MAIN ROUTER

Hostname: R4

Label: R4 (ISP)

Password: 2621

MAIN SWITCH

Hostname: SW0

Label: Switch0

Password: 2950

SWITCH 1

Hostname: SW1

Label: Switch1

Password: 001

SWITCH 2

Hostname: SW2

Label: Switch2

Password: 002

SWITCH 3

Hostname: SW3

Label: Switch3

Password: 003

SWITCH 4

Hostname: SW4

Label: Switch4

Password: 004

SWITCH 5

Hostname: SW5

Label: Switch5

Password: 005

The network connection for the workstations are acquired through the main router by the main switch which connects to the router and the 4 switches through VLANs in trunk mode. The workstations obtain their connections through DHCP configuration. Switches 1-4 are provide connections to the workstations in the 4 networks through the Data VLAN 11 using the primary network 172.16.11.0. Switch 5 provides connections to servers for managing the network through the Management VLAN 99 using the primary network 172.16.99.0.

The main router and main switch is located in closet 1, the rest of the switches, workstations and the server are located in closet 2.

Bibliograpghy

Al-Joboury, I. M., & Al-Hemiary, E. H. (2018). IoT-F2CDM-LB: IoT Based Fog-to-Cloud and Data-in-Motion Architectures with Load Balancing.

Kenawell, B., Phelan, B., Sherbondy, K. D., & Narayanan, R. (2016). NETGEAR ProSAFE M4300 Series 10-GbE Switch Tutorial (No. ARL-TN-0803). Army Research Laboratory Adelphi United States.

Dealing with  ATC Privatization

Overall point of argument

ATC privatization would help various countries to scale up a good number of their operations and ensure that multiple goals are met in real time without any barrier being encountered. Moreover, the privatization will also speed up the implementation of the next generation. Interestingly, the argument uses quite some approaches to capture the attention of the audience regarding the privatization of ATC.

Claims and assumptions

 Claim#1: The methods that are implemented by this mode of reasoning are well structured, clear and also don’t contain any complications at all.

Assumptions: It starts by pinpointing some of the essential issues related to ATC privatization and how various people together with organizations have been able to handle these issues. The argument goes further to indicate how involving it is to work on multiple aspects that are related to ATC privatization to come up with the desired outcome

Claim#2: The information that the argument presents is unique and has got the capability of talking about some of the essential areas where other cases usually find it difficult to speak of (Annarelli & Nonino, 2016).

Assumptions: It goes further to use quite a number of questions to refer to various conditions and at the same time it also carries a comparison of multiple organizations in terms of their mode of operations, where, the argument itself fully supports the actions made by private organizations since they tend to perform better than quite a number of government agencies. This type of comparison brings on board a clear understanding of what is taking place within the organizations.

Claim#3: The argument consists of quite some elements that clearly show what is entailed within the boundaries of ATC privatization.

Assumptions: One good thing about the case is that it starts by talking about one fundamental question that tries to bring a comparison between a private organization and a public agency. Moreover, this is a question that tends to capture the attention of the audience by trying to bring on board some comparison condition regarding which organization is more efficient than the other.

 Claim#4: Quite some airlines have been able to come on board were a good number of them are supporting the implementation of privatization.

Assumptions: This is as a result of the positive outcome that is being experienced from various issues that are within the boundaries of privatization.

Claim 5:  The case gives an illustration that even except delta airlines; the entire airline industry still supports various aspects that are related to ATC privatization.

Assumptions: This support is intended to bring the desired outcome within the stipulated time frame.

Moreover, quite some issues have been received regarding the ability to carry out an introduction of the ATC reforms under various reasonable conditions. The argument itself values all the benefits that are likely to be brought about by issues dealing with ATC privatization, and due to this, there are quite some positive points of view pertaining various situations that are brought on board as a result of the privatization.

Evidence and support

Evidence and support for claim#1: It also links the privatization with the top management officials of quite some senior management officials of various organizations clearly illustrating their reactions on how these issues are handled under any circumstances. The argument goes further to postulate that a private organization would develop the capability of scaling up its capital thus taking the analysis to be the next level for a given individual to understand what is taking place. This is an argument that has quite some strengths attached to it. It is because of all its strengths that any person who reads through the argument can understand what is taking place under various circumstances. First and for most, it presents nearly all the points in a clear and precise manner thus avoiding any controversies that are likely to emerge. The argument that is presented in the paper that talks about uncertain funding levels together with several other challenges to illustrate why the changes to the ATC system are slow, has been used to illustrate a certain negative condition that is capable of taking place.

