Analysis On Current Phase And Opportunities Of Red Bull...

MARKETING AUDIT This phase provides analysis on current phase and opportunities of Red Bull using Situation analysis and SWOT analysis (see appendix 2). Authoritative writers like Kotler (1977), define marketing audit as an instrument to judge an organization’s overall commitment to a market orientation. Marketing audit helps in increasing the profitability of the company (Kotler, 1999). INTERNAL ANALYSIS i. The Company The organization s inside investigation manages the organization s assessment goals, procedure, and capacities (Wikipedia, 2013). This assists the company to show the quality of its plan of action, whether there are ranges for development and how well the organization fits the outer environment. The Red Bull†¦show more content†¦It has seen a 60% rise in volume sales over 2007-2012 in parallel with a 64% rise in volume sales during the same period (Price, 2012). The combined value of sports and red bull sales in 2012 was around  £1.2 billion and red bull accounted for over 80% of this figure at around  £1.0 billion (Price, 2012). Red bull has outstanding performance as of 2013 in terms of sales, revenues, productivity and operating profits. These positive results can be attributed to the outstanding sales in the red bull market shown on the tab 2.0 below. These outstanding sales happened as a result of efficient cost management and the on-going brand investment; Red Bull Market (Countries) Sales in percentage (%) India +55% Japan +32% Turkey +18% Scandinavia +16% Russia +13% Brazil +12% Also, Red Bull uses buzz promoting methodology as its principle advertising procedure. Its piece of the pie deals and request builds each year and deals are required to continue ascending in the up and coming year. The greater part of Red Bull‟s deals originate from circulating nations like Middle East, Far East, Europe and USA. Despite the fact that the interest for Red Bull has expanded, the company‟s piece of the overall industry in USA for instance has gone down from 75% in 1998 to 47% today (Robin, 2010). Because of that, Red Bull‟s mission for development is focusing on the centerShow MoreRelatedRed Bull Management: Marketing, Competitors, Target Audience, Challenges, and Factors2066 Words   |  9 Pages Index 1. Introduction 2. Red bull marketing strategy 3. Red bull competitors 4. Red bull audience target 5. Red Bull challenges faced by the management decision strategy 6. Red bull internal and external factors 7. Conclusion (Devi 2011) Introduction It increases endurance, accelerates the ability of concentration and reaction rate, gives more energy and improves mood. All this can be found in a can of Red Bull energy drink that, thanks in large part to a good marketingRead MoreAnalysis of Building Brand Equity of Non Traditional Ways Red Bull11410 Words   |  46 PagesTABLE OF CONTENTS SITUATION ANALYSIS---------------------------------------------------------------------1-12 †¢ Brand History ---------------------------------------------------------------------------------1 †¢ Company Evaluation-----------------------------------------------------------------------1-2 †¢ Product Evaluation-------------------------------------------------------------------------2-4 †¢ Consumer Evaluation----------------------------------------------------------------------4-6 Read MoreRed Bulls Marketing Mix4931 Words   |  20 PagesIntroduction Originally established in Thailand in 1962 under the name Krating Daeng, Red Bull was incorporated in 1984 with its head office in Austria. It is now a market leader in the energy drink segment with presence in over 130 countries and an employee base of over 3,900 worldwide. It recorded a turnover of $2.6 billion in 2006 with a whopping 300% increase in global sales as compared to the year 2000. Starting with its first international foray in the neighbouring Hungary in 1993, it hasRead MoreRed Bulls Marketing Mix4937 Words   |  20 PagesIntroduction Originally established in Thailand in 1962 under the name Krating Daeng, Red Bull was incorporated in 1984 with its head office in Austria. It is now a market leader in the energy drink segment with presence in over 130 countries and an employee base of over 3,900 worldwide. It recorded a turnover of $2.6 billion in 2006 with a whopping 300% increase in global sales as compared to the year 2000. Starting with its first international foray in the neighbouring Hungary in 1993, it hasRead MoreStrategic Analysis of Red Bull GmbH Essay3873 Words   |  16 Pagesï » ¿Red Bull Gives You Wings Arguably one of the most entrepreneurial firms of recent times, there is no denying Red Bull GmbH is a powerful force. Founded in the mid 1980’s by Austrian entrepreneur Dietrich Mateschitz created the unique formula providing millions of people with ‘wings’ on a daily basis. Back in 1984, Mateschitz discovered the need for a coffee alternative. Alongside Mr Yoovidhya they developed Red Bull from Krating Daeng – a thai version of Red Bull – turning the beverage intoRead MoreRed Bull5585 Words   |  23 PagesBackground of Key Problem The success of Red Bull majorly lies behind their unique marketing strategy which is usually called guerilla marketing, buzz marketing or in simpler words, marketing based completely on Below-the-line activities, word of mouth, endorsements etc. This unconventional marketing has been applied in Pakistan also where instead of executing Above-the-line promotions (which usually work very well in Pakistan and communicate to a larger audience), they have stuck to their unusualRead MoreRed Bull Marketing Analysis9152 Words   |  37 PagesContents Introduction 1. Why did we choose Red Bull 2. Executive summary I) Company presentation II) Macro Analysis 1. Market Descriptions 2. PESTLE 3. Five Porter Forces III) Micro Analysis IV) Objectives Strategy 1. Customer Analysis 2. Segmentation 3. Targeting 4. Positioning 5. Marketing Mix V) Financial Statement VI) Recommendations Conclusion Reference Introduction Red Bull is the leader of the energy drink market. This company created in 1984 by Dietrich Mateschitz performsRead MoreMarketing Activities by Redbull9424 Words   |  38 Pages â€Å"If we don’t create the market, it doesn’t exist. We don’t bring the product to the consumer; we bring consumers to the product.† Red Bull Co-founder Dietrich Mateschitz Executive Summary This paper is an analytical look into the external and internal marketing activities conducted by Red Bull in the United Kingdom and in Thailand. Through comparing Red Bull’s position within these two nations we intend to define the differences in the marketing and branding strategy of the product withinRead MoreMonster Energy Essay11236 Words   |  45 Pages| Product Analysis: Monster Energy Drink | Bill ClymerWednesday August 14, 2013Written by: Maira Khalid | PART A Situation Analysis Monster Beverage Corporation The Hansen Beverage company (recently changing their name to Monster Beverage Corporation on January 5th of 2012), was a family owned and operated company in the 1930’s, selling freshly squeezed juices to local film studios. In the 1970’s, one of the Hansen brothers decided to transition their beverage business into marketingRead MoreRed Bull - the Anti-Brand Brand6119 Words   |  25 PagesCommunication: Research and Planning Spring exam 2012 Red Bull – The Anti-brand brand Question 1: Red Bull was launched in Austria in 1987, and in the 25 years that has passed since then, many things have happened that could and should affect the way Red Bull markets and brands its product as opposed to how it was done in the years after the launch. All though Red Bull was launched in 1987, it was not until 1992 that the company began expanding its distribution – first to other European

Biography of Field Marshal Sir Harold Alexander

Born December 10, 1891, Harold Alexander was the third son of Earl of Caledon and Lady Elizabeth Graham Toler. Initially educated at Hawtreys Preparatory School, he entered Harrow in 1904. Departing four years later, Alexander sought to pursue a military career and gained admission to the Royal Military College at Sandhurst. Completing his studies in 1911, he received a commission as a second lieutenant in the Irish Guards that September. Alexander was with the regiment in 1914 when World War I began and deployed to the Continent with Field Marshal Sir John Frenchs British Expeditionary Force. In late August, he took part in the retreat from Mons and in September fought at the First Battle of the Marne. Wounded at the First Battle of Ypres that fall, Alexander was invalided to Britain. World War I Promoted to captain on February 7, 1915, Alexander returned to the Western Front. That fall, he took part in the Battle of Loos where he briefly led the 1st Battalion, Irish Guards as an acting major. For his service in the fighting, Alexander was awarded the Military Cross. The following year, Alexander saw action during the Battle of the Somme. Engaged in heavy combat that September, he received the Distinguished Service Order and the French LÃ ©gion dhonneur. Elevated to the permanent rank of major on August 1, 1917, Alexander was made an acting lieutenant colonel shortly thereafter and led the 2nd Battalion, Irish Guards at the Battle of Passchendaele that fall. Wounded in the fighting, he quickly returned to command his men at the Battle of Cambrai in November. In March 1918, Alexander found himself in command of the 4th Guards Brigade as British troops fell back during the German Spring Offensives. Returning to his battalion in April, he led it at Hazebrouck where it sustained heavy casualties. Interwar Years Shortly thereafter, Alexanders battalion was withdrawn from the front and in October he assumed command of an infantry school. With the end of the war, he received an appointment to the Allied Control Commission in Poland. Given command of a force of German Landeswehr, Alexander aided the Latvians against