Core Context Overview Ratios And Evaluation Finance Essay

Core Context Overview Ratios And Evaluation Finance Essay Kesko Corp is a diversified retail business headquartered in Helsinki, Finland. Founded in 1940, it deals with food trading, logistics, data and network management, building and home improvement alongside agricultural supplies, car and machinery trading. Apart from Finland, the company operates through subsidiaries like Kesko Food, Musta Porssi, Konekesko, Indoor, Intersport in Norway, Sweden, Russia, Lithuania, Estonia, Belarus and Latvia. 2. CORE: Context, Overview, Ratios and Evaluation Context: External Kesko has around 2,000 stores structured as chain operations in parts of Nordic, Baltic, Scandinavian regions. Kesko and K-retailers comprise of K group which employs approximately 45,000 employees with year 2011 turnover stands at â‚ ¬ 12 billion. By 2011, Kesko Corporation has circa 19,000 employees with net-sales around â‚ ¬ 9.46 billion. An increase of 7.8% from last years (â‚ ¬ 8.77 billion). Finnish net-sales rose by 7.3% and other countries operations increased by 10.1%. Main drivers of success were food trade, building, car and machinery business. Earning-per-share of 2011 stands at 1.85 compared to 2.08 in 2010. A dividend of â‚ ¬ 1.2, 65% of the EPS was issued. Keskos market share is 35% and local major competitors are: S-Group (45%) Suomen Lahikauppa International competitor includes: Lidl Internal Kesko is controlled by its shareholders. Shareholders elect the Board of Directors and Auditor. Kesko Group is managed by the Board and the Managing Director who is also the President and CEO. CEO and President are selected by the Board of Directors. The company has Corporate Management Board having 7 members that control different divisions and responsibilities of the group. All Kesko Board members are non-executive directors. In 2011 it was decided by the Board that all of its members are independent of its companys shareholders. The Board ensures that the companys administration, operations and accounting as well as financial management controls are in place. Shareholding as below: The companys share capital is â‚ ¬ 197.2m. Total number of shares is 98.6m of which 31.7m are classed as A shares and 66.9m are B shares. Share A carries 10 votes and Share B one vote. Key group strategies include: Growth in Russian Regions Investment in development of store network Development of e-commerce Healthy profitable growth and increase shareholder value. All in all Keskos capital expenditure in growth stands at â‚ ¬ 425m in year-2011. Six new K-citymarket stores, 17 K-supermarkets in food business, 4 new K-rauta stores in building and home-improvement, 1 Kodin Ykkonen departmental store. The aim is to open 10 new stores in Russia with approx. â‚ ¬600m expenditure till 2015. Overview: Kesko: YEAR 2011 â‚ ¬m 2010 â‚ ¬m Turnover % Change 9,460 7.8% 8,776 Cost of Sales % Change 8163 8.17% 7546 Operating Profit % Change 281 -8.4% 307 Profit after Tax % Change 197 -8.8% 216 Operating Cash flow % Change 215 -51% 438 Capex % Change 427 30.2% 328 Total Debt (Long + Short term) % Change 400 -16.1% 477 Total number of Employees % Change 18,960 4.1% 18,215 The difference between costs and sales determines the operating profit. Though turnover is healthy, decrease in operating profit can be attributed to increase in cost of sales. Expenses also increased and in totality affected the profit position. Increase in capital expenditure is due to expansion in international markets and machinery which impacted negatively on the cash-flow position. Total debt position decreased which shows a healthy sign of effective use of company resources. Employee number remains constant. Koninklijke Ahold: YEAR 2011 â‚ ¬m 2010 â‚ ¬m Turnover % Change 30,271 2.5% 29,530 Cost of Sales % Change 22,350 3.4% 21,610 Operating Profit % Change 1,347 0.8% 1,336 Net Income % Change 1,017 19.2% 853 Operating Cash flow % Change 1,786 -15.4% 2,111 Capex % Change 881 -21.1% 1117 Net Debt % Change 1,088 47.6% 737 Total number of Employees % Change 218,000 2.3% 213,000 In comparison to Kesko, Ahold is 3 times bigger company as above. c).Ratio Analysis The ratio analysis is made up of performance, working capital, liquidity/solvency and shareholder ratios. Performance ratio is how well the company manages its assets and converts them into revenue and how efficiently converts its sales into cash. The better these ratios are the better value for shareholders. Kesko in comparison with Ahold Performance calculations 2011 2010 Change in 2011 Ahold 2011 Gross margin 2011: 13.7% 14.0% -0.3% 26.17% 1297/9460 2010: 1230/8776 Expenses/sales 2011: 18.1% 18.4% -0.3% 21.72% 1721/9460 2010: 1622/8776 Net margin* 2011: 2.9% 3.5% -0.6% 4.45% 281/9460 2010: 307/8776 Asset turnover 2011: 3.6 3.4 0.2 2.92 9460/2565 2010: 8776/2550 Return on 2011: 12.5% 13.9% -1.4% 12.99% Capital 281/2233 employed * 2010: 307/2210 Gross margin has declined because of increase in cost of sales sub-sequentially affecting the net margin. Slightly better asset turnover shows improved sales performance by every â‚ ¬ invested in the given year. Given the retail nature of the business this is normal. ROCE is not a matter of huge concern, however needs to be monitored closely. The ROCE decline could be the reduced profits attributed to shareholders. Ahold on the other hand shows big numbers. From retail perspective, Keskos performance is not bad at all. There are few dips in the numbers which are usual for a transactional retail business. d).Working