Evidence and support for claim#2: Technology is a parameter that has been implemented within the argument where its condition is said to be obsolete before its introduction is carried out since all the effort of FAA appears to be encountering some barrier related condition as a result of political activities (Seiden & Johnson, 2017). The argument goes on to carry out some connection between quite some airlines and privatization by making it clear that airlines are in favor of the known privatization. Moreover, there are some conditions for interest that the argument displays as far as airlines for America are concerned.

Evidence and support for claim#3: The argument uses this condition to point out how the airlines have been on the forefront to fight for privatization together with the ability to introduce quite some ATC reforms at a more reasonable rate (Rattikin, 2017). On the other hand, the argument tries to point out how various organizations have also been supporting ATC privatization. This has been clearly shown at the point where the National Air Traffic Association has been able to come on board to support the privatization (Putnam, Clabbers & Osit, 2017).

Evidence and support for claim#4: According to the argument, there are some conditions that have also been brought on board regarding the entire situation where NATCA welcomes the ATC privatization so long as it doesn’t cause any impact to most of the existing work protections, healthcare benefits together with the pay levels of various personalities (Gond, Cabantous, Harding & Learmonth, 2016). At the same time, this argument tries to connect ATC privatization with what is taking place at the international platform by measuring its effectiveness about how various countries can view it. According to the argument, countries like Canada, the United Kingdom, and even Germany have been able to highlight some of the benefits that they have received from matters about privatization. It further supports the situation with solid evidence on how various proponents including the airlines have been able to gain interest in implementing a system that is almost the same as the one operating within the boundaries if Canada. This is a technique that the argument uses to clearly show how various interests are likely to emerge most so when issues about privatization are brought into consideration (Barry & Wilkinson, 2016). Another strength that is connected to this argument is that it also highlights some of the benefits that are likely to be obtained from the implementation of various aspects of privatization. It, therefore, uses the next generation as an example to this kind of situation where it clearly states that the next generation represents the efforts adopted by the FAA in terms of modernizing the entire infrastructure that is associated with the national aerospace. Moreover, the argument moves to the other side and brings on board the point of view of various personalities clearly represented by the office of the inspector general who despite all the efforts brought on board by FAA, went ahead to document a report that postulated that FAA lacks a reasonably developed kind of framework that would help them to manage the overall oversight attached to the coming generation. Within the argument, the nature of the transition has also been talked about where it has been regarded as a condition that is taking too long and at the same time appears to be too expensive than what is expected of it (Forsberg, 2016).

Evidence and support for claim#5: A comparison has been used to compare the transition and a private contractor who appears to have the latitude and all the other resources required to carry out the duty within a short period and in an efficient manner. According to the argument, nearly all the benefits that are brought on board as a result of ATC privatization are much clear and can easily be understood without any conditions of controversies or even contradictions (Sturges, Conway, Guest & Liefooghe, 2015). Additionally, it talks about the condition of the United States in terms of hoe it enjoys the existing privileges associated with the safest air transportation system not only at the regional level but at the international level. According to the argument, it further raises some question that in as much as there is an increase in the national airspace system in terms of its congestion together with its complexity, for how long wills the entire ATC system be able to maintain the current safety conditions that are related to aviation safety? This is a crucial question that the argument uses to capture the attention of the audience and expose the audience to a condition of thinking about the situation beyond the boundaries to attain the intended outcome (Lee, Shiue & Chen, 2016). Additionally, the argument highly values a privatized ATC system and strongly backs it up with solid evidence by clearly stating that it is a system that would appear to be highly responsive to all the needs of a particular type of user (Greenberg, 2016). Besides, the argument also believes that any privatized ATC system, possess quite some financial resources that are required to bring on board quite some changes (Bolen, 2017). The whole argument tends to present some weakness that is attached to it. At some point, it conducts a comparison of various situations but doesn’t provide enough analysis aimed towards expanding more on a given situation (Bormann & Rowold, 2016). Moreover, the argument tries to focus on serious elements of ATC privatization and where it connects the privatization to quite some organizations and personalities. About all the points that are displayed by the whole argument, its analysis major revolves around providing adequate and reliable information that are well documented and easy to understand (Scott, 2017). This situation has given it an added advantage to fully develop its strengths for people to be able to understand what is going on. Moreover, the argument also tries to be diverse since it talks about quite some events that tend to take place both at the local, regional and even at the international level. Interestingly, it does this by clearly presenting the point of view of various personalities together with organizations (de Almeida, Weigang, Meinerz & Li, 2016). Also, the entire argument tries to be different from the rest of arguments since it places much focus in implementing ethical considerations in all the presented points of view to create boundaries and bring a clear understanding of what is taking place.  The ability of national traffic controllers association to support ATC privatization clearly shows the relationship that exists, and The argument, therefore, puts it clear that people are ready to implement the changes that are likely to occur as a result of bringing on board a good number of issues that are related to ATC privatization. 