the Red Army in 1919 and 1920. Returning to Britain later that year, he resumed service with the Irish Guards and in May 1922 received a promotion to lieutenant colonel. The next several years saw Alexander move through postings in Turkey and Britain as well as attend the Staff College. Promoted to colonel in 1928 (backdated to 1926), he took command of the Irish Guards Regimental District before attending the Imperial Defense College two years later. After moving through various staff assignment, Alexander returned to the field in 1934 when he received a temporary promotion to brigadier and assumed command of the Nowshera Brigade in India. In 1935, Alexander was made a Companion of the Order of the Star of India and was mentioned in despatches for his operations against the Pathans in Malakand. A commander who led from the front, he continued to perform well and in March 1937 received an appointment as an aide-de-camp to King George VI. After taking part in the Kings coronation, he briefly returned to India before being promoted to major general that October. The youngest (age 45) to hold the rank in the British Army, he assumed command of the 1st Infantry Division in February 1938. With the outbreak of World War II in September 1939, Alexander prepared his men for combat and soon deployed to France as part of General Lord Gorts British Expeditionary Force. A Rapid Ascent With the rapid defeat of Allied forces during the Battle of France in May 1940, Gort tasked Alexander with overseeing the BEFs rearguard as it withdrew toward Dunkirk. Reaching the port, he played a key role in holding off the Germans while British troops were evacuated. Assigned to lead I Corps during the fighting, Alexander was one of the last to leave French soil. Arriving back in Britain, I Corps assumed a position to defend the Yorkshire coast. Elevated to acting lieutenant general in July, Alexander took over Southern Command as the Battle of Britain raged in the skies above. Confirmed in his rank in December, he remained with Southern Command through 1941. In January 1942, Alexander was knighted and the following month was dispatched to India with the rank of general. Tasked with halting the Japanese invasion of Burma, he spent the first half of the year conducting a fighting withdrawal back to India. To the Mediterranean Returning to Britain, Alexander initially received orders to lead the First Army during the Operation Torch landings in North Africa. This assignment was changed in August when he instead replaced General Claude Auchinleck as Commander-in-Chief, Middle East Command in Cairo. His appointment coincided with Lieutenant General Bernard Montgomery taking command of the Eighth Army in Egypt. In his new role, Alexander oversaw Montgomerys victory at the Second Battle of El Alamein that fall. Driving across Egypt and Libya, Eighth Army converged with Anglo-American troops from the Torch landings in early 1943. In a reorganization of Allied forces, Alexander assumed control of all troops in North Africa under the umbrella of the 18th Army Group in February. This new command reported to General Dwight D. Eisenhower who served as Supreme Allied Commander in the Mediterranean at the Allied Forces Headquarters. In this new role, Alexander oversaw the Tunisia Campaign which ended in May 1943 with the surrender of over 230,000 Axis soldiers. With victory in North Africa, Eisenhower began planning the invasion of Sicily. For the operation, Alexander was given command of the 15th Army Group consisting of Montgomerys Eighth Army and Lieutenant General George S. Pattons US Seventh Army. Landing on the night of July 9/10, Allied forces secured the island after five weeks of fighting. With the fall of Sicily, Eisenhower and Alexander rapidly began planning for the invasion of Italy. Dubbed Operation Avalanche, it saw Pattons US Seventh Army headquarters replaced with Lieutenant General Mark Clarks US Fifth Army. Moving forward in September, Montgomerys forces began landing in Calabria on the 3rd while Clarks troops fought their way ashore at Salerno on the 9th. In Italy Consolidating their position ashore, Allied forces commenced advancing up the Peninsula. Due to the Apennine Mountains, which run the length of Italy, Alexanders forces pushed forward on two fronts with Clark in the east and Montgomery in the west. Allied efforts were slowed by poor weather, rough terrain, and a tenacious German defense. Slowly falling back through the fall, the Germans sought to buy time to complete the Winter Line south of Rome. Though the British succeeded in penetrating the line and capturing Ortona in late December, heavy snows prevented them from pushing east along Route 5 to reach Rome. On Clarks front, the advance bogged down in the Liri Valley near the town of Cassino. In early 1944, Eisenhower departed to oversee planning of the invasion of Normandy. Arriving in Britain, Eisenhower initially requested that Alexander serve as the ground forces