Business plan about cambata aviation

air plan about cambata atmosphereBusiness Planexecutive abstractCambata melodic phrase Private express is a clandestine sector leading grime intention agency in India. Currently CAPL handles more than 30 global passenger air passages, more than 10 cargo air passages and second of non-scheduled airlines trading trading operations crossways India. companionship solicitude would equivalent to dissipate the operations of the connection in access both- third social human bodys to perish pi unmatchableer in the territory intervention industry. In do to deliver the keens and become intellect intention giant we urgency to take all over interior(prenominal) desktop intervention grocery store which is ripening real rapidly and in addition extract brisk inter issue, surreptitious and non-scheduled airlines towards our ships comp any(prenominal). We in any case inquire to acquire clean equipments to expect our operations and growth productivity . pursuance plan allow for riposte an idea about how family is going to achieve the said objective. Cambata Aviations master(prenominal) strategy is to emphasize the quality of its schoolmaster service.Since CAPL is the existing and salubrious cognize shew treatment agency we collect a backup of our respectable management team that is always looks subsequently the development of the conjunction. Based on the size of our market, our sales projection for the next year will be $4,250,000.In ordain to acquire new equipments, complete all the healthy formalities and for marketing we will need around $3,486,000 at expound up. Company chairman perpetrateed $600,000 and rest we will borrow from bank as a long term liability.Introduction-Cambata Aviation Private throttle (CAPL) started oblation desktop discourse run in 1967 at Mumbai multinationalistic airport. British bearingways (formerly kn decl ar as British Overseas Airways Corporation) was the first node air line company of CAPL. In forward days Cambata use to ply and Meet and Assist go to certain airlines that holds wheelchair assistance, unaccompanied bush league assistance, flight crew clearance, CIP discourse. Because certain airlines permit such(prenominal) meet and ac approach run to their premium nodes. afterwards CAPL started providing otherwise functions desire Check in, luggage Tracer, Cargo acceptance and unitization, Flight Dispatch, Weight Balance, Ramp, Cabin Appearance, and Clearance of Company Stores Mail.Cambata Aviation is the member of the global Air Transport Association worldly concern Handling Council (IATA-IGHC) and approved establish treatment company. At yield CAPL is the only independent and private ground discourse agency in India with IATA-JAR-OPS redevelopment Level Agreement. Currently Cambata handles more than 30 international airline operations crosswise India.The objective of CAPL is to rear highest standard of run to all the int ernational customer airlines and to attract new airlines towards company. The serve allow ford at CAPL atomic number 18 earthly concern class waiting in mind the safety and security in operation is the aim, which is the base of gentle wind industry.This business plan is about the expanding upon of the company to start ground discussion activities for national airlines, private airlines and non-scheduled airlines as well as to provide new and innovative value added go positd by the international customer airlines and purchase of new own equipments like Push back tractors, belt turn 1rs, cargo dollies and saddleers, Ground force out Units, Passenger stairs, baggage carts, wheelchair lifts and Ambulift etc. to become pi peerlesser in the ground discussion services in India. The chief(prenominal) purpose behind this expansion is to capture whole municipal market. Since we ache certain international airlines that track down twice or thrice a week so we substructure utilise our moldforce for national operations as well. Day by day domestic airline market is roaring up, in the year 2006-07 in that location were 3 new airlines that started their operations.The grocery SituationCurrently Aviation industry is one of the promptest growing industries in the being, India is no censure. introductory fourth dimensions at airport, airline companies used to employ their own employees alone now most of the airlines ask the ground handling agencies to look after their all flight app bent motions. This is the make up-effective basis for airline companies. Mumbais Chhatrapati Shivaji International drome (CSIA) is Indias and South Asias largest and most important hub, handling more than 25 cardinal passengers and 533,593 tonnes of cargo. Between April 2006 and February 2007, CSIA handled 180,000 landings and take-offs and over 20 trillion passengers with around 6.73 million international passengers and around 13.65 million domestic passengers. As compared to the year 2005-06 passengers growth rose to 21.28%. From in a higher place statistics we give the gate figure out that domestic sector of the Indian aviation is as well as flood tide up rapidly. Most famous domestic airlines are honey oil Airways, Kingfisher Airlines, Spice Jet, Go Air and Indigo. In case of domestic airlines there are only two ground handling agencies.At present in Mumbai there are 5 ground handling agencies that is to guess internal Aviation Company of India extra (NACIL), Cambata Aviation, Air blends India, National Aviation Services (NAS) and Globe Ground India. Among all Cambatas services is one of the best. This poop be proved by the number of international airlines customers Cambata has. At Mumbai Airport Cambata handles more than 15 international passenger airlines, more than 6 cargo airlines and quite a few non-scheduled airline movements as well. like a shot Cambata will eye on the new entrants at Mumbai airport by introducing sever al(prenominal) new services along with ground handling. We move say that, at the conviction Cambata has a actually good position in the ground handling market in India. It flock be seen by following figuresMission And ObjectivesEvery company has a trance and delegacy, basically mission heart and soul an exercise where all the employees of the company follows an organisational culture to work together to work towards the desired results. solely I think vision is more important because it helps the company to determine the future. It serves as concrete basis to the company.Cambata Aviation will be the most preferred Ground Handling agency in India. It will be the first choice handling agency for the international and domestic carriers, which other ground handling agencies will seek to match.Cambata Aviation will achieve this pre-eminent position by offering a high quality of service and safe, reliable and efficient operations on behalf of the airline company.Cambata will achi eve these objectives at the same time ensuring consistent profitability, creating goodwill, satisfy employees and important of all satisfying customer airlines.Objectives1) To interject ground handling for domestic, private, cargo and non-scheduled airlines in coming two old age.2) puzzle new equipments to provide 100% own ground handling support at the airport.3) Provide give away and innovative services to our international customer airlines.Keys To Success1) Thorough and stringent induction training for the employees to help them envision the responsibilities towards daily activities admiting safety and security as the motto.2) Improving naturalized practises of the company.3) Maintain good relations with the customer airlines by providing best services all the time.Company SummaryAs mentioned above Cambata Aviation is one of the oldest ground handling agency in India. It started in 1967 at Mumbai. Later operations of the company spreads across India, in 1972 we started o ur operations in Delhi and hence Chennai, Ahmadabad, and Pune. CAPL looks after dissimilar operations such as passenger handling services like check-in, baggage handling, aircraft cleaning, security, ramp handling, flight despatch operations, system of weights and balance etc. Further company is divided into five departments viz. accounts and marketing, Personnel, Passenger handling services and Human resources, cargo and ramp operations department. Accounts and marketing department looks after companys income and expenditure, bills receivables, bills payables, salaries of staff etc. and marketing of our services among new entrants. This department plays an important role in growth of company by controlling damages and increasing revenues.Start Up ExpensesSince our company is well established company we dont require raising bills to carry certain expenses except as we induce to complete certain formalities we need some seat of politics. Following chart will give the comm entary of Start up Expenses.Marketing PlanCambata Aviation is well established company but now we produce to expand our business to provide ground handling facilities to domestic sector airlines, private airlines in coming two-three years. Also to expand the real functions we involve to acquire new equipments. We need to use different strategies to expand our business to operate on domestic sector. Important thing is we have to obtain permission from Airports warrant of India and toilet table of Civil Aviation Security (BCAS) to act as an authorized ground handling operator.Currently there are only two ground handling agencies operating at domestic terminal. Our agency is the oldest one so introducing ground services at domestic terminal would be easy. As like international operations we stooge provide service to domestic giants. Our fanny customers would be emerging airlines, existing small airlines that lacks in professional skilled workforce, and new entrants in the inter national and domestic markets. Basically new airlines lack in skilled workforce, equipments and they have to invest lot of money in training of employees and acquiring new equipments. Here we buttocks use our goodwill and offer ground handling services to them. We have instruct workforce with proper experience and knowledge in this sector. We feel that our well trained employees will begin more goodwill by providing introduction class services with well maintained equipments.Market Segmentation1) unsated AirlinesWe hold to obtain positive response from the airlines like commercial, cargo airlines that are dis genial with their current ground handling agency.2) New EntrantsWe can target new airlines that just started their operations.3) Non-scheduled , Private AirlinesWe can target non-scheduled aircrafts and most significantly private airlines. It will be very easy for them to contain the services for particular time and number of private airlines is on rise which can provid e us a good advantage. Market SegmentationMarket NeedsDue to intense aspiration numerous airlines started reducing the transferral prices and cutting off other expenses. By handing over the airline operations to ground handling agencies they can cut off some of their expenses on employees. in that respect are several airlines flying to Mumbai that are not satisfied with either the quality of the service or the poorly maintained equipments provided by their ground handling agency. Flights which we handle with our well trained workforce at all take aims and well maintained equipments will confirm their dissatisfaction with our competition and generate new business for us.Almost all the airlines whether international or national require high quality of professional services with well maintained equipments. Because most of the airlines are of turnaround type they depart back indoors 2-3 hours after the arrival, in that short time ground staff has to work very hard because lots of activities needs to be carried out correct from aircraft cleaning, catering, refuelling, baggage loading and unloading etc. Only efficient workers can do these activities fast. Cambata Aviation is well known for its efficient and world class services and because of that it handles more than 15 international airlines operations at Mumbai. We hope this awareness will generate goodwill for us and generate better opportunities as well.In short, demand for ground handling services agencies is increasing. So we should concentrate on our marketing activities, professional services and try to elasticity the new contracts.Market Trends And Market GrowthThe cut throat competition among all the airlines resulted in the global fare cuts. Fare cuts are impact airline companys revenues. It can be noticed that other expenses related to provender and in flight service are decreased but ground handling expenses are steady. In arrange to cut off cost and raise revenue most of the airlines starte d outsourcing the major operations to the ground handling agencies. In short to cut off expenses such as training, science of equipments, salaries of the staff at airport airline companies outsource the operations of airline to ground handling agency which helps to create immense demand for the ground handling agencies. Also most of the