Nucor Competitive Strategy Essays

Nucor Competitive Strategy Essays Nucor Competitive Strategy Paper Nucor Competitive Strategy Paper NUCOR COMPETITIVE STRATEGY ANALYSIS CONTENTS 1. Case Profile 2. Situational Analysis 2. 1General External Environment (PESTLE model) 2. 1. 1 Political/Legal 2. 1. 2 Economic 2. 1. 3 Sociocultural 2. 1. 4 Technological 2. 1. 5 Environmental 2. 1. 6 Demographic 2. 1. 7 Global 2. 1 Industry Analysis (Porter 5 Forces) 2. 2. 1 Threat of new entrants 2. 2. 2 Bargaining power of suppliers 2. 2. 3 Bargaining power of buyers 2. 2. 4 Threat of substitute products 2. 2. 5 Intensity of rivalry 2. 3 Competitive Environment Analysis 2. 3. Future objectives 2. 3. 2 Current strategy 2. 3. 3 Assumptions 2. 3. 4 Capabilities 3. Strategic Analysis 3. 1 Strategies 3. 1. 1Operational level 3. 1. 2Business level 3. 1. 3Competitive level 3. 1. 4 Corporate level 4. Core Competencies 4. 1Tangible resources 4. 2Intangible resources 4. 3Capabilities 5. Value Chain 6. Sustainable Competitive Advantage 7. Performance Appraisal 8. SWOT Analysis 8. 1 Strengths 8. 2 Weaknesses 8. 3 Opportuni ties 8. 4 Threats 9. Strategy Formulation and Implementation 9. 1 New Initiatives to Sustain Growth APPENDIX 1: Top-30 producers by International Iron Steel Institute APPENDIX 2: Top Competitors Key Measures: NUCOR APPENDIX 3: FIVE-YEAR FINANCIAL REVIEW FOR NUCOR (2002-2006) Case Study Analysis: NUCOR 1. Case Profile Nucor Corp. , the U. S largest mini-mill operator1 and largest steel manufacturer by tons produced2, continues to lead the industry in efficiency, technological innovation, profitability and delivery of high quality products at low cost structure, after a record of more than 16 years of rapid growth in a declining industry3. And with a strong relationship with its workers without unionization, Nucor’s employees claimed to be the industry’s most satisfied, most motivated and most productive, making them a formidable workforce. This case considers how Nucor has achieved its success and how to sustain it. 2. Situational Analysis 2. 1. General External Environment (PESTLE model4) 2. 1. 1. Political/legal. The steel industry has seen rocky labour relations since the late 19th century with fatalities to striking workers4. Majority of workers are represented by the United Steel Workers of America. Another issue is the integrated steel producers have filed charges against importers of dumping steel prices, blaming them especially Japan, for declining market shares. Nucor’s plant in Hertford County was located on the banks of a fishery that required restoration in a law passed in 1997. 2. 1. 2 Economic. Steel industry is a cyclical business, subject to economic fluctuations since it depended on durable and capital goods (car, building). The industry does well during economic expansion and suffers losses and even bankruptcies during economic downturn. . 1. 3. Sociocultural. The industry became a source of employment, symbolizes American economic power and pride during good times and symbolizes economic decline and source of shame when foreign companies took over market shares5. 2. 1. 4. Technological. Technology drives major changes in the production process to increase flexibility, efficiencies and allowed automation which include the continuous casting technology, blast oxygen furnace and electric arc furnace. 2. 1. 5. Environmental. Nucor’s mill in Crawfordsville, Indianna was alleged to have violated federal and state clean air rules and discharge of 6,720 tons of pollutants into the air each year by U. S. Environmental Protection Agency. 2. 1. 6. Demographic. Mini-mills which are located close to customer base has moved as population of U. S. moved to south and west. Demographic shifts affect the industry since construction utilizes a significant amount of steel. 2. 1. 7. Global. U. S. steel exports were negligible although it had grown to 3% to 5% by the 1990s6. The U. S. teel industry has benefited greatly from the Japanese mill from their large investments in U. S. joint venture projects, new technologies, high productivity and quality product7. Globalization will subject U. S. steel makers to vulnerable changes. 2. 2. Industry Analysis Porter’s Five Forces Analysis 2. 2. 1) Threat of new entrants. For mature integrated steel industry, threat is low due to economies of scale, high capital inje ction, cyclical nature of business and difficult access to supply and distribution; but slightly higher for mini-mill because of lower capital commitment and scale. . 2. 2) Bargaining power of suppliers. For integrated steel makers, they have effectively neutralized the suppliers’ bargaining power by backward integration (steel makers acquiring coal/coke mines and transportation facilities). For mini-mill, their reliability on scrap metal has given supplier moderate to high bargaining power. Higher cost of scrap metal due to limited supply has forced mini-mill to more costly materials like iron carbide. Nucor reduced the bargaining power of steel scrap supplier by backward integration. 8 2. 2. ) Bargaining power of buyers. It is weak to moderate since producers can threaten major distributors and wholesalers with forward integration (taking over direct distribution). But the large buyers (e. g. car makers) have more bargaining power. For example, the U. S. steel producers had to fulfill Japanese automakers’ quality and standards before they were allowed to supply the Japanese auto plants in the U. S. 9 2. 2. 4) Threat of substitute products. The threat is high in applications where strength is a not crucial concern but cost is (e. g. lastic, wood, synthetic materials, fiberglass); low for applications that require strength since substitute materials are just not strong enough10. Also, the many composition steel can be produced reduce the threat. 2. 2. 5) Intensity of rivalry. It is a highly competitive market with high exit barriers since assets are specialized, increase of mini-mill competitors taking on production of steel sheets and other steel products, stagnant demand, many global competitors, commodity-like products that minimizes switching costs and customer loyalty and excess capacity11. 2. 3. Competitive Environment Analysis Nucor has grown to become the largest steelmaker in the US by tonnage2. To have a sustainable market leader position, it must continue to compete for more market share from the large, integrated steelmakers. Although Nucor is the first mover in the mini-mill sector, it must also compete against second movers. 2. 3. 1) Future objectives. Nucor’s primary objective is â€Å"the production of high volumes of quality, low-cost steel. †12 It has an ambitious annual earnings growth of 10-15%. Nucor’s competitors would have the same objective, but unlikely the same high annual growth. Nucor’s competitors will be less risk-taking, giving Nucor a distinct advantage since a risk-aversive approach produces lower returns. 2. 3. 