commander for the operation as he had been easy to work with during earlier campaigns and had promoted cooperation a mong Allied forces. This assignment was blocked by Field Marshal Sir Alan Brooke, Chief of the Imperial General Staff, who felt that Alexander was unintelligent. He was supported in this opposition by Prime Minister Winston Churchill who thought the Allied cause to be best served by having Alexander continue to direct operations in Italy. Thwarted, Eisenhower gave the post to Montgomery who had turned Eighth Army over to Lieutenant General Oliver Leese in December 1943. Leading the newly re-named Allied Armies in Italy, Alexander continued to seek a way to break the Winter Line. Checked at Cassino, Alexander, at Churchills suggestion, launched an amphibious landing at Anzio on January 22, 1944. This operation was quickly contained by the Germans and the situation along the Winter Line did not change. On February 15, Alexander controversially ordered the bombing of the historic Monte Cassino abbey which some Allied leaders believe was being used as an observation post by the Germans. Finally breaking through at Cassino in mid-May, Allied forces surged forward and pushed Field Marshal Albert Kesselring and the German Tenth Army back to the Hitler Line. Breaking through the Hitler Line days later, Alexander sought to trap the 10th Army by using forces advancing from the Anzio beachhead. Both assaults proved successful and his plan was coming together when Clark shockingly ordered the Anzio forces to turn northwest for Rome. As a result, the German Tenth Army was able to escape north. Though Rome fell on June 4, Alexander was furious that the opportunity to crush the enemy had been lost. As Allied forces landed in Normandy two days later, the Italian front quickly became of secondary importance. Despite this, Alexander continued pushing up the peninsula during the summer of 1944 and breached the Trasimene Line before capturing Florence. Reaching the Gothic Line, Alexander commenced Operation Olive on August 25. Though both Fifth and Eighth Armies were able to break through, their efforts were soon contained by the Germans. Fighting continued during the fall as Churchill hoped for a breakthrough which would allow for a drive towards Vienna with the goal of halting Soviet advances in Eastern Europe. On December 12, Alexander was promoted to field marshal (backdated to June 4) and elevated to Supreme Commander of the Allied Forces Headquarters with responsibility for all operations in the Mediterranean. He was replaced Clark as leader of the Allied Armies in Italy. In the spring of 1945, Alexander directed Clark as Allied forces launched their final offensives in the theater. By the end of April, Axis forces in Italy had been shattered. Left with little choice, they surrendered to Alexander on April 29. Postwar With the end of the conflict, King George VI elevated Alexander to the peerage, as Viscount Alexander of Tunis, in recognition of his wartime contributions. Though considered for the post of Chief of the Imperial General Staff, Alexander received an invitation from Canadian Prime Minister William Lyon Mackenzie King to become Governor-General of Canada. Accepting, he assumed the post on April 12, 1946. Remaining in the position for five years, he proved popular with Canadians who appreciated his military and communication skills. Returning to Britain in 1952, Alexander accepted the post of Minister of Defense under Churchill and was elevated to Earl Alexander of Tunis. Serving for two years, he retired in 1954. Frequently visiting Canada during his retirement, Alexander died on June 16, 1969. Following a funeral at Windsor Castle, he was buried at Ridge, Hertfordshire. Selected Sources History of War: Harold AlexanderWorld War II Database: Harold Alexander

Summary Of A Cat Broke My Arm - 1283 Words

Shyann Downey When a Cat Broke My Arm It was the beginning of fall in 2011, so the weather was still pretty warm. I was in fifth grade so I was about 10 years old. My friend Sierra and I were at her house playing in the yard. She lives just two houses from me, so we ran back and forth from her house to mine all the time. We would usually go roller blading, play catch, go to the park behind our house and do lots of fun things. When we would go roller blading we only had one pair of roller blades so she would wear the left one and I would wear the right one. Her left leg was her dominant leg and mine was my right leg so it worked out perfectly. We decided to go play with the neighbors’ new kitten. Her name was daisy and she was a light†¦show more content†¦Before I answered daisy came up to me and sniffed my head and ran away and Sierra and I once again burst into laughter. Sierra ran to get her step dad and he came over and offered to carry me to my house but I was able to walk. When we got to my house my mom was just coming out because sierra had ran to get her. My mom asked me if I wanted to go to the