Finding Conditions for Factor Returns and Scale Returns

A factor return is the return attributable to a particular common factor, or an element that influences many assets which can include factors like market capitalization, dividend yield, and risk indices, to name a few. Returns to scale, on the other hand, refer to what happens as the scale of production increases over the long term as all inputs are variable. In other words, scale returns represent the change in output from a proportionate increase in all inputs. To put these concepts into play, lets take a look at a production function with a factor returns and scale returns practice problem. Factor Returns and Returns to Scale Economics Practice Problem Consider the production function Q KaLb. As an economics student, you may be asked to find conditions on a and b such that the production function exhibits decreasing returns to each factor, but increasing returns to scale. Lets look at how you might approach this. Recall that in the article Increasing, Decreasing, and Constant Returns to Scale that we can easily answer these factor returns and scale returns questions by simply doubling the necessary factors and doing some simple substitutions. Increasing Returns to Scale Increasing returns to scale would be when we double all factors and production more than doubles. In our example we have two factors K and L, so well double K and L and see what happens: Q KaLb Now lets double all our factors, and call this new production function Q Q (2K)a(2L)b Rearranging leads to: Q 2abKaLb Now we can substitute back in our original production function, Q: Q 2abQ To get Q 2Q, we need 2(ab) 2. This occurs when a b 1. As long as ab 1, we will have increasing returns to scale. Decreasing Returns to Each Factor But per our practice problem, we also need decreasing returns to scale in each factor. Decreasing returns for each factor occurs when we double only one factor, and the output less than doubles. Lets try it first for K using the original production function: Q KaLb Now lets double K, and call this new production function Q Q (2K)aLb Rearranging leads to: Q 2aKaLb Now we can substitute back in our original production function, Q: Q 2aQ To get 2Q Q (since we want decreasing returns for this factor), we need 2 2a. This occurs when 1 a. The math is similar for factor L when considering the original production function: Q KaLb Now lets double L, and call this new production function Q Q Ka(2L)b Rearranging leads to: Q 2bKaLb Now we can substitute back in our original production function, Q: Q 2bQ To get 2Q Q (since we want decreasing returns for this factor), we need 2 2a. This occurs when 1 b. Conclusions and Answer So there are your conditions. You need ab 1, 1 a, and 1 b in order to exhibit decreasing returns to each factor of the function, but increasing returns to scale. By doubling factors, we can easily create conditions where we have increasing returns to scale overall, but decreasing returns to scale in each factor. More Practice Problems for Econ Students: Elasticity of Demand Practice ProblemAggregate Demand Aggregate Supply Practice Problem

Apartheid in South Africa - 1656 Words

During my lifetime I have dedicated myself to this struggle of the African people. I have fought against white domination, and I have fought against black domination. I have cherished the ideal of a democratic and free society in which all persons live together in harmony and with equal opportunities. It is an ideal which I hope to live for and to achieve. But if needs be, it is an ideal for which I am prepared to die. -- Nelson Mandela -- 20 April 1964. Rivonia trial Historical Background South Africa is a land of abundant natural resources, mild climate, and fertile lands. Their resources range from diamond and gold to platinum and their land is fertile enough to feed the rest of the world if cultivated intensively. Yet many†¦show more content†¦If Blacks were caught with family members who did not have the permission to be in the area, they were arrested and imprisoned, once spotted by the inspectors. The Population Registration Act, also in 1950, required that all Africans were classified into three categories according to race. These were Black, Colored, or White, and the government made these classifications according to a person’s habits, education, appearance, and manner. Rules were given according to race and had to be followed to prevent dire consequences. The Bantu Authorities Act, 1951, assigned all Africans to their native land. This stole power away from the Africans, and instead allowed them to vote solely within their homeland. This allowed the denationalization of Africans possible. The Bantu Education Act applied apartheid to the educational system. The education of Whites, Blacks, and Colored was separately administered and financed. The Abolition of Passes and Coordination of Documents Act, 1952, required all Africans to carry a pass-book, similar to a passport. The pass-book contained all personal information, such as name, photograph of holder, fingerprints, and also gave a detailed explanation on where a person could be employed, and their performance at work. If Africans did not obey the rules, they were kicked out from the area, and their crime would be reported in their pass-books. The penalty for not carrying the book at all times was also severe, rangingShow MoreRelatedThe Apartheid Of South Africa1174 Words   |  5 PagesSome periods in human history are simply shameful. The period of apartheid policy in South Africa was one of these times. Apartheid featured a rebirth of racist legislature in South Africa from the 1950s to the 1990s. Essentially, these laws treated people who were not white as completely separate from society; the term apartheid literally means â€Å"apartness.