2) Current strategy. Nucor’s strategy is cost leadership. Even if there are changes in the competitive environment, this strategy is preferred since steel is a commodity-like product. While some mini-mill competitors follow a differentiation strategy, most follow a cost leadership strategy, though not very successfully. 2. 3. 3) Assumptions. It is a general assumption for all competitors that cyclical fluctuations are continuous. Nucor’s competitors often looked like operating under a status quo while Nucor has grown to produce sheet-fed steel and stainless steel in its mini-mills, a seemingly impossible task. 2. 3. 4) Capabilities. Nucor’s strengths include highest productivity, lowest cost structure and a high profitability (30 years of continuous profits)13 in the industry and excellent labour-management relations. Nucor’s weakness, comparing to its competitors, is more exposure to short-term losses and temporary setbacks resulting from risk-taking. The large integrated steel producers are comparatively strong in terms of size, established customer base and economies of scale. In terms of tonnage produced, Nucor ranked 8th globally with 20. 3 tons in 2006 (Appendix 1). Nucor could further strengthen its position as it is not far from the world’s 2nd largest steelmaker (Nippon Steel, Japan) of 34. 7 tons. ROE wise (Appendix 2), Nucor is much stronger than its competitors with 29. 38 as compared to Commercial Metals Co’s 22. 63 and U. S Steel’s 17. 79. ROA wise, Nucor is also much stronger than its competitors with 15. 6 as compared to 8. 33 and 7. 13. Nucor is more financially sound than its competitors with a current ratio of 2. 06 as compared to 1. 69 and 1. 59. 3. Strategic Analysis 3. 1 Strategies 3. 1. 1) Operational level. Nucor’s operational level strategy is core process re-engineering. This includes pre-heating the ladles allowing for faster flow of steel into the caster, continuous casters and a processes design that limit work-in-progress inventory, limit space and increase flexibility. . 1. 2) Business level. Nucor’s business level strategy is low cost leadership, keeping with its primary objective of the production of high volumes of quality, low-cost steel. 3. 1. 3) Competitive strategy. Nucor is the industry’s catalyst for technology innovation. It pioneered and took lead of the mini-mill concept, which later produce sheet steel and thin slab stainless steel. Also taking risk with a focus on lon g-term gains (versus short term risks). 3. 1. 4) Corporate level. To achieve its goal, Nucor diversify throughout the steel business. Nucor ventured into traditional bastions of integrated steelmakers (sheet steel, stainless steel), not constrained by the mini-mill format. Nucor has engaged in numerous upstream and downstream diversification. 4. Core Competencies Core competencies are special capabilities that are critical to a business achieving competitive edge. It is harmonizing of diverse production skills integrated with technological development. 19 4. 1) Tangible resources. Nucor’s tangible resources include strong financial resources with a proven ability to generate internal funds and a track profitability record that gives it enormous borrowing power. Organizational resources appear slim without formal planning, coordinating or controlling systems. Physical resources include 8 high-performing mini-mills strategically located to customer base and good access to raw materials with the company’s new iron carbide plant. Nucor has considerable technological resources, mainly involving process. 4. 2) Intangible resources. Many innovative ideas come from its human resources. Human resources include knowledge of the business know-how, motivation to perform and strong worker-management trust and co-operation. . 3) Capabilities. This includes the capability to produce high volumes of quality low-cost steel, innovative technology, continuous process refinement, continuous productivity improvement, motivated workforce, strong corporate culture. Employees are encouraged to take risk and a high tolerance for failure is given. Employees have a sense of ownership, exceedingly loyal and share a common goal of ensuring Nucor’s meets i ts primary objective. These give Nucor a competitive edge that is costly and difficult to imitate17. And the costly duplication suggests that the resource or capability is inelastic in supply, earning the firm who possess it an economic rent. 18 5. Value chain analysis i. Support Activities Firm InfrastructureWith no formal planning or formal mission, possess a strong culture Human Resource ManagementNot unionized, rewards risk-taking, high tolerance for failure, performance based bonus plans, encourage employee suggestions Technology Developmentcontinuous process refinement, continuous improvement, licensing/buying technology ProcurementUpstream diversification, process innovation i. Primary Activities Inbound LogisticsOperationsOutbound LogisticsMarketing SalesService cost focused, coordinated with operational needsEfficient, low cost, high productivity, meeting or exceeding quality requirements, continuous improvementafter-sale support 6. Sustainable Competitive Advantage Sustainable competitive advantage is derived from the trust-based working relationships along with a high to lerance for failure, would allow Nucor to take the risk needed to produce sustainable growth. The source of this trust is in Nucor’s distinctive human resources strategy, which is characterized by informality, ad hoc planning, pay for performance, and employee empowerment. 14 7. Performance Appraisal For the last five years, Nucor’s sales have increased over 240% from $4. 33 billion (2001) to $14. 75 billion (2006). Average sales price per ton has increased 88% from $354 (2001) to $667 (2006). Total tons sold to external customers have increased 81% from 12,237,000 tons (2001) to 22,118,000 tons (2006) (Appendix 3) (Figure 1). This rapid growth has been derived from acquisitions, optimizing existing operations and developing traditional greenfield projects using innovative technologies. Nucor achieved record sales and net earnings in 2006 for the 3rd consecutive year due to historically high selling prices, margins and shipments. Nucor was strengthened as North America’s most diversified steel producer. With this diverse product line, Nucor’s short-term performance which is not dependant on any single market has been able to maintain profitability every year and every quarter since 1966. (Figure 2). Figure 1: Nucor’s Average Sales Price Per Ton Total Tons Sold Figure 2: Nucor’s Diversified Product Mix 8. SWOT Analysis 8. 1. Strengths 1. Strong financial resources (profits, returns) 2. Industry leading low cost structure 3. Motivated workforce 4. Strong corporate culture 5. Innovation resources 6. Trust-based relationships 7. Technological expertise 8. Strong physical resources 9. Strategic management leadership style 8. 2. Weaknesses 1. Vulnerable to losses and setbacks from risk-taking 2. Lack of formal organizational systems may reduce efficiency 3. High tolerance for failure risks potential loss 4. Vague marketing structure or strategy 8. 