Lockheed Martin Exercise Essay

Question 1: The Lockheed Martin website gives the impression that this company strives to make ethics a top priority among its employees. Lockheed has successfully integrated marketing ethics throughout its corporate culture by instituting mandatory ethics training sessions. The company requires that employees make every effort to attend in-person training; however Lockheed makes online training available to those who are unable to attend to live training. This ensures that each and every employee has the opportunity to attend the ethics training session. In addition to having training sessions and requiring employees to acknowledge their completion of the course, Lockheed also has a clearly defined code of conduct, and the company expressly states its vision and values. The message of â€Å"doing what’s right,† respecting others, and doing the very best job possible are often repeated on the corporate website. The website also lists numerous additional links and resources for employees’ use. Question 2: The current ethical minute series does seem like it would be effective in establishing an ethical culture because the videos present realistic scenarios. First, the videos describe the ethical issue along with potential consequences. Next, the characters experience a conflict in the workplace, and they must decide whether they should follow the company’s procedure and possibly face negative consequences, or simply let the incident go unreported. The video shows the characters as they go through a thought process that is very similar to the way a real Lockheed employee might react. Overall, the video series appears to be effective because it presents ethical issues to employees in a way that is informative, entertaining, and the many employees will likely understand and relate to the message that is being delivered. R. J. Reynolds Tobacco Company Question 1: R. J Reynolds must make many considerations when formulating a marketing strategy. The company’s website indicates that the information that has been released on health risks related to tobacco use is a large concern. The website seems to reflect that the company feels obligated to state that individuals who have ceased using tobacco and those who have never started should avoid tobacco products. There is also a statement that minors should not use tobacco under any circumstances (including exposure to secondhand smoke) and that tobacco is harmful and no tobacco product has been deemed safe. The company also states that individuals should rely on statements by the Surgeon General and the CDC when making decisions about tobacco use. These statements reflect pressure from governmental agencies and outside groups to inform the public about the serious health risks that are associated with tobacco. The company also mentions that tobacco use should be allowed in adult venues. This indicates that the company feels that recent trends in smoking regulation are unfair and far too strict and are counterproductive to the business interests of tobacco companies. Question 2: R. J. Reynolds Company has used the negative impact that increased health concerns have had on the company to portray itself as a morally and socially responsible. Not only does the website convey information about health risks, but the company also uses changes in smoking regulation laws as a basis to encourage political activism, as stated on the Smoker’s Rights page. The media page also shows that the company has made large donations to community causes. These actions serve to portray the tobacco company as socially responsible and positive, though the company sells a product that has a negative impact on health and has consequently come under fire as a result.

Definition of Compassion Essays - Emotions, Giving, Compassion

Definition of Compassion Essays - Emotions, Giving, Compassion Definition of Compassion The author Barbara Lazear Ascher breaks down the definition of compassion whether if its something that a person will exhibit when confronted by dangerous situation. For example, when a beggar walks into a bakery or a food store, the store owner immediately gives that beggar some food because she fears that man may ruin the stores image or may scare customers away. She questions in present day, this scene gets replicated in so many different parts of the country. It makes us ask: Is this compassion or fear? The answer according to the author is fear. People are difficult to show compassion spontaneously. Some of them do have genuine compassion, but by and large, no compassion. Ascher begins her passage by describing a scene that most readers can relate to: the womans interaction with the homeless man on the street. Generally there are some senses of fear when in the presence of a man who know nothing about, and cannot expect anything from him at any given moment. This man stares at the children; then the mother instinctively protects her child, he stops before a blond baby in an Aprica stroller. The babys mother waits for the light to change and her hands close tighter on the strollers handle as she sees the man approach. With these words, we find the author conveying a sense of fear through revealing her actions. Whereas the child also instinctively shows his fear by his action, The baby, weary of the unwavering stare, pulls its blanket over its head. The author shows that a child has no inhibitions and is not afraid to show his fear, whereas the mother masks this fear through compassion. His eyes fix on the baby She finds what shes looking for and passes a folded dollar over her childs head to the man who stand