Corporate Finance of FXZ Samples for Students †MyAssignmenthelp.com

Question: Discuss about the Corporate Finance of FXZ Capital Structure. Answer: Introduction In relation to the financial calculation done, we hereby elaborate WACC in details and discuss the effect of FXZ capital structure and recommended changes in it. FXZ is a un-geared company with its capital structure highly dependent on equity share capital. It is an attempt to find out the efficiencies and deficiencies in the capital structure of the company. The capital structure basically comprises of four elements- Equity, Preference, Debt and Retained earnings. There can be various combinations of above depending upon the needs of the company. It may be different from company to company suiting to their needs and requirements. Calculation of Weighted Average Cost of capital In the given Company, the Weighted Average Cost shall be calculated for Equity and Debt. There are no preference shares in the company portfolio. The retained earnings are in negative i.e there are retained losses. Hence, we shall take the total equity mentioned in the Balance Sheet for calculation of the cost of equity. WACC: W(Ke) + W(Kd) (1-T) where W= Weight Ke Cost of equity Kd Cost of debt T Corporate Tax Rate To find out WACC, first we need to find its component : figures in `000 $ Total equity: 10,34,092 Total debt: 1,79,312 Total Finance Cost: 18,257 here Rf= 2.12% Beta: 0.77 Rm: 12.8% Cost of Equity= 2.12% + 0.77 (12.8% - 2.12%) = 10.34% Cost of Debt = Interest payment/ Interest bearing liabilities (debt) figures in `000 $ Interest Payment = 11,100 Interest Bearing Liabilities = 1,79,312 Cost of Debt = 11,100/ 1,79,312 (1-0.30) = 4.33% Weighted Average Cost of Capital (Amount in '000 $) Year 2016 Amount Proportion Cost of Weighted (%) Capital Cost Total Equity Capital 10,34,092 85.22 10.34 1,06,925.11 Debt 1,79,312 14.78 4.33 7,764.21 Total 12,13,404 100.00 1,14,689.32 figures in `000 $ WACC = Weighted Cost / Total of Equity and Debt = 1,14,689.32/ 12,13,404*100= 9.45 % The cost of Equity = Risk-Free Rate of Return + Beta * (Market Rate of Return - Risk-Free Rate of Return). Judgment on the WACC of the company (FXJ) The company is well placed in terms of its capital portfolio as it is not dependent upon outside debts. The company comprises of 85.22% of total capital as equity which suggests that the company is not liable to pay fixed interest and hence it helps them to retain their profits for any other purposes like capital investment, asset purchase or payment of other liabilities (Fairfax Media, 2016). The company pays a dividend as a return on investment to its shareholder which is $ 4,59,90,000 against a total equity of $ 1,03,40,92,000 which is 4.44 % which is quite low compared to the average cost of capital which is 9.45%. In this way, the company has played a very smart move by not indulging them in any fixed interest payments. The company has not issued any preference shares as well which also suggests that there is no requirement to pay any preference dividend to its shareholders (Bloomberg, 2016). The company has not either issued any debentures as well. So it has also allowed them f rom paying debentures interest. However, there are two reasons to worry for FXZ, which are briefly explained below: The amount of retained losses is huge and ever-increasing which suggests that the company has not been run properly by the management. There are retained losses of $ (37, 20,198,000) which is a dent on companys reputation (Fairfax Media, 2016). The same was the case in the year 2015 as well where retained earnings were in negative to an extent of $ (2, 72, 55,44,000). As the company has not included any outside debt in its capital structure, the company is sure to lose tax benefits on payment of committed interest on outside liabilities and debentures (Fairfax Media, 2016). Also, the financiers do not have any say in companys decision making, unlike equity shareholders which is one of the reasons that the companys management is always under the influence of equity shareholders which shows its adverse effect in companys decision making also (Henderson et. al, 2015). Computation of gearing ratios Gearing ratio refers to an analysis of the ratio of a company's long-term debt compared to its equity share capital. It is a comparison of total debt utilized in the company against the total capital of the company. It reflects the ratio of debt to total capital or total debt against total equity capital. A high gearing ratio reflects that the company is highly dependent on debt as its capital which also says that company shall be required to pay high-interest payments to its financiers (Brealey et al, 2014). On the other hand, A low gearing ratio reflects that company is using more of equity as its source of capital. Both the situations are different and have different effects on the company workings. We shall explain this by an example: Situation no. 1 Total Debt: 100 million $ Total Equity: 500 million $ Total Capital: 600 million $ Gearing Ratio: Debt/ Equity 100/ 500 m $ = 1:5 ratio or 0.2:1 In this situation, we see that company has 20% exposure in debts in its total capital which suggests that company has not entered into any high fixed intrest payments annually. Dividend payment is not necessary hence the dividend payment potion can be retained in the company for various decisions. Situation No. 2 Total Debt : 400 million $ Total Equity: 100 million $ Total Capital: 500 million $ Gearing Ratio: Debt/ Equity = 400/ 100 = 4:1 In this situation we see that the company is highly dependent upon debt as its capital sources, it is evident that company shall be required to pay off annual interest payment to its debt holders may be its bank, debenture holders or other borrowings (Brigs, 2013). The company shall not have the option to save or retain that part of payment. The company shall have the option to pay or not pay dividends to its shareholders. Findings with reference to Capital structure As shown above, the two situations show two different capital structure mixes. Both the situations have its advantages or disadvantages respectively. It is the company strategy or company vision to use the type of the funds it wants to utilize in the company that is dividend or interest (Davies Crawford, 2010). In our recommendation, the company in its earlier years of existence should depend on equity as its mode of capital because the company initially should not want to indulge in fixed payments. On the contrary, the established companies should use debts in its capital portfolio 9 Healy et. al, 2012). The reason behind is that the established companies do not want to share their company voting rights with issuing more equity share capital. The company strategy should decide whether it should use more of debt or equity in its capital structure. An optimal capital structure is one which has a best debt-to-equity ratio for a corporate house that maximizes its market capitalization. The optimal capital structure which offers a balance between debt-to-equity and minimizes the firm's cost of capital is considered as the best capital mix (Correia et. al, 2005). The company aim should be to reduce its total cost of capital i.e. cost of utilization of capital debt, preference shares, equity should be minimum. This shall ensure that the company shall be well placed in terms of optimum capital structure. FXZ is highly un-geared and equity capital oriented company meaning that it has low debt compared to equity share capital, this is not an optimal capital structure as this does not ensure the minimum cost of capital or maximized share value. Market share price is dependent upon company financial performance (Albrecht et. al, 2011). FXZ uses high equity as its source of capital. Its gearing ratio is saved by negative retained earnings which have further reduced shareholders