conical vial. Weight out about 0.204g of sodium dithionite, a grey- white solid powder, add the crude product to the vial and heat up the mixture at about 100 °C for 15 minutes. After heating the crude product completely dissolved producing a light tan translucent solution. Note: spillage occurred when transferring crude product into conical vial. Cool mixture in an ice bath for about 10 minutes. Collection of crystals are done by vacuuming with the Hirsch funnel, once dry weight the purified acetaminophen 0.060g resulted. The purified acetaminophen resulted in a much lighter coloration than the crude. Place purified acetaminophen in a craig tube. Crystallize the material from a solvent mixture composed of 50% water 50% methanol by volume. Set up the Craig tube apparatus described in technique 11, section11.4. Add drops of hot solvent until solid is dissolved. When product has dissolved, place the Craig tube  into a 10ml Erlenmeyer flask, insert the inner plug of the Craig tube and allow solution to cool. Place in ice bath for several minutes to allow acetaminophen to crystallize. After crystallization has occurred collect crystals using apparatus shown in technique 8 figure 8.11, place assembly in centrifuge for several minutes collect crystals on watch glass weight it at 0.028g and find the melting point range of 166.1-169.8 °C. Questions: 1. Most compounds have lower solubility’s at lower temperatures. You can obtain more product y crystallization at lower temperature. 3. Product can be lost through Hirsch funnel if over washed. 4. x = 0..180g crude acetaminophen x = 0.00119g mol acetaminophen 6. Discussion: Through the main reaction between 0.150g of p-aminophenol with acetic anhydride, 0.122g of crude acetaminophen was produced along with some acetic acid. This indicates a 58.7 percent yield of crude acetaminophen. This is a fair percent yield considering a slight amount of p-aminophenol was lost due to spillage in the transferring process into conical vail and slight amount of crude acetaminophen was lost when trying to remove crystallized crude acetaminophen from conical vial. Percent yield is 58.7% indicating loss of reactants or spillage of products. There is possible error when performing suction filtration; too much washing of product can cause product to fall through filter ultimately decreasing overall percent yield. also overheating may have caused a loss of product; some of the product may have been splattered out of the reaction vessel when heating. 1005 yield would mean that one has carried out the lab activities perfectly producing the predicted amount of product. Given the 58.7% yield actually obtained, it is evident that experimental procedures be accurately followed for further improvement. It is in the transferring process of  p-aminophenol to a 5mL conical vial. Where error is most critical and product can be readily lost. After decolorization process, 0.060g of decolorized/purified acetaminophen was obtained indicating a significant loss of product. Prior to decolorization process, 0.122g of crude acetaminophen solid was present, meaning half of product was lost in the decolorization process. It is important to note that a significant amount of product was lost due to spillage when transferring crude acetaminophen into conical vial to decolorization. Error may also be present if mixture is overheated and product is evaporated off. After crystallization process of purified acetaminophen, 0.028g of white final acetaminophen resulted indicating a 13.5% yield. this is a poor percent yield. this indicates slightly less than half of 0.060g of purified acetaminophen was lost. Such a low percent yield can be attributed to the loss of product throughout the crystallization process. It is important o note that a significant amount of product was lost within supernatant after centrifugation, also, product was lost when trying to remove product from Craig tube and plug. Purity of final product of acetaminophen was tested through qualitative observation of coloration and by comparing obtained melting point ranges of crude and final acetaminophen to the literature melting point range of pure acetaminophen. Because crude solid acetaminophen contains dark impurities carried along with p-aminophenol we can qualitatively compare the level of impurity before and after decolorization. As for the second test for impurity, the melting point range of the crude acetaminophen, 166.8-167.6 °C is slightly depressed when compared to the known melting point range of pure acetaminophen 169.5-171 °C. Crude acetaminophen melting point range is depressed by 2.7 °C. A difference of less than 5 °C indicates a good melting point range was obtained for crude acetaminophen this indicating a minimal amount of impurity present. The melting point range of final crystallized acetaminophen, 166.1-169.8 °C is slightly depressed and elongated when compared to the known me lting point range of pure acetaminophen 169.5-171 °C. It is depressed by 3.4 °C and elongated by 2.2 °C. A difference of less than 5 °C indicates a good melting point range was obtained, though impurities may still be present. When crystals are isolated by filtration from a solvent, it is important to allow complete drying/evaporation of the solvent in order to minimize impurities and get a good melting range. Residual solvent may also function as an impurity and will depress/broaden the melting range for acetaminophen. When two chemicals are mixed, side reactions may take place and produce by-products which can serve as impurities ultimately lowering and elongating the melting point range. For further reference, one must meticulously carry out experimental procedures to ensure that neither reactants nor product is lost and higher percent yield is obtained.

Macbeth William Shakespeare Essay

(i) â€Å"Shakespeare’s Macbeth invites us to look into the world of a man driven on by ruthless ambition and tortured by regret.† Write a response to this view of the play, Macbeth, supporting the points you make by reference to the text. Mark ex 60 by reference to the criteria for assessment using the following breakdown of marks. P18 C18 L 18 M 6 60 marks A+ B C D E- 100% 60 – 51 42 33 24 23 – 0 30% 18 – 16 13 10 8 7 – 0 10% 6 – 5 4 3 3 2 – 0 Expect candidates to respond by treating of both ambition and regret, though not necessarily equally. Allow that candidates may view Macbeth as a man â€Å"driven on† by the ambitions of others in his world, e.g. Lady Macbeth, Malcolm, Banquo, and so on. Expect the focus of discussion, in such cases, to centre on the impact that the ambitions of others make upon Macbeth. Code A for ‘ambition’, R for ‘regret’, and A/R for points combining the two. Possible points: Ambition: – his eager response to the witches – the killing of Duncan and Banquo – his obsession with ‘vaulting ambition’ – he embarks on a tyrannical rule, determined to hold on to power – Lady Macbeth, however, questions his capacity to be ruthless – his soliloquies repeatedly qualify the ruthlessness of his character Etc. Regret: – Macbeth wrestles with his conscience – he is plagued by visions of his evil deeds and their consequences – following the murder of Duncan he is incoherent and tormented – he is haunted by the realisation that he has achieved a ‘fruitless crown’ and a ‘barren sceptre’ – his mind is ‘full of scorpions’ – for him life becomes progressively more empty and worthless Etc.

Azuria Medical Problems Essays - Medicine, Health Care, Free Essays

Azuria Medical Problems The state-run medical system has collapsed in Azuria, and only rudimentary care is available through NGOs (when they aren't being shot or kidnapped). Statistically there is supposed to be one doctor for every 4,640 people in Azuria. Diarrhea, communicable and parasitic diseases are rampant in the country. Chloroquine-resistant malaria is present in all parts of the country. Larium should be used for chemical prophylaxis. Cholera, dracunculiasis (Guinea worm), cutaneous and visceral leishmaniasis, rabies, relapsing fever and typhus (endemic flea-borne, epidemic louse-borne and scrub) are prevalent. Azuria is also receptive to dengue fever, as there have been intermittent epidemics in the past. Meningitis is a risk during the dry season in the savanna portion of the country, from December through March. Schistosomiasis may also be found in the country and contracted through contact with contaminated freshwater lakes, streams or ponds. A yellow fever vaccination certificate is required for all travelers coming from infected areas. There's also a pesky little problem with Tumbu Fly, a local maggot that burrows into human skin, munching on flesh all the way. The larvae grows big enough to rip out flesh before it turns into a fly. Hospital Resources No non-trauma medical care is being delivered at the hospitals. If the needs of those with chronic or acute medical conditions, such as diabetes, are being met, it is likely to be through the efforts of private physicians working out of their private homes in the community. Hospitals provide casualty care to heavily populated portions of the country. Digfer Hospital in Mogadishu has the capacity for about 650 inpatient beds, with an estimated current inpatient census of 1,000 patients. Benadir Hospital in Djibouti City has approximately the same capacity and current census. Medina Hospital in Mogadishu currently holds approximately 400 patients. Hospital needs in the north are served by a team of five Azuri physicians who set up the "Health Emergency Committee" on April 18, 2005. They work out of 27 converted villas, which have been combined to form what is called Karaan Hospital, where most of the emergency surgery takes place. An additional set of 16 villas in the north constitute a collective inpatient ward, Karaan 2, for patients who are convalescing from acute injury. The total number of patients hospitalized in these 45 villas is approximately 5,000 to 6,000 people. For medicines, the Karaan Hospital relies entirely on weekly supplies brought in by the ICRC. The physical condition of the acute care areas of these hospitals is uniformly austere and, with the exception of the casualty and operating areas of Medina Hospital, where the expatriate staff from Mdecins Sans Frontires-France (MSF) have taken over and renovated the most advanced of the city's surgical units, conditions are unsanitary. As the factional fighting prompted urban fighting and then as the intra-clan conflict broke out, makeshift casualty wards were set up in the existing entryway in the other two hospitals in the south during the course of the past year. During this year, both parties to the conflict have looted and destroyed public and private facilities. They have not spared hospitals. Digfer Hospital was particularly hard-hit and stripped almost bare of equipment, furnishings, and supplies. The ICRC had opened a hospital for the care of acutely injured casualties for the north in early February, but after one week of operations, was forced to close it abruptly in the face of active hostilities. (The hospital is operational again; see below). The surgical care structures on the north are even more minimal, since they were built as private homes. With the exception of the acute casualty and surgical areas of Medina Hospital, none of these hospital structures have screens over the windows to keep out flies and other insects. Electricity is available only to the operating areas on an intermittent, limited basis, from locally maintained diesel fueled generators. Running water is infrequent and unclean. There is no oxygen available in the city and no inhalation anesthesia possible. Surgical drapes are scarce or non-existent, depending on the site or hospital. Sterilizers occasionally work and are used according to varying routines and frequency. Much of the surgical equipment in most of the sites is re-used without interim sterilization over a 24-hour period. Casualty and operating areas are mopped down intermittently, depending on the volume of cases arriving in acute condition. Available antibiotics included penicillin and erythromycin; medicine for the prevention of tetanus was in short supply. Medical support can continue to be provided at its current rudimentary level only if the lifeline provided by the ICRC can be maintained. Medical supplies to both sides of the city and food rations for