and stares. Yet we find that the man is unaware to the nature of this reaction. His hands continue at his sides. He does not know his part. He does not know that the acceptance of the gift and gratitude are what makes this transaction complete. Therefore she continues on her way, Bearing the dollar like a cross. When people find someone bearing a cross generally, or making reference to God, its a sign of desperation or some form of protection. Thus it can be implied that the woman bears the dollar as a manner to protect herself. Now the man has not take that dollar; it could be said that this dollar symbolizes the idea of falsity that generally one may bear the cross, but may not believe in it; just as she may give money, but it is not compassionate. Another example that Ascher offers to dissect the fear of people is a man walking into a coffee shop. The owner of the shop, a moody French woman, emerges from the kitchen with steaming coffee in a Styroloam cup, and a small paper bag of of what? The man grabs his things and is off. The owner of the coffee shop is described as moody that bringing the question of kindness to light. The reason that owner does this is she is afraid of the homeless. As he stands, the scent of stale cigarettes and urine fills the small, overheated room. The man makes the atmosphere of the cafe become badly as he walking inside. She thinks he may ruin her stores image or may scare customers away, and its not good for her business. In my opinion, Aschers describing of these men causes a strong influence on me. The homeless man originally walks in silently. If he barges into the cafe and demands or asks for food, I will think of him as rude and lazy, and the owner kicks him out will be accepted. And Ascher d oes the same to the bagger. If the bagger is white, race will not be an issue. It will be clearer that the woman offer money in pity rather than fear. Also, if the man dashes for the money, I will not receive the image that he is kind and gentle, but that he is aggressive and can cause harm. Ascher describes these men as

A Perspective of the Modern World

â€Å"What comes to mind when you hear the phrase, the modern universe? † My encephalon rapidly leapt to that of a functioning economic system. An economic system that leads to the formation of more sophisticated Torahs in which society starts to develop and map about. That made sense to me at the clip, but now when I read that back in print I wonder what the heck I was even believing about. My ideas were centered on the constitution of the U.S. settlements and get downing a new society. I was non even needfully believing about post-revolution U.S. , but instead the beginnings of a new state that was puting the tone for the universe that we know today. It made sense to me that the â€Å"modern world† would necessitate holding the concept of the universe that presently exists, even if it was merely in its babyhood phases. Diging in to that thought though led me to the realisation that the U.S. was far from the first economic system in the universe. In fact, economic system day of the months back good in to the early antediluvian times. I slightly seem to remember larning about early economic system when being taught about Mesopotamia in my secondary instruction old ages. So possibly holding all that exists in the current universe is non necessary for the â€Å"modern† , but instead merely holding that avenue for its growing. If a working economic system was non the driving force of the modern universe, what was? Through the hebdomads of the category we had the chance to discourse at least eight different countries that saw important alteration from about the mid 15th century until the late 20th century. And while there will ever be many lending factors to the development of civilization and society over clip, our modern universe seemed to be launched chiefly from one major influence†¦a alteration in position. Perspective is what allowed the modern universe to get down to develop and would finally take us to what we have today. The Renaissance motion in Italy helped catapult a wholly new mentality of that which was standard in antediluvian and mediaeval times. It was a period in clip where a new position began to originate. The displacement from a God-centered point of view to a man-centered 1 developed a whole new originative manner of nearing political, societal, economic and cultural countries, and brought approximately great alteration in each of them. It marked a gradual displacement from a agriculture focussed society to an urban one, where metropoliss assumed a greater importance than in the past because of trade. It was besides a clip when originative thought and new engineering Lashkar-e-Taiba people comprehend and describe the universe more accurately. Science, doctrine, faith, art, and history combined to make a humanist attack to understanding the universe. Switching off from a society dominated by God-focused thought allowed creative persons and scientists likewise to get down progressing some reasonably extremist constructs. In ancient times the justification for anything that seemed unaccountable was based on a intent that the Gods had put away. The Gods brought the rain, pulled the Sun across the sky, changed the seasons, etc. When the Renaissance brought about a displacement in the manner we thought and saw things, there started to be a more scientific attack in the logical thinking behind the inquiries that were raised. Columbus challenged that the universe was round as opposed to level. Copernicus, pant, stated that the Sun is more likely to be the centre of our solar system