funds. Hence gearing ratios of FXZ are not optimal. The year 2016 has not been good for FXZ because its financial position is not so rosy for its investors . There has been huge impairment and amortization cost in this year 2016 which has an effect on its profits and accumulated losses (Deegan, 2011). Recommendation We recommend changes in company capital structure due to the high dominance of equity capital because the company is able to please its shareholders with negative retained earnings and low dividend payout. The company should borrow some long-term funds with low-interest rates also and it should try to break even or try to reduce its losses (retained losses). The company should try to issue corporate bonds with late maturity or fewer interest rates or it may issue debentures to public to raise funds. Fundraising by the company shall reduce its burden on existing capital structure and shall fuse new energy in the company. The company should also try to explore more earning avenues. The company should various optimal capital structure to find out which suits them better for their company (Brealey et. al, 2016). The company should calculate the cost of capital at different capital mixtures. Conclusion The company FXZ is in cash crunch and is running into losses, the management should seriously think about ways to pull back the company from this awful situation. The company is eating up its resources with every day like high retained losses shall finish shareholders funds and the company shall not have anything to pay back its shareholders. The company can approach its debtors and receivables to pay them fast and soon so that they may invest them and reduce their losses. The company should try to identify areas where cost cutting can be done to reduce its expenses. Budgeting is an excellent tool which can be used by the company to standardize its expenses and spend accordingly. These are some of the ways we would like to recommend to the company to improve company financial position. The company FXZ has to try to include some leverage effect to its financial statements at minimum interest rates. The company board has to bring a radical change in its capital structure by managing it s long-term capital commitments. The company should decrease its cost of capital by using an optimal capital mix. The basic aim of optimizing capital structure is to select that proportion of various forms of debts and equities mixes that maximizes the firms value while minimizing the average cost of capital. References Brealey, R. A., Myers, S. A., and Marcus, A. J. (2015). Fundamentals of Corporate Finance, 8th ed. Australia: McGraw-Hill Irwin. Correia, C, Mayall, P, O'Grady, B Pang, J. 2005. Corporate Financial Management, 2nd ed. Perth: Skystone Investments Pty Ltd. Henderson, S, Peirson, G, Herbohn, K, Howieson, B. (2015). Issues in financial accounting. Pearson Higher Education AU. Healy, P. M, Palepu, K. G. (2012). Business Analysis Valuation: Using Financial Statements. Cengage Learning. Albrecht, W, Stice, E Stice, J. (2011). Financial accounting. Mason, OH: Thomson/South-Western. Brealey, R, Myers, S. Allen, F. (2014). Principles of corporate finance. New York: McGraw-Hill/Irwin Brigs, A. (2013).Financial reporting analysis. Mason, Ohio: South-Western. Davies, T. Crawford, I. (2012). Financial accounting. Harlow, England: Pearson. Deegan, C. M., (2011). In Financial accounting theory. North Ryde, N.S.W: McGraw-Hill Fairfax Media. (2016). Fairfax media 2016 annual report accounts. Retrieved May 22, 2017 from https://www.fairfaxmedia.com.au/ArticleDocuments/193/FAIRFAX%20Annual%20Report%202016.pdf.aspx?Embed=Y Bloomberg. (2016). Australian rates and bonds. Retrieved May 22, 2017 from https://www.bloomberg.com/markets/rates-bonds/government-bonds/australia

Guanxi free essay sample

The Chinese Cases Liang-Hung Lin ABSTRACT. Being different from the Western concept of ‘‘relationship,’’ Chinese concept of ‘‘relationship,’’ that is, guanxi profoundly in? uences Chinese society in commercial activities, business ethics, and organizational behaviors. Moreover, ? rms can develop their networks of guanxi to gain competitive advantages. Highlighting the cultural and organizational antecedents of guanxi, namely Confucianism and organizational ethical climate, this study examines the in? ence of these two antecedents on guanxi and makes comparisons of guanxi, Confucianism and organizational ethical climate between Taiwan and Mainland China. The results show that Taiwan, where preserves more Confucian culture, tends to put much emphasis on guanxi than Mainland China, especially with respect to mianzi. Concerning ethical climate, Taiwan tends to have instrumental, and law and code ethical climate. KEY WORDS: guanxi, Confucianism, organizational ethical climate Introduction Chinese guanxi has been a popular issue in the ? ld of social science since 1980. Western managers and scholars also ? nd that even though guanxi in Chinese society and ‘‘relationship’’ in Western society seem to have similar literary meaning, they are actually different in expression and result (Xin and Pearce, 1996). In Chinese society, guanxi is one of the disciplines in life and has profound in? uence on commercial activities, business ethics, and organizational behaviors. It is thus regarded as the central notion of understanding Asian society and business behaviors (Boardman and Kato, 2003; Luo, 2002). In addition, it supports two or more than two organizations dealing with resource transactions and distribution, or sustains behaviors resulting from mutual contact and interaction. Yeung and Tung (1996) pointed out that guanxi refers to a general form of social networks and has the implication of ‘‘gate/pass’’ and ‘‘connection. ’’ In other words, a network of guanxi is established in the connection between two independent bodies, the purpose of which is to promote mobility of individual or social transactions between two sides. Moreover, both sides have to be driven by bene? ts and con? rm the continuance of guanxi when doing business with each other. Guanxi is emphasized by Chinese society, in which roles and bene? ts are subtly related to each other or even dif? cult to be separated. Analyzing the effect of guanxi on modern Chinese society, Yang (1994) regarded guanxi as a key factor in driving Chinese government to operate. Moreover, people usually use guanxi to control others and distort the laws. Yan (1996) then indicated that guanxi is established by the development and maintenance of network relationships to help one get through all kinds of dif? culties in life. Kipnis (1997) even precisely pointed out that the formation of guanxi in Chinese society involves complex social and affectionate networks within peers, families, or friends and these networks consist of three elements, namely mianzi, affect and reciprocal favor. Furthermore, guanxi is one of the major dynamic characteristics in Chinese society. It not merely refers to a very special relationship between two people, but also implies an endless exchange of favors (Alston, 1989). Thus, the existence of guanxi between people usually relies on three elements: (1) sharing identities and status with others in a group or mutually having an association with the same person; (2) actual connections and frequent contact between people; and (3) getting close to someone by direct interpersonal interaction. In addition, guanxi is considered as interpersonal networks of reciprocal bonds. Liang-Hung Lin According to the above descriptions, it can be seen that interpersonal relationships in China are very abstract and are established by cultural-rooted criteria (Tsui and Farh, 1997). Xin and Pearce (1996) considered that guanxi is a general and important element of culture and society in Eastern society. At the same time, it is also the key force which promotes relationships between people or