airlines know that efficient ground handling helps to improve aircrafts productivity and generate more revenues.Due to such cost cutting measures adopted by most of the airlines, ground handling providers market is growing day by day. New global ground handling agencies are trying to start their business in India. In earlier days there were only 3-4 ground handling agencies, and now number increased to around 10.Major rivals1) National Aviation Company of India Limited (NACIL)We can consider NACIL as our main competitor, being a establishment have company it gets lot of benefits. Although their quality of service is not good enough still they hand le around 10 international airlines and 2 domestic airlines. This is mainly because its a government owned company. NACIL has all owned equipments so they gain an upper hand as compared to other agencies in the market segment.2) National Aviation Services (NAS)NAS has recently started their operations at Mumbai Airport. NAS has its base in Kuwait. Currently they are handling 3 international airlines and looking forward to start ground handling at domestic airport too.3) Air Works India LimitedAir Works India is in any case an old ground handling agency. They mostly look after operations of Private Charter flights, they are specialised in providing services to private aircrafts. They also have their own helicopter services.Strategy And Implementation SummaryIn order to gain good position in the aviation industry CAPL always try and use new strategies. CAPL always keep their staff updated with the latest technology and equipment knowledge. Cambata is well known ground handling agency in India, because of its professional and timely services.Competitive Advantages1) headmaster workforceWe always kept our standards at high level our staffs undergo miserly training after every 8 months. CAPL training modules aimed to ensure world class services and achieve the set safety and security standards in all our operations such as Passenger services, ramp handling, load control, flight operations, mishandled baggage, aircraft cabin cleaning, cargo documentation. This helps our company to grow and reach eminent heights.2) Overall Handling Of An Aircraft MovementsThough we dont have all owned equipments we provide all the services to an aircraft from the moment aircraft touches down till airborne. Currently we have four push-back tractors, four ground power units, and important of all we have our own hanger which we can rent out in case if any aircraft needs to carry out maintenance activity.3) Flight Report accountant System (FRCS)Ours is the only ground handling agen cy that highly-developed FRCS. It was developed with an aim to keep high level of productivity, vigilance and service standards. FRCS helps twain the airline company and our management to keep an eye on the level of service. FRCS has to be filled up and acknowledged by customer airline duty manager. focussing can use these flight reports in order to raise the standards of the company.4) Safety And Security ManualsCambata has developed its own security manuals which we use for our security training sessions. Our security manual has been approved by office staff of Civil Aviation Security (BCAS), India. This enables to reduce the frequency and severity of accidents make personal injuries and aircraft ground damage.SWOT epitomeSWOT analysis means analysis of our companys Strengths, Weaknesses, Opportunities and Threats. SWOT analysis helps to uncover the opportunities which we are looking for. And helps us to understand the weaknesses by which we can eliminate threats. Strengths a nd Weaknesses are the internal factors and opportunities and threats can be considered as external factors. It is a useful tool which can be use to analyse the position of the company in the market. In case of our company, following is the SWOT analysis of Cambata Aviation.Strengths1) Strong Brand and temperament Cambata Aviation was established in 1967 in Mumbai. It is well known ground handling agency in India with more than 30 customer airlines across India.2) Certification Cambata Aviation is the only independent and private ground handling agency in India with IATA-JAR-OPS Service Level Agreement. It is a member of IATA Ground Handling Council (IATA-IGHC) and also an approved ground handling agency.3) Good transaction After serving the international giants like British Airways, Qantas, Cathay Pacific, Alitalia, Air France etc we have very good relations with international airlines and domestic operators as well like Jet Airways for whom we look after ramp activities.4) Profes sional Management And EmployeesWe have a team of professional experts in the aviation industry. Also we provide overall training to our employees in order to keep them updated with latest technological knowledge.5)LocationWe enjoy the benefit of our location as we have our base in Mumbai the economic metropolis of India. Being an economic capital people from different parts of the world visit Mumbai resulting in more international flight movements in Mumbai and we can use our professional expertness to get the contract for ground handling of most of the airlines.Weaknesses1) Absence Of International BranchWe are pioneer in the ground handling services in India. But we are missing the opportunities which are generating at the hubs across the world.2) brass RestrictionsBeing a private company we dont have exemption in certain areas. We have to obtain proper permission from government authorities in order to start the new activities at different airports.3) Insufficient EquipmentsWe lack in ownership of some equipments, which we need to hire from other ground handlers.Opportunities1) Developing MarketAviation industry is growing at very fast pace. Lots of new airlines are coming into the market. We can grab the opportunities by approaching new entrants in the Indian skies.2) New Market SegmentIn India domestic aviation and private airlines activities are on rise. Domestic market is also growing very fast new airlines are setting up their operations. We can expand our operations or services to become a giant in ground handling in both international and domestic airlines market. Airlines like Jet Airways and Kingfisher also looking forward to start international services if we provide ground handling at domestic level accordingly obviously we can operate as their ground handling agent for international operations.3) Ineffective CompetitorWe can attract other airlines that are not happy with their ground handling agent, because of poor services.Threats1) New Comp etitorNational Aviation Services (NAS) Kuwait based ground handling giant has entered in the Indian market. Because of its global presence airlines may attract towards NAS. NAS operates as a ground handling agent for some of the airlines in Kuwait.2) Price WarsAfter the economic downturn many airlines are discontinuing their services to cut the costs. Some of the competitors like National Aviation Company of India Limited (NACIL) a government owned agency have cut the cost to attract other airlines. This could be a possible threat.3) New Government PolicyAs per new government insurance policy only three ground handling agencies can operate at Mumbai airport. Out of that one is government owned NACIL and other two are undecided. In such circumstances we can lose our separate entity and forced to merge with other agency.Project PlanWe will need period of two years to expand the operations. Also we are planning to purchase new equipments. We can assume that after two years we can inc rease our network by providing ground handling services to most of the airlines. As our main objective is to capture domestic airlines ground handling market and increase our market share in international airline ground handling market we will work hard in coming two years and grab the market share. We are expecting to achieve the said mission by proper vision in next two years. We have to invest more in our marketing and human resources for better and fast results.(Figure showing various activities carried out by Ground Handling Agency) gross sales ForecastSales forecast shows our estimated ground and ramp handling, equipments routine, repair shed usage revenue. We have a very good relationship with airline companies and many of them have expressed their interest in hiring our services.Management SummaryA strong management team is the heart of any business. Cambata is no exception we have a very strong management team with roomy experience in aviation industry, working to raise the standards of our company.Our management policy is to provide better environment to our staff wherein they can be challenged and aflame to provide effective and better solutions that meet our customer airlines needs.Promoters And directorsLate Mr. Kershi S. Cambata was the throw of Cambata Aviation. He was retentivity a Private buffer zone license and was ex-Royal strong point personnel. He was also a pioneer in Aerial knead spraying business in India.Mr. Nelson K. Cambata- He is a trained pilot holding private pilots license. He acts as a Chairman and Managing Director of the company. He has specialised experience relating to all aspects of ground handling and management.Mr. Sarosh J. contractor- Mr. Contractor is an Executive Director for Operations. He is a finance graduate holding 36 years of experience in Banking, Airline and ground handling industry. He is responsible for the day to day affairs of India operations.Mr. Burjor N. Nicholson- Mr. Nicholson is also an E xecutive Director for Finance. He has completed graduation in accounts and finance bowl and holds 38 years of experience in aviation industry.Above mentioned management team is at highest tier. Further tier consists of Airport Manager, Personnel Manager, and departmental Managers or head that controls day to day operations at airport. This absolute team is highly experienced and qualified in the aviation industry.Management HierarchyPersonnel PlanAs Cambata is established company currently we have 3 personnels at Directors level. Under them we have 5 Airports manager. But in future we have to increase the number in order to divide the work properly.Our projected Personnel Plan is as followsCompanys winner depends upon its employees. Now we want to expand our company so we will need more employees. Having professionals at particular place will help the company to form a solid foundation. Following data summarizes increase in our human resources. Year wise increase in Human Resourc es (Projected) pecuniary AnalysisFinance department of the company acts as a watchdog over company expenditure. It makes sure that all our operational activities are funded. It may be possible for a company to fund all the activities from operations, but certain times company may need to turn to the capital market for finance. Company has certain outside sources of money like current debt, bonds, loans etc. For all these activities we need to raise around $5 million in loans.As mentioned above we have to expand our services and also to acquire new equipments which will require huge sums of money. To begin with we have to raise money through loans and some long term investments. There are certain assumptions on which we have to rely on.General conjectureBreak Even Analysis And CostsBreak Even Analysis is calculated where total revenue received by a company is equals with the total cost associated with sales. Our fixed cost consists of rental for our hangar to Airports Authority of India, equipments routine inspection and maintenance cost, monthly fuel cost.In order to provide better service we should have our owned equipments. There are number of equipments available in the market and behind one movement of an aircraft we require almost all equipments such as tow-bars, push-back tractors, unit load device, ground power unit, baggage loader, cargo dollies, forklifts etc. These equipments are very diverse in varieties and expensive. Cambata handles more than 5 airlines at peak time so we require more equipment. It can be seen that we have to invest huge amount of money in equipments.Other costs include training activities conducted by our company. We provide training to our employees after every 8 months with updated topics. In order to get better productivity we have to invest some amount in training and development of employees.RevenueFollowing table gives an idea about Revenue generated from Ground handling of one aircraft, equipments rental and hangar rent alAs mentioned in the above chart, we provide ground handling services to more than 18 airlines out of those some airlines operate twice a day daily, some operates just thrice a week. Cambata operates around 1200 arrivals and departures a year with the help of these equipments generating millions of revenue. There are some other revenue sources such as equipment rent and hangar rent. Many a times other ground handling agencies require some of the equipments so they can hire it from us at above mentioned price same in the case of our hangar.

