Tag Archives: LIMITATIONS

STRATEGIC APPROACH OF MICHAEL PORTER

Question:

Using relevant theories, concepts and examples, critically assess Michael Porter’s contribution to the field of strategic management.

Solution:

Introduction:

In the last three decades, strategic management has established and developed itself as an independent and distinct field of study. The influence and significance of this discipline has been increasing rapidly due to its vital role in an effective and efficient management.  This field of management has got attention from two perspectives, for the business leaders or managers it is a discipline that helps in enhancement of their existing level of performance in market place and make them competitive. On the other hand this field of management has great importance for academicians who are looking for the rationality along with the reasons behind a high performance of a firm at marketplace.

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POLITICS PHILOSOPHY & EDUCATION

QUESTION

What is the nature and purpose of educate? What are its aims and ideals

SOLUTION

Education is one of the most critical and vital aspect that plays an important role in our life. Starting from our birth till death, we are in learning phase. There is no limitation of the learning aspects in our life. At each and every point of time and situation we get some different kind of learning that makes us more knowledgeable and skilful and the effective and integrated implementation of that learning makes us more practical and experienced person in our life.

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SECURITY MEASURES IN CRYPTOGRAPHY

QUESTION

Task

Recently, ad hoc networking, as a new paradigm of wireless communication, has received numerous attentions from both academic and industry communities. A MANET represents a infrastructure-less distributed system that comprises wireless mobile nodes that can freely and dynamically self-organize into arbitrary and temporary, “ad-hoc” network topologies, allowing people and devices to seamlessly internetwork with no pre-existing communication infrastructure and central administration. Like all other networks, MANETs need security assurance for its normal operations. However, securing MANETs is particularly challenging due to its unique features.
Also, traditional security mechanisms used in infrastructure networks may be inapplicable to MANETs. For example, the dynamic and transient nature of MANETs can result in constant changes in trust among nodes. This, in turn, will create problems with key management, if cryptography is used. Standard security solutions would not be good enough since they are essentially for statically configured systems. The dynamically changing topology and movement of nodes in and out of the network raise difficulties for these standard security solutions when they are applied in MANETs.

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MARKET EQUILLIBRIUM IN ECONOMICS

QUESTION

(i).Critically appraise the IS-LM and the AD-AS models as analytical tools in explaining the macro-economy (the business cycle).

In preparing your essay, please think about the following:

  • The theoretical structure to the IS-LM and AD-AS models
  • How well do the models explain fluctuations in economic activity such as recessions and boom periods?

What are the weaknesses of these models

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DATA MODELS AND METHODS OF ACCOUNTING

QUESTION

variable names Definitions 
workingage_male (number of males between 20 and 74 years old)/(total number of males)
workingage_female (number of females between 20 and 74 years old)/(total number of females)
under5 (number of persons under 5 years old)/(total number of persons)
fivetonine (number of persons between  5 and 9 years old)/(total number of persons)
femalepresec (number of females with highest education as pre-secondary school)/(total number of females applicable)
femalesec (number of females with highest education as secondary school)/(total number of females applicable)
femaletec (number of females with highest education as technical qualification, diploma or TAFE qualification)/(total number of females applicable)
femaleter (number of females with highest education as tertiary qualification)/(total number of females applicable) 
carerownchild (number of females who care for their own children)/(total number of females applicable)
couplewithchild (number of farmilies that are couples with children)/(total number of families)
famweekinc average family weekly income 
femalemarried (number of married females)/(total number of females applicable)
childcareplaces number of child care places 

SOLUTION

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BUSINESS PLAN OF NEW BANK BRANCH

QUESTION

This Result Slip must be attached to the assignment or
assessment event being forwarded.  Ensure that you
complete all the fields of this result slip.
Version 10.2 checked in at Feb 13 2008 09:35:14
RESULT SLIP
BSBRES401A Analyse and present research info
*LA011203*
LA011203
OFFICE USE ONLY
THIS PART TO BE COMPLETED BY TEACHER
Mark:
Yes No
Teacher’s Record (Please cut off this section for your records)
Student name label:
Subject No:
LA No:
THIS PART TO BE COMPLETED BY STUDENT
Course no.
Please complete the following information:
Subject No:
BSBRES401A
LA No:
Name
OTEN no.
Student Signature:
51 Wentworth Road
Strathfield NSW 2135

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BUSINESS PLAN FOR NEW BANK BRANCH