Computer and Network Hardware Assignment Example | Topics and Well Written Essays - 250 words - 1

Computer and Network Hardware - Assignment Example A router is necessary in a network in that they are the paths through which creation of layer 3 takes place (Lammle, 2008). Layer 3 refers to the gateway through which the data transmitted in a network operates and this mainly takes place in OSI model. Routers make use of Internet Protocol commonly known as IP address to pass data across the network. Routers are common in Local Area Networks (LAN) (Lammle, 2008). A collision domain is where collision of data packets takes place on a shared medium mostly in Ethernet networking (Lammle, 2008). On the other hand, a broadcast domain is where any connected device to the network is capable of transmitting data to the other. In a broadcast domain, the data does not have to pass through a router. Finally, a network segment refers to any section of a workstation network depending on the devices used in the network. LAN segmentation is one of the common methods of creating collision domain (Medhi, 2007). The configurations depend on networks needed. With LAN, it is possible to extend the network and isolate faulty networks. It also helps to improve the network security and applicable in creating network domains (Medhi, 2007). LAN segmentation makes of bridges, network switches and routers in configuring the required

Consumer Behavior Essay Example | Topics and Well Written Essays - 2500 words - 1

Consumer Behavior - Essay Example There are many changes taking place in the society structures and the family values are going down gradually (Giddens 1979, Giddens 1991; Miles 2000). At times advertisements can play an important role in bringing the family values together. There are some ads which treasure the family moments to the maximum and make you realize how important it is to give time to your loved ones. This is mostly shown through the chocolate or sweet ads. Celebrities have their own impact while they advertise for any ad (Atkin 1983) and mostly major companies want to take big celebrities to make an ad for them as this tends to generate more consumer response. Kodak camera films and cameras have their ads being portrayed as value expressive. They show that all the special moments in everyone’s life cannot be missed and it should be captured at the right time in the cameras. The digital cameras of Kodak also give the same message as the normal cameras that moments are special and cherishing for everyone and they should be given special treatment always. Value expressive influence of advertising may tend to create high emotional levels and also sensitive feeling for the consumers. They may become emotionally attached with the products as they would feel a strong sense of attachment while they use the product. Nokia advertisement can be considered as an informational group influencing ad as it portrays in their ad that having Nokia develops a lifestyle, it develops it for oneself and for others too, the consumers passion and fashion can be immensely taken to success because of having Nokia. The ad shows that with the use of Nokia, one has a strong confident personality and they can achieve whatever they want. If one aims to have very high goals they can do it while having the Nokia cell phones, as Nokia has portrayed its image as strong, reliable, unbreakable, good quality , resistant to damages. Other

What are the purposes of art museums and galleries Essay

What are the purposes of art museums and galleries - Essay Example But could these arguments stand the test of critical intellectual and empirical analysis Could they be substantiated incontestably with living evidence, so that these views on the purpose of the institutions come across as a cogent piece of intellectual submission This paper will critically examine a number of arguments in support of the views, for logic of presentation, relevance of structural methodology and cogency of content. Khalil Gibran, a Lebanese artist & poet in US, once said 'To understand the heart and mind of a person, look not at what he has already achieved, but at what he aspires to'. This statement, with its allusion to 'aspiration', offers a significant point of departure for this exposition. Aspiration is evidenced in current attempts, in current efforts towards the realisation of a purpose. Therefore, the appreciation of the purposes of art museums and galleries lies in the discovery of the aspiration of those who set them up and conscientiously maintain them. This simple deduction will be used as a fundamental yardstick for estimating the validity of the various arguments. The arguments of the chosen authors will be represented with excerpts from their works, which capture the long and short of their arguments and submissions. These excerpts will be enlarged upon very briefly and then examined for validity. The term 'museum' dates back to the Greek origin of the institution as the abode of the muses, a place of learning and inspiration. It is defined in the American Heritage Dictionary as: 'A building, place, or institution devoted to the acquisition, conservation, study, exhibition, and educational interpretation of objects having scientific, historical, or artistic value', (The American Heritage Dictionary of the English Language, Fourth Edition, 2000). In their A Sense of Place, a work of advocacy, Peter Davies and Tony Knipe (1984) subscribe to an opinion embodied in this excerpt : ' Lets not each beauty everywhere be spied, When half the skill is decently to hide, He gains all points who pleasingly confounds, surprises, varies and conceals the bounds' The advice "not to spy each beauty everywhere, 'when half the skill is decently to hide'" suggests that easily appreciated objects of artistic beauty do not hold as much attraction as those whose artistry is 'decently' hidden, that is, complex. Thus, art galleries, which generally hold attractions for frequenters, contain artistic collections whose intents and purposes need closer (not to be 'spied') examination and special explanations, for their full understanding and appreciation.Consequently, close examination of artistic works of art for their enjoyments and appreciation, is presented by these authors as the purpose for which art galleries and museums are set up. The complicated artistry of the collections is to challenge- 'pleasingly' confound- the visitors, stimulate their imagination and increase their appreciation of beauty. The validity of this submission is, however, yet to be seen, for no empirical evidence lies in this excerpt. From the work of another pair of authors on the origins of museums, we find this excerpt: 'The opening of the New World and the opening up of contacts with Africa, South-East Asia and the Far East revolutionized the way which people saw the world and their own place in it' (Oliver Impey and Arthur MacGregor, Origins of Museums (1985), p.2). Further reading of this work reveals that the stir created by the opening up of Africa, South-East Asia and the Far East to the New World gave birth to the very beginnings of museums as we know them. Interestingly, many of them were filled with

Older Adulthood Essay Example | Topics and Well Written Essays - 250 words

Older Adulthood - Essay Example This means that some diseases and health defects associated with old age can be prevented or at least reduced if proper care is taken. I will advocate for routine medical checkup for me and my friends so that these many complications are avoided in future. For example, it has come to my attention that avoiding exposure to environmental toxins and other hazards and also getting faster access to healthcare can avoid these complications. For a successful transition into old age, I will from now henceforth advice those with old age to accept the change, be sociable and also employ spiritual faith. Older adults require religious support and spiritual nourishment to enable them cope as I have just realized. Another way of coping is by keeping old and retired people busy by volunteering. This enable them overcome depression associated with old age, widowhood or caring for a sick partner. Having family members visit the old is refreshing to them (Kail and Cavanaugh 519). Old people are sometimes neglected or abused. This is not good as they require as minimum stress as possible. I have a changed opinion about old age, and will from now on emphasize on love and care for the old people. From this class, I have learnt of better ways of caring for and helping the older people. I have also gained an insight that can enable me advice old people into successful transition to old age. Plus, it has changed my view on old age. Old is

434Mod1Case Essay Example | Topics and Well Written Essays - 750 words

434Mod1Case - Essay Example Often cyber ethics education is based on one significant theory or combination of two theories. The two major theoretical approaches are teleological and deontological theories. Teleological theories states action’s consequences to be a measure of action’s good. On the other hand deontological theories consider action’s righteousness to be above goodness. Utilitarian foundation is a part of teleological theories. This foundation states that action of an individual should be able to maximize happiness and good for all who are affected by such actions. It highlights the factor that actions of a person should be based on probable consequences that may be resulted by the action before it is been executed. This theory claims that a person should think about each and every individual and not just person taking a decision. Deontological theory is an ethical study based on duties. It considers duty and fidelity toward principle to be most essential factors (Gold, 2010). This theory states that an action’s consequences are not that important in comparison to rightness of the action. As per this theory an action is said to be valid if actions that are taken by individuals do not lead to any form of contradiction. The basic concept of this theory is that individuals should work according to their intelligence and virtue; act justly, should tell truth and avoid any form of injury towards others. Both the theories have different elements which state the importance of cyber ethics. This form of education has gained its importance in the recent years where stealing music or video is considered to be equivalent to actual theft. Students are made aware about the different cyber crimes and its impact on others (Starr, 2011). Information technology in the present scenario has given liberty to individuals to access various data but also it has posed a threat to one’s privacy. In American schools

