Bakhresa Group Organisational Structure and Innovation

Bakhresa Group Organisational Structure and Innovation Identify the strand of organisation structure and innovation approach used by the Bakhresa group. Is it organic or mechanistic structure followed by the Bakhresa group? Among the two which one is more suitable to innovation and why? How can Bakhresa group manage the tension between the need for creativity and efficiency? Discuss the main organisational characteristics that facilitate the innovation process in the Bakhresa group. Explain the key individual roles within the innovation process and the activities they perform in the Bakhresa group. How did Bakhresa group establish innovative environment that propagates the virtuous circle of innovation? Explain its features. BACKGROUND BAKHRESA GROUP OF COMPANIES TANZANIA Bakhresa Group is one of the leading Industrial Houses in Tanzania, East Africa. Started in a humble manner with a small restaurant in the Port City of Dar Es Salaam, Tanzania, in mid seventies, it has now emerged as a respected business group in the Region. The Group has its operations spread in Tanzania, Zanzibar, Uganda, Kenya, Malawi, and Zambia and most recently in Mozambique. Plans are in place to spread its wings to other countries. The group now boastsÂÂ  of a turnover of more than Three Hundred Million United Sates Dollars and is a proud employer of more than two thousand employees associated directly. There are several companies under its umbrella and have investments mainly in Food and Beverage Sector, Packaging, Logistics and Real Estate. The Bakhresa group of companies offers two groups of product and services that is food and beverage, and services. Examples of food and beverage companies owned by Bakhresa includes; Bakhresa Grain Milling (Malawi) Ltd, Salim Bakhresa Co Ltd, Bakhresa Grain Milling (U) Ltd, Bakhresa Grain Milling (Mozambique) Lda, Zanzibar Milling Corporation Ltd, Bakhresa Food Products Ltd, Azam Bakeries Company Ltd, Salim Bakhresa Co Ltd and those of services includes; Omar Packaging Industries Ltd, Said Salim Bakhresa Co Ltd, Paper Kraft International Ltd, Bakhresa Food Products Ltd, etc ORGANISATION STRUCTURE AND INNOVATION Identify the strand of organisation structure and innovation approach used by the Bakhresa group. Is it organic or mechanistic structure, among the two which one is more suitable to innovation and why? The structure of an organization is defined by Mintzberg (1978) as the sum total of ways in which it divides its labor into distinct tasks and then achieves coordination among them. One of the problems is recognizing that different groups within an organization behave differently and interact with different parts of the wider external environment. None the less, there have been numerous useful studies exploring the link between the organizational structure and innovative performance. Trott (2005) described the two organizational structures such as Organic and Mechanistic structure as follows:- Mechanistic organization tends to offer a less suitable environment for managing the creativity and the innovation process. From Bakhresa group of companies case study analysis the following facts were deduced The channel of communication is highly structured, there is restricted information flow, and operating styles are uniform and restricted. Authority for decision is based on formal line management position and the management is reluctant to adapt changing circumstances. Therefore Bakhresa group of companies use the mechanistic organization structure which offer less suitable environment for innovation and creativity. The seminal work by Burns and Stalker (1961) on Scottish electronic organisation looked at the impact of technical change on organisational structures and on a system of social relationships. It suggests that organic, flexible structures, characterized by the absence of formality and hierarchy, support innovation more effectively than do mechanistic structures. THE DILEMMA OF INNOVATION MANAGEMENT How can Bakhresa group manage the tension between the need for creativity and efficiency? Trott (2005) explained that within an organization there is a fundamental tension between the need for stability and the need for creativity. On the one hand, companies require stability and static routines to accomplish daily tasks efficiently and quickly. This enables the organization to compete today, for example processing of millions of cheques by banks everyday. On the other hand, companies also need to develop new ideas and new products to be competitive in the future. Hence they need to nurture a creative environment where ideas can be tested and developed. This poses one of the most fundamental problems for management today. The diagram below by Trott (2005) explains the tension Management between the need for creativity and efficiency. Organization Efficiency gains The efficient day to day operations within an organization require stable routines which can be achieved in stable and controlled environments The development of new products/services requires creativity and room to try out new ideas this is achieved in a loose and flexible environment Creativity gains From the Bakhresa group of companies study case analysis shows that The management of the Bakhresa Group is committed to long-term growth rather than short-term profit and the organization is willing to invest in the long-term development of technology and is aware of its threats and opportunities and thus comply straight to the organization creativity gains and efficient gains as described by Trott (2005) above. ORGANISATIONAL CHARACTERISTICS THAT FACILITATE THE INNOVATION PROCESS Discuss the main organisational characteristics that facilitate the innovation process in the Bakhresa group. Trott (2005) explains the following organizational Characteristics that Facilitate the Innovation Process Growth Orientation It is characterized by a commitment to long-term growth rather than short-term profit. Not all companies first and foremost objective is growth. Some companies are established merely to exploit a short-term opportunity, other companies would like to maintain the company at its existing size: the objective of innovative companies is to grow the business the actively plan for the long-term, as it has been seen in the Bakhresa group of companies The management of the Bakhresa Group is committed to long-term growth rather than short-term profit and the organization is willing to invest in the long-term development of technology and is aware of its threats and opportunities. On top of that Trott (2005) added the following characteristics that facilitate the innovation process. Vigilance It is characterized by the ability of the organization to be aware of its threats and opportunities. Vigilance requires continual external scanning e.g. within the marketing function the activity would form part of market research and competitor analysis collecting valuable information is one thing, but relaying it to the necessary individuals and acting on it are two necessary associated requirements. Presently Bakhresa group is catering the fuel needs of customers in Zanzibar and Local bunkers. The vision is to enter the international bunkering business in near future since Zanzibar is the gateway to the East African coast. Commitment to Technology It is characterized by the willingness to invest in the long-term development of technology. Most innovative firms exhibit patience in permitting ideas to geminate and develop overtime. This need to be accompanied by a commitment to resources in terms of intellectual input without a long-term approach it would be extremely difficult for the company to attract good scientists. As seen in the Bakhresa group of companies technology is highly applied, most of the tasks are machinery operated. On the other hand the Company has a well supported IT system to run its day to day operations. PC Workstation Internet Access Satellite base Fleet Management Solutions Tracking System Fleet Cost