organizations. To those Chinese ? rms, guanxi is closely tied to life. The development of guanxi can be regarded as a competitive advantage to face competitions and overcome resource shortage. It thus becomes the vital source of social capital (Lin, 2007) and commercial activities in Chinese society. Concerning organizational behavior, guanxi represents informal relationships and networks which are established through favor exchanges. It roots in Chinese traditions and predominates the commercial activities in China and East Asia (Lin and Ho, 2009; Lovett et al. , 1999). Following the previous studies of guanxi, this study contributes to organizational ethical literature by answering one question: Where does guanxi come from? In order to properly elucidate guanxi in Chinese culture, this empirical study aims at highlighting the cultural and organizational antecedents of guanxi, that is, Confucianism and organizational ethical climate. The in? uences of Confucianism and organizational ethical climate on guanxi will be hypothesized and examined in the following sections. (Alexander and Rudd, 1981). While ‘‘face’’ represents an identity at individual level, mianzi in Eastern society represents a positive social value that one successfully earns from others in speci? c social interaction. It is also the self-image which is praised by society (Goffman, 1972). In their Politeness Theory, Brown and Levinson (1978) brought up two kinds of face, namely negative and positive face. While positive face refers to the need of one’s value to be accepted or praised by related people, negative face refers to the public image which represents independence and self-suf? ciency. In order to enhance and extend feasible guanxi, it is indicated that mianzi must be maintained to a certain degree (Yeung and Tung, 1996). Park and Luo (2001) suggested that mianzi represents the social trend and imagined individual status which are in? enced by one’s social status and actual wealth. As long as strong mianzi is earned, one can take control of dynamics in social networks. In China, mianzi denotes one’s public image which is built by certain social roles and it deeply in? uences Chinese social life. Thus, ‘‘saving mianzi’’ closely relates to self-e steem. In Chinese society, if one loses mianzi, one cannot have a foothold or even live in society. In sum, mianzi is the key element of Chinese relationship dynamics and indicates a social status or reputation that one earns from his/her achievements in society. The exercise of mianzi can be viewed as a kind of impression management, being deliberately manipulated by an individual in order to create a particular impression on others. In other words, mianzi involves one’s status in Chinese social networks, the possibility to be accepted by society, as well as the special power one can enjoy. Thus, mianzi is important to one individual. Affect Yang (1994) considered affect as a type of social resource, which has the function of leverage in interpersonal transactions. This social resource includes not only the speci? aspect of money or commercial goods, but also the abstract aspect of emotion, showing one’s informal social responsibility toward partners. In the exchange of resources, ‘‘judgment of guanxi’’ is the major concern by Chinese (Hwang, 1987). Moreover, when one develops a network of guanxi in which affect is involved, one is at the same time constrained by this Literature review Characteristics of guanxi Based on Kipnis (1997), guanxi involves mianzi, affect and reciprocal favor, which are the characteristics of guanxi. Mianzi Not merely the product in Asian collective culture, mianzi is actually the concept generally existing in all cultures (Pharr, 1989). However, the extent to which mianzi is concerned, its external performance and its criteria for judgment between Western and Eastern society are very different (Brown and Levinson, 1978; Ho, 1976). In Western society, the concept of mianzi is close to that of ‘‘face,’’ referring to one person’s identity in a particular situation Cultural and Organizational Antecedents of Guanxi network. In Chinese society where guanxi and the exchange of guanxi are emphasized, affect is usually used by Chinese to maintain their guanxi with others (Hwang, 1987) and the criteria of guanxi exchange relies on the situation whether it abides by affect. Once one receives affect from others, even if it is paid back afterward, the complex of affect being given is still there. This concept of affect thus makes guanxi be seen as a long-term investment by Chinese society. Reciprocal favor Reciprocity in Western networks means that two sides must take the same value and reciprocate equally to each other. All the exchanges are in pursuit of the balance between costs and bene? ts (Powell and Goulet, 1996). The study by Park and Luo (2001) showed that in the principle of reciprocity, guanxi should be reciprocal. However, in Chinese society, it is reciprocal in the maintenance of guanxi, but not always in bene? ts (Jacobs, 1979). Hwang (1987) indicated that inter-reciprocity and inter-dependency of the corresponding roles make interpersonal guanxi a symbiotic system, in which guanxi of both sides is complementary instead of being equal. After adding affect and guanxi to reciprocal favor, originally simple behaviors of exchange has a subtle change. Moreover, the major concept of reciprocal favor lies in the consistency in quality, but not in quantity. Concerning the time of reciprocity, while reciprocal favor in Western society is considered to be immediate, short-term, or discharged within a certain period of time (Tsui and Farh, 1997), that in Chinese society involves ‘‘be my teacher for a day, be my teacher for a lifetime,’’ that is, the concept of lifetime reciprocity, or even reciprocity in afterlife, if one thinks favors are too great to be discharged in this life. Tsui and Farh (1997) considered that behaviors of reciprocal favor derive from affect, which implies an ideal network of guanxi. If one ignores the commitment of reciprocal favor, one will feel losing mianzi or even jeopardize his/her social networks. relations at that time, he thus devoted himself to developing Confucian doctrine, the ultimate concern of which was to establish order in society. In the doctrine, wu-lun not only established social rules, values, and hierarchical power structure, but also formed factional networks, all of which have profound in? uence on follow-up Chinese culture. Therefore, connections between people are usually emphasized above formal requirements and legal regulations (Luo, 1997). Confucians claim that when socializing with others, one should judge his/her role relation with others by two cognitive dimensions, namely closeness and pecking order. While closeness refers to having a near or distant relation, pecking order refers to having an inferior or superior status between individuals. After the judgment of these two dimensions, paying respect to those whom they honored is the sense of benevolence and serving those who are dear to them is the sense of righteousness. As for the sense of decorum, it is the differential reaction which is made based on the relative degrees of natural affection and the relative grades of honor we have toward others. When this structure is carried out upon one speci? c role, Confucians then further make different requirements in accordance with different role in guanxi. Therefore, ‘‘between father and son, there should be affection; between sovereign and minister, righteousness; between husband and wife, attention to their separate functions; between old and young, a proper order; and between riends, ? delity’’ (Mencius/Teng Wen Gong I), in which guanxi between father and son, sovereign and minister, husband and wife, old and young, and friends, are called wu-lun in Confucianism and each guanxi should be established on the