Calorie Intake

My calorie intake for the three days isn't appropriate. I documented each item I ate, surprisingly it wasn't as high as I imagined it to be. I thought it would be a lot higher because I don't watch what I eat Eke I should. My calorie intake should be about 2000 and it was around 2869 on day 1. Even though I went over 869 calories each calorie can affect the body. Calories will affect weight, health, and energy levels. If a person eats more than they burn they gain weight. Same If someone burns more than they eat they will lose wait.Just as If someone eats as much as they burn then they eat the weight will remain the same. If someone calorie intakes too low it may cause reduced muscle mass (Calorie Explained). If there are no food energy sources to keep the vital organs functioning it uses the muscle mass for energy, so it will make the person feel sluggish and tired. A high calorie diet puts stress on the body. It can increase the risk of diabetes, heart disease, and length of life. As I mentioned earlier about muscle mass the body mass Index or IBM allows anyone to figure out their body mass according to their weight and height (Merriam Webster).My IBM is 17. 5(Calculate Body Mass index). It is considered underweight, but I am still healthy a small frame runs in my family. However if it wasn't hereditary I would try to find way to boost my IBM to a normal range of 18. 5. B. The DIR for each nutrient over the three days that I record what I ate†¦.. The DIR for carbohydrates was 130, It was being 75 and 300 percent. The DIR for fiber was 25, and was between 75 and 300 percent. Linoleum Acids DIR was 12 and It was less than 75%. To increase my DIR I would try to eat chicken or pizza. Cholesterol was 30 and the percent was less than 75%.TO increase cholesterol DIR I would try and eat more eggs or sausage. Calcium is 1000 and it was between 75 and 300 percent. Sodium was 1500 and less than 75%. To help increase my sodium intake I would try to eat bacon In the morning or cheese as a snack. Copper Is 900 and between 75 and 300 percent. Iron DIR Is 18 and was between 75 and 300%. Magnesium Is 310 and between 75-300%. Selenium Is 55 and less than 75%. To Increase selenium I could eat more whole grains or eat more fish. Zinc is 8 and less than 75%. To help increase zinc I could eat more spinach or prop. Vitamin A is 700 and between 75-300%. 6 is 1. And less than 75%. 812 is 2. 4 is less than 75%. Eating bananas or lean pork would help increase 8†³Ã¢â‚¬Ëœ DIR. Vitamin C Is 75 is less than 75%. I could try to eat more strawberries and oranges to raise Valiant C DIR. Vitamin D Is 25 and between 75 and 300%. Vitamin E Is 15 and between 75 and 300%. Vitamin K Is 90 Is less than 75%. Trying to eat more beans and strawberries to increase DIR of Vitamin K. Foliate is 400 and is between 75 and 300%. Thiamin is 1. 1 and less than 75%. Eating more bread and nuts can increase DIR. Niacin is 14 and less than 75%. I can eat more chicken and peanuts to increase level.Cooling is 425 and is between 75-300%. Potassium is 4700 and over 300%. If your body has to much potassium It can lead to hyperemia. Phosphorus was 700 and over 300%. Too much LLC. Some changes in my diet that I could make would be choosing something more healthy as a substitute for the unhealthy item. Instead of ranch and butter on a bake potato I could pass on that and Just eat the bake potato as is. Also, before I throw mayo. On a slice of bread try to replace it with mustard. My intake of saturated fat was 1 1. 67% which is a little high. Considering it should be around or less than 10% of total calories.If it was much higher than that it would be a concern of mine because trans/saturated fat is considered the worst type of fat by some doctors. This type so fat will raise the â€Å"bad† cholesterol, OLD, and lower the good cholesterol, HAD, in your body. A combination of the two cholesterol being altered can increase many health risk such as heart disease. 2. With that being said I can take steps in the right direction to make more healthy choices and have a healthier life style. I could switch from red meat to strictly sea food. I would eliminate things such as steak from my diet, to lower cholesterol, that would lead too serious of problems.One problem resulting from a lot of red meat in the diet and the level of cholesterol being raised would be heart disease. Another problem with red meat is it is linked to colon cancer (Dry. Sears). A change I could make other than red meat would be to take more vitamins to insure I get the recommended amount for each vitamin. I don't drink a lot of milk so I don't get the vitamin D I should. Taking a vitamin D pill or putting milk would help so later on in life I don't develop osteoporosis or something of that nature. The hardest of changes for me would be not to cook in or eat foods that have been cooked in oil.

A personalised induction is important

A personalized Induction will always be more effective August 2014 Word count: For this essay I have been asked to look at and discuss why or why not a personalized Induction Is more effective. For this I have looked at what was learnt In class, the theoretical concepts & techniques. I have also looked at historical and modern hypnotherapies views on inductions. Personally I believe that a personalized Induction Is a vital part of giving the most effective treatment that Is based on the Individuals own needs for reason that are explained In this assignment.This essay ill argue but evidence that a personalized induction is more successful in benefiting your client and in offering a more successful treatment unless in a group setting. With a group setting you are not making the client feel important or are catering for that Individuals needs. Every human being Is different, therefore we need to take into account likes/dislikes, values and perspectives along with their cultural backgrou nds, religions and beliefs to achieve the best results possible.Much of the way that human beings communicate with each other is in ways other Han the spoken word; body language, facial expressions, gestures, tone of voice and so on make up some of the non verbal ways of getting information across. In contrast to this during hypnosis the therapist has very few of the above techniques available; the client would usually have their eyes shut and so non verbal communications are not possible; It is solely about the voice, the words used and how they are used, Including the tone of the practitioners voice.Many people coming for treatment for the first time have their own beliefs, many people still believe that you are put into an unconscious state and many individuals still think of stage hypnosis. With these beliefs and anxieties, It Is important to build a trusting relationship and a good rapport with your client prior to any treatment to allay any fears and anxieties they may have.Al ways remember to enquire about the medical history with regards to mental health issues – depression – epilepsy – high blood pressure – the elderly or By completing a thorough professional introduction, assessment and induction in a comfortable setting you are reassuring your client that you know what you are doing and that. They can then believe in you and feel more comfortable. It is also beneficial to give the client information on hypnotherapy, its background and the process.You should be informing the client that you are not making them do anything, that they are fully in control at all times and by using the power of their subconscious mind the results are of their own making. We are only giving them the tools to enable those results. By this time your client should be feeling more comfortable and relaxed. Once your client is fully informed you can then look to provide a service that is tailor dad for that individual, ensuring the best possible outc ome for them.Background information is important at the assessment stage, finding out about things they like or dislike can have a huge impact on the treatment and can also be introduced into their induction. For example if a person has a fear of heights then you would not suggest them sitting on a big white fluffy cloud high up in the bright blue sky, whereas if your client likes something or has a good memory it would be good to introduce this into the induction. This memory could be of a place they have visited lone or with others or even a color that makes them feel good.Body language plays a huge part in communicating with others but the therapist needs to remember that body language is not possible in hypnotherapy as your clients eyes are normally closed. Using and controlling your voice is therefore vital, you can do this by speaking clearly, altering your tone and pace and emphasizing words. If we look at historical hypnotherapies there is evidence there to say that a person alized induction is important to your clients successful treatment.Dave Leman was born in 1900, he was ware of hypnosis due to his father's interest in the subject, when Dave was 8 yr old his father was diagnosed with cancer. Dive's father enlisted the help of a friend and received hypnosis for pain relief during his illness, Dave saw that this benefited his father greatly and became interested in this form of treatment. After his father's death Dave began using hypnosis as part of stage shows, in one show where he had to go solo as his colleague did not attend a group of doctors were watching in the audience.They later asked Dave to teach them, from this day forward Dave taught hypnosis until his death aged 67. If we look at Erikson he said † I think it is tremendously important that you observe everything that is possible and then if you want to use hypnosis you know how to verbalism your suggestions to influence your patient to elicit their response. [1] Erickson [2] recogn ized