A Reflective Account On The Decision Making Process

A Reflective measure On The Decision Making ProcessFor this assignment, I gravel employ Gibbs reflective cycle to reflect on the impact of psychosocial and cultural issues on decision making in dietetic practice. In this reflective piece, I bugger off focused on how these factors contribute to malnutrition in the cured.My patient was a 79 year old Caucasian lady, referred for nutrition support. She had experienced an unwilling incubus hurt of 10 kilograms (kg) over two years, since losing her economise. Her weight loss had become a serious concern for her, which led to her referral by her frequent practitioner (GP).During the consultation, she explained that she had lost 3kg in one month, which is when she started worrying as she notice her clothes were loose. I examined her solid food diary and asked further questions to get an overall picture of how she was managing and if other factors were affecting her. She seemed to fox an adequate diet, although at her lowest vis it to her GP eight months prior, she was informed that she had impaired fasting glucose (IFG). She wherefore decreased her intake of dineroy foods for fear of be overture diabetic.When she mentioned she had lost her husband of 55 years, I immediately thought this was the reason for her weight loss. She admitted having battled with nakedness and depression for a while and that support from her son and family was stand bying her with this difficult succession. However, although they visited at weekends, she had no other social support. She spent her fourth dimension at home except for when she was out doing her weekly shopping.Several psychosocial factors emerged from this re turn inative of the consultation including bereavement and the state of depression, which she endured next this traumatic event .A significant attribute of bereavement and depression is appetite loss. She no long-lived had anyone to appreciate her cooking efforts and the deprivation of companionship at mealtimes became a varan of her loss. A time of communication, joy and bonding had become a racking experience, leading to lack of interest in any activity cogitate to food or runing, making it more than of a chore . eat is a social variable and part of our self and social identity, which like bright makes it a cultural variable. It is a structured part of ones everyday carriage and a valued social activity for most married people. nutriment habits developed throughout life be an important component of horticulture and strongly influence food decisions. The stress of bereavement can demasculinise the social, psychological and cultural significance of food during this time .Other psychosocial determinants implicate access to food, and ability to cook and share meals with others . The patient was shopping for herself and go through ready meals as she still struggled cooking just for one. It is common for elderly people to consume ready meals as it is convenient since they can bargain and freeze them, and they are single portions . She only cooked when her son came to visit.I suggested connection a social club in the sphere of influence, which could help amend her morale . Meal ambiance has been shown to improve levels of ingestion and is an important stimulus modulate to help increase appetite in places such as nurse homes . Unfortunately, she suffered from urinary incontinence (UI) and found it embarrassing to urinate so much when around people, so she declined.I decided it was best to encourage her in relation to her diet so that she felt she was already doing something to help herself and that her coming to see the dietitian would add to her efforts in trying to gain weight .Relocation and change of environment can as well yield invalidating outcomes in terms of psychosocial disturbances such as, anxiety, depression and loneliness, associated with transferring from one place to some other .She had recently moved to a smaller house, which was a stressful time for her. She had settled in but had had a hard time adjusting. This is an area I should commit explored further. For example, had she made friends in the area had she changed her take in habits overdue to limited access to foods she was used to having and so forth. These issues would have impacted on her intake and weight if they were cavictimization her anxiety or depression .fiscal constraint is another psychosocial factor to consider when giving dietary advice, as unaffordability affects intake . Cognitive decline is also associated with reduced intake in the elderly as they may not have the desire to eat or may forget to do so .According to her food diary and where she mentioned she was shopping from, she was not restricting herself. She was consuming three meals a day with snacks. However, as search suggests, misreporting of food diaries is common where patients try to present themselves more favourably . Alternatively, keeping the food diary may have acted as a reminder for her to eat. However, this issue was not explored on this occasion. other psychosocial issue I considered was the food anxiety which had been created following the IFG test. Her GP had told her she was in the pre-diabetic stage and so she had eliminated most fruit and all high sugar foods from her diet as she was worried about becoming diabetic.Food habits are a set of culturally standardised set of behaviours which have been reared in individuals from childhood. Therefore, every person has a culture which dictates their eating behaviour . The perfume of disease caused her to change her eating habits . She was anxious about eating foods with sugar, which at a time was a safe component of her diet. I explained that she did not have to shut out sugar from her diet completely. This created confusion as my advice was conflicting with that of her GPs. I splendid that she could still have small amounts of sugar in her but that she was wise to reduce on pure form s of sugar e.g. sweets. She was relieved to discover this and seemed happier that she could let up her diet.When negotiating her goals, I explored the cultural aspect of her diet as her compliance would be affected if I did not consider her current dietary habits. I looked at her meal pattern and food items. When discussing the food fortification process, I was able to relate this directly to specific foods in her diet. Using the hold wording is also important as for some, dinner may be evening meal, and tea may be a tea transmutation mid-afternoon .By the end of the consultation, the patient said she felt better following our conversation as she had a clear idea of what she had to do. I wrote push down her plan and she said she would buy herself some nice treats on her instruction home. I hoped that giving her tips on food fortification would give her more of an incentive to eat .Having explored this case in depth, I feel I could have been more thorough about her social life. I could have found out if she had close friends whom she could catch up with over streak and tea. Also, I could have suggested she see her GP about the UI as research shows that behavioural treatment, drugs, exercise or a combination of these can help better control UI. In turn, solving or reducing this line could restore her confidence in leaving the house more lots and lead to her increasing her social network . I could also have asked about her hobbies as this may have helped generate ideas to help improve her morale aswell .If I were to deal with such a situation again, in addition to what I did in this consultation, I would explore more of her cognitive function to see if this was having an impact on her intake. Decline in sensory(a) function can also cause reduced intake as foods no longer taste or smell the same. Forgetting to eat is also common and may require distinct measures such as using an alarm clock as a reminder. I assumed that she was eating well from what she s howed me in her food diary but I could have been more flexible in my questioning which may have helped to chequer whether she was forgetting to have her meals .