and non the Earth. It was forward minds like these gentleman that brought about a alteration in society that would get down taking to a patterned advance of alteration instead than a stale and dead being that had been most outstanding in the clip period merely before the outgrowth of the Renaissance. A displacement in the manner society thought would be the accelerator for transmutation of the universe. Critically of import to this displacement in thought was the innovation of Gutenberg’s publishing imperativeness with movable type, which aided the spread of the Renaissance. Prior to holding the printed word, humanity relied on unwritten conveyance of cognition. Perpetrating information to memory was critical to successful life. The passage to books may hold damned memory as was one time known, but it besides provided chances to a turning displacement in idea to the multitudes. Printed books became more readily available and people learned to read and derive entree to a wide scope of cognition. As printing imperativenesss were established in Italy and other parts of Europe, printed books exposed educated Europeans to new thoughts and new topographic points. The add-on of printed plants, made available to the multitudes, added a more finite being to the constructs being fed to the populace. Opinions and ideas on social things were now being published for anyone with the ability to read to devour. Changing positions had a new friend that would assist present them to more people across the Earth, motivating quicker and more efficient transmutation. The general populace now had entree to the ideas of people like Martin Luther thanks in big portion to the printing imperativeness. This sort of handiness to positions such as Luther’s led to legion persons oppugning the current being of established establishments such as faith and authorities. In many ways the printed word helped launch positions to people that may hold been less prone to hearing those same constructs by word of oral cavity. These ideas were now able to be readily accessed by many, fostering an development of thought and construct that would alter the class of social development. Monarchial foundations would get down to be questioned as displacements in position led manner to an epoch of enlightenment. Past traditions and undisputed religion would be challenged by philosophers like Bacon, Locke, and Voltaire. Debating thoughts about authorities and single rights finally led to dispute of traditional regulation. Ultimately a path was paved for rebellion, most notably with the American and Gallic revolutions. Timess were switching from authorities of a supreme swayer to that of a way for single privileges. It makes perfect sense that when freedom comes from that which has kept us down, it is clip to get down to spread out and come on in efficiency. Emancipating ourselves from old traditions allows us to travel frontward and to boom more creatively. This is what the industrial revolution was to me. It was a clip following the separation of traditional authorities in which we could now develop ourselves and challenge ourselves in engineerings. Science and engineering progressed at such a rapid gait and new inventions were doing growing non merely feasible but at hand. Steam engines led to go and efficiency in machinery. Advanced fabrication procedures were made available because of growing in machining tools. It is a spot phantasmagoric to believe of the monumental displacements in industry from the late 18th century to mid 20th century. However, when you start to believe of how displacements in position and ways of idea can impact a civilization so rapidly, the concatenation reaction of development seems a small less incredible. It is still astonishing, but credible. Probably my favourite epoch that we had the chance to reflect upon and discuss was that in response to the industrial revolution, the romantic period. Puting accent on emotions and promoting art, literature, and music to new degrees was the halfway phase of this epoch. Switching from modern worlds, the romantic age stressed utilizing imaginativeness to visualise an flight. Poets like Keats, Shelley, and Lord Byron provided a more facile usage of linguistic communication that brought about power and beauty to the mundane. Romantic art centres more on the unmanageable, unpredictable nature as opposed to the controlled order seen in the enlightenment period. Romanticism was and still is all about experiencing no affair what the topic. There is no uncertainty that the promotions we have been able to analyze dating back to the Renaissance have come about quick, comparatively talking. The fact that we have seen geographic expeditions to new lands, freedoms won over oppressors, people able to wing, atomic arms created all in a small over five hundred old ages is mind blowing to state the least. To believe that merely about five centuries ago our universe was still perceived to be the centre of the existence and a level land. No uncertainty about it that a displacement in position was required to convey about a concatenation reaction of alteration. Challenging old thoughts and puting out to turn out new 1s is no original construct. The cardinal difference that enabled the point of view displacements in the Renaissance period to alter the class of our universe was the ability to acquire those new ideas in to the custodies of the multitudes. I wouldn’t needfully travel so far as to state that Gutenberg singlehandedly altered our class by his innovation. But he surely played a major portion in acquiring that class apparatus so that the driving force of disputing