3. Opportunities 1. Expand into additional specialty products 2. Downstream diversification 3. Directly produce steel from iron carbide, eliminating the need for electric furnaces. 4. Growth and innovation through joint venture projects 5. Maintaining market leadership position 6. Exporting 7. Soaring global steel prices15 8. 4. Threats 1. Substitute products 2. Second mover mini-mill competitors 3. Integrated steelmaker competitors 4. Economic downturn 5. Sub-prime crisis in property industry 6. Globalization with consolidating competitors 7. Global oversupply (China slowed down by December 2004 and became net exporter) 8. A new technology called Finex (by Posco in South Korea) Weaknesses and Threats- Nucor does not have serious weakness but only unused production capacity and a non-differentiated product. Serious threats from foreign competitors (e. g. Acelor Mittal) consolidating could affect Nucor’s growth. Such intense rivalry may also lead to price wars. Weaknesses and Opportunities- With soaring steel prices, expansion and vertical integration would give a better return. Strengths and Threats- Expanding its product line could mitigate the threats from foreign and local competitors, given soaring steel prices will give better return. Consolidate with other steelmakers would make Nucor a bigger player globally. Using its market dominance, Nucor could negotiate with the government for better regulations against the foreign competitors. With its financial and leadership resources, Nucor should secure more backward integration into scrap steel market. Joint venture with Posco (South Korean steelmaker) to leverage new technology. Strengths and Opportunities- Nucor has the financial, human and technological resources to penetrate new market, to expand product range, to compete in the stainless steel market and to joint with Japan to open new market in the Asian region. . Strategy Formulation Implementation Nucor’s current strategy is working. Its unique corporate culture and distinctive human resources strategy which produced a non-substitutable trust-based relationship, give Nucor a sustainable competitive advantage, contrasting the antagonistic relations in the steel industry. This trust enables Nucor to take risk which facilitates its growth. As an engineer from a major integrated mill said upon visiting a Nucor plant, that Nucor’s culture were such that everyone work hard and help each other, collectively survive and meet with success. But theirs is one of aggression, confrontation and lack of trust. 16 9. 1. New Initiatives to Sustain Growth Nucor should further leverage its sustainable competitive advantage by expanding more aggressively, taking the following steps: 1. To build an additional iron carbide plant to increase the availability of low-cost raw materials. 2. To carry out market research to ascertain: a) Expand product line and downstream steel business (e. g. steel for building, bridges, highways, roof decking, flooring); b)Export market; c) Competitors’ current strategies, weaknesses and strengths; d) Joint venture partners and projects ) Expand domestic markets f) Backward integration (e. g. scrap brokerages) 3. To develop strategic marketing program 4. Add an employee stock ownership program to further reinforce employees’ sense of ownership and loyalty. REFERENCES 1. bizjournals. com/charlotte/stories/2008/04/21/daily34. html 2. anbhf. org/laureates/keniversen. htm 3. Johnson, G. Sc holes, K. (2005) Exploring Corporate Strategy: Text and Cases, Prentice Hall, London 4. http://en. wikipedia. org/wiki/U. S. _Steel_Recognition_Strike_of_1901 5. John H. Sheridan, 1996 â€Å"New Era – Or Breather? Industry Week, 5 February, pp 49 6. Brian K. Boyd Steve Gove, â€Å"Nucor Corp. And the U. S. Steel Industry,† In: Strategic Management: Competitiveness and Globalization by Michael A. Hitt, R, Duane Ireland, Robert E. Hoskisson (Cincinnati, OH: South-Western College Publishing, 2001), pp C479 7. Bryan Berry, (1996) â€Å"World Steel: Competing Strategies in Metallics, Melting, and Casting,† Iron Age New Steel, 12(4), April, pp 74. 8. Bryan Berry, (1996) â€Å"World Steel: Competing Strategies in Metallics, Melting, and Casting,† Iron Age New Steel, 12(4), April, pp 76. 9. Bryan Berry, (1996) â€Å"World Steel: Competing Strategies in Metallics, Melting, and Casting,† Iron Age New Steel, 12(4), April, pp 76. 10. Brian K. Boyd Steve Gove, â€Å"Nucor Corp. And the U. S. Steel Industry,† In: Strategic Management: Competitiveness and Globalization by Michael A. Hitt, R, Duane Ireland, Robert E. Hoskisson (Cincinnati, OH: South-Western College Publishing, 2001), p. C483 11. Brian K. Boyd Steve Gove, â€Å"Nucor Corp. And the U. S. Steel Industry,† In: Strategic Management: Competitiveness and Globalization by Michael A. Hitt, R, Duane Ireland, Robert E. Hoskisson (Cincinnati, OH: South-Western College Publishing, 2001), p. C480 12. Brian K. Boyd Steve Gove, â€Å"Nucor Corp. And the U. S. Steel Industry,† In: Strategic Management: Competitiveness and Globalization by Michael A. Hitt, R, Duane Ireland, Robert E. Hoskisson (Cincinnati, OH: South-Western College Publishing, 2001), p. C498 13. Brian K. Boyd Steve Gove, â€Å"Nucor Corp. And the U. S. Steel Industry,† In: Strategic Management: Competitiveness and Globalization by Michael A. Hitt, R, Duane Ireland, Robert E. Hoskisson (Cincinnati, OH: South-Western College Publishing, 2001), p. C477-C507 14. Ted Kuster (1995) â€Å"How Nucor Crawfordsville Works,† Iron Age New Steel, 11(12), December, pp 36-47 15. usatoday. com/money/autos/2004-10-13-steel-prices_x. htm taipeitimes. com/News/worldbiz/archives/2004/03/26/2003107844 16. Bryan Berry (1996) â€Å"The Importance of Nucor,† Iron Age New Steel, 12(7), July, pp 2. 17. Barney, J. B. (1997) Gaining and Sustaining Competitive Advantage, Wesley Publishing, Addison 18. McTaggart, D and Findlay, C and Parkin, M (2006) Economic, Wesley Publishing, Addison 19. Prahalad, C. K. and Hamel G (1990) The Core Competence of the Corporation, Harvard Business Review, Mar, 1979 APPENDIX 1: Top-30 producers by International Iron Steel Institute MtonSteelmaker 1117. 2ArcelorMittal (Global) 234. 7Nippon Steel (Japan) 332. 0JFE (Japan) 430. 1POSCO (South Korea) 528. 2Tata Steel (India) Including Corus Group 622. 5Shanghai Baosteel Group Corporation (China) 721. 2United States Steel Corporation (United States) 820. 3Nucor Corporation (United States) 919. 1Tangshan (China) 1018. 2Gruppo Riva (Italy) 1117. 5Severstal (Russia) 1216. 8ThyssenKrupp (Germany) 1316. 1EvrazHolding (Russia) 1415. 6Gerdau (Brazil) 1515. 3Anshan (China) 1614. 6Shagang Group (China) 1714. 6Steel Authority of India Limited (India) 813. 8Wuhan Iron and Steel (China) 1913. 6Sumitomo Metal Industries (Japan) 2012. 8Techint (Argentina) 2112. 5Magnitogorsk Iron and Steel Works (Russia) 2211. 5Jinan (China) 2310. 9Magang Group (China) 2410. 8Laiwu Steel (China) 2510. 7China Steel (Taiwan) 2610. 5Shougang (China) 279. 9Valin Steel Group (China) 289. 8Imidro (Iran) 299. 5Industrial Union of Donbas (Ukraine) 309. 