that every individual is different so they should all be treated as such. Yet Clark Hull [3] that he did not consider it important to involve his clients in their therapy, he neither believed the existence of a special state (trance) during hypnosis.By thoroughly assessing your linen and using the assessment tools provided in class you will know which approach is best for your client, you will also know their goals and what results they want to achieve. At the assessment stage you should be observing your clients color of clothing, their breathing and their lateral eye movement. This will all assist you in choosing the right creed for your client. In class we discussed the different approaches that can be used in hypnotherapy treatment, we learn about the assessment will benefit from the authoritarian screed, others will benefit from the remissive.The Authoritarian approach: this is where you would tell or direct your client in a firmer manner. The screeds will be logical, givi ng no choices, only directions. Authoritarian style can seem a little harsh to some but can be very effective if done correctly. For example you would introduce the following into the authoritarian screed: I want you to shut your eyes now, make yourself comfortable, using your powerful subconscious, you are fully in control etc. Freud used the authoritarian approach but found resistance from clients, Clients ignored certain memories so therapy was not so successful.There is also the submissive approach where you are making it more of a suggestion in a softer tone. The submissive approach is gentle and gives the client choices. The client that prefers this approach is much more open to using their imagination; this approach makes them feel safe and able to enhance the experience for them. The permissive style is nurturing and caring Examples for the submissive approach would be: You make feel your eyes growing heavy, you might like to close your eyes, you may want to make yourself mo re comfortable. The client feels in control and much more relaxed.In class we also looked at assessing the clients Modality and their lateral eye movements. Modalities refers to the way in which our brain processes the information that it receives; which of our senses are the most prominent, dictating which type of modality we lean towards most. We also looked at lateral eye movements. Lateral eye movements came about after studies conducted in the sass's by Paul Began, a psychologist. It was his belief that different types of thinking would elicit different eye movements. These are tot set in stone as they can differ with a small portion of individuals who may opposite handed.With the modalities there are five but in hypnotherapy we only use three: Auditory, Visual and Kinesthesia. Kinesthesia is about feeling, internal emotions and external as in touching/feeling. A kinesthesia would feel the fabric or pick up on someone's feelings quite easily. You would introduce words such as w arm, solid, gentle etc. Their lateral eye movements would be down to the right. Posture would be rounded shoulders, relaxed and breathing deeply. Nina screed you would introduce words like smooth, warm, solid, touch etc.Auditory is about listening and sounds, these people love to chat. They listen to sounds that may include music and speech but will also imagine sounds. When an auditory person talks it almost sounds melodic. They are also very sensitive to sounds and noise. In their screeds you would introduce words such as imagine, look, watch etc. Their lateral eye movements would be straight ahead as if staring into space if defocus, if they are forming images in their mind then they would be up to the right and if remembering images then they loud be looking to the left.Auditory Often tilt their head to one side and at times will have rhythmic body movements. Visual is about seeing, these people are creative and can use their imagination far easier. These people love to daydream and fantasies. They can visual color, patterns and shapes in their mind. With this modality you would use words such as loud, listen and hear etc. Their lateral eye movements would be to the right if constructing sounds but if remembering sounds then they would be to the left. Visual people have a less relaxed body stance and ore often than not of a slighter build.By assessing which modality a person is you comfortable and relaxed. You can then introduce the other modalities into the session but it is good to start with the modality they are more in tune with. I have practiced both personalized and non personalized inductions and my findings have been a definite yes to the personalized induction process. I currently work in the prison service as a specialist drug worker, I am extremely lucky that I have sixty clients that I work closely with. I have had the opportunity to try both approaches on.With the personalized induction completed on Clients that I have spent the effort with t o build up a rapport and trust with I have explained the process thoroughly and given them the best treatment suited to their personality and their needs. They have given me feedback, they report to never having experienced the feeling of such relaxation and contentment and did not want it to end. They also reported to have slept better and woken up feeling refreshed the following morning. They have requested further sessions and feel that they are greatly benefiting from it, bearing n mind that I work with prolific substance users I cannot be happier.

Financial Analysis of Oil Marketing Companies

?ANALYSIS OF OIL AND GAS MARKETING SECTOR- AN OVERVEW OF ITS GROWTH OVER THE LAST FIVE YEARS (2001 – 2005) AUTHOR: Akhlaq Ahmad Enroll No. 111031-004 Cell no: 03215008455 BBA-6 (Morning) SUPERVISOR: Mr. Musbashir Sadiq Bahria Institute of Management & Computer Sciences, Bahria University Shangrila Road, Sector E-8, Islamabad ABSTRACT Pakistan’s economy is undergoing significant structural changes since 1999-2000. The real GDP growth is accelerating over the last five years. Over the next five years, 7-8 percent growth is targeted to be sustained, which will demand a huge rise in the energy use. The energy sector in Pakistan comprises of oil, natural gas, power (hydro and nuclear) and coal. The oil and gas sector has a lot of potential in Pakistan. Pakistan is classified as low priority by foreign investors because of the unstable economic and political situation. However, efforts are being made by the Government to promote investment in the oil and gas sector, by various incentives such as liberal granting of exploration licenses, restructuring and reform of the oil and gas sectors, deregulation of prices, and privatization of selected assets. The reform has enhanced transparency, making decision makers aware of the various The objective of this thesis is to analyze whether the Oil and Gas sector in Pakistan has really progressed and whether there are better opportunities for investment and growth in this sector now than there were in the past. For the purpose of determining the trend of growth in the Oil and Gas Sector, four Oil and Gas Marketing Companies (O&GMC) were selected and their financial data analyzed over a period of five years (2001 – 2005). Financial data relevant to the sample companies was gathered from published accounts of the companies, in their annual reports. This data was condensed and summed up for the four companies and presented in tables and then used for analysis. The results were held to be representative of the entire Oil Marketing Sector and seem to show a marked trend of growth in the financial indicators reveal that there has been a marked improvement in the growth of this industry. ACKNOWLEDGMENT First of all I am very much thankful to ALLAH ALMIGHTY, who gave me strength & power to complete this task efficiently & effectively. I am also very much thankful to my parents who gave me the basic knowledge of how to read & write, who also prayed for me every time, especially in the hour of need & trouble. Thanks to my most prestigious Supervisor Mr. Mubashir Sadik for providing me guidelines for each & every aspect. Thanks to Mr. Abdul Ahad Maud and Mr. Faisal Subhan who were very cooperative and considerate during the whole period of data collection. I am also very grateful to all those who helped me & gave me up-to-date information or any other information regarding this analysis while completing this task. Thank you in anticipation. DADICATION TO MY LOVING PARENTS TABLE OF CONTENTS ABSTRACTi ACKNOWLEDGMENTiii DADICATIONiv TABLE OF CONTENTSv LIST OF TABLESvi LIST OF FIGURESix CHAPTER 11 INTRODUCTION1 Broad Problem Area/Background1 Rationale5 Problem Statement6 Objectives of the study7 Research Questions8 Limitations9 CHAPTER 210 LITERATURE REVIEW10 CHAPTER 315 METHOD15 Procedure17 CHAPTER 421 RESULTS AND DISCUSSION21 CHAPTER 566 CONCLUSION AND RECOMMENDATION66 Conclusion66 Recommendations 68 GLOSSARY 69 REFERENCES73 LIST OF TABLES Table 4. 1: Pakistan State Oil Company Limited Balance Sheets (2001-2005)21 Table 4. : Pakistan State Oil Company Limited Income Statements (2001-2005)22 Table 4. 3: Pakistan State Oil Company Limited Vertical Common Size of Balance Sheets (2001-2005)23 Table 4. 4: Pakistan State Oil Company Limited Vertical Common Size of Income statement (2001-2005)24 Table 4. 5: Pakistan State Oil Company Limited Horizontal Common Size of Balance Sheets (2001-2005)25 Table 4. 6: Pakistan State Oil Co mpany Limited Horizontal Common Size of Income statement (2001-2005)27 Table 4. 7: Shell Pakistan Limited Balance Sheets (2001-2005)28 Table 4. : Shell Pakistan Limited Income Statements (2001-2005)29 Table 4. 9: Shell Pakistan Limited Vertical Common Size of Balance Sheets (2001-2005)30 Table 4. 10: Shell Pakistan Limited Vertical Common Size of Income Statements (2001-2005)31 Table 4. 