QUESTION

This Result Slip must be attached to the assignment or
assessment event being forwarded.  Ensure that you
complete all the fields of this result slip.
Version 10.2 checked in at Feb 13 2008 09:35:14
RESULT SLIP
BSBRES401A Analyse and present research info
*LA011202*
LA011202
OFFICE USE ONLY
THIS PART TO BE COMPLETED BY TEACHER
Mark:
Yes No
Teacher’s Record (Please cut off this section for your records)
Student name label:
Subject No:
LA No:
THIS PART TO BE COMPLETED BY STUDENT
Course no.
Please complete the following information:
Subject No:
BSBRES401A
Subject Name:
Analyse and present research informatio
LA No:
Name
SAM ID

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FINANCIAL STATEMENTS AND MARKETING OF NESTLE

QUESTIONPrincipal exchange rates
CHF per 2011 2010 2011 2010
Year ending rates  Weighted average annual rates
1 US Dollar USD 0.940 0.938 0.887 1.045
1 Euro EUR 1.217 1.253 1.233 1.380
1 Pound Sterling GBP 1.450 1.454 1.421 1.606
100 Brazilian Reais BRL 50.124 56.291 52.935 59.141
100 Japanese Yen JPY 1.212 1.153 1.121 1.188
100 Mexican Pesos MXN 6.712 7.568 7.122 8.241
1 Canadian Dollar CAD 0.921 0.938 0.890 1.012
1 Australian Dollar AUD 0.954 0.955 0.913 0.957
100 Philippine Pesos PHP 2.144 2.146 2.048 2.313
100 Chinese Yuan Renminbi CNY 14.926 14.227 13.796 15.362
Consolidated Financial Statements of the Nestlé Group 2011 45
Consolidated income statement
for the year ended 31 December 2011
In millions of CHF Notes 2011 2010
Total
(a)
Continuing
operations
46 Consolidated Financial Statements of the Nestlé Group 2011
2010
(a)
(b)
Discontinued
operations
2010
(a)
Total
Sales 3 83 642  87 906  5 109  93 015
Other revenue  128  109  —    109
Cost of goods sold (44 127)  (44 775)  (1 074)  (45 849)
Distribution expenses (7 602)  (7 953)  (125)  (8 078)
Marketing and administration expenses (17 395)  (19 846)  (1 276)  (21 122)
Research and development costs (1 423)  (1 403)  (478)  (1 881)
Other trading income 4  51  168  —    168
Other trading expenses 4 (736)  (1 530)  —    (1 530)
Trading operating profit 3 12 538  12 676  2 156  14 832
Other operating income 4  112  38  24 535  24 573
Other operating expenses 4 (179)  (571)  (14)  (585)
Operating profit 12 471  12 143  26 677  38 820
Financial income 13  115  72  22  94
Financial expense 13 (536)  (834)  (13)  (847)
Profit before taxes and associates 12 050  11 381  26 686  38 067
Taxes 14 (3 112)  (3 343)  (350)  (3 693)
Share of results of associates 15  866  1 010  —    1 010
Profit for the year 9 804  9 048  26 336  35 384
of which attributable to non-controlling interests  317  271  880  1 151
of which attributable to shareholders of the parent (Net profit) 9 487  8 777  25 456  34 233
As percentages of sales
Trading operating profit 15.0% 14.4% 42.2% 15.9%
Profit for the year attributable to shareholders of the parent
(Net profit) 11.3% 36.8%
Earnings per share (in CHF)
Basic earnings per share 16  2.97  2.60  7.56  10.16
Diluted earnings per share 16  2.96  2.60  7.52  10.12
(a)  2010 restated following the changes in the Income Statement described in Note 1 – Accounting Policies.
(b)  Detailed information related to Alcon discontinued operations is disclosed in Note 2.
Consolidated statement of comprehensive income
for the year ended 31 December 2011
In millions of CHF 2011 2010
Profit for the year recognised in the income statement 9 804 35 384
Currency retranslations (1 166) (4 801)
Fair value adjustments on available-for-sale financial instruments
– Unrealised results (199) 227
– Recognition of realised results in the income statement 7 (10)
Fair value adjustments on cash flow hedges
– Recognised in hedging reserve (423) 704
– Removed from hedging reserve (42) (752)
Actuarial gains/(losses) on defined benefit schemes (2 503) (153)
Share of other comprehensive income of associates 456 (89)
Taxes 859 268
Other comprehensive income for the year (3 011) (4 606)
Total comprehensive income for the year 6 793 30 778
of which attributable to non-controlling interests 284 941
of which attributable to shareholders of the parent 6 509 29 837
Consolidated Financial Statements of the Nestlé Group 2011 47
Consolidated balance sheet as at 31 December 2011
before appropriations
In millions of CHF Notes 2011 2010
Assets
Current assets
Cash and cash equivalents 13/17 4 938 8 057
Short-term investments 13 3 050 8 189
Inventories 5 9 255 7 925
Trade and other receivables 6/13 13 340 12 083
Prepayments and accrued income  900  748
Derivative assets 13  731 1 011
Current income tax assets 1 094  956
Assets held for sale  16  28
Total current assets 33 324 38 997
Non-current assets
Property, plant and equipment 7 23 971 21 438
Goodwill 8 29 008 27 031