and Maintenance Management System Road Base Daily Reporting Fleet Management System Real time location of trucks at finger tips Speed monitoring feedback on screen at all times Telephone and SMS availability at all times Acceptance of RISKS It is characterized by the willingness to include risky opportunities in a balanced portfolio. It means the willingness to consider carefully risky opportunities. Ability to take calculated risks and include them in a balanced portfolio of projects. Being an entrepreneur Bakhresa took a great risk to even in the foreign land and still think to spread its wings all over the African countries. Cross-functional Cooperation It is characterized by mutual respect among individuals and a willingness to work together across functions. Inter-departmental conflict is a well documented barrier to innovation. Often conflict has been observed between marketing and R D functions as the two groups often have very different interests. Receptivity It is characterized by the ability to be aware of, to identify and take effective advantage of externally developed technology. Most technology based innovations involve a combination of several different technologies. It would be unusual for all the technology to be developed in-house. That is why business is witnessing an in chasing number of joint ventures and alliances. Slack It is characterized by an ability to manage the innovation dilemma and provide room for creativity while organizations place a great emphasis on the need for efficiency, there is also a need for a certain amount of slack to allow individuals room to think, experiment, discuss ideas and be creative. Adaptability It is characterized by a readiness to accept change. The development of new product innovations will invariably lead to disruptions to established organizational activities. Major or radical innovations may result in significant changes, although the two are not necessarily linked. The organization must be ready to accept change in the way it manages its internal activities. Otherwise proposed innovations would be stifled due to a reluctance to alter existing ways of working or to learn new techniques. Diverse Range of Skills It is characterized by a combination of specialization and diversity of knowledge and skills organizations require individuals of a hybrid nature who are able to understand a variety of technical subjects and facilitate the transfer of knowledge within the company. It is the ability of the organization to manage this diversity of knowledge skills effectively that lies at the heart of the innovation process. Bakhresa Group started in a humble manner with a small restaurant in the Port City of Dar Es Salaam, Tanzania, past three decades, it has now emerged as a respected business group in the Region. The Group has its operations spread in Tanzania, Zanzibar, Uganda, Kenya, Malawi, Zambia and most recently in Mozambique. There are several companies under its umbrella and have investments mainly in Food and Beverage Sector, Packaging, Logistics and Real Estate. The Bakhresa Group has established companies dealing with variety of products from manufacturing of Food and Beverage Sector, Packaging, Logistics and Real Estate and has become a market leader because of innovation and entrepreneurship. THE ROLE OF THE INDIVIDUAL IN THE INNOVATION PROCESS Explain the key individual roles within the innovation process and the activities they perform in the Bakhresa group Trott (2005) explains innovation process is essentially a people process and that organizational structure, formal decision making processes, delegation of authority and other formal aspects of a so-called well run company are not necessary conditions for successful technological innovation. The study of Rubenstein has revealed that certain individuals had fulfilled a variety of roles that had contributed to successful technological innovation. Technical Innovator: This individual is an expert in one or two fields. Generates new ideas and sees new and different ways of doing things. Also referred to as the mad scientific. In the Bakhresa group of companies there is no technical innovator. Technical/Commercial Scanner This individual acquires vast amounts of information from outside the organization, often through net working. This may include market and technical information. For the company to survive and perform effectively, technical information is very important as seen in the Bakhresa group of companies. Gatekeeper This individual keeps informed of related developments that occur outside the organization through journals, conferences, colleagues and other companies. Passes information on to others, finds it easy to talk to colleagues. Serves as an information resource for others in the organization, consequently for the organisation to meet customer needs it is important to search for the outside information to see what other organisation do. Product champion This individual sells new ideas to others in the organization. Acquires resources, aggressive in championing his/her cause, takes risks. As per Bakhresa group of companies there is no product champion. Project Leader This individual provides the team with leadership and motivation. Plans and organizes the project ensures that administrative requirements are met. Provides necessary coordination among team members sees that project moves forward effectively. Balances Project goals with organizational needs Sponsor This individual provides access to a power base within the organization: a senior person. Buffers the Project team from unnecessary organizational constraints, helps the project team to get what it needs from other parts of the organization. Provides legitimacy and organizational confidence in the project. The Bakhresa Group engages commercial scanner, gatekeeper and project leader and sponsor to facilitate the innovation process. Even though the Bakhresa Group of companies lack product champion and technical innovator still the innovation activities within the organization is excellent. ESTABLISHING AN INNOVATIVE ENVIRONMENT AND PROPAGATING THE VIRTUOUS CIRCLE How did Bakhresa group establish innovative environment that propagates the virtuous circle of innovation? Explain its features As from (Porters 1985 cited in Trott 2005) explained that, given the importance of innovation, many businesses have spent enormous sum of money trying to develop an environment that fosters innovation. Creating a virtuous circle of innovation means getting competitive advantage over others. Virtuous circle of innovation The organizations Reputation for innovation High morale and Attraction of Retention of creative creative people people Motivates people and organizational Reduce frustration encouragement of Creativity and innovation A willingness in the Org. to accept new ideas Development of Innovative Product Reputation of the Organization It takes many years to develop. It is strongly linked to overall performance. Some companies are able to achieve wide exposure of new products or new research as seen in the case analysis Bakhresa group of companies started in a humble manner with a small restaurant in the Port City of Dar Es Salaam, Tanzania, in mid seventies, it has now emerged as a respected business group in the Region. The Group has its operations spread in Tanzania, Zanzibar, Uganda, Kenya, Malawi, and Zambia and most recently in Mozambique. Attraction of creative people Creative people will be attracted to those companies that themselves are viewed as creative. TOP scientists and researchers will seek employment with such companies. Currently Bakhresa group of companies is an employer of more than two thousand employees associated directly. Organizational encouragement of creativity The creativity has to be supported with actions and resources with the time to be creative: Organization can try to build sufficient slack into the system to allow for creative thinking and tolerates errors and mistakes and successful ideas need to be rewarded. Development of