capital is used to measure the companys short-term financial health. It is also called operational liquidity for the period of 12 months. Positive working capital can prove that the company can pay its short-term liabilities well. Negative working capital will increase the risk of default on short-term liabilities. Keskos working-capital ratios Working Cap Calculations 2011 2010 Change Ahold 2011 Inventory days 2011: 38.8 days 36.6 days 2.2 23.9 (divided by CoS) 867 x 365/ 8,163 2010: 757365/7,546 Debtor days 2011: 27.0 days 25.8 days 1.2 9.1 (divided by 700 x 365/9,460 sales) 2010: 620365/8776 Creditor days 2011: 51.3 days 52.4 days -1.1 39.8 (divided by CoS) 1148 x 365/ 8,163 2010: 1,085 x 365/ 7,546 Some difference year-on-year. Increase in inventory days shows negative cash-flow and control on inventory. Increase in debtor-days is bad for cash hence the cash position. This could be poor collection or price negotiations for discounts. Also seems like customers are taking longer to pay. Early payments to creditors depict the decrease in creditor-days, a virtuous gesture for suppliers but not good for cash. (d).Liquidity and Solvency ratios also a measure of companys ability to pay its short-term obligations also called a Quick ratio. This means that the current assets should outweigh current liabilities to stay positive. It also indicates the companys ability to meet interest payments. Higher the level of capital compared to debt, the lower these ratios are. Liquidity calculations 2011 2010 Change Ahold 2011 Current ratio 2011: 1.33 1.49 -0.16 1.13 2161/1625 2010: 2407/1616 Acid test 2011: 0.80 1.02 -0.22 0.81 2161- 867/1625 2010: 2407-757/1616 Solvency 2011 2010 Change Ahold 2011 Interest cover 2011: 13.40 18.05 -4.65 281/21 4.01 2010: 307/17 Gearing 2011: 0.18 0.21 -0.03 0.56 400/2233 2010: 477/2210 Decrease in current ratio is due to in-efficiencies in debtor and inventory turnover. Shortfall in cash has deteriorated acid test which is more conservative than current ratio. Variation in interest cover is an imminent concern given its retail landscape and possible inability to meet its debt obligations. Keskos cost of sales needs to be addressed to better manage profits sub-sequentially improving its cash reserves to shield the interest-cover shortfall. Decrease in gearing is a positive sign, showing Keskos good portion of equity is in place displaying monetary strength. e).Shareholders and Investment ratios Return on equity is the measure to see how much profit is left for shareholders. Higher this ratio, higher the profit for shareholders. Shareholders can decide to withdraw this profit or keep it invested in the business as retained earnings. Earning per share is a measure of firms profitability. Dividend cover is the number of times a firms dividends to shareholders is paid from its net profits. Higher the cover, more the ability to pay the shareholders. PE ratio measures price compared to earnings. The bigger the earning, more potential of rise in future earnings. Shareholder Calculations 2011 2010 Change Ahold 2011 Ratios 2011: ROE 197 / 2,233 8.8% 9.7% 0.9 17.3% 2010: 216 / 2,210 2011: 1.85 2.08 0.1 0.92 EPS 197 / 99 2010: 216 / 99 2011: Dividend Cover 1.85 / 1.20 1.54 times 1.6 times 0.06 2.30 EPS / Dividend 2010: Per share 2.08 / 1.30 PE Ratio 2011: 24.1 / 1.85 2010: 34.70 / 2.08 13.0 16.82* -3.82 11.48 Low ROE is result of low profit. Debt in the company also affects ROE, but in Keskos case debt has been reduced which might not be relevant for decline in ROE. Keskos increase in intangible assets can also result in low ROE. EPS is declined resulting from decline in operating profit, and possible increase in capital expenditure from last year. But still manageable and shows strong growth potential. Dividend cover is constant but relatively lower than Ahold. PE ratio is declined from previous year. This may show low market confidence in 2011. *http://www.kesko.fi/en/Investors/Share-information/Key-indicators-by-share/ f).Conclusion and Recommendation: Kesko is a strong company with year-on-year growth. However year 2011 has underperformed. The year seems a bit challenging ranging from its high cost of sales and higher volatility in its share price. Given its higher interest payments shows a possibility of higher borrowing costs. Increase in intangible assets (Computer Software, Licences) and expansion cost in the form of CAPEX is also a driver of declining cash-flows. The seasonal nature of operations arising from seasonal fluctuations took a toll on profits which are not earned throughout the year. Depending on Keskos segmental characteristics these profit variations are possible. Kesko Strengths Diversified product portfolio Effective Business model Growth in E-commerce Strong chain support functions Weaknesses High dependency on euro-zone. Lack of skilled labor Foreign exchange risks Changes in the Groups structure by creating a new subsidiary in Russian market and transferring 36 stores to the subsidiary has also affected Keskos performance. Uncertainties in the euro zone, volatility in consumer demand is affecting the appetite for CAPEX in the euro zone. Hence the reason of strong expansion in Russia. E-commerce is booming with international customers creating alternative benefits for Kesko. Future looks favorable for Kesko. Low investment in euro-zone will offset high CAPEX in Russian region. Steady growth in the food business expects to continue. Home and building business is expected to balance against consumer demand. Net sales are expected to