basis of benevolence. It should be also noticed that except for guanxi between friends, the other four contain a vertical differential relation between inferior and superio r. Being in? uenced by the tradition of Confucian culture, guanxi in a family can be considered as the most important one in Chinese society. Hwang (1987) even argued that familism is one of the most important characteristics in Chinese culture and also the basis of Chinese organizations. Park and Luo (2001) used the metaphor of spider web to describe Chinese social networks, where self is located in the center of networks and put others in a near or distant position of irregularly concentric circles, depending on the intimacy in between. On Confucianism and guanxi Confucius was born in the Eastern Zhou Dynasty (551–479 BC). Witnessing the con? icts of human Liang-Hung Lin the one hand, the concept of ‘‘locating self in the center’’ shows the characteristic of autism. On the other hand, others who are put in different circles will be treated differently. In his study of principles, philosophy, and meaning of guanxi, Luo (1997) suggested that guanxi is one of the major dynamics in Chinese society, being involved in or surrounded by general commercial activities. Moreover, its networks are the life blood of social macroeconomics and individual commercial activities. Thus, guanxi is generally regarded as one of the decisive factors in the business performance. Yeung and Tung (1996) studied the relation between guanxi and ? nancial performance of 19 ? rms in Mainland China and the results showed that if one ? rm wants to have a longterm success in Chinese society, guanxi plays an important role. Also, they indicated that guanxi is established in the connection between two independent bodies, the purpose of which is to promote the ? ow of individuals or social transactions. Both sides have to be driven by bene? ts, con? ming the continuance of guanxi in the process of transactions. Lovett et al. (1999) proposed that when technology is stable but environment changes rapidly, commercial transactions often depend on one’s guanxi instead of formal contracts. Chinese sense of guanxi integrates things both possible and impossible to be calculated and uses the weighted concept to depict the qualitative change process of integration. Therefore, guan xi can be seen as affections weighting bene? ts, the qualitative change process through combination of speci? c affections and general bene? s, producing a fermentative connection effect between people. The formation of this ‘‘affections weighting bene? ts’’ relies on the weighted effect. The term ‘‘weighted’’ in the formation of guanxi here refers to a similar to qualitative changing and fermentative reaction in chemistry. In Confucianism, guanxi is a kind of cultural logic, that is, considering guanxi as the performance of Confucian cultural essence and seeing this logic as the cultural essence of Chinese society in Greater China, including Mainland China, Taiwan, Hong Kong, Singapore, and so on (Cheung and Chan, 2005). Confucianism is also described as long-term orientation which refers to ‘‘the acceptance of the legitimacy of hierarchy and the valuing of perseverance and thrift, all without undue emphasis on tradition and social obligations which could impede business initiative’’ (Franke et al. , 1991, p. 167). High Confucian dynamism characterizes individuals who tend to put more emphasis on future oriented Confucian teachings (Yeh and Lawrence, 1995). In the aspect of short-term orientation, guanxi can immediately provide an individual access to the means of private pro? s and substitute a formal organization in order to support and reduce external threats and uncertainty. Nevertheless, in his application of resource-based theory to the analysis of guanxi network, Tsang (1998) argued that if guanxi network does not possess its own value, scarcity, and the characteristic of not being able to be completely imitated, it basically cannot provide any competitive advantages to enterprises. Moreover, these characteristics require correct detection and long-term cultivation of guanxi. Thus, the maintenance of guanxi needs long-term efforts of affection, trust, commitment and mutual bene? t investment. The idea of ‘‘long-term orientation’’ referring to longterm maintenance and cultivation of guanxi network is also supported by Tsang (1998). In order to strengthen guanxi, long-term investment of time in building affections by both sides is required. Yeung and Tung (1996) also mentioned that long-term interaction of bene? ts can establish dependency between two independent bodies within guanxi. Based on the above discussions, this study argues that in order to strengthen the value of guanxi and continue its development, the establishment of guanxi depends on not merely individually active efforts, but also long-term investment in maintaining mutual affections, trust, commitment, and reciprocal behaviors. In this way, guanxi can thus become an ef? cient operating mechanism, using the information transmitted by networks of guanxi to achieve effective economic purposes. Thus, this study proposes: H1: Confucianism positively in? uences guanxi. Organizational ethical climate and guanxi Chinese ethics emphasize relativity and business ethics are established in the general principles of Chinese ethics. Tsui and Farh (1997) were of the opinion that guanxi indicates the objectively Cultural and Organizational Antecedents of Guanxi common background or common experience between individuals. It also implies the differential treatment in interpersonal interaction. Concerning guanxi bases among members in a group, because they have different intensity and depth in interaction, guanxi bases and the centrality of interactive networks should have a positive relation. Different guanxi bases here refer to different guanxi elements of affectivity, normality, and instrumentality. Moreover, responsibility, unequal status and resources, and the concept of favor and reciprocation are also different. In addition, in the studies concerning business ethics and organizational behaviors, scholars argued that business ethical climate can actually be built. Victor and Cullen (1988) were thus of the opinion that although there exists a major climate type in an organization, it is impossible to have only a single type. Instead, ethical climate types differ according to different industrial properties and transactions. Furthermore, they categorized organizational ethical climate into ? ve dimensions. The ? rst one is caring ethical climate, emphasizing care and kindness in the interactive process between ? rm and individuals. Whether a ? rm cares about the bene? ts of its employees is included in this dimension. In a ? rm with instrumental ethical climate, employees, on the one hand, tend to pursue their own bene? ts. On the other hand, they are expected to enhance ? rm’s bene? ts without worrying about any consequences. A ? rm with independence ethical climate respects and allows its employees to perform based on their moral standards. Moreover, it pays attention to employees’ ability of distinguishing right from wrong and their own ethical policy without being in? uenced by others inside and outside the organization. In other words, employees tend to put emphasis on and develop their own guanxi in this climate. The fourth dimension of ethical climate is law and code. A ? rm with this climate expects its employees to comply with the laws or the professional ethics above any other considerations. In other words, employees’ behaviors are guided by the laws. Finally, if a ? rm has rules ethical climate, the rules and operating procedures are norms which are emphasized. In ? rms with the last two ethical climates, employees tend to de-emphasize and weaken their guanxi. Sinclair (1993) thought that organizational ethical climate in ? rms is one of the most important factors which in? uence ethical behaviors of employees. Thus, if one can understand the relationships between business ethical climate and ethical behaviors, one will know how to manage them. Wimbush and Shepard (1994) also argued that employees’ behaviors will change if business ethical climate changes. In view of serious damages to ? rms and society from unethical behaviors, managers can prevent employees from performing unethically through changing business ethical climate in ? rms. Furthermore, the formation of business ethics can help organizations establish ethical norms, making employees not only understand correctly ethical behaviors and ethical issues, but also have common cognition in prevention of unethical behaviors. Based on the above arguments, this study proposes: H2: H2a: H2b: H2c: H2d: H2e: Organizational ethical climate in? uences guanxi. Caring ethical climate positively in? uences guanxi. Instrumental ethical climate positively in? uences guanxi. Independent ethical climate positively in? uences guanxi. Law and code ethical climate negatively in? uences guanxi. Rules ethical climate negatively in? uences guanxi. Method Sample and data analysis method This empirical study examines the in? uences of Confucianism and organizational ethical climate on guanxi. Data ere collected from questionnaires of individuals with at least 1 year work experience in Peking, Shanghai, Nanking, Sian (big cities in China), Kaohsiung, and Taipei (big cities in Taiwan) from August to December in 2009. At ? rst, 250 questionnaires were distributed to Taiwan and 250 to Mainland China. After eliminating 30 invalid questionnaires, this study yields a sample of 470 questionnaires with 94% response rate. 49% of the re spondents are male and 51% of them are female. As for individual ages, 38% of the respondents are under 25, 33% of them are in the ages ranged from 26 to Liang-Hung Lin 35, 19% of them are in the ages ranged from 36 to 45, and 10% of them are in the ages above 46. Concerning educational background, the majority of the respondents have a bachelor degree (38%), 24% a college degree, 30% a high school diploma or under, and 8% a master or doctorate degree. As for capital, the majority of the respondents are in private ? rms (46%), 20% are in state-run ? rms, 22% are in foreign ventures, and 12% are in joint ventures. Variable de? nition and measure Dependent variable The dependent variable in this study is guanxi. Its aspects are based on the de? nition by Hwang (1987), Kipnis (1997), and Lee and Dawes (2005), considering that Chinese guanxi refers to the interaction between people and involves mianzi, reciprocal favor and affect: (1) mianzi: referring to individual behaviors which conform to social expectations, or respect, dignity and public image which are earned by one’s achievements in society. (2) Reciprocal favor: members in a group help each other when needed and favors can be repaid by reciprocation. (3) Affect: associations between people rely on long-term continuity. Guanxi in this study is divided into three dimensions: mianzi (4 items, a = 0. 75), affect (2 items, a = 0. 78), and reciprocal favor (2 items, a = 0. 81). Question items of Guanxi Questionnaire (GQ) are designed with a 5-point Likert-type scale to know how employees care about mianzi (e. g. , the more respect we receive from others, the more mianzi we have); how employees enhance affect with business partners (e. g. , my business partners will sometimes give me gifts or souvenirs); how employees regard their business partners (e. g. I genuinely regard my business partners as good friends) (Lee and Dawes, 2005). Independent variables Independent variables, in this study, are Confucianism and organizational ethical climate. Based on two studies concerning cross-cultural valuing systems, namely Hofstede’s cultural dimensions (Hofstede, 1980) and the national Rokeach’s Value Survey (Ng et al. , 1982), Hofstede and Bond (1988) developed Chinese Values Survey (CVS) to examin e cultural values in 22 Asian and Western nations from a perspective of Chinese social values. In CVS, Confucianism as long-term orientation was found to boost the performance of national economics. This dimension, which represents a form of Confucian philosophy, comprises six 5-point Likert-type items, including ‘‘I am always careful not to do anything inappropriate,’’ ‘‘I never forget my goals even in the face of adversity,’’ ‘‘I avoid offending others,’’ and ‘‘I respect elders. ’’ This dimension has an a value of 0. 78. In measuring organizational ethical climate, this study uses a modi? ation of Ethical Climate Questionnaire (ECQ) (Victor and Cullen, 1988) to ask respondents to rate the importance of ? ve ethical climate dimensions, caring (7 items, a = 0. 77), law and code (4 items, a = 0. 81), rules (4 items, a = 0. 74), instrumental (7 items, a = 0. 75), and independence (4 items, a = 0. 75) on a 5-point Likert-type scale to measure individual perceptions of ethical t houghts. The caring ethical type includes high factor loading items such as ‘‘The good of all the individuals in the ? m should be the main priority’’ and ‘‘Efforts should be made to maximize the bene? t of others. ’’ The law and code type of ethics includes high factor loading items such as ‘‘Individuals should comply with the law and professional standards over and above other considerations’’ and ‘‘The law or ethical code of their profession should be the main consideration for working individuals. ’’ Rules type of ethical climate includes items such as ‘‘Individuals should follow ? rm rules and procedures’’ and ‘‘Everyone should follow the ? m rules and procedures. ’’ The instrumental type includes items such as ‘‘Individuals should do whatever is necessary to further ? rm interests, regardless of the consequences ’’ and ‘‘Individuals should protect their own interests above all else. ’’ The independence ethical type includes items such as ‘‘Firm employees should decide for themselves what is right and wrong’’ and ‘‘Firm employees should follow their own personal and moral beliefs. ’’ Control variables Control variables include three parts. Firstly, demographic variables: gender (male, female), age Cultural and Organizational Antecedents of Guanxi (under 25, 26–35, 36–45, and above 46 years old), educational background (senior high school or under, college, university, and master or doctor program), previously accumulated work seniority (1–5, 6–10, 11–15, 16–20, and above 20 years). Secondly, capital variables: state-run ? rms, private ? rms, joint ventures, and foreign ventures. Finally, environment variables: residence in Taiwan or in Mainland China. Reliability and validity of variables The questionnaire of this study, guanxi Questionnaire (GQ), is designed based on Lee and Dawes (2005), the scale of which was revised by Hwang (1987) and Kipnis (1997), Confucianism is based on national culture scale by Hofstede and Bond (1988) and Franke et al. (1991), and ECQ is designed based on Victor and Cullen (1988). After analyzing each dimension, items with factor points under 0. 6 are deleted, and the rest of the items are then named, respectively. As for guanxi, overall coef? cient is 0. 80, and Cronbach’s a in each dimension is all higher than 0. 75. As for ECQ, overall Cronbach’s a is 0. 79, and Cronbach’s a in each dimension is all higher than 0. 74. In sum, the variable dimensions in this study are in the range of effective reliability. Thus, the questionnaires of this study are revised from previous questionnaires with similar topic and based on literature, reasoning and theoretical background of which has reached certain degree of stability and internal consistence. To conclude, the questionnaires of this study are not only comprised of theory base, but also content validity. Analysis and result Table I shows descriptive statistics for variables.