Conclusion

ATC privation appears to have quite a number of benefits associated with it; many organizations together with their respective stakeholders have been able to benefit from various aspects involving ATC privatization. Moreover, its implementation involves quite a number of issues that are being carried out in an adequate and reliable manner in order to come up with the desired outcome.  ATC privatization has gained popularity across many organizations most so the ones who have developed the potential of adequately implementing it in a reasonable manner. Senior management teams of each and every organization should be ready to implement various strategies that are required most so when dealing with this kind of privatization.

 Adequate and reliable ethical considerations during its implementation will ensure that appropriate outcome is met in real time. One good thing about this ATC privatization is that it fully supports the way a given organization carries out its operations thus bringing on board some form of understanding between the top management team and the senior officials of a given organization. It is capable of adequately offering a clear description of what a given organization is capable of doing under various circumstances. For this mode of privatization to be implemented in an appropriate manner, quite a number of procedures need to be followed without making any assumptions. Normally, those organizations that have been able to fully support issues associated with ATC privatization, have been able to ensure that the entire process doesn’t interfere with most of their rules and regulations at any given point. This further provides an adequate and reliable opportunity to carry out various operations without encountering any form of barrier related issues.

References

Annarelli, A., & Nonino, F. (2016). Strategic and operational management of organizational

            resilience: Current state of research and future directions. Omega, 62, 1-18.

Bolen, E. (2017). АТС Privatization Is Unconstitutional. The Air and Space Lawyer, 30(2).

Bormann, K. C., & Rowold, J. (2016). Ethical leadership’s potential and boundaries in

            organizational change: A moderated mediation model of employee silence. German

 Journal of Human Resource Management, 30(3-4), 225-245.

Barry, M., & Wilkinson, A. (2016). Pro‐social or pro‐management? A critique of the conception

            of employee voice as a pro‐social behaviour within organizational behaviour. British

            Journal of Industrial Relations, 54(2), 261-284.

de Almeida, C. R., Weigang, L., Meinerz, G. V., & Li, L. (2016). Satisficing Game Approach to

            Collaborative Decision Making Including Airport Management. IEEE Transactions on

            Intelligent Transportation Systems, 17(8), 2262-2271.

Forsberg, R. (2016). Conditions affecting safety on the Swedish railway–Train drivers’

            experiences and perceptions. Safety science, 85, 53-59.

Gond, J. P., Cabantous, L., Harding, N., & Learmonth, M. (2016). What do we mean by

            performativity in organizational and management theory? The uses and abuses of

Greenberg, J. (2016). Organizational justice: Yesterday, today, and tomorrow. Journal of

            management, 16(2), 399-432.

Lee, J. C., Shiue, Y. C., & Chen, C. Y. (2016). Examining the impacts of organizational culture

 and top management support of knowledge sharing on the success of software process

improvement. Computers in Human Behavior, 54, 462-474.

Putnam, J. E., Clabbers, N. M., & Osit, S. L. (2017). The View from the Ground: Airport and

            Community Perspectives on АТС Reform. The Air and Space Lawyer, 30(2).

Rattikin, L. (2017). Air Traffic Control in the United States: Is Privatization the Path Back to the

            Top. J. Air L. & Com., 82, 651.

Seiden, S. J., & Johnson, K. B. (2017). Integration through Separation: Why an ATC Split Could

            Be a Hit for Drones. The Air and Space Lawyer, 30(4), 4-8.

Scott, P. F. (2017). Authority to Carry in the United Kingdom: The Right to Travel, the

            Privatization of Security and the Rule of Law. European Public Law, 23(4), 787-810.

performativity. International Journal of Management Reviews, 18(4), 440-463.

Sturges, J., Conway, N., Guest, D., & Liefooghe, A. (2015). Managing the career deal: The

            psychological contract as a framework for understanding career management,

 organizational commitment and work behavior. Journal of Organizational Behavior:

            The International Journal of Industrial, Occupational and Organizational

            Psychology and Behavior, 26(7), 821-838.

Managing Energy Resources

Introduction

Measures and policies targeting the demand of energy picked up in the last few decades in response to oil shocks of the year 1970s. Since that time there has been a growing sense of the economies to the prices of oil. The demand related policies have always aimed at influencing the patterns and quantities of the energy that have traditionally been referred to as the Demand –Side Management plans. Such a program includes the demand response as well as the energy efficiency policies. The improvements in energy efficiency can bring with it very many benefits.