HR Plan Assignment Example | Topics and Well Written Essays - 500 words

HR Plan - Assignment Example Samsung Company was incorporated in 1938 in Korea and has steadily grown to be one of the greatest global brands in the digital electronics manufacturing industry. The steady growth of the company is attributed to the effective innovation and competent human resource management (Chang et al, 2012). HR Planning involves the consideration of initiatives and approaches to improve on the performance of an office or department tin an organization without merely being personal (Crim et al, 2013). This paper provides a simulation of HR plan intended for two key positions that are deemed to demand some appraisal going by the experienced performance outputs over the past few years. This HR plan is based on the designated offices in the U.S. section at the Consumer Business division. The offices and personnel selected for appraisal are the Marketing Manager and the Corporate Strategy Officer. The office of the marketing manager of the U.S. section of Samsung Inc has been deemed to be ineffectual in terms of new market niche developments. The target growth rate in terms of penetration has not been up scaling and therefore the need for HR appraisal. This appraisal will look into ways of improving the competency of the staff in the office of marketing manager with a view of facilitating greater data and information to the staff to improve their work. The corporate strategy office at the U.S. section of the Consumer Business division is also considered for further appraisal. This program should elicit for the department greater resources and managerial insights to be able to develop more effective strategies that will defend the niche markets and expand the brand appeal to new segments of the market. It is postulated that with greater brand appeal, the company and the division should almost double its sales and market penetration in the next two years among elite American consumers. The HR Plan will seek to

Macro Assignment Example | Topics and Well Written Essays - 250 words - 1

Macro - Assignment Example Voluntary, is when people do not work because they feel better off unemployed. Conversely, involuntary unemployment people are generally unable to find jobs despite having the knowledge and skills needed. This issue is important because its costs are essentially borne by the society. These costs are mainly: the national income is less than the potential due to output. As a result of this, the government loses tax revenue. With Lower national output, other employees lose additional wages that they might have earned. Firms also lose a lot of revenue as they could have engaged more staff (Macpherson, 2012). Additionally, with unemployment levels on the rise crimes and violence also rise in society. At college, a lot of money is spent on; tuition, books, transport, board, room, clothing and recreation. It is quite expensive to pay and maintain a student through college education. Therefore, the opportunity cost of doing a degree course is very expensive. The money that one pays from the stat to the end of a college degree is much. The standards of living of a student are higher even if one gets out of school after school with nothing (Macpherson, 2012). College education has some benefits these are; the salary received by college graduate is much higher than that of a non-graduate. A college graduate also gains skills that are useful in any job. An individual will also be able to socialize well with people in society. The benefits of a college degree are worth the opportunity cost, this is because of the skills and the knowledge one would have gained at the end. It is a must to go to college for a career path and also it tends to provide flexibility (Macpherson, 2012). College graduates earn a higher income and this is an indication that they differ from those who did not go to college. It’s may believe that college adds importance, not only to an individual but also to the

MS A.S.Thafeni Essay Example for Free

MS A.S.Thafeni Essay 1. How did I engage myself with the group? Deciding which group or organization to engage with was not easy for me. I had to play around with some ideas and think which one because we have plenty of them around here. In my community we have Trauma Center, FAMSA; we also have lay counselors who are making a difference in more informal way. However deciding how to approach one of them wasn’t easy at all. I felt anxious every time I had to make a choice. I reflected to one of my experiences I encountered long time ago when I relocated to another country (Angola) for three years. When I had to meet different people, different culture, language and so forth. It was totally new environment for me and I had to adjust very fast. The first step I took was to make an appointment with one nurse in charge in our local clinic to authorize me to do my observation in the clinic with the help of my nephew who was employed at the clinic. She agreed. I also went to FAMSA and try to negotiate my entry there as person who needs help, unfortunately, they were not in that day. Then I decided to engage with the group located in my clinic where I got permission. . I learned lay counselors are in attempt to bring change in our community. Targeted members are those patients who visit or come to clinic on a daily basis for various reasons. The group meets during the week (Monday to Friday) at 8am – 10pm. The establishment of the group was two years ago because the concern some few community members had. It seems it has been started by local community members who were concerned about certain issues that affect people. They felt that buy working together as community would bring a difference and enhance life of other people. They also thought that this group will bring some changes in their homes and to community as a whole. This awareness program is not static, new members are introduced daily, weekly and monthly as the group is informal. The program compels no one to stay, people do have right to choice and freedom and it’s being respected by everyone. The goal of this program is to make the people aware of some disease and illness that affect us and consciously and unconsciously. I understand since this program started two years ago, it has been successful. People show interests  and others report that there has been a radical change in their lives as now they know the importance of taking their treatment especially on time, completing the treatment, eating healthy, exercising, teenage pregnancy decreased as youth now know how to protect themselves against the diseases, abortions decreased and so forth. This kind of reports is what kept the program alive. I also understand this program reached so many people every month as they count approximately 300 to 400 monthly. Again they hope that in the long run the community will be better, HIV/AIDS, TB, Teenage pregnancy will be decreased by 50%. What made them certain is that in 2012 when this program commenced within six to seven months, TB and HIV/AIDS was combated seriously and clinic reported that 2% less/ reduced. I also learned that people wants to be taught with the language they understand so that they can participate fully about the things affect their lives on the daily basis. I came to know the group because I am also a community member who also uses the facilities available to my community such as the clinic. Most of the time when I visited my clinic I used to see people entering certain door and I asked a friend who was sitting next to me and also as I have mentioned above I have a nephew who is employed there about the group and she explained to me. Initially, I never give myself time to join or to be interested in whatever they are doing but studying this module made me to be interested in the group. My nephew who works at the clinic helped me to enter the space by introducing me to the nurse in charge. I made appointment with appointment with the nurse. I had to make an appointment because for me it indicated respect as I wouldn’t just enter as I please in the group without permission. I had five minutes with the nurse and explain who I am? What do I want to do? Why, How? When? And after that she gave me permission. What is important I  indicated that whatever I am going to observe here is strictly confidential; it’s only for my assignment purpose. The nurse introduced me to the facilitator who was facilitating the group and I was highly accepted as part of the family but as an observer. The main area of focus is to teach or  make the community members aware about various issues that affect them on the daily basis. Issues such as Teenage pregnancy, HIV/AIDS, TB, STI’s, etc. They also focused on teaching morality because they believe good morality will result in reduced mortality. 2. I had few assumptions before engaging in the context. Assumption 1- The Environment= the environment should be conducive so that members should be comfortable. Assumption 2-The group share common interest. Assumption 3- They group should share common problem. Assumption 4- They must have open communication. Assumption 5 They should have solution to their problem. Assumption 6 – Decisions are made collectively. All these assumptions are only based on my observations that are not confirmed. I was also aware that even though they form a group but they are still unique individuals with their unique experiences (proposition 1 2). These unique experiences will bring change to their lives. I also believed that as a group they have collective knowledge, skills and potential. The only thing that is required is the facilitator to release that potential resource. Aspects pertaining to the social context as well as social issues that the group is grappling with or the challenges the group is facing are denial and distortions about the disease such as HIV/AIDS. Some member of the group came with the interesting aspect that HIV/Aids caused by super natural causes. It is caused by people casting a spell over you (bewitched) (boloi- South Sotho). Some will say the disease can be cured, they know the traditional healers who cured somebody. Some will say its indication  of ancestors calling. Some claims that they don’t have food in order for them to take treatment. Because of these challenges the program had to be adjusted a little bit to accommodate these challenges. The members will somewhere somehow include God and super naturals in their discussions, for an example, a woman was taught about the HIV/AIDS illness, how we contact it and so forth, and she also made her inputs that in the Bible all these illnesses where predicted, therefore its not a miracle. During my observation I realized that people are struggling to relate with the  environment also with one another. For an example, during the session the group members were afraid to talk their hearts out. I can assume that members know each other perhaps as a neighbor, friend. Therefore, their friendship or neighbor relationship deprived them freely participation in the group as one will think that what others will do or say or one doesn’t want others to know about his /her business or issues the one struggling with. According to part two of the study Guide – The ‘cracked’ landscape Society in crisis. I have realized that people are not aware that they are not alone, they are not individuals. They failed to cherish the idea of ‘motho ke motho ka batho ba bang’ – ‘Humanity’. They still isolate themselves, still have negative thinking that no one can help them and yet they don’t realize that this behavior is abnormal as it makes us to live like animals – where we should be on a look out everyday – who says what, to w hom? In what manner? This behavior also creates tension between the people, create hunger, poverty, violence, discrimination (Study Guide for PYC3705:24). Our society is broken into smaller pieces. However, As I was observing this group I realized positive things about the members. Even though disclosing in public is not their way of life but they do need help. I saw this after the first session ended. Some of them wanted private dialogue with the facilitator. Others shared their experiences with others in private. That private conversation gave them hope and less despair and that allowed development among the group itself. The second session – the following day I saw different group than  yesterday in terms of enthusiasm, energy. The dialogue was just open and free and that also helped other to open up. I heared other member of the group says â€Å"Ka ikutlwa ke fodile† – â€Å"She now feels better or healed†. That where I learned that talking or opening up indeed heals and assist the government cost on medicine. I think the are some similarities and differences I have observed with regard to what constitute a counseling setting. Why I am saying this is because firstly, as I have mentioned above about the well reception I received from the group and the counselors. This indicated positive regard for others  Unconditional positive regard is one of the climate that the counselor should create so that people should feel accepted, and that how I felt. As I observed the counselor/ facilitator’s. According to study guide for PYC3705:40, explains that unconditional positive regard is being present is the basis from which people can explore thoughts, feelings and experiences. This is what I saw from the lay counselor. That is reason why members of the group were able to express their feelings about the HIV/AIDS issues. Even though members introduced their knowledge about traditional healers who can treat various illnesses, she was non – judgmental, she showed warmth through body langu age – used posture, maintained eye contact and that indicated one of the values that she should have – Respect. Secondly, she created the safe environment (proposition 17). She allowed the group members to be themselves. She let them to deal with the issues they felt strong about e.g. (What do you guys want us to talk about today?). She let them to self determine (proposition 4). She never judged them. She respected every one’s ideas. She listens to each and every one of them. She was attending every member of the group. The lay counselors even though they conduct counseling informally as they have no formal training in psychology , like Mrs. Bengu in the study guide for PYC3705 they provide emotional support in the community in collaboration with others. What I also observed in this group is ‘Confidentiality’. We know that this is a dilemma. One member in the group requested that what they discussed in there it should end there. She herself she doesn’t want to hear her problems outside that group. If her request is not respected, then she will be very disappointed. All members including the facilitator agreed on that and made promise to one another that they will be confidential. This indicated the unity of the group (proposition 3). The differences I saw was lay counselor couldn’t recognize the discrepancies between what the member was saying and how was said or behaved. She was just accepting what ever the member said. Two, non-verbal communication, what the member was communicating through her body language e.g. member is communicating something but she puts hands on her mouth. She doesn’t use minimal encouragers, open question paraphrasing and so forth. The lack of attentiveness skill. According to (Grobler and  Schenck 2009:46), attentiveness is the way in which the facilitator orientates him or herself physically and psychologically towards the clients. However, the counselor will answer her phone during the session with the client without apologies. This is the evidence that I have conducted a proper research. As I have mentioned earlier the group is located in my local clinic and is informal, is not registered, the counselors are not qualified or trained. Therefore, they make use of the pamphlets available in the clinic such as Drug-resistant, TB and HIV and TB in the Workplace. REFERENCES Grobler, H. Schenck, R. 2009. Person centred facilitation. 3rd edition. Oxford University Press Modutla, K. Semenya, B. 2010. Only study Guide for Transformative counseling encounters. University of South Africa. Louw, H. 2008-2010. Only study guide for Participatory community development in social work and the social service professions. University of South Africa.