grow next year i.e. 2013. All in all the growth-story looks good for Ahold. Ahold has the means to acquire Kesko. However my recommendation would be hold the acquisition desire for now till numbers become promising. As an alternative a 20% shareholding now will be suitable for Ahold. In both scenarios, if Kesko does well in the future, Ahold is sure to benefit from its interest in Kesko. Answer 3: The cash-flows of the project are below: Year 0 2014 2015 2016 2017 2018 Sales Revenue 0 300,000 510,000 680,000 450,000 240,000 Loss of Contribion (35,000) (35,000) (35,000) (35,000) (35,000) Variable Costs (160,000) (240,000) (280,000) (210,000) (140,000) Fixed Costs (22,000) (22,000) (22,000) (22,000) (22,000) Op Cash flow 65,000 195,000 325,000 165,000 25,000 Working capital (70,000) (70,000) (70,000) (70,000) (70,000) Capital Cost (500,000) Residual Value 100,000 Net Cash flow (500,000) 78,000 338,000 598,000 278,000 98,000 Depreciation of 80,000 is not included in fixed costs as it does not affect cash. Head office overheads are also not a constant fixed cost over 5 year period so not including in the fixed costs. The Payback time is approx. 2 years 6 months. Net Present Value calculation is below with discount rate of 15%. Year Cash flow PV Factor PV 0 (500,000) 1.0 (500,000) 1 78,000 0.870 67,860 2 338,000 0.756 255,528 3 598,000 0.658 393,484 4 278,000 0.572 159,016 5 98,000 0.497 48,706 NPV 424,594 NPV is positive, so recommendation to the board is to go ahead with the project With adding back depreciation of 40,000 i.e. 80,000 x 5 at the end of 5 year: Year Cash flow PV Factor PV 0 (500,000) 1.0 (500,000) 1 78,000 0.870 67,860 2 338,000 0.756 255,528 3 598,000 0.658 393,484 4 278,000 0.572 159,016 5 98,000 0.497 48,706 Depreciation (400,000) NPV 24,594 NPV is still positive, so recommendation to the board is to go ahead with the project. The IRR is 43.7%, where NPV becomes zero. Answer 4: Usefulness of Company accounts to assess value of companies Hello friend, In order to understand company accounts, the financial accounting statements provide a representation of financial position and performance of the company. Company accounts are made up of 3 statements: Balance Sheet (aka Statement of financial position) Income Statement ( aka Profit and Loss account) Cash-flow statement Cash-flow statements show how much cash came in or went out in a particular period. For example, I started a business of selling flowers with  £40. On Tuesday morning, I bought flowers worth  £40 and sold three-quarters of flowers for  £45 cash that day. My cash-flow position during Tuesday will look like this: Cash invested by me:  £40 Cash from sales of flowers:  £45 Cash paid to buy flowers: ( £40) Closing balance of cash  £45 Income statements show how much wealth i.e. profit is generated or lost by the company over a period of time. Profit and loss can be defined as increase or decrease in wealth through trading activities. For income statement it shows wealth generated on Tuesday. It represents the difference between the value of the sales made and the cost of goods sold. Sales revenue:  £45 Cost of goods sold (3/4 of  £40) (30) Profit  £15 It is the cost of flowers sold that is matched against the sales revenue to get profit. Not the whole cost of flowers is shown as unsold flowers in my case  ¼ of  £40=  £10 will adjusted against the future sales revenue that it will generate. Balance sheet shows accumulated wealth of the business at the end of the given period. It also shows what form have that wealth taken? For balance sheet the wealth created at the end of Tuesday trading. It will show list of resources held at the time. Cash (closing balance)  £45 Stock or inventory for resale  £10 Total assets  £55 Equity  £55 Equity is the stake of the owner in the business. Where-as assets include cash and stock. Cash is a vital resource for a business to function. It is used to retire debt and or for the purchase of stock. However, reporting cash alone will not portray the health of the business. The changes in cash do not tell us how much profit is generated. Thats why income statements are used. A balance-sheet on the other hand shows total wealth of the business. Cash is only one form in which wealth can be held, however in bigger businesses there are land, machinery and equipment is also classed as wealth in the balance-sheet. A combination of these statements states the financial position and health of the company. The relationship of these statements can be seen by a figure below: Another way to valuing a business is through company assets, price of parallel business and finally the cash-flow. Company assets are appraised to assess their value deducting any liabilities. The sales of similar business are valued in the area of your business. Location is very important in valuing the business though the limitations include undermining the value of your business by management and sales. The most effective way is the liquidity of the business i.e. cash position minus liabilities. You know what is coming your way. Issues: Issues related to these statements are the way they are presented. Use of creative accounting can somehow alter the real picture and position of the company. Audited company accounts are seldom used by investors or potential buyers, primarily for the reason of creativeness. Depending on the nature of your query for valuing the company, apart from simplified company accounts mentioned above, it can vary from share price to ratio analysis to cost of capital or debt and so on.