hospital but I had a weird fear of hospitals so I said no. She looked at my arm and told me if it got any worse we were going to the hospital. So I went and sat in my brothers room with him for a couple minutes to see if it would stop hurting but it didn’t, I could feel it throbbing and it was very painful. My mom called my name and I went into the living room where she was sitting and she looked at it again and she said we were going to the hospital. So my mom, my brother and I all got in the car and went to the emergency room. When we got there we went and told the ladies at the front all my information and what had happened. We sat in the living room for about an hour and a half which felt like forever. Finally they called us back and brought me up to the x-ray room. Getting x-rays was awful because I was in so much pain and I had to move my arm in a bunch of different posit ions and movements. When we got the x-rays back we found that I did break my arm. It was broke right next to my elbow. They put a temporary cast on my arm until I had surgery theShow MoreRelatedSerial Killers Speech1533 Words   |  7 Pagesï » ¿Name: Whitley Gatliff Date: October 2, 2014 COMS 108. _T, THz 9:10-10:10____ Instructor: Mr. Randy L. Manis TITLE OF SPEECH: Killing time General Purpose: To inform. Specific Purpose: To inform my audience about Serial Killers. Central Idea: To show my audience why serial killers kill and what motivates them. INTRODUCTION Tell them what you are going to tell them. I. Attention Getter: What would you do as a young college girl at a grocery store walking to your car and you see thisRead MoreAnalysis Of `` City Of Thieves `` By David Benioff1785 Words   |  8 Pagesruthless image of drastic measures that must be taken to survive the brutality of the war. First of all, I am going to write a summary of City of Thieves to get a better understanding of what is happening in the novel. Second, I will write the main struggles that people in the novel have to face and then elaborate on my opinions of each character. Lastly, I will sum up my final thought. Sadly, we cannot stop people from showing their true colors because it is a natural instinct to survive accordingRead MoreSummary Of Claudia Macteer 2460 Words   |  10 PagesSummary Claudia MacTeer is an adult, telling us about certain events that took place in the fall of 1941. She was a child back then, around nine years old, but she still remembered how the marigolds didn’t bloom that fall, and she and her sister thought it was probably because of their friend, Pecola, was having her father’s baby. She then tells us that Pecola’s father, Cholly Breedlove and the baby are dead. Then there’s the first season, a flashback, in Autumn in 1940, a year before the fall whenRead MoreChanel Handbags, Target, and Salvation Army Swot Analysis13115 Words   |  53 Pagessegment. These three choices were derived from knowing that these three different socially classified consumers will not be shopping at the same place. Also, these three diverse consumers purchase purpose is most likely for different reasons. Moreover, my own fascination, collection, and expertise in handbags were a drive to conduct in depth research about this product. There are hundreds of handbags being offered to luxury brand consumers each season, but to most women options are necessary and evenRead MoreA Picatrix Miscellany52019 Words   |  209 PagesA PicA Trix MiscellAny Underground Edition 2007 e.v. CONTENTS On the Picatrix I. Introduction to the Picatrix (The Aim of the Sage) of al-Majriti, Maslamati ibn Ahmad II. Summary of the Contents of the Picatrix III. Excerpt from a Lecture on Alchemy by Terence McKenna On the Moon and the Lunar Mansions IV. Extracts on the Moon V. The Mansions of the Moon: â€Å"On the Creation, Proportion and Composition of the Heavens for the Fashioning of Images† VI. The Picatrix: Lunar Mansions in Western AstrologyRead MoreBrill Torts Outline12018 Words   |  49 PagesLiability if: 1. foreseeable that children will trespass for whatever reason. (knows or has reason to know) 2. foreseeable that danger is death or serious bodily harm (fall or break arm-- not serious.) (knows or has reason to know) 3. (subjective one b/c of their youth), child does not appreciate danger, older kids probably know. 4. burden is slight compared toRead MoreLogical Reasoning189930 Words   |  760 PagesCollege; and Stephanie Tucker, California State University Sacramento. Thinking and writing about logical reasoning has been enjoyable for me, but special thanks go to my children, Joshua, 8, and Justine, 3, for comic relief during the months of writing. This book is dedicated to them. For the 2012 edition: This book is dedicated to my wife Hellan whose good advice has improved the book in many ways. vi Table of Contents Preface.............................................................Read MoreIgbo Dictionary129408 Words   |  518 Pagessuch as the names of fishes, which were not in the first edition. Other