idea and position had a topographic point to travel. Once the class of the printed word was set, original positions were now able to travel frontward and convey about inquiries that institute planetary alteration. It about seems that now we have entered in to a period where we have become complacent with where we are. At least from a engineering point of view. Possibly there isn’t much more to contrive or alter. Possibly. I tend to believe that’s far from the truth nevertheless, and hopefully there’s a whole batch more philosophers on the skyline that will go on disputing and forcing us to the following epoch. It’s a good thing to acquire a alteration in position from clip to clip. A Perspective of the Modern World â€Å"What comes to mind when you hear the phrase, the modern universe? † My encephalon rapidly leapt to that of a functioning economic system. An economic system that leads to the formation of more sophisticated Torahs in which society starts to develop and map about. That made sense to me at the clip, but now when I read that back in print I wonder what the heck I was even believing about. My ideas were centered on the constitution of the U.S. settlements and get downing a new society. I was non even needfully believing about post-revolution U.S. , but instead the beginnings of a new state that was puting the tone for the universe that we know today. It made sense to me that the â€Å"modern world† would necessitate holding the concept of the universe that presently exists, even if it was merely in its babyhood phases. Diging in to that thought though led me to the realisation that the U.S. was far from the first economic system in the universe. In fact, economic system day of the months back good in to the early antediluvian times. I slightly seem to remember larning about early economic system when being taught about Mesopotamia in my secondary instruction old ages. So possibly holding all that exists in the current universe is non necessary for the â€Å"modern† , but instead merely holding that avenue for its growing. If a working economic system was non the driving force of the modern universe, what was? Through the hebdomads of the category we had the chance to discourse at least eight different countries that saw important alteration from about the mid 15th century until the late 20th century. And while there will ever be many lending factors to the development of civilization and society over clip, our modern universe seemed to be launched chiefly from one major influence†¦a alteration in position. Perspective is what allowed the modern universe to get down to develop and would finally take us to what we have today. The Renaissance motion in Italy helped catapult a wholly new mentality of that which was standard in antediluvian and mediaeval times. It was a period in clip where a new position began to originate. The displacement from a God-centered point of view to a man-centered 1 developed a whole new originative manner of nearing political, societal, economic and cultural countries, and brought approximately great alteration in each of them. It marked a gradual displacement from a agriculture focussed society to an urban one, where metropoliss assumed a greater importance than in the past because of trade. It was besides a clip when originative thought and new engineering Lashkar-e-Taiba people comprehend and describe the universe more accurately. Science, doctrine, faith, art, and history combined to make a humanist attack to understanding the universe. Switching off from a society dominated by God-focused thought allowed creative persons and scientists likewise to get down progressing some reasonably extremist constructs. In ancient times the justification for anything that seemed unaccountable was based on a intent that the Gods had put away. The Gods brought the rain, pulled the Sun across the sky, changed the seasons, etc. When the Renaissance brought about a displacement in the manner we thought and saw things, there started to be a more scientific attack in the logical thinking behind the inquiries that were raised. Columbus challenged that the universe was round as opposed to level. Copernicus, pant, stated that the Sun is more likely to be the centre of our solar system and non the Earth. It was forward minds like these gentleman that brought about a alteration in society that would get down taking to a patterned advance of alteration instead than a stale and dead being that had been most outstanding in the clip period merely before the outgrowth of the Renaissance. A displacement in the manner society thought would be the accelerator for transmutation of the universe. Critically of import to this displacement in thought was the innovation of Gutenberg’s publishing imperativeness with movable type, which aided the spread of the Renaissance. Prior to holding the printed word, humanity relied on unwritten conveyance of cognition. Perpetrating information to memory was critical to successful life. The passage to books may hold damned memory as was one time known, but it besides provided chances to a turning displacement in idea to the multitudes. Printed books became more readily available and people learned to read and derive entree to a wide scope of cognition. As printing imperativenesss were established in Italy and other parts of Europe, printed books exposed educated Europeans to new thoughts and new topographic points. The add-on of printed plants, made available to the multitudes, added a more finite being to the constructs being fed to the populace. Opinions and ideas on social things were now being published for anyone with the