1Novolipetsk (Russia) Source: http://en. wikipedia. org/wiki/List_of_steel_producers This is a list of the largest steel-producing companies in the world according to the International Iron and Steel Institute. The list is compiled from its page Top Steel Producers 2006, but updated below from other sources. (Output in million metric tons crude steel; the country/region of producers basing specified in brackets) Total world steel output in 2005: 1,131. 8 million metric tons (mmt) Total world steel output in 2006: 1,239. 5 million metric tons (mmt) APPENDIX 2: NUCOR’S TOP COMPETITORS KEY MEASURES NUCORCOMERCIAL METALS CO U. S. STEEL- VALUATION PRICE/EARNINGS (TTM)11. 9910. 5616. 34- PRICE/CASH FLOW9. 9610. 7617. 40- PRICE/SALES (TTM)1. 060. 430. 85- PRICE/BOOK3. 672. 222. 59- PER SHARE DATA LAST DIVIDEND36. 4719. 512. 71- BOOK VALUE18. 7714. 2948. 33- EPS (TTM)5. 092. 277. 08- REVENUE16. 59 B8. 32 B16. 87 B- PROFITABILITY EBIDTA3. 02 B684. 52 M1. 72 B- OPERATING MARGIN15. 38%6. 93%6. 79%- PROFIT MARGIN8. 87%4. 27%5. 21%- GROSS PROFIT MARGIN18. 86%13. 94%10. 28%- DIVIDEND DIVIDEND YIELD2. 77%1. 26%0. 55%- PAYOUT RATIO36. 4719. 6512. 71- ANNUAL DIVIDEND (TTM)176. 5 M- - - DIVIDEND YIELD 5 YEAR AVERAGE3. 17%0. 90%0. 66%- GROWTH NET INCOME1. 47 B355. 43 M879 M- EPS (TTM)5. 09%2. 27%7. 08%- REVENUE16. 59 B8. 32 B16. 87 B- PEG1. 24%1. 58%0. 71%- FINANCIAL STRENGTH QUICK RATIO (MRQ)8. 874. 275. 21- CURRENT RATIO (MRQ)2. 61. 691. 59- LT DEBT TO EQUITY RATIO (MRQ)45. 9239. 0854. 38- TOTAL DEBT TO CAPITAL (MRQ)29. 6231. 4437. 07- ROE29. 3822. 6317. 79- ROA15. 608. 337. 13- ROIC (RETURN ON INVESTED CAPITAL)22. 0419. 0213. 41- ASSETS ASSET TURNOVER1. 692. 401. 08- ASSET PER EMPLOYEE545,895. 66667272,793. 63708557,714. 28571- INVENTORY TURNOVER9. 518. 637. 54 SOURCE: HTTP://FINANCE. AOL. COM/COMPANY/NUCOR-CORPORATION/NUE/NYS/TOP-COMPETITORS APPENDIX 3: FIVE-YEAR FINANCIAL REVIEW FOR NUCOR (2002-2006) FOR THE YEAR20062005200420032002 Net sales14,751,27012,700,99911,376,8286,265,8234,801,777 Costs, expenses and other: Cost of products sold11,284,60610,108,8059,174,6115,993,4924,335,409 Marketing, administrative and other expenses592,473459,460374,730165,369175,589 Interest (income) expense, net(37,365 4,20122,35224,62714,286 Minority interests219,121110,65080,84023,90479,408 Other income- (9,200 (1,596 (11,547 (29,900 12,058,83510,673,9169,650,9376,195,8454,574,792 Earnings before income taxes2,692,4352,027,0831,725,89169,978226,985 Provision for income taxes935,653709,834607,9065,18166,899 Net earnings1,756,7821,317,2491,117,98564,797160,086 Net earnings per share: Basic (1)5. 734. 193. 530. 210. 51 Diluted (1)5. 684. 153. 00. 210. 51 Dividends declared per share (1)2. 150. 930. 240. 200. 19 Percentage of net earnings to net sales11. 9 10. 4 9. 8 1. 0 3. 3 Return on average equity38. 3 33. 8 38. 2 2. 7 7. 0 Capital expenditures338,404331,466285,925215,408243,598 Depreciation363,936375,054383,305364,112307,101 Sales per employee1,2731,1591,107637528 AT YEAR END Current assets4,683,0654,081,6113,1 82,1321,639,7841,429,305 Current liabilities1,421,9171,228,6181,042,776615,067573,697 Working capital3,261,1482,852,9932,139,3561,024,717855,608 Cash provided by operating activities2,251,2332,136,6151,024,756493,801497,220 Current ratio3. 3. 33. 12. 72. 5 Property, plant and equipment, net2,856,4152,855,7172,818,3072,817,1352,932,058 Total assets7,893,0187,148,8456,140,3914,511,5774,394,944 Long-term debt922,300923,550923,550903,550894,550 Percentage of debt to capital15. 3 17. 0 20. 2 26. 1 25. 8 Stockholders’ equity4,857,3514,312,0493,481,2812,370,8732,349,770 Per share16. 1413. 9010. 917. 547. 51 Shares outstanding300,949310,220319,024314,361312,720 Employees11,90011,30010,6009,9009,800 Source: secinfo. com/d14D5a. u7c82. c. htm#1stPage

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BizCafe Business Case Coursework Example | Topics and Well Written Essays - 1250 words

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Critical Response Teen Magazines A Critical Analysis English Language Essay

Critical Response Teen Magazines A Critical Analysis English Language Essay Magazines aimed at the young teenage women market may give the impression of being a girls best friend. Of course, like everything, they have their strengths and weaknesses but do the strengths outweigh the weaknesses? It seems more likely for the negative effects of teenage magazines to be more prominent than the positive effects but is this really the case? This response reviews the way teenage magazines address issues relevant to young women today, especially from the point of view of promoting healthy body image, safe sex and leading social justice issues. All these aspects are emphasised by techniques used in the composition of these magazines with article structure, visual collages and informal language being the most common. Are the issues they cover and the extent to which they cover them appropriate for their readers? Teenage magazines, such as Dolly and Girlfriend, are often the first place teenagers turn when they have a problem and that is when segments like Dolly Doctor  [1]  are most commonly used. This reinforces the need for the magazines content to be appropriate for their readers; however, this is not always possible. Magazines, such as Cleo and Cosmopolitan, are in a difficult position; whilst they are aimed at the young adult market, 18 to 35-year-old women, a large proportion of their readers are between the age o f 14 and 17. As reported in the respective magazines readership profiles, 35.16 per cent of Cosmopolitan readers  [2]  are aged between 14 and 17 and 29.11 per cent of Cleo readers.  [3]  How does this effect the teens who read these magazines? It appears that these effects are positive, such as encouraging their readers to exercise, as well as negative, for instance lowering their self-esteem. Why are teenage magazines so popular? Issues facing teenagers Teenage magazines play an important role in the average female teenagers life. They provide a wide range of information, from social issues such as smoking and drinking, to issues of a less important nature, such as what to wear to the formal, or how to talk to boys.  [4]  It is, therefore, important that they address the relevant issues teenagers face in society today. One of the biggest issues addressed in teenage magazines is sex, and more importantly, safe sex. The impression you acquire when you pick up a teenage magazine is that they assume that if girls are not sex savvy then they want to be.  [5]   One teenage reader asked the question concerning Chik  [6]  magazine: wheres all the sex stories?  [7]  This simple question supports the theory that teenage magazines are not necessarily successful for the correct reasons. Amongst some groups in society, such as the Christian churches, such articles are often perceived as immoral. It also makes these acts seem more common in society, which is not necessarily true. In fact, 80 percent of 16 year-olds have not had sexual intercourse but by the age of 18 theres a 50 per cent probability that they have.  [8]  Being a virgin is generally criticised by other teenagers. Despite the fact that magazines promote safe sex, research has shown that safe sex does not exist unless two virgins are having sex for the first time and remain with each other for life.  [9]   On the other hand, these magazines run articles on what their readers want to know. If Dolly magazine receive a letter asking for help about not wanting to have sex, they will run an article about abstinence. Or if they receive a letter about date rape, they will run an article about date rape and what to do about it. In the same respect, if a reader asks Dolly, what is masturbation? they will respond with an appropriate article.  [10]   There seems to be a common perception that reading teenage magazines has contributed heavily to readers low self-esteem. As a result of this perception, today teenage magazines seek to promote a health body image. Dolly magazine has a specific section in every issue called the Body Confidence Club  [11]  that is dedicated to motivating teenagers to be content with their body. This ranges from advice on exercising and meditation to healthy eating. Often it will include real-life stories to help teenagers to believe if it worked for them, it can work for me! The deputy editor of Dolly magazine said: We never publish diets or ever say that a girl should lose weight, its only ever about toning up if thats what you want to feel better about yourself.  [12]   The Body Confidence Club is a reader forum where Dolly talks about a body issue and does it in a way that is inspirational. Stories will reflect the problem and show solutions, stimulating teenagers to think that they can change too. Publishing articles on healthy body image next to fashion spreads glorifying all that is tall and skinny  [13]  can have a negative effect. What girls need to remember is that Marilyn Monroe was a size 14 and she was still considered beautiful.  [14]   Even Cosmopolitan has dealt with the issue of body image, introducing the Body Love Initiative in October 2001. This policy states that Cosmopolitan will use models from size 6 to size 16 in every issue, as well as all races. Alongside the models, Cosmopolitan will not publish a diet and has not done so for around seven years. They also ensure that their advertisers do not place unnecessary emphasis on the need to be skinny and consistently publish articles to help readers feel more confident and love the skin they are in. These guidelines were put into place after readers became outraged over a photo shoot, Lingerie Gets Real, featuring women in their underwear.  [15]  Cosmopolitans philosophy is: Healthy eating, healthy body image but being within your healthy body weight range all about feeling good in your own skin.  [16]   Another issue addressed by these magazines concerns popularity amongst peers. This is an important issue in the minds of teenagers, especially in the school environment. The common perception that you have to be cool to obtain the attention of a boy increases the pressure of becoming popular. To quash this assumption Dolly magazine focuses on the fact that popularity is not as important as being confident. Therefore they run stories about how to talk to people, both boys and girls, and how to be more confident in different situations.  [17]  However, confidence is just one part of it. If a teenager does not feel popular she is less likely to be confident. So it is important to address popularity as an issue of concern. Mental health and wellbeing are important issues to address for teenagers. They need to gain understanding of the causes, occurrences and management of these disorders. Without this knowledge there are often misconceptions about disorders such as schizophrenia and depression. Suicide, bipolar disorder, anxiety disorders and self-harm are all common topics of discussion in Dolly magazine because of the many letters received requesting information about certain mental illnesses. The deputy editor of Dolly states that: In all of those stories we do talk to experts about the issue and get information that the girls can use.  [18]   Cosmopolitan, on the other hand, always runs feel-good articles in the magazine each month to help their readers overcome their own anxiety and stress  [19]  but they do not run articles to increase the awareness of mental illnesses. Illnesses such as schizophrenia and bipolar disorder are rarely mentioned in Cosmopolitan. Physical impairment is another issue that needs to be dealt with. This is to ensure that teenagers acknowledge that people with physical impairments are not different. Dolly often publishes articles on the life story of someone with a physical impairment to show the readers that despite this impairment and the obstacles in their life they still live normally and they are like any other person. However, Cosmopolitan and Cleo fail to cover issues about physical impairment. How magazines are composed How do magazines persuade people to read so many articles and view the visual images constructed in each monthly issue? This is achieved through the language and visual techniques that are used and accentuated to capture the attention of the reader. These include structure, interviews, language features, pull-quotes, rhetorical questions and visual texts. Firstly, the structure of most feature articles is changing. They are beginning to be separated by many sub-headings. By using sub-headings it allows the reader to go straight to the part of the article they are particularly interested in. For example in the Dolly article, The Rise of the Straight Edgers,  [20]  if a person knew what a Straight Edger is, but was wondering where the name came from they can go to the sub-section, Whats with the name?  [21]  Or if they wanted to find out more, they are directed to the section, Wanna know more?  [22]  This means that a person can get what they want out of the article quickly without having to read the entire article. The types of articles also vary from stories, interviews and notes. Stories are effective in entertaining as well as informing. The investigation into the statistic that 1 in 5 women will experience violence during pregnancy  [23]  is informing the reader about the risks of violence during pregnancy as well as telling the stories of women who lost their lives at the hand of the father of their unborn child. The use of interviews creates the impression that the reader is communicating with the interviewee, and not reading it second hand. An interview, such as Tammin Sursoks subtitled, The first time I ,  [24]  gives the reader the feeling of having a conversation with your best friend about the first time you kissed a boy had sex fell in love à ¢Ã¢â€š ¬Ã‚ ¦Ã‚  [25]  This creates the effect that the reader is getting to know the celebrity personally, instead of just reading a magazine interview. The use of first person also emphasizes this in the mind of the reader. This approach is taken in most interviews in magazines in an attempt to personalize the article for the reader. Notes allow the reader to go straight to short bits of information. In Rags to Riches  [26]  the reader can quickly obtain