Innovative Products Developing new products that are genuine improvements compared with products currently available. Taking an example of Bakhresa Food Products Limited (BFPL) is based in Dar Es Salaam, Tanzania and produces high quality, delicious and nutritious Azam brand Ice Creams, Fruit Juices, Frozen Chapattis and Uhai (means Life in Kiswahili) brand Pure Drinking Water. Azam Bakeries, the largest bakery in Tanzania, produces the popular Azam brand bread, cakes and donuts. The state of the art technology is used for producing the bakery products making the company proud of supplyingÂÂ  essential food in the country. It has a modern biscuit factory producing the finest varieties of biscuits. Many varieties of biscuits such as Chai, Creams, Glucose, Coconut, Nice, Marie, and Shortcake are popular in the country. Willingness to Accept New Ideas Many organizations suffer from an inability to implement changes and new ideas even after rewarding the people involved in developing those ideas. Once a new product idea has been accepted it is important that it is carried through to completion. In future Bakhresa group of companies expect to trade Lubricants Jet A1 LPG With 60odd resorts of 150beds capacity each, in Zanzibar there is also ample scope for bulk supply LPG (In tanks), if they will able to arrange logistics. Increased Motivation and Reduced frustrations Individuals within the organization can see their ideas and efforts contributing to the performance of the business; they will be encouraged still further: on the other hand if seemingly good ideas are constantly overlooked, this will lead to increased frustrations. High Morale and Retention of Creative people A rewarding and enjoyable working environment will help to retain creative people. This in turn should reinforce the companys innovative capabilities. The Bakhresa Group, given the importance of innovation, has spent enormous sums of money trying to develop an environment that fosters innovation. The Bakhresa Group is aware of developing a reputation for innovation which helps propagate a virtuous circle that reinforces Groups abilities. RECOMMENDATIONS AND CONCLUSION As seen in the case study analysis, Bakhresa group of companies is now expanding towards all over the Africa supplying services and products. The company mainly caters through the food and beverage products and service products. The organisation structure of Bakhresa group of companies is characterized by mechanistic structure which is not very much conducive for enhancing innovation process within organisation, for more efficiency and effectiveness I suggest Bakhresa group of companies to start adopting organic structure. Meanwhile the structure of Bakhresa group of companies lacks the product champion and technical innovator so I suggest also including those two individual roles for maximum output of companies. Despite various organisation that falls under the umbrella of the Bakhresa group of companies the top management of all sub companies is comprised by family members, something that might bring trouble when family instability happens.

Continental/Fintelco Jv Case Analysis Essay

1. Is entry into the Argentine market a good strategic move for Continental? Entering Argentine market in 1993-1994 was a good strategic decision for Continental as one of the TOP5 cable TV companies in the US despite certain risks for several reasons: 1. Changes in the US regulatory environment created additional challenges for Continental’s core business: 1992 Cable Act limited the cable TV companies’ ability to raise cable rates whereas costs at market prices reached up to $2000/subscriber. This inevitably led to constrained profit margins 2. US market began saturating: long-standing competition on the market coupled with growing demand and consumer selectivity has led to further squeezing margins and forced companies to seek for diversification of revenue streams –by entering non-traditional cable markets, capturing smaller niches, or expanding overseas. 3. Argentine cable TV marked lagged in behind US market by almost a decade: cable TV penetration barely re ached 50%, subscription growth rates approached 60-70% in selected areas. Also, the market was only beginning to consolidate around 4 major players – more than 50% of the market was controlled by a thousand of smaller operators. Although Buenos Aires was relatively more mature market, other regions and provinces presented lucrative opportunities. Telephone, satellite, and other adjacent markets had untapped future opportunities. So far, emerging Argentine promised much brighter prospects for cable TV companies than saturating US. 4. Argentine macroeconomic indicators exhibited positive dynamics despite high level of uncertainty: indeed, after a decade of political turmoil and military rule Argentine was finally building a democratic civilian government. During four years preceding the acquisition, Carlos Menem and Domingo Cavallo launched effective economic and political reforms, including deregulation and privatization in TMT and other major sectors. In particular, legislation became very favorable to foreign investors. However, Argentine was suffering from hyperinflation and chronic recessions during the previous decade. Moreover, political risks were becoming more and more tangible as presidential elections of 1995 approached. As a result, the beta for Argentine was two times as high as that for the US. Is Fintelco an appropriate venture partner? Fintelco possessed at least three characteristics of a good venture partner: a. Knowledge of local market including cultural, political, and regulatory background as well as customer programming tastes. Basically, buying a successful incumbent is one of the best potential moves while entering â€Å"terra incognita† b. Fintelco had strong presence in various regions and owned licenses in MDDS and satellite, which created solid base for revenue streams diversification and future growth. c. Fintelco was still owned and managed by its founder, a prominent serial entrepreneur with diversified assets. Liberman had a very hands-on approach in business, and thus secured complete alignment of incentives between the management and the owners. 2. What are the major opportunities and risks you see in the venture? Success factors and opportunities (excluding market opportunities mentioned above): a. Personal and professional â€Å"click† between Samuel Liberman and Amos Hotsetter indicated good potential for constructive and conflict-free partnership. b. Similar growth strategies and vision: both companies grew using clustering strategy and capturing operating efficiencies by consolidating subscribers geographically. c. Limited access to capital markets in Argentine: Continental had access to capital markets in the US which could significantly foster business development in a country with scarce financial resources. Risks&Concerns: a. Active involvement of Fintelco’s founder and owner in business operations has also created certain problems. For instance, it resulted in a sort of nepotism – many key positions were held by Liberman’s direct relatives. Thus, potential restructuring and changes in management would be complicated. Also, after an acquisition Liberman would have 50% ownership, which could decrease his involvement in this particular business and also led to incentives misalignment. Indeed, he had diversified businesses and could have been looking for a cash-out. Liberman’s full involvement and commitment were crucial for joint venture success. b. Fragmented regional market in Argentine commanded inorganic expansion trajectory for Fintelco, which in turn required capital commitment from both parties. A ceiling should have been established to limit uncontrollable capital pump and its inefficient allocation. c. Exchange rate risks: significant portion of revenue stream born currency exchange risk (peso vs. USD) regardless of geographical and product diversification. These risks were absolutely external and thus could have been hardly mitigated. 