Professional Workplace And Tattoos - Free Essay Example

Sample details Pages: 6 Words: 1814 Downloads: 5 Date added: 2019/05/06 Category Culture Essay Level High school Tags: Tattoo Essay Did you like this example? Tattoos have long struggled to climb the ladder of social acceptance, previously thought of as exclusive to low class groups such as whores and sailors†they are now moderately acceptable in western society. Unfortunately, this newfound acceptance of tattoos in society is not universal; historical stigmas continue to be pervasive in the professional world. Many heavily tattooed professionals are required to cover up their artwork as a part of maintaining their perceived professionalism, but at what cost to themselves? Research shows that tattoos are strongly linked with a sense of self identity in those individuals, therefor it is an issue when the identity of these individuals, and in turn, their authenticity, is threatened. Don’t waste time! Our writers will create an original "Professional Workplace And Tattoos" essay for you Create order False stigmas regarding heavily tattooed individuals in the professional workplace have a negative effect upon the sense of identity of those individuals and may even cause them to be perceived as less professional by their peers. One issue that tattooed individuals face in the workplace is managing their perceived professionalism, to quote Forbes, Tattoos are no longer a kiss of death in the workplace (Forbes Magazine, 2013). However, this does not mean that tattoos are no longer a kiss of injury in the workplace. While having tattoos may not immediately disqualify one from being hired in the white collar world, it does affect the way peers, customers and even supervisors perceive the professionalism of the tattooed individual. In a survey conducted by Workopolis, 327 employers were asked, Would a candidate having tattoos affect your decision to hire that person?. The results confirmed what the researchers had hypothesized, false stigmas associated with tattoos really do affect ones chances of being hired: Fourteen percent said they would be less likely to hire someone with tattoos, 23% said it would not affect their decision, and the rest said it would depend on the number and location of the tattoos and/or the role being filled. The rest, that is, except for one lone individual who answered that they would actually bemorelikely to hire a person with tattoos. This means that a total 77% of employers will or might be less likely to hire you if you have tattoos. We invited respondents to write in comments, a sample of which are posted below, and what many said was that tattoos might affect their decision if the tattoos were offensive or racist, or if the role was customer facing. This all makes perfect sense, the latter because even if the employer doesnt mind the tattoos, a customer might, and it is the customer who keeps the business going (Workopolis, 2014). To understand the perception of tattoos by society as a whole, Workopolis conducted another survey with five thousand respondents in the general population, the results from this survey yielded that society as a whole is more accepting of tattoos than the professional setting is, but there is still a significant disdain for tattoos in the eyes of the public: Turning to the general population, we asked nearly 5,000 people â€Å" not necessarily in hiring positions â€Å" if they take a person less seriously if the person has tattoos. Forty-nine percent said No, leaving half (51%) of respondents who either do take someone less seriously for having tattoos, or might, depending on the situation and how many tattoos the person has (Workopolis, 2014). Although tattoos have become more socially acceptable as of late, the findings in the previously mentioned studies suggest that tattoos are still struggling to climb the ladder. According to statistical data from 2017, 4 in 10 U.S. adults have at least one tattoo (Statista, 2017). Considering the large percentage of tattooed Americans, it is quite contradictory that the overwhelming majority of society still hold these negative prejudices against tattoos. Many people understand that tattoos are thought of as low class, trashy, or even a sign of low intelligence; however, the origin of these false beliefs are less discussed. Tattooing stigmas have a lot to do with the issue of perceived purity in the eyes of the public, this is demonstrated in a quote from a 2006 publication; If the black face is a failure to be a white face, and the female to be male, a tattooed body fails to be the base-level zero of non-inked skin (McCormick, 2006). Although most people understand that tattoos are not a stamp of criminality, subconsciously these prejudices still remain. Tattoos have a rocky history when speaking in regards to social acceptance; until the late 19th century tattoos were seen as a trend. The tattoo machine was first introduced in the 1890s which made them more accessible than the previous hand poked tattoos, causing a dramatic increase in the trend of tattoos. Now that tattoos were more easily accessible, it was no longer only for the wealthy and as a result interest in tattooing shifted to the lower classes. We can assume this is where the societal association of tattoos with poverty began. At the bottom step of the social acceptance ladder, tattoos were linked to criminality, and mental illness. These false ideas about tattooed individuals are pernicious in todays society, but it may not all be a conscious prejudice in the minds of the majority. Researchers have found, skin prejudices have been long ingrained in our society, even before tattooing: Within Western societies, the aesthetic ideal has long been light, unblemished skin, and knowingly eschewing that ideal aesthetic is an appearance violation: within conventional American society, light, clear skin is a long enduring beauty ideal in addition, blotchy, blemished, and marked skin in American society is seen as unhealthy, impure, ugly, or low class. In fact, light skin is highly correlated with psychological, occupational, educational, and economic advantage (Irwin, 2011, p.35). It is not unreasonable to come to the disheartening conclusion that negative connotations linked to tattoo culture may even be part of a more primitive issue: skin stigmas. Appearances are what humans use to create impressions of people, so it makes sense that there are a lot of stereotypes and prejudices dealing with skin. It seems as though the same thought process behind racism, colorism, and negative ideas about skin conditions may be the same issue that causes the societal disapproval for tattoos and body modifications. What can be done to prevent the spread of these false stigmas? At what age do people develop these kind of prejudices? What causes a person to know that generalizing a stigmatized population is illogical, but still subconsciously do so? More psychological research is being conducted every day, maybe eventually some of these remaining questions will be answered. False generalizations about tattoos are actually fairly complex, one interesting facet of this issue is referred to as the ?threshold of indiscretion. Defined as, a subjective limit to body modification, which when crossed casts the wearer as an outsider, too far gone to return to polite society (McLeod, N/A). In a study conducted in an attempt to research how tattooed individuals perceive the issue, tattooed lawyer Alana says, up to a certain point people can write it off as a foolish mistake I get the impression that people think I have poor judgement (Interviewee Alana, McLeod, N/A). Society is more than willing and able to assume a small tattoo was an impulsive mistake, however they are less accepting of a string of mistakes (heavy tattooing). This concept of the ?threshold of indiscretion allows society to accept lightly tattooed indivudals as people who have once made a bad mistake, but still distance themselves from the heavily tattooed person. Too deep in the threshold of indiscretion and people will begin to assume that the mistakes are part of a larger character flaw. The heavily tattooed body still stands out as severely more foreign than the lightly tattooed body. Now that it has been established that tattoo stigmas are indeed still pernicious in todays society, it is crucial to understand what effect this may have upon the tattooed population. One of the main reasons why this is such a controversial issue in society, is due to the nature of permanent body art. Tattoos are heavily linked to a sense of identity, and authenticity for individuals who have them. This hypothetical water becomes pretty murky when deciding how tattoos should be regarded in the workplace, since they are a permanent physical manifestation of self-identity. Identity and perceived professionalism both correlate to tattoos. Tattoos can communicate a number of traits, which include: (1) personal identity, (2) cultural values and practices, and (3) membership in sub-societies that are rebellious, peripheral, marginalized or otherwise set apart from the ?mainstream. Due to the high visibility and often symbolic nature of tattoos, they can be easily misunderstood. To the outsider, analyzing a tattooed body only further distances perceptions of self, to perceptions of other. Non tattooed persons may use their interpretations of a tattooed individuals artwork to discern information about them, and as most know; ones interpretations of others based solely upon first impressions or appearances are often far from accurate. Many people offer the solution of covering up tattoos in the workplace, but the answer to this issue may not be so simple. An issue is created when one associates their tattoos with their identity, and in turn authenticity. In the postmodern world, self-identity and authenticity have become of upmost importance, partially due to the dislocation of current society. This poses the question of where the line can be drawn, what level of personal authenticity should one promote in a professional setting? Identity management is a crucial skill in todays workforce, and research suggests that this may hold the answer to the heavy question regarding authenticity of tattooed professionals. The professional workplace has many face demands in terms of demeanor and appearance that do not allow for mismanagement of interactions. Naturally given the amount of time spent at work and the importance that employment plays in modern survival, our workplaces have become our central identity management setting; we require the greatest degree of management at work because we have the most riding on our character there (McLeod, N/A). While it may be easy for some to suggest long sleeves or scarves as a method of cover-up, this is not a real solution. As explained above, the workplace is one of the most crucial atmospheres for self-identity management. By not allowing the authenticity and management techniques to occur in the workplace, employers may be unknowingly be causing long term psychological issues. Often times, identity suppressing can cause severe issues of low self-worth, confidence issues, which can both lead to feelings of insecurity in other areas of the individuals life: not just the workplace. In conclusion, while tattoos may be considered a mainstream practice in society today; tattoos are still rejected in many professional atmospheres. Although, the stigmas do not necessarily cause significant issues in the lives of the tattooed; they are still held in the mind of the majority. In the workplace, tattoo discrimination can have a massively negative impact upon the psychological wellbeing of the individual.