Some of the benefits include reduced energy infrastructure investment, reduced prices of electricity, increased the security of energy, improved quality of the environment among others. It has been estimated by the scientist that by 2050, the greenhouse emission ought to have been reduced by almost 50%( Musalem et al.2017). This will assist to avoid the worst case scenario of the changes in climate. In such contexts, it is the sector of the building that takes the center stage of every national strategy of climate change(Mitchell et al.2016). This is because this particular sector alone is responsible for over 30% of the global annual emissions of GHG and accounts for 40% of the entire consumption of energy as per the UNEP report of the year 2009.

Also, there is very concrete evidence in regard to the cost-effectiveness of the measures of the efficiencies as opposed to the programs of renewables. In the UK, in particular, the reconfiguration and the renewal of electricity networks have been considered to be the major challenges to the sector of the electricity that has never been experienced before. The challenges have been considered relevant in the recognition of the value of the consumers who have remained active in the sector(Musalem et al.2017). Their participation is considered in shifting of the load and therefore very interesting in the patterns of the demand of energy as per the quantities.

There is substantial experience among those countries that have been embracing the policy document so as to have an improvement in the overall efficiency as per the consumption of energy. These experiences have been assessing by several studies, Some researchers, for example, reviewed the intensity of the trends from the year 1973 to 2003. The focus has been on the specific policies adopted by countries like the USA, Japan as well as the UK. There has been conduction of the energy efficiency by the World Energy Council in at least 70 countries including some of the most effective categories of policies(Mitchell et al.2016).

Also, there has been the publication of several reports by the United National Environment Programme Sustainable Buildings & Climate Initiative (UNEP-SBCI) on the implementation of the policies of energy by various states. These publications have acted as the potential references for the trends that have been observed in various countries. In this particular paper, the focus is on the policies of DSM that includes the demand response, demand reduction, and distributed generation. These are considered as the targets to the residential demands for heat as well as electricity. The objective here is to properly evaluate the obstacles and incentives in the implementations of the DSM strategies while making reference to various policy factors in the implementation of

• Demand Side Response
• Distributed Generation
• Demand Reduction.

Key features in the residential energy demand

Residential sectors and energy efficiency measures

One of the effective measures in overcoming the challenges facing the energy sector is by having proper energy efficiency. The definition of the energy efficiency improvement in this context is the reduction in the energy that is used for particular services like lighting and heating or the stages of the undertaking without affecting or changing the level of end users. To assess the energy efficiency in countries like the UK has never been an easy task. The indicators of the energy at the scale of the economy like the ratio of the total final consumption to the country’s GDP as utilized as the proxies for the efficiencies of energy. This will later be translated into the assessment of how the country is doing in terms of the measures to have demand reduction. Such acts of the aggregation which are of high level conceal specific trends and therefore the measurements become a very rough exercise(Mitchell et al.2016).

Taking an example, the structural components of energy demand in residential areas will include floor area per capita, appliance ownership per capita and finally the persons per household. Each of these factors does not only drive the demand for energy services but also key drivers in the per capita energy use. These components are dependent on the income distribution, demographics as well as climate(Oredope et al.2013). They may not be necessarily be influenced by the measures of the energy efficiencies. The amount of energy that is used in the production of the specific given level of output is called the energy intensity.

Distributed Generation

This is an approach that has been used in the UK to have the production of electricity close to the end power users. It has actually been used in small scale production industrial units. It is actually made of the generators that have actually been of benefit to the sector at large. This kind of approach takes place at two levels that are the endpoint level and the local level. The local level has included the use of renewable sources of energy like wind turbines and solar systems. The endpoint level applies to the individual energy as evident in the modular internal combustion engine. Its measurement is in terms of the quantity of the energy required for the performance of a particular task. In the residential sectors, the measurement of the intensity of the energy can be done in terms of the household per capitated energy intensity is reduced with increased energy efficiency. This is explained by the changes in the structures like the household number as well as an increase in the number of appliances. All of these factors have a gradual offset effect on the improvement of the efficiency of energy through insulation as well as heating(Mitchell et al.2016).

Demand Side Response

The demand side response has been considered as for how the electricity is utilized rather than how it is generated. When the total demand of the electricity in the entire the UK goes high, the consumers are linked to the Great British Bake Off final. During this period, electricity can be used more intelligently rather than just having a mere system of generation. Such initiatives may include having supermarkets switching of their fridges. As well as factories delaying their intensive processes that demand a lot of power. The turning to the performance in these sectors in terms of the policies, the studies of the ex-post is normally hard to find. They are not publicly available(Mitchell et al.2016).