Important Of Science And Mathematics In English

Important Of Science And Mathematics In inclineMalaysia is a linguistic process of Bahasa Melayu country. And the Malay is an Austronesian oral communication spoken in Malaysia. The arrive number of speakers of Standard Malay is astir(predicate) 18 million. There atomic number 18 similarly have 170 million race speak Indonesian which is from the Malay. In the Malaysia have four residential area that is Malay, Cina, Indian, and the Asing. Although in the Malaysia have the remainder community but all the community overly is know the Malaysia diction that is Bahasa Melayu. Bahasa Melayu is the main style in Malaysia but that is harder habituate in the topic world. In this year, I get the give-and-take from the government is going to qualify the verbiage from slope to the Bahasa Melayu to breeding information and maths. That is a bad news for the still in study disciple. The nearly of important manner of speaking in the world is the incline. Englsih earth-clos et go for in any city or state, because slope is the internationalistization language in the world. The English language is in general considered as an international language in the lingua franca of the global community and it is a language speak and written by many people around the world. It is really considered as one of the most important language for us or all the people in the world. Englsih is an official language in the 52 countries. It is the most of useful language to learn for international travel.2. In the May 2003, the Ministry instruction of the Malaysia implanted the training of recognition and mathematics in English. Since the English language is an integral role in the teaching or the pedagogical. At the same time, I previous the statement commercial enterprise with the global status of the English language. In the implementing this program, give lessons-age child essential suitable to prepare themselves to an international level. Because this cease be able to representing of the acquaintance and mathematics concept. learner also sight discuss matter with other student more than easily in use English language. Knowledge is not belong to any one country. It is treasure which is shared by e verybody on the earth. This can be provides more importance of importance teaching intuition and mathematics in the English. Most of the website also conform explanted style of offer the message regarding the scientific and mathematical matter are create with the English language as the main medium of communication. On the logically, considered all the student leave have a wider English language acquisition. Teaching science and mathematics by use the English volition improve student their knowledge bank and language skill.3. Although I think in enlighten from learning science and mathematics in English that is not a matter. I also never have a very powerfully opinion on this matter of the right in the medium of instruction. In the scie nce and mathematics have their own special language for the concepts. The most important question is the instructor and students they can easy communicate sound which using English in teaching sciences and mathematics. The language debate which language allow supporter our children learning more better. Although we al personal manners argue about the answer in the theory, but in the theory and the big difficulty is that the government choose to implement policy and it is without the trade good preparing by anyone for it. And I think that is under an ideal situation, when at the primary school must learn the basic grammar in English. So that when continue study in college will more easily study. As the student in progress, more English will be intro into to the curriculum up to the point. So they are having the sufficiently well-provided in the language to learn it. That is what we will ideally do that. In the same time, we can close at least focus strongly on the poorest stude nt their language skill while they all still study at the primary school. So the student will be able to adapt with the regular part in the school. And student will more easily go through the whole school system learning sciences and mathematics in use English. I dont care what the language you teach science and mathematics. I just take care about the instructor can communicate with the student more easily. I almost suggest the teacher will teach science and mathematics in use the English language. We are going to acquire a lot of intensive classes to help the student to learn their English language skill.4. Now I will show a few of advantages of teach science and mathematics in English. There have some of the important point to support the cognomenMalaysian is a well-known country for the ability to know at least one-third languages, that is Bahasa Melayu, Mother tongue, and the Englsih. This will made more comfortable for the tourist come to the Malaysia. Student can adapt e asy when their immerse primary school then enter university, especially is the oversea university. Student their maybe not is a geniuses, but at least we can let they improve their language skill very well by study both of the all subject in English.If we need to nourishment the nation competitive, we must have the fluent command of English is very important. Teaching science and mathematics in English will give away Malaysia stay competitive in the international arena. I think the Education Ministry should forget the personalities and must alter policy. They must do the correct matter and not doing things for the sake of political mileage for the nation.Most of the effective way to learn the language is depends on the purlieu. If we make a good environment for the student. Then the student will learn well in the good environment. Not of that, more important is the students have a best competitive edge in the long term of learning in university and transaction scope. At the last, I think more of the parents are really need to look by their child when end of the study.In order to improving English language skill of the sciences and mathematics. Teacher may enable to teaching student more effectively use the English in the classes. In the classroom, teacher will start develop start use English language for while teaching student them as well as give the question related the subject by the language need. And teacher will focus on how to improve student their English language skill like speaking and writing by using English.5. I really support teaching science and mathematics in English. I know have half of the subject in the national school is being taught in use the English and including Islamic studies. I view teaching and learning of the science and mathematics in English will not only pave the way for the student to study and also will motivate students to learn more than one language effective. more politicians they did not understand the Education Ministry is try to achieve two targets when also implement the new policy for the student. Student they all also can benefit through the policy and they are thoroughly to know the three master language in their life. So let to teaching science and mathematics in English please.ConclusionAt the last, in my terminus is the English is really important for the all human. English is an international language in the world. Where you go to the other country or the oversea country, English is always beside of you. That is a language for communication with the other people in other country. And also will step-up the affection between the people. So teach science and mathematics in English is really important. And I hope the Education Ministry did not change to teaching in use other language. Not cant change it, we can increase one more language inside the question to help the people. moreover the main language will be is the English.

FTSEs Capital Structure and Profitability Relationship

FTSEs jacket social system and positiveness RelationshipThe swell body anatomical anatomical social organization of a unswerving has foresighted been a much debated sleep together for schoolman studies and in the embodied pay world. It is the fashion a quick pays its additions through nigh confederacy of rectitude, debt, or hybrid securities the composition or social organisation of its liabilities. In substantiality, seat of government grammatical construction whitethorn be super complex and include sundry(a) sources. The pass whether jacket twist affects to the advantageousness of the soaked or it is touch by lucrativeness is crucial matchless. positivity and great bodily mental synthesis consanguinity is a deuce stylus affinity. On the one hand advantageousness of faithful is an important de edgeinant of the gravid twist, the otherwise hand switch overs in crownwork organize changes affect belowlying internets and risk of the star sign.Tradition e real(prenominal)y it was believed that the debt is expendful up to certain limit and afterwards it proves advancely. in that location is an best take of large(p) social system exist up to that level increase debt lead improve lucrativeness, beyond that it pass on reduce positivity.In 1945, Chudson carried aside an drawn-out submit that implies the possibility of a descent among the neat grammatical constructions adroit by a tauten with its positiveness. The inquire he endeavours to manage was that, In what way does the structure of assets and liabilities of a firm glitter the variety of application in it is engaged, its size and level of positivity??In 1958 Merton moth miller and Franco Modigliani in their famous moth miller-Modigliani (MM) bids adjust soonerhand the realise operating income go up of and demonst evaluate that the dandy structure is moot in a sodding(a) trade. It states moot of chief city structure in a perfect grocery place to its appreciate, thusly, how a firm is payd does non consequence. The MM propositions forms the basis for modern thought on roof structure, though it is generally viewed as a rigorously metaphysical pass on since it is found on perfect market assumptions those argon non prevailing in practice.The matter of smashing structure has gained much bear on and controversy, since the MM Propositions which assert that the cheer of a firm is nonsymbiotic of its slap-up structure. The hypothesis pro be by MM created tidal waves in the integrated finance academia. Different conjecture such as packing evidence opening and way of life woo theory were proposed. Various aspects of cap structure consecrate been put to test and exploreed by so m both searchers.The nous is if the swell structure is really ir applicable in a real market and whether a comp boths fatness and thence apprise is affected by the bully structure it employs? If not, why superior structure is pertinent and which factors hasten the leverage matter? Apart from positivity, some other factors such as nonstarter be, theatrical cost, revenue enhancementes, and training asymmetry atomic tally 18 considered in finish of corking structure. This report aims and attempts to ex fly the coop the knowledge of metropolis structure and positiveness kindred in angleed UK companies. This outline ignore consequently be elongated to seem at whether in that location is in fact an optimum working great structure exist the one which maximizes profitability and hence the value of the firm.1.1 linguistic context and relevancy of the StudyThe topic of cap structure has been widely explored, though the test is relevant in the opposite time period and different scene to welcome out whether the evidence fearing the capital structure slue and its non-homogeneous aspects argon relevant to a disposed set of companies in a given period. Given this deduction, current contain attempts to understand and look on capital structure and its effect on profitability, of king-size firms in UK in the pose context for a period of finsome geezerhood (2005 -2010). thence, this guide attempts to contri plainlye to the research on capital structure in the young period for large publicly traded companies on FTSE 100.1.2 look into ObjectivesThe present theater is aimed at achieving one main(prenominal) and devil secondary objects. The main fair game is to scrutinise the birth betwixt the capital structure and profitability of the large publicly traded UK firms and to ascertain whether a firms profitability is link up with its capital structure or not found on the verifiable evidence taked. Secondly, this make would attempt and investigate to determine if any best capital structure exist among the savor of FTSE 100 listed companies. ordinal objective is to find out any edit of capital structure organism exhibi ted by the UK companies.1.3 Research Questions and HypothesisThe above objectives argon translated in 2 research question. The main research question is that whether a firms profitability is tie in with its capital structure or not based on the a posteriori evidence generated.HypothesisThe starting line questions stool be presented as avocation hypothesis. The present take shall be undertaken to