† The nation al legislature in South Africa wanted to suppress blacks and ensure a white supremacy in the government. Basically, politicalRead MoreSouth Africa Apartheid And Oppression1695 Words   |  7 Pages South Africa Apartheid (oppression) Oppression is at the root of many of the most serious, enduring conflicts in the world today. Racial and religious conflicts; conflicts between dictatorial governments and their citizens; the battle between the sexes; conflicts between management and labor; and conflicts between heterosexuals and homosexuals all stem, in whole or in part, to oppression. It’s similar to an article in south africa that people have with racial segregationRead MoreApartheid and The Future of South Africa in Cry, The Beloved Country1044 Words   |  5 Pagesall characters from Alan Paton’s book, Cry, The Beloved Country, are used to share Paton’s points of view on the future of South Africa and the apartheid. Paton uses these characters to represent specific views; Arthur expresses clearly that the apartheid isn’t the right way to progress as a country, Napoleon exemplifies how Paton thinks people should take the anti-apartheid effort, and Msimangu explicitly expresses Patonâ €™s ideas of an ideal leader. Arthur Jarvis was the son of James Jarvis, anRead MoreEssay on South Africa Under Apartheid: A Totalitarian State1356 Words   |  6 PagesDuring the Apartheid Era, there emerged from South Africa cases of gross human rights abuse, racism, police brutality and general mistreatment of the non-white population. Excluding the fact that South Africa was never ruled by a dictator, it can be argued that some of these features were totalitarian and that South Africa was, to a certain extent, a totalitarian state under Apartheid. This discussion will analyse the totalitarian features that were apparent during Apartheid, and will be structuredRead MoreTo What Extent Did The Collapse Of Apartheid South Africa ( 1991 ) Really Bring About Change For The Bantu Population1458 Words   |  6 PagesTo what extent did the collapse of Apartheid in South Africa (1991) really bring about change for the Bantu population? The collapse of Apartheid in South Africa (1991) brought only a small amount of change for the Bantu population. South still faces racism in society, due to the continual domination by the â€Å"white† population with race interaction limited to the false â€Å"rainbow† television campaigns and promotional Africa strategies. At the close of Apartheid, a number of false statements were usedRead MoreHow and why did the apartheid system come into existence in South Africa and how was its existence maintained and enforced for so long?1593 Words   |  7 PagesThe term apartheid was one of the most politically charged words in the second half of the 20th century, and still remains notorious today. Apartheid translated from Afrikaans means separateness or apartness. However when the National Party came to power in South Africa in 1948, it took on a much more sinister meaning and today is associated with racial and ethnic discrimination. The roots of apartheid stem deep into South African history. It started way back during European settlement, andRead MoreApartheid in South Africa1118 Words   |  5 PagesApartheid In South Africa APARTHEID Apartheid is the political policy of racial segregation. In Afrikaans, it means apartness, and it was pioneered in 1948 by the South African National Party when it came to power. Not only did apartheid separate whites from non-whites, it also segregated the Blacks (Africans) from the Coloureds (Indians, Asians). All things such as jobs, schools, railway stations, beaches, park benches, public toilets and even parliament. Apartheid alsoRead MoreThe Apartheid Of South Africa1159 Words   |  5 PagesDuring the year of 1948, the lives of south Africans changed forever. The National Party, which was an all-white government, gained power and created hell for non-white citizens, their goal was to have white people continue to dominate the country and to keep each race separated from each other; even though at the time whites were only 20% of the population. The apartheid, which literally means â€Å"apartness† lasted until 1991, and during this time many acts were passed. One being that â€Å"non-white AfricansRead MoreThe Apartheid Of South Africa Essay1742 Words   |  7 PagesNelson Mandela and protesters during South Africa s journey away from apartheid. It’s a curious ponder, in fact, that America’s and South Africa’s ascents from racial discrimination were possibly involved with each other. However, while the world may be convinced the nation is out of racist dep ths, evidence displays the rise from discrimination in South Africa is undeniably incomplete. There is a dangerous and unresolved influence of apartheid in South Africa today. After World War 2 was won byRead MoreThe Apartheid Of South Africa1333 Words   |  6 Pageshistory of South Africa all we could see is racial discrimination. Africa was all in control of Whites till 1994. South Africa got free from racial discrimination when Nelson Mandela took a step became the first black prime minister of South Africa. Contemporary South Africa is now economically strong and it is completely a racial free state. The contemporary South Africa is now in race with every state in every field. Before 1994 South Africa was completely under control of Apartheid. WHO IS APARTHEID

