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Investors influence on publicly listed companies - Free Essay Example

Sample details Pages: 26 Words: 7700 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Are institutional investors influence over publicly listed companies over-stepping the mark? A case study of De Vere Group Plc and Guinness Peat Group Plc. Table of Contents 1.1 The Climate Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. 3 Chapter 2 Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" The Takeover Attempt Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. 7 2.1 The Makings of An Attractive Takeover Target Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. 7 2.2 De Vere Group Plc Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ã ƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. 10 2.3 Guinness Peat Plc Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. 17 Chapter 3 Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" Literature Review Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ 24 3.1 Stakeholders Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. 24 3.2 Corporate Governance Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. 25 3.3 Company Ownership Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. 26 3.4 Shareholder Powers Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. 29 3.5 Management Responsibilities Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. 30 Chapter 4 Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å"Conclusions and Recommendations Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ã ƒ ¢Ã¢â€š ¬Ã‚ ¦ 31 Bibliography Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ 34 The beginning of the industrial revolution created new opportunities as well as problems for the business enterprises of that era in that there were a limited number of individuals as well as investors who could finance the large sums of capital needed to underwrite the vast scale of equipment, resources and expansion required. In order to capitalize upon the numerous opportunities which were presenting themselves as well as avoid being overexposed in any one venture, financial markets rose as a means for several investors to join in sharing the risks as well as the fina ncial investment. The beginnings of the preceding, financial markets, started in Europe to finance the industrial revolution as well as the expansionist policies of the British empire (eCommercenow, 2005). TodayÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s financial markets are the medium for the processing of various business financial transactions ranging from new issues to stock trading. Through the issuance of shares as well as financial reporting and public disclosure businesses are able to raise capital to finance new plant and equipment, expansion, research and development along with other purposes to increase sales, market share and bottom line performance. The ability to raise capital does come with certain expectations on the part of shareholders who hold a stake in the performance of the company, thus its directors and management must produce bottom line results. This measure of influence afforded by stock regulations and shareholder representation in the affairs of the company through annual s hareholder meetings and voting on the Board creates interesting scenarios. Shareholders are able to review managementÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s performance and as such can question various aspects at the shareholders meeting. Substandard performances have seen directors and executives removed from their positions, as well as serving to fuel takeover bids by investment companies who advise shareholders that they can receive a better return under their management. The reverse of this scenario also occurs. When the company has done and/or is doing well, the accumulation of assets, cash and other related positive financial aspects serve as attractive bait for various investment companies to seek to take over operations. In the United States, the quintessential corporate investment firm is Kohlberg, Kravis Roberts (KKR), known for their utilization of the leveraged buyout (LBO) through the creation of limited partnerships to take control of corporations. Known for their leveraged buyout of R JR Nabisco, Gillette, Safeway, Borden and other companies (kkr, 2005), they have acquired the reputation as corporate raiders. Known as an investment holding company, Guinness Peat Group Plc focus on acquiring positions in as well as owning public companies engaged in various industry sectors. This case study shall examine the offer by Guinness Peat for De Vere Group Plc focusing upon the reasons resulting in the offer as well as the factors contributing to same. 1.1 The Climate The events leading up to the offer by Guinness Peat Plc for De Vere Group Plc find themselves rooted in the overall climate of global as well as the British stock markets preceding 2004 when the indicated offer was tendered. 