11: Shell Pakistan Limited Horizontal Common Size of Balance Sheets (2001-2005)32 Table 4. 12: Shell Pakistan Limited Horizontal Common Size of Income Statements (2001-2005)34 Table 4. 13: Sui Northern Gas Pipelines Limited Balance Sheets (2001-2005)35 Table 4. 14: Sui Northern Gas Pipelines Limited Income Statements (2001-2005)36 Table 4. 5: Sui Northern Gas Pipelines Limited Vertical Common Size of Balance Sheets (2001-2005)37 Table 4. 16: Sui Northern Gas Pipelines Limited Vertical Common Size of Income Statements (2001-2005)38 Table 4. 17: Sui Northern Gas Pipelines Limited Horizontal Common Size of Balance Sheets (2001-2005)39 Table 4. 18: Sui Northern Gas Pipelines Limited Horizontal Common Size of Income Statements (2001-2005)40 Table 4. 19: Sui Southern Gas Company Balance Sheets (2001-2005)41 Table 4. 20: Sui Southern Gas Company Income Statements (2001-2005)42 Table 4. 1: Sui Southern Gas Company Vertical Common Size of Balance Sheets (2001-2005)43 Table 4. 22: Sui Southern Gas Company Vertical Common Size of Income Statements (2001-2005)44 Table 4. 23: Sui Southern Gas Company Horizontal Common Size of Balance Sheets (2001-2005)45 Table 4. 24: Sui Southern Gas Company Horizontal Common Size of Income Statements (2001-2005)46 Table 4. 25: Oil and Gas Marketing Sector Consolidated Balance Sheets (PSO, Shell, SNGPL, SSGC) (2001-2005)47 Table 4. 26: Oil and Gas Marketing Sector Consolidated Income Statement (PSO, Shell, SNGPL, SSGC) (2001-2005)48 Table 4. 7: Oil and Gas Marketing Sector Vertical Common Size of Balance Sheet (PSO, Shell, SNGPL, SSGC) (2001-2005)49 Table 4 . 28: Oil and Gas Marketing Sector Vertical Common Size of Income Statement (PSO, Shell, SNGPL, SSGC) (2001-2005)51 Table 4. 29: Oil and Gas Marketing Sector Horizontal Common Size of Consolidated Balance Sheet (PSO, Shell, SNGPL, SSGC) (2001-2005)52 Table 4. 30: Oil and Gas Marketing Sector Horizontal Common Size of Consolidated Income Statement (PSO, Shell, SNGPL, SSGC) (2001-2005)53 Table 4. 31: Important figures to be used in the calculating the ratios54 Table 4. 2: Ratios for measuring the Liquidity of the sector 55 Table 4. 33: Ratios for measuring the Long Term Debt Paying Ability57 Table 4. 34: Ratios for measuring the profitability of the sector59 Table 4. 35: Ratios of the measurement of the market value of the sector63 LIST OF FIGURES Figure 4. 1: Ratios for measuring the Long Term Debt Paying Ability55 Figure 4. 2: Ratios for measuring the Long Term Debt Paying Ability57 Figure 4. 3: Ratios for measuring the Long Term Debt Paying Ability59 Figure 4. 4: Ratios for measuri ng the Long Term Debt Paying Ability61 Figure 4. : Ratios for measuring the Long Term Debt Paying Ability63 Figure 4. 6: Graphs to specify the growth of the oil & gas marketing companies65 CHAPTER 1 INTRODUCTION Broad Problem Area/Background It is universally recognized that energy is one of the most important inputs for economic growth and national development. The consumption of energy is one of the critical indicators of the level of development of any country. Developed countries use more energy per unit of economic output and far more energy per capita than developing countries. Economic growth is the key to this situation and for economic growth we need energy. Pakistan’s economy is undergoing significant structural changes since 1999-2000. The real GDP growth is accelerating over the last five years. Over the next five years, 7-8 percent growth is targeted to be sustained, which will demand a huge rise in the energy use. The energy sector in Pakistan comprises of oil, natural gas, power (hydro and nuclear) and coal. The total primary energy supplies measured in terms of oil equivalent (toe) stood at 50. million tonnes in 2003-04. Oil and gas account for almost 80% of the energy sector of Pakistan with oil and gas being 29. 9 percent and 49. 7 percent respectively. In order to measure the growth of the energy sector the best proxy might be to evaluate the performance of the oil marketing companies. As these are the companies which are not only selling the oil based products which meet the major needs of the energy in Pakistan but also these companies are dealing in the recently made popular Compressed Natural Gas. As this Oil and Gas sector represents more than 80% of the energy consumed in Pakistan so the companies which are dealing with the marketing of these fuels need to be assessed for their financial performance and results in the past few years. If these companies are showing growth we might assume that the energy sector is growing and the economy is on the right path. The first gas field was discovered in at Sui in 1952 and provides the basis for Pakistan's extensive gas network. Pakistan imports crude oil (it only produces 17% to 20% of what it needs), however is self sufficient in natural gas. Of the companies that are being researched in the present study, Pakistan State Oil Company Limited (PSOCL) and Shell Pakistan are the main planks in the oil industry. Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), distributes major portion of the natural gas. Pakistan declared 1997-98 an â€Å"Oil and Gas Year†. As a result of offering incentives to potential investors, including foreign companies, some $2. 5 billion of investment was attracted. Oil and Gas Consumption Figures? Oil Consumption (In tones): 1999-00 2000-01 2001-02 2002-03 2003-04 17,768,000 17,648,000 16,950,000 6,542,000 13,421,000 Gas Consumption 2003 ( In mmcft): 1999-00 2000-01 2001-02 2002-03 2003-04 712,001 768,068 872,604 872,264 1,051,418 Consumption of oil and gas has been fairly steady throughout the 1990s with the gas consumption increasing at a rate of 4. 9 percent while the oil consumption increasing at a slightly reduced rate of 2. 5 percent. Until 1999, the govern ment tightly controlled the oil and gas industries of Pakistan. No decision could be made without referring to the higher authorities, and when decisions were made, they were often based on political as opposed to economic considerations. Since early 2000, an ambitious pro-market reform program is being implemented, and gradually, the straightjacket under which the industry used to operate is being dismantled. As a result, the sector has changed dramatically over the last five years, and Pakistan now leads South Asia in sector reform (Economic Survey of Pakistan, 2004-05). The government actions have focused on promoting private investments in the upstream, deregulating most of the market for petroleum products, establishing a regulatory agency for the gas sector, and introducing market-related price caps for petroleum products. The government’s long term goal is to create a competitive, efficiently-run, financially smooth, and a largely privatized oil and gas sector providing supplies to a large share of population. It is important to note that a structural shift is taking place since 2000-01. The last five years have seen a positive trend towards greater gas consumption and a negative trend in the petroleum products consumption. Substantial progress has been made in the restructuring and reform of the oil and gas sectors, deregulation of prices, and privatization of selected assets. The reform has enhanced transparency, making decision makers aware of the various aspects of the business. Rationale Oil and Gas is an important sector in Pakistan economy and it largely affects the GDP of Pakistan, therefore there is a great emphasis on exploration and marketing. The consumption of Oil was 16. 45 million tonnes in 2002-3 and consumption of gas was 872,264 million cubic feet. The acceleration in growth of energy consumption is not surprising when seen against a 15. 4 percent growth in large scale manufacturing and an 8. 5 percent growth in real GDP. Higher consumption of energy simply reflects the rising of economic activity in a country. Oil and natural gas are an integral part of the everyday life. Not only do they make the economy move, they heat and cool our homes and provide electricity. A large number of products are made from oil and gas, including plastics, life-saving medications, art silk, cosmetics, and many other items you may use daily. Even from Strateg ic point and defense view point Pakistan is dependent on oil and gas. Problem Statement Oil and gas sector of Pakistan has changed dramatically over the last five years and Pakistan now leads South Asia in sector reform. The endeavors made to increase the oil and gas supplies need to be analyzed and companies encouraged. With this premise in mind four, Oil and Gas marketing companies have been selected to analyze their financial performance that would also indicate their success. Objectives of the study The objective of research study is to analyze the growth and development of the Oil and Gas Marketing Sector in Pakistan. Currently according to the Board of Investment of Pakistan there are 26 (local and international) companies operating in upstream, 7 downstream companies, and 4 refineries. The focus of this analysis is on the progress of downstream companies that are based in Pakistan. Four leading downstream companies have been selected and their financial performance studied for a period of five years from 2001 to 2005 to see whether these companies are financially stronger and what their rate of growth is and to determine reasons behind the growth. Research Questions 1. What is the importance of Oil and Gas sector in Pakistan economy? 2. What is the growth scenario of Oil and Gas Marketing companies in Pakistan? 3. What is the financial performance of the selected Oil and Gas marketing companies during the research period (2001-2005)? 