words were added or revised from other sources, but in order to keep the size within manageable limits not all possible sources have been exploited. I am particularly grateful to my reviewers, who pointed out some of the glaring errors; I hope they will find this edition at least slightly less faulty. I am very grateful to Dr (now Professor) E.N. Emenanjá » , Mr (now Dr) P.A. Anagbogu, and to Miss Helen Joe Okeke and Miss Ifeoma OkoyeRead MorePredatory Pricing Essay16086 Words   |  65 Pagesdecision was referred to with approval by the Australian High Court in Boral. Purpose was not a required element for a ï ¬ nding of predatory pricing under the Brooke Group test of monopolisation, but is still a component of the â€Å"attempt to monopolize† arm of the United States provision. The requirement for recoupment in Brooke Group implicitly recognised the Chicago School’s theories, as it did not consider the other less obvious motivations for predatory pricing recognised by the Post-Chicago SchoolRead MoreLenin13422 Words   |  54 Pagesmost of the mass Social Democratic parties of Europe supported their homelands war effort. At first, Lenin disbelieved such political fickleness, especially that the Germans had voted for war credits; the Social Democrats war-authorising votes broke Lenin s mainstream connection with the Second International (1889–1916). He opposed the Great War, because the peasants and workers would be fighting the bourgeoisie s imperialist war—one that ought be transformed to an international civil war

The Culture of Narcissism.Critical Book Review Essay

Critical book review: Christopher Lasch (1991) The Culture of Narcissism: American Life in an Age of Expectations The culture of narcissism was widely recognised as a socio-cultural critique of American society when published in 1979. Written by Christopher Lasch, the book analyzes a social phenomenon identified by Christopher Lasch as ‘cultural narcissism’, a process by which certain attributes of the pathological branch of narcissism (Bocock, 2002) become societal characteristics (Lasch, 1991). This review will be analyzing the relevance of the book within wider sociological debate. I will argue that although the book identifies a recognisable social trend it fails to deomonstrate a specific cause or reason for that trend. The†¦show more content†¦According to Lasch we have become a society of consumers rather than producers. Marx (1844) saw humanity as creative, purposive labourers or producers, where only the private ownership of the means of production prevented humanity from producing for need rather than for the profit of the capitalist, This modus operandi means t hat late capitalism has actually robbed us of the purpose of humanity as a species. However, Lasch identified that because production of many of the goods enjoyed by western society are now produced overseas, people conceive of themselves far more as consumers rather than as producers. By taking away our capacity to produce the goods that we consume, capitalism has removed the essence of human life for Marx and left us with nothing but an ache to constantly and remorselessly consume. This only leaves us with a distinct sense of dissatisfaction and a fear of not leaving any worthy evidence of our existence (Lasch). The fear of ‘no exist’ as Lasch puts it, is a deep void that the narcissist constantly and unsuccessfully tries to fill. This fear inspired by a narcissistic culture has similarities with Ulrich Beck’s theory of modernity. Beck argues that we live in society where risk is prevalent. Most of these risks are manmade and a result of technological development, and the environmental

Microeconomics Fixed Costs and Variable Costs

Question: Discuss about theMicroeconomicsfor Fixed Costs and Variable Costs. Answer: Introduction A firm that operates in the short run has to incur two form of costs. The costs can be stated as fixed costs and variable costs. The fixed costs are costs that are incurred at the start of the production process, which does not change with the change in output (Baumol and Blinder 2015). Along with these two costs, firms incur marginal costs in their production process. Marginal costs are changes in the total cost with respect to change in output of a company. In this context, it could be stated that there are two types of firms, one with high fixed costs in the short run and the other with high marginal costs. Airlines industry can be associated with firm that have high fixed costs in the short run. This industry needs expensive piece of equipments that must be incurred at the start of the business. These equipments are one of a kind that needs strong financial aids to be apprehend in the form of fixed costs. It does not matter whether the business provides profits or loss. Oil extracting industry is the ones with high marginal costs. This industry incurs additional extra costs on an extra barrel of crude oil being extracted (Rader 2014). This thereby raises the total cost of the industry, leading to higher marginal costs. The following analysis shows how different industry faces different forms of costs structures. One industry incurs high costs at the start of the production process, whereas, the other incurs the cost in an additional manner as the production process proceeds. References Baumol, W.J. and Blinder, A.S., 2015.Microeconomics: Principles and policy. Cengage Learning. Rader, T., 2014.Theory of microeconomics. Academic Press.