3. One could value Fintelco in either of the following ways: a. Peso cash flows discounted at peso rate and then value converted at the spot rate b. $US flows discounted at $US rate Which approach is more appropriate in this case? We analyzed assumptions required to adopt each of proposed approaches. Approach (b) – $US cash flow discounted at $US rate – assumes that: (1) Peso/$US rate would remain constant – despite stable projection of peso exchange rate till 1998, PPP implied exchange rate has a high range (0.999-1.436, 44%) and hence significant volatility. (2) $US discount rate reflects the risk of the project – As revenues of Fintelco are denominated in pesos while a significant portion of its liabilities, including interest expense and a portion of programming costs, would be denominated in $US, the project bears significant currency risk which is not reflected by US discount factor. Although the real currency of the industry in Argentina is in local currency Peso, we believe that finding a proper discount rate in Peso is quite tough and unreliable. Moreover discounting the Peso valuation with today’s exchange may be a biased approach. Hence what we prefer Ä ±s to conv ert the Peso cash flows to USD with the estimated USD/Peso rates for each period and then discount it with the US$ discount rate. 4. Is $80m for a 50% interest a fair value for Fintelco? Based on our valuation we believe that $80m for a 50% interest is a fair value for Fintelco. In our valuation we chose to be conservative with the assumptions as well as try to cover all possible risks and ran multiple iterations to obtain a good understanding of the value ranges. Our valuation is based on the following assumptions: (1) WACC of 15.35% calculated used 9.01% as Rd (BB rating), D/V ratio of 14.44% (current Balance sheet), Re of 17.07% (Lessard model) and tax rate of 40% (Exhibit 1). Beta was estimated using comparable companies (Exhibit 2). We recognize that D/V ratio as well as Return on Equity is subject to our judgment hence we assessed sensitivity of WACC to change in these assumptions. We estimated Re using 4 different models (Exhibit 3) and D/V at the level of comparable companies. WACC ranges between 10.77% and 17.19% (Exhibit 4). We believe that 15.35% is an adequate estimation of WACC reflecting both country and project risks. (2) Terminal growth of 4% based on our view of sustainability. We noticed that Fintelco’s projections imply 7% revenue growth however we do not believe that such high level of growth is sustainable in the long run, hence we suggest more conservative estimation. (3) Conversion to $US based on parity-implied exchange rates for 10yrs. We believe that due to difference in US/Argentina inflation rates over the long horizon only PPP-implied exchange rate reflects true value of money at any given point in time. We used it to convert annual peso free cash flows at the respective rate (Exhibit 5); We calculated terminal value using 2002 $US DCF value and Gordon Growth formula and arrived at Enterprise Value. We further subtracted net debt converted @1994 exchange rate to arrive to Equity Value in $US (Exhibit 6). We also calculated $US value based on spot rates (both official and PPP-implied) to assess sensitivity of the model (Exhibit 7) and concluded that our estimation is reasonably conservative and reflects country’s currency risk adequately. (4) 30% private penalty discount – as Fintelco is a private company, we discount its value further for 30% to account for lack of liquidity. Exhibit 8 contains the summary of our valuation under different scenarios. We concluded that though there are scenarios under which value of 50% share of Fintelco is below $80m, probability of these scenarios occurring is fairly low. Our base case scenario uses Lessard’s model for Return on Equity calculations, PPP-implied 10 years forecasted exchange rate and 30% private penalty discount (result highlighted). 5. In the course pack there is a reading (Estrada (2007)) about valuing offshore projects using techniques proposed by Lessard, Godfrey and Espinosa, Goldman Sachs and Salomon Smith Barney. What assumptions underlie each approach? The reading Estrada 2007 describes four models for evaluating investment opportunities in developing markets. Each model estimates a required return on equity by attempting to incorporate country and/or project-specific risk. Unlike the CAPM, none of these models has reached the level of standard-bearer in the finance community, and each rests on critical assumptions that must be considered before using them in a project assessment: The Lessard Approach: R = Rf + MRP*(ÃŽ ²p* ÃŽ ²c) * Assumes that the country beta is a good approximation of country-specific risks (political, sovereign, and expropriation) * Assumes that the risk of a project is not related to the risk of the country (e.g., ÃŽ ²p for oil industry may be low, but should be high for a country which has a history of expropriation) * Assumes that investors do not value the effect of global diversification that the project would bring the company The Godfrey and Espinosa Approach: R = (Rf + YSc) + MRP* [0.60*(ÏÆ'c/ ÏÆ'w)] * Assumes that the yield spread, which measures default risk, is an appropriate risk premium to capture sovereign risk associated with an offshore project * Applies a value (60%) that reflects the average risk reflected by the stock market but not the bond market across all developing markets, thus ignoring country-specific correlations * Assumes that the project’s risk is solely dependent on location. It does not factor project or industry-specific risk Goldman Sachs: R = (Rf + YSc) + MRP* [1- Ï SB * (ÏÆ'c/ ÏÆ'w)] * Assumes that the yield spread, which measures default risk, is an appropriate risk premium to capture sovereign risk associated with an offshore project * Assumes that the project’s risk is solely dependent on location. It does not factor project or industry-specific risk Salomon Smith Barney: R = Rf + MRP* ÃŽ ²p + [{Ï’1 + Ï’1 + Ï’3)/30]*YS * Assumes that three factors can be measures on a scale from 1 to 10 in a robust and consistent way: the company’s access to capital markets, susceptibility of project to political risk, and financial importance of project to the company) 6. Would you suggest any modifications to the structure of the deal? The structure of the transaction described in the case is to form a joint venture. Continental will: c. Purchase 50% of equity stake in Fintelco for USD 80 million. d. Commit to provide USD 70 million of capital for acquisitions and investments in technology upgrade at Fintelco. Samuel Liberman undertakes to provide another USD 70 million for the investments. e. Fintelco will bear a significant currency risk on its balance sheet, as its revenues are in peso, but liabilities, interest expense and programming costs are in US dollars. f. Continental will provide technical assistance to Fintelco on cost basis. g. The deal contained an exit agreement, the so called â€Å"shotgun deal†, whereby after four years the partners could sell to each other our trigger an outright sale to the third party. The terms of the transaction are in our opinion fair for both parties. When being a financial advisor of Continental, we would suggest: * That the commitment to invest USD 70 million in the target company is stated clearly, structured with limited recourse to the new shareholder to prevent undertaking a blanco commitment to invest capital. * Share purchase agreement between Continental and Samuel Liberman contains certain clauses about representations and warranties of both parties to mitigate the risk of financial loss in case of â€Å"window dressing† of the target company. * Shotgun clause to contain more substance over the price of the transaction in the future, giving a call and a put option to both contractual counterparties: * If one party will not wish to sell in the future at a certain price, it will undertake to purchase 50% shares in the target company from the other party at the price it declined to sell at.