Intangible assets 9 9 356 7 728
Investments in associates 15 8 629 7 914
Financial assets 13 7 161 6 366
Employee benefits assets 10  127  166
Current income tax assets  39  90
Deferred tax assets 14 2 476 1 911
Total non-current assets 80 767 72 644
Total assets 114 091 111 641
48 Consolidated Financial Statements of the Nestlé Group 2011
Consolidated balance sheet as at 31 December 2011 (continued)
In millions of CHF Notes 2011 2010
Liabilities and equity
Current liabilities
Financial debt 13 16 100 12 617
Trade and other payables 13 13 584 12 592
Accruals and deferred income 2 909 2 798
Provisions 12  576  601
Derivative liabilities 13  646  456
Current income tax liabilities 1 417 1 079
Liabilities directly associated with assets held for sale  —    3
Total current liabilities 35 232 30 146
Non-current liabilities
Financial debt 13 6 207 7 483
Employee benefits liabilities 10 7 105 5 280
Provisions 12 3 094 3 510
Deferred tax liabilities 14 2 060 1 371
Other payables 13 2 119 1 253
Total non-current liabilities 20 585 18 897
Total liabilities 55 817 49 043
Equity 18
Share capital  330  347
Treasury shares (6 722) (11 108)
Translation reserve (16 927) (15 794)
Retained earnings and other reserves 80 116 88 422
Total equity attributable to shareholders of the parent 56 797 61 867
Non-controlling interests 1 477  731
Total equity 58 274 62 598
Total liabilities and equity 114 091 111 641
Consolidated Financial Statements of the Nestlé Group 2011 49
Consolidated cash flow statement
for the year ended 31 December 2011
In millions of CHF Notes 2011 2010
Operating activities
Profit for the year 9 804 35 384
Non-cash items of income and expense 17 3 039 (20 948)
Decrease/(increase) in working capital 17 (1 837) (632)
Variation of other operating assets and liabilities 17 (1 243) (196)
Operating cash flow
(a)
Investing activities
Capital expenditure 7 (4 779) (4 576)
Expenditure on intangible assets 9 (247) (408)
Sale of property, plant and equipment 111 113
Acquisition of businesses 2 (3 742) (5 582)
Disposal of businesses 2 7 27 715
Cash flows with associates 357 254
Inflows/(outflows) from non-current financial investments (1 802) (2 528)
Other investing cash flows (448) (439)
Cash flow from investing activities
(a)
Financing activities
Dividend paid to shareholders of the parent 18 (5 939) (5 443)
Purchase of treasury shares 17 (5 480) (12 135)
Sale of treasury shares 527 278
Cash flows with non-controlling interests (266) (791)
Bonds issued 595 1 219
Bonds repaid (1 751) (832)
Inflows from other non-current financial liabilities 93 130
Outflows from other non-current financial liabilities (93) (225)
Inflows/(outflows) from current financial liabilities 3 504 (2 174)
Inflows/(outflows) from short-term investments 6 452 (5 835)
Cash flow from financing activities
(a)
Currency retranslations 19 (117)
Increase/(decrease) in cash and cash equivalents (3 119) 2 232
Cash and cash equivalents at beginning of year 8 057 5 825
Cash and cash equivalents at end of year 17 4 938 8 057
(a)  Detailed information related to Alcon discontinued operations is disclosed in Note 2. In 2010, even if Alcon’s assets and liabilities were classified as held for sale,
individual lines of the cash flow statement comprise Alcon’s movements until disposal.
50 Consolidated Financial Statements of the Nestlé Group 2011
9 763 13 608
(10 543) 14 549
(2 358) (25 808)
Consolidated statement of changes in equity
for the year ended 31 December 2011
In millions of CHF
Total equity
attributable to
shareholders
Retained
earnings and
other reserves
Translation
reserve
Treasury
shares
Share
capital
Consolidated Financial Statements of the Nestlé Group 2011 51
Total
equity
Non-controlling
interests
of the parent
Equity as at 31 December 2009 365 (8 011) (11 175) 67 736 48 915 4 716 53 631
Profit for the year 34 233 34 233 1 151 35 384
Other comprehensive income for the year (4 619) 223 (4 396) (210) (4 606)
Total comprehensive income for the year (4 619) 34 456 29 837 941 30 778
Dividend paid to shareholders of the parent (5 443) (5 443) (5 443)
Dividends paid to non-controlling interests (729) (729)
Movement of treasury shares (net)
(11 859) 77 (11 782) (11 782)
Equity compensation plans 179 2 181 19 200
Changes in non-controlling interests (146) (146) (4 216) (4 362)
Adjustment for hyperinflation
(b)
(a)
305 305 305
Reduction in share capital (18) 8 583 (8 565) — —
Total transactions with owners (18) (3 097) (13 770) (16 885) (4 926) (21 811)
Equity as at 31 December 2010 347 (11 108) (15 794) 88 422 61 867 731 62 598
Profit for the year 9 487 9 487 317 9 804
Other comprehensive income for the year (1 133) (1 845) (2 978) (33) (3 011)
Total comprehensive income for the year (1 133) 7 642 6 509 284 6 793