They are not just in existence but if they do then they face challenges due to the shortage of the data and variation in the methods of the evaluation, verification and measurement protocol. It is difficult for a consensus to be established in terms of the quantification of the auxiliary benefits that are considered ancillary. The last factor that must also be considered is the country’s specific factor is the analysis of the demand side strategies(Lönnegren and Jyrinki 2016). The implementation of the policies is normally done within complex economic, cultural and political environments. There is interaction with other policies from the synergies that finally weaken their effects or trigger their impacts(Snoeck, Merchant and Winkenbach 2018).

 By considering the disaggregated indicators of energy, there is a common revelation of the importance of the residential sector. The demand for energy from the residential buildings accounts for over 40% worldwide as the primary consumption(Zhang, Jiao and Chen 2017). This figure is projected to increase by almost 3.1% in the whole world In the case of the UK, the household account for over 30% of the total consumption of energy thereby representing an increase of 5.8% as per the data collected between 1990 and 2006 with the decline of 6.5% being realized between the year 2000 and 2007. The residential sector thus becomes a major component of the strategy in the DSM. The potential of this intuitive has been intractable as a result of the range of barriers.

Obstacles to Demand Side response

Most of the businesses do not have an idea of what DSR is all about while other firms interpret it as an indication of the power shortage in a country. This is however not the case. DSR is just but one of the efficient and more economical ways of using the resources that are already in place.

The other obstacle is that DSR has never been accorded a level platform for performance evaluation. In the present DSR, only 0.45GW of the DSR was generated against 42GW of the entire existing generation. In terms of the contract award, the DSR can only secure a 1-year contract as opposed to other approaches that can secure up to 2 years (Koch and Honeywell 2017).

There are shortages of policies that govern the implementation of the DSR in the UK as a result people have little understanding of its operation mechanisms.

The budgetary allocation for this program has been very little with funds being drawn from supplementary budget. This has impacted negatively the establishment of the research institutions to further studies on how to fine tune the process. Apparently there are no institutions that focus specifically on the DSM programs.

The residential trends and potential for the demand reduction

The efficiency of the energy improvements for the case of the households in the UK  has been significantly knowing since the year  2000 as opposed to the aggressive periods of 19973 when driving force was a response to the oil shock. In the UK the factors that are responsible for pushing demand for energy include an increase in the demand for heating space that apparently accounts for over 60% of the entire residential energy demand(Musalem et al.2017).

The researchers have assisted in the provision of an overview of the household energy being used per capita and the discoveries made is that space heating accounts for the 53% of the energy of the household used as at 2005. What has been found to be interesting for the examination is  the decomposition over time

Figure 1: Graphical analysis showing energy consumption by UK(Mitchell et al.2016).

As can be seen from the graphical analysis above, the energy use in the household for lighting and other household appliances is the most increased category over time. The research work further indicated that there is a wide variation among those states as far as the in per capita energy use in the household is concerned and less pronounced when there is climate control. This happens when the values are normalized in accordance with the heating degree days. The further decomposing the effects of the structure and the intensities of the end-use give a much more accurate picture of how the comparison is done(Lertjanyakit  and Bunchapattanasakda 2016)

Taking for the case of the space heating as illustrated in the figure below, the variation can be easily observed. For most regions, a reduction in the energy intensity from the insulation procedures that are improved has not only dominated but also led to the reductions in space heating per capita. There has been dominance from the structural effect although the larger dwellings in the UK with very few occupants have resulted in an increase in the space heating per capita.

Obstacles to demand reduction and Distributed Generation

The energy use trend that has been discussed is a reflection of several barriers to the demand as well as response to energy efficiency. The effects as reflected in distributed generation as well as in demand reduction have been greatly felt(Lönnegren and Jyrinki 2016). There is actually a substantial literature on the energy efficiency barriers or obstacles. Also in disposal are the importance of responses that are considered appropriate in overcoming the obstacles. There has been distinction offered by several authors between the market failures which results from a flow in market operations and barriers in the market which stems from obstacles other than market-driven(Musalem et al.2017).