Understanding Apa Essay Outline

Understanding Apa Essay Outline What's Actually Happening with Apa Essay Outline It is possible to also allow the introduction with thesis be the very first Roman numeral heading. Additionally, among the important purposes of an outline is to clearly convey the relationship between the thesis and every one of the topic sentences. In any case, also make certain that grammar is in order. At our essay support, essays are always delivered in a brief moment. In an academe, plagiarism is an extremely serious offense that could sometimes lead to expulsion. Academic papers need you to identify a specific angle to pursue in writing, which is going to be the basis of the paper. Sources are important to support and produce the idea you've presented. Utilizing an essay outline can help you organize your thoughts so you don't make that mistake. It is a relatively short piece of writing on a particular topic. Employing an essay outline makes it possible to organize your thoughts from starting to end and makes sure that you don't leave any vital parts from the middle! The 5-Minute Rule for Apa Essay Outline Also, it's a remarkable method to see whether your paper flows and makes logical sense before you begin writing. Introduction has to be written first utilize verbs mostly avoid being passive. All work should have a title. In some instances the author might be an organization or department, hence the stating of their name will finish the APA essay format. After you have decided on your subject, you have to formulate it in the title. Bear in mind that the title and topic are distinct things. The Honest to Goodness Truth on Apa Essay Outline Many psychologists in the USA of America must take training to stay informed about new developments in the specialty and to remind them of things that they might have learned a very long time ago. Following your research paper outline is completed, it's time to begin writing. The significance of the outline in the research paper is clear. Create guidelines of what you would like to achieve in your research. Decimal outline is more prevalent in the sciences. Do not neglect to update the APA paper outline regularly based on the knowledge you've gained. Basically, APA format is utilized in the social sciences. however, it is not only confined to social sciences alone. To utilize APA paper outline or a different style, you have to read many samples of such documents. Exactly like an essay, your research paper desires a hook. Basically, the sections of an essay proved just 3 divisions. You may consider the way the simple APA requirements are satisfied in APA Essay sample. Thus, it's wise to begin with an outline. You might also see book outline. You could also see chapter outline. You could also see biography outline. The Most Popular Apa Essay Outline 1 important matter to note is that any source that's cited in your essay needs to be included in the reference segment. With essay outline, essays will avoid writer to get off topic or jumping from 1 argument to some other argumen t that doesn't relate with what you're discussing. In short, you can't fail by making the suitable introduction to your quote. Informative essay examples may be used for references. The Advantages of Apa Essay Outline These guidelines will help you in planning how to compose a reaction paper to a documentary. An outline can be exceedingly precise (to contain plenty of information), but nevertheless, it can also be general containing few ideas only. You may also do some studying to discover more about the points to discuss to be able to present a logical and compelling review. When it has to do with writing your bibliography, it is essential that you adhere to proper guidelines so as to make sure its quality and success. Nobody will argue that It's quite challenging to compose an academic paper if there's no structure for it. If you take a look at research paper outline examples, you will observe we have several tactics to present the principal body. There it's possible to learn to construct the structure and its elements. In the event the structure of the primary body has many levels, it is preferable to use different numbering styles.

Example Of Platform Iot - 896 Words

\section{IoT Device Management Platforms} \subsection{Management for Internet of Things (ManIoT)} This section describes the platform ManIoT (Management for Internet of Things) for managing devices that make up the IoT environments \cite{ManIoT}. An environment corresponding to a domain of applications and sensors installed physically in this environment. The platform ManIoT also takes into account the heterogeneity of the devices or things. So ManIoT not require major modifications or installations of additional software on the devices on the network or on user devices. Application access platform ManIoT and conducted through a Web interface. \begin{figure}[!ht] \centering \includegraphics[scale=0.54]{maniot.PNG}†¦show more content†¦In this way, for example, the local manager can control the events that an application or user can perform, such as turning a lamp on or off. \begin{figure}[!ht] \centering \includegraphics[scale=0.54]{local.PNG} \caption{ManIoT: Local Management Architecture.} \label{fig:Local} \end{figure} According to Figure \ref{fig:Local}, the following functions performed for each layer below can be described: †¢ \textbf{Application Layer:} The first layer consists of applications that use data provided by one or more devices, as well as platform services. Network users access applications through a web interface, and these applications, in turn, interact with ManIoT using function calls. Each application requests the platform to perform actions on the sensors in view of the implemented scenario. For example, an energy management application requests turning off or on an air conditioner in order to reduce consumption. †¢ \textbf{Service Layer:} The second layer is formed by the services that support the applications and use the abstractions implemented by the drivers to communicate with the devices. Among the items in this layer are: Storage, Scheduling, Authentication, Settings, Communication, Events, Conflict Management, Context Management. †¢ \textbf{Adaptation Layer:} The third layer is divided into two parts, the first one being responsible for standardizing the data a nd the second for dealing with the specificities of each device. 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Three Most Important Composers of the Twentieth Centruy

Music underwent a plethora of changes throughout the twentieth century, including a complete transformation from the large symphonic works of the late 1800s to the short, electronic ditties of the late 1900s. With all that change, choosing only three composers to represent the entire twentieth century would be impossible. For example, the innovation of electronic music added an entirely new genre to the world of classical music; however, the three composers discussed here did not write in that style and instead influenced other aspects of the music world. Arnold Schoenberg, Aaron Copland, and Igor Stravinsky each greatly impacted the musical world around them. Schoenberg’s journey away from tonality to serialism changed the way that composers wrote for the rest of the century, while Copland’s music emancipated American sound from the European styles. Stravinsky brought many musical styles to the height of what could be accomplished in each one, and his excellence influe nced many composers during and after his time. Schoenberg, Copland, and Stravinsky represent three of the most important composers of the twentieth century. The founder of the â€Å"second Viennese School,† Arnold Schoenberg, was known as a prominent composer and a comprehensive theorist who addressed both aesthetic and philosophical issues. Schoenberg’s early works served to sum up Romantic ideas. Written in 1903 and orchestrated in 1910, Gurrelieder was a pinnacle of the Romantic style. Schoenberg composed

What’s Cause of Poverty in Africa Free Essays