Butler Lumber Case - 952 Words

BUTLER LUMBER CASE REPORT The Butler Lumber company is facing cash difficulties due to the buyout of Henry Stark’s share and because it is operating a high growth rate. Thus, it is imperative to analyze the various options available to Mark Butler in order to meet the cash needs of the Butler Lumber Company. In order to support the reasoning for our recommendation, we constructed a ratio analysis (Appendix I; Exhibit 1). Even though the firm has realized increasing sales and decreased its operating and cash cycle, other factors were found to have contributed to the shortage of funds. From the analysis, we were able to conclude that the main reasons for the firm’s insufficient funds were due to its slower collection of accounts†¦show more content†¦In addition to the requirements stated above, Butler will have to put up collateral to obtain the loan. We are not worried of his capability to do so because he can put up his house (assuming he convince his wife) at a market value of $110. As well, he can put up his life insurance which is worth $70. In order to maintain the sustainable growth rate Butler must adopt more conservative policies. For example, more conservative marketing, restrict credit terms to clients, and reduce the amount of employees. Lastly there are few restrictions to the recommendation provided. To begin, it would hinder the potential growth of the firm and it would not be sustainable in the future years because the firm will lack the ability to factor accounts receivables once they are completely depleted. On the contrary, the benefits largely outweigh the cons. Firstly Butler will foster greater relationships with his suppliers as he pays them within the discount period. Furthermore, the new loan comes with a number of covenants that would considerably affect the growth of the company such as limits on investments in fixed assets and net working capital. Finally, Butler would not need to sever its loan agreement with Suburban national Bank and break this long term relationship. Thus, for the reasons mentioned in this report, the decision to factor accounts receivables and keep the Suburban loan isShow MoreRelatedButler Lumber Case1404 Words   |  6 PagesButler Lumber Company Case â€Æ' Butler Lumber Company Case Summary of facts: In 1981 by Mark Butler and his brother-in-law Henry Stark founded the Butler Lumber Company. In 1988 Mr. Butler bought Mr. Stark’s share for $105,000 to be paid of in 1989 out of which $70,000 was raised by a loan carrying an interest rate of 11% and repayable at the rate of $7,000 over the next 10 years. Over the past five years, Butler Lumber Company has experienced rapid growth in its business. It derives its businessRead MoreCase Study Butler Lumber3374 Words   |  14 PagesCase Study: Capital Budgeting Butler Lumber Company Abstract Butler Lumber Company, a lumber retailer with a rapid growth rate, is faced with the problem of cash flow shortage. In order to support this profitable business, BLC needs a great amount of cash. The loan of $250,000 from Suburban National and a line of credit of up to $465,000 from Northrop National Bank are the two choices provided. After a brief review of the operation and financial conditions of BLC, we first make analysis ofRead MoreButler Lumber Case Analysis1807 Words   |  8 PagesButler Lumber Case Analysis Question 1 Butler Lumber, a retailer of lumber products in the Pacific Northwest area, experienced a time of growth in the spring of 1991 (Harvard College, 2002, p.1). The company looked to take out a loan to grow business operations. The maximum loan offer from Suburban National Bank was $250,000 (Harvard College, 2002, p.1). This loan also required a pledge of property from company owner, Mr. Butler, to secure it. However, Northrop Bank would offer a loanRead MoreButler Lumber Company Case Study1644 Words   |  7 PagesButler Lumber Company Case Study Hoffmeister M-W 4:30 – 5:45 Group #3 Sam Rosenbaum Joel Valenti Meg Lee Stephanie Grob Butler Lumber Company Summary of Facts. Butler Lumber Company is a Pacific Northwest based lumber distributor that sells plywood, moldings, and sash and door products.   The sole owner of Butler Lumber is Mark Butler, accompanied by one administrative assistant and ten employees who focus on repairs and labor intensive work.   Because of Butler Lumber’s competitive pricingRead MoreButler Lumber Company (Case Study)1788 Words   |  8 PagesBUTLER LUMBER COMPANY CASE REPORT Francis Davidson Tanguay Paula Zalba Dounia Tazimezalek Carl Helou Applied Corporate Finance Larbi Hammami McGill University, Montreal Tuesday, May 14th, 2013 1. Problem 1.1 Why was sales growth so robust, but net income growth anemic at best? 1.2 Does Mr.Butler need additional funding to fuel his growth? 1.3 Why does butler lumber have a cash shortage problem to begin with? 1.4 Could the cash flows of Butler Lumber support additional debt? 1.5 Should butler lumberRead MoreButler Lumber Case Study Analysis Essay1444 Words   |  6 PagesSubject: Butler Lumber Company Problem: Whether Mr. Mark Butler should go ahead with financing from Northrop National Bank or should stay with Suburban National Bank. Options: 1) Enter into a loan agreement with Northrop National Bank for USD 465,000 (Assumption: The condition to sever the relationship with Suburban National Bank applies to Short Term Loan only) Read MoreCase 13-6 Butler Lumber Company695 Words   |  3 PagesCASE 13-6 BUTLER LUMBER COMPANY* Question 1 How well is Butler Lumber doing? Despite recording a tremendous growth in revenue as follows: 2009: 18.62% 2010: 33.83% 2011: 6.61% (on annualised basis) The profitability of Butler Lumber is on declining trend. | |2008 |2009 |2010 |1Q 2011 | |Gross Profit Margin |27.99% |28.61% |27.62% |27.30%Read MoreButler Lumber Company Case Study Report6120 Words   |  25 Pages| Corporate Finance Case Study Report â…   | Butler Lumber Company | | | 2010-3-17 | | 陈æ€ ¡ 1091209054 ä ¸ ¥Ã¤ ¼Å¸Ã¦ ´  1091209036 Ã¥ §Å"Ã¥ ¸â€  1091209052 æ•â€"ç ¿â€ 1091209024 Abstract In this report, we study the case of Butler Lumber Company and analyze the financing problem it was facing. First, we give a brief review of the background information of the company. Then we diagnose the business by examining its financial statistics and discover that company was seriously lacking of cashRead MoreButler Lumber Case Discussion Fathuddin Hamid Academia1338 Words   |  6 Pages4/1/2015 Butler  Lumber  Case  Discussion  |  Fathuddin  Hamid  Ã‚ ­Ã‚  Academia.edu  Search... Log In Sign Up Butler Lumber Case Discussion    1)   Is Butler Lumber Case just a bank lending / finance case? Butler Lumber Case is not just a bank lending / finance case. Though this case requires the financial analysis of the company, we should also consider other factors such as the establishing the long-term relationship between the bank and Butler Lumber Company. Through thiscross long-term relationship,Read MoreEssay about Butler Lumber Case Study Solution644 Words   |  3 PagesButler Lumber Case Study Solution Options: The Butler Lumber Company (BLC) could obtain from Suburban National Bank maximum loan of $250,000 in which his property would be used to secure the loan.   Northrop National Bank is considering BLC a line of credit (LOC) of up to $465,000.   BLC would have to sever ties with Suburban National if they were to have this LOC extended to them.       | 1988 | 1989 | 1990 | 1991Q1 | EBITDA coverage (times) | 2.5 | 2.26 | 2.15 | 2.1 | Debt Equity Ratio

System Thinking Example - 1502 Words