Academia and Briefly Summarize

BAYLORIndicate any special experiences, unusual factors or other information you feel would be helpful in evaluating you, including, but not limited to, education, employment, extracurricular activities, prevailing over adversity. You may expand upon but not repeat AMCAS application information. 2000 character limit.COLUMBIA1. Please describe your parents’ occupations: (250 char.)2. If your first and last name is often mispronounced, how do you pronounce it? (250 char.)3. Have you previously applied to P&S? (Yes/No)If yes, briefly summarize your activities since your previous application:4. If you took time off from your undergraduate studies, please briefly summarize your reasons for doing so. (250 words)5. In what collegiate extracurriculars did you engage? (250 words)6. Did you work for compensation during college during the year or the summer? YesNo If so, what did you do? How many hours a week did you work? (250 words)7. If you have graduated from college, please briefly summarize what you have done in the interim. (300 words)8. What challenges do you expect to arise from living and working in a complex urban environment? How will you meet them? (250 words)9. Is there anything else you would like us to know? (300 words)DARTMOUTH1. Please indicate your plans for the 2012-13 academic year. If in school, please list your courses. If working, let us know something about the nature of your job.2. Please share with us something about yourself that is not addressed elsewhere in your application and which could be helpful to the Admissions Committee as we review your file.HARVARDD. If you have already graduated, briefly (4000 characters max) summarize your activities since graduation.E. If there is an important aspect of your personal background or identity, not addressed elsewhere in the application, that you would like to share with the Committee, we invite you to do so here. Many applicants will not need to answer this question. Examples might include si gnificant challenges in access to education, unusual socioeconomic factors, identification with a minority culture, religion, race, ethnicity, sexual orientation or gender identity. Briefly explain how such factors have influenced your motivation for a career in medicine.(4000 character maximum)DUKEDescribe the community in which you were nurtured or spent the majority of your early development with respect to its demographics. What core values did you receive and how will these translate into the contributions that you hope to make to your community as a medical student and to your career in medicine?What is the most significant moral or ethical dilemma that you have faced in your life (excluding instances of academic dishonesty involving another person)? Describe how you dealt with and potentially resolved it, including beliefs, resources, individuals, etc. How did this dilemma and its resolution change your life and what, if any, impact will this have on your future as a health c are provider?What has been your most humbling experience and how will that experience affect your interactions with your peers and patients?The curriculum at the duke university school of medicine is unique and academically challenging. Please describe how the duke curriculum is well-suited to your learning style and how it will serve your long term career objectives.There are 3 optional essay topics:Giving Back To Your Community: What is the value of giving back to your community? Is it a more important attribute of a physician than of others performing other roles within a community?How Are You Misunderstood: What are people most likely to misunderstand about you and why?

Marketing Analysis for Samsung Essay

INTRODUCTION Samsung was founded by Byung-Chull Lee on March 1, 1938, in Taegu, Korea, with 30,000 won. Initially his business focused primarily on trade export, selling dried Korean fish, vegetables, and fruit to Manchuria and Beijing. In little more than a decade, Samsung-which means â€Å"three stars† in Korean-would have its own flour mills and confectionery machines, its own manufacturing and sales operations, and ultimately evolve to become the modern global corporation that still bears the same name today. For over 70 years, Samsung has been dedicated to making a better world  through diverse businesses that today span advance technology, semiconductors, skyscraper, plant construction, petrochemical, fashion, medicine, finance, hotels and more. The flagship company, Samsung Electronics, leads the global market in hightech electronics manufacturing and digital media. Samsung move to partner with Google for their Android OS and the recent series of Smartphone has tremendously brought their revenue to greater heights. In 2011, the stellar Samsung GALAXY S II sold more than 10 million units worldwide, achieving the No. 1 global market share for smartphones (2011 Samsung Electronics Annual Report). Approx 94.5% of Singapore household has a hand phone in 2008.   Likely the percentage should be higher now. The functions of a hand phone have evolved greatly in this decade. From means of communication via SMS and calls, hand phone or rather Smartphone serves consumers a far range of functions today. A Smartphone offers more advance computing ability and connectivity then conventional mobile phone. Generally the established Smartphone brands in Singapore are Apple, Samsung, Nokia, HTC & Motorola. The rapid growth and success of Samsung are the reasons why our group chose this brand. We hope through in-depth research and analysis can we better understand the success factors behind this rapidly sprang brand, particularly in the Smartphone industry. 2.  SURVEY RESEARCH Survey research approach is done via questionnaire targeting general public. It can be used to gather information about people’s knowledge, attitudes, preferences, or buying behaviour for Smartphones. Basha and Harter (1980) state that â€Å"a population is any set of persons or objects that possesses at least one common characteristic. Through our survey, we sample a population which we hope can be representative of the Singapore consumers. This approach is selected by the group because it is the most widely used method to collected primary data to meet our research objectives. Through the primary data collected, we hope to draw certain information through analysis on consumer behaviour on the purchase of smartphones. Research Objectives The purpose of this survey is to understand our responders behaviour and attitude towards smartphone. We segmented the questionnaire into 4Ps namely product, price, place and promotion. We hope that with this survey finding we can better understand the needs of smartphone users, why they will or will not be using and also the reason why others are not using Samsung smartphone and the likelihood of them using Samsung in future. With the findings, we hope to draw conclusive data and make recommendations. 