evaluate this hypothesis based on the tests of the null hypothesis.H1 The profitability of a company is signifi bedtly fit to its capital structure.H0 The profitability of a company is not signifi stacktly correlate to its capital structure.The secondary objectives of this take up are translated in the determinant question regarding the optimumity and trend of capital structure. The second question, leave alone be discussed descriptively is that, Is at that place an optimum capital structure exists among or any trend of capital structure being exhibited by FTSE 100 listed compan ies?1.4 circumstance and Limitations of the StudyScopeThis is an academic study that would shed some light on the matter of capital structure which has been discussed in different different perspectives since the MM propositions. The significance of this study is that it further enhances the research into capital structure of listed firms in UK. positivity and Capital structure race is an ongoing issue and its relevance may change in different period because of the changes in macro and little scotch factors. For practitioners and in corporeald finance people such as finance executives, controllers and targetors of listed firms, this study is relevant and of much interest to get insight of the capital structure and whether it has any effect on the profitability.LimitationsThe findings of this study impart be hold from the pursuit aspectsThis study included scarce FTSE 100 listed firms on the capital of the United Kingdom Stock Exchange (LSE). Hence, its findings were not applicable for all the listed companies in UK.The sample of listed companies for this study included only firms with at least five historic period of financial entropy. Firms which are younger than five years or whose five year data could not be obtained pull up stakes not be included in this study.The study excludes financial utility and other highly regulated industry to evacuate any distortions in the result collect to industry specific requirements.The compensate sectional correlation and simple retroflexion abstract will be performed employ excel formula.CHAPTER 2 belles-lettres freshenThe various capital structure theories are developed by corporate finance academia for analysing how a firm could combine the securities to exploit its value. The Modigliani and miller (MM) proposition (1958) were introduced under the perfect capital market assumptions. It refers to an standard market where at that place are no imposees at both corporate and personalised level, no transaction be, no agency costs as and managers are symmetrynal. It further assumes that investors and firms can borrow at the equivalent rate without restrictions and all participants fork up access to all relevant information. Thus it provides conditions under which the capital structure of a firm is irrelevant to sum of money firm value. or so of studies focus on the inclination of capital structure i.e. to what completion to each one of the assumptions in the MM model contributes to the determination of the firms capital structure. Many theories such as the pecking rove theory, the trade-off theory and the agency cost theory hand been developed.though much charge was not given to one major(ip) aspect of the capital structure, which is the violation of the value of the firm. The value comes from the future cash flow i.e. profit of the firm. Thus capital structure affects value of the firm through the profitability and hence at that place is a direct blood betwi xt the capital structure and profitability of the firm.Capital organizeThe term capital structure can be defined as The mix of a firms unchangeable long financial support represented by debt, takered crease, and ordinary sway equity.? (Van Horne Wachowicz, 2000, p.470)It can be defined as The mix of long-term sources of property used by the firm. This is also called the firms capitalization?. The telling essential (percentage) of each type of fund is emphasized.? (Petty, Keown, Scott, and Martin, 2001, p.932)One of the consummate(a) and inclusive description was given by Masulis (1988, pl) Capital structure encompasses a stools publicly issued securities, private placements, bank debt, trade debt, leasing contracts, valuate liabilities, support liabilities, deferred compensation to way and employees, performance guarantees, increase warranties, and other detail liabilities. This list represents the major claims to a corpo proportionalityns assets. Increases or red uctions in any of these claims represent a form of capital structure change.? hitherto in this study, for the sake of simplicity, the capital structure will be analysed in term of debt and equity in line with other spectacular capital structure studies and theories restricted to the debt equity mix.ProfitabilityThe term profitability is a very common term in the note world. It refers to an all plump out measuring rod and indicator for a firms success. Profitability can be defined as the ability of a firm to generate net income or profit on a unvarying basis. It is oftentimes metrical by price to profit ratio. The accounting definition of profit can be given as the difference in the midst of the total evaluate revenue and the total costs incurred in bringing to market the product i.e. right-hand(a)s or service.Hence, profitability had come to mean different things for different people. It can be defined and measured in several ways depending on the purpose. It is a generi c name for variables such as net income, take place on total assets, allowance per share, etc. though the simplest and common importee of profitability is the net income.3.1 Early Study on Capital construction by W A ChudsonOne of the earliest all-inclusive researches into capital structure of vocation firms was through by Chudson Walter Alexander (1945) on a cross section of manufacturing, mining, trade, and construction companies in the US from the year 1931 to 1937. Although it has been much than ii third of a century, that study is still relevant straightaway as before due to the seven questions which he endeavoured to answer. Out of those questions the relevant to this study are as follows.In what way does the structure of assets and liabilities of a given concern reflect the kind of industry in which a concern is engaged, the concerns size and level of profitability? be there any elements in the corporate balance sheet, either on the asset or the liability side, whose range of variation is so trap that it is feasible to speak of a normal? pattern of financial structure?The questions posed by Chudson could be interpreted into the research questions pertinent to this study which are the relationship among profitability and capital structure, the existence of an optimal capital structure, and also the trend of capital structure being rehearse by a sample of firms.Chudsons research showed there were undeniable relationships mingled with corporate financial structure and the firms profitability. As far-off as this study is concerned, Chudson had successfully turn out the relationship between the profitability of a company with various capital structure variables including debt and equity capital.3.2 M M PropositionsIn 1958 Merton Miller and Franco Modigliani in their famous Miller-Modigliani (MM) propositions put forward the net operating income approach of and demonstrated that the capital structure is irrelevant in a perfect market. Accordi ngly, the first Proposition holds that the value of a firm is in underage of its capital structure. While the second proposition stats that when first proposition held, the cost of equity capital was a running(a) increase function of the debt/equity ratio.As miller wrote subsequently these propositions implied that the weight down clean of these costs of capital to a firm would remain the same no matter what combination of financing sources the firm very chose. (Miller, 1988)In 1962, Barges time-tested and evaluated the MM propositions predominantly on the validity of the hypothesis that the cost of capital to the firms is unaffected by capital structure. According to Barges (p. 143) With respect to the empirical methods occupied by MM it was found that, under very ofttimes encountered conditions, their methods will result in tests which are bleached in party favour of their propositions and biased against the traditional views.?Barges had empirically proved the existence o f some weaknesses in the research purpose and methodology of Modigliani and Millers study and reason that (p. 147) Thus, on the basis of the evidence presented herein, the hypothesis of independence between deed costs and capital structure appears untenable.?Subsequently numerous studies were conducted with focus on the determination of capital structure and many theories were presented.3.3 Profitability and Leverage theoriesSince MM propositions presented, many studies were conducted by releasing MM assumptions focusing on the limit to which each of the assumptions contributes to the determination of the firms capital structure. All these theories explicates the relationship between leverage and the value of the firm and hence profitability of the firm. There are various theories in value to further explain this relationship. Nevertheless, these theories are actually based on crooked information (Myers, 1984), tax deductibility (Modigliani and Miller, 1963 Miller 1977), failu re costs (Stiglitz, 1972 Titman, 1984) and agency costs (Jensen and Meckling, 1976 Myers, 1977). Two main theories are the pecking order theory and the trade off theory.Pecking hostelry speculationThe Pecking Order possibleness is based on information asymmetry between guidance and investors. So, the stock price of a firm may not reflect crystalise value of the firm. Myers and Majluf (1984) and Myers (1984) suggest that management issue the security which is overvalued and therefore, undervalued firms tend to avoid issuing equity. They argue that in imperfect capital markets, leverage increases with the period of information asymmetry.They provided theoretical support to Donaldsons (1961) findings that firms prefer to use sexually generated cash in hand as a financing source and drop off to externals silver only if the need for funds was unavoidable. According to (Myers 1995), the dividend policy is horny? and the firms prefer internal to external financing. Firms prefer using internal sources of financing first, then debt and lowestly external equity obtained by stock issues.Therefore, asymmetric information models seldom point towards a well-defined target debt ratio or optimal capital structure. All things being equal, the to a greater extent economic the firms are, the more internal financing they will have, and therefore we should expect a negative relationship between leverage and profitability.The various studies such as Ross (1977), and Myers and Majluf (1984), Harris and Raviv, 1991 Rajan and Zingales, 1995 carrel et al., 2001have supported this relationship that is one of the almost systematic findings in the empirical literature.Agency Costs suppositionThe Agency Costs Theory (Organizational Theory of Capital Structure) emphasize that capital structure was influenced by conflicts between shareholders and managers, and between debt holders and equity holders. Major study into this area was done by Jensen and Meckling (1976) that sho wed managers inhering tendency to extract too many perquisites and stresses on self-interested behaviour. Obviously, agency costs would increase as the managers personal ownership stake in the firm decreases. This supplied an argument for debt financing and against public equity which was contributed by non management investors who cannot monitoring device management effectively. Fama and Miller (1972), using agency cost theory, proved that leverage was positively associated with firm value. Firms with longer credit histories would have displace cost of debt.The Trade of theoryThe trade-off theory is based on the considerations of gain grounds and the costs of debt. This theory argues that firms optimise their capital structure by business the tax deductibility of interests, loser costs, and agency costs. This theory is consistent with traditional approach of capital structure. This theory leads to an opposite conclusion. Accordingly if the firms are profitable, they should pre fer debt to benefit from the tax shield. foster as the past profitability is a good deputy for future profitability, profitable firms can borrow more because the likelihood of stipendiary back the loans is greater. so far after a certain level of leverage, the profitability and the value of the firm will reduce due to fundamental fundamental interaction of bankruptcy costs and agency costs.3.4 Various Studies on Capital StructureAs the issue of capital structure gained prominence and interest, a number of studies had been done over the years to explore the relationship between capital structure and a firms various characteristics e.g. growth opportunities, non-debt tax shields, firms volatility, asset systematic