Introduction to Systems Thinking Daniel Aronson Systems thinking has its foundation in the field of system dynamics, founded in 1956 by MIT professor Jay Forrester. Professor Forrester recognized the need for a better way of testing new ideas about social systems, in the same way we can test ideas in engineering. Systems thinking allows people to make their understanding of social systems explicit and improve them in the same way that people can use engineering principles to make explicit and improve their understanding of mechanical systems. The Systems Thinking Approach The approach of systems thinking is fundamentally different from that of traditional forms of analysis. Traditional analysis focuses on the separating the†¦show more content†¦This leads to a population explosion of insect B, to greater numbers of insect B damaging crops, and to greater numbers of insects damaging the crop, exactly the opposite of what was intended. Thus, although the short-term effects of applying the pesticide were exactly what was intended, the long-term effects were quite different. With this picture of the system in mind, other actions with better long-term results have been developed, such as Integrated Pest Management, which includes controlling the insect eating the crops by introducing more of its predators into the area. These methods have been proven effective in studies conducted by MIT, the National Academy of Sciences, and others, and they also avoid running the risk of soil and water pollution. The way that the broader perspective of systems thinking creates the understanding necessary for better long-term solutions was also evident in work I did with a company whose industry was being deregulated. They seemed to be doing everything right in working on a customer-relations problem they were experiencing: they had a team of capable people working on it, they were using a process that had been successful many times in the past, and they even had affected customers giving them feedback on proposals to rectify the situation. However, they wereShow MoreRelatedThe Organizational Learning Strategy And How It Is Significant As Essential1369 Words   |  6 PagesResources and Staff Training. However, the term is sometimes used in very different ways. Human Resources practitioners usually give the term a behavioral focus. For instances, competencies are characteristics such as communication and analytical thinking. The underlying notion is that the successful employee will possess the behavioral attributes associated with superior performance. Training practitioners often give the term a task or functional focus. Case in point of competencies would be, ableRead MoreEssay on The Fifth Discipline by Peter Senge569 Words   |  3 Pagesresponsibilities for their shared future, working on creating maximum synergy and maximum ability to deal with the whole state of affairs. The five disciplines are: team learning, building shared vision, mental models, personal mastery, and systems thinking. Team learning is the proficiency of a group of people to halt their theories and assumptions and freely think together. That involves dialogue in the true meaning of the word, as a flow of meaning. It means going beyond personal defensivenessRead MorePrimary Care Protocols : A Strategy For An Evidence Based Approach For Teamwork And The Delivery Of Care1712 Words   |  7 PagesAn example of the importance of acknowledging the impact of differing and individual perspectives among interprofessional healthcare team members is discussed in the article titled â€Å"Interprofessional primary care protocols: A strategy to promote an evidence-based approach to teamwork and the delivery of care† (Goldman et al., 2010). In this study, Family Health Teams (FHT’s) are trying to come to a consensus regarding the development and implementation of a variety of int erprofessional protocolsRead MoreSystems Theory Of Systems Thinking Essay1445 Words   |  6 PagesSystems Thinking in Organizations Systems thinking described human thinking in a spiritual activity of the brain, that is, brainwork, following the concept of being as the spiritual alive body. It asserts that thinking means the processing of information that is essential for the management of the human body life (Broks, 2016). This paper discusses systems theory of systems thinking as applied to organizations today, in particular to learning institutions versus those of traditional organizationsRead MoreTeam : Team And Team1255 Words   |  6 Pagesdimensions. First, teams need to possess insightful thinking about complex issues. Next, teams need to respond with an innovative and coordinated effort to address the issues. Finally, to execute the effort, coordination is needed across teams, which means team learning need to propagate throughout the organization. The way teams achieve this is through dialogue and discussion, the foundations of team learning (Senge, 2006). 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Firstly, some people are more concerned about the implications of change to themselves rather than thinking of the benefits it could bring for the company for example, I feel more comfortable working where there is more interaction with customers rather than working inside the office. Secondly, it somewhat also depends on the individual’s level of tolerance to change; some peopleRead MoreOpen Systems Theory Essay610 Words   |  3 PagesAn Open Mind to an Open System AN OPEN MIND TO AN OPEN SYSTEM The Open System Theory was initially developed by Ludwig von Bertanlanffy (1956), a biologist, but it was immediately applicable across all disciplines. It defines the concept of a system, where all systems are characterized by an assemblage or combination of parts whose relations make them interdependent. As one moves from mechanical to organic and social systems, the interactions between parts in the system become more complex andRead MoreThe Methodist Hospital Of Indiana1649 Words   |  7 Pagesmillion to install a state-of-the-art proprietary patient management system called TDS in 1970s but had done no upgradation after that . The IS department was solely focused on keeping the TDS system working and maintaining other mainframe administrative systems. This led to a lot of dissatisfaction among the hospital staff and physicians. Almost all the departments had acquired and were maintaining their own separate information systems and around 40 percent of Methodist Hospital’s information technologyRead MoreEssay about Project Mgmt: Projects and Systems Theory4386 Words   |  18 PagesProjects and Systems Theory â€Å"The most pervasive intellectual tradition to project management is without doubt the systems approach† Unit Coordinator: David Baccarini Teaching Staff: Geoff Salm By Ben Westerberg 16832778 PART I –THEORY Describe the key fundamentals of systems theory Just about anything in life can viewed as having systems (Baccarini 2013). They can be found anywhere from within nature to anywhere in society and business. To better understand the principle of systems and the

Thomas Aquinas Creator Of The Five Ways - 1230 Words

Thomas Aquinas: Creator of the Five Ways A revolutionary name in philosophy, Thomas Aquinas began his career as a Benadictine monk, following his father’s wishes. However, Aquinas would not be long in this profession, as the Dominican Order would snatch him from his studies. Besides this, Aquinas would be deeply impacted by his mentor, Albertus Magnus. Aquinas would become a forefather of Scholasticism, an idea that through intense, careful study, he could start from the truth and find support in Christian values, rather than being â€Å"free† to discover truth, as many philosophers of the time did (Soccio 228). As he developed his ties with the Orthodox church, Aquinas would be given a tall order. He would be asked to knit together the philosophy of Aristotle and the Catholic church’s idea of God into one, new, Orthodox approved philosophy (Soccio 227). In time, Aquinas would develop five ways to explain God, each linked to the teachings of Aristotle. Out of Aquinas’s five Ways, the most convincing is his final argument, the teleological argument, though his other Ways are not without their own merit. At a young age, Thomas Aquinas was sent to the Benedictine abbey school at Montecassino (Soccio 225). There, he learned how to carry on a modest life, and to study scripture, in the manner of the Benedictine doctrine. In 1239, Aquinas was sent to the Imperial University of Naples, where he crossed paths with some Dominican monks (Soccio 225). Enthralled by the DominicanShow MoreRelatedA Brief Analysis of Saint Thomas Aquinas Essay example1285 Words   |  6 PagesSaint Thomas was born in 1225 and he came from a noble family from Naples, Italy. His work caused extreme controversially in his time. He is known for his greatest work Summa Theologiae. Saint Thomas Aquinas used scientific reasoning and logic to explain the concept of God. Thomas Aquinas setup the framework of this discussion as a question of whether or not God exi sts. 