2.2  Contact Method We personally gave out the survey forms as shown in Appendix 1 to the general public at Ang Mo Kio Hub and Nanyang Polytechnic. We have given out to 41 respondents and used 30 of them for analysis (11 were deemed as void due to insufficient information or non completion) 2.3 Sampling Plan & Survey Questions A segment of the population selected for marketing research to represent the population as a whole. The survey is to be conducted with a sampling size of 30.The questions were limited to 10 to avoid being too lengthy resulting in fatigue respondents. First part of the survey included information pertaining respondents’ background such as gender & age which then we proceed to gathering information like consumer preference. Five point Likert scale was used to measure few variables. 3.  CUSTOMER We will further describe the customer segment for Samsung smartphones using demographic, psychographic and behavioural factors. 3.1  Demographic factors The targeted segment is for both male and female, probably age between 14 and 55, skewed more towards the Gen Y. The country or area should have good network (Eg: 3G, 4G, wireless connection) to ensure optimal usage of Smartphone features. 3.2  Psychographic factors There are basically three segments of users broadly in which Samsung wishes to target; entertainment focused, communication-focused and information-centric users. The entertainment-focused users are generally younger group which see a mobile device as a lifestyle choice, and they’re willing to pay extra for a device that’ll help keep them entertained. Entertainment can also include things like social messaging with friends, facebook and networking. The communication-focused users are extroverts who live to communicate with others. They’re often in people-facing jobs like sales. They’re willing to pay extra for a mobile device that lets them keep up with others in multiple ways. E-mail, SMS, voice, conferencing, video calling — basically, anything communication-related is compelling to them, and they will pay extra for a device that does it well. The information-centric users are more introverted. Rather than focusing on their dialog with others, they tend to do a lot of thinking on their own, and want their mobile device to be a  memory supplement and a means to capture new information. They’re will ing to pay extra for features that help them capture and remember ideas and information. 3.3  Behavioural factors Past users of Samsung (Be it handphone or other appliances) will likely purchase Samsung again due to familiarity and if they have had pleasant experience with the phone, the likelihood of repurchase is high. 4.  MARKETING MIX 4.1  Product a.  3 Levels of Product A product is normally defined as the physical items that consumers purchase. But actually the nature of a product can be further explored in 3 levels. They are The Core Product, The Actual Product and The Augmented Product which are further explained in Appendix 3. Smartphone industry is growing rapidly with many new brands coming in for a slice of market share each fighting towards fulfilling consumer growing wants. Understanding the 3 levels of product can better enable Samsung to position itself. Based on Kotler’s Three Level of Product Framework, the Samsung smartphone core product is giving consumers tool of communication. Through product  differentiation of smartphones, consumers are given a variety of choice for the actual product as illustrated in Appendix 3. Samsung’s strategy will ensure it is already at the finishing line when consumer tastes change hence it produces a wide product range for every taste and demand. b.  Consumer Product Samsung smartphone is categorised as a Shopping Product. Consumers will compare on the price, style, function, quality and suitability of the smartphone due to the multiple brands and model available in the market. Having achieved unmatched global competitiveness in hardware, Samsung has been focusing on enhancing its software capabilities in user interface, user experience, and design and brand awareness. To remain competitive, Samsung must continuously develop quality and innovative smartphones to stay in the lead. c.  Brand Development Strategy The most difficult step in developing a marketing plan is normally the process of developing a brand strategy. It’s often the biggest challenge face by most businesses but it is an important step in creating the company identity. In the smartphone market, Samsung branding still falls behind Apple. However Samsung in recent years has been very aggressive and rapidly gaining market share. We will move on to discuss Samsung brand development strategy. ‘While many companies that sponsor events are focused on boosting their brand awareness, Samsung Electronics looks at things a little differently. The Korean giant – a major sponsor of the recent Youth Olympic Games (YOG) – says that â€Å"brand preference† is a better indicator of whether its investment has paid dividends.’ (The Straits Time, 13 Sept 2010) Samsung sponsorships in Youth Olympic Games (YOG) and the upcoming London 2012 Olympics will certainly provide strong profile and brand power. Through sponsorship in the Olympics, Samsung seeks to, through user experience boost up their brand. d.  Survey Result on Target Segment Perception (Product) From our survey findings, 94% of the respondents are smartphone users with with 2 respondents one non-smartphone user and one unsure. We have checked with the unsure respondent and respondent was using a smartphone bought to her by her daughter. The strong percentage of smartphone users 94% as per survey results showed a strong And 60% of the respondents responded they are likely to purchase Samsung for their next phone. 4.2  Price a.  General Pricing Approach Price will always be the key concern of consumers’ before making any purchasing decision (Smith and Carsky, 1996). The level of price is found to positively affect behavioral intentions mainly because price establishes image of the brand in the eyes of the consumers (Aaker, 1991). The price set for any product including smartphone is crucial as it directly impacts on consumer purchase. The company’s range of low- to high-end smartphones caters to almost every budget. Based on client perceived value and market offerings, Samsung adopts  a value based pricing strategy. ‘If there is a consumer for it, we will offer the product, says Younghee Lee, senior vice-president of sales and marketing for Samsung’s mobile business.’ (The Business Time, 17 March 2011) b.  Price Compared to Competitors Samsung stays on a competitive price and with its vast product line; every price range is met with a product. We have used the recent launch of Samsung S3 Smartphone with its competitors as illustrated in Appendix 4. Samsung S3 smartphone is considered the high end product series in the smartphone market and we have chosen close competitors mainly Apple iPhone 4S and HTC One. From the comparison, though Samsung S3 is the latest product launch amongst the three phones, it still stays at a less than $100 price difference with competitors. The price Samsung offers is very close to its competitors giving it an edge over them. c.  Product Mix Pricing Strategies The product mix is the collection of products and services that a company chooses to offer its market and pricing strategies based on what objectives the company had set for them. Samsung’s product strategy is to create Android devices across varying price points and flood the market through as many carriers across the world as possible. The original Galaxy S was sold through about 240 different global vendors. Product-line pricing involve setting price for different products within a product range at different price point is the strategy Samsung applied for smartphone. For example, Samsung had a lot of smartphones products with different design and feature at different prices as shown in Appendix 5. The greater the feature and benefit obtain, the higher the consumer have to pay. d.  Price Adjustment Strategies A set of strategies used by companies to adjusted their basic prices to account for various customer differences and changing situations. The  commonly use strategies are Discount and Allowance Pricing, Segmented Pricing, Psychological Pricing and Promotional Pricing. In the smartphone industry, discount and allowance pricing adjustment strategy is commonly used. This strategy allows companies to adjust their basic price to reward customers for certain responses, such as early payment of bills, volume purchases, and off-season buying. This strategy can come in many forms. Seasonal discount is a price reduction to buyers who buy merchandise or services out of season. For example, when Samsung Galaxy S3 is launch, the price of Samsung Galaxy S2 was reduced. In this scenario, older model of smartphone is the same as off season products. Seller will offer discount to encourage the buyer to purchase off older models. Allowances are another type of reduction from the list price. For example, trade-in allowances are price reductions given for turning in an old item when buying a new one. Trade-in allowances are most common in vendors selling smartphone. e.  Survey Result on Target Segment Perception (Price) Through our survey findings, most respondents rated price as ‘most important’ factor to consider when buying a smartphone. An interesting thing to note is 40% of the respondents mentioned they will pay up to $300 for a smartphone and 30% mentioned they are willing to pay more than $1500 for a smartphone. It is therefore important to draw specific data to understand the needs and wants for those segmented clients. 4.3  Place a.  Number of channel levels Place is also known as channel, distribution or intermediary. It is the mechanism through which goods are moved from the manufacturer to the consumer. We have analysed Samsung smartphone distribution as shown in Appendix 6. Samsung practises indirect channels using selective distribution. The channel contains one to two intermediary levels. Through the major telcos and authorised dealers, Samsung distribution in Singapore is very intense, and this is exactly what Samsung wants. One can purchase a Samsung Smartphone at every neighbourhood in Singapore. All authorised distributors were given product training & support whenever needed. All telco (SingTel, M1, Starhub) also have dedicated staff to provide training & desk support to consumers should they require assistance on how to use the smartphones. b.  Channel intensity From the Appendix 6, the distribution channels are intense diverting to over 300 outlets making it easily accessible for consumers. The wide and broad channels are one factor for Samsung success. c.  Number of outlets, location The outlets for Singapore are estimated to be over 300, with at least one outlet in every neighbourhood and the availability to buy online with free delivery. d.  Survey Result on Target Segment Perception (Place) From our survey results, 99% of the respondents bought their phone through the various channels with 49% through telco and dealers. Consumers prefer buying phones with contracted lines and this might suggest Samsung can consider giving a better incentive to telcos and dealers to further boost up their sales. 4.4  Promotion a.  Marketing Communications Objectives Marketing communications objectives is paramount to marketing success. If there is no objective, than there will be no way to measure the marketing success. After all, an objective is the goal intended to attained, which should be attainable and can be measured. Understanding the Product Life Cycle (as illustrated in Appendix 7) of each product can enable the company to respond with the marcom objectives. Though Samsung started its Smartphone in 2008, in our opinion the stage for Samsung smartphone is at its maturity stage in the Singapore context. During launch of a new smartphone, the objectives will be more informative like: Telling market about the new product Explaining how a product works Suggest new uses for a product Marketing effort by Samsung is normally conducted for launch of new products. As for their existing products, it is conducted together with their vendors like IT fairs and Electronic fairs. The marketing communication objectives for these efforts will be different from a new launch. The objectives these efforts are: Encourage brand switching Persuading customers to purchase now Build brand preference Keep product in consumers’ mind Maintain top of mind awareness Promotion Mix Attractive prices of good products are not enough for a business to generate maximum sales and profits. The benefits of products have to be communicated to customers. In marketing, this is commonly known as â€Å"promotion†. The total marketing communications programme is called â€Å"promotion mix†. Elements of promotion mix include Advertising, Sales Promotion, Public Relations, Personal Selling and Direct Marketing. The elements of promotion mix used by Samsung