ability to read to devour. Changing positions had a new friend that would assist present them to more people across the Earth, motivating quicker and more efficient transmutation. The general populace now had entree to the ideas of people like Martin Luther thanks in big portion to the printing imperativeness. This sort of handiness to positions such as Luther’s led to legion persons oppugning the current being of established establishments such as faith and authorities. In many ways the printed word helped launch positions to people that may hold been less prone to hearing those same constructs by word of oral cavity. These ideas were now able to be readily accessed by many, fostering an development of thought and construct that would alter the class of social development. Monarchial foundations would get down to be questioned as displacements in position led manner to an epoch of enlightenment. Past traditions and undisputed religion would be challenged by philosophers like Bacon, Locke, and Voltaire. Debating thoughts about authorities and single rights finally led to dispute of traditional regulation. Ultimately a path was paved for rebellion, most notably with the American and Gallic revolutions. Timess were switching from authorities of a supreme swayer to that of a way for single privileges. It makes perfect sense that when freedom comes from that which has kept us down, it is clip to get down to spread out and come on in efficiency. Emancipating ourselves from old traditions allows us to travel frontward and to boom more creatively. This is what the industrial revolution was to me. It was a clip following the separation of traditional authorities in which we could now develop ourselves and challenge ourselves in engineerings. Science and engineering progressed at such a rapid gait and new inventions were doing growing non merely feasible but at hand. Steam engines led to go and efficiency in machinery. Advanced fabrication procedures were made available because of growing in machining tools. It is a spot phantasmagoric to believe of the monumental displacements in industry from the late 18th century to mid 20th century. However, when you start to believe of how displacements in position and ways of idea can impact a civilization so rapidly, the concatenation reaction of development seems a small less incredible. It is still astonishing, but credible. Probably my favourite epoch that we had the chance to reflect upon and discuss was that in response to the industrial revolution, the romantic period. Puting accent on emotions and promoting art, literature, and music to new degrees was the halfway phase of this epoch. Switching from modern worlds, the romantic age stressed utilizing imaginativeness to visualise an flight. Poets like Keats, Shelley, and Lord Byron provided a more facile usage of linguistic communication that brought about power and beauty to the mundane. Romantic art centres more on the unmanageable, unpredictable nature as opposed to the controlled order seen in the enlightenment period. Romanticism was and still is all about experiencing no affair what the topic. There is no uncertainty that the promotions we have been able to analyze dating back to the Renaissance have come about quick, comparatively talking. The fact that we have seen geographic expeditions to new lands, freedoms won over oppressors, people able to wing, atomic arms created all in a small over five hundred old ages is mind blowing to state the least. To believe that merely about five centuries ago our universe was still perceived to be the centre of the existence and a level land. No uncertainty about it that a displacement in position was required to convey about a concatenation reaction of alteration. Challenging old thoughts and puting out to turn out new 1s is no original construct. The cardinal difference that enabled the point of view displacements in the Renaissance period to alter the class of our universe was the ability to acquire those new ideas in to the custodies of the multitudes. I wouldn’t needfully travel so far as to state that Gutenberg singlehandedly altered our class by his innovation. But he surely played a major portion in acquiring that class apparatus so that the driving force of disputing idea and position had a topographic point to travel. Once the class of the printed word was set, original positions were now able to travel frontward and convey about inquiries that institute planetary alteration. It about seems that now we have entered in to a period where we have become complacent with where we are. At least from a engineering point of view. Possibly there isn’t much more to contrive or alter. Possibly. I tend to believe that’s far from the truth nevertheless, and hopefully there’s a whole batch more philosophers on the skyline that will go on disputing and forcing us to the following epoch. It’s a good thing to acquire a alteration in position from clip to clip.

Summary Essay Example | Topics and Well Written Essays - 500 words - 125