Introduction: â€Å"Poverty is a state of not having enough money to take care of basic needs such as food, clothing and shelter† (Audu). In another word, people do not have sufficient income to purchase enough food. Africa is a continent known for its deep history and rich culture but also know as a continent battling against poverty and disease (Audu). We will write a custom essay sample on What’s Cause of Poverty in Africa? or any similar topic only for you Order Now Poverty in Africa has been rising for the last quarter century while it has been falling in the rest of the developing world. Poverty doesn’t result from just one or two causes. The problem entrenched poverty is extremely difficult to solve because of different factors and all interacting with one another. Three main sections cause poverty in Africa are economic, political and external. Body: Economic: Employment is the main route out of poverty for poor people in an undeveloped country. The government does very little to create more jobs for African nations even with students that graduates from college can’t find work. With the unemployment rate increase, a lot of Africans have turned into armed robbers, blood money rituals, and secret cults organization, migrating outside Africa and turning into prostitution in order to survive. Therefore, the economic productivity is low but poverty rate is high. When leaders are not accountable to those they serve then there is a sign of corruption. Corruption both in government and business place heavy cost on society because it plays a major cause and a result of poverty. It’s because poverty can be fought in the presence of strong institution, and equitable distribution of resources (Collier). However, programs that designed to fight poverty in Africa are not fully implemented because the funds end up in the hands of corrupt individuals, who pocket the majority (Bartle). This emphasizes poor governance because those in authority have failed to apprehend the corrupt. Therefore, it requires a non-corrupt government to turn public income into human development outcomes and strengthening of business confidence, economic and social. Political: Social inequality starts from cultural ideas about the relative worth of different genders, races, ethnic groups and social classes (Bartle). According to Jeff Stats, in African history, apartheid laws defined a binary caste system that assigned different rights and social spaces to different races, using skin color to determine the opportunities available to individuals in each group. Base on this law it’s very inequality for people in Africa because people who are in low class will never able to change their level since they don’t have the opportunity and options to change it. External: With constant war and conflict in Africa makes it very difficult to farm, to work for living or earn money. It’s hard to start ordinary life because many men are forces to flee from their homes to fight for the war. This will make the continent’s productivity goes down and poverty rates go up. Another factor that cause poverty in Africa is diseases such as malaria, HIV, and TB. When a member in a household is affected by any of those diseases there is very little resources are spent on treating the sick. This lead to people who are left behind with no resources to support themselves and the situation is worsened by poor health facilities. How to cite What’s Cause of Poverty in Africa?, Papers

BHP Billiton Ltd - Inherent Risks in Auditing Free Sample

Questions: 1.Identify what you consider to be the key inherent risk factors that could have an impact on the audit of BHP Billiton Limited for the year ended 30th June 2016 and/or future audits. For each of the inherent risk factors identified, describe the risk clearly and state how and why you consider the issue may create the risk of potential material misstatement in the financial statements of BHP Billiton Limited for the year ended 30th June 2016 and beyond. You are expected to identify five (5) critical inherent risks.2.Using the audit risk model, discuss briefly how each inherent risk you identified will impact on the evidence mix for the planning of the audit of BHP Billiton Limited in the relevant segment of the audit. When referring to the balance between tests of balances, transactions and analytical procedures, indicate which main areas would be critical and comment on the nature and extent of the testing in the relevant segment. Answers: 1. Inherent risk refers to those risks that are faced due to error or else omissions in a particular financial declaration owing to different facets other than inadequacy of control (Louwers et al. 2013). This inherent risk is considered to be high in case of high degrees of judgment as well as estimation or in cases of highly intricate transactions of the business (Alles and Vasarhelyi 2015). In case of BHP Billiton Ltd, several uncertainties are associated to the process of estimation of mineral, oil as well as gas reserves (Bhpbilliton.com 2016). Different geological estimations related to the mineralization that were legitimate during the time of estimation might possibly change at the time when new information becomes available. Approximations regarding the reserves that the company pulls through or else the cost that is used to anticipate recovery of such reserves are purely founded on uncertain suppositions. Again, the unsure global financial outlook might also adversely affect the entire economic suppositions associated to reserve recovery and possibly will necessitate reserve restatements. These Reserve restatements might possibly depressingly affect the overall results along with prospects. Therefore, this business risk can be considered to inherent that might lead to potential changes to the overall portfolio of assets and material misstatements in the financial reports. In addition to this, the inherent risks associated to the functionalities of the company BHP Billiton Ltd includes the uncertainties of identification and arrangements for reserves, additions and divesting assets and managing different capital development ventures (Bhpbilliton.com 2016). Adding to this, there remain inherent limitations to the overall efficacy of any method of controlling disclosure as well as procedures, counting the chances of human error along with the circumvention otherwise the overriding of different controls as well as procedures. Consequently, effectual control procedure of disclosure and practices can provide sensible assurance of attaining the control purposes. Further, the management of the company has the need to apply judgments as well as estimations in the process of evaluation of cost benefit associations of different feasible controls while undertaking the process of design as well as evaluation of disclosure controls and procedures. This judgment and estimation might also lead to human errors of assumptions and poses inherent risks to the entire business. Again, the fixed investments assets are generally mentioned at a cost after deductions for provisions for different impairments. However, the fixed investments are fundamentally evaluated to make it certain that the carrying amounts do not surpass the overall approximated recoverable amounts. The value that is used is normally determined by way of discounting future cash flows by utilizing a risk adjusted pre tax rate of discount that is appropriate for different inherent risks in the assets. However, this estimated rate of discount might pose inherent risk for the functionalities of the company and can lead to material misstatements. In addition to this, there exists many more significant variables, suppositions as well as imprecision intrinsic in process of development of the Standardized measure. This standardized measure is essentially prepared as well as presented based on certain presumptions that states that the previous years economic and functional conditions is expected to persist over the upcoming times in which year-end reserves would be generated. However, this estimation in the standardized measures exclude the consequences