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In simple words, cosmological argument for exsitence of god is this argument was argue that the cause of those things existence had be a â€Å"god-typed† thing, argument go all the way back to Plato and have been used by notable philosophers and thelogia ns ever since. Besides being philosophically evident, science finally caught up with theologians in the 20th centry when it was confirmed that universe had to have had a beginningRead MoreWhen Diving Into Sacred Doctrina1243 Words   |  5 Pagesdoctrina, Aquinas explains sacred doctrina as the science of God and how His creation related back to him. In order to study sacred doctrina, one can either look at the causes first and make sense of what follows or he can look to the effects in order to draw conclusions about the cause. The latter is the method of St. Thomas Aquinas in explaining sacred doctrine in his Summa Theologiae. Aquinas looks to creation in order to make conclusions about the Creator. In order to discus what God is, Aquinas looksRead MoreAnalysis Of Paley And Aquinas1823 Words   |  8 PagesAnalysis of â€Å"Paley† and â€Å"Aquinas† Readings in Topic 4 Introduction In the argument, â€Å"The Argument From Design† from Natural Theology, William Paley argues that living things are like watches in one crucial respect: both exhibit design, the universe with everything in it. Paley thinks that people assume that the universe works for a purpose like the watch does. So, people would reasonably conclude that the universe has a designer or creator, like the watch does, God. Although, atheists deny that theRead MoreThe Relationship Between Philosophy And Theology1433 Words   |  6 Pagesthough, see the two subjects of study as collaborative instead. And just as intellectuals of our Church today support the relationship which is otherwise seen as faith and reason, so too did the intellectuals Thomas Aquinas and Bonaventure reinforce it in the thirteenth century. However, both Aquinas and Bonaventure have their own different opinions on what the true relationship between philosophy and theology is. I believe that Aquinas’s understanding of the relationship between philosophy and theologyRead More The Strengths and Weaknesses of the Cosmological Argument for the Existence of God804 Words   |  4 Pagesthe observation of the world not logic so the outcome is probable or possible not definite. The argument is in three forms; motion, causation and being. These are also the first three ways in the five ways presented by Aquinas through which he believed the existence of God could be shown. Aquinas regarded Aristotle as the principal philosopher so many of these concepts originate in the thinking of Aristotle. One example of the cosmological argument is the argument of causationRead MoreGreat Philosophers and Lives Well Lived1238 Words   |  5 PagesThere have been many great philosophers throughout time. Socrates, Thomas Aquinas and Rene Descartes all lived during different times. This gave each of them different insights, which helped to create their philosophies and principles of their philosophies. Each philosopher also had a different means as to how they delivered their ideas and teachings. With so many differences the three had one thing in common: A love for wisdom, and the need to share it with others. Socrates was a great philosopherRead MoreThe Five Ways Of The Existence Of God1557 Words   |  7 PagesThis short paper will analyze â€Å"The Five Ways†, from Summa Theologica, by Thomas Aquinas (1225-1274). We cannot prove that God exists, merely by considering the word God, for that strategy work, we would have to presume to know God s essence. According to Aquinas, the existence of God can be proved. This paper will discuss what each of the five ways are that Thomas Aquinas introduced to show the existence of God. The Argument from Change: To begin with, one way to prove that God exists is to contemplateRead MoreThe s Ontological Proof For The Existence Of God Essay1134 Words   |  5 Pagesformulation of his ontological proof for the existence of God. In an effort to gain a deeper knowledge and acquaintance with his creator, Anselm set out to logically deduce God’s existence from the very definition of God. In the Proslogion he writes, â€Å"God is that which a greater cannot be thought. Whoever understands this properly, understands that this being exists in such a way that he cannot, even in thought, fail to exist† (Anselm, 101). Anselm uses this definition as the fundamental argument for

Scheduling and its Relation with Operations Management

Question: Discuss about scheduling and its relation with operation management. Answer: Introduction Kerzner (2013) opined that scheduling is the process to arrange, control as well as optimize workloads within the production processes. It is used to allocate the machinery resources, plan for the human resources, and plan the processes of production as well as purchase materials. Scheduling is an important tool gives a major impact on the productivity of the process. The goal of scheduling is to minimize the time of production as well as costs. Pinedo (2015) stated that as per the concept of operations management the organization schedule their activities to meet the requirements of customers on time as well as improve the operational efficiency. The research report is based on scheduling and its relation to the concept of operation management. The importance of operation scheduling is reflected in its current trends. Apart from this, current challenges of operations scheduling are identified with its particular solutions. Recommendations are also given to cope up with those identified challenges. Scheduling and its relation with operation management Under the functions of operations such as manufacturing as well as services, scheduling relates to the use of equipment, scheduling the human activities as well as receiving of materials. Scheduling compacts with allocations as well as supply allocation for manufacture of quantity. The planning of operations is done to be part of the short-term planning (Schroeder, Goldstein Rungtusanatham, 2013). The high-level purpose of the operation planning is to choose the best method of allocation of labor as well as equipment in order to discover a balance between the time as well as the utilize of limited resources in the organization. Importance of Operations Scheduling With the help of the operations scheduling, two of the important factors of the resources in the organization is considered such as allocation of the resources in the organization and setting up of timetable. In the current competitive world, the orders are placed from the side of the customers (Jacobs Chase, 2013). Operation management is the area of the management that is concerned to design as well as control the process of production. It redesigns trade operations within the manufacture of goods as well as services. It involves ensuring that the operations of the business are efficient in order to meet the requirements of the customers. It concerns to manage the process that converts the inputs into the outputs (Schwalbe, 2015). With using the operations scheduling, the orders are finished on or before the deadline. In order to complete this, operations scheduling plays a vital role to ensure that the dates should be convened. It helps in confirmation as well as revision of the delivery date that are promised (Krajewski, Ritzman Malhotr, 2013). The scheduling helps to keep the cost down as well as allow operating as per the scheduled budget. The importance of operations scheduling is that it ensures continuous scheduling of a job, removes the scheduling bottlenecks, ensures feedback in order to make an adjustment and enhances the product as well as a process. Scheduling helps in the capacity planning to reduce the bottlenecks, streamlines the order production based on due date, sequencing in different job works. Scheduling reduces the delays during the individual jobs that allow the supervisors to assign jobs (Schwindt Zimmermann, 2015). The principle of scheduling is to obligate jobs plan in order to estimate labor hours as well as construct the skill levels. It encourages interrupting jobs in progress through proper prioritization of the work. It commits the crew leaders in order to forecast the labor hours (Amiri Barbin, 2015). Scheduling establishes the importance to measure the process of schedule. It measures the outcomes in order to help that the management plans, as well as schedules, does take place. Current trends of scheduling in operation management Operation management is the process in which the resources are converted into useful