Winding Up Of Australia Based Companies â€Myassignmenthelp.Com

Question: Discuss About The Winding Up Of Australia Based Companies? Answer: Introducation The company is required to perform in the market in such a manner that the stakeholders can have a view that the company is going concern and will continue for future years. But there have been the cases where the companies have ended up with either liquidation or winding up or for receivership and etc. In order to start the report, three companies have been selected and all are based in Australia and listed in Australia Stock Exchange. First company is HIH Insurance, second company is One Tel Phone and the third company is ABC Learning. In the report, the reasons for the liquidation of the aforesaid companies and the financial stress that these companies have come across over the years have been discussed along with the financial liabilities. Reasons For Winding Up Of The Company The company is in the insurance sector. The major event that has brought the company to liquidation is the areas in which the company has entered. With the acquisition of the FAI Insurance company, the company has entered into the main risky business and lead to the major damages. Other reason is the area of film financing in which the company has stepped its shoes with the indication that the profit will come instead loss has been generated (OBrien,2008; Mak, Deo and Cooper, 2005 and Mirshekary, Yaftian, and Cross, 2005). The third reason is beginning of insuring for the damages suffered due to any kind of natural disasters which has resulted in loss which is suffered from the typhoon held at Florida. SECOND COMPANY ONE TEL PHONE The most important reason for the winding up of the company is the irresponsibleness of the management of the company on the part of finance function. The company has been in the practice of accounting of the high income in the current reporting period and accounting the related expense in the future year (Reza, 2011). By following the said practice the companys reported net income is higher in the nearer years and is lesser in the future years. The second reason that has been noticed from the annual report of the company is that the company is in the urge of paying higher remuneration to the key managerial personnel despite of the fact that the company is running in losses on quarterly basis. The third reason that has been observed is the incorrect business practice as the company is selling the products on installment basis of seven months whereas the company is purchasing the product on immediate basis. This shows that the companys liquid position has already entered into worst situation.. Third Company Abc Learning The first reason that has been observed is the incorrect treatment of Licenses and the like intangibles. The company has followed the revaluation model on yearly basis and thus accelerating the profit on yearly basis on the corresponding to that has been charging the lesser impairment without any proper base. The second reason is of the incorrect estimation of the future cash flows through which the revaluation model has been adapted. In this, the company has used the higher cash flows for the purpose of the valuation and thus leads to overstatement of the profits at the end of the year. The third reason is the degree of the quality of service that the company is providing to the children at their centre. There has been the claims filed by the parents for no taking care of their children in the diligent manner and also Government of South Wales has formed the same opinion. Ethics And Govenrance First Company - Hih Insurance The violation of the ethics has been started with the acquisition of the FAI Insurance company which has been so acquired at the premium. The acquisition has been made without the approval of the board of directors of the company and also without having the proper valuation of the business of FAI Insurance company as to whether it will be feasible and viable for the company to enter into such business or not. The said ethics is referred to as the Business Ethics. The second violation that has been is the non identification of the risk that the company has encountered with the acquisition of FAI Insurance and other risky areas like marine, film financing and natural disasters which had led the company into losses. This has been the violation of ethics in compliance ((Lipton, 2013; Cheng and Seeger, 2012). The violation of the corporate