4. What conclusions can be drawn about the industry based on the financial performance of the selected companies? Limitations Limitations: This research study has certain limitations that are not easy for the researcher to overcome at this level. The general level of inflation has not been adjusted for. Overall prices of oil have increased due to unavoidable natural phenomenon like war in Iraq and Hurricane Katrina. The profitability of the oil marketing companies could be due to increase in prices of petroleum and it may not be the true measure of their financial performance. Some secondary data was not easily available and was very difficult to obtain. As the research work was given to the researcher during the semester so the time constraint played its role. Despite time constraint, the researcher has conducted a comprehensive research. The limited experience in the research field is also a matter of consideration. This is the first study that goes to researcher’s credit. Hence, the researcher does not possess any experience in the field. CHAPTER 2 LITERATURE REVIEW The firm itself and outside providers of capital- creditors and investors –all undertake financial statement analysis. The type of analysis varies according to the specific interests of the party involved. Trade creditors (suppliers’ owed money for goods and services) are primarily interested in the liquidity of a firm. Their claims are short term, and the ability to pay these claims quickly is best judged by an analysis of firm’s liquidity. The claims of bond bondholders, on the other hand are long-term. Accordingly, bondholders are more interested in the cash flow ability of the firm to service debt over a long period of time. They may evaluate this ability by analyzing the capital structure of the firm, the major sources and uses and uses of funds, the firm’s profitability over time, and projections of future profitability over time, and projections of future profitability. The purpose of financial statement analysis is to examine past and current financial data so that a company's performance and financial position can be evaluated and future risks and potential can be estimated. Financial statement analysis can yield valuable information about trends and relationships, the quality of a company's earnings, and the strengths and weaknesses of its financial position (Woelfel, 1989). Investors in a company’s common stock are principally concerned with present and expected future earnings as well as with the stability of these earnings about a trend line. As a result, investors usually focus on analyzing profitability. They would also be concerned with the firm’s financial condition insofar as it affects the ability of the firm to pay dividends and avoid bankruptcy. Internally, management also employs financial analysis for the purpose of internal control and to better provide what capital suppliers seek in financial condition and performance from the firm. From an internal control stand point, management needs to undertake financial analysis in order to plan and control effectively. To plan for the future, the financial manager must assess the firm’s present financial position and evaluates opportunities in relation to this current position. With respect to internal control, the financial manager is particularly concerned with the return on investment provided by various assets of the company and in the efficiency of asset management. Finally, to bargain effectively for outside funds, the financial manager needs to be attuned to all aspects of financial analysis that outside suppliers of capital use in evaluating the firm (Horne & Wachowicz, 2001). Financial analysis of a company should include an examination of the financial statements of the company, including notes to the financial statements, and the auditor's report. The auditor's report will state whether the financial statements have been audited in accordance with generally accepted auditing standards. The report also indicates whether the statements fairly present the company's financial position, results of operations, and changes in financial position in accordance with generally accepted accounting principles. Notes to the financial statements are often more meaningful than the data found within the body of the statements. The notes explain the accounting policies of the company and usually provide detailed explanations of how those policies were applied along with supporting details. Analysts often compare the financial statements of one company with other companies in the same industry and with the industry in which the company operates as well as with prior year statements of the company being analyzed (Foster, 1999). Comparative financial statements provide analysts with significant information about trends and relationships over two or more years. Comparative statements are more significant for evaluating a company than are single-year statements. The analysis of financial data employs various techniques to emphasize the comparative and relative importance of the data presented and to evaluate the position of the firm. These techniques include ratio analysis, common size analysis, study of difference in components of financial statements among industries, review of descriptive material, and comparisons of result with other types of data. The information derived from these types of analyses should be blended to determine overall position. No one type of analysis supports overall findings or serves all types of users. Financial statement analysis is a judgmental process. One of the primary objectives is identification of major changes (turning points) in trends, amounts and relationships and investigation of the reasons underlying those changes. Often, a turning point may signal an early warning of a significant shift in the future success or failure of the business. The judgment process can be improved by experience and by the use of analytical tools. The components of financial statements, specially the balance sheet and the income statements, will vary by type of industry (Gibson, 1998). Economies — all economies — run on energy. Energy is needed to produce food and manufacture goods, power machines and appliances, transport raw materials and finished products, and provide heat and light. The more energy available to a society, the better its prospects for sustained growth; when energy supplies dwindle, economies grind to a halt and the affected populations suffer (Klare, 2005). Since World War II, economic growth around the world has been fueled largely by abundant supplies of hydrocarbons — that is, by petroleum and natural gas. Since 1950, worldwide oil consumption has grown eightfold, from approximately 10 to 80 million barrels per day; gas consumption, which began from a smaller base, has grown even more dramatically. Oil and gas will account for 65% of world energy in 2025, a larger share than at present; and because no other source of energy is currently available to replace them, the future health of the global economy rests on our ability to produce and consume more and more of these hydrocarbons (U. S Department of Energy, 2004). Petroleum refers to crude oil and natural gas or simply oil and gas, found in petroleum reservoirs generally thousands of feet below the surface. Exploratory wells are drilled to discover petroleum wells, while development wells are drilled to produce a portion of previously discovered oil and gas. Estimated volumes of recoverable gas within the reservoir are called oil and gas reserves (Brock, Jennings & Feiten, 1990). The oil and gas sector or the petroleum industry has the following four major segments: 1. Exploration and Production r E&P where oil and gas companies explore for underground reservoirs, and produce the discovered oil and gas using drilled wells. This thesis focuses on this sector of the oil and gas industry. 2. Hydrocarbon processing which includes oil refineries and gas processing plants. 3. Transport, Distribution and Storage by which petroleum is moved from the producing well areas to crude oil refineries and gas processing plants. Oil is moved by pipeline, truck , barge or tanker and Natural gas is moved by pipeline. 4. Retail/Marketing which ultimately markets in various ways the refined products. CHAPTER 3 METHOD Sample For the sample selection of four marketing companies, out of the population of 7 companies listed in the KSE, the criteria used were: 1. Share Capital of the company 2. Sales Revenue 3. Distribution data of the companies Based on these criteria the four companies selected that are operating in Pakistan were the following: Pakistan State Oil Company Limited (PSOCL) Pakistan State Oil Company Limited (PSOCL) is the market leader in Pakistan having 73% of the share of Black Oil Market and around 59% of the share of White Oil market. It is engaged in the import, storage, distribution and marketing of various petroleum products including Fuel oil, HSD, Jet Oil, petro-chemicals, LPG and CNG. Shell Pakistan Limited (SPL) The Shell brand name enjoys a 100-year history in this part of the world, dating back to 1899. Shell Pakistan has been taking a keen interest in expanding recently which shows the confidence in the economic growth and progress in the oil and gas sector. Shell is at present controlling approximately 30% share of the white oil products presently and during the last financial year the Capital Expenditure amounted to Rs 1. billion. Sui Northern Gas Pipelines Limited (SNGPL) Sui Northern Gas Pipelines Limited (SNGPL, is the largest integrated gas company serving more than 2 million consumers in North Central Pakistan through an extensive network in Punjab and NWFP. The Company has over 41 years of experience in operation and maintenance of high-pressure gas transmission and distribution systems. It has a lso expanded its activities to undertake the planning, designing and construction of pipelines, both for itself and other organizations. SNGPL operates in that region of the nation which has a rapidly growing demand for natural gas and power generation due to significant industrial development. Sui Southern Gas Company (SSGC) Sui Southern Gas Company (SSGC) is Pakistan's leading integrated gas Company. The company is engaged in the business of transmission and distribution of natural gas besides construction of high pressure transmission and low pressure distribution systems SSGCL transmission system extends from Sui in Balochistan to Karachi in Sindh comprising over 2780 KM of high pressure pipeline ranging from 12 – 24†³ in diameter. The distribution activities covering over 650 towns in the Sindh and Balochistan are organized through its regional offices. An average of about 234,553 million cubic feet (MMCFD) gas was sold in 2001-2002 to over 1. 