products. The scheduling has many current trends in the operation management that have involved with an impact on the manufacturing industries as follows: Flexibility: The ability to change in volume, delivery schedules as well as design of products becomes a competitive advantage to the industries (Binder, 2016). Reduction of schedule: Reduction in the manufacturing cycle of the new product provides a competitive advantage (Karthikeyan et al., 2015). When the industries are providing products at the same price as well as quality, then it takes short lead-time in order to provide the product to the customers. Business process re-engineering: It involves with measuring the improvement in order to improve the scheduling operations of the industry (Khanna, 2015). It consists of clean state approach in redesigning of the business processes. Lean production: This production system has a minimal amount of resources in order to produce a high volume of quality of goods with some variety (Christopher, 2016). It is flexible for the manufacturing systems as well as a workforce to have an advantage of mass as well as job production. Just in time production: Actual order provides the production system when the product is manufactured. Demand-pull enables that the product is produced in the correct quantity as well as within correct time. It means that the stock levels of the products, work in progress as well as finished goods are kept the minimum. Therefore, it requires a scheduling as well as a flow of resources through the process of production. Enterprise Resource Planning: The enterprise wise information system is designed to coordinate the resources, schedule the time of operations as well as activities that are required to complete the business processes such as fulfillment of order or billing (Leach, 2014). Challenges of scheduling in operation management Operation scheduling is critical for the industries as it is a complicated task. Sometimes, it is seen that during the scheduling operations of the work order, the delivery date originally promised is not met. It is due to the challenges such as materials that are necessary are not accessible at the particular time (Schwindt Zimmermann, 2015). The problem occurs due to increase in the plant loading. The operations scheduling has a direct effect on the effectiveness of the function of production. If the scheduling of operations is accepted out in a competent manner, then it occurs significant improvement within the performance in the delivery (Jacobs Chase, 2013). It assists in attainment of the goals that put by the company. In order to reduce the production lead times, operation scheduling acts as a vital part. The scheduling of the services encounters the problems within the manufacturing industries. The challenges occur due to nature of the service operations such as intangibility of the services as well as an inability to inventory services (Karthikeyan et al., 2015). The demands of the services are random. The random demand makes the labor scheduling difficult within the manufacturing industries. Since the customers are not waiting, the labor must schedule such that the waiting time of the customer is minimized. Solutions of scheduling in operation management Queuing theory is used to estimate the arrival as well as service rates in order to measure the optimum staffing plan. Flexibility builds into the service of operation using labor, cross training as well as on-call employees (Amiri Barbin, 2015). Scheduling of the services is also becomes complicated when it is required to coordinate as well as schedule more than one resources. Even other operational techniques such as Gantt chart and queuing analysis are used to schedule the operations of the service. The random natures of the services are moderated by using the reservation system. The system is designed in order to enable the services system to formulate the accurate estimation of the demand on the system for some period (Christopher, 2016). It is also used to minimize the dissatisfaction level of the customers generated by waiting or inability in order to obtain service. Therefore, late arrivals can disrupt the system. Scheduling hourly work times is done where more and more workers are required for specific times of the day. The supply chain management is an advanced scheduling strategy (Krajewski, Ritzman Malhotr, 2013). It facilitates the supply services as well as information flow through the supply chain. It manages the production between the company, manufacturers, distributors, and the customers. Recommendations The following are the recommendations that are suggested: In order to schedule the tasks properly, it is required to estimate the potential sales with reliability. Most of the businesses do not have firm numbers on the future sales. The sales forecast is to be done on the historical information, a trend in the market as well as established orders. An inventory system should be placed to estimate the proper schedule time. It is recommended to determine the production step in order to map the processes. it is required to incorporate the average time in order to complete the work. After the completion of the process map, it is easily estimated that total time required completing the entire process. When the task is repeated, then it is best to standardize the task as well as the time involved. The industries should use service execution system in order to link the schedules, tracks the order, monitors as well as controls the customer's encounter with the service organization. Use of supply chain management system is used to facilitate the supply services as well as information flow. It manages the production between the company, manufacturers, distributors, as well as the customers. Conclusion It is concluded that the operations scheduling is designed to meet with due dates such as delivering the products to the customers on the deadline. It also minimizes the lead-time of the product in order to minimize the inventory levels as well as respond to the customers as quickly as possible. The scheduling is done to minimize the work in process inventory as well as maximize the machine utilization. Using the scheduling principles, there is a direct equivalence among the workflow as well as cash flow. The standard measures of the schedule performance are to meet with minimizing the flow time, minimizing the work in progress inventory as well as minimizing the time that machines are idle. The challenges occur due to nature of the service operations such as intangibility of the services as well as an inability to inventory services. The challenges have occurred due to effectiveness of the production functions. The scheduling functions are performed by the industries to allocate the orders, determine the sequence of the order performance, and initiate the performance of the schedule as well as shop floor control. References Amiri, M., Barbin, J. P. (2015). New approach for solving software project scheduling problem using differential evolution algorithm. Binder, J. (2016).Global project management: communication, collaboration and management across borders. CRC Press. Christopher, M. (2016).Logistics supply chain management. Pearson Higher Ed. Jacobs, R., Chase, R. (2013).Operations and supply chain management. McGraw-Hill Higher Education. Karthikeyan, S., Asokan, P., Nickolas, S., Page, T. (2015). A hybrid discrete firefly algorithm for solving multi-objective flexible job shop scheduling problems.International Journal of Bio-Inspired Computation,7(6), 386-401. Kerzner, H. R. (2013).Project management: a systems approach to planning, scheduling, and controlling. John Wiley Sons. Khanna, R. B. (2015).Production and operations management. PHI Learning Pvt. Ltd.. Krajewski, L. J., Ritzman, L. P., Malhotra, M. K. (2013).Operations management: processes and supply chains. New York: Pearson. Leach, L. P. (2014).Critical chain project management. Artech House. Mahadevan, B. (2015).Operations management: Theory and practice. Pearson Education India. Pinedo, M. (2015).Scheduling. Springer. Schroeder, R. G., Goldstein, S. M., Rungtusanatham, M. J. (2013).Operations management in the supply chain: Decisions and cases. Schwalbe, K. (2015).Information technology project management. Cengage Learning. Schwindt, C., Zimmermann, J. (2015). Project Management and Scheduling.Handbook on Project Management and Scheduling,2, 640.