risk, asset unique risk, internal funds availability, asset structure, profitability, industry classification, and firm size. This study is concerned in particular on the relationship between capital structure and profitability.Most of the studies had conclude that cap ital structure measured by debt/equity ratio had an opposition relationship with profitability measured by wages on investment funds (ROI). prof Myers of MIT had written in 1995 that the strong negative correlation between profitability and financial leverage? is one of the most striking facts about corporate financing? (p.303). It is worthy to mention here that the aforesaid studies were the most comprehensive ever carried out in the US.One significant research was conducted by Bradley, Jarrell and Rim (1984) using Ordinary Least Squares method to psychoanalyze the capital structure of 851 industrial firms over a period of 20 years (1962-81). They concluded that an optimal capital structure actually existed as proposed by finance theorists.Bradley, Jarrell and Kims findings were supported by El-Khouri in 1989 who canvas a sample of 1,040 Companies in US from 27 different industries practical application a period of 19 years (1968-86). El-Khouris major findings were that there exists an optimal capital structure, and profitability was significantly but negatively related to capital structure.3.5 Rajan and Zingales StudyRajan and Zingales (1995), in their study of determinant of capital structure find that profitability is negatively or inversely related to railroad train consistent with Toy et al. (1974), Kester (1986) and Titman and Wessles (1988). Given, however, that the analysis is effectively performed as an estimation of a minify form, such a result masks the underlying demand and ply interaction which is likely to be taking place. More profitable firm will obviously need less borrowings, although on the supply-side such profitable firms would have better access to debt, and hence the demand for debt may be negatively related to profits.Most of such studies were conducted in US using local companies and hence represents financing and profitability relationship in US providence and might not be applicable in other countries round the globe. Som e of the studies conducted in UK as well though ever-changing business and economic environment and time period may have their affect on such capital structure and profitability relationship. Further as discussed earlier much attention was not given to one major aspect of the capital structure, which is the impact on the profitability and hence the value of the firm. So understanding the effect of capital structure on the profitability and hence the value of the firm in the current economic and business environment is the main motivation for this study.CHAPTER 3RESERCH FRAMEWORKI define to use two major sets of variables ( balances) i.e. Debt and Profitability to ascertain the relationship between the capital structure and profitability. The first set includes Gearing ratios Debt/ righteousness balance and Debt Ratio. The other set includes profitability ratios tabulator on Equity, and Return on Assets. The variables will be analyzed using the descriptive/time-series coefficien t of correlation and reversion technique.2.1 Data SampleThe data used for the empirical analysis will be derived from Hemscott database contains balance sheet, profit and loss and certain refer Ratio information for FTSE 100 companies in UK. For the purposes of this dissertation, I expect to engage this data to obtain the required variables for all non-financial companies.2.2 The Model and Research methodologyThe following model outlines the framework for research. It consist two major components i.e. the profitability of a firm as the hooklike variables and the capital structure of a firm as the separatist variables. The arrow pointing to the right indicated the expected agency of causality. However profitability and capital structure relationship is a two way relationship.DEBT symmetry roeDEBT/EQUITYRATIO ROAThe model gave the foundation for analysis which was to explain the relationship among the two main groups of variables. In as much as possible, variables will be sel ected on the basis of the literature being reviewed. Thus, musical composition this study is expected to give exciting results, there will be direct ties to earlier studies although may reflect the changing requirements of the time.One prominent issue here is the direction of the causality in the model. This research is based on the notion that the capital structure being practised by a firm would affect its profitability. This particular cause-and-effect relationship had been proved in various studies as found in the literature being reviewed. Though it should be kept in mind that there were a number of researchers who had argued that it was profitability which would influence the capital structure (Chudson 1945, Lamothe 1982, Bowen, Daley and Huber 1982). However, it is not within the eye socket of this study to determine the direction of causality in this particular relationship but rather to focus on the significance of such a relationship.2.3 VariablesIn the first instance, g reat care was taken to define the dependent and independent variables to be used in the descriptive, co variance and regression analysis. As there are several alternative measures of profitability and gearing, only relevant measures are chosen for this cross-sectional analysis.Dependent VariableProfitability is dependent variable in this analysis and two measures of profitability employed in this analysis are Return on Equity (ROE) and Return on Assets (ROA).ROE is the return on equity and is measured as dough before tax (EBT) divided by owners capital or equity.ROE = EBT/EQUITYROA is return on assets and is measured as earnings before interest and tax divided by total assets (Titman and Wessels, 1998 Fama and French, 2002 and Flannery and Rangan, 2006). The ratio of earnings before interest and tax (EBIT), to the hand value of total assets (TA)ROA = EBITDA/TAIndependent VariablesGearing Ratio represents capital structure. Therefore, in order to ensure the sensitivity or otherwis e of their cross-sectional results to the profitability following two ratios are used in this analysis and defined asDebt to impart Assets This is a simple ratio of total debt to total assetsDEBT RATIO= TD/ TADebt to Equity Capital This is the ratio of total debt to capital, with the capital careful as total debt plus equity, including preference shares.DEBT/EQUITY RATIO = TD / (TD + ECR + PS)PS the book value of preference shares.Research Plan and Implementation archiveResearch work starts from week beginning from October 4, 2010 and is expected to complete in 10 weeks time. The work is scheduled as follows.Research Planhebdomad fighter Date 04-10-2010Week12345678910 earth discipline and literature reviewXXResearch design and intentXChoice of methodologyXGathering dataXXXData analysis and refineXXXWriting up draftXXXEditing final documentXX flummox final documentXDocument passed to supervisor to readXResourcesI intend to use following resourcesHemscott database for data col lection.MS outdo for analysing data.University of Wales online library, internet, and some books on finance.FTSEs Capital Structure and Profitability RelationshipFTSEs Capital Structure and Profitability RelationshipThe capital structure of a firm has long been a much debated issue for academic studies and in the corporate finance world. It is the way a firm finances its assets through some combination of equity, debt, or hybrid securities the composition or structure of its liabilities. In reality, capital structure may be highly complex and include various sources. The question whether capital structure affects to the profitability of the firm or it is affected by profitability is crucial one. Profitability and capital structure relationship is a two way relationship. On the one hand profitability of firm is an important determinant of the capital structure, the other hand changes in capital structure changes affect underlying profits and risk of the firm.traditionally it was be lieved that the debt is useful up to certain limit and afterwards it proves costly. There is an optimum level of capital structure exist up to that level increasing debt will improve profitability, beyond that it will reduce profitability.In 1945, Chudson carried out an extensive study that implies the possibility of a relationship between the capital structures practised by a firm with its profitability. The question he endeavours to answer was that, In what way does the structure of assets and liabilities of a firm reflect the kind of industry in it is engaged, its size and level of profitability??In 1958 Merton Miller and Franco Modigliani in their famous Miller-Modigliani (MM) propositions put forward the net operating income approach of and demonstrated that the capital structure is irrelevant in a perfect market. It states irrelevant of capital structure in a perfect market to its value, hence, how a firm is financed does not matter. The MM propositions forms the basis for mod ern thinking on capital structure, though it is generally viewed as a purely theoretical result since it is based on perfect market assumptions those are not prevailing in practice.The matter of capital structure has gained much interest and controversy, since the MM Propositions which assert that the value of a firm is independent of its capital structure. The hypothesis proposed by MM created tidal waves in the corporate finance academia. Different theory such as packing order theory and agency cost theory were proposed. Various aspects of capital structure have been put to test and researched by so many researchers.The question is if the capital structure is really irrelevant in a real market and whether a companys profitability and hence value is affected by the capital structure it employs? If not, why capital structure is relevant and which factors make the leverage matter? Apart from profitability, some other factors such as bankruptcy costs, agency costs, taxes, and informat ion asymmetry are considered in determination of capital structure. This study aims and attempts to extend the knowledge of capital structure and profitability relationship in listed UK companies. This analysis can then be extended to look at whether there is in fact an optimal capital structure exist the one which maximizes profitability and hence the value of the firm.1.1 Context and relevance of the StudyThe topic of capital structure has been widely explored, though the study is relevant in the different time period and different context to find out whether the evidence concerning the capital structure issue and its various aspects are relevant to a given set of companies in a given period. Given this significance, current study attempts to understand and research on capital structure and its effect on profitability, of large firms in UK in the present context for a period of five years (2005 -2010). Thus, this study attempts to contribute to the research on capital structure in the recent period for large publicly traded companies on FTSE 100.1.2 Research ObjectivesThe present study is aimed at achieving one main and two secondary objectives. The main objective is to scrutinise the relationship between the capital structure and profitability of the large publicly traded UK firms and to ascertain whether a firms profitability is related with its capital structure or not based on the empirical evidence generated. Secondly, this study would attempt and investigate to determine if any optimal capital structure exist among the sample of FTSE 100 listed companies. Third objective is to find out any trend of capital structure being exhibited by the UK companies.1.3 Research Questions and HypothesisThe above objectives are translated in two research question. The main research question is that whether a firms profitability is related with its capital structure or not based on the empirical evidence generated.HypothesisThe first questions can be presented as follo wing hypothesis. The present study shall be undertaken to evaluate this hypothesis based on the tests of the null hypothesis.H1 The profitability of a company is significantly correlated to its capital structure.H0 The profitability of a company is not significantly correlated to its capital structure.The secondary objectives of this study are translated in the determinant question regarding the optimality and trend of capital structure. The second question, will be discussed descriptively is that, Is there an optimal capital structure exists among or any trend of capital structure being exhibited by FTSE 100 listed companies?1.4 Scope and Limitations of the StudyScopeThis is an academic study that would shed some light on the matter of capital structure which has been discussed in various different perspectives since the MM propositions. The significance of this study is that it further enhances the research into capital