of future rate of inflation, upcoming alterations in rates of exchange, anticipated future transformations in technology, rate of taxes, working practices and some other regulatory changes (Bhpbilliton.com 2016). Therefore, this might affect the predetermined level of proved reserves of oil and gas of the company BHP Billiton Ltd as well as the production rate thereof. The factors also pose different types of inherent risk that might lead to material misstatements in the financial declarations of the firm BHP Billiton Ltd. The inherent risks beyond the control of the company include ascertainment of the production commencement dates, related costs or else the production output, expected life of operation as well as mines or other facilities (Bhpbilliton.com 2016). In addition to this, there also exist inherent risks in gauging the capability of the firm to profitably generate as well as transport the minerals, petroleum as well as metals extracted to different relevant market. The changes in the foreign currency exchange rate can influence the overall market prices of the minerals, petroleum, metals in addition to other products that the company produces. Therefore, the change in the market prices of the products also poses the inherent risks that might lead to the material misstatements in the financial announcements (Eilifsen et al. 2013). The activities of different government of authorities where the company carries out the operations of exploration as well as development projects can also affect the assumptions by impositions of changes in rates of taxes. This can be viewed as uncertainties that are inherent in the process of estimations of production and reserves of the mineral, oil and gas and possible will lead to material misstatements in the financial declarations of the firm BHP Billiton Ltd. A gain, the unexpected natural as well as the functional catastrophes might adversely affect the overall operations of the corporation. This can be regarded as an inherent risk to the operations of the corporation owing to the environmental damages. As mentioned in the annual report of the company BHP Billiton Ltd, the functionalities of the BHP Billiton Ltd are essentially subject to different operational accidents. The operational accidents include the port fire as explosion in addition to the open-cut pitt wall failures, total loss of power supply, diverse rail road accidents, inadequate well control, environmental pollution as well as critical technical failures. The functionalities of the firm are also prone to different unexpected natural catastrophes that include the earthquakes, hurricanes, tsunamis as well as hurricanes. As mentioned in the annual report of the firm, the iron ore, Queensland coal as well as the oil and gas functions in the Gulf of Mexico are situated in areas that are primarily subject to environmental upheaval such as the cyclones or else hurricanes. BHP Billiton Ltds Chilean copper operations are essentially situated in a very well known earthquake as well as tsunami prone zone. Therefore, all these factors might lead to the damage of the property of the company, interruptions in the business operations, risk associated to construction, marine cargo as well as primary liability risks. The business plans therefore might not provide protection for different costs that might probably stem from these kinds of uncertain events (Songini and Pistoni 2012). Thus, the damages of this kind of uncertain events might possibly lead to the misappropriations of costs and consequently the material misstatements in the financial declarations of the firm. Again, many of the non-operated assets of the corporation BHP Billiton Ltd might not possibly conform to the pertinent standards. As per the annual report of the corporation BHP Billiton, it can be hereby ascertained that there are various assets of the company that are primarily operated and at the same time managed by diverse joint venture partners or else by other corporations. As a result, the management of these non-operated assets might possibly not conform to the management as well as benchmark of operations, procedures of controls, systems of operations, counting the health, safety, environment as well as community standards. Therefore, the failure to acclimatize to equal standards, controls, procedures of these assets can lead to huge costs, at the same time reduced amount of production, and adversely influence the outcomes as well as reputation (Porter et al. 2014). The assets controlled by different third also pose the inherent risks that too can lead to the material misst atements in the financial statements of the corporation BHP Billiton Ltd. Besides this, different types of violations of the security of the information technology processes might adversely influence the business activities of the firm. As mentioned in the annual report of the corporation BHP Billiton Ltd, the information technology system of the company comprises of the infrastructure, different business applications as well as communication networks to uphold the business actions. This kind of system might be subject to different security infringements such as the cyber crimes that in turn can lead to misappropriation of funds, escalated health as well as safety risks to different members of the staff (Hayes et al. 2014). In addition to this, the breach of the IT system can also lead to disruptive operations, diverse environmental damage, poor quality of product, loss of intellectual property, inappropriate disclosure of different commercially sensitive information as well as dama ge to reputation and goodwill. The losses caused due to the identified operational risk are essentially out of the control and can pose inherent risks that lead to the financial misstatements (Skaife et al. 2013). Furthermore, health impacts for a long period might stem from different unexpected workplace revelations or else historical exposures of the workers to different perilous substances. This in turn might possibly generate future financial reimbursement requirements (Hayes et al. 2014). Again, the environmental incidents also have the capability to in turn direct towards different material adverse influences on the functionalities of the corporations. Therefore, these kind of uncontrolled factors include unrestrained tailings containment violations, subsidence from diverse mining functions, break away from of different polluting materials as well as unrestrained discharge of hydrocarbons. Alterations in different regulatory as well as community anticipations might lead to different pertinent plans that are not sufficient but the risks associated to the community might consist of different community protests as well as civil unrest and might possibly lead to stoppages to diverse proposed improvements. Therefore, the operations or else the actions also face the risk of different unintentional violations of relevant human rights, worldwide laws and conventions. However, diverse probable conformity costs, litigation expenditures, regulatory impediments, rehabilitation expenditure as well as operational costs stemming from this kind of legislation can adversely affect the financial outcomes and lead to the material misstatements (Wang et al. 2013). The inherent risks that are identified from financial declarations of the corporations declared for the year ending 30 June 2016 include improper outlook towards worldwide growth. Worldwide growth over the remaining of the period of the year 2016 is anticipated to stay more or less modest and is subject to different downside risks, counting different uncertain economic results of the Brexit. The outlook section of the financial report mentions that the global growth rate is assumed to remain between the 3% and 3.5% during the year 2017 whereas the global trade needs to accelerate at a modest rate (Bhpbilliton.com 2016). The reform programs of the government can improve the productivity and the governing authorities need to improve the overall level of efficiency of capital allocation, lessen surplus capacity in segments that includes coal as well as steel whilst boosting the function of consumer demand and preserving the support for employment (Bhpbilliton.com 2016). Therefore, it is concluded that BHP Billiton faces various inherent risks at the time of conducting the auditing of financial statements. The above report explains the identification of key inherent risk factors affecting audit of BHP Billiton for the year ending 30 June for the year 2016 for future analysis purpose. This study explains the inherent risk factors with justification in aligning issues governing risk of potential material misstatement in the financial statements. 