Business Plan for Car Wash Busy Bee Car Centre

Question: Describe about the Business Plan for Busy Bee Car Wash Centre? Answer: Executive Summary Busy Bee Car Centre is a well established car serving business in town and it has a plan to serve the people with hand car wash and detailing in Bronte as there is not any specific business that offer such business in that location. The company will provide different range of service to customers related to cars or vehicles. On the other hand, the particular study has focused on conducting industry analysis by using Porters five forces model. Moreover, the business focused on the sales and revenue that they can generate in the period of five years from the proposed business. The market analysis has been conducted to know the feasibility of the selected market for running the business of hand car wash and detailing. The market segmentation has been done to target the potential customer that can increase the earnings and sales of the business. The marketing plan has been outlined and also the company structure to have clear idea about the management of Busy Bee Car Centre. Further, ope rational plan has been mentioned followed by financial projections taking account of income statement, balance sheet, cash flow and loan. Company Description Busy Bee Car Centre is a well known hand car wash which is located in Bronte, Sydney, Australia. The car wash business will be effectively involved in the business of car repair for over 12 years. Therefore, in order to penetrate in the market, the owner that is John Hayden has decided to enter into the car washing zone and detailing to provide better service to customers in maintaining their vehicles. It has also been seen that since past three years the profit of the business is decreasing which is affecting the business and growth. Moreover, the competitors have risen in that area which is one of the reasons that Busy Bee has decided to start hand car wash business for gaining competitive edge. Busy Bee will be engaged in delivering services such as interior car cleaning, exterior car cleaning and detailing. The owner has such taken decision as there are no any true rivals that provide superior quality service at affordable price. Therefore, entering into the new business will not help in increasing profit margin but also increase in the market share (Abrams, 2010). 1.1 Objectives of Busy Bee Car Centre To gain high profit margin and revenue To be regarded as a best car wash and detail service business in Bronte To provide quality service at reasonable cost to customers To expand business in two location after successful year To engage productive and efficient employees 1.2 Mission of Busy Bee Car Centre The mission of Busy Bee is to deliver superior and excellent washing and detail service all the time to the car owners. The employees will be treated with respect and dignity in order to provide productive customer service. 2. Industry Analysis The service of Car Wash and Detailing in Australia has seen a significant growth in last five years which is helping the car wash business to generate better income and profit. However, in spite of growth in the service, the market share has not been up to the mark but instead there is predication by market analyst that higher revenue will be generated along with market share in coming three to four years. On the other hand, it is evident that sale of the car has tremendously increased over the years and due to pollution people are not able to clean their car by their own (Bird, 2010). Moreover, they do not know the right technique to wash and detail the car. Therefore, there is huge opportunity for the Busy Bee Car Centre to provide service with car washing and detailing. Apart from that, it has also been known, since 1999, the car washing business has shown reasonable growth in comparison to home wash. Years Car Wash Home Wash 1999 55.1% 44.5% 2002 57.0% 43.0% 2005 62.0% 38.0% 2008 65.6% 34.4% 2011 71.3% 31.8% Table 1: Comparison in growth of car wash service with home wash Figure1: Car Wash and Home Wash Growth It can be understood from the above figure that Car Wash and Detailing service industry is growing at a good pace in Australia and it provide number of opportunity to the people to have a car wash business and earn a reasonable profit margin. The particular industry can be further understood by Porters Five Forces Model. Industry Rivalry: The intense competition in the industry can pose significant challenges to the business. However, Busy Bee Car Centre has found that in the selected location there are no true competitors that can pose threat to their car wash and detail service business. Apart from that, it has been also taken in account that presence of small competitors that hold automatic car wash machine can disturb the operation and their growth (Finch, 2010). Therefore, in order to be ahead, Busy Bee may have to provide timely and quick service with high quality. Threat of substitutes: As the owner of the Busy Bee Car Centre decided to clean the car manually than the presence of automatic car washing machine by