7 million industrial, commercial and domestic consumers in these regions through a distribution network of over 22,890 Km. Type of Study This study aims to analyze the financial statements of oil and gas marketing companies and then generalize the result for the whole industry. Thus due to the purpose of the study it is classifies as descriptive study. Procedure Base Year and Period of Analysis For the analysis, 2001 has been taken as the base year, and the performance in the next five years has been compared with the base year. Analysis Methods The analysis of financial data uses various methods to evaluate the relative importance of the data that was presented in financial statements of a firm. The methods used in the analysis of the marketing sector of Pakistan are a blend of Ratio analysis Common size analysis Ratio Analysis The following ratios were used on the composite data of five years: 1. Liquidity Ratios related to the liquidity of short term assets and short term debt paying ability were Working Capital Current Ratio Sales to Working Capital 2. Profitability Ratios measure the ability of a firm to generate earnings. The ratios used were: Total Asset Turnover Operating Income Margin Return on Total Equity Return on Investment Gross Profit Margin Net Profit Margin 3. Debt Ratios that measure the long term debt paying ability of the firm used were: Debt Ratio Debt to Equity Ratio Fixed charge coverage 4. Market Value Ratios that measure the return that is being given to the stockholders were: Earning per share Dividend per share Dividend Payout These financial ratios were calculated for each of the years from 2001 to 2005 and then plotted to see the general trend. They were then studied to identify various turning points in the trends, and to see the underlying reasons behind the changes in trends that were occurring. Common Size Analysis A common size analysis expresses comparisons in percentages. For the financial data there was -Horizontal and vertical analysis of the following balance sheet items, using 2001 as a base year (horizontal) and total assets as base (vertical): Fixed asset Capital work in progress Long term investments Current assets Reserves & surplus Equity and liabilities were shown as a percentage of total liabilities. -Horizontal and vertical analysis of the following Profit and Loss items with 2001 as a base year (horizontal) and Net Sales as base (vertical): Financial Charges Operating expense Gross Profits Taxes Profit before Tax CHAPTER 4 RESULTS AND DISCUSSION Table 4. 1: Pakistan State Oil Company Limited Balance Sheets (2001-2005) Table 4. 2: Pakistan State Oil Company Limited Income Statements (2001-2005) 2001 2002 2003 2004 2005 Sales (Net) 43305. 67 133136. 52 172445. 77 161537. 98 212503. 65 Cost of Sales 136933. 58 126359. 13 163490. 58 152346. 86 198757. 32 Gross Profit 6372. 09 6777. 39 8955. 19 9191. 12 13746. 33 Operating Expenses 2367. 97 2210. 69 2750. 26 4223. 43 5443. 58 Operating Profit 4004. 12 4566. 7 6204. 93 4967. 69 8302. 75 Financial Charges 778. 7 979. 22 274. 78 189. 08 370. 7 Other income 225. 94 1549. 77 279. 17 1484 . 36 1294. 34 Profit Before Taxation 3451. 36 5137. 25 6209. 32 6262. 97 9226. 39 Taxation 1200 1949 2179 2181 2183 Profit After Taxation 2251. 36 3188. 25 4030. 32 4081. 97 7043. 39 Table 4. : Pakistan State Oil Company Limited Vertical Common Size of Balance Sheets (2001-2005) 2001 2002 2003 2004 2005 Current Assets 81. 44% 74. 84% 69. 41% 74. 60% 78. 22% Fixed Assets (Gross) 21. 99% 24. 10% 29. 01% 25. 40% 21. 78% Depreciation 11. 02% 11. 90% 13. 96% 12. 51% 12. 08% Fixed Assets (Net) 10. 97% 12. 21% 15. 05% 12. 89% 9. 70% Capital work in Progress 2. 28% 2. 72% 3. 53% 2. 76% 2. 39% Long Term Investment & Deposits 5. 32% 10. 23% 12. 01% 9. 75% 9. 69% Total Assets 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% Current Liabilities 63. 63% 62. 39% 55. 40% 59. 72% 62. 92% Deferred Taxation 0. 00% . 44% 1. 15% 1. 33% 1. 21% Long Term Liabilities 3. 82% 1. 85% 3. 05% 2. 53% 2. 63% Total Liabilities 67. 45% 65. 69% 59. 60% 63. 58% 66. 76% Paid-Up Capital 4. 74% 4. 36% 5. 30% 4. 04% 3. 29% Reserves & Surplus 27. 80% 29. 96% 35. 09% 32. 38% 29. 95% Total Liabilities & Capital 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% Analysis: The vertical common size of the B/S of PSO shows that the current as well as fixed assets are pretty much the same and there is major improvement in long term investment & deposits while on the liability side again the current and long term liabilities are pretty much constant. The reserves & surplus have been increasing with the passage of time. Table 4. 4: Pakistan State Oil Company Limited Vertical Common Size of Income statement (2001-2005) 2001 2002 2003 2004 2005 Sales (Net) 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% Cost of Sales 95. 55% 94. 91% 94. 81% 94. 31% 93. 53% Gross Profit 4. 45% 5. 09% 5. 19% 5. 69% 6. 47% Operating Expenses 1. 65% 1. 66% 1. 59% 2. 61% 2. 56% Operating Profit 2. 79% 3. 43% 3. 60% 3. 08% 3. 91% Financial Charges 0. 54% 0. 74% 0. 16% 0. 12% 0. 17% Other income 0. 16% 1. 16% 0. 16% 0. 92% 0. 61% Profit Before Taxation 2. 41% 3. 86% 3. 60% 3. 88% 4. 34% Taxation 0. 84% 1. 46% 1. 26% 1. 35% 1. 03% Profit After Taxation 1. 57% 2. 39% 2. 34% 2. 53% 3. 31% Analysis: The detailed analysis of the I/S of PSO shows that the oil marketing company has been able to slightly reduce its cost of sales which has resulted in a significant increase in the gross profit while the operating profit has also shown an increase as the operating expenses have increased but in a lesser proportion. The financial charges have been drastically cut down due to a better financial performance. There has been a marked improvement in the other income which shows that the company has increased its sources of income and all this has resulted in higher profits. Table 4. 5: Pakistan State Oil Company Limited Horizontal Common Size of Balance Sheets (2001-2005) 2001 2002 2003 2004 2005 Current Assets 100% -0. 001% -8. 54% 28. 90% 65. 98% Fixed Assets (Gross) 100% 19. 269% 41. 53% 62. 56% 71. 13% Depreciation 100% 17. 468% 35. 91% 59. 74% 89. 36% Fixed Assets (Net) 100% 21. 078% 47. 18% 65. 40% 52. 81% Capital work in Progress 100% 30. 150% 66. 47% 70. 52% 81. 58% Long Term Investment & Deposits 100% 109. 346% 142. 40% 158. 6% 214. 84% Total Assets 100% 8. 811% 7. 30% 40. 72% 72. 81% Current Liabilities 100% 6. 701% -6. 57% 32. 08% 70. 88% Deferred Taxation 100% 47200% 37250% 56425% 63018% Long Term Liabilities 100% -47. 371% -14. 53% -7. 05% 18. 70% Total Liabilities 100% 5. 958% -5. 19% 32. 63% 71. 02% Financed By Paid-Up Capital 100% 0. 000% 20. 00% 20. 00% 20. 00% Reserves & S urplus 100% 17. 237% 35. 44% 63. 87% 86. 15% Total Liabilities & Capital 100% 8. 811% 7. 30% 40. 72% 72. 81% Analysis: The horizontal common size of the B/S of PSO significantly tells that the current assets have increased substantially mainly due to the increase in sales. Another important aspect to note is the great deal of increase in the long term investments which is due to various new projects that have been undertaken and this shows that the company is expanding. The increase in current liabilities is mainly due to the increase in credit sales and also because a significant portion of long term loans has been converted into current portion while the increase in long term liabilities is mainly due to the increase in employee benefits which again shows that the company has been doing very well. Another good indicator of the good performance is the increase in the reserves & surplus section of the B/S. Table 4. 6: Pakistan State Oil Company Limited Horizontal Common Size of Income statement (2001-2005) 2001 2002 2003 2004 2005 Sales (Net) 100% -7. 096% 20. 33% 12. 72% 48. 29% Cost of Sales 100% -7. 722% 19. 39% 11. 26% 45. 15% Gross Profit 100% 6. 361% 40. 54% 44. 24% 115. 73% Operating Expenses 100% -6. 642% 16. 14% 78. 36% 129. 88% Operating Profit 100% 14. 050% 54. 96% 24. 06% 107. 36% Financial Charges 100% 25. 751% -64. 71% -75. 72% -52. 40% Other income 100% 585. 921% 23. 56% 556. 97% 472. 87% Profit Before Taxation 100% 48. 847% 79. 91% 81. 46% 167. 33% Taxation 100% 62. 417% 81. 58% 81. 75% 81. 92% Profit After Taxation 100% 41. 614% 79. 02% 81. 31% 212. 85% Analysis: The horizontal common size of the I/S clearly indicates the drastic improvement in the sales which is almost around 50% while due to a lesser increase in the cost of sales the gross profit is up by over 115%. The financial charges have been reduced to more than 50% and a huge increase in other sources of income has led to higher profit before taxation. Table 4. 7: Shell Pakistan Limited Balance Sheets (2001-2005) 2001 2002 2003 2004 2005 Current Assets 6470. 64 7145. 22 6149. 68 7912. 63 12725. 13 Fixed Assets (Gross) 6027. 49 6705. 37 7554. 29 8708. 5 9569. 78 Accumulated Depreciation 2189. 29 2738. 78 3290. 57 3852. 84 4532. 53 Fixed Assets (Net) 3838. 20 3966. 59 4263. 72 4855. 21 5037. 25 Capital Work in Progress 464. 52 534. 61 564. 44 544. 07 582. 38 Long Term Investment & Deposits 1294. 68 186. 27 1998. 93 2032. 22 1988. 