Many policies have been put into practice in various places to address the issue of the DSM with reference to the demand reduction as well as distributed generation.. Also, there has been a considerable potential that has remained unchanged since the beginning of the implementation processes of such programs(Jamii and Mimouni 2018). These efforts have actually been meant to overcome the barriers. The barriers that affect the performance of the demand response are closely connected to the failure of the market information system. This includes imperfect information and other defective incentives. There has been negligence o the demand response in the processes of the policy-making until very recently when it was discovered that it should be largely considered. The support from the policy-making is slowly growing within every member states that practice the same(Mouelhi, Sethom, and Slama 2014).

Table 1: Barriers verses possible solutions(Mitchell et al.2016).

Incentives

Management policies of the demand side

The barriers that have been shortlisted above have fronted some form of the activities that can be used as part of the solution to the main problems. The policies that are enacted are meant to encourage both economic efficiency and energy efficiency as well. In the cases of the electricity where the prices for the generation keep fluctuating, the aspect of timing is very important. It has been discovered that the cost of the production of electricity is relatively high during the peak period. This is because then there has to be a supply of the peak-load generators to meet the demand(Fernandes et al.2015)..

 It is unfortunate that the majority of the consumers are never exposed to these changes so that they can enjoy some little incentives of shifting the consumption when it is too expensive for the production. This lack of demand response affects future peak-load plant investments in the UK. The ability to effectively match the supply reliability and demand has never been easier. The process of DSM includes measures of energy efficiency as well as the demand response like the management of the loads, electrification activities among others. Some of these activities have evolved to ensure that there are effective changes in the structures of the industries and also changes in the priorities of policymaking. The administration of the DSM can be done by the state agencies, utilities or the non-profit making organizations(Divali and Choi 2016).

The literature sources that are available in regard to the packages of policies have identified almost 18 policies that are directly linked to the residential sector. These policies can further be classified into six general categories as summarized in the table below. Although some of these policies are closely linked together, others are actually overlapping. The study, however, focused on the evaluation by the use of the criteria that had been laid down by the UNEP. In this criteria, the policies have been evaluating based on their strengths, effectiveness, and weaknesses.

The energy White Paper of 2007 has outline the strategies to be used in the in the adoption of DSM programs. There are proposed amendments to this sections so as to allow for establishment of vibrant institutions that will further this idea.

The advanced technology that is required would mean using a lot of funds that must be allocated by the government through its financial policies.

Table 2: Incentive policy summary(Mitchell et al.2016).

Conclusion

This particular study focused on the analysis of the wide range of policies that are linked to the demand side as implemented in the UK. These include those policies that are concerned with the improvement of the general efficiencies while reducing the demand as well. Collectively such policies will lead to the improved econ0omic efficiencies of the country. The focus has therefore been on the demand-side strategies including the packages whose aim is to ensure that the barriers that are coordinated and coherent are properly addressed. This kind of approach will lend itself a perfect policy making of the demand –side process.

References

Divali, P.H., and Choi, B.J., 2016, July. Indirect demand-side management program under real-time pricing in smart grids using the oligopoly market model. In Proceedings of the First International Conference on Green Communications, Computing and Technologies (GREEN 2016), Nice, France(pp. 24-28).

Fernandes, F., Carreiro, A., Morais, H., Vale, Z., Gastaldello, D.S., Do Amaral, H.L. and De Souza, A.N., 2015, October. Management of Heating, Ventilation and Air Conditioning system for SHIM platform. In 2015 IEEE PES Innovative Smart Grid Technologies Latin America (ISGT LATAM) (pp. 275-280).

Jamii, J. and Mimouni, F., 2018, March. Model of wind turbine-pumped storage hydro plant. In 2018 9th International Renewable Energy Congress (IREC) (pp. 1-6). IEEE.

Koch, E., Honeywell International Inc, 2017. Demand response management system. U.S. Patent , 108, pp.89-94..

Lertjanyakit, H. and Bunchapattanasakda, 2016 C., The Analysis of Thai Students Determinant to Study in The United States of America and The United Kingdom.; (pp. 275-280)

Lönnegren, G. and Jyrinki, M., 2016. A descriptive analysis of the emergency response to the 2013 flood incident in Suffolk, UK-A study in theory and practice; , 100, pp.1-8.

Mitchell, C., Lockwood, M., Hoggett, R. and Kuzemko, C., 2016, September. Governing for Innovation Without Disruption in Energy Systems. In BIEE International Conference (pp. 1-21).

Mouelhi, F., Sethom, H.B.A. and Slama-Belkhodja, I., 2014, November. Fast event detection method for residential load Demand Side Management. In 2014 International Conference on Electrical Sciences and Technologies in the Maghreb (SYSTEM) (pp. 1-7). IEEE.