Sat Essay Sand Samples - Whats The Use?

Sat Essay Sand Samples - What's The Use?Do you think that you can do a better essay on SAT than what you could previously? Well, you can be very lucky because we have now some sat essay sand samples to help you. This is in case you are new to SAT and you don't know the questions and the corresponding answers for it. If so, it will be very helpful for you since you can follow the steps of doing your essays from scratch.There are many sat essay sand samples available today and you have to pick one that suits your style of writing. Your topic could be anything you like; it could be 'favorite TV shows'favorite books', etc. Just try to keep it simple, but creative if you want to impress the judges.When writing an essay, first you should find out the content of the paper by searching it online or even in your favorite library. After that, pick up a word processor or a special edition of Microsoft Word to go through the works. Then you need to copy and paste the essay into the word processo r. You will need to make sure that you do not cut off any part of the essay.Next, choose the right format for your essay. Most of the publishers will give you some format of essay and the form might be word processor or a resume. In case you do not have the money to buy them, just pick some sample essay topics that you would like to go through to find out the format that suits you best.Once you have completed your essay, take a look at the document with your word processor or with the Microsoft Word and paste it in your space. Before you start writing, keep the tips of the structure in mind and find out the best way to break down the essay. And when you have finished with your essay, you can check your composition and see if you followed the instructions correctly.In case you need the assistance of someone, there are several SAT essay sand samples available online. You can get these samples from the internet sites or you can search on the phone book or ask around your friends.So, if you are ready to do a better SAT, grab a copy of sat essay samples and do your essay on your own. Keep a look at the sample essays and try to get a feel for it. Once you have a rough idea of how the content is written, you can start writing in full.

Urbanization Essays - Urban Decay, Segregation, Ethnic Enclave

Urbanization The urban metropolis and its function in society cannot be understood without studying its composition as a city of immigrants, their newcomer families and friends and the ties that bind them. By overlooking the ethnic culture and networks of the city's immigrants, the study of the urban centre is at best a futile effort. Ethnic tendencies and particularly ethnic residential segregation, are areas of examination than cannot be neglected if we are to understand the individual and group experiences that ultimately influence urban growth. It is therefore important to carefully explore these areas so that insight into the underpinnings of the urban metropolis is achieved. Looking at Canadian urban centres from 1850-1920, specifically the city of Toronto, I will examine the issue of ethnic residential segregation and its significance to the urban centre. I will attempt to prove that this phenomenon is a consequence of ethnic concentration in particular industries resulting from ethnic networks and socio-economic inequalities present within society. Furthermore, the existence of these vibrant yet segregated ethnic communities does not imply that assimilation is failing to occur. Consequently, standard assimilation frameworks, which assume that proximity to the majority group increases with socio-economic gains, must be re-evaluated. Urban and historical geographers have become increasingly interested in studying residential segregation through the context of changes in the industrial workplace (Scott, 1986). A number of industries like clothing, textile, iron and steel have employed large proportions of immigrant workers (Leiberson, 1933). Toronto is no exception. Early immigrant settlers came to North America in search of a 'better' life and increased economic opportunities (Lindstrom-Best, 1979) and Toronto's economic ambience appealed to them. 1850's Toronto saw increased prosperity with expanding enterprises, jobs and especially railway building. By the 1860's, when this first rail construction boom had faded, the city blossomed into a regionally dominant railway centre with track access throughout the province, into adjoining Montreal, Detroit and New York. More importantly though, steam and iron transport expansion unravelled the way for industrialization (Harney, 1985). Toronto's harbourfront thrived with rail traffic, entailing machine and engine works, coal-yards, moulding and forging plants and steam-driven factories (Globe, 1866). The new gas works, the Grand Trunk Railway workshops, the Toronto Rolling Mills, and the Gooderham and Worts distillery exemplified this flourishing industrialization. Moreover, other processing operations, such as wood or hardware manufactories, tanneries and meat-packing houses accompanied industrial growth. All in all, by the 1860's, working opportunities in the city could readily urge on its settlement, which consequently began to accelerate rapidly (Harney, 1985). In light of these increased working opportunities distinct Torontonian neighbourhoods developed. St. John's Ward bounded by Henderson, Yonge, Front and University and the Italian neighbourhoods bounded by Henderson, Manning, Dundas and Ossington are just two of the distinct communities that resulted. By the 1900's, the 'Ward' as it was popularly know, primarily consisted of East Europeans of Jewish descent. They initially settled in the Ward because they had little choice. Upon their arrival, they were in immediate need of cheap accommodation near steady employment (Harney, 1985). St. John's Ward, adjacent to the commercial centre of the city, provided them this opportunity. They had relatively few skills and no credit although their affinity for the garment industry proved valuable (Speisman, 1979). Suffice it is to say, the Ward was in close proximity to this industry. During the early twentieth century, the notable clothing firms, the Lowndes Co., Johnson Brothers and others were located on Front Street, Wellington Street, Church and Bay. By 1910, the T. Eaton company had erected an enormous manufacturing firm bounded by Bay, Albert, Louisa and James. This company would eventually grow to be the largest sole employer of Jews in the Ward (Harney, 1985). Factory employees elected to reside near their places of employment (Harney, 1985). Working long hours, they wished to minimize travelling time thus choosing to live close to the companies that employed them. In addition, as proximity to major clothing firms increased, so too did employment opportunities. The Ward, similar to many other areas throughout North America, thus evolved into an immigrant haven adjacent to the central business district. Despite the fact that not all Jews made their livelihoods in clothing factories, it was the factories' presence and proximity to affordable housing that attracted Jewish immigrants to the area (Rischin, 1964) and created a vibrant ethnic neighbourhood. Similar ethnic neighbourhood appeared as divergent immigrant occupational skills emerged. The first Finnish inhabitant of Toronto, a tailor named James Lindala, ventured to the city upon hearing of the high demand for skilled tailors (Lindstrom-Best, 1979). Settling in the south-central part of Toronto, near the railroad and tailoring

Corazon Aquino, First Female Philippines President