13 Total Assets 12068. 04 11832. 69 12976. 77 15344. 13 20332. 89 Liabilities Current L iabilities 6470. 65 5934. 76 7029. 83 9042. 39 11951. 06 Long Term Liabilities 66. 84 47. 51 77. 86 43. 49 48. 22 Deferred Taxation 141 29. 24 17. 26 126. 42 20. 74 Financed By Paid-Up Capital 350. 66 350. 66 350. 66 350. 66 350. 66 Reserves & Surplus 038. 89 5470. 52 5501. 16 5781. 87 7962. 21 Total Liabilities & Equity 12068. 04 11832. 69 12976. 77 15344. 13 20332. 89 Table 4. 8: Shell Pakistan Limited Income Statements (2001-2005) 2001 2002 2003 2004 2005 Sales (Net) 65725. 15 69042. 05 77822. 82 79180. 35 98526. 62 Cost of Sales 61628. 48 64164. 23 72049. 47 72973. 11 89684. 58 Gross Profit 4096. 67 4877. 82 5773. 35 6207. 24 8842. 04 Operating Expenses 2486. 67 3292. 92 3794. 36 3806. 01 4609. 77 Operating Profit 1610. 00 1584. 90 1978. 99 2401. 23 4232. 27 Financial Charges 50. 27 46. 76 51. 48 224. 33 596. 55 Other Income 191. 72 154. 46 110. 32 12. 02 22. 33 Profit Before Taxation 1630. 45 1572. 44 1899. 91 2188. 92 3658. 05 Taxation 574. 42 509. 62 644. 91 680. 91 1197. 19 Profit After Taxation 1056. 03 1062. 81 1255. 00 1508. 01 2460. 86 Table 4. 9: Shell Pakistan Limited Vertical Common Size of Balance Sheets (2001-2005) 2001 2002 2003 2004 2005 Current Assets 53. 62% 60. 39% 47. 39% 51. 57% 62. 58% Fixed Assets (Gross) 49. 95% 56. 67% 58. 21% 56. 75% 47. 07% Accumulated Depreciation 18. 14% 23. 15% 25. 36% 25. 11% 22. 29% Fixed Assets (Net) 31. 80% 33. 52% 32. 86% 31. 64% 24. 77% Capital Work in Progress 3. 85% 4. 52% 4. 35% 3. 55% 2. 86% Long Term Investment & Deposits 0. 73% 1. 57% 15. 40% 13. 24% 9. 78% Total Assets 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% Current Liabilities 53. 62% 50. 16% 54. 17% 58. 93% 58. 78% Long Term Liabilities 0. 55% 0. 40% 0. 60% 0. 28% 0. 24% Deferred Taxation 1. 17% 0. 25% 0. 13% 0. 82% 0. 10% Financed By Paid-Up Capital 2. 91% 2. 96% 2. 70% 2. 29% 1. 72% Reserves & Surplus 41. 75% 46. 23% 42. 39% 37. 68% 39. 16% Total Liabilities & Equity 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% Analysis: Vertical common size of the B/S of Shell Pakistan shows that the company has been pretty much maintaining its proportion of all the assets, liabilities

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Reflection about the discomfort Essay Example for Free

Reflection about the discomfort Essay When I met a stranger at a party, I said to myself I wouldnt be shy. I told him my life story and my opinions within 10 minutes of meeting him. How odd it seemed. And finally he escaped from me. This was not a good start of a relationship, from that I learned self-disclosure was a kind of communication which worked best a little at a time. I had to sensitive to the other persons needs and feeling, to be empathic. When I communicated with my boyfriend in the first week, I reminded myself I should practice self-disclosure and I gave me a license to blurt out everything to him. Several times he said to me, Youre doing that communication thing on me. From his reflection about the discomfort, I thought I was over disclosing. The next week, when I stayed with him, I paid more attention on listening to him, gave him chances to disclose, but he complained that he was disclosing more than I was. This time I made another mistake, I was underdisclosing. I understood that deciding when and how much personal information to disclose was not a simple case, if I couldnt handle well, not only I would lose the chance to make friend with that stranger, but also lose my boyfriend. I was so regret that I was not prepare well for this part in the methodology section. I should modify it. Then I went to do some reading and found the guideline for disclosure. Self disclosure is best when it is to the right person-often one who is capable of empathic understanding; to the right degree- you may decide to disclose all or part of your experience; for the right reasons-be sure your goal is to disclose yourself rather than to burden the other or show off; at the right time-in hours that are appropriate and when the other is not heavily burdened with his own need; and in the right place-in a location conducive to this kind of communication.(Bolton, 1986, p. 180) In the following days, I kept these guidelines in mind when I communicated and made a great effort in using disclosing, no complaints again and the relation between my boyfriend went even intimacy.  I was amazed how I was able to self disclose to my friend Jane after nearlly 3 weeks disclosing training. I opened myself to her and revealed things about my past that I very rarely talk about. I found she was able to relate to me and I even led the way for her to reveal things about herself. This gave us a great beginning. One behavior that has hindered my self-disclosure with her was when she told me she was not happy for me when I told her a serious mistake I have made before. Unfortunately, after she did that I have not been able to open myself up anymore. I didnt take confrontation too well and said nothing at all. I needed to change this by telling her how I felt when she said that to me. If I could do this it would be a big step for me. This was a problem that I didnt foresee, I should learn how to deal with confrontation, prepare for it. I kept a diary of my disclosing within these 3 weeks. I found I was easy to disclosure to women than men. I avoid interact with people with different culture, I rarely talked about my family, and I often pushed me to self-disclosing too much and this turned people off. A lot of problems involves in my skill, I need to learn more about confrontation, learn how much I should disclose and to whom the disclosures are made. These were not included in my initial plan, and I will add them in my follow up plan. Conclusion and reflection  1. Self-disclosure is a process of providing information to another individual. The information that is disclosed includes ones thoughts, feelings, past experiences, and future plans.  2. For me, self-disclosure was the hardest piece of the puzzle, I did not tell people who I really was because I was afraid that they would not like the real me. Plus I had the need to protect myself.  3. I think an ideal self-disclosure (my goal) involves openness, a desire   o get closer to another, and an implied trust in the person were revealing ourselves to. It also can increase self-acceptance. 4. The amount of information we disclose in our interpersonal relationships also influences our relationships. The Johari window is a model that helps us assess the type of information we disclose; whom we make disclosures to and the communication environment we find ourselves in. By using this model, I found I was a person I r who had a lot of hidden area and a little open area.  5. My relationship with my friend May was an example of using the social penetration theory. I thought I understood this theory and did quiet well with disclosing to May. Although the disclosing slowed down in the last week, it was due to the different background. From that, I knew disclosure happened frequently with people had common ground. 6. Although I overcome the mental barrier to communicate with the stranger, I still done badly. I fell in an extreme-overdisclosing and made him escape from me. I realized that self-disclosure couldnt be used as a mere device to force the other people into a relationship. It was a kind of communication which worked best a little at a time. I should sensitive to the other persons needs and feeling, to be empathic. 7. I failed to use self-disclosure with my boyfriend in the first two weeks, but with the help of the guidelines, I did better in the last week. During the first week, I made a same mistake (overdisclosing) again. I blurted out everything to him. After he reflected his uncomfortable, I forced myself to listen more, but still fell into another extreme- underdisclosing. In order to solve the problem, I found some guidelines and kept in mind in the following week and got a lot of benefit. 8. I done really well in disclosing to Jane, but a new problem arose. I didnt know how to deal with confrontation when she said she didnt like my past behavior. This hindered my disclosing and I couldnt open myself any more. The lack of prepare for confrontation leaded to my failure.  9. I thought the approach I adopted was quiet successful, such as prepare for disclosing and handle the anxiety, using a method to gradually work up to being more open.  10. I benefited a lot by keeping a diary about my training. From that, I discovered what feelings and needs I didnt disclose; which friendships grew the most. I also knew certain of my disclosures turn people off and what I was uncomfortable discussing certain things and who I avoid interacting with. 11. Prepared other for my change by telling them I would use a new communication skill gave me a lot of benefits. They would give me feedback and if I done badly, they wont easily get annoy.  12. There were many shortcomings in my approach. Such as ignore when and how much personal information to disclose, havent prepared for confrontation. Those problems made my disclosing failed.  13. I thought my origin goal was appropriate-became openness, got closer to another, and had an implied trust in the person were revealing ourselves to. My goal also included increasing my self-acceptance. After 3 weeks training, I found I was more open than before, I wouldnt always hide myself and I would like to share myself with the right person. I got closer to May, my boyfriend by disclosing. During the process of disclosing, a trust had built. I showed some trust in another by making a disclosure that had a little risky, when the other accepted and was supportive about my disclosure, trust was likely to be enhanced. Due to the acceptance by others, my self-acceptance enhanced.