Dividend paid to shareholders of the parent (5 939) (5 939) (5 939)
Dividends paid to non-controlling interests (226) (226)
Movement of treasury shares (net)
(4 615) (355) (4 970) (4 970)
Equity compensation plans 175 5 180 180
Changes in non-controlling interests
(a)
(996) (996) 688 (308)
Adjustment for hyperinflation
(b)
(c)
146 146 146
Reduction in share capital (17) 8 826 (8 809) — —
Total transactions with owners (17) 4 386 (15 948) (11 579) 462 (11 117)
Equity as at 31 December 2011 330 (6 722) (16 927) 80 116 56 797 1 477 58 274
(a)  Movements reported under retained earnings and other reserves mainly relate to written put options on own shares.
(b)  Relates to Venezuela, considered as a hyperinflationary economy.
(c)  Movements reported under retained earnings and other reserves include a put option for the acquisition of non-controlling interests.
Notes
1. Accounting policies
Accounting convention and accounting standards
The Consolidated Financial Statements comply with
International Financial Reporting Standards (IFRS) issued
by the International Accounting Standards Board (IASB)
and with the Interpretations issued by the International
Financial Reporting Interpretations Committee (IFRIC).
The Consolidated Financial Statements have been
prepared on an accrual basis and under the historical
cost convention, unless stated otherwise. All significant
consolidated companies and associates have a 31 December
accounting year-end.
The preparation of the Consolidated Financial
Statements requires Group Management to exercise
judgement and to make estimates and assumptions that
affect the application of policies, reported amounts of
revenues, expenses, assets and liabilities and disclosures.
These estimates and associated assumptions are based
on historical experience and various other factors that are
believed to be reasonable under the circumstances. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the
period of the revision and future periods if the revision
affects both current and future periods. Those areas affect
mainly provisions, goodwill impairment tests, employee
benefits, allowance for doubtful receivables, share-based
payments and taxes, and key assumptions are detailed in
the related notes.
Scope of consolidation
The Consolidated Financial Statements comprise those
of Nestlé S.A. and of its affiliated companies, including
joint ventures and associates (the Group). The list of the
principal companies is provided in the section “Companies
of the Nestlé Group.”
Consolidated companies
Companies, in which the Group has the power to exercise
control, are fully consolidated. This applies irrespective of
the percentage of interest in the share capital. Control
refers to the power to govern the financial and operating
policies of a company so as to obtain the benefits from
its activities. Non-controlling interests are shown as
a component of equity in the balance sheet and the share
of the profit attribu table to non-controlling interests is
shown as a component of profit for the year in the income
statement.
Proportionate consolidation is applied for companies
over which the Group exercises joint control with partners.
The individual assets, liabilities, income and expenses are
consolidated in proportion to the Nestlé participation in
their equity (usually 50%).
Newly acquired companies are consolidated from the
effective date of control, using the acquisition method.
Associates
Companies where the Group has the power to exercise
a significant influence but does not exercise control are
accounted for using the equity method. The net assets
and results are adjusted to comply with the Group’s
accounting policies. The carrying amount of goodwill
arising from the acquisition of associates is included in
the carrying amount of investments in associates.
Venture funds
Investments in venture funds are recognised in accordance
with the consolidation methods described above, depending
on the level of control or significant influence exercised.
Foreign currencies
The functional currency of the Group’s entities is the
currency of their primary economic environment.
In individual companies, transactions in foreign
currencies are recorded at the rate of exchange at the
date of the transaction. Monetary assets and liabilities in
foreign currencies are translated at year-end rates. Any
resulting exchange differences are taken to the income
statement.
On consolidation, assets and liabilities of Group entities
reported in their functional currencies are translated into
Swiss Francs, the Group’s presentation currency, at yearend
exchange
rates.
Income
and
expense
items
are

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