Terms of Projects Profitability and Financing Issues

Question: Requirements 1 Calculate the post-tax cost of capital for the move of Arden Ltd into the air freight industry having incorporated both business and financial risk into this evaluation. Further evaluate why the air freight Industry may have a different Beta than the passenger airline industry. Requirement 2 Critically evaluate CAPM as a methodology to get a value for the cost of equity for a company. Explain to Steve Culley, the CEO, what unsystematic risk is and its relevance to the CAPM calculation. Discuss why increasing gearing links into an increasing cost of equity and then briefly whether this would then lead to an increasing WACC. Requirement 3 Evaluate the NPV on this project using your previously calculated WACC. Steve Culley is also interested in your views on some other financial evaluation techniques he has heard of, namely MIRR and discounted payback and would like you to explain two benefits of the use of each of the techniques for Arden. Finally Steve is intensely aware of the risks around sales falling in this project and would be interested in you helping him to understand the significance of this variable. Requirement 4 Steve is also interested in understanding the Black Scholes formula better and specifically how it could accommodate the air freight opportunity. He has seen the call option formula but would like your reasoning on the effect of the 5 components specifically the way a change in each of them individually would lead to a higher value for the call option on the potential expansion after the 4 year point. Reducing risk (details in Appendix 2) Requirement 1 Explain a range of internal techniques for mitigating risk on the fuel payments that Arden has to make. In discussing these techniques critically evaluate their use under the circumstances of Arden. Requirement 2 Evaluate the hedging options available to Arden (based on the data in appendix 2) for the $20,000,000 borrowing requirement, assuming that on Oct 1st 2016 US Libor equivalent is 6% and the closing Futures price available is 93.80. The evaluation should include a numerical analysis and an identification of the steps involved in each hedging strategy selected, along with any advantages and disadvantages of the selected strategy. Requirement 3 Evaluate the use of using US dollar denominated debt (as opposed to UK debt) to finance the potential new US operations. Your analysis should also include the potential benefits that may accrue from a currency swap with a US company who may be looking to borrow in UK pounds. Illustrative calculations can be used to show this benefit to Steve Culley. Financing issues (details in Appendix 3) Requirement 1 With respect to the Financing needs linked to the purchase of the new planes, critically evaluate the logic for using more Debt finance, versus equity, for Arden with particular focus on its own circumstances and the industry conditions of the Airline industry. Requirement 2 Critique the proposal to sell off the Hotel division of Arden as a way of raising finance but also as a long term commercially sensible solution for a business requiring accommodation for its employees. Requirement 3 Discuss the key reasons why Arden should list on a Stock exchange, focusing on benefits outside of just the raising initial finance through an Initial Public Offering (IPO). Detail for Steve responses on those areas of the IPO process that he doesnt fully understand and explain to him the benefits of a premium market listing on the London Stock exchange.(Premium listing versus Standard listing). Also briefly assess whether this will be a significant challenge for Arden in meeting these criteria for a premium listing. Answer: Air freight opportunity Requirement 1 Calculation of Post-tax Cost of Capital Cost of equity capital: It can be calculated by using the following CAPM formula: E (Ri) = Rf + i [E(Rm) - Rf] Here, Rf = 4% = 1.65 E(Rm) = 10% Thus, cost of equity will be: = 0.04 + 1.65(0.10 - 0.04) = 0.04 + 1.65(0.06) = 0.04+0.099 = 0.139 = 13.9% Cost of debt: It can be computed by using the below formula: Cost of debt = Here: I = Interest rate (Assumed as 10%) T = Tax rate (20%) = Market price of debt (Assumed as 125) Thus, debt cost will be: = 6.4% Now, WACC can be calculated as below: Source Value of share Weight After tax cost % Total capital cost Equity share capital 100m 0.33 0.139 0.04587 Debenture 200m 0.67 0.064 0.04288 Total 300m 1.00 0.08875 or 8.875% Thus, it is clear that the cost of capital for the company is 8.875% or 9%. The air freight industry must have a different beta than the passenger airline industry because beta is calculated from movements in the historical stock price that include both industry and finance risk. As industry risk is influenced by factors such as demand of the product, raw material prices, substitutes availability, etc., there must have a different beta for the air freight industry (Brown, 2010). Requirement 2 Evaluation of CAPM methodology to Obtain the Cost of Equity Value For the valuation of risky securities, capital asset pricing model (CAPM) is an effective framework. The CAPM model defines that an asset's expected return is related to its risk as measured by beta (Pratt and Grabowski, 2010). The below is the formula for CAPM model: E(Ri) = Rf + i [E(Rm) - Rf] (Stowe, 2007). Where E(Ri) = Expected return on asset Rf = Risk free rate of return (Stowe, 2007). E(Rm) = The expected return on the market portfolio i = beta, or the sensitivity of the assets to returns on the market portfolio (Stowe, 2007). CAPM based expected rate of return can be used for valuing the cost of equity for a company. It is because as the CAPM depicts equilibrium and all risks are captured by beta, risk adjustments can be made by the investors based on beta. In addition, as the calculation of CAPM requires only some inputs and based on some simplifying assumptions, it is a preferable method to calculate firm's cost of equity (Viebig, Poddig and Varmaz, 2008). But, at the same time, as this model only considers systematic market risk, such risks might not be the only factor for defining all the variations in share prices. It shows that the major disadvantage of this method is related to the ignorance of unsystematic risk. It is because due to the ignorance of the unsystematic risk, the CAPM and beta are unable to define the amount of significant differences in stock returns (Pratt and Grabowski , 2010). In contrast, this model views that all the firms face the systematic risk (identified through beta), whic h no investor can remove from their chosen portfolio investments. Therefore, CAPM method provides as effective measure to value the company's equity cost of capital. On the other hand, unsystematic risk is a company-specific risk that can be eliminated by the investors in their portfolio through diversification. The CAPM model also considers that by holding a broad portfolio that wipe out the effects of unsystematic risks, such risks can be eliminated. It reflects that CAPM methodology ignores the unsystematic risk and thus, this risk in not relevant to the CAPM calculation. It can also be discussed that increasing gearing results into an increasing cost of equity. Gearing refers 'to the ratio of borrowed capital by the firm at a fixed rate of interest to the firm's total capital' (Collin, 1998). The main reason behind this is that due to increasing gearing or issue of more debt, more interest is disbursed of profits before stockholders can get paid their dividends (Heffernan, 2005). Furthermore, bigger interest payments increase the unpredictability of payment of dividends to shareholders. It is because if the company has inadequate profits in a year, there is still need to pay increased interest payments, which may affect the ability of the company to pay dividends. Moreover, it increases the financial risk to shareholders, due to which they require more return on their investment to compensate the increased risk resulting in increasing the cost of equity (Heffernan, 2005). In addition, the increase in cost of equity due to increasing gearing would als o result in an increasing WACC. It is because WACC (weighted average cost of capital) is a simple average between the cost of debt and the cost of equity. Concurrently, as the cost of equity increases, it would also lead to increase in the WACC. Requirement 3 Calculation of NPV The below table shows the calculation of cash flows for the project: The following table summarizes the NPV calculations: It is clear that this project has positive NPV of 35.34. Thus, it can be stated that investment in this project would be beneficial to maximize the shareholder value and attain positive benefits. There are also other techniques, which can be used for assessing the viability of an investment project. The main techniques include modified internal rate of return (MIRR) and discount payback period. The benefits of these techniques for Arden is as below: MIRR: The main advantage