2001 saw a recession grip the United States economy that affected a drastic reduction in growth in developed as well as developing countries throughout the globe(nyu.2005). The pattern of global bull and bear markets during the prior decade had seen its fortunes tied to the economi c and stock market performances of the United States and Japan as the principle regional economic engines in the Americas and Asia. The unification effects of the European Union and the adoption of the euro as a singular measure of currency would not go into affect until January 1, 2002 (euro.com, 2005), thus EuropeÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s influence on global markets in 2001 was still fragmented, with Germany being the most consistent performer. Koutmos (1995) and Bae et al (1994) postulated that events, such as corporate news, job data, positive and negative developments, that transpired in the market in the United States are rapidly transmitted throughout the globe and help to influence global market performance. The preceding is a result of the dominance of the United States market in trading volume as well as being the most influential source and producer of information. The attacks on the World Trade Center in New York city, as well as subsequent commercial airliner attacks in Wa shington D.C. and Virginia, impacted global economies further intensifying the recession that had started in March of that year. The preceding view of the United States as a driver of global economies is also shared by Masih et al (2001) whose empirical evidence confirmed that price leadership in U.S. markets influences global economics and stock market indices. This market sensitivity to news from the United States creates a climate whereby international investors tend to overreact to news transmitted from this source, and be less concerned with news from other regions (Becker et al, 1995). The foregoing, along with a summary of subsequent years leading up to the 2004 offer by Guinness Peat, helps to chart the mood and climate for shareholders and investors that created the atmosphere for the preceding. The recovery in 2002 was one that showed a growth in output, but not jobs, and thus was considered Ãƒ ¢Ã¢â€š ¬Ã‹Å"weakÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ by economists. And stock markets were fur ther affected by the accounting scandals in the United States involving Enron, Worldcom and other Blue Chip firms. These contributed to a loss of confidence by investors and saw the London FTSE fall 24 percent from its May 2002 peak (Middle East Survey, 2002). The Bear market that had gripped global economies was in its third year and represented the longest consecutive period of declining stocks in the United States since 1939 through 1941 (Taylor, 2002). The foregoing also affected stock markets as well as economies in every major developed and developing country throughout the globe. It is important to understand the conditions that contributed to the long running Bear market as these events would later influence Guinness Peat Plc in its analysis of De Vere Group Plc and the need to place a major deal in its investment portfolio after some lean IPO and stock performance years. The Bear market run was driven in 2000 through 2002 by the following factors (Taylor, 2002): DonÃ¢â‚¬â„¢t waste time! Our writers will create an original "Investors influence on publicly listed companies" essay for you Create order The Technology Bubble burst and there was an overvaluation of the stock market in other sectors as well. 2001Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s recession along with the slow pace of the recovery that gripped most the major developed economies, as well as most developing economies. Investor loss of confidence in analysts, companies, CEOÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s and Wall Street in general as a result of scandals and corporate wrongdoing. The threat of terrorism, war and varied geopolitical concerns became headline topics with scant resolution in terms of solving or resolving the fundamental causes or proponents. The significance of the preceding events manifested themselves in: The biggest bankruptcies in history as Enron with $63 billion, was followed by Global Crossings at $25 billion, along with Kmart with $17 billion, and a host of other companies, not to mention the prior dot.com shakeup which was still affecting various industries. The Sarbanes Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" Oxley Act of 2002 was a sobering reminder of the potential for corporate financial reporting as evidenced by the indicated bankruptcies that preceded its passage. It was enacted to instill renewed investor confidence in the market as a result of new laws enacted to control the potential for white-collar crime with severe penalties. Governmental Actions The weakness in economies throughout 2002 caused the United States Federal Reserve to attempt to restore confidence by cutting interest rates by 50 basis points on November 6, 2002 in conjunction with a similar action by the European Central Bank which occurred on December 5, 2002. The heavy U.S. trade deficit as well as United States overspending on its budget kept markets from rebounding and created the environment whereby the U.S. dollar declined. Each of the preceding contributed to a stagnated U.S. market and a resulting weakness in major global markets thus aiding the long Bear run. It is important to understand the aspects that drove the markets down over the three