Analysis Of Celcom Axiata Investment In Tune Talk Marketing Essay

Analysis Of Celcom Axiata Investment In Tune Talk Marketing Essay Celcom Axiata is a member of Axiata Group is facing tough competition against the other major telecommunication rivals. Having coined as malay telco provider that is, Celcom Axiata has weak penetration into some major markets and the strategy to overcome this is by appointing the Mobile Virtual Network Operators (MVNO) to penetrate into the identified markets using their own brand, look and feel. Celcom Axiata business model for Tune Talk MVNO is by having 35% stakes in the company. After over 11 months in operation, Celcom Axiata is reviewing its position in this company whether to remain its stake, increase its shareholding or pullout. Prior to making any decision with its investment, Celcom Axiata needs to evaluate the existing Tune Talk financial standing and its capability to provide the required return on investment as well as its ability to handle the issues at hands especially those concerning the cash flows. Introduction Celcom Axiata is one of the 4 major mobile telecommunication companies in Malaysia. As at 31st March 2010, Celcom Axiata was ranked as second largest mobile telecommunication company behind Maxis, and ahead of Digi and U Mobile respectively. Celcom Axiata is a member of Axiata Group of companies who manage a group of Mobile Telecommunications in the Asia region. Axiata Group was previously known as TM International and part of TM (Telekom Malaysia) Group. The process of de-merger within TM Group saw the birth of Axiata Group, meant to focus on mobile telecommunications arm of the corporation within the region whilst TM continue to maintain its fixed lines business as well as broadband provider. According to the first quarter financial report, Celcom Axiata continue to show double digit growth on a YoY basis in all key indicators. Revenue was up 15% whilst Earning Before Interest Tax Depreciation and Amortization (EBITDA) increased by 16%. In tandem, Profit After Tax (PAT) was up 24% in the same period. On a QoQ basis, Celcom continued to show positive performance. Despite coming off an exceptional 4Q09, which recorded the highest ever quarterly growth, revenue growth was marginal, but still up by 0.2%. Continued focus on costs saw EBITDA up by 2% with margins improving by 0.7 percentage points QoQ to 45.4%. PAT showed a robust increase of 7% to RM441 million (Celcom Axiata media release, 27th May 2010). Celcom Axiata has been aggressively expanding its network and coverage to cater for the increasing demand by the customers. Despite its continuous efforts to penetrate into the various segments in this country, Celcom Axiata still lagging in some of key markets such as the Chinese market segment, immigrant market segment and student market or low income earners segment. These markets are predominantly controlled by Maxis and Digi and will be the key success factor for Celcom Axiata to capture in order to become the number one mobile telecommunication provider in this country. One of the strategy to penetrate into these segments as single out by Celcom Axiata is by way of having a Mobile Virtual Network Operator (MVNO) approach. MVNO means Celcom Axiata will appoint a third party to run the mobile business using their own brand, leveraging on their own strength such as networking, channel of distribution, marketing and customer service. By doing this, Celcom Axiata can reduce its financial burden on the go-to-market cost which in turn will be born by the MVNO partners themselves. To date there are four MVNOs appointed and launched by Celcom whereby each of them is given different market segment to penetrate and capture. Each MVNO is treated as separate entity from Celcom Axiata where the respective MVNOs have full control over their own operations and management of the companies except for Tune Talk Sdn Bhd where Celcom Axiata has 35% share of the company. Being different business model from other MVNOs, Tune Talk Sdn Bhd is seen as another Celcom Axiata joint venture company. Tune Talk is owned by the following shareholders as shown in figure 1 below : Tune Ventures (owned by Datuk Seri Tony Fernandes and Datuk Kamarudin Meranun) Individuals shareholders are Datuk Seri Kalimullah Masheerul Hassan, Lim Kian Onn, Jason Lo (the CEO of Tune Talk), Gurtaj Singh (the COO of Tune Talk) and Mark Lankaster (the CEO of Tune Hotels) Celcom decision to have its stake in Tune Talk is to ensure it has some form of control as one the major shareholder. Although Tune Talk management will have the control over the management of the company but the shareholders will have their voice heard during the monthly board exco meeting. Having represented by 2 permanent exco members from Celcom, it can ensure that Tune Talk business plan and strategies are in line with its goal to become one of the top mobile service provider in this country. The Situation Tune Talk is approaching its first anniversary on the coming 19th August 2010. Celcom need to assess its investment and evaluate whether Tune Talk business is moving to the right direction and hence generate the desired dividends to shareholders. In order to achieve the target, Celcom needs to keep track of Tune Talk managements way of running the business. The permanent exco members sitting in the boardroom must be able to drill down to the bottom line and analyze their way of spending their fund. This is very important to Celcom as the major shareholder in Tune Talk so it can decide on the next course of actions such as to inject more fund into Tune Talk, or to remain its position without adding anymore cash or worst case decide to pull out from the pack. Prior to such decision, Celcom needs to gather as much information as possible with regards to Tune Talk financial position, business directions, marketing strategies and other commercial matters which will be the key determination factors. Based from the previous exco meeting it was learned that Tune Talk is facing difficulties to move forward with its business plans and marketing strategies due to shortage of cash flow. Tune Talk Chief Financial Officer (CFO) during his presentation to the board of directors highlighted the following scenarios : a. Increase in Managed Services Costs Tune Talk adopted the managed services concept to deploy and maintain the Intelligent Network (IN) billing system, network related infrastructure namely Short Message Services Centre (SMSC), Home Location Register (HLR) and other Value Added Services (VAS). Managed services concept is a new trend in telecommunication and information technology (IT) business whereby the customers or business operators do not buy outright the related systems but pay to the supplier or provider on usage based. This method saves the company from spending an upfront purchase of an asset, hence reduce the cash outflow. Managed services can help a particular company to avoid from having to allocate depreciation cost which may impact the company balance sheet. In the case of Tune Talk the burden they are facing now is due to the increase in the amount to be spent on this managed services. The deal they are having right now is based on the number of subscribers using the system, the higher the number of subscribers the higher the managed services cost to be incurred. The amount will grow in tandem with the intake of new subscribers where the average cost per subscriber remain unchanged. Unlike buying own fixed asset, the average cost will tend to reduce as the number of new subscribers grow until it reaches the economic of scales. Increase in Channel and Distribution Cost In Malaysia, all the mobile operators are highly dependant to the normal traditional channel ie. mobilephone dealers to sell its SIM card and recharge vouchers. Being too dependant to this type of distribution channel will increase the companys cost of sales whereby for every sales of SIM cards or recharge voucher the company needs to allocate some amount of percentage as an incentive for them to push its products over the competitors. Traditionally, in mobile telecommunication business the channel of distribution consist of 3 layers : distributors master dealers ordinary dealers Normally only a handful of distributors are being appointed to distribute to the master dealers whom will then sell it through the ordinary dealers. Each of these channels will keep a small percentage as their incentive from the retail price. Operators are normally stuck with this channel cost which they cannot run away with in order to push their products to the customers. On average an operator will have to spend not less than 10% from its retail price being part of the channel cost. Allocation for Marketing Cost As a new mobile operator in Malaysia competing against the other 4 major mobile telecommunications service providers Tune Talk is facing a tough time to introduce its brand to the market. According to Nielsen Co Malaysia 2009 report (a research company), the telecommunication companies are among the highest contributor to the total advertising expenditure in Malaysia with Celcom leading the pack at RM 115.8 million, followed by Telekom Malaysia at RM 94.3 million, Maxis with RM 89.7 million and Digi for RM 87.1 million (see Figure 2 below). Newspaper and TV advertisement represent the top 2 categories for advertising followed by Radio, Magazine and Outdoor. To date Tune Talk had already spent RM 2 million in their advertising cost through billboards, newspaper, TV and radio advertisements. This amount is rather very small compare to the amount spent by the big giants and it may not give the required exposure that