Investing in Futures and Options Essay Example for Free

Investing in Futures and Options Essay INTRODUCTION Of late, investors who are in the stock and commodity are focusing their attention towards risk management especially due to high volatility nature. Since these volatility movements are uncertain, it has become foremost cause of vagueness for such investors. Since the globalization of trade and free trade between major countries has become the order of the day, all most all the investors have to be under mercy of the exchange rate fluctuations which results in volatility   .The notion that exchange rates , profitability and other factors   influence a firm’s value and therefore the price of its stock is widely held by financial analyst ,economists and corporate managers . The liberalization of economic policies and investment policies due to world trade organization’s (WTO) free flow of investments and trade between member countries and bilateral free trade agreements between countries have augmented internationalization of economic activity and exceptional era of world wide currency and interest rates instability. To counter these financial risks, new pioneering concept commodity and stock market hedging techniques have nurtured at a rapid speed. The main feature of the using derivatives through hedging is to have control over the financial risk and minimizing the effect of uncertain cash flows. Financial institutions have come to rescue to these corporations who have exposure to financial risk with the range of products to assist in risk management. By far the most significant event in finance during the past decade has been the extraordinary development and expansion of financial derivatives. These instruments enhance the ability to differentiate risk and allocate it to the investors most able and   willing to take it – a process that has undoubtedly improved national productivity growth and standards of living .’ Allen Green Span, Chairman, Board of Governors of the US Federal Reserve System. The structural advantage of derivatives i.e. leverage or gearing   makes them suitable for managing risk can also result in the generation of leveraged profits or in the event of adverse market movement , a significant losses. The main advantage of gearing is that the buyer or seller need only to cough up a small proportion of total price at the time of deal is executed. It may be 1% and 8% depending upon the volatility of the underlying commodity or instrument. In the case of exchange traded transactions, this deposit is recognized as â€Å"initial margin† and is expected to reflect the amount by which the price of a contract may vary in one day’s trading. At the day end, all contracts will be valued and if the price has been found to move against the position, the losing party will have to pay further â€Å"variation margin† calls. In contrary, if the price movement is positive, credit will be given to the party .It is this element of gearing that provides the opportunity to make large gains or losses. Prudent handling of this leverage will result in considerable profit maximization and if it handled inexpertly, may generate losses .In some cases , these losses though high but they are few in number when measured against volume of business and number of participants in derivative business .The contributory factors for sustaining loss includes excessive position taking ( in relation to capital) , fraudulent activity , unexpected market moves, ineffective risk management, insufficient product understanding and inadequacies in corporate policy governing their use. What is a derivative? Derivative is a mathematical word which refers to a variable, which has been derived from another variable and they have no values of their own. Derivatives derive their value from the value of some other asset, which is referred as the underlying. For instance, a derivative of the shares of AT T Corporation (underlying), will derive its value from the share price (value) of AT T Corporation. Likewise, a derivative contract on wheat depends upon the price of wheat. An agreement or an option to buy or sell the underlying asset of the derivative up to a certain time in the future at a predetermined price i.e. the exercise price by way of special contract is known as derivative contract. The contract also has a flat expiry period mostly in the range of 3 to 12 months from the date of origination of the contract. The price of the underlying asset and the expiry period of the contract determine the value of the contract. Financial derivatives comprises of underlying financial asset like currency, debt instruments, equity shares, share price index etc.Exchange-traded derivatives are derivative contracts that has been standardized and traded on the stock exchanges. Over-the –counter derivatives is one which has been customized as per the requirements of the user by negotiating with the other party involved. Some of the common forms of derivatives are Futures, Forwards and Options. Futures: Futures are the derivative contracts that give the holder the chance to buy or sell the underlying asset at a pre-specified price some time in the near future and usually thy come with standardized form like contract size, fixed expiry time and price. The future market is one where continues auction market and exchanges presenting the recent information about the supply and demand as regards to individual commodities or financial instruments like stocks . In other words, future market is one where buyers and sellers of variety of commodities, financial instruments get together to trade. The main aim of the future market is to manage price risk. The future price risk is averted by buying or selling futures contract, with a price level arrived at now, for items to be delivered in future. This is achieved by hedging which helps to shield against the risk of an adverse price change in the near future or use of futures to lock in an acceptable margin between their purchase and their selling price. In futures, bankers, farmers, traders, manufacturers will arrange for the purchase or sale of a futures contract. In future market, commodities are broken down into five categories namely agriculture, metallurgical, interest bearingassets, jndexes and foreign currency. Agricultural futures market includes oats, corn , wheat , soybeans , soy meal ,soyoil,sunflower oil ,cattles , live hogs   and pork bellies, lumber , plywood ,cotton, coffee, cocoa, rice, orange juice and sugar. For every one of these commodities, different contract months are available and it depends upon the harvest cycle. More aggressively traded commodities usually have more contract months available and a new type of contract is available almost every month to meet the growing institutional and corporate market. Futures on Metallurgical Products: Petroleum products and metals is being covered under this group and it includes platinum, gold, silver, palladium, copper, gasoline, crude oil, propane and heating oil. Every month a new type of contract emerges to cater the needs of ever increasing institutional and corporate market. Assets which bears interest: This has its origin during 1975 and products in these categories include treasury bonds, Treasury Bills, Municipal Bonds, Treasury Notes and Eurodollar deposits. It is also possible to trade contracts with the same maturity but different expected interest rate differentials. Futures on Indexes: Now futures are available on most chief indexes such as New York Stock Exchange Composite, SP 500, New York Stock Exchange Utility index, Russell 2000, Commodity Research Bureau (CRB), SP 400 Midcap, FT-Se 100 Index (London) and Value line. These stock index features are settled in cash and there is no delivery of goods is involved in this method. A trader has to settle his positions by buying or selling an offsetting position or in cash at expiration. Foreign Currency Futures: During the post war period, the exchange rates and interest rates were stable and the mechanism of fixed exchange rates of the Bretton Woods era enabled the corporations to know in advance their foreign exchange liabilities for their imports. But the collapse of Bretton Woods’s system after the war resulted in the introduction of general floating exchange rates replacing the earlier fixed system. The introduction of floating exchange rates have resulted in large unexpected movements in exchange rates that too in unforeseen directions and magnitudes which affected interest rate movements as the monetary establishment tried to influence the exchange rates by movements in interest rates. It is to be noted that the forward market in currencies is much bigger than the foreign exchange futures market. Further, there are cross currency futures that are being traded and these includes Deutsch mark / yen, Deutsch mark / French franc. Forwards Options: Forward is another form of a derivative contract but tailored to the needs of the user in terms of expiry date, contract size, and price. These contracts confer the holder the option to buy or sell the under lying at a pre-determined price some time in the future .Call option is one where the buyer has given his option to buy the underlying at the near future .Where as an option to sell the underlying at a specified price in the future is called as Put Option. As regards to the option contract, the buyer is not obliged to exercise the option contract. Generally, options can be traded on the stock exchange or on the OTC. In option, the participants may assume a position in an underlying futures contract at a certain price which is known as exercise or strike price within a particular period of time. The price or premium of