smartphone are: 1) Advertising Deliver marketer’s message using any paid form of mass media outlets, it involve non-personal presentation and promotion of ideas, goods or services by an identified sponsor. The 3 purpose of advertising are Informative, Persuasive and Reminder. Samsung has been using all three purposes for their advertising campaign in different occasion. Let’s look into Samsung individual advertising purpose and objectives. Sales Promotion Sales promotions normally refer to encouraging customers to respond or undertake some activity using some form of incentives through special short-term techniques. Some of the sales promotions technique used by Samsung smart phone is: a)  Joint promotion with Major Telco Samsung smartphone often had joint promotion with major telco to boost up the sales of the smartphone. For example the  promotion that was in the Starhub official site that offers  Samsung Galaxy S3 at different price depending on the plan  sign up or the Samsung Galaxy S2 at a low price with 2 years plan. (As shown in Appendix 8) b)  Joint Promotion with Major Electronic Mega Store Samsung always conduct joint promotion with major electronic mega store during ad-hoc promotion fair. Premiums like additional SD card, screen protector, casing or 0% interest instalment plan is often used during such fair. This promotion is used to enhance the sales by offering some perks and also to clear stock for the older model smartphone. (As shown in  Appendix 9) Survey Result on Target Segment Perception (Promotion) Through our survey findings, respondents rated ‘current mobile plan expired’ as the most important factor which influence their purchase of smartphone. This might be an important indicator for Samsung to have intense tie up promotions with the telcos to offer consumers attractive rates for those plans that have expired. A significant percentage of respondents also mentioned the launch of new  smartphone is influential in making the purchase. These are likely the consumers who are willing to pay a premium price for the latest launch of smartphone. Samsung can utilise this and through advertising for example; television commercial, newspaper advertisements, internet announce the new launch in a tasteful manner to attract this segment of consumers. 5.  CONCLUSION Constantinides (2006) emphasizes that marketing mix is a framework of the dominant marketing management paradigm to identify market development, environmental changes and trends. Several studies confirm that the 4Ps is indeed the trusted conceptual platform of practitioners dealing with operational marketing issues (Romano and Ratnatunga, 1995; Coviello et al., 2000). The wide acceptance of the 4Ps among field marketers is the result of their profound exposure to this concept during college years, since identifying the 4Ps as the controllable parameters is likely to influence the consumer buying process and decisions (Brassington and Pettitt, 2003; Soekartawi, 2005a). We conducted the survey to evaluate different segments of customers’ attitude toward 4Ps. It is expected that with this survey findings with the primary data we have collected can we better understand and provide recommendation for Samsung  to develop greater understanding of how to serve existing and potential customer based on 4Ps concept for a basis to meet profitability of their business. Through our survey, we realised a very important trend; almost 94% of the respondents carry a smart phone. Assuming the latest data from Singstat stating 95% of Singapore household having a handphone, and with that equate to 94% of them having a Smartphone, the total volume of smartphone market is estimated to be minimum 3-4Million in Singapore alone. Current users of Samsung are generally satisfied with the features and functions of the phone. However as Samsung faces close competition with its competitors, Samsung needs to continuously come out with new innovation and technology to stay in the lead. As Samsung is in its maturity stage of the product life cycle, Samsung needs to differentiate itself from competitors. However the tricky part is to position products across different, yet overlapping, market segments. It is important to note, however, that since some consumers may belong to both segments, positioning claims for a product should never conflict. To avoid confusing consumers, it may be necessary to make a broad appeal to both segments and then change the positioning slightly within each segment. As Samsung smartphone do has many variations, approximate 24, the positioning within each range should be unique and clear to consumers. Overall we feel that Samsung has done well to come this far and stay in the lead. The advantages Samsung has over competitors are the wide distribution channels and the vast product variations. Samsung must continue to ensure its distributors and telcos are given attractive incentives which in turn can bring in non Samsung users. Samsung should also focus on building brand loyalty, which will ensure retain of past and current Samsung consumers. Their primary goal should be to maintain their current market share and extend the product life cycle. REFERENCES Samsung Electronics 2011 Annual Report accessed on 25 June 2012 http://www.samsung.com/us/aboutsamsung/corporateprofile/download/2011_annual _rpt.pdf Singapore in figures 2011 http://www.singstat.gov.sg/pubn/reference/sif2012.pdf accessed on 25 June 2012 Constantinides E (2006). The Marketing Mix Revisited: Towards the 21st Century Marketing. J. Mark Manag, 22: 407-438. Porter, M., â€Å"Competitive Strategy – Techniques for Analyzing Industries and Competitors,† (New York: The Free Press,1980). Smith, M.F., and Carsky, M.L. (1996). Grocery Shopping Behaviour:A Comparison of Involved and Uninvolved Consumers. Journal of Retailing and Consumer Services, 39 (2), 73-80. Aaker, D.A. (1991), Managing Brand Equity. Capitalizing on the Value of Brand Name, Free Press, New York, NY. Busha, Charles H., and Stephen P. Harter. Research Methods in Librarianship: Techniques and Interpretation. Orlando, FL: Academic Press, Inc., 1980. Romano C, Ratnatunga J (1996). The Role of Marketing, Eur J. Mark, 29: 9-30. Brassington F, Pettitt S (2003). Principles of Marketing, Third Edition, Prentice Hall/Financial Times. New Jersey. http://www.bloomberg.com/news/2012-04-27/samsung-overtakes-nokia-as-world-sbiggest-phone-vendor.html http://www.samsung.com/sg/aboutsamsung/corporateprofile/valuesphilosophy.html

Three Sisters the Ancient Cornerstone of American Farming