small pieces of fact from the spreadsheet of information. These text formats allow different readers to access the information that is of specific interest to them. The language used amongst teenage magazines is informal, conversational and full of jargon and slang. This is because these magazines try to speak to the reader, not speak at them. You could imagine that if one of these magazines happened to use formal language it would appear as though the magazine is a text book and very serious. Informal language creates a much more carefree approach to topics of discussion positioning the reader to relate more easily. For example, if this sentence: When you look at Jade, she strikes you as just another spunky chick, in miniature  [27]   was written formally it would say something along the lines of: Upon viewing Jade, your first impression of her would be, a short but fashionable woman. Instead, using informal language helps to keep the teenagers interested and they are more likely to read and understand what is being said. It also fits in with each magazines philosophy  [28]   to be the readers friend and adviser. Jargon and slang reaches the teenagers on their level. In this particular sentence slang is adopted strongly and still manages to communicate its message: You probably heard Paris [Hilton] threw a tanti when she saw her porn vid being sold by her local newsstand owner  [29]   Words such as tanti and vid are slang for tantrum and video. The purpose of this language is to relate to the teens by communicating to them using their own jargon. Emotive language is used to create a response in the reader and is present in sections like Dolly Doctor  [30]  and Sex, Body and Friends Advice  [31]  . Its intention is to convey the message that the writers at each magazine truly care about the issues people are asking about and they offer genuine advice to help their reader. When Girlfriend Advice was questioned about bullying, their response was: All of us here at GF [Girlfriend] feel very strongly that you have a right to feel totally safe at school.  [32]   The expression of concern for the girl being bullied helps the girl to believe that they really care. Dolly magazine also does the same thing. When Dolly counsellor, Louise Redmond, was asked about whether there is something wrong with a girl who keeps being excluded from her friendship groups plans she responds: Theres absolutely nothing wrong with you! Hard as it is, dont take it personally.  [33]   As a result of this expression of kindness and concern the person asking the question then feels compelled to follow the advice handed out to them by the magazine. The use of second person addresses the reader. Its inclusiveness embraces each readers concerns. Pull-quotes are used within articles to compel you to read an article. A pull-quote is a quote from the article that is selected and highlighted amongst the text in a different coloured and larger sized font. This device is used to draw the readers eye to the page. The quote is chosen on its strength and whether or not it is interesting, funny, exciting or riveting.  [34]  For example, in the article titled, Im a teenage mum of three,  [35]  the pull-quote, All of my friends lost their virginity before me, but I wanted to wait until I felt ready to have a baby  [36]   interests the reader into reading the article to find out why this teenager has three children by the age of seventeen. This is effective in attracting interest and attention to the article. However, other pull-quotes can seem completely irrelevant to the story. For example, an article titled My parents are both blind  [37]  with a pull quote: If someones playing kickball I run off coz Im scared about it hitting me  [38]   This pull-quote seems completely out of context, however, by causing confusion about the article teenagers are more likely to read the article. If only to find out how that pull-quote relates to an article about something perceivably different. Rhetorical questions invoke thought about the issue being addressed. If the issue is not a well-known topic questions such as: Does he love it? Hate it?  [39]   strategically placed at the beginning of the article encourages readers to engage in reading and contemplating the article. The composers of the magazines have, therefore, reached its purpose to persuade people to read their publications. Emphasised questions help to make the reader focus on what an article is addressing. The majority of the questions asked are answered within the body of the article. What can you do to stop the symptoms?  [40]   is answered, Learn new and better ways to deal with stress. Eat a varied diet and avoid foods that have a high fat content  [41]   This allows the reader to gain closure on the topic of discussion. If you were to pick up the latest Dolly magazine to find that there were no pictures at all, what would you think? Without images these magazines would have no appeal, people would just walk straight past them in a shop. The problem begins at the appropriateness of these visual images. Often an article would not survive without images or be overlooked if it was not for the suggestive images surrounding the text. The most prominent visual technique is a collage, especially on the front cover. It is the most effective way of putting a lot of information into a small space. A collage is used in Dollys Style section  [42]  and presents to the reader four celebrities, their fashion style, and the clothing articles and accessories they can obtain to achieve the same fashion style. Some articles, such as How Old Is She?  [43]  , could not exist without pictures. How do you demonstrate that a person looks young or old for their actual age without images? These pictures, however, seize the readers attention and intrigue them to find out how old these girls really are. Other pictures are used to tease the reader into reading the article. Images such as the one in Great Places To Kiss  [44]  catches the readers eye and provokes them to read the article. Even the image for the article Stop Texting Me!  [45]  provokes the reader. They see a girl with a mobile phone and quickly examine the article to see if it is of any interest to them. In Cosmopolitans fashion workshop  [46]  visual images are essential to explain why you should not wear certain types of underwear for different body shapes. However, Cosmopolitan has taken some poetic licence. In the images showing the reader what not to wear they place the model in an unflattering pose and appearing self-conscious. This creates the effect that it is not something the reader would want to wear. Of course, when the model is wearing what ultimately looks better she appears to be happy and confident, posing with a smile. A recurring way of presenting photos is in the notice board style. Each photo has a thick white border and a paper clip or thumb-tack in the corner, giving the effect that the photos are up on a notice board, attached to a personal profile or even part of a personal notebook.  [47]  Personalising these photos involves the reader in the magazine and creates a carefree atmosphere. Consequently, the combination of these techniques makes a teenage magazine intriguing to the reader. This results from being positioned by the composer in a location easily accessible to read or view the text. By making these magazines intriguing and easily accessible allows the magazines to sell many copies of each monthly issue. Magazines and Appropriateness Many people tend to focus on the negative aspects of what teenagers are reading in magazines. Christopher Bantick, The Age journalist, wrote: Besides the heavy emphasis on sex and problematic sex at that teenage girls magazines capitalize on adolescent insecurity.  [48]   Although this is accurate, Bantick could be optimistic and, instead of reinforcing common beliefs about magazines, he could address the fact that these magazines do aim to reach out to teenagers at their level and help them with their insecurities, whether that would be about sexual intercourse or not. Magazines have implemented sections within the magazines where their readers can write in to ask for advice  [49]  about something they feel uncomfortable asking their parents or even their friends. Many parents do not like what their daughters are reading in these teenage magazines, as evident by the Your Say section of The Age,  [50]  but many more are actually dejected that their daughters are growing up too fast and interested in such topics of discussion. Articles regarding Sex Exotica  [51]  would seem inappropriate for a 14-year-old female to be reading. Such an article may be appropriate for Cosmopolitans market audience, 18 to 35 year olds. However, the editors should take into account that a large percentage of the readers, 35.16 per cent  [52]  to be exact, are aged between 14 and 17. However, if Cleo and Cosmopolitan were to change their content to suit the younger readers than they may lose readers and they would not be aimed at the 18 to 35 year old market any longer. It seems, with these two magazines in particular, they are mostly focused on topics such as sexual intercourse. Parents feel these magazines are not appropriate because of a perceived breach of moral standards. Cosmopolitans morals were questioned when a monthly issue was on sale in a Woolworths store. They received many complaints about a headline regarding a guide to a mind-blowing blow-job.  [53]  Cosmopolitan were forced to place stickers over this headline as it was inappropriate for the consumers in a supermarket. Many critics consider it inappropriate for young teenagers to be reading material such as that in Cosmopolitan and Cleo, and it is just as inappropriate for pre-teenagers to be reading Dolly or Girlfriend with the content they represent. Magazines have the potential to influence young minds about what is acceptable and unacceptable in society as well as altering their way of thinking about sexual intercourse and gender roles. There are other reasons why teenage magazines appeal to a young audience. Firstly, there are the striking colours, secondly, the famous boy or girl splashed across the cover page and thirdly, the desire to be cooler and mature for their age. These magazines reveal little about the value of academic achievement and intellectual challenges. It is fair to say that the brain is not the hot organ at the centre of the teenage magazine world. This lack of concern about formal education is reflected in Dolly and Girlfriend with less than 20 per cent  [54]  of articles focused on education and/or intelligence. Only Cosmopolitan and Cleo frequently publish articles about careers. However, of the articles published in each magazine, less than 5 per cent  [55]  of the articles are based on careers. The effects of these magazines Teenage magazines can affect teenagers in many ways, both positively and negatively. However because people tend to focus on the negatives it appears as though most of these effects are, in fact, negative. A study by the British Medical Association  [56]  has shown that: The media are a significant and pervasive influence in modern society, and provide information about gender roles, fashion and acceptable body image which may be particularly influential on those young children and adolescents who are heavily exposed to its content  [57]   And: Young women may compare themselves to extremely thin models à ¢Ã¢â€š ¬Ã‚ ¦ and perceive themselves as fat in comparison, rather than healthy and attractive  [58]   This sort of influence on an already insecure teenager could result in social and psychological problems. These include eating disorders such as anorexia nervosa and bulimia nervosa, anxiety problems, depression and low self-esteem in susceptible personalities. Such problems are not healthy for the individual and restrict their quality of life. These problems, especially anxiety and low self-esteem, may arise from viewing the cover of any teenage magazine. This visual imagery may cause teenagers to feel insecure about their own body image, out of touch with the latest trends and even confused. Positioned on the cover of Dolly  [59]  magazine, April 2005, is an image of singer, Jessica Simpson, who is thin, toned, tanned, blonde, beautiful and in public view is her tight stomach and ample bust. For any girl who is not one hundred per cent comfortable with her outward appearance that image can be disheartening and depressing. Those who do not recognise the name or face of the latest guys youd sell your best friend for  [60]  can feel as though they are not up with the latest gossip or workings of, so to speak, girl-world. Those who do not understand the headline Stuck in Bloat Town?  [61]  can become confused even before opening the magazine. All of these thoughts and feelings occur before the person has even open ed the magazine. Once the magazine is opened, however, the feelings may continue or cease, it all depends on what part of the magazine the reader focuses on. The advertisements tend to send a completely different message than the articles they are placed next to and results in vulnerable teenage girls feeling uncertain about what message the magazine is trying to send. This mainly occurs when an article about healthy body image is placed next to image displaying a perceivably flawless, thin model.  [62]   Another impact on teenagers is caused by the fashions that models are seen wearing in magazines. These fashions influence the readers preferences. Teenagers will believe that if they wear that brand of clothing and that style of clothing they will look better and impress. This is not always the case, the clothes in magazines are often suggestive and send the wrong message. It could be interpreted that shes asking for trouble and a rebel when she is only following trends being fed by the magazines. Males can also be affected by these magazines, as well as females. It is a widely known fact that these images misrepresent the ideal body image for females but: There is growing awareness regarding the pressure men and boys are under to appear muscular.  