small business in the area can take away the opportunity of Busy Bee to earn higher profit or price rising ability (Boone, 2012). Thus, Busy Bee has to remain aware about such substitute in order to conduct their operation in effective way. Bargaining power of buyers: The availability of many car washing centres can provide power to the buyers to have their impact on the prices (Dess, 2012). However, it is known that there is no or less car washing and detailing service in Bronte which means that buyers may not have advantage to negotiate on the price that will be charged for the provided service. Therefore, it is a positive sign for Busy Bee to fix the price for service that can not only help in increasing profit margin but also will help in increasing customer circle. Bargaining power of suppliers: If suppliers have the bargaining power than it can lower down the profit level of any business. Therefore, it has been seen that as the Busy Bee business is in the market for over long time thus, they have better relationship with the suppliers for receiving car equipments, cleaning materials, etc (Gandellini, Pezzi and Venanzi, 2012). Thus, it can be understood that Busy Bee does not have to worry about the suppliers. Moreover, the business has to provide right pay to the suppliers in order to gain higher benefit from them. Barriers to entry: It is evident that the rise in the industry of cash wash and detailing has provided large benefit to the business owner or sole proprietors to enter into the particular industry as the industry ensure good return on investment (Marburger, 2012). Therefore, it can be a possible threat for Busy Bee in future. Therefore, Busy Bee may have to continuously upgrade their service so that they can hold their loyal customers and market with higher efficiency. 3. Market Analysis The owner of Busy Bee has counted on Bronte for starting the proposed business as the selected market will ensure large benefit for the success of the business. Moreover, in the selected location, around 42% of the households earn approx $73000 annually. Therefore, many people in that location owns car and also lease cars and they have great value for their cars and its look. 3.1. Market Segmentation Busy Bee Car Centre divides their customers on the basis of car ownership. Further, in order more clear picture, the market has been segmented as: Owners of new car: The people that owns a brand new car mostly likes to have a hand car washing service. Therefore, in Bronte, there are about 33% of people that has brand new cars. Thus, in order to maintain the look and details of the car, the owners will prefer to visit the Busy Bee for hand car washing instead of going for machine car washing (Tsiotsou and Goldsmith, 2012). Owners of older luxury Cars: This particular group of people has been targeted as they can be holding high end luxury cars from many years or they may not be able to pay for the expenses of latest luxury cars (Mooradian, Matzler and Ring, 2012). Therefore, in order to keep their cars in good condition and look, the owners may take their cars to Busy Bee for washing and detailing so that they can have relaxed driving and feel good about their vehicles. Owners of sport car: The owner of sport cars normally belongs to middle age or younger group people and they want to keep their car brand new as the costs of sports car are too expensive. Therefore, in order to maintain the shine and details, the owners may prefer to have hand car washing and cleaning as they have a view that machine car wash can scratch their car which will be costly for them to maintain it further. Lifetime Owners: It has been known that many people possess cars for more than five years and women are most in owning cars for such long period (Hughes, 2012). Thus, they are connected as a friend with their cars and also it may be difficult for them to own a new car. Therefore, they may prefer to bring their vehicles to Busy Bee occasionally so that they can keep their car dirt free and presentable look. Dealerships: The used and new car dealership can be effective for the Busy Bee to generate better profit and earnings from the car dealerships. It has been studied that within three and half miles of selected location, there are six car dealerships and they usually prefers outside car wash services for detailing the cars before it can be taken up for the sale purpose (Gandellini, Pezzi and Venanzi, 2012). Thus, it is an advantageous for the Busy Bee Car Centre to build strong relationship with car dealerships so that many cars can be brought into the car station for hand washing and detailing. Local Businesses: It has been found by the marketer of Busy Bee that there are some local businesses that hold small vans and fleets of cars. Therefore, focus is also on that group as they seek cleaning of their vehicles in order to maintain the image of their business (Nielsen, 2011). Moreover, the local businesses looks for cost effective therefore, Busy Bee will offer them service at reasonable cost so that they visit on regular basis. Options Car Owners New Car Owners 33% Sports Car Owners 12% Older Luxury Car Owners 35% Lifetime Owners 39% Used and New car Dealership 5% Table 2: Market Analysis of Car Owners Figure 2: Market Analysis of Bronte 4. Marketing Plan In order to generate higher benefit from the proposed business, the owner of Busy Bee has to build effective marketing plan. Situation Analysis: SWOT