Summary - Essay Example Besides, the article provides that the most significant thing in an economy is the expectations by consumers of the business conditions in the future. Moreover, the current forecasts in the economy are dependent on the transition of expectations by the customer (MacKuen). The variances do not have any impact on the prevailing economy. The article, therefore, states the statement that an electorate’s decision on the best candidate in a presidency election is dependent on their current future expectations. If the expectations tend to be positive, rewarding of the presidency occurs. Correspondingly, if the expectations are negative, punishment of the presidency occurs. According to the classical theory of democracy, a good election is dependent on the activeness of a voter. On the other hand, the article negates the point in that the average voter is incapable of meeting the traits as put forward by the theory. The article provides another avenue for arriving at a good election. The only trait to possess is a good election is to come of age is only to have the right interests that have the right justification. The fact will lead to correct voting (Redlawsk). The essay also explains that the estimation of the voter’s determination of making a correct choice is possible although in a reasonable manner. The article puts forward that with such kind of reasoning, the American society in two elections had a seventy-five percent correct vote for the available five candidates who were contesting for the presidency. As a consequence, the availability of a standard measure for correct voting can change the perspective of political science. According to the article, political science would result to the exploration of the factors that lead to the probability of a successful and correct voting. The article bases its argument on the initial survey data of elections that later on were the national studies of elections. The main argument is that the decision of voting

Implementation of Basel II in Europe Thesis Example | Topics and Well Written Essays - 1500 words

Implementation of Basel II in Europe - Thesis Example The basic aim of this approach is to ensure that the banks and financial institutions must maintain financial soundness and retain the consumer confidence in order to ensure the stability of the financial system and protect the interests of the deposit holders. With these perspectives in mind, Bank of International Settlement formed a Basel Committee on Banking Supervision in 1974 to provide a comprehensive forum for dealing with banking matters of such magnitude. The Basel Committee is made up of senior officials responsible for banking supervision or financial stability issues in central banks and other authorities in charge of the prudential supervision of banking businesses. Members of the Basel Committee come from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, the UK and the US. This essay will discuss the implementation process of Basel II in Europe besides discussing some of the challenges and aspects that may raise tensions while implementing the accord in Europe. However, before exploring the issue of the implementation of the BASEL II accord, we will be discussing some of the key issues and points raised by BASEL II in order to implement it in true spirit. Before discussing the BASEL II and its implementation in Europe, it is necessary that a view must be taken in order to provide a historical account of the process of BASEL II implementation in Europe and rest of the world. Bank of international Settlements was established in Basel, Switzerland in 1930 and is considered as the world’s oldest international financial institution. It remains the principal center of international central bank corporations around the world. The BIS was formed as a result of the treaty of Versailles which ended the First World War and BIS was basically established for repatriation

Summary of May the circle stay unbroken Essay Example | Topics and Well Written Essays - 500 words

Summary of May the circle stay unbroken - Essay Example iteness† is frequently portrayed in visual formats but never discussed as an actual component with relevant racial positioning within society (Chidester, 2008). Chidester also addresses how the â€Å"whiteness† has assumed a strong racial position that is able to preserve a critical role in present-day American racial political arenas because it remains an unspoken subject (2008). This summary will highlight the major aspects of Chidester’s arguments as presented within the article and factors that the author believes has or will disseminate the air of invisibility that has historically cloaked the concept of â€Å"whiteness† (2008). The article continues to point out the historical implications of this concept in that the invisibility of the concept also empowered it and carried an assumption of privilege that may not bear the scrutiny of a public outing (Chidester, 2008). It is postulated that visual conceptualization of the concept will help minimalize the political power structured around it, which may fixate it and diminish its overall power (Chidester, 2008). Chidester continues to argue that visual media tends to represent â€Å"whiteness† as a moniker of privilege and reinforces the concept’s claim to the right to uphold its core sense of â€Å"purity† against other races by limiting and regulating contacts with the â€Å"racialized Other† (2008, p.160). The role of Friends as an example of a consistent portrayal of â€Å"whiteness† despite the absence of any racial context is highlighted as an example of the absence of â€Å"whiteness† through rhetoric (Chideste r, 2008). The consortium of racially and socio-economically homogenous cohorts despite being set in one of the most racially diverse cities in the world is emphasized throughout the sitcom through reinforcement of the closed circle, which symbolizes the exclusivity or â€Å"whiteness† without ever mentioning the concept (Chidester, 2008). NBC’s partnering of Friends with Seinfeld in their

Hanjin Bankruptcy Case Study