the option is determined through action market trading. Swaps: Swaps contract was introduced in 1981 and can be considered as one of the latest financial innovations to manage financial risks. The contracting parties are obliged to exchange specified cash flows at specified intervals under a swap contract. In a nutshell, a swap contract can be defined as a series of forward contracts put together. If the exchange of interest rate payments in one currency for payments in another currency is devised, then it amounts to a currency swap. If the exchange between two parties of interest obligations or receipts in the same currency on an agreed amount of notional principal for an agreed period of time is devised, then it is known as interest rate swap. An interest rate swap is an agreement between two parties to exchange interest payments calculated on different bases over a period of time. Under interest rate swap, one party to the contract makes fixed –rate payments while the other party’s payments are based on a floating rate such as LIBOR. For instance, if a company which has borrowed from a bank at a floating rate (7 m LIBOR) may want to swap that for a fixed rate (7m LIBOR) so that they can cover the risk if the interest rates go up. On one side, they pay 7% (of the agreed notional principal) and receive 7m LIBOR and on the other side they pay 7m LIBOR straight out to repay their loan. Thus they have converted a floating rate loan into a fixed rate loan. The said bank may manages its own risk from the above swap transaction by backing it out with another swap , say by paying 6.95% for 7m LIBOR and thus they earn a profit of 0.5% difference thus avoiding the risk in the interest rate changes . The other different types of interest rate swap are: Basis swap: For instance, swapping 2m LIBOR for 4m LIBOR. Basic swaps are mostly used by mortgage companies because the get the mortgage payments on monthly basis. Both fixed Currency Swap : Both fixed and say fixed $ for fixed  £ Both floating currency swap: 2m $ LIBOR for 4 m Yen LIBOR. Cross Currency Swap: fixed  £ for 2m CHF LIBOR. Companies derive more flexibility to exploit their comparative advantage in their respective borrowing markets under currency swaps. Under interest rate swap, corporations try to focus on their comparative advantage in borrowing in a single currency in the short end of the maturity spectrum vs. the long –end of the maturity spectrum. USES OF DERIVATIVES: Derivatives are mainly used for speculation or hedging. For speculation, derivatives offer us leverage. For instance, instead of buying  £ 5Million bond in the anticipation that its price will rise up, one can buy an option on that bond, which might only cost  £ 2000. The profit chances or opportunities are the same less the price of the option but the risk is much less as the most we can loose in this deal is the option price ( £ 2000). For hedging, derivatives let you to seal the price now for a trade in future or at least limits the rise or fall of that price. An UK company holding a US bond which is on the verge of its maturity could buy an interest rate option to guarantee the dollar / sterling rate did not diminish the value of its bond. Volatility is regarded as the most precise measure of risk and its return. The greater the volatility, the greater the risk and the reward as it is evidenced in the transaction from bull to bear markets. It is to be observed in the bearish market, volatility and risk augment while returns disappear including short –selling returns. History: The very first exchange for trading derivatives started by Royal Exchange in London, which allowed forward contract. Likewise, the first future contract was introduced to Yodoya rice market in Osaka, Japan in 1650. Then in 1848, Chicago Board of Trade was started to handle futures market of US. Russell Sage, a famous New York financier introduced synthetic loans using the principle of put-call parity. Sage could able to create a synthetic loan by fixing the put, call and strike prices with interest rate poignantly higher than the US usury law permitted. Chicago Mercantile Exchange started International Monetary Market in 1972 which permitted trading in currency futures. The Chicago Board of Trade started first interest rate futures in 1975.Treasury bill futures contract was introduced in 1975 by Merc. The Chicago Board Options Exchange was started in 1973 and there were publications for the first time option pricing model of Fischer Black and Myron Scholes. Chicago Board Options Exchange created an option on an index of stocks which was originally known as CBOE 100 index which later known as SP 100. During 1980, Swaps and other over-the –counter derivatives were introduced. It was in 1994, the derivative trade witnessed a series of huge losses and this affected experienced trading firms like Metallgesellschaft and Procter and Gamble. Orange country, California which is the America’s wealthiest city was declared as bankruptcy due to derivative trading and use of leverage in a portfolio of short -term Treasury securities. DERIVATIVES OR DESTRUCTIVE? A CASE STUDY OF BARINGS, UK. Baring Brothers, a British merchant bank went to bankruptcy in 1995 after incurring a whooping loss of  £ 860 million occurred on the Singapore and Osaka derivative exchanges. Nick Leeson, the bank’s star trader and absence of management controls to monitor his activities were the main reasons for this debacle. During the period between 1992 and 1995, Lesson built up positions in futures and options contracts on the Nikkei 225 stock exchange index, which proved highly profitable in the early years. Futures positions were bought by Lesson on the Nikkei index and financed cash calls on them as they fell in value by selling put options on the contract, thereby producing a straddle and thus betting against volatility of the market. Simex derivative exchange in Singapore were used to book the contracts and he run a hedged position on Nikkei index futures and make money by arbitraging between Singapore and Osaka markets. However he ceased hedging on the purchases made in Singapore and took on risk. Due to unexpected volatility in the market, losses were incurred and these losses in fact exceeded the net worth of Baring Bank .Lesson was later imprisoned for the falsification of records in an attempt to cover up his activities. The rationale of this case law is to elucidate how a bank can face bankruptcy if there is no proper risk management system is in force. The case also establishes the concept of ‘value at risk ‘(VAR) which is a simple method to express the risk of a portfolio. Because of the recent derivatives disasters, end-users, regulators, financial institutions and central bankers are now resorting to VAR as a method to foster stability in financial markets .The case illustrates how VAR could have been utilized to Baring Bank case to warn its management of the risk they were facing in advance. VOLATILITY: Volatility has its effect on administered market and it is high when both supply and demand are inelastic and liable to random shocks. According to Rudiger Dornbusch, market always overshoots in reaction to unexpected changes in economic variables. Volatility is a type of market incompetence and it is a reaction to uncertainty and excessive volatility is unreasonable. Volatility in stock and commodity market is represented by sharp changes in prices and inventory levels and level of volatility itself has fluctuated over the time. Changes in future prices, spot prices and inventories are influenced by changes in volatility Volatility is a determinant of changes in price expressed in percentage terms without regard to direction especially in stock price and stock index levels , commodities and in financial intermediaries .For example , an increase from 200 to 201 in one index is as same as the volatility terms to an increase in 100 to 101 in another index , because both changes are 1% and as this 1% increase is equal to volatility terms to a 1 % price decline .There are four ways to explain the volatility or movement and they are historical volatility , future volatility , expected volatility and implied volatility . Historical volatility is an appraiser of actual price variation during a particular period in the past. Future volatility refers annualized standard deviation of daily returns during particular future period basically between current and an option expiration. Expected volatility is an investor’s forecast of volatility utilized in an option method to gauge the theoretical value of an option. Implied volatility is the volatility percentage that illustrates the current market price of an option and it is the indicator of an option’s price. Volatility is described as standard deviation of the yield of an asset and the value of an option always increases with volatility. The greater the volatility, the higher the option chance during its life and convertible to the underlying asset at a marginal profit and this methodology has been proved in the Black-Scholes formula. Black-scholes formula yield results during trends and unsuccessful when the market change sign. â€Å" The implied volatilities are efficient forecasts of future volatility since varying market conditions cause volatilities to change through time stochastically and traditional volatilities   can not correct itself to varying market conditions as ghastly .Stochastic volatility contradicts the assumption required by the Black-Scholes model –if volatilities do modify stochastically through moment in time, the Black-Scholes method is no longer the correct pricing method and an implied volatility derived from the Black-Scholes formula provides no fresh information. Black-Scholes formula is lacking on certain issues like the oblique volatilities of various options on the identical stock tend to differ disregarding the formulas hypothesize that a single stock can be correlated with only one value of implied volatility. The Black-Scholes formula mainly ignores the distribution of stock prices in US market.   