analysis is effective for understanding the current situation. The strength of Busy Bee is there long association with their car service business whereas there weakness is low market share (Nielsen, 2011). On the other hand, Busy Bee has opportunity to serve the people with hand car wash and detailing service in Bronte as such service is very negligible in that area. The possible threats are small business that offers automatic car wash service. Overall, the market of Bronte will be beneficial in gaining targeted customers (Pandey, 2012). Pricing Strategy: Busy Bee has to align the strategy of pricing and positioning in order to gain higher benefit from the market. The price should not be charged too low as it may dissuade the customers and not also too high as customers may not turn up for the service (Liozu and Hinterhuber, 2012). Therefore, the business may need to charge price as per the competitive price so that customer do not feel cheated. Moreover, it can help Busy Bee to position them strongly in the market. Forecasting Sale: The management of Busy Bee has to predict the sale that can be generated from the hand car wash and detail service from Bronte. The forecasting will help in preparing the budget that will be required for financing and arranging personnel that can provide best service to arriving customers (KumarSharma and Sharma, 2012). It has been assumed that Busy Bee will be able to make sale of total $200500 in first year which will gradually improve in next year. Service Year1 Year 2 Year 3 Full Wash 22% 31% 35% Interior Clean 8% 13% 18% Exterior Wash 17% 26% 30% Business Fleet Washes 11% 16% 19% End User Detail 12% 24% 27% Car Dealership Detail 30% 36% 42% Table 3: Sales Forecast in three consecutive years Promotion: On the other hand, in order to reach out to large customer group, Busy Bee has to adopt effective promotion technique. The business can use placing banners and hoardings at different places of Bronte so that most of the customers can become aware about the Busy Bee and its services. This will help in promoting the business and it will also help in increasing sales and generating expected sales and income (Melanthiou, 2012). Engaging Employee: Busy Bee may need to hire people that are capable and efficient enough to provide service of hand car wash and detailing to the customers. The efficient employee will help in growing the business (Furnham, 2012). Therefore, for each service the management of the company can hire different personnel so that quick service can be delivered with quality. Service No. Of Employees Full Wash 5 Interior Clean 3 Exterior Wash 2 Business Fleet Washes 2 End User Detail 3 Car Dealership Detail 6 Table 4: Engagement of Employee with services 5. Management Team and Company Structure It is known that car washing normally considered as seasonal business which has a high peak during the warm summer month. Therefore, Busy Bee Car Centre will be requiring both part time and temporary team for the managing the operations of hand car wash and detailing. Apart from that, company will be focusing on hiring five full time cash wash service and around three detail specialist so that best and quality service can be provided to the customers (Heagney, 2012). On the other hand, the two full time car wash specialists will be hired so that they can monitor the work of other workers so that they can provide assistance and training to improve their performance and service. The car wash specialist provides training to workers on used or old cars so that they may know which corner to clean and which part they should avoid (Hajro, 2012). Apart from that, the company will appoint one administrative assistant that will help and assist the owner of Busy Bee with the paperwork and the a ppointed person will act as a receptionist to provide details to the customers about the services and charges. Figure 3: Company Structure of Busy Bee Car Centre 6. Operation Plan Location: Busy Bee Car Centre will be located at the centre of Bronte so that it can be easily accessed by the customers and they do not find any difficulty. Moreover, the sign board will be placed so that customers can know the location of the company (Lambin and Schuiling, 2012). On the other hand, the building for operation will have the capacity to clean about four cars at one time which will provide quick service to the car owners. Supply and Inventory Management: In order to place all the required resources and equipment for cleaning and detailing the cars, the company has to arrange materials via suppliers so that the business does not fall short. The resources such as water spray gun, speedway car cleaning, car wash pipe, microfiber car duster, etc can be arranged in required quantity by the suppliers (Mackay and Wilmshurst, 2012). Therefore, having strong bonding with suppliers can help company to negotiate. On the other hand, the business may need to remove that entire inventory that is unproductive or that can affect sales. Hiring Efficient Employee: The different worker has to take up assigned role so that work can be aligned. The car washers has to completely involve in washing car only whereas detail specialist has to be involved only in car detailing work in order to provide satisfactory service to customers (McDaniel and Gates, 2012). On the other hand, accountant to be involved in accounting work and administrative staff has to be involved with their part. Therefore, higher