Hanjin Bankruptcy Case Study Abstract Over the past five years, Hanjin Shipping Co Ltd has maintained its ranking among the top 10 shipping companies in the world making it in 8th position in 2015 (JOC 2016), however, on 31st of August 2016, Hanjin Shipping declared bankruptcy. It was clearly leading to bankruptcy as company was showing low profitability and Hanjin vainly attempted to increase liquidity but it was too late. It is also said that Hanjins breakdown was the largest and the most significant bankruptcy in the container transport industry (Paris and Nam 2016). 1. Introduction The purpose of this report is to examine and look at factors that led to the bankruptcy of Hanjin. This report is divided into two parts. In the first part the Business Report published by the company will be used to identify 4 factors which led to the Hajin Shipping collapse to give and analyse the image of liquidity and profitability. The second part will focus on cash budget went in 2014 and et sequitur. 2. Factors that resulted in Hanjin Shipping crash Four outputs were chosen from Hanjin Shipping Co Ltd financial results two from Balance Sheet and two from Profit and Loss account in order to explain the bankruptcy. Those outputs are Current Assets (comparing to the Current Liabilities), Borrowings, reduction of Profitability and Profit from Discontinued Operations. 2.1 Factors in Balance Sheet Liquidity, according to Subramanyam and Wild (2009), is companys capacity to rapidly convert the current assets into cash or to derive cash to cover its short-term obligations. The companys activity may be affected seriously if there is a lack of liquidity. Therefore, liquidity expresses the capacity of the company to comply with its short-term obligations, for instance, to meet expenses with sufficient cash inflows or to accumulate a security reserve for any incalculable situation such as payments growth. Consequently, liquidity may be defined as the factor that designates the ability of the company to transform assets into cash or to obtain cash to keep up with the short-term obligations. 2.1.1 Current Assets and Current Liabilities Current Assets are assets that are expected to be converted into cash, sold or consumed within short period of time, usually one year (Subramanyam and Wild 2009). Current assets generally include cash, trade receivable, inventories and prepaid expenses. Current Liabilities are obligations expected to be satisfied usually within one year (Subramanyam and Wild 2009). Current liabilities in balance sheet accounts ordinarily include trade payable, short-term bank borrowings, taxes and accrued expenses. First of all, the key point in the Balance Sheet (B/S) is the difference in size amongst Current Assets and Current Liabilities (960 billion and 4 036 billion of won respectively in 2015). It is also important to mention that Current Assets built up only 13% of Total Assets in 2015. Besides, the short-term Borrowings was the main output which drove the Current Liabilities so high (3 171 billion of won in 2015 what is 78,6% of Current Liabilities and 60 times more than Total Comprehensive Income that year). Furthermore, the distance in percentage between Current Assets and Current Liabilities was enlarging since 2013. In particular, Current Assets went down by 35% in 2015 since 2014 and by 47% since 2013, while Current Liabilities declined only by 18% in 2015 since 2014 and by 32% since 2013. This is the root cause of insolvency, as Current Assets were not sufficient to come over Current Liabilities. 2.1.2 Long-term Borrowings Non-current (or long-term) liabilities are obligations that come due in more than one year (or the operating cycle) and include borrowings, bonds and debentures (Subramanyam and Wild 2009). Long-term Borrowings are type of debt and financial obligations issued for the duration of several (3-5 or more) years (Matassa 2011). Any financial liabilities or bonds included in long-term loan are expected to be reimbursed in a longer than 12-month period. In the Hanjins report (2015), long-term Borrowings grew up by 20% in 2015 since 2014 what means that previous long-term loans were not sufficient in order to run adequately. Moreover, Borrowings were composing over 95% of total Non-Current Liabilities in 2015, and 45% of total borrowings during the same year what comparing to the previous year (2014) grew by 13%. The situation was aggravating due to lack of liquidity and consequently, the ability to repay the loans. Too much of Borrowings finally resulted in loss of confidence by banks who refused future debt services. 2.2 Factors in Profit and Loss account 2.2.1 Reduction of Gross Profit Reduction in profitability may be another cause which triggered a reject for further accrediting by banks or other investors causing erosion of equity what consequently ended with the actual collapse of Hanjin. In the Profit and Loss account (P/L), Sales went down by 9% in 2015 from 2014 comparing to Gross Profit which reduced by 14% in 2015 from 2014. This means that in the possible future, company could become less profitable (if the trend will continue) and go into losses again, as it was in 2013, where Gross Loss was accounted for 260 billion of won and Total Comprehensive Loss for 670 billion of won. Regarding to all listed outputs, it may be additionally supposed that the company was losing its paying capacity what may be another factor of bankruptcy. 2.2.2 Profit from Discontinued Operation What is more, looking at the P/L, the Profit from Discontinued Operations suggested the slippage (141 billion of won in 2014 and 0 in 2015) joined together with losses accumulated over the past years (2 251 billion of won in 2015) had ruined the companys equity. 