year period of 2000 through 2002 as this will help to explain investor and shareholder sentiment in the United Kingdom during 2004 as well as the management rationales for Guinness PeatÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s De Vere offer. Taylor (2002) indicated that there were four factors to keep in mind regarding the poor perf ormance of financial markets and economies during 2000 through 2002, In order for the Bear market to come to an end, Taylor (2002) stated that two or more of the indicated factors had to change: Stock prices needed to fall, or corporate earning needed to rise in order to eliminate stock overvaluation in the market, AmericaÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s economy needed to recover and begin expanding, confidence needed to be regained by investors in the integrity of the stock market, and The various geopolitical threats and concerns resulting from terrorism needed to be brought under control. 2003 saw a modest recovery in the stock market and global economies taking hold. Part of the optimism was attributed to the ending of the war in Iraq, but more telling were the improved earnings reports from companies and increased dividend yields which helped to pull investor money out of bonds and back to stocks (Boland, 2003). Sellers (2004) indicated that the strength of the market recovery in 2003 was not to be found in the major indices, but in a broad look at how the average non blue chip stocks performed during that year. Sellers (2004) indicated that 5,201 of the Morningstar index of 5,999 stocks (87%) recorded stock price gains. The preceding, along with a 26% gain in the Standard PoorÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s 500 index where fully 92% of all the stocks recorded an increase in year end stock prices signaled across the board economic strength. For the year the NASDAQ composite increased by 50%, the Dow Jones industrial average recorded a 25% gain, and the Russell 2000 increased by 45% for its best year its 25-year existence.(Norris, 2004) These developments in the American financial markets aided as well as coincided with recoveries in other countries. The tracking of financial market and economic performance in the United States during the preceding periods, 2001 through 2003, is important as global markets are influenced by developments in the American economy. The indication of market conditions in the United States closely mirrored developments in the United Kingdom thus signaling an end to the longest running Bear market in history. It is important to note that as a result of trade, and other economic variables, that the British recovery lagged approximately three to five months behind the recovery in the United States. The market shakeouts recorded as a result of the recession, scandals, Sarbanes Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" Oxley Act of 2002, and governmental actions helped to restore market stability and the resulting investor confidence. The preceding s ummary of global stock markets and economic conditions represents important background information in understanding the attractiveness of De Vere Group Plc to Guinness Peat Plc in terms of its Partial Cash Offer in 2004. The financial misreporting and other glowing corporate and industry predictions that marked the foundations of the Bear market signaled a return to equity and asset barometers as indices of corporate strength and performance and this is the corporate financial area that Guinness Peat concentrated on in its appeal to De Vere shareholders. Chapter 2 Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" The Takeover Attempt 2.1 The Makings of An Attractive Takeover Target To understand the reasons as to Guinness PeatÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s interest in De Vere Group Plc, one must be cognizant of the workings of public companies and the environment in which they operate. These factors were present, from an historical as well as contemporary standpoint, when Guinness Peat made the internal determinati on to proceed with its Partial Cash Offer for De Vere Group Plc. In order to understand the context of such decisions by an investment company, such as Guinness Peat, evaluating which potential target to seek and for what reasons, along with an understanding of what might have been considered as the rationale(s) for making such an offer shall be explored. Founded in 1801 (Wikipedia, 2005), the London Stock Exchange is the conduit via which public companies interact with financial markets. In the United Kingdom the exchange is the watchdog over the rules and regulations governing publicly traded companies, unlike the system in the United States where the Securities and Exchange Commission as separate and autonomous government agency oversees rules and regulations. In 2001 the United Kingdom enacted the Financial Services Agency (FSA) (Carriere et al, 2002) which combines all prior United Kingdom agencies having oversight concerning securities matters under one umbrella. The role o f this agency might one day encompass a regulatory position that might be similar to the United States Securities and Exchange Commission, however at this time it operates as an independent agency Ãƒ ¢Ã¢â€š ¬Ã…â€œÃƒ ¢Ã¢â€š ¬Ã‚ ¦that regulates the financial services industry in the United KingdomÃƒ ¢Ã¢â€š ¬Ã‚ . (FSA, 2005) The FSA has been provided with a broad array of rule making as well as investigative and enforcement powers to enable it to meet the four statutory objectives set forth for its existence (FSA,2001): Market Confidence Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" to maintain investor confidence in the financial system, Public Awareness Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" to promote a clear understanding of the financial system to the general public, Consumer Protection Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" to secure an appropriate measure of protection for the public, and Reduction of Financial Crime Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" to reduce the extent for which it is possible to utilize a commercial enterprise for an end that is connected with the commission of a financial crime. The extent to which the London Stock Exchange is revered can be found in the fact that the countries of continental Europe have modeled their capital markets on the British system.(Carrie et al, 2002) Guinness Peat, under Sir Ron Brierley, aspires to a reputation as Ãƒ ¢Ã¢â€š ¬Ã…â€œÃƒ ¢Ã¢â€š ¬Ã‚ ¦the Warren Buffett of the South PacificÃƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ (Sharechat, 2001) and thus the firm has acquired a reputation as a corporate raider. While the term itself sounds somewhat ominous the actual practice (corporate raid), is a viable financial strategy. A corporate raid is when an investment company (usually the initiator of such events) seeks a hostile takeover of a public company whereby the assets of the acquired company are sold off in pieces and the prices such a liquidation of the entities within that business produce exceed what was paid. As a result, the acquired company in most cases no longer continues to operate. The term Ãƒ ¢Ã¢â€š ¬Ã…â€œhostileÃƒ ¢Ã¢â€š ¬Ã‚ i s utilized in this instance as Guinness PeatÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s offer for De Vere Group Plc was targeted at shareholders to cause them to vote in favor of the Partial Cash Offer. The effect of corporate raiders in terms of the economy as well as the shareholders of the companies involved is still a source for wide debate. There are proponents who believe that corporate raids constitute a damaging activity for shareholders and the economy in that they cause and create large-scale economic disruption of activity, not only for the affected company, but for the companies that do business with it as well. It is pointed out that the closing of factories, branches or business outlets create levels of unemployment for those workers whose jobs disappear as a result. On the other side of the coin there are proponents who believe that the existence of corporate raiders help to cleanse the market of companies where management has been lax in managing assets. An example of the preceding is wh en a company has large assets and a low stock price. In such an instance company management should seek higher stock pricing thus increasing investor confidence and providing shareholders with either dividends or the opportunity to trade shares and derive a profit. As a result some argue that corporate raiders serve to prevent business managers from become complacent and thus find means to redistribute assets (capital) from lower performing sectors of the economy to more productive sectors. There are those who point to the fact that the existence of raiders is a factor as to why the market performance of companies based in the United States during the 1990Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s exceeded those in Germany and Japan where corporate raiding is not permitted. The maximization of shareholder value is one of the responsibilities of management in seeing to the interests of the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s shareholders, as well as the company itself. (Mayer, 1999) The recession climate that gr ipped capital markets and global economies from 2000 through the beginnings of 2003 created a lot of anxiety on the part of shareholders as well as investment firms in that the opportunities to yield profitable outcomes had diminished to scant few opportunities. The recession period followed one of the longest running Bull markets, 1989 through 1999, which saw the dot.com, technology and telecom revolutions. The pent up desire to return to the profit making of that era could have been a factor in Guinness PeatÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s De Vere offer. In order to equate if this, or other factors are the reasons behind this event, an analysis of both De Vere Group Plc and Guinness Peat Plc is in order. The preceding will examine these companies during 2000 through 2004 in order to gain a perspective on their operations, profitability and other factors, as these areas had an impact on the Offer of Guinness Peat in 2004. 