productivity can be generated and better working environment can be developed. Set Timelines: The management of Busy Bee has to set time for each group member to clean and wash the car within the specified time. Therefore, for one car time can be fixed to maximum 30 minutes. On the other hand, for detailing part, time can be approx 1 hour if there is no any big issue and if there is then time can be extended. Therefore, it makes the employees to remain focus and concentrate on work for higher productivity (Melanthiou, 2012). Set Performance Indicators: The management many need to set performance indicators so that performance of the employees can be assessed along with overall performance of the Busy Bee. Therefore, for hand car wash and detailing work, the management can allot 15 cars that need to be cleaned by the workers (Mooradian, Matzler and Ring, 2012). On the other hand, fixing monthly sales target will be good indicator to measure the performance of the Busy Bee Car Centre. 7. Product Design and Development Plan Stages Month 1 Month 2 Month 2-3 Month 4 Month 4-5 Month 6 Follow up on press release Press Release Distribution of flyers Commencement for business Hiring of administrative staff Hiring of staff for car wash service Converting Premises Signing of Rental Contract Completion of Business Plan Table 5: Product/Business Design Plan Stages Week 1 Week 2-4 Week 5 Week 5-6 Week 7 Week 8 Idea Generation Idea Screening Concept Development and Testing Market Strategy Development Business Analysis Test Marketing Commercialization Table 6: Product Development Plan 8. Financial Projections 8.1 Profit and Loss Projections Year-by-year profit and loss assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Annual cumulative price (revenue) increase - 2.00% 3.50% 4.00% 6.00% Annual cumulative inflation (expense) increase - 2.00% 3.50% 4.00% 6.00% Interest rate on ending cash balance 0.50% 0.50% 0.50% 0.50% 0.50% Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Gross revenue $2,00,500 $2,04,510 $2,11,668 $2,20,135 $2,33,343 Cost of goods sold 17,300 17,646 18,264 18,994 20,134 Gross margin $1,83,200 $1,86,864 $1,93,404 $2,01,140 $2,13,209 Other revenue [source] $0 $0 $10,000 $0 $0 Interest income $1,000 $0 $0 $0 $0 Total revenue $1,84,200 $1,86,864 $2,03,404 $2,01,140 $2,13,209 Operating expenses Sales and marketing $25,000 $25,500 $26,393 $27,448 $29,095 Payroll and payroll taxes 32,000 $32,640 $33,782 $35,134 $37,242 Depreciation 27,000 30,192 30,636 30,784 31,376 Insurance 23,000 $23,460 $24,281 $25,252 $26,767 Maintenance, repair, and overhaul 10,000 10,710 10,868 10,920 11,130 Utilities 12,000 $12,240 $12,668 $13,175 $13,966 Property taxes 15,000 $15,300 $15,836 $16,469 $17,457 Administrative fees 14,500 $14,790 $15,308 $15,920 $16,875 Other 3,000 $3,060 $3,167 $3,294 $3,491 Total operating expenses $1,61,500 $1,67,892 $1,72,938 $1,78,396 $1,87,400 Operating income $22,700 $18,972 $30,466 $22,744 $25,809 Interest expense on long-term debt 3,433 2,740 2,013 1,250 449 Operating income before other items $19,267 $16,232 $28,453 $21,494 $25,360 Loss (gain) on sale of assets 0 0 1,000 0 0 Other unusual expenses (income) 0 0 0 0 0 Earnings before taxes $19,267 $16,232 $29,453 $21,494 $25,360 Taxes on income 5,780 4,870 8,836 6,448 7,608 Net income (loss) $13,487 $11,362 $20,617 $15,046 $17,752 8.2 Balance Sheet Assets Initial balance Year 1 Year 2 Year 3 Year 4 Year 5 Cash and short-term investments $30,500 $81,142 $1,32,378 $1,69,554 $2,15,367 $2,65,752 Accounts receivable 2,500 2,500 2,500 2,500 2,500 2,500 Total inventory 23,500 23,500 23,500 23,500 23,500 23,500 Prepaid expenses 0 0 0 0 0 0 Deferred income tax 0 0 0 0 0 0 Other current assets 5,000 5,000 5,000 5,000 5,000 5,000 Total current assets $61,500 $1,12,142 $1,63,378 $2,00,554 $2,46,367 $2,96,752 Buildings $78,000 $78,000 $78,000 $78,000 $78,000 $78,000 Land 86,000 86,000 86,000 86,000 86,000 86,000 Capital improvements 0 0 0 0 0 0 Machinery and equipment 70,000 70,000 70,000 70,000 70,000 70,000 Less: Accumulated depreciation expense 0 27,000 57,192 87,828 1,18,612 1,49,988 Net property/equipment $2,34,000 $2,07,000 $1,76,808 $1,46,172 $1,15,388 $84,012 Goodwill $0 $0 $0 $0 $0 $0 Deferred income tax 0 0 0 0 0 0 Long-term investments 0 0 0 0 0 0 Deposits 0 0 0 0 0 0 Other long-term assets 0 0 0 0 0 0 Total assets $2,95,500 $3,19,142 $3,40,186 $3,46,726 $3,61,755 $3,80,764 Liabilities Initial balance Year 1 Year 2 Year 3 Year 4 Year 5 Accounts payable $2,500 $2,500 $3,000 $3,000 $1,500 $1,500 Accrued expenses 0 0 0 0 0 0 Notes payable/short-term debt 0 0 0 0 0 0 Capital leases 0 0 0 0 0 0 Other current liabilities 100 100 100 100 100 100 Total current liabilities $2,600 $2,600 $3,100 $3,100 $1,600 $1,600 Long-term debt from loan payment calculator $63,000 $56,655 $50,310 $35,440 $16,933 $0 Other long-term debt $81,000 $97,500 $1,13,027 $1,14,820 $1,34,810 $1,53,000 Total debt $1,46,600 $1,56,755 $1,66,437 $1,53,360 $1,53,343 $1,54,600 Other liabilities 0 0 0 0 0 0 Total liabilities $65,600 $59,255 $53,410 $38,540 $18,533 $1,600 Equity Initial balance Year 1 Year 2 Year 3 Year 4 Year 5 Owner's equity (common) $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 Paid-in capital 2,50,000 2,50,000 2,50,000 2,50,000 2,50,000 2,50,000 Preferred equity 0 0 0 0 0 0 Retained earnings 0 13,487 24,849 45,466 60,512 78,264 Total equity $3,00,000 $3,13,487 $3,24,849 $3,45,466 $3,60,512 $3,78,264 Total liabilities