Some studies have revealed severe deviation from the price process fundamental to Black-Scholes formula like excess kurtosis, skewness, time varying volatilities and serial correlation. Further Black –scholes deals with stochastic volatility poorly and it relies on impractical assumption that market dickers endlessly thereby ignoring institutional constraints and transaction costs. Stock Charting: Stock charting is the process of a graphical sequence record enables it easier to dapple the effect of cardinal happenings on authoritarian security’s price., its functioning over a period of time and whether it’s trading its higher or its lower or in between these. Traders are very particular in daily, intraday data to forecast short-term price movements.   Investors rely on weekly and monthly charts to mark long term trends and movements. Line chart, Bar chart, Candlestick Chart and point and figure chart are some of the examples of stock charting method.   Arithmetic and semi-log arithmetic scales are two methods of price scaling used in the stock charting method. When the price range is hemmed within a tight range and used in general for short-term charts and trading. Semi-log scales are useful for long term charts to estimate the percentage movements over a foresighted period of time including large movements. Stock and other securities are estimated in relative terms through tools lime PE, Price/Revenues and Price/Book and as such it will be more useful to analyse in percentage terms. Ocillator: This is an indicator which is calculated by taking 10 day moving average of the difference between the numbers of advancing and defining issues for authoritarian given index. An indicator will reflect whether an index is gaining or losing impetus, so the size of the moves is more significant than the level of the current reading. The level of the reading is influenced by how the oscillator changes each day thereby dropping a value ten days ago and adding today’s value. The scale in moves is also helpful when it is compared with the divergence from the index price. If the Dow climaxes at the same time, the oscillator peaks in overbought area and suggests a top. Divergence is said to be negative and momentum is declining when index makes a new high but the oscillator fails to make a higher .One can buy if the index declines at this point but oscillator moves into oversold territory. If the oscillator rises above a previous overbought level though the index rises but does not make new heights, it is said to be upside momentum exists to continue the rally. Support: A support level is the price at which buyers are anticipated to enter the market in considerable numbers to take control from sellers. As the market has its track record, when price falls to a new low and then soars, the buyers who ignored on the first low will be persuaded to buy if price returns to that level back .Fearing of missing out the opportunity for the second time, these traders may enter into market in adequate numbers to take control from sellers. As the result, there is a rally strengthening sensitivity that price is unlikely to fall further thereby creating a support level. Resistance: The price level at which the sellers are anticipated to enter the market in sizeable numbers to take control from buyers is known as resistance level. If price makes a new High and then move back, sellers who ignored the previous High will be predisposed to sell when price returns to that level back. Fearing of missing the opportunity for the second time, these sellers may enter the market in large numbers to overwhelm buyers. As the result, market perception will be reinforced that price is unlikely to increase higher and form a resistance level. CANDLE CHARTING: It is a price chart that shows the open, low, the high and close for a stock each day over a specified period of time .It is known as Japanese candles because they used to analyse the price of rice contracts. When the close is higher than the open , the same is represented by an white empty box in the candle charting .When the close is lower than the open , then it is represented by a solid black candle ,Colored candles are used to reflect the day’s volume. Investment strategies in stock and options Following is the most of common investment strategies for keeping investment objectives, financial means and risk tolerance. Despite of market crash in 1929, market break in 1987, market correction in 1989 and though the prices of all securities fell down drastically but broad movement of the market has seen their value steadily increased. One of the strategies is to buy and hold for long the high quality stocks or futures of stock or commodities .The buy –and-hold strategy offers one to profit from this long term forward trend of the stock market. Further, dividend investment plan offers small investors a painless method of building wealth. Dollar –Cost Averaging: This is also a long term strategy and one has to invest in a stock or mutual fund or futures at regular intervals monthly, quarterly or semiannually. The success of dollar-cost averaging relies on consistency of amount invested and the regularity of the payments so as to minimize pricing and timing risk. The success of the Dollar cost averaging depends upon the following factors. The plan for the investment should be for a long period i.e. from 7 years to 10 years .In the last 100 years, there were about 40 recessions or market corrections or a downturn about every 3 years and If one carry on to invest through about three of these corrections, the profits of dollar-cost averaging tend to be maximized. 2 .Investment at regular intervals is most preferred. Investment should be made regularly regardless of the price of the stock. Give preference to high quality of stocks or mutual funds and a company or fund with history of habitual dividend payments and possible for capital appreciation is a better choice. One has to make sure that he has enough strength so that he can adhere to the plan through highs and lows and sell out at the peak and thus the money allocated for dollar-cost averaging result in wealth-building funds, not committed funds.[i] Going Short: An investor who prefers short i.e. enters into futures contract by agreeing to sell and deliver the underlying at a price and wishes to make profit from declining price levels and thereby selling high now , the contract can be repurchased in the future at a lesser price thus creating a profit for the investor. 16.Spreads: It involve taking benefit of the price difference between two different contracts of the same commodity and spreading is believed to be the most conventional forms of trading in the futures market because it is much safer than the trading long / short futures contract. There are different types of spread namely calendar spread, inter-exchange spread and inter-market spread. Swing Trading: It denotes a technique of placing emphasis on playing the swings in the PPS, selling on the highs and buying on the lows rather than the swiftness of the trade. To complete the swing trade, it may need more than a day, a week or authoritarian month or longer period and channeling stock is pursued by the some swing traders. Flipping: It refers the process of trading a stock very quickly with in minutes or hours etc as past as possible may be on the same day. It is often used to explain a buy and sell with a share that is running and where the trader buys the stock as it is moving up and sells the same on even a higher point in a short period of time. A flipper aim is to maximize his profits by emphasizing on fast trades to earn quick profits. The risk is also less downside as the trader sits in a stock for a less time. [i] Hall, Alvin D., and Carolyn M. Brown. Investment Strategies Made Easy: Heres How to Overcome Your Fears of the Market and Invest like a Pro. Black Enterprise Mar. 1994: 66+. 2.Fisher, Black and Myron Scholes, â€Å"The pricing of Options and Corporate Liabilities â€Å"The Journal of Political Economy, 81,637-654. 3.Mackay, Charles. Extraordinary Popular Delusions and the Madness of Crowds: New York, Harmony Books (1980). 4.Chance .Don M.† A Chronology of Derivatives† Derivative Quarterly, 2 (winter, 1955) 53-60. 5.Thomas L. Friedman ,The World Is Flat: A Brief History of the Twenty-first Century Stephen Leeb, Glen Strathy ,The Coming Economic Collapse: How You Can Thrive When Oil Costs $200 a Barrel 7.George A. Fontanills, Tom Gentile The Volatility Course 8.George Soros, Paul A. Volcker The Alchemy of Finance (Wiley Investment Classics) 9.John C. Hull Options, Futures and Other Derivatives (6th Edition) 10.Marc Allaire ,The Options Strategist 11. George Kleinman, Trading Commodities and Financial Future: A Step by Step Guide to Mastering the Markets (3rd Edition). 12. Sheldon Natenberg ,Option Volatility Pricing: Advanced Trading Strategies and Techniques Jeffrey M. Christian, Commodities Rising: The Reality Behind the Hype and How To Really Profit in the Commodities Market. John J. Murphy ,Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance John F. Carter, Mastering the Trade (McGraw-Hill Trader’s Edge) 16. Joseph Kellogg, Trading From the Inside 17. Thomas N. Bulkowski ,Encyclopedia of Chart Patterns (Wiley Trading) 18.Stephen W. Bigalow, Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits

A Case Study Of Cadbury Schweppes Marketing Essay

A Case Study Of Cadbury Schweppes Marketing Essay Cadbury Schweppes was formed by a merger in 1969 between Cadbury and Schweppes. Since then the business has expanded into a leading international confectionery and beverages company. Through an active programme of both acquisitions and disposals the company has created a strong portfolio of brands which are sold in almost every country in the world. Cadbury Schweppes has nearly 54,000 employees and produces Fast Moving Consumer Goods (FMCG). Its products fall into two main categories: Confectionery Beverages. Its portfolio of brands include leading regional and local brands such as Schweppes, Dr Pepper, Orangina, Halls, Trebor, Hollywood, Bournvita, and of course, the Cadbury masterbrand itself. These Products are sold in a range of countries depending on consumer preferences and tastes. The core purpose of Cadbury Schweppes is working together to create brands people love. It aims to be judged as a company that is among the very best in the business world successful, significant and admired. The company has set five goals to achieve this, one of which relates to Corporate Social Responsibility (CSR) To be admired as a great company to work for and one that is socially responsible to its communities and consumers across the globe Cadbury plc is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. It has number one or number two positions in over 20 of the worlds 50 largest confectionery markets. Cadbury also has the largest and most broadly spread emerging markets business of any confectionery company. With origins stretching back nearly 200 years, Cadburys brands include many global, regional and local favourites including Cadbury, Creme Egg, Flake and Green Blacks in chocolate; Trident, Clorets, Dentyne, Hollywood, Bubbaloo and Stimorol in gum; and Halls, Cadbury Eclairs and The Natural Confectionery Company in candy. (Cadbury, 2010). Impact of social welfare and industrial policy initiatives on Cadburys and the wider community In the UK social expenditure accounts for between 50% -60% of government spending and includes- pension, unemployment, sickness/disability, heath/medical care. Investment involves business organisations recognising that they have a responsibility both to their local areas and society in general. For a company, being socially responsible means using its resources and its influence to shape the lives of fellow citizens for the better. The Cadbury Schweppes group has a Corporate Community Investment strategy of Creating Value in the Community. This focuses on creating community partnerships that generate real, sustainable added value in: * Education and enterprise * Health and welfare * The environment. EIRIS (Ethical Investment Research Service) survey 2002 commended the company for its carefully structured community involvement programme. CTB is also a member of the Business in the Community Percent Club; CTBs community contribution was around two of its UK pre-tax profits. In 2001 CTB launched its Community You Can Make a Difference programmes to maximise the impact of the business, its employees and community partners. Over 1,500 of the companys 7,000 workforce have been involved so far. Stakeholder expectations Cadbury Schweppes core purpose is Working together to create brands people love. The success of the organisation in meeting this purpose can be measured in terms of the value created for shareholders. However, this success is achievable only if the company respects its commitment to every one of its stakeholders. CTB believes in creating prosperous, educated and socially inclusive communities, not only because this is part of the companys heritage but because it is the right thing to do and makes good business sense. Corporate Community Investment has always been a core part of CTBs business philosophy. It is also something that its stakeholders expect. Stakeholders are the groups and individuals that play a part in an organisation. Stakeholders Enlightened companies see their stakeholder groupings as partners who help to shape and inform company plans and policies. The external environment Successful businesses seek to create a fit between their line of business, way of operating and external environment. In recent years, there have been attempts to make UK society more inclusive. Groups that used to be treated as outsiders (e.g. disabled people, single parent families, people living in areas of poverty and educational disadvantage) are being brought into the mainstream of social and economic activity. The current UK government is promoting social inclusion and the part that businesses can play in bringing it about. For example, the government has encouraged businesses to work in partnership with government agencies and the local community to: * Improve education and training opportunities * Support small local businesses * Promote housing projects * Create employment opportunities through Welfare to Work programme. Active citizenship In the modern world the obligations of business to society have broadened and companies like CTB are building on a heritage of good citizenship in a more strategic way. CTBs community contributions take many forms e.g. cash grants, sponsorship, donations in kind, as well as the time, effort and skills that CTB people put into the communities in which they live and work. Impact of macro-economic policy and the influence of global economy on Cadburys. Here is a terrific example of how a long established business sees an emerging economy not just opportunity for growing sales and profits but also as a centre for production. Spurred on by rising incomes and consumer demand, Cadburys is hoping to consolidate its dominant position in the Indian chocolate market by encouraging coconut plantations to switch production and establish a much bigger cocoa production capacity in India. The incentives to expand cocoa supply in India are strengthened by the 30% tariff imposed on imports of cocoa into India from countries such as Ghana and the Ivory Coast. The FT reports that Cadburys is hoping to source all of its cocoa beans domestically by 2015 and coconut farmers may hold the key as cocoa seedlings grow alongside coconut palms in southern India and therefore do not require fresh clearing of forests for plantations. The FT article claims that Cadbury controls more than 70 per cent of the chocolate market in India with a presence in 1.2m stores while Nestlà © controls about 25 per cent. It enjoys a dominant position in a market where sales are rising by more than 20 per cent per year. Reinforcing that market dominance is key for Cadburys it has spent heavily on marketing revamped chocolate brands in the Indian market including heavy cricket-related sponsorship but having a domestic supply chain will do more that pure marketing plays to keep their profits rising. Strengths Cadbury is the largest global confectionery supplier, with 9.9% of global market share. High financial strength (Sales turnover 1997,  £7971.4 million and 9.4%)[1] Strong manufacturing competence, established brand name and leader in innovation. Advantage that it is totally focused on chocolate, candy, chewing gum, unique understanding of consumer in these segments. Successfully grown through its acquisition strategy. Recent acquisitions, including Adams, 2003, enabled it to expand into important markets like the US market. Weaknesses The Company is dependent on the confectionery and beverage market, whereas other competitors e.g. Nestle [2] have a more diverse product portfolio, where profits can be used to invest in other areas of the business and RD. Other competitors have greater international experience Cadbury has traditionally been strong in Europe. New to the US, possible lack of understanding of the new emerging markets compared to competitors [3] . Threats Worldwide there is an increasingly demanding cost environment, particularly for energy, transport, packaging and sugar. Global supply chain in low cost locations [4]. Competitive pressures from other branded suppliers (national and global). Aggressive price and promotion activity by competitors possible price wars in developed markets. Social changes Rising obesity and consumers obsession with calories counting. Nutrition and healthier lifestyles affecting demand for core Cadbury products.[5] Opportunities New markets. Significant opportunities exist to expand into the emerging markets of China, Russia, India, where populations are growing, consumer wealth is increasing and demand for confectionery products is increasing. The confectionery market is characterized by a high degree of merger and acquisition activity in recent years. Opportunities exist to increase share through targeted acquisitions [6]. Key to survival within the FMCG market is increasing efficiency and reducing costs. Cadbury Fuel for Growth[7] and cost efficiency programmes seek to bring cost savings by: 1) Moving production to low cost countries, where raw materials and labour is cheaper ii) reduce internal costs supply chain efficiency, global sourcing and procurement, and wise investment in RD. Innovation is key driver. To respond to changes in consumer tastes and preferences healthier snacks with lower calories need to be developed. RD and product launches have led to sugar-free centres filled chewing gum varieties and Cadbury premium indulgence treat. Low-fat, organic and natural confectionery demand appears strong. The mission and values statement for Cadburys Cadburys means quality: this is our promise. Our reputation is built upon quality: Our commitment to continuous improvement will ensure that our promise is delivered. (Wikianswers, 2010). Aims and objectives: To improve the quality of their chocolate gets the word out about the business going fairtrade. The important aims are: To survive in the market. Have loads of stores worldwide To be an ongoing company. The future mission of Cadbury. The companys business strategy hinges on following for driving its future growth: Increase the width of chocolate consumption, through low price point packs and distribution focus. Increase depth of consumption, targeting regular chocolate consumers through generating impulse and a dominant presence at Point of Sale. Maintain image leadership through a superior marketing mix. Be a significant player in the gifting segment, through occasion linked gift packs. Build critical mass in the sugar business by introducing value-added sugar confectionery products. Future revenue growth will be through increasingly higher volumes rather than price increases. The management believes that price increase can only be a short term objective. It is volumes, which are very important to achieve the long-term goal of having a wide consumer base. Cadbury Online Annual Report Accounts 2008 Welcome to Cadbury. We create chocolate, gum and candy treats people love brands such as Cadbury Dairy Milk, Trident and Halls. Our vision is to be the biggest and the best confectionery company in the world. 2008 highlights Revenue growthà ¢Ã¢â€š ¬Ã‚   Operating margin* EPS growth** Dividend growth Financial highlights Base business revenues up 7% Underlying operating margins up 150 bps Performa EPS from continuing operations up 16% Return on invested capital up 110 bps Full-year dividend 16.4p, up 6% Strategic highlights Transformation of the business into a category-led pure-play confectionery company Vision into Action business plan well underway Simplified organisation from 2009 The company sees its growth in future in market expansion and new product launches. Increased reach, new launches, higher marketing spend and intensive promotions the mix, Cadbury is looking at to fuel its future growth. The company is also looking for acquisition of brands, and its huge cash reserves might be utilized for the purpose. The company manufactures and sells. 1Conduct our business in compliance with applicable environmental laws and regulations. Even where we are in full compliance, our objective will remain the control and reduction of the environmental impact of our operations reflecting industry best practice. 2 Implement programmes and reviews to evaluate our operations and check compliance against this policy. Management are required to have programmes in place to determine appropriate local targets and demonstrate continually improving Performance. 3 Adopt programmes to ensure efficient use of energy, raw materials and natural resources across all segments of our business and to minimise the quantity of waste and pollutants associated with our activities. 4 Work with relevant organisations, government bodies and public groups to promote efficiency in solid waste management through recycling, reuse and energy recovery of material. 5 Provide employees with a healthy and safe environment together with effective information and training to encourage the individuals contribution towards environmental responsibility. 6 Promote consideration of environmental concerns throughout the supply chain and with our business partners. In addition, we promote awareness of our environmental policies more generally. 7 Assign management responsibility for the environment throughout the business and maintain the organisation and operational procedures to ensure successful implementation of these policies. 