governance practices has been seen when the Chief Executive Officer of the company has started the embezzlement of funds by having the accounting transactions with the friends and relatives and involving them on the board of the company. In case any violation has come, the same has been easily sorted out as all the members will only work on the indications of the chief executive officer of the company. The second violation which has been observed is that the statutory registers as prescribed by the Corporations Act, 2001 does not any mention of the offices opened at United States and United Kingdom which in future has resulted huge losses to the company (UK Essays, 2013; Jiangbo, 2003). Second Company One Tel Phone The first violation of ethics has been done by following the incorrect method of accounting as deferring expenses in future years and accounting for higher revenue in current year. The second violation is related to the incorrect pricing strategy followed which results the company to recover their costs in future seven months. In this the company has bifurcated its sale price in seven installments and Due to this violation the auditors have neglected to authenticate the financial statements and which has shown that the company has the very poor corporate governance practices.(Avison, 2012; Brown and Caylor, 2009). Third Company - Abc Learning The first violation that the company has made is sacrificing of the quality of service provided to the children at the cost of employee and labor employed at the centre. This violation has led the company image deteriorating over the year as the parents are now reluctant to send their children there. The second violation of the ethics is the unnecessary expansion without carrying out the due diligence of the proposed investment. These two are violation in ethics and compliance. The other violation is of the Corporate Governance Principles as the company has failed to form any of the committees as required by the ASX Governance Principles. Role Of Liabilities Liability has played the very essential role in the liquidation of the aforesaid companies. All the companies have obtained the huge liabilities running in thousands of million Australian dollars whether it is related to the more risky sector insurance or the least risky sector child care. All the companies have faced the liquidity problem in the last period before the liquidation and all have reported the huge losses significantly without any reliable forecasts. HIH Insurance has faced the liabilities due to film financing sector and the natural disaster sector insurance. One Tel Phone company faced the liabilities due to the huge losses and wrong estimation of the acquired licenses and the last company has faced the liabilities due to low quality child care services and unnecessary huge expansion despite of knowing the fact that the government has allowed both types of entities - profit making and nonprofit making for government subsidy financing. In this way the liabilities have occurred and have been one of the reasons of the liquidation. Recommendation As per the above analysis, the management of the company shall look after all the policies, procedures and working of the company and the company shall take each business decision in an effective and efficient manner keeping in view the totality of the business. Conclusion The corporate world has been strongly beaten by the liquidation of the major companies across the Globe. The companies include HIH Insurance, One Tel Phone Company, ABC Learning and most commonly known Lehman Brothers. In all the companies, the two major broad categories have been found under which the reasons for liquidation of the companies have reside. One is irregular accounting procedure and reporting and second one is the poor corporate governance practices. These have created the lessons for the other companies which are trying to enter into the particular industry. The study has been the exhaustive and the main conclusion that has been drawn from the study is that the company shall work properly and effectively so that the chance of any kind of failure either on the part of the company or on the part of the employees of the company does not arise. References Avison, D. (2012): IT Failure and the Collapse of One.Tel in Traunmuller, R. (ed.): Information Systems: The e-Business Challenge, Kluwer, pp 31-46. Brown, L. and Caylor, M., 2009, Corporate Governance and Firm Operating Performance, Review of Quantitative Finance and Accounting, 32, 2: 133-144. Cheng S and Seeger M, (2012), Lessons Learned from Organizational Crisis; Business Ethics and Corporate Communication, International Journal of Business Management, Vol. 7, No. 12, 74-86 Jiangbo X, (2003), HIH Insurance Limited: Corporate Governance and Corporate Excesses, available at https://www.seiofbluemountain.com/upload /product/201010/2010jjfzh05a8.pdf accessed on 11/09/2017. 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