2. Audit risk model refers to the risk that a particular auditor articulates and expresses an inappropriate viewpoint on examination of the financial declarations of the corporation. As per the audit risk model, the risk of audit may be regarded as the product of different risks that might be encountered while performance of the entire program of audit (Messier Jr 2016). Therefore, in order to keep the overall audit risk within the acceptable limit, the auditor needs to assess the particular level of the risk that can be attached to each element of the audit risk. Figure 1: Audit Risk Model (Source: Messier Jr 2016) The different types of tests that the auditors can apply include the risk assessment procedures as well as the further audit procedures. As per the audit risk model, the sufficient competent evidence is equal to addition of the test of control, substantive tests of different business transactions, analytical process as well as tests of details of balances (Songini and Pistoni 2012). The different types of evidences include the physical examination, confirmation, documentation as well as observation. The tests of controls require documentation as well as observation as evidence. Again, the substantive tests of business transactions require documentation as evidence. In addition to this, the tests of different details of balances require physical examination, confirmation as well as documentation. Apart from this, the further audit procedures such as the tests of controls also create further evidences of inquiries of the clients and reperformances. Again, the substantive tests of trans actions also correspond to the inquiries of the respective clients, reperformances as well as recalculations. Adding to this, the analytical procedures also correspond to the inquiries of the client, analytical process whereas the tests of details of balances also create the evidence such as the inquiries of the client, reperformances as well as recalculations. Therefore, the evidence mix varies with the alterations in different circumstances (Songini and Pistoni 2012). Figure 2: Variations in Evidence Mix (Source: Songini and Pistoni 2012) The management of the corporation BHP Billiton Ltd can carry out tests such as the risk assessment processes, different tests of controls, substantive tests of transactions, analytical procedures as well as tests of details of balances. Thereafter, the management can undertake the evidence decisions that include audit procedures, size of the sample, selected items and timing. This process also comprises of ascertainment of different types of evidences that includes the documentation, inquiries of client, analytical processes, observation, reperformance, recalculation, physical examination as well as confirmation. Therefore, the process includes the planning and designing the audit approach, performance of tests of control as well as different substantive tests of transactions, performance of analytical procedures as well as tests of details of balances and finally the completion of the audit and issuance of the audit report (Alles and Vasarhelyi 2015). The company encounters inherent risks arising out of the uncertain environmental condition, global financial outlook, unintentional human errors as well as omissions. In addition to this, the company also faces inherent risk due to uncertainties of identification and arrangements for reserves, method of controlling disclosure, estimation in the standardized measure, ascertainment of the production commencement dates, related costs or else the production output, expected life of operation as well as mines or other facilities (Alles and Vasarhelyi 2015). Unexpected natural as well as the functional catastrophe, operational accidents, assets controlled by different third party , violations of the security of the information technology, uncontrolled factors include unrestrained tailings containment violations, subsidence from diverse mining functions, break away from of different polluting materials as well as unrestrained discharge of hydrocarbons also hereby poses inherent risks. These risks therefore lead to the material misstatements in the financial declarations of the firm. Understanding the internal control of the firm can help in the process of evaluation of the control risks (Alles and Vasarhelyi 2015). Thereafter, the auditor can gather requisite information for assessment of the fraud risks. The auditors can utilize the level of detection risk in order to ascertain the requisite audit resources. Emphasis has been given on understanding the audit risk model for discussing on inherent risk factors as per evidence mix for planning of company named as BHP Billiton. It refers majorly to audit as referred in balance between test of balances as well as transactions and analytical procedures at the same time. The current segment describes the main areas and critical analysis regarding the nature as well as extent of testing for the company named as BHP Billiton. Audit Planning is explained in the study as it renders guidance for assisting the auditors during the process of auditing activities (Eilifsen et al. 2013). This enables audit assistance for business firm in evading with the misrepresentation identified in the financial statement of BHP Billiton. Audit Planning for BHP Billiton enables the auditor for identifying the feasible concerns as far as possible. This reveals identification of required inherent risks in aligning with audit risk models. It helps in directing as well a s administrating on appointing experiencing team members for evaluating the risk in an effective way. Reference Alles, M. and Vasarhelyi, M.A., 2015. Adopting continuous auditing.Managerial Auditing Journal,30(2), pp.176-204. Bhpbilliton.com. 2016. [online] Available at: https://www.bhpbilliton.com/~/media/bhp/documents/investors/news/2016/160816_bhpbillitonresultsyearended30june2016.pdf?la=en [Accessed 18 Oct. 2016]. Bhpbilliton.com. 2016.BHP Billiton | A leading global resources company. [online] Available at: https://www.bhpbilliton.com/ [Accessed 17 Oct. 2016]. Eilifsen, A., Messier, W.F., Glover, S.M. and Prawitt, D.F., 2013.Auditing and assurance services. McGraw-Hill. Hayes, R., Wallage, P. and Gortemaker, H., 2014.Principles of auditing: an introduction to international standards on auditing. Pearson Higher Ed. Hayes, R., Wallage, P. and Gortemaker, H., 2014.Principles of auditing: an introduction to international standards on auditing. Pearson Higher Ed. Louwers, T.J., Ramsay, R.J., Sinason, D.H., Strawser, J.R. and Thibodeau, J.C., 2013.Auditing and assurance services. New York, NY: McGraw-Hill/Irwin. Messier Jr, W., 2016.Auditing assurance services: A systematic approach. McGraw-Hill Higher Education. Messier Jr, W., 2016.Auditing assurance services: A systematic approach. McGraw-Hill Higher Education. Porter, B., Simon, J. and Hatherly, D., 2014.Principles of external auditing. John Wiley Sons. Skaife, H.A., Veenman, D. and Wangerin, D., 2013. Internal control over financial reporting and managerial rent extraction: Evidence from the profitability of insider trading.Journal of Accounting and Economics,55(1), pp.91-110. Songini, L. and Pistoni, A., 2012. Accounting, auditing and control for sustainability.Management Accounting Research,23(3), pp.202-204. Wang, C., Chow, S.S., Wang, Q., Ren, K. and Lou, W., 2013. Privacy-preserving public auditing for secure cloud storage.IEEE Transactions on computers,62(2), pp.362-375.