Musalem, A., Olivares, M., Borle, S., Che, H., Conlon, C.T., Girotra, K., Gupta, S., Misra, K., Mortimer, J.H., Vulcano, G. and Zheng, F., 2017. A Review of Choice Modeling in the Marketing-Operations Management Interface. , 12, pp.23-34.

Oredope, A., McConnell, A., Peoples, C., Singh, R., Gonsalves, T.A., Moessner, K. and Parr, G.P., 2013, April. Cloud Services in Mobile Environments-The IU-ATC UK-India Mobile Cloud Proxy Function. In European Wireless 2013; 19th European Wireless Conference (pp. 1-7). VDE.

Snoeck, A., Merchant, D. and Winkenbach, M., 2018. Revenue Mangement in Last-Mile Delivery: State-of-the-Art and Future Research Directions. , 106, pp.16-38

Zhang, S., Jiao, Y. and Chen, W., 2017. Demand-side management (DSM) in the context of China’s on-going power sector reform. Energy Policy, 100, pp.1-8.

Finance

Introduction

Volkswagen group is the biggest manufacturer of the automobile when it comes to Europe. When it comes to the future of the giant company, it is worth assessing because in the due course of years there will be an immense change in the car industry.  Electric cars will come into operation and self-driving will hit the market. The passenger car segment encompasses the development of vehicles, as well as engines, the production, as well as cars and the strong part business. The commercial vehicle segment is composed of the development, production of large bore engine, compressor, and testing system. The financial services consist of dealer and financing of customer, leasing and insurance activities.     

 The legislation is regularly changing however, there are risks involved too. Evaluation of corporate performance is an important consideration for the success of the company.  To attain a strong growth it is of utmost importance that the growth and management should be in the hands of proper management.

Corporate analysis

There are different reasons to invest in a company. Some vouch for returns, some stress on solid foundations while some go for healthy prospects. While there are companies that look forward to responsibility and stress upon people and the environment.  However, the desired need is to have a company that is able to provide value, create value and stand high in terms of value.  This is the main area that Volkswagen strived to be. The company aligns the business to the main pillars that are digitalization, electrification,  and increment in the value of the shareholder. As per the annual report 2018, it is seen that value addition has been made in spite of the difficult stage. The value is deriving in terms of 10.8 million vehicles that are delivered. It is seen in more than 70 new models that are launched by the brand. For instance, sales climbed to €235.8 billion (Fitch Solution, 2017). On the contrary, the operating profit climbed to €17.1 billion. Further, at 7.3 percent the operating return on sales before special items was seen at the upper circuit of the target. As per the financial performance, it is seen that the group is in a dominating position where the operating business is resilient. When it comes to Europe, the new WLTP procedure of test lead

The introduction of WTLP is a big challenge to the company (Fitch Solution, 2017).  The coming years will be further influenced by the electric campaign. The company is planning to invest around €30 billion in electric mobility in the next 5 years. The main emphasis is on the electric car and by 2025 the company is planning to have 50 new models in operation. The company further aims to have the first vehicle with an electric model that will have a neutral supply chain and production in terms of CO2

Macroeconomic risks and opportunities

The increment in the number of partnership leads to opportunities and risks. The diesel issue leads to risk for the Volkswagen Group and even comprises an influence on the existing risk.  The company uses competitive, as well as environmental analysis to trace the risks and opportunities that can be related with the help of the products and the efficiency with which the company produces goods. The risks, as well as opportunities, are already presented in the medium-term planning and prediction.

The risks are present in the global scenario and turbulence is witnessed in the financial markets due to the deficit in the structure that poses a huge threat to the performance of the economies and the markets that are emerging.  The transition from a monetary policy of an expansion one into a restrictive one calls for risks for the macroeconomic environment. Furthermore, the uncertainty can be witnessed from the withdrawal of the UK from the EU. Moreover, the presence of high private and public sector debt in various places is proving a threat to the growth an might cause the market to respond in a negative manner. The decline in countries, as well as regions, has an instant reaction on the state of the global economy and hence is a central risk (Adra & Barbopoulos, 2018).

Economic performance varies from one region to another. In lieu of this, it can be commented that the challenges in terms of trading and sales like efficient inventory management and a profitable dealer network can be easily meet with the help of appropriate measures. But, the major financing activities by way of bank loans. The company is exposed to rivalry for two causes that are the provision of the regulation of the block exemption that has been applied to after sales service post-June 2010 and secondly, due to the alterations included in EU regulations regarding access of independent market participants to information of technical nature (Laux, 2014). 