and equity $3,65,600 $3,72,742 $3,78,259 $3,84,006 $3,79,045 $3,79,864 8.3 Cash Flow Projections Year 1 Year 2 Year 3 Year 4 Year 5 Total Operating activities Net income $13,487 $11,362 $20,617 $15,046 $17,752 $78,264 Depreciation 27,000 30,192 30,636 30,784 31,376 1,49,988 Accounts receivable 0 0 0 0 0 0 Inventories 0 0 0 0 0 0 Accounts payable 0 500 0 -1,500 0 -1,000 Amortization 0 0 0 0 0 0 Other liabilities 0 0 0 0 0 0 Other operating cash flow items 0 0 0 0 0 0 Total operating activities $40,487 $42,054 $51,253 $44,330 $49,128 $2,27,252 Investing activities Capital expenditures $0 $0 $0 $0 $0 $0 Acquisition of business 0 0 0 0 0 0 Sale of fixed assets $0 $0 ($1,000) $0 $0 -1,000 Other investing cash flow items 0 0 0 0 0 0 Total investing activities $0 $0 ($1,000) $0 $0 ($1,000) Financing activities Long-term debt/financing $10,155 $9,182 ($13,077) $1,483 $1,257 $9,000 Preferred stock 0 0 0 0 0 0 Total cash dividends paid 0 0 0 0 0 0 Common stock 0 0 0 0 0 0 Other financing cash flow items 0 0 0 0 0 0 Total financing activities $10,155 $9,182 ($13,077) $1,483 $1,257 $9,000 Cumulative cash flow $50,642 $51,236 $37,176 $45,813 $50,385 $2,35,252 Beginning cash balance $30,500 $81,142 $1,32,378 $1,69,554 $2,15,367 Ending cash balance $81,142 $1,32,378 $1,69,554 $2,15,367 $2,65,752 8.4 Loan Payment Annual interest rate 5.0% Monthly rate 0.41% Loan amount $76,500 Term of loan (months) 60 Payment ($1,439.76) 1 $76,500 ($1,128) ($312) ($1,440) 2 75,372 -1,133 -307 ($1,440) 3 74,239 -1,137 -302 ($1,440) 4 73,102 -1,142 -298 ($1,440) 5 71,960 -1,147 -293 ($1,440) 6 70,813 -1,151 -289 ($1,440) 7 69,662 -1,156 -284 ($1,440) 8 68,506 -1,161 -279 ($1,440) 9 67,346 -1,165 -274 ($1,440) 10 66,180 -1,170 -270 ($1,440) 11 65,010 -1,175 -265 ($1,440) 12 63,835 -1,180 -260 ($1,440) 13 62,655 -1,184 -255 ($1,440) 14 61,471 -1,189 -250 ($1,440) 15 60,282 -1,194 -246 ($1,440) 16 59,087 -1,199 -241 ($1,440) 17 57,888 -1,204 -236 ($1,440) 18 56,685 -1,209 -231 ($1,440) 19 55,476 -1,214 -226 ($1,440) 20 54,262 -1,219 -221 ($1,440) 21 53,043 -1,224 -216 ($1,440) 22 51,820 -1,229 -211 ($1,440) 23 50,591 -1,234 -206 ($1,440) 24 49,357 -1,239 -201 ($1,440) 25 48,119 -1,244 -196 ($1,440) 26 46,875 -1,249 -191 ($1,440) 27 45,626 -1,254 -186 ($1,440) 28 44,372 -1,259 -181 ($1,440) 29 43,113 -1,264 -176 ($1,440) 30 41,849 -1,269 -170 ($1,440) 31 40,580 -1,274 -165 ($1,440) 32 39,305 -1,280 -160 ($1,440) 33 38,026 -1,285 -155 ($1,440) 34 36,741 -1,290 -150 ($1,440) 35 35,451 -1,295 -144 ($1,440) 36 34,156 -1,301 -139 ($1,440) 37 32,855 -1,306 -134 ($1,440) 38 31,549 -1,311 -129 ($1,440) 39 30,238 -1,317 -123 ($1,440) 40 28,921 -1,322 -118 ($1,440) 41 27,599 -1,327 -112 ($1,440) 42 26,272 -1,333 -107 ($1,440) 43 24,939 -1,338 -102 ($1,440) 44 23,601 -1,344 -96 ($1,440) 45 22,258 -1,349 -91 ($1,440) 46 20,908 -1,355 -85 ($1,440) 47 19,554 -1,360 -80 ($1,440) 48 18,194 -1,366 -74 ($1,440) 49 16,828 -1,371 -69 ($1,440) 50 15,457 -1,377 -63 ($1,440) 51 14,080 -1,382 -57 ($1,440) 52 12,698 -1,388 -52 ($1,440) 53 11,310 -1,394 -46 ($1,440) 54 9,916 -1,399 -40 ($1,440) 55 8,517 -1,405 -35 ($1,440) 56 7,112 -1,411 -29 ($1,440) 57 5,701 -1,417 -23 ($1,440) 58 4,284 -1,422 -17 ($1,440) 59 2,862 -1,428 -12 ($1,440) 60 1,434 -1,434 -6 ($1,440) 61 0 0 -0 $0 62 0 0 -0 $0 63 0 0 -0 $0 References Abrams, R. (2010). Successful business plan. Palo Alto, Calif.: The Planning Shop. Bird, P. (2010). Write the perfect business plan. London: Teach Yourself. Boone, L. (2012). Contemporary marketing, 2013 update. [s.l.]: Cengage learning custom p. Brennan, R. and Brennan, R. (2008). Contemporary strategic marketing. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Cones, J. (2010). Business plans for filmmakers. Carbondale: Southern Illinois University Press. Dess, G. (2012). Strategic management. New York: McGraw-Hill/Irwin. Finch, B. (2010). How to write a business plan. London: Kogan Page. Furnham, A. (2012). The engaging manager. New York: Macmillan. Gandellini, G., Pezzi, A. and Venanzi, D. (2012). Strategy for Action - I. Milano: Springer Milan. Hajro, A. (2012). Multinational Teams: How Team Interactions Mediate Between Cultural Differences and Team Performance. Academy of Management Proceedings, 2012(1), pp.1-1. Heagney, J. (2012). Fundamentals of project management. 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Cultural Observation free essay sample

Cultural Observation Culture is the sum total of learned beliefs, values, and customs in which a people of a particular society live. Culture is dynamic and always changing but retains patterns that form its basic infrastructure. Many aspects of a people’s society make up one’s culture including religion, economy, language, politics, etc. Cultures are not finite and in many instances have there own number of sub cultures within them. This variation among cultures brings about man consequences between populations, which can be positive or negative. I have been given the task to use participant observation in order to form a complete report on the daily social interactions of humans in the Saint Louis area. The location I chose is in the middle of a higher learning environment known as a college campus. The area lies in the middle of the campus and has a large structure with a device that measures and tracks time. It is a frequently used path by the students of the campus, which allows for many social observations to be made. As stated earlier the space is a walking