An important traditional form of agriculture is the use of intercropping strategies, sometimes called mixed cropping or milpa agriculture, where different crops are planted together, rather than in big monoculture fields as farmers do today. The Three Sisters (maize, beans, and squash) is what Native American farmers called a classic form of mixed cropping, and archaeological evidence has shown that these three American domesticates have been grown together for perhaps 5,000 years. Growing maize (a tall grass), beans (a nitrogen-fixing legume) and squash (a low-lying creeper plant) together was a stroke of environmental genius, the benefits of which practice have been studied by crop scientists for decades. Growing the Three Sisters The three sisters are maize (Zea mays), beans (Phaseolus vulgaris L.) and squash (Cucurbita spp.). According to historical records, the farmer dug a hole in the ground and placed one seed of each species into the hole. The maize grows first, providing a stalk for the beans, which reach upward for access to the sun. The squash plant grows low to the ground, shaded by the beans and corn, and keeping the weeds from affecting the other two plants. Today, intercropping, in general, is recommended as an alternative system for small-scale farmers to improve their yield, and thus food production and income in limited spaces. Inter-cropping is also insurance: if one of the crops fail, the others might not, and the farmer is more likely to get at least one of the crops to produce in a given year, no matter how extreme the weather circumstances. Ancient Conservation Techniques The microclimate produced by the three sisters combination favors the survival of the plants. Maize is notorious for sucking the nitrogen out of the soil; beans, on the other hand, supply replacement mineral nitrogen back into the soil: essentially, these are the effects of crop rotation without actually having to rotate crops. Overall, say crop scientists, more protein, and energy are produced by intercropping three crops in the same space than that achieved by modern monocultural agriculture. Maize maximizes photosynthesis  and grows straight and tall. Beans use the stalks for structural support and to gain greater access to sunlight; at the same time, they bring atmospheric nitrogen into the system, making the nitrogen available to maize. Squash performs best in shady, humid places, and that is the type of microclimate provided by the corn and beans together. Further, squash decreases the amount of erosion that plagues monocultural cropping of corn. Experiments conducted in 2006 (reported in Cardosa et al.) suggest that both nodule number and dry weight of beans increases when intercropped with maize. Nutritionally, the three sisters provide a wealth of healthy foodstuff. Maize provides carbohydrates and some amino acids; beans provide the rest of required amino acids, as well as dietary fiber, vitamins B2 and B6, zinc, iron, manganese, iodine, potassium, and phosphorus, and squash provides Vitamin A. Together, they make a great succotash. Archaeology and Anthropology Its difficult to say when the three plants began to be grown together: even if a particular society had access to all three plants, we cant know for sure that they were planted in the same fields without direct evidence from those fields. Thats pretty rare, so lets look instead at the domestication histories, which are based on where and when the domesticated plants turn up in archaeological sites. The Three Sisters have different domestication histories. Beans were domesticated in South America first, about 10,000 years ago; squash followed in Central America about the same time; and maize in Central America about a thousand years later. But the first appearance of domesticated beans in Central America was not until about 7,000 years ago. Agricultural use of the co-occurrence of the three sisters seems to have spread throughout Mesoamerica by about 3,500 years ago. Maize was the last of the three to reach the Andes, between about 1800 and 700 BC. Intercropping with the Three Sisters has not been identified in the American northeast, where the European colonists first reported it, until AD 1300: maize and squash were available, but no beans have been identified in a North American context any earlier than 1300 AD. By the 15th century, however, the intercropped triple threat had replaced the original domestic maygrass-chenopod-knotweed agricultural crops planted throughout northeastern and midwestern North America since the Archaic period. Planting and Harvesting There are accounts from various Native American historical sources as well as reports of early European explorers and colonists on maize-based agriculture. In general, Native American farming in the northeast and midwest was gender-based, with men creating new fields, burning grass and weeds and trenching the fields for planting. Women prepared fields, planted the crop, weeded and harvested the crop. Harvest estimates range between 500/1000 kilograms per hectare, providing between 25-50% of a familys caloric needs. In Mississippian communities, harvests from fields were stored in community granaries for use by elites; in other communities, the harvest was for family or clan-based purposes. Sources Cardoso EJBN, Nogueira MA, and Ferraz SMG. 2007. Biological N2 fixation and mineral N in common bean–maize intercropping or sole cropping in southeastern Brazil. Experimental Agriculture 43(03):319-330. Declerck FAJ, Fanzo J, Palm C, and Remans R. 2011. Ecological approaches to human nutrition.  Food Nutrition Bulletin 32(Supplement 1):41S-50S. Hart JP. 2008. Evolving the Three Sisters: The changing histories of maize, bean, and squash in New York and the greater northeast. In: Hart JP, editor. Current Northeast Paleoethnobotany II. Albany, New York: The University of the State of New York. p 87-99. Hart JP, Asch DL, Scarry CM, and Crawford GW. 2002. The age of the common bean (Phaseolus vulgaris L.) in the northern Eastern Woodlands of North America.  Antiquity 76(292):377-385. Landon AJ. 2008. The How of the Three Sisters: The origins of agriculture in Mesoamerica and the human niche. Nebraska Anthropologist 40:110-124. Lewandowski, Stephen. Dioheko, the Three Sisters in Seneca life: Implications for a native agriculture in the finger lakes region of New York State. Agriculture and Human Values, Volume 4, Issue 2–3, SpringerLink, March 1987. Martin SWJ. 2008. Languages Past and Present: Archaeological Approaches to the Appearance of Northern Iroquoian Speakers in the Lower Great Lakes Region of North America. American Antiquity 73(3):441-463. Scarry, C. Margaret. Crop Husbandry Practices in North America’s Eastern Woodlands. Case Studies in Environmental Archaeology, SpringerLink, 2008.