Financial analysis

·         Profitability ratio

A profitability ratio is utilized to ascertain the ability of the business to generate earnings in contrast to the expenses and other major costs that are incurred during a specific period of time. For a majority of such ratio, ensuring a higher value in relation to the competitor or the same ratio from the last year period highlights the strong performance of the company (Porter & Norton, 2014). The profitability ratio computed in the case of Volkswagen is the Return on assets, net profit margin, and gross profit margin. After cross-checking the result of the gross profit margin of Volkswagen with that of the industrial average it can be commented that the ratio of Volkswagen stands lower as compared to the industrial average, however, ensured a positive outlook throughout the past five years (Leo, 2011).

The net profit margin of the company indicates the ability of the company to reap profit after the expenses of the business has been meeting. If the company is making a positive outlook in the net profit margin it means the company is managing the expenses appropriately and that the business is reaping positive yield (Choi & Meek, 2011). In the case of Volkswagen, the net profit has constantly fluctuated and gone by the economic scenario and the scandal that happened. The negative profitability in 2015 is going to the Volkswagen scandal that took place in 2015 and eroded the profit of the company. However, in the present scenario, it is more than the industry average meaning the company is moving in the profitable zone

The ROA indicates the efficiency with which the assets are put to use. When it comes to Volkswagen the ratio has fluctuated and is owing to the macroeconomic issues that have exerted immense pressure on the company (Dacvies & Crawford, 2012). Furthermore, the drop in 2015 is owing to the Volkswagen scandal.  However, the current scenario reveals that the ratio is 2.80% and that ranks below the industrial average.  Hence, by checking the profitability ratio it can be said that Volkswagen is operating under an atmosphere of immense pressure and is making a proper return on investments and profit.

·         Liquidity

Liquidity ratio helps in computing the ability of the business to meet the obligations of short tenure.  The current ratio and quick ratio has been computed for Volkswagen that helps in projecting the liquidity scenario of the business (Dyson, 2010).

The current ratio is the working capital ratio that is computed by dividing the current assets over current liabilities. A higher current ratio is always vouched for, as it indicates the liquidity potential of the company.  The standard ratio if 2:1 however, a ratio of more than 1:1 and close to 2:1 is always desirable (Petty et.. al, 2012). Volkswagen has maintained the current ratio that is more than 2:1, higher than the industry average of 1.62. Therefore, it can be said that the ratio stands more than 3 indicating that a heavy amount of funds is locked up in current assets that can be used by Volkswagen elsewhere to earn interest or profit.

The quick ratio is a better indicator of liquidity as compared to the current ratio because it excludes the inventories. Excluding inventories indicates that the business does not have to include the stock while computing the ratio meaning that the stock will not be sold to pay off the debts. Higher the quick ratio is better for the business (Merchant, 2012). The standard ratio of 1:1 is considered appropriate and helps the business to discharge the obligations. In the case of Volkswagen, it can be said that the acid test ratio is more than 2 in all the years and that is owing to the high volume of current assets. Moreover, the inventories of the company have increased on a regular basis meaning Volkswagen has more units that need to be sold. Moreover, it has exceeded the industrial average that stands at 0.94. Hence, from the computation and a comparison with the industrial average indicates that Volkswagen is better at liquidating the assets to meet the current liabilities.

·         Solvency

The solvency ratio indicates whether the business will be able to service the debts.  Solvency is a measure of the financial leverage and projects the firms activities that are funded by owner in contrast to the creditors fund. A company that has high solvency ratio is prone to heavy risks and hence is at stake (Mersland & Urgeghe, 2011).

Going by the debt-equity ratio of Volkswagen, it can be commented that the ratio stands more than 2 in all the cases that stress upon the fact that heavy reliance on debts is done. The equity component is less for the company. This reveals that the company has to pay higher interest and is near to the industrial average. However, for a giant company like Volkswagen, the same can be feasible owing to the operations.

On the contrary, the debt ratio is less than 1 but more than .50 indicating that the debt component is high.  The liabilities have increased considerably and in the wake of this, it can be commented that Volkswagen is putting pressure on the debt capacity and has high leverage.

Conclusion

After a complete evaluation of Volkswagen, we can comment that the company has positive, as well as a negative impact. Going by the ratio computation that the company ranks low when it comes to return on assets and net profit margin and that is owing to the pressure of the macroeconomic factors. The liquidity of the company is very high and more of the funds is locked up in current assets therefore, it must try to invest the funds elsewhere to generate returns. Further, the company has high leverage and that is one of the risky factor considering the global and macroeconomic situations. It is bound to face tough challenges in the forthcoming times and hence, needs to correct the shortcoming to be more efficient.

References

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