Decisions in Paradise III Essay Example | Topics and Well Written Essays - 750 words

Decisions in Paradise III - Essay Example With newspaper or Third Estate being a key part of optimal democracy, the people and importantly responsible government could welcome it. Factors affecting the decision As discussed in the case scenario, there are certain internal as well as external environmental factors, which could impede CBTL’s plan of launching the new business. When one focuses on the external factor, the main problem is the destructive and inconsistent weather pattern in Kava. Kava being in the â€Å"danger zone† of many natural disasters including earthquakes, tornadoes, volcanic eruptions, etc, any business initiative of CBTL in Kava has to face its repercussions. These natural phenomenons have the power to completely destroy the newspaper office and its network, if the intensity is greater or even closer to the newspaper infrastructure. Although, CBTL can technologically safeguard its infrastructure and network, it cannot be fully trusted, until it effectively faces and survives a disaster. Th at is, there will be skepticism regarding how CBTL can protect its infrastructure, creating doubts even among the upper management and stakeholders of the CBTL. This could lead to blocking of finances for the project, thereby making the newspaper plan unsuccessful. In addition, the upper management could raise skepticism about the reconstruction costs, which may be incurred on the CBTL, if the technological safeguarding does not work out well and the infrastructure gets destroyed. So, the solution mainly focuses on building a strong and disaster proof infrastructure for the newspaper office and its network, even building at a safer location. Resources and actions required Natural phenomenon could wreck CBTL’s business plans and could even diminish any chances of it developing a hold in Kava. Thus, all the natural and even man-made factors, which could destroy or even impede the newspaper plan has to be solved through certain measures. As part of these plans, the newspaper off ice including its network has to be located in a safe and secured location within the islands. Although, most of Kava is disaster prone, locations with minimal threat level can be selected after good study of the geography and importantly after analyzing previous incidences of natural disasters. After finding a safe location, CBTL can put all its technological resources to build a stronger and effective infrastructure, which will be able to withstand most of the natural phenomenon. To further make its investment in the infrastructure foolproof, CBTL can go for insurance cover. With the insurance scheme, CBTL can be financially protected in the case of disasters, and could do the reconstruction with that option. In addition, to further strengthen its business and also to fulfill CSR, CBTL can recruit local people for jobs in the newspaper office. Qualified and equipped employees can provide good employment option for CTBL. Ethical aspects A lack of business ethics on the part of orga nizations and corporate leaders can contribute sizably to the demise of the organization (Adadevoh, n. d). When CTBL carries out various steps to solve the threats to its newspaper plan, it could also lead to some ethical issues. As mentioned above, as part of CSR and also to tap good talent, CTBL can recruit local people for its newspaper operations. However, with HIV having incidence rate in Kava and with the targeted population of youth being the main sufferers, there may be ethical dilemmas on

Analyse the financial performance & position of Intercontinental Hotel Essay

Analyse the financial performance & position of Intercontinental Hotel Group plc and explain and evaluate the treatment intangib - Essay Example Background Information Intercontinental Hotel Group Plc. owns one of the leading brand and chain of hotels and resorts across continents. The group’s registered corporate office is located in Denham, United Kingdom and the group has a history of almost 60 years of delivering the highest level of quality of customer service which has permitted the group to achieve phenomenal growth over the last few decades. The group operates not only by owing hotels and resorts completely and also by entering into franchise agreements with other companies to operate hotels and resources The group has more than 4,500 hotels which are operating in different countries. The group operates hotels brands including Crown Plaza Hotel, Holiday Inn Express, Staybridge Suites, Candlewood Suites and others. These brands are arranged in a way that they reflect both luxury and budget hoteling facilities for guests. The group offers a hotel loyalty program through which it has achieved 63 million members wh o received updates and discounts on bookings and other privileges (Yahoo Finance, 2012). Financial Ratios Analysis For the purpose of analyzing Group’s financial performance in the last two years, following ratios have been determined and a discussion for them is presented while considering additional supporting information available in the Group’s annual report. It is pertinent to mention here that there are material exceptional items in the financial statements of IHG (InterContinental Hotels Group, 2011). These exceptional items are not considered for the purpose of calculating ratios. However, the impact of these exceptional items has been evaluated at the end of financial analysis. Profitability of IHG Keeping in view the profitability ratios as calculated below for the Group, it is noted that the Group has improved its performance in terms of returns. Apart from the continuing effects of recent global financial distress, the Group has managed to report growth in its profits. As evidenced by the gross and operating margins presented below, the Group has been able to report considerable growth in its gross and operating profits. One of the main reasons for this growth has been increase in total revenues of the Group. On the other hand, it is worth mentioning here that IHG’s cost of sales declined in 2011 whereas revenues climbed up, thus signifying the level of operational efficiency reached by the Group. Following this improvement in cost of sales figure in 2011 and gross profits, the trend translated into operating profits also, due to which the Group has been able to report higher operating margin for the year ended 2011 (Peterson & Fabozzi, 2012; Warren et al., 2011; InterContinental Hotels Group, 2011). Profitability Ratios Ratio 2011 2010 Return on Capital Employed 17.35 % 12.29 % Return on Equity 67.93 % 97.59 % Operating Profit Margin 21.32 % 17.44 % Gross Profit Margin 56.39 % 53.75 % Source: (InterContinental Hotels Group, 20 11) In addition to this, the returns on capital employed and on total equity of the Group have also shown favorable changes. With the increase in profits attributable to shareholders of the Group, the return on equity and capital employed also increased, and this increase in net profits for the Group has been such that it overcame the impact of increase in capital employed