2.3 Evaluation of the effect on the financial result All in all, it can be said that the Liquidity was low due to incapability of Current Assets to overcome Current Liabilities and continuous Long-Term Borrowings. Profitability was also hardly struggled because of reduced Gross Profit and sudden losses from Discontinued Operations. Combining all afore-mentioned factors and taking into consideration the amount of accumulated losses, the size of total remained Equity was smaller than share capital by 34% in 2015 (the situation, however, was better than in 2014 where the distance was accounted for 38% but unfortunately for Hanjin not enough to solve the issue). As a result, the outcome of stated factors became the rapid decline of Hanjins financial sustainability which consequently led to companys insolvency and crash. 3. Budgeting P/L account (Y0) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales revenues 52 55 59 65 55 53 57 59 64 67 70 74 Cost of sales -29 -31 -34 -36 -31 -29 -33 -34 -35 -36 -37 -39 Salaries -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 Electricity -3 -4 -5 -5 -2 -2 -2 -3 -3 -5 -6 -7 Depreciation -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 Other overheads -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 Total expenses -47 -50 -54 -56 -48 -46 -50 -52 -53 -56 -58 -61 Profit 5 5 5 9 7 7 7 7 11 11 12 13 Legend: From previous Year Reduced inventories Increased sales Electricity policy Payables policy 3.1 Cash Budget for Y0 (2014) Cash Budget (Y0) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Trade Receivables 65 52 55 59 65 55 53 57 59 64 67 70 Trade Payables -35 -29 -31 0 -34 -36 -28 -26 -30 -31 -35 -36 Salaries -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 Electricity -3 -4 -5 0 0 -6 0 0 -5 0 0 -15 Overheads -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 Total payments -51 -46 -49 -13 -47 -55 -41 -39 -48 -44 -48 -64 Cash Surplus 14 6 6 46 18 0 12 18 11 20 19 6 Opening Balance 50 64 70 76 122 140 140 152 170 181 201 220 Closing Balance 64 70 76 122 140 140 152 170 181 201 220 226 Legend: From previous Year Reduced inventories Increased sales Electricity policy Payables policy 3.2 P/L Forecast for Y+1 (2015) P/L forecast (Y+1) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales revenues 55 58 62 68 58 56 60 62 65 68 71 75 Cost of sales -29 -31 -34 -36 -28 -26 -30 -31 -35 -36 -37 -39 Salaries wages -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 Electricity -9 -6 -5 -15 Other overheads -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 Total expenses -42 -44 -56 -49 -41 -45 -43 -44 -53 -49 -50 -67 Profit 13 14 6 19 17 11 17 18 12 19 21 8 3.3 Cash Budget for Y+1 (2015) Cash Budget (Y+1) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Trade Receivables 74 55 58 62 68 58 56 60 62 65 68 71 Trade Payables -37 -39 -29 -31 -34 -36 -28 -26 -30 -31 -35 -36 Salaries wages -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 Overheads -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 Electricity 0 0 -9 0 0 -6 0 0 -5 0 0 -15 Total payments -50 -52 -51 -44 -47 -55 -41 -39 -48 -44 -48 -64 Cash Surplus 24 3 7 18 21 3 15 21 14 21 20 7 Opening balance 226 250 253 260 278 299 302 317 338 352 373 393 Closing Balance 250 253 260 278 299 302 317 338 352 373 393 400 3.4 Effects of Initiatives on profitability and liquidity There is more cash available for spending on other business opportunities such as: Pay off a loan; Take advantage of new opportunities; Adoption of new technologies; Increased efficiency on operations. Implication of new assumptions for Y+1 as well as consideration of the changes that were applied in the Y-0 eventually allowed achieving positive results for the company. First of all, when comparing cash budget Y-0 and Y+1 it becomes possible to see that due to the introduction of new proposals overall expenses within Y+1 were maintained relatively close to expenses within Y-0. Moreover, assumptions that were set for the Y+1 allowed further increasing the overall profitability of the company and achieving final amount for closed balance of 347. Furthermore, implications that were introduced in Y-0 and were present in Y+1, such as electricity costs policy and supplier policy, also made a significant impact in terms of boosting the overall performance of the business during the Y+1 period. All in all, initiatives that were proposed and incorporated proved to be efficient and had a significant impact on the companys performance. 4. Conclusion Taking everything into account, all the implementations that were made within Y-0 and Y+1 have proven to be successful in terms of allowing the company to expand its capital. As it can be seen from the calculations provided in the report the company experienced a steady growth of shares which can be used as a support to the previous statement. Finally, the decisions which were made regarding Braemer Shipping Ltd created a positive effect on the business simultaneously setting the ground for the companys future expansion. Reference List Hanjin Shipping (2015) Business Report Hunter L. (2017) Lecture, Available at: (Accessed: 10 March 2017) JOC (2016) Hanjin Shipping Bankruptcy, Available at: http://www.joc.com/special-topics/hanjin-shipping-bankruptcy (Accessed: 2 February 2017) Paris C. and Nam I.-S. (2016) Move by South Koreas Hanjin Shipping Roils Global Trade, Wall Street Journal, Available at: https://www.wsj.com/articles/troubled-hanjin-shipping-to-sell-healthy-assets-to-rival-1472611190 (Accessed: 2 February 2017) Subramanyam K. R. and Wild J. J. (2009) Financial Statement Analysis, 10th edition, McGraw-Hill/Irwin: New York Matassa F. (2011) Museum Collections Management: A Handbook, Facet Publishers