of this technique is that it considers all the project's cash flows and also considers time value of money, which will be helpful for Arden to produce more effective results (Fabozzi, Drake, and Polimeni, 2007). It will also be beneficial to inform about the increase in the company's value through an investment. It also considers the risk of future cash flows through the cost of capital while making decisions (Brigham and Daves, 2014). Discount Payback: It also considers the concept of time value of money, thus it would be supportive for Arden to effectively evaluate the new project and produce valid results (Fabozzi and Drake, 2009). Another benefit is that it would also be advantageous for Arden to assess the risk of new business venture's cash flow through the cost of capital (Fabozzi, Drake, and Polimeni, 2007). Sales is an important variable while assessing the viability of a project. It is because sales figure is used to determine the cash flows from a project by reducing the operating expenses and making adjustments for depreciation and tax. Therefore, it is essential to accurately make assumptions regarding sales by considering the market and demand factors. Requirement 4 Black Scholes formula The Black-scholes formula was developed by the three economic experts including 'Fischer Black, Myron Scholes and Robert Merton' (CvitaniĆ¡ and Zapatero, 2004). The formula can be used for calculating the European put and call options' theoretical price. Similarly, it could accommodate the air freight opportunity by providing a way to evaluate call and put option. There are certain assumptions, on which the formula works. These include 'during the option's life no dividend is paid, the options are European and can only be worked at the end, no movement in the market, no commission, constant risk free rate and volatility, and normally distributed returns' (Mayo, 2016). The below is the Black-scholes formula: C = SN(d1) - N(d2)Ke-rt (Mayo, 2016). In this, d1 and d2 can be calculated as follow: d1 = d2 = d1 - s. Here, C = Call premium S = Current stock price T = time K = Striking prices of the option R = Risk-free interest rate N = Cumulative standard normal distribution e = Exponential term s = Standard deviation In = Natural log It shows that the formula has five main components including 'current underlying price, options strike price, time until expiration, which is expressed as a percent of a year, implied volatility, and risk-free interest rates'. There is a relationship between each independent variable and the call value due to which the changes in the each component leads to higher call option value. For example, An increase in the stock's price, increases the call options value. It is because the intrinsic option value rises as per the increase in the stock price (Mayo, 2016). Similarly, a decrease in the strike price, increases the call option's value. A gain in to the time to expiration also increases the value of a call option because as time decreases, the value of option also falls (Mayo, 2016). A rise in the stock's variability also increase the value. For the reason, a speculator will get an option more attractive with a volatile stock than an option with a stable stock price. Interest rate increase will also increase the call option value as higher interest rates are related with higher call option valuations (Mayo, 2016). Reducing Risk Requirement 1 The below are the techniques available that can be used by Arden for mitigating risk on the fuel payments. Internal Control Framework: Firstly, to mitigate the risk, Arden should establish a internal control framework approved by the company's management and board. The framework must ensure internal control in different areas including fraud prevention, exact management information, separatism of duties, execution of approved strategies, and fuel payment audit in order to mitigate the risk (HSBC Bank Middle East, 2014). For example, management must be provided accurate information about the fuel payments so that effective decisions can be made to control the risk related to fuel payment. This technique will be beneficial for Arden as by making an effective internal control system, the company can avoid the use of external hedging techniques. It would also be cost effective for the company due to assurance about the optimum utilization of available resources. Scenario Planning: It would also be an effective technique for Arden to mitigate the fuel payment risk. In this, the risk managers at Arden Ltd. can evaluate the business sensitivity to the changes in fuel prices and can develop contingency plans accordingly to reduce the adverse impact of the changes in the price of fuel (Kinder, 2008). The implementation of this technique can create additional cost for the company due to requirement of expertise people for scenario planning. Collaborative Technologies: The use of such technologies can also be beneficial to mitigate the risk effectively. For example, combined human knowledge and sharing of information can be beneficial for Arden to reduce the extent to which fuel payments can adversely affect the business (Kinder, 2008). Continuous Business Process Optimization: Implementation of effective risk management processes along with the use of proactive measures and technologies can be beneficial to get early information about the changes in fuel prices and thus, find suitable ways to control the situation in an effective and efficient manner (Kinder, 2008). Requirement 2 Calculation of interest =20,000,000*6%*90/360 =300,000 Profit earned on the future position = 100-6 = 94 Thus, profit earned will be = 94-93.80 = 0.20 Future Hedging Strategy The below are the pros and cons of the future hedge strategy: Advantage: Lack of credit risk, Possibility to extend the delivery date as well as closing out prior to maturity (Jovanovic, 2014). Limits price risk (Friedman and DeCorla-Souza, 2012). High Liquidity, and Extremely standardized contracts in the form of location delivery, quantity, and quality. Disadvantage: Require daily settlement, Likely profit is limited (Jovanovic, 2014). Uncertainty of future returns. Requirement 3 In order to finance the new US operations, the company can use US dollar denominated debt as opposed to UK debt. Such kind of transactions are known as SWAPs. Swaps are OTC products, which 'require the swapping of one future cash flow for a different future cash flow, where both flows are defined by a benchmark' (Loader, 2013). Equity, Currency, and interest rate swaps are common examples. 'A currency swap is an interchange of certain amount of cash flows in one currency for a series of cash flows in another currency at pre-defined period and interest rate basis' (Loader, 2007). For example, through currency swap with a US company, which is also searching to borrow in UK pounds, Arden Ltd. can borrow money cheaper. It is because with the help of currency swap, 'Arden will borrow British Pounds on a floating rate basis from its bank and then swap this GBP principle amount for USD with the swap bank counterparty' (Loader, 2013). Both the companies can agree to pay a fixed interest rate on the USD and recieve a floating interest rate on the GBP, which Arden can use to pay the floating rate interest on the original GBP loan from its bank. Another benefit of currency swap for Arden is that it will protect the company against changes in foreign exchange during the period of swap as well as defend against changes in the interest rate in the UK market throughout the borrowing period (Loader, 2007). The negative aspect of currency swap is that Arden may need to exchange the principle amount at both the swap term beginning and end at an fixed rate agreed. However, the positive aspect of currency swap outweigh its negatives, thus, it can be discussed that use of swap will be an effective option for the company. Financing Issues Requirement 1 In order to purchase the new planes, Arden require significant funds. There are several financial sources available including debt finance and equity finance that can be used by the Arden as per the suitability with its business nature. The below section critically evaluates the logic behind the use of more debt finance against equity for Arden: The meaning of debt financing is to borrow money from an external source with the assurance to pay back the borrowed money plus a specific interest on a particular date. Debt financing has many advantages over equity financing for a business like Arden. For example, as the Airline industry is a capital-intensive industry with the high cost, it is beneficial to maintain high debt-to-equity ratio to reduce the capital cost by obtaining the cheaper debt (Bloomberg, 2016). In addition, the another advantage of debt funding against equity is that it will provide range of choices to Arden in order to obtain the required finance. For example, Arden can get money either from bank loan, other financial institutions, corporations, and by issuing debentures. At the same time, debt