Corazon Aquino, First Female Philippines President Corazon Aquino (January 25, 1933–August 1, 2009) was the first female president of the Philippines, serving from 1986–1992. She was the wife of Filipino opposition leader Benigno Ninoy Aquino and began her political career in 1983 after dictator Ferdinand Marcos had her husband assassinated. Fast Facts: Corazon Aquino Known For: Leader of People Power movement and the 11th president of the PhilippinesAlso Known As: Maria Corazon  Cory  Cojuangco AquinBorn: January 25, 1933 in Paniqui, Tarlac, PhilippinesParents: Jose Chichioco Cojuangco and Demetria Metring SumulongDied: August 1, 2009 in Makati,  Metro Manila, PhilippinesEducation: Ravenhill Academy and Notre Dame Convent School in New York, College of Mount St. Vincent  in New York City, law school at the Far Eastern University in ManilaAwards and Honors:  J. William Fulbright Prize for International Understanding, chosen by  Time  Magazine  as one of the 20 Most Influential Asians of the 20th century and one of 65 great Asian HeroesSpouse: Ninoy AquinoChildren: Maria Elena, Aurora Corazon, Benigno III Noynoy, Victoria Elisa, and Kristina BernadetteNotable Quote: I  would rather die  a  meaningful death than  to  live  a  meaningless life. Early Life   Maria Corazon Sumulong Conjuangco was born on January 25, 1933, in Paniqui, Tarlac, located in central Luzon, Philippines, north of Manila. Her parents were Jose Chichioco Cojuangco and Demetria Metring Sumulong, and the family was of mixed Chinese, Filipino, and Spanish descent. The family surname is a Spanish version of the Chinese name Koo Kuan Goo. The Cojuangcos owned a sugar plantation covering 15,000 acres  and were among the wealthiest families in the province. Cory was the couples sixth child of eight. Education in the U.S. and the Philippines As a young girl, Corazon Aquino was studious and shy. She also showed a devout commitment to the Catholic Church from an early age. Corazon went to expensive private schools in Manila through age 13, when her parents sent her to the United States for high school. Corazon went first to Philadelphias Ravenhill Academy and then the Notre Dame Convent School in New York, graduating in 1949. As an undergraduate at the College of Mount St. Vincent in New York City, Corazon Aquino majored in French. She also was fluent in Tagalog, Kapampangan, and English. After her 1953 graduation from college, Corazon moved back to Manila to attend law school at the Far Eastern University. There, she met a young man from one of the Philippines other wealthy families, a fellow student named Benigno Aquino, Jr. Marriage and Life as a Housewife Corazon Aquino left law school after just one year to marry Ninoy Aquino, a journalist with political aspirations. Ninoy soon became the youngest governor ever elected in the Philippines, and then was elected as the youngest ever member of the Senate in 1967. Corazon concentrated on raising their five children: Maria Elena (b. 1955), Aurora Corazon (1957), Benigno III Noynoy (1960), Victoria Elisa (1961), and Kristina Bernadette (1971). As Ninoys career progressed, Corazon served as a gracious hostess and supported him. However, she was too shy to join him on stage during his campaign speeches, preferring to stand at the back of the crowd and watch. In the early 1970s, money was tight and Corazon moved the family to a smaller home and even sold part of the land she had inherited in order to fund his campaign. Ninoy had become an outspoken critic of Ferdinand Marcoss regime  and was expected to win the 1973 presidential elections  since Marcos was term-limited and could not run according to the Constitution. However, Marcos declared martial law on September 21, 1972, and abolished the Constitution, refusing to relinquish power. Ninoy was arrested and sentenced to death, leaving Corazon to raise the children alone for the next seven years. Exile for the Aquinos In 1978, Ferdinand Marcos decided to hold parliamentary elections, the first since his imposition of martial law, in order to add a veneer of democracy to his rule. He fully expected to win, but the public overwhelmingly supported the opposition, led in absentia by the jailed Ninoy Aquino. Corazon did not approve of Ninoys decision to campaign for parliament from prison, but she dutifully delivered campaign speeches for him. This was a key turning point in her life, moving the shy housewife into the political spotlight for the first time. Marcos rigged the election results, however, claiming more than 70 percent of the parliamentary seats in a clearly fraudulent result. Meanwhile, Ninoys health was suffering from his long imprisonment. U.S. President Jimmy Carter personally intervened, asking Marcos to allow the Aquino family to go into medical exile in the States. In 1980, the regime allowed the family to move to Boston. Corazon spent some of the best years of her life there, reunited with Ninoy, surrounded by her family, and out of the scrum of politics. Ninoy, on the other hand, felt obligated to renew his challenge to the Marcos dictatorship once he had recovered his health. He began to plan a return to the Philippines. Corazon and the children stayed in America while Ninoy took a circuitous route back to Manila. Marcos knew he was coming, though, and had Ninoy assassinated as he got off the plane on August 21, 1983. Corazon Aquino was a widow at the age of 50. Corazon Aquino in Politics Millions of Filipinos poured into the streets of Manila for Ninoys funeral. Corazon led the procession with quiet grief and dignity  and went on to lead protests and political demonstrations as well. Her calm strength under horrific conditions made her the center of anti-Marcos politics in the Philippines- a movement known as People Power. Concerned by the massive street demonstrations against his regime that continued for years, and perhaps deluded into believing that he had more public support than he actually did, Ferdinand Marcos called new presidential elections in February of 1986. His opponent was Corazon Aquino. Aging and ill, Marcos did not take the challenge from Corazon Aquino very seriously. He noted that she was just a woman, and said that her proper place was in the bedroom. Despite massive turnout by Corazons People Power supporters, the Marcos-allied parliament declared him the winner. Protestors poured into the Manila streets once more and top military leaders defected to Corazons camp. Finally, after four chaotic days, Ferdinand Marcos and his wife Imelda were forced to flee into exile in the United States. President Corazon Aquino On February 25, 1986, as a result of the People Power Revolution, Corazon Aquino became the first female president of the Philippines. She restored democracy to the country, promulgated a new constitution, and served until 1992. President Aquinos tenure was not entirely smooth, however. She pledged agrarian reform and land redistribution, but her background as a member of the landed classes made this a difficult promise to keep. Corazon Aquino also convinced the U.S. to withdraw its military from remaining bases in the Philippines- with help from Mt. Pinatubo, which erupted in June 1991 and buried several military installations. Marcos supporters in the Philippines staged a half dozen coup attempts against Corazon Aquino during her term in office, but she survived them all in her low-key yet stubborn political style. Although her own allies urged her to run for a second term in 1992, she adamantly refused. The new 1987 Constitution forbade second terms, but her supporters argued that she was elected before the constitution came into effect and did not apply to her. Retirement Years and Death Corazon Aquino supported her Defense Secretary Fidel Ramos in his candidacy to replace her as president. Ramos won the 1992 presidential election in a crowded field, although he was far short of a majority of the vote. In retirement, former President Aquino frequently spoke out on political and social issues. She was particularly vocal in opposing later presidents attempts to amend the constitution to allow themselves extra terms in office. She also worked to reduce violence and homelessness in the Philippines. In 2007, Corazon Aquino publicly campaigned for her son Noynoy when he ran for the Senate. In March 2008, Aquino announced she had been diagnosed with colorectal cancer. Despite aggressive treatment, she passed away on August 1, 2009, at the age of 76. She did not get to see her son Noynoy elected president; he took power on June 30, 2010. Legacy Corazon Aquino had a tremendous impact on her nation and on the worlds perception of women in power. She has been described as both the mother of Philippine democracy and as the housewife who led a revolution. Aquino has been honored, both during and after her lifetime, with major international awards including the United Nations Silver Medal, the Eleanor Roosevelt  Human Rights Award, and the Womens International Center International Leadership Living Legacy Award. Sources â€Å"Corazon C. Aquino.†Ã‚  Presidential Museum and Library.Editors of the Encyclopà ¦dia Britannica. Corazon Aquino.  Encyclopà ¦dia Britannica.  Maria Corazon Cojuangco Aquino.  National Historical Commission of the Philippines.