Direct and Indirect Cash Flow Essay

(According to â€Å"According to â€Å"What Is The Difference Between The Direct Method And The Indirect Method For The Statement Of Cash Flows?† (2004-2014),) â€Å"The main difference between the direct method and the indirect method involves the cash flows from operating activities, the first section of the statement of cash flows. (There is no difference in the cash flows reported in the investing and financing activities sections.) Under the direct method, the cash flows from operating activities will include the amounts for lines such as cash from customers and cash paid to suppliers. In contrast, the indirect method will show net income followed by the adjustments needed to convert the total net income to the cash amount from operating activities. The direct method must also provide a reconciliation of net income to the cash provided by operating activities. This is done automatically under the indirect method. Nearly all corporations prepare the statement of cash flows using the indirect method.† The reason for financial accounting standards board allows both methods are simple. Both statements of cash flow preparation methods are allowable under basic accounting standards. â€Å"The Financial Accounting Standards Board, however, prefers the direct method for the statement of cash flows. FASB prefers the method because business stakeholders find the statement easier to read than the indirect statement of cash flows. Companies prefer the indirect method as it is easier to prepare since the financial information is already at hand. Companies can include disclosures with either the direct or indirect statement of cash flows. These disclosures can detail any non-cash financing and investing activities. FASB often requires disclosures with the statement of cash flows. Companies can prepare a secondary statement noting any significant non-cash activities for stakeholders† (â€Å"Direct Vs. Indirect Cash Flow Method†, 1999-2014). References What is the difference between the direct method and the indirect method for the statement of cash flows? (2004-2014). Retrieved from http://www.accountingcoach.com Direct vs. Indirect Cash Flow Method. (1999-2014). Retrieved from http://www.ehow.com

The Chronicles of Extremely Loud and Incredibly Close Essay Topics

The Chronicles of Extremely Loud and Incredibly Close Essay Topics Extremely Loud and Incredibly Close Essay Topics Secrets EXTREMELY LOUD AND INCREDIBLY CLOSE is a really strong movie. However, Extremely Loud must expect to make the majority of its money in america, and there it has proved something under a smash. EXTREMELY LOUD AND INCREDIBLY CLOSE is just one of the greatest movies ever. Devotees the sort of people that you would find writing fan fiction may be considered eccentric by the remainder of the viewer base. Works referred to enter a vegan. After she refused his request, he took an image of the rear of her head, and left. Well, I believe the reply could possibly be embarrassingly straightforward. Even if people's trauma is due to different events there'll be a connection between these folks. There is really a minimal threshold for tolerance for individuals with this disability. I chose to teach this issue by group work to ease the exchange of experiences without the danger to be exposed before the class. Despite the fact that the supporter is confronted with a loss and is searching for closing. But John was a legitimate professional. Business finance planning program. Indoor tennis business program. This disjointed writing indicates that she's suffering from been stuck in a location with no chance of transition. Closely related to the experience of death is the idea of loss. There are many unique techniques to die, and I only will need to understand which was his. The way by which each character confronts that grief functions as a benchmark by which to gauge the others. Production occurred in nyc. Moreover, the two of the books utilize the theme of death, loss and forgiveness to come up with their characters. This isn't an instance of the work generated by our Essay Writing Service. Short stories are too often neglected when it has to do with literature. Summary The story opens with a succession of thoughts. Aside from the typical loss they portion. If this brief synopsis already makes you truly feel somewhat queasy, the full book will probably make you quite ill indeed. I want to remove this section. Many renowned experts claim that death is just one of the main themes of Hamlet. And this isn't the close of the story yet. I believe the automated accolades need a little distance and historical context to occur. Atonement is internally focalized with this terrific selection of form concerning perspectivesaAtonement delivers extraordinary many facets of multi-perspectival narration. Citations and extracts from several sources have to be formatted properly. Correspondence Correspondence, particularly in the sort of letter-writing, has a distinctive place in the book. Automatically formats, desperate free of charge. And then there's the tambourine. It's a superb motion picture. Military now the notion of polyurethane manufacturer argonics inc.. She does non desire to trust about anything. All of them have a sense of emptiness inside them. She doesn't want to consider about anything, she's afflicted by loss and emptiness inside. The Number One Question You Must Ask for Extremely Loud and Incredibly Close Essay Topics Because of this he is extremely believable. They should be listened to. However, it was also incredibly straightforward. It may still be a bit alarming, he states. And don't forget, too cheap doesn't always mean good! Grandmother would look for non to trust. Grandma and Thomas Sr. arrange their marriage so they don't have interact with one another unless they would like to. He has a more difficult struggle with the concept of love. Oskar's mother is more difficult to understand. In addition, Oskar is a somewhat intelligent kid and knows the way to avoid getting caught or getting into trouble. Oskar is refusing to forego his dad due to his emotional attachment to his father. Oskar invents many distinctive things.