8 Review and update our Environmental .Policy on a regular basis. Environmental Aspects Environmental Impacts. Group Environmental Management Reduction of environmental impacts and opportunity for better environmental performance Communication Training Good environmental understanding at all levels and co-ordination of activities thus minimising the risk of potential environmental harm. Water Integrity Protection of one of our primary raw materials Water Consumption Depletion of natural resources Wastewater Potential threat of pollution to water courses and damage to aquatic ecosystems Energy Use Contribution to global warming through greenhouse gases and depletion of natural resources Emissions to air Contribution to atmospheric pollution and global warming Solid Waste Occupation of landfill space; air emissions from incineration and landfill gas; potential contamination of land, groundwater and surface water Packaging Material Conservation Use of materials, waste, resource conservation and disposal to landfill Refrigerants Depletion of ozone layer by CFCs, HCFCs and Other ODSs (Ozone Depleting Substances) Source (Corporate register.com) Stakeholders analysis by Mendelows Matrix for Cadburys A Stakeholder Analysis is an approach that is frequently used to identify and investigate the Force Field formed by any group or individual who can affect or is affected by the achievement of the objectives of an organization. Stakeholder Analysis identifies the ways in which stakeholders may influence the organization or may be influenced by its activities, as well as their attitude towards the organization Typical stakeholders Owners and stockholders, investors Banks and creditors Partners and suppliers Buyers, customers and prospects Management Employees, works councils and labour unions Competitors Government (local, state, national, international) and regulators Professional associations, Industry trade groups Media Non-governmental organizations Public, social, political, environmental, religious interest groups, communities The power and influence of stakeholders: The extent to which stakeholders affect the activities of an organisation depends on the relationship between the stakeholder and the organisation. Mendelows matrix provides a way of mapping stakeholders based on the power to affect the organisation and their interest in doing so. It identifies the responses which management needs to make to the stakeholders in the different quadrants. Following categorisation of stakeholders in a manufacturing company: Low + Low : Small customers, Small Shareholders High + Low: Major Customers, Central Govt, Media Low + High: Employees, Environmental Groups, Local Community High + High: Institutional Investors, Local Planning Authority Responsibilities of Cadburys to its stakeholders and the strategies To stakeholders, key legal responsibilities eg consumer employment, disability discrimination and health and safety, diversity and equal opportunities, stakeholder pensions; wider responsibilities including ethical, environmental and ethical practice. (HNC Business, 2010). Cadbury Cocoa Partnership: In 2008 Cadbury set up the Cadbury Cocoa Partnership to secure the economic, social and environmental sustainability of around a million cocoa farmers and their communities in Ghana, India, Indonesia and the Caribbean, through: Improving cocoa farmer incomes: by helping farmers increase their yields and produce top quality beans Introducing new sources of rural income: through microfinance and business support and introducing additional income streams Investing in community led development: to improve life in cocoa communities Working in partnership: Farmers, governments, NGOs, international agencies and local organisations will work together to decide how the funding is spent and turn plans into action This ground-breaking initiative, which is carried out in partnership with the United Nations Development Programme (UNDP) and other partners, marked 100 years since the Cadbury brothers first began trading in Ghana and aims to holistically support the development of sustainable cocoa growing communities. Cadbury is investing  £45 million over 10 years. In June, 2009 Cadbury awarded Gold today for sustainable business practice by Business in the Community in their Corporate Responsibility Index, launches its Geography online educational resource this month. Skills Space supports the work of the Cadbury Cocoa Partnership and the Cadbury Dairy Milk Fairtrade certification. Skills Space enables students to learn about Ghana, how cocoa is grown, the lives of cocoa farmers, the interdependence between Ghana and chocolate manufacturers, and discover more about sustainable farming. Alex Cole, Global Director of Corporate Affairs at Cadbury said: As a global company, we have access to a huge amount of information and resources that can inspire and have real value to young people studying business and associated subjects. We have always received a large number of enquiries from teachers and pupils looking for real-life case studies to support learning in the classroom. Skills Space has been developed in specific response to this demand, and we hope that this new online resource will prove to be a useful tool in their studies. Through Skill Space, Cadbury reflects that it is more important than ever for businesses to acknowledge the impact they have on society and the environment, and commit to tackling the issues, not just because they should, but because its good for business, as acknowledged in the BiTC CR Index. Main Aspects of Porters Five Forces Analysis The original competitive forces model, as proposed by Porter, identified five forces which would impact on an organizations behaviour in a competitive market. These include the following: à ¢Ã¢â€š ¬Ã‚ ¢ The rivalry between existing sellers in the market. à ¢Ã¢â€š ¬Ã‚ ¢ The power exerted by the customers in the market. à ¢Ã¢â€š ¬Ã‚ ¢ The impact of the suppliers on the sellers. à ¢Ã¢â€š ¬Ã‚ ¢ The potential threat of new sellers entering the market. à ¢Ã¢â€š ¬Ã‚ ¢ The threat of substitute products becoming available in the market. Understanding the nature of each of these forces gives organizations the necessary insights to enable them to formulate the appropriate strategies to be successful in their market. (Thurlby, 1998). Force 1: The Degree of Rivalry: The intensity of rivalry, which is the most obvious of the five forces in an industry, helps determine the extent to which the value created by an industry will be dissipated through head-to-head competition. The most valuable contribution of Porters five forces framework in this issue may be its suggestion that rivalry, while important, is only one of several forces that determine industry attractiveness. à ¢Ã¢â€š ¬Ã‚ ¢ This force is located at the centre of the diagram; à ¢Ã¢â€š ¬Ã‚ ¢ Is most likely to be high in those industries where there is a threat of substitute products; and existing power of suppliers and buyers in the market. Force 2: The Threat of Entry: Both potential and existing competitors influence average industry profitability. The threat of new entrants is usually based on the market entry barriers. They can take diverse forms and are used to prevent an influx of firms into an industry whenever profits, adjusted for the cost of capital, rise above zero. In contrast, entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents position (Porter, 1980b; Sanderson, 1998). The most common forms of entry barriers, except intrinsic physical or legal obstacles, are as follows: Economies of scale: for example, benefits associated with bulk purchasing; Cost of entry: for example, investment into technology; Distribution channels: for example, ease of access for competitors; Cost advantages not related to the size of the company: for example, contacts and expertise; Government legislations: for example, introduction of new laws might weaken companys competitive position; Differentiation: for example, certain brand that cannot be copied (The Champagne). Force 3: The Threat of Substitutes: The threat that substitute products pose to an industrys profitability depends on the relative price-to-performance ratios of the different types of products or services to which customers can turn to satisfy the same basic need. The threat of substitution is also affected by switching costs that is, the costs in areas such as retraining, retooling and redesigning that are incurred when a customer switches to a different type of product or service. It also involves: Product-for-product substitution (email for mail, fax); is based on the substitution of need; Generic substitution (Video suppliers compete with travel companies); Substitution that relates to something that people can do without (cigarettes, alcohol). Force 4: Buyer Power: Buyer power is one of the two horizontal forces that influence the appropriation of the value created by an industry (refer to the diagram). The most important determinants of buyer power are the size and the concentration of customers. Other factors are the extent to which the buyers are informed and the concentration or differentiation of the competitors. Kippenberger (1998) states that it is often useful to distinguish potential buyer power from the buyers willingness or incentive to use that power, willingness that derives mainly from the risk of failure associated with a products use. This force is relatively high where there a few, large players in the market, as it is the case with retailers an grocery stores; Present where there is a large number of undifferentiated, small suppliers, such as small farming businesses supplying large grocery companies; Low cost of switching between suppliers, such as from one fleet supplier of trucks to another. Force 5: Supplier Power: Supplier power is a mirror image of the buyer power. As a result, the analysis of supplier power typically focuses first on the relative size and concentration of suppliers relative to industry participants and second on the degree of differentiation in the inputs supplied. The ability to charge customers different prices in line with differences in the value created for each of those buyers usually indicates that the market is characterized by high supplier power and at the same time by low buyer power (Porter, 1998). Bargaining power of suppliers exists in the following situations: Where the switching costs are high (switching from one Internet provider to another); High power of brands (McDonalds, British Airways, Tesco); Possibility of forward integration of suppliers (Brewers buying bars); Fragmentation of customers (not in clusters) with a limited bargaining power (Gas/Petrol stations in remote places). The nature of competition in an industry is strongly affected by suggested five forces. The stronger the power of buyers and suppliers, and the stronger the threats of entry and substitution, the more intense competition is likely to be within the industry. However, these five factors are not the only ones that determine how firms in an industry will compete the structure of the industry itself may play an important role. Indeed, the whole five-forces framework is based on an economic theory know as the Structure-Conduct-Performance (SCP) model: the structure of an industry determines organizations competitive behaviour (conduct), which in turn determines their profitability (performance). In concentrated industries, according to this model, organizations would be expected to compete less fiercely, and make higher profits, than in fragmented ones. However, as Haberberg and Rieple (2001) state, the histories and cultures of the firms in the industry also play a very important role in shaping competitive behaviour, and the predictions of the SCP model need to be modified accordingly. Cadburys objectives of three major stakeholders There are many stakeholders in a business. Ideally all stakeholders will have common views at what the corporate should be. This is, in reality, most unlikely .The reason of groups having a stake in any business are so fundamentally different that their will be many occasion when their interests diverge or conflict. A business have to find a way of satisfying these different interest especially those of powerful and influential stakeholders but there is no sure or safe route through this dilemma. Some of issue involved when considering the objectives of certain important stakeholders. The objective of other stakeholders The objectives of the business Stakeholders Investors clearly want to be rewarded for their stake in the business. This reward must be at least equal to that which would be available elsewhere and should also reflect the measure of risk associated with investing in a particular business, e.g. Investors in Bio Tech businesses expecting highly rewards because of the risk associated with this type of research, it may not be commercially successful. Shareholders reward comes from annual dividend and increased the prices for share they owned. The extent of reward to shareholders is dependent on number of factors. the size of after tax profits determined by companies performance but also by the gearing ratio of the business as interest on lone is always paid before tax, and therefore before dividend s the plans of the directors to retain profits to development for future of the business the prospect for the company and the economy in general will be the main driving forces behind the share price charges. Shareholders are protected by law because their positions thought to be weak compare to the business itself, the main right they have are: to receive annual accounts Stakeholders Main objectives Work force * To receive fair wages * To ensure good working condition. * To ensure their jobs through the survival and expansion of the business. Customers * To obtain good value for money from the goods and services purchased. * To receive high level of customer services * To receive after sale-service and supply of spare from a business which survives in the future. Suppliers * To continue to sell profitably to the business * To be paid promptly and fully for goods supplied Schweppes plc