Reflective Journal Assignment Essay Example | Topics and Well Written Essays - 750 words

Reflective Journal Assignment - Essay Example The success of this stage in growth leads to the virtue of hope which often goes a long way in determining how a person would view the world and/or tackle real life crises and problems that are ever existent. Being of a middle age compared to the other of our siblings, I was never accorded the utmost care that the others had and this I believed strengthened my resolve greatly. I become more independent and assertive and this enabled me too to recognize my abilities and skills. Taking part in groups, organizing class events at schools, sorting out fellow children quarrels and disagreements enabled me to recognize my special talent in counseling at a tender age. Ages 10-20, regarded by most scholars as the age bracket that makes or breaks an individual were rather hectic for me. This is where self actualization occurs when one starts to learn the roles he would want to play as an adult. At an adolescent age, I got to learn a lot about myself and the surrounding. This is the age where I got to re-examine my identity and who I really was both in our family and to the society at large. This period came to pass with a lot of challenges that defined who I became. I decided to set myself on a career path and developed a greater sense of fidelity and tolerance. My later advanced ages presented to me the worst times I ever had. Before making any considerations on the need and motives, I decided to have a partner in my early 20’s. As described in the eight stages of development by Erikson, this is the period in the lifespan of an individual when one yeans for intimacy and a certain level of commitment. I got married at a comparatively younger age and this came with its share of problems. I had a marital relationship that that took turns at every face of difficulty and disagreements. This stage gave me a lot of insight into the issues that couples face on a daily basis and opened me up more to the counseling profession. At the

Case Study Assignment (Zara Case) in Europe, Asia, North America and Essay

Case Study Assignment (Zara Case) in Europe, Asia, North America and Middle East - Essay Example Moreover, the wider scope in the fashion industry has provided the company with certain significant opportunities. On the other hand, it has been ascertained that value chain system of the company has been one crucial factor contributing towards its success and growth. Moreover, in the recent times, the company has also been impacted by few challenges of Corporate Social Responsibility (CSR) which has forced the company to undertake a few vital changes in over strategic implementation. Thus, the paper emphasized on identifying the factors that have influenced the strategies of the company as well as this paper comprises vital suggestions for its strategic improvement. From the findings of the study, it has been ascertained that the company has determined to achieve significant milestones. In this course, it has made certain vital plans and has further formulated strategies to successfully accomplish the benefits. Contextually, the company has significantly involved in strengthening i ts brand image through its involvement in the CSR activities and other promotional activities. Finally, it was concluded that the company should take certain vital precautions while implementing strategies for accomplishing the potential opportunities. It was suggested that company should not implement its strategies at single point of time rather it should priorities them according to its needs and market demands for reaping the best possible benefits in the current and future context. Table of Contents Executive Summary 2 Zara is one of the leading apparel and fashion brands, which operates under the flagship of Inditiex Group of Spain. The company has its operations spread in Europe, Asia, North America and Middle East. Zara is known for offering quality apparels at affordable prices. Over the years, the company has attained significant growth. Its strategies have enabled the company to gain substantial competitive advantages over its competitors. Nonetheless, the company is sign ificantly influenced by few prominent external factors as well as few internal factors. Moreover, the wider scope in the fashion industry has provided the company with certain significant opportunities. On the other hand, it has been ascertained that value chain system of the company has been one crucial factor contributing towards its success and growth. Moreover, in the recent times, the company has also been impacted by few challenges of Corporate Social Responsibility (CSR) which has forced the company to undertake a few vital changes in over strategic implementation. Thus, the paper emphasized on identifying the factors that have influenced the strategies of the company as well as this paper comprises vital suggestions for its strategic improvement. 2 Table of Contents 3 1. Introduction 5 2. External Environment 5 2.1 PESTEL Analysis 5 2.1.1 Political Factors 5 2.1.2 Economic Factors 6 2.1.3 Social Factors 6 2.1.4 Technological Factors 7 2.1.5 Environmental Factors 7 2.1.6 Lega l Factors 7 2.2 Five Forces Analysis 8 2.2.1 Threat of Substitutes 8 2.2.2 Threat of New Entry 8 2.2.3 Bargaining Power of Buyers 9 2.2.4 Bargaining Power of Suppliers 9 2.2.5 Competitive Rivalry 9 3. Internal Environment 9 3.1 SWOT Analysis 10 3.1.1 Strengths 10 3.1.2 Weaknesses 10 3.1.3 Opportunities 11 3.1.4 Threats 11 3.2 Resource Based View of the Company 11 3.3. Value Chain Analysis 12 3.3.1 Primary Activities 12 3.3.2 Secondary Activities 14 4. Corporate Social