2.2 De Vere Group Plc Trading on the London Stock Exchange as De Ve re Group Plc (DVR), the company engages in operating in both the hotel and health / fitness sectors, two areas that the company sees as growth oriented. This focus was arrived at in 1999 when the company opted to transform its core business as a diversified leisure group to the current corporate positioning. The preceding shift in direction was under taken to maximize shareholder value and entailed management shifting resources, administrative systems and personnel from the tenanted as well as managed pub businesses. The tenanted division, which consisted of the Inn Partnership, was sold for Ãƒâ€šÃ‚ £370 million in January of 1999, and the managed division, Greenalls Pubs and Restaurants, was sold for Ãƒâ€šÃ‚ £1.14 billion in December of 1999. Management utilized a portion of the proceeds from these sales to return Ãƒâ€šÃ‚ £529 million to the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s shareholders by a special dividend and capital payment, while Ãƒâ€šÃ‚ £392 million was utilized to pay off debt. Th e structured company was changed from Greenalls Group to De Vere Group in 2000. The preceding sale of the indicated business entities signaled managementÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s intention to completely divest itself of all Tavern and drinks wholesaling businesses. This was accomplished by the end of February 2001 when 17 depots were sold and the remaining units closed. The present company, De Vere Group Plc,, consists of two hotel brands, De Vere Hotels and Village Hotels Leisure Clubs, as well as a separate health and fitness brand titled Greens. In addition to the preceding, De Vere also owns a small sized white spirits company called GJ Greenall (Drinks Business Review, 2005). De Vere Hotels are the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s upscale market chain that consists of 21 locations. Targeted at the corporate and leisure markets these hotels have conference and a broad array of leisure facilities, including golf clubs. De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s mid-range hotel division consists of 14 Vi llage Leisure Hotels that contain health and fitness facilities. The De Vere brand name has enjoyed public acceptance in its positioning and this has permitted the company to leverage this awareness to create De Vere Resort Ownership, which are lucrative timeshare lodges are the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s resort properties. These lodges are currently situated in three locations: Cameron House, Loch Lomond, Slaley Hall, Northumbria Belton Woods, Lincolnshire The Greens brand consists of stand-alone health and fitness facilities that are targeted at the premium segment of the market. This divisionÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s consumer strategy focuses on the adult segment of the population and also appeals to families. There are 15 Greens each comprising approximately 40,000 square feet of space equipped with gyms, steam rooms, spas, saunas, pools and facilities for aerobics. De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s GJ Greenall division manufacturers spirits under its own brand name, Greenalls Original and Daresbury Q, as well as manufacturing premium brands for Bacardi International (Bombay Gin and Bombay Sapphire). It is the performance of the company in preceding years that generated the interest of Guinness Peat in tendering its Partial Cash Offer. As such, the years succeeding the 1999 management refocus hold the answers to this question. 2.2.1 2000 The effects of the shift in corporate operations undertook by management in 1999 were revealed in the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s Annual Report statements. The Chief ExecutiveÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s Operating Review summarized the financial position, in comparison to 1999, as follows: Table 1 1999 Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" 2000 Comparisons Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" De Vere Group Plc. (De Vere Annual Report, 2000) 2000 Turnover 1999 Turnover 2000 Pre-tax Profit 1999 Pre-tax Profit Ãƒâ€šÃ‚ £478.4m Ãƒâ€šÃ‚ £899m Ãƒâ€šÃ‚ £37.9m Ãƒâ€šÃ‚ £91.9m While the figures indicate a sharp decline from 1999 figures, they also reflect the loss of revenues from divestiture as well as the Ãƒâ€šÃ‚ £529 million which was paid to company shareholders via a special dividend as well as the Ãƒâ€šÃ‚ £392 million that was used to pay company debt. The resulting leaner company was therefore able to concentrate its energies on the new direction with a better looking balance sheet in terms of debt ratios and thus attractiveness to finance new operations from the cash derived from the sale of divisions. Although the overall revenue declined, as a result of the sale of operations and the fact that the sale of business divisions contributed just eight weeks of earnings, the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s revenues from those businesses it retained showed an increase of 13.5 percent to Ãƒâ€šÃ‚ £232.5 million, compared against Ãƒâ€šÃ‚ £204.9 million reported for 1999. The new health and fitness divisions increased their revenues by 15.2 percent to Ãƒâ€šÃ‚ £206.6 million from Ãƒâ€šÃ‚ £179.2 million, and this combined with the core hotel operations returned a profit of 15 percent, or Ãƒâ€šÃ‚ £15.5 million. (De Vere, 2000) It is interesting to note that De Vere actually functioned in a similar manner to a corporate raider when it changed the