Tune Talk expected to create its brand awareness to the market place. Based from the report and dip stick survey conducted by Tune Talk marketing department their brand index is still very low and they would require more fund to be pumped in for this purpose. Slow Moving of Customer Recharge Activities Tune Talk is only selling prepaid mobile and it main source of income is by selling the SIM card and recharge vouchers. As far as Tune Talk is concern the revenue generated from these sales are considered as their income (based on the generally Accepted Accounting Principle). This is due to the fact the income will be reported when it is earned (Ross, Westerfiled, Jaffe, Corporate Finance, 7th edition). The good thing about prepaid business is the transactions are in cash terms. This means Tune Talk will get to record the transaction into its book as and when the SIM cards or vouchers are sold to the distributors. In accounting, the revenue from sales of SIM cards and recharge vouchers will only be realized upon usage and not upon sales. Nonetheless, as far as Tune Talk income is concerned it has already acquired the money from the distributor and realized in its book as income as per GAAP. As a rippling effect to lack of awareness of its brand in the market place, Tune Talk sales of SIM cards and recharge vouchers are moving rather at a very slow pace. Table 1 below is example of the average sales and projected 1st year revenue from SIM cards and recharge vouchers : Table 1 Items Average Monthly Revenue Projected 1st Year Revenue SIM Cards RM 500,000 RM 6,000,000 Recharge Vouchers RM 900,000 RM 10,800,000 Total RM 1,400,000 RM 16,800,000 This figure is far cry from the original budget that Tune Talk has to make which is RM 36.0 million for its first year operation and increase to RM 50.0 million and RM 72.0 million in year 2 and 3 respectively. High Customer Turnover or Attrition Rate It is common in the prepaid business industry that users tend to move or hope around from one operator to another operator to find for better offer and cheaper cost. Tune Talk is also affected by this game by the customers whereby the rate of customers churning out or leaving for another brand keep on increasing on month-on-month basis. Malaysian prepaid business industry rate of customers staying in a particular operator (industry language is length of stay) is in average of 6 months. However in the case of Tune Talk its customers average length of stay is a mere 3 months which is about half of the industry average. The impact of this short stay will cause a high acquisition cost to Tune Talk whereby its cash flow will be badly affected. In order to stay healthy, Tune Talk needs more than 3 months for each customer with average usage of RM 30 per month to recover its upfront acquisition cost such as the channel incentive, marketing cost and the other variable costs. Shortage of Cash Tune Talk started off its business with RM 7.5 million worth of shares with 35% own by Celcom whilst the remainder are by several other individuals. After 11 months of operations, Tune Talk is now facing with the most critical moment in its business where their cash flow is deteriorating. Despite being a lean and mean in expenditure and had not spent any money on fixed asset, Tune Talk still face the cash flow difficulty. An area that has badly affected Tune Talk cash flow is the channel incentive and the wholesale airtime rates that it has to pay back to Celcom. With intense competition Tune Talk needs to set its incentive on par or slightly better than the competition in order to get the channel attention and support. On the other hand, the prepaid business market is competing on the call rates to be offered to the end users in order to beat the others. Since Tune Talk is buying its airtime from Celcom at fixed rate, the competition which had forced Tune Talk to also lower down its selling rate to the end users had cause Tune Talk margin to shrink and became smaller. The result is, the income collected from the sales of SIM cards and recharge vouchers will have to be spent largely to incentive and wholesale airtime to Celcom, leaving only peanuts to Tune Talk to be used to re-generate its business. It is also better for Tune Talk to maintain a level of working capital that allows it to make it through those crunch times and continue to operate the business within tight budget (Cater McNamara, Authenticity Consulting LLC). Action Celcom Axiata really need to review its investment in Tune Talk Sdn Bhd by looking at the present situation and its potential. It is a known fact that every new business need some times to be able to stabilize and start to show positive result out of its investment. As far as telecommunication industry is concerned, a minimum of 3 years is required in order for a particular mobile operator to have a strong foothold and have substantial subscriber base to be relevant. The question here is whether Tune Talk strategies are gearing towards the right direction which will guarantee to bear fruits at the end of 3 years? How much will investor need to pump in to ensure that Tune Talk can still survive until the 3rd year ? It is imperative that Celcom Axiata representatives in the Tune Talk board of directors to insist Tune Talk management to review their existing business models which had obviously affected their cash flows. Serious attention must be given by Tune Talk management to revisit its dependency on the existing channel which will become its biggest threat in trying to minimize its cash out flows. Tune Talk management also needs to re-negotiate with its managed services provider to review the charges being imposed to Tune Talk for every new subscribers added into the system. The charges should be on decreasing trend as more customers being added. Tune Talk may also want to consider finding new manage service provider should the negotiation come to a dead end. This is important in managing Tune Talk spending over the long run. Prior to Celcom Axiata to make any decision with its investment, it needs to analyze Tune Talk financial condition. It is advisable for Celcom Axiata to scrutinize the Tune Talk financial management and ensure that all the monies are well spent and efficiently managed to protect its interest. Celcom Axiata finance manager needs to advice the Chief Financial Officer (CFO) of the real condition of Tune Talk by analyzing its financial statement cash flows. Having spent for over RM 2.6 million and holding 35% of Tune Talk shares, Celcom Axiata has the responsibility to report to its board of directors on the progress of its investment. The Celcom Axiata board of directors must be very interested to know whether the management of Celcom Axiata has made the right decision by investing in Tune Talk. One thing interesting in this business model ie MVNO is because the airtime being sold by Tune Talk (in this case the MVNO) is using Celcom network infrastructure. This means even though Tune Talk does not make huge profit and may not be able to provide the required rate of return in terms of dividends to the shareholders but as far as Celcom Axiata is concerned, it still make money from the airtime sold. Thus, board of directors of Celcom Axiata may well be pleased by the increase in Celcom Axiata revenue alone rather than going down to the details of earning through the Tune Talk dividends. Another area that needs special attention is to assess the existing Tune Talk management team style and business competencies. This industry is regarded as highly competitive and it takes excellent team to be able to compete with the big boys (as being referred to the seasoned mobile operators). Celcom Axiata representatives in the Tune Talk exco members must be able to provide information to the Celcom Axiata management whether there is an existence of conflict of interest in the Tune Talk management team. Although according to Vishny and Robert W, NBER Reporter, September 1989 said that the standard and ideally corporation allows management to have 5% of shares. This can be ascertained by judging into their way of running the business, their seriousness in fulfilling the required tasks as outlined in the business plans, their priorities in spending and handling the cash flows. Conclusion It is probably premature for Celcom Axiata to make decision to pull out from this pack by merely basing on the first 11 or 12 months Tune Talk operation. However any decision to increase its capital in Tune Talk either by buying more shares or by pumping more money to support Tune Talk operations must be done with great detail analysis. It is not advisable for Celcom Axiata to simply inject more cash to Tune Talk without seeing any progress or improvement on some of the area of concern which have been highlighted in previous pages. The major issues that need to be really scrutinize by Celcom Axiata financial manager is on the cash flow management. The action items highlighted in previous pages suggested Tune Talk to improve the way it runs its business which will eventually give a positive impact to its cash flow. It is said that high risk will normally generate high rate of return, but having said that, the save decision at the moment is for Celcom Axiata to remain its position without adding more cash but to continue to monitor Tune Talk progress and improvement. After all, Celcom Axiata is the one who makes more money from anyone else in the pack which is through the sales of wholesale airtime. This investment although had not been able to generate dividends to Celcom Axiata but somehow has managed to complement the weak area that cannot be penetrated by Celcom Axiata using its own brand.