highway for students with the most traffic-taking place in the morning at the end of each hour for a period of about ten minutes. The pathway is a large round a bout that circles around the clock tower structure with 4 perpendicular paths continuing off from the circle. I sat on a large concrete staircase that overlooks the circle, for my observations. I sat for one and a half hours observing the following. For the duration of my observation, which began at 11:00am I had many people sitting on the stair case fixture in front of me. At one point there were a total of 23 people sitting on the concrete stairs. These 23 people were paired off in groups of no more than 6. When the time came closer to the end of the hour, there was a dramatic increase in traffic flow around the clock structure. Many of the people walked at a steady pace and seemed to have been walking solo. Some people walked in groups but if it was a group of more than one the majority walked in pairs. As the new hour began the traffic flow dramatically dropped. The make up of the study population varied in many categories. The ages of the people were predominantly that of 18-21 year olds, with occasional middle-aged people and young professionals. During the rush of traffic it seemed to have a larger population of females than males walking through the area. This was also found for the people who chose to sit on the concrete stairs. Of the people who sat down, 15 of them were female and the rest male. During the rush I noticed many different ethnicities that ranged from Caucasian white, to Asian, to Middle Eastern, and African American. Disregarding race, a pattern among the people arose during observation. The females leaned towards wearing more high cost garments than the males did. This related to the observation that many women seemed to be of high economic status in comparison to males. In regards to discernable space I found that females were much more prone to putting minimal space between themselves when interacting. Males seemed to keep a good distance from each other while interacting. For the majority, during the rush of walking traffic, people followed the rule of walking to there right while entering the circle even though this rule was not stated on any sign that I could see. Some people were more aggressive in there walking patterns and people on bicycle contraptions were permitted the right of way in most occasions. Physical interactions were most abundant among females and males who interacted. Males who were walking with a female had less space between them than males who were walking with another male. People sitting on the stairs would occasional engage in physical contact with the highest percentage of outcomes being a laugh following the physical touch. Overall I noticed a pattern that people of the same â€Å"race† for the majority stuck together, giving the impression of subcultures with in the population. Given the location, I concluded that the reason for all the people in the walking rush had the shared commitment of attending classes for learning purposes. For the people who sat down on the stairs it was much harder to find a reason for there public social interaction. The weather was optimal that day which would most likely attract such a leisurely activity response. The population was visually extremely diverse but some common trends were found that differentiated people. The most apparent difference was that of the nature of the people of Asian descent. They more than anyone kept to there own group and clearly spoke a different language than the rest of the population. This could be a barrier between them and the rest of the people who seem to speech the dominant language of the area. From my observations I have been able to determine many things about the population of Saint Louis. More research must be done especially with people of different ages in order to get a more accurate picture of how people in Saint Louis behave but from my observations many patterns stuck out among people from ages 18-21. One of the most puzzling aspects was the wearing of a garment on the top of a person’s head. I could not find a distinct pattern as to what type of people or what situations these head garments were supposed to be for. The only practical usage I came up with was the use of it to keep the sun of their eyes, but many did not use it for this purpose. If it pertains to simply a fashion accessory it would appear to be more common among younger male populations. Another observation was the commonality of wearing t-shirts or other garments that either said Saint Louis University or Saint Louis in some form. From this I have determined that people are proud of the organizations and areas they have some sort of investment in. This also led me to believe that people use their garments to communicate subtly to other people certain information about themselves. A majority of garments worn had some form of there language written on them. Overall more research must be done on the human race to cross-reference these ideas. It is obvious that culture is dynamic and works on several different levels in this complex society of people. Simply observing can tells us many things about there culture but will only get us so far. We must make plans to immerse ourselves in there actual culture to truly get an accurate picture of what it means to be part of Saint Louis, and ultimately, what it means to be human.