would also be advantageous over equity for Arden in terms of lack of interference of the lenders in the business decisions and operations. In addition, as currently, Arden has a debt-equity ratio of 1:1, it would be easy for the company to raise more funds through debt financing. But, concurrently, the negative aspect of debt funding versus equity financing is that Arden will need to repay debt along with interest each month no matter what will be the performance in the end of the year. However, it can be discussed that due to high cost and huge capital investment requirement, the use of debt financing would be more beneficial for the company as compared to equity financing. Requirement 2 Arden is also considering the sell off the Hotel division in Paris in order to raise fund to finance the new project. This proposal can have both advantages and disadvantages for the company. The main benefit of raising finance through sell off the hotel part is that it can easily raise fund at comparatively less cost and with fewer legal requirements. In addition, this option would also be beneficial for Arden to gain access to money engaged in hotel division (Jowsey, 2014). It is because due to the reduced flight schedule in the last couple of years, Arden is planning to sale spare capacity in the hotel. Moreover, the released funds from the hotel division can also be beneficial to finance the new service business. In addition, Arden can also get other benefits from this option such as use of assets and transfer of the property value risk to a third party. In contrary, this option will also create disadvantage for the company as the hotel division will no longer be owned by Arden, which will weaken the company's balance sheet (Jowsey, 2014). At the same time, it will also close the option to gain access to the funds by securing a loan using the hotel division. Moreover, it is also possible that the long-term value of the property will be greater than if they remain in the company's ownership. Concurrently, it will also end of the option to use the hotel division 'as a long-term commercially sensible solution for a business requiring accommodation for its employees' and generate a new revenue source for the company. Thus, it shows that the option to sale the hotel division of Arden has both positive and negative aspects and as negative aspects outweigh positive aspects, it can be stated that this is not an effective proposal for the company. Requirement 3 An initial public offering (IPO) is the process by which a firm that is managed privately issues shares of the stock for the first time to the public (Gullifer and Payne, 2015). In the growth of a business, IPO is an important stage as it provides access to wide capital market and also increase the company's credibility and vulnerability. The below are the key benefits that reflect the reasons why Arden should list on a Stock exchange: Bettered Financial Position: In an immediate manner, an IPO can improve the financial condition of Arden. For the reason, sale of shares to the public brings in money that does not have to be repaid, thus it helps in improving the financial position of the company (Ernst and Hcker, 2012). Increased Shareholder Value Commencing with an IPO, may increase the stock's value unusually. In addition, publically traded shares also command upper prices in comparison of those that are not, thus, it would be beneficial for Arden to increase the total shareholder value. Investors are also willing to pay for listed companies due to shares liquidity, maturity, and the availability of more information (Gullifer and Payne, 2015). Variegation of Shareholder Portfolios IPO will also provide an opportunity to Arden to pull parts of its assets out of the company (Ernst and Hcker, 2012). In simple word, it can be stated that by going public, Arden can secure the company's future. Creates Opportunities for Future Fundings Through an IPO, Arden can improve the company's net worth as well as create a border equity base (Ernst and Hcker, 2012). Moreover, the bettered equity ratio will make easier the borrowing of additional money as requires and will also reduce the borrowing's current cost. More Capital The main benefit is that the net proceeds from the sale of shares through an IPO provides working capital for a firm (Gullifer and Payne, 2015). Similarly, in the case of Arden Ltd, the capital can be used to fulfil the financial needs to purchase new planes. Thus, it shows that in addition to raise initial finance, an IPO also provides other benefits related to ensure about future financiang requirements and improve current financial position. IPO Process Lead Manager The main logic for the lead manager is to prepare the company to go public in an effective manner. The lead manager has the responsibility to develop confidence and respect within the industry as well as provide innovative ideas to make sure about the future growth. Underwriting Underwriting is an important step in an IPO process as the underwriter act as a mediator between the company and the capital markets. There are different kinds of underwriting agreements such as best efforts, all or none, and firm commitment that can be used by the company to start with an IPO. For example, through a firm commitment agreement, the company can transfer the risk of not selling the shares to the underwriter, which is the main reason behind underwriting of the share issue. A prospectus is prepared by the company to attract investors and shareholders to invest in the company. Content of the Prospectus The following content should be included in a prospectus: Information about the group structure of the company and its subsidiaries, Company history and share capital, Details of the industry sector, in which the firm operates and its main competitors, Last three years financial information, Current and future business plans, Compensation of the directors and their interest in the company, Compliance with the UK corporate governance code (Withers Worldwide). Information about current or any planned share option schemes, Any ongoing judicial proceedings of a material value, Risk factors influencing business (Withers Worldwide). Material contracts including IPO advisers, Information about listing process. Benefits of a Premium Market Listing on the London Stock exchange Premium listing and standard listing are some of the main routes to join the main market of the London stock exchange. Premium market listing provides additional benefits including lower cost of capital, greater transparency, and improved investor confidence to the company (London Stock Exchange Plc, 2016). The main reason behind the availability of these benefits under premium listing is that it requires compliance with the highest standards of regulation of the UK as well as corporate governance (Poitras, 2012). In addition, companies with a premium listing are also required to comply with the 'UK's super-equivalent rules which are higher than the EU minimum requirements (required to comply under standard listing)' (London Stock Exchange Plc, 2016). Another difference in both listing routes is that premium route is only open to equity shares while standard listing route is open to the issuance of equity shares, debt securities, global depositary receipts, and securitised derivative s. In addition, it is also assessed that Arden will face considerable challenges in order to meet criteria for a premium listing. It is because it is difficult to understand and comply with the high standard UK's rules and regulations without the help of a right adviser. Moreover, the company also needs to be aware about different key obligations related to notice period, relationship agreement, directors' retirement, dealing restrictions, etc. in order to avoid corporate governance issues (Withers Worldwide). Thus, in order to ensure the success of an IPO through premium listing, the company should take the service of a adviser such as lawyers, PR consultants, and an investment bank. Conclusion From the above discussion, it can be summarized that the use of CAPM methodogy provides an effective tool to measure the firm's cost of equity capital. It can also be summarized that before using a particular finance source, the firm must evaluate each option available in terms of its costs and benefits so that an effective decision can be made. This can be also inferred that as the aviation industry involves high risk, the use of more debt finance would be appropriate to reduce the overall firm's cost of capital. References Bloomberg (2016) Available at: https://www.bloomberg.com/news/articles/2009-12-04/raising-capital-equity-vs-dot-debt [Accessed: 3rd August, 2016]. Brigham, E. F., and Daves, P. R. (2014) Intermediate Financial Management. USA: Cengage Learning. Brown, R. E. (2010) Business Essentials for Utility Engineers. USA: CRC Press. Collin, P. H. (1998) Dictionary of Business. UK: Taylor Francis. CvitaniĆ¡, J. and Zapatero, F. 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