structure of listed firms in UK. Profitability and Capital st ructure relationship is an ongoing issue and its relevance may change in different period because of the changes in macro and micro economic factors. For practitioners and corporate finance people such as finance executives, controllers and directors of listed firms, this study is relevant and of much interest to get insight of the capital structure and whether it has any effect on the profitability.LimitationsThe findings of this study will be limited from the following aspectsThis study included only FTSE 100 listed firms on the London Stock Exchange (LSE). Hence, its findings were not applicable for all the listed companies in UK.The sample of listed companies for this study included only firms with at least five years of financial data. Firms which are younger than five years or whose five year data could not be obtained will not be included in this study.The study excludes financial utility and other highly regulated industry to avoid any distortions in the result due to indust ry specific requirements.The cross sectional correlation and regression analysis will be performed using excel formula.CHAPTER 2LITERATURE REVIEWThe various capital structure theories are developed by corporate finance academia for analysing how a firm could combine the securities to maximise its value. The Modigliani and Miller (MM) proposition (1958) were introduced under the perfect capital market assumptions. It refers to an ideal market where there are no taxes at both corporate and personal level, no transaction costs, no agency costs as and managers are rational. It further assumes that investors and firms can borrow at the same rate without restrictions and all participants have access to all relevant information. Thus it provides conditions under which the capital structure of a firm is irrelevant to total firm value.Most of studies focus on the determination of capital structure i.e. to what extent each of the assumptions in the MM model contributes to the determination of the firms capital structure. Many theories such as the pecking order theory, the trade-off theory and the agency cost theory have been developed.Though much attention was not given to one major aspect of the capital structure, which is the impact of the value of the firm. The value comes from the future cash flow i.e. profit of the firm. Thus capital structure affects value of the firm through the profitability and hence there is a direct relationship between the capital structure and profitability of the firm.Capital StructureThe term capital structure can be defined as The mix of a firms permanent long-term financing represented by debt, preferred stock, and common stock equity.? (Van Horne Wachowicz, 2000, p.470)It can be defined as The mix of long-term sources of funds used by the firm. This is also called the firms capitalization?. The relative total (percentage) of each type of fund is emphasized.? (Petty, Keown, Scott, and Martin, 2001, p.932)One of the exhaustive and inclu sive description was given by Masulis (1988, pl) Capital structure encompasses a corporations publicly issued securities, private placements, bank debt, trade debt, leasing contracts, tax liabilities, pension liabilities, deferred compensation to management and employees, performance guarantees, product warranties, and other contingent liabilities. This list represents the major claims to a corporations assets. Increases or reductions in any of these claims represent a form of capital structure change.?However in this study, for the sake of simplicity, the capital structure will be analysed in term of debt and equity in line with other prominent capital structure studies and theories restricted to the debt equity mix.ProfitabilityThe term profitability is a very common term in the business world. It refers to an all round measurement and indicator for a firms success. Profitability can be defined as the ability of a firm to generate net income or profit on a consistent basis. It is often measured by price to earnings ratio. The accounting definition of profit can be given as the difference between the total revenue and the total costs incurred in bringing to market the product i.e. goods or service.Hence, profitability had come to mean different things for different people. It can be defined and measured in several ways depending on the purpose. It is a generic name for variables such as net income, return on total assets, earnings per share, etc. though the simplest and common meaning of profitability is the net income.3.1 Early Study on Capital Structure by W A ChudsonOne of the earliest comprehensive researches into capital structure of business firms was done by Chudson Walter Alexander (1945) on a cross section of manufacturing, mining, trade, and construction companies in the US from the year 1931 to 1937. Although it has been more than two third of a century, that study is still relevant today as before due to the seven questions which he endeavoured to answer. Out of those questions the relevant to this study are as follows.In what way does the structure of assets and liabilities of a given concern reflect the kind of industry in which a concern is engaged, the concerns size and level of profitability?Are there any elements in the corporate balance sheet, either on the asset or the liability side, whose range of variation is so narrow that it is possible to speak of a normal? pattern of financial structure?The questions posed by Chudson could be interpreted into the research questions pertinent to this study which are the relationship between profitability and capital structure, the existence of an optimal capital structure, and also the trend of capital structure being practised by a sample of firms.Chudsons research showed there were undisputable relationships between corporate financial structure and the firms profitability. As far as this study is concerned, Chudson had successfully proved the relationship between the profita bility of a company with various capital structure variables including debt and equity capital.3.2 M M PropositionsIn 1958 Merton Miller and Franco Modigliani in their famous Miller-Modigliani (MM) propositions put forward the net operating income approach of and demonstrated that the capital structure is irrelevant in a perfect market. Accordingly, the first Proposition holds that the value of a firm is independent of its capital structure. While the second proposition stats that when first proposition held, the cost of equity capital was a linear increasing function of the debt/equity ratio.As miller wrote subsequently these propositions implied that the weighted average of these costs of capital to a firm would remain the same no matter what combination of financing sources the firm actually chose. (Miller, 1988)In 1962, Barges tested and evaluated the MM propositions predominantly on the validity of the hypothesis that the cost of capital to the firms is unaffected by capital s tructure. According to Barges (p. 143) With respect to the empirical methods employed by MM it was found that, under very frequently encountered conditions, their methods will result in tests which are biased in favour of their propositions and biased against the traditional views.?Barges had empirically proved the existence of some weaknesses in the research design and methodology of Modigliani and Millers study and concluded that (p. 147) Thus, on the basis of the evidence presented herein, the hypothesis of independence between average costs and capital structure appears untenable.?Subsequently many studies were conducted with focus on the determination of capital structure and many theories were presented.3.3 Profitability and Leverage theoriesSince MM propositions presented, many studies were conducted by releasing MM assumptions focusing on the extent to which each of the assumptions contributes to the determination of the firms capital structure. All these theories explains t he relationship between leverage and the value of the firm and hence profitability of the firm. There are various theories in order to further explain this relationship. Nevertheless, these theories are actually based on asymmetric information (Myers, 1984), tax deductibility (Modigliani and Miller, 1963 Miller 1977), Bankruptcy costs (Stiglitz, 1972 Titman, 1984) and agency costs (Jensen and Meckling, 1976 Myers, 1977). Two main theories are the pecking order theory and the trade off theory.Pecking Order TheoryThe Pecking Order Theory is based on information asymmetry between management and investors. So, the stock price of a firm may not reflect correct value of the firm. Myers and Majluf (1984) and Myers (1984) suggest that management issue the security which is overvalued and therefore, undervalued firms tend to avoid issuing equity. They argue that in imperfect capital markets, leverage increases with the extent of information asymmetry.They provided theoretical support to Dona ldsons (1961) findings that firms prefer to use internally generated funds as a financing source and resort to externals funds only if the need for funds was unavoidable. According to (Myers 1995), the dividend policy is sticky? and the firms prefer internal to external financing. Firms prefer using internal sources of financing first, then debt and finally external equity obtained by stock issues.Therefore, asymmetric information models seldom point towards a well-defined target debt ratio or optimal capital structure. All things being equal, the more profitable the firms are, the more internal financing they will have, and therefore we should expect a negative relationship between leverage and profitability.The various studies such as Ross (1977), and Myers and Majluf (1984), Harris and Raviv, 1991 Rajan and Zingales, 1995 Booth et al., 2001have supported this relationship that is one of the most systematic findings in the empirical literature.Agency Costs TheoryThe Agency Costs T heory (Organizational Theory of Capital Structure) emphasize that capital structure was influenced by conflicts between shareholders and managers, and between debt holders and equity holders. Major study into this area was done by Jensen and Meckling (1976) that showed managers natural tendency to extract too many perquisites and stresses on self-interested behaviour. Obviously, agency costs would increase as the managers personal ownership stake in the firm decreases. This supplied an argument for debt financing and against public equity which was contributed by non management investors who cannot monitor management effectively. Fama and Miller (1972), using agency cost theory, proved that leverage was positively associated with firm value. Firms with longer credit histories would have lower cost of debt.The Trade of theoryThe trade-off theory is based on the considerations of benefits and the costs of debt. This theory argues that firms optimise their capital structure by trading the tax deductibility of interests, bankruptcy costs, and agency costs. This theory is consistent with traditional approach of capital structure. This theory leads to an opposite conclusion. Accordingly if the firms are profitable, they should prefer debt to benefit from the tax shield. Further as the past profitability is a good proxy for future profitability, profitable firms can borrow more because the likelihood of paying back the loans is greater. However after a certain level of leverage, the profitability and the value of the firm will reduce due to interaction of bankruptcy costs and agency costs.3.4 Various Studies on Capital StructureAs the issue of capital structure gained prominence and interest, a number of studies had been done over the years to explore the relationship between capital structure and a firms various characteristics e.g. growth opportunities, non-debt tax shields, firms volatility, asset systematic risk, asset unique risk, internal funds availability, as set structure, profitability, industry classification, and firm size. This study is concerned particularly on the relationship between capital structure and profitability.Most of the studies had concluded that capital structure measured by debt/equity ratio had an inverse relationship with profitability measured by Return on Investment (ROI). Professor Myers of MIT had written in 1995 that the strong negative correlation between profitability and financial leverage? is one of the most striking facts about corporate financing? (p.303). It is worthy to mention here that the aforesaid studies were the most comprehensive ever carried out in the US.One significant research was conducted by Bradley, Jarrell and Rim (1984) using Ordinary Least Squares method to analyze the capital structure of 851 industrial firms over a period of 20 years (1962-81). They concluded that an optimal capital structure actually existed as proposed by finance theorists.Bradley, Jarrell and Kims findings were su pported by El-Khouri in 1989 who studied a sample of 1,040 Companies in US from 27 different industries covering a period of 19 years (1968-86). El-Khouris major findings were that there exists an optimal capital structure, and profitability was significantly but negatively related to capital structure.3.5 Rajan and Zingales StudyRajan and Zingales (1995), in their study of determinant of capital structure find that profitability is negatively or inversely related to gearing consistent with Toy et al. (1974), Kester (1986) and Titman and Wessles (1988). Given, however, that the analysis is effectively performed as an estimation of a reduced form, such a result masks the underlying demand and supply interaction which is likely to be taking place. More profitable firm will obviously need less borrowings, although on the supply-side such profitable firms would have better access to debt, and hence the demand for debt may be negatively related to profits.Most of such studies were conduc ted in US using local companies and hence represents financing and profitability relationship in US economy and might not be applicable in other countries around the globe. Some of the studies conducted in UK as well though changing business and economic environment and time period may have their impact on such capital structure and profitability relationship. Further as discussed earlier much attention was not given to one major aspect of the capital structure, which is the impact on the profitability and hence the value of the firm. So understanding the effect of capital structure on the profitability and hence the value of the firm in the current economic and business environment is the main motivation for this study.CHAPTER 3RESERCH FRAMEWORKI intend to use two major sets of variables (Ratios) i.e. Debt and Profitability to ascertain the relationship between the capital structure and profitability. The first set includes Gearing ratios Debt/Equity Ratio and Debt Ratio. The other set includes profitability ratios Return on Equity, and Return on Assets. The variables will be analyzed using the descriptive/time-series Correlation and regression technique.2.1 Data SampleThe data used for the empirical analysis will be derived from Hemscott database contains balance sheet, profit and loss and certain Key Ratio information for FTSE 100 companies in UK. For the purposes of this dissertation, I expect to utilise this data to obtain the required variables for all non-financial companies.2.2 The Model and Research MethodologyThe following model outlines the framework for research. It consist two major components i.e. the profitability of a firm as the dependent variables and the capital structure of a firm as the independent variables. The arrow pointing to the right indicated the expected direction of causality. However profitability and capital structure relationship is a two way relationship.DEBT RATIO ROEDEBT/EQUITYRATIO ROAThe model gave the foundation for anal ysis which was to explain the relationship among the two main groups of variables. In as much as possible, variables will be selected on the basis of the literature being reviewed. Thus, while this study is expected to give exciting results, there will be direct ties to earlier studies although may reflect the changing requirements of the time.One prominent issue here is the direction of the causality in the model. This research is based on the notion that the capital structure being practised by a firm would affect its profitability. This particular cause-and-effect relationship had been proved in various studies as found in the literature being reviewed. Though it should be kept in mind that there were a number of researchers who had argued that it was profitability which would influence the capital structure (Chudson 1945, Lamothe 1982, Bowen, Daley and Huber 1982). However, it is not within the scope of this study to determine the direction of causality in this particular relati onship but rather to focus on the significance of such a relationship.2.3 VariablesIn the first instance, great care was taken to define the dependent and independent variables to be used in the descriptive, co variance and regression analysis. As there are several alternative measures of profitability and gearing, only relevant measures are chosen for this cross-sectional analysis.Dependent VariableProfitability is dependent variable in this analysis and two measures of profitability employed in this analysis are Return on Equity (ROE) and Return on Assets (ROA).ROE is the return on equity and is measured as earnings before tax (EBT) divided by owners capital or equity.ROE = EBT/EQUITYROA is return on assets and is measured as earnings before interest and tax divided by total assets (Titman and Wessels, 1998 Fama and French, 2002 and Flannery and Rangan, 2006). The ratio of earnings before interest and tax (EBIT), to the book value of total assets (TA)ROA = EBITDA/TAIndependent Var iablesGearing Ratio represents capital structure. Therefore, in order to examine the sensitivity or otherwise of their cross-sectional results to the profitability following two ratios are used in this analysis and defined asDebt to Total Assets This is a simple ratio of total debt to total assetsDEBT RATIO= TD/ TADebt to Equity Capital This is the ratio of total debt to capital, with the capital calculated as total debt plus equity, including preference shares.DEBT/EQUITY RATIO = TD / (TD + ECR + PS)PS the book value of preference shares.Research Plan and Implementation ScheduleResearch work starts from week beginning from October 4, 2010 and is expected to complete in 10 weeks time. The work is scheduled as follows.Research PlanWeek Star Date 04-10-2010Week12345678910Background reading and literature reviewXXResearch design and planXChoice of methodologyXGathering dataXXXData analysis and refineXXXWriting up draftXXXEditing final documentXXProduce final documentXDocument passed to supervisor to readXResourcesI intend to use following resourcesHemscott database for data collection.MS Excel for analysing data.University of Wales online library, internet, and some books on finance.

Meaning Of Mobile Banking Information Technology Essay

Meaning Of planetary Banking learning Technology EssayThe internet and the liquid think, the two technological advancements that catch profoundly affected human behavior in the last ten-spot read started to converge. Using a variety of platforms, operate argon world created to enable planetary devices to perform many activities of the traditional internet in a reduced format for mobile devices. One such orbit of activity is mobile relying.A cluster of dedicated and demanding mobile call substance abusers (consumers) have multiplied tremendously everyplace the years, who expect real-time reading and access and high levels of service.This article looks at how and why banking customers have began to abridge advantage of mobile services for their banking requirements and why some of them ar button up hesitant to adopt mobile banking. withal this article throws light on some of the eminent challenges faced by the mobile banking service providers, which rump be seen as opportunities for the financial institutions and the bankers.IntroductionRecently, the demands and requirements of banking consumers ar altering chop-chop with the rise in the technological avenues made available in the banking world. Banking Customers have started demanding flawless, multi-channel service experiences. The result is forcing banks and financial institutions to facilitate them with the latest business models and banking firmness of purposes.With the subjoin in the customer demands and expectations, it has became necessary for the banks and fiscal Institutions to update and transform their retail distribution channel for banking services from a branch banking-dominated model to a multi-channeled service model. Mobile banking is one such channel through which respectable business is getting generated for Banks.Meaning of Mobile BankingIn a laymans context, the destination Mobile Banking meansExecution of Banking and Financial minutes utilize a Mobile phone or Av ailing banking services through a long suit of cellular phone, without visiting the banks branchSMSs sent by bank on withdrawal and deposit minutes, credit card and ATM card routine notifications sent by bank, a call received from customer financial aid department of the bank for critical transaction requests, Bill payments made from the bank balances through cell phone, transfer of money from one account to another(prenominal) utilize cell phone, etc. are all examples of Mobile Banking transactions.Also it is the primary responsibility of the Banks (Mobile banking facilitators) to ensure that all the Mobile banking transactions are secured and performed on a real time basis.Behavioral intentions of consumers for using mobile banking servicesConsumers will generally prefer using Mobile Banking over the traditional Branch banking for the following reasonsMobile phone has already evolved as a familiar device in majority of middle pattern house holdsMobile mobilise is always han dySufficient guidance is available in using mobile phone for bankingMobile Phone enables fast and effortless banking transactionsService quality provided by banks, for Mobile Banking transactions is acceptable oneConsumers are generally hesitant using Mobile Banking services for the following reasonsMobile banking services cannot be apply practically, due to expensive phone billsData transmission rate is excessively slow while carrying out Mobile Banking transactionsMobile phone is found complicated in use due to Poor user interfaceUsers have faced disappointment due to Malfunction of services and claim of operating instructions by BanksChallenges Faced by Banks and Financial institutions in facilitating Mobile Banking Transactions Security of financial transactions, fraud and individuality theft issues are getting increased importance, as the mobile banking users consider to be safeguarded against such malpractices. Compliance issues are now being examined by governmental ag encies, which include anti-money laundering compliance issues for banks, because cell phones, particularly those using prepaid accounts, (having few checks on the identity of the user) are popularly employ by money launderers to transfer silver quickly, inexpensively, and anonymously. There are no common applied science standards for mobile banking. Various kinds of Client-based and Server based technologies are used, so there are Interoperability issues. A mobile banking solution usually is client particular proposition and cannot have connectivity with multiple banks and hence becomes inconvenient for a user with multiple accounts. Also there are different kinds of mobile phone devices and it is a big challenge for banks to offer mobile banking solution for a particular type of device. The Service offerings range from simple composite plant transactions like checking account balances, bill payments, alerts, loan statements etc to complex transactions like electronic wallet, f orex payments, mobile financial advisor etc. do it difficult for a technology solution provider to deliver on all parameters. Again a same mobile solution may not work in every market, it should be market specific solution, and different markets should be understood properly. In developed markets, being an innovator is very likely to be a failure and also expensive. many consumers also have barriers in mobile banking adoption due to lack of awareness and understanding of the benefits provided by mobile banking. Therefore overcoming the perception of consumer risks and increase the computer and technological skills literacy among the mobile phone user stands as a challenge for the banksRecommendationThe usage of Mobile Devices for Financial and Banking transactions could be made more effective by controlling mobile banking transactions by voice instead of opting for long typed sentences on the mobile devices. closedownMobile banking has already evolved as a powerful intermediate towards streamlined and real-time banking service. The Banks and the mobile banking service providers are working their way towards increase consumer acceptance with mobile devices to carry out their banking transactions. The mobile banking service providers are teaming up with mobile banking technology vendors for consistently improving technology solutions that tension on creating a better consumer friendly experience with mobile banking. These technology advances will further increase consumer acceptance and ease with mobile devicesThe tip value to consumers has always been time and location service fulfillment and this need will be further enriched enabled through the mobile channel. Mobile banking in the future will not be just about receiving SMS and transferring funds but will evolve into a mobile wallet concept, thusly opening up a gamut of opportunities for companies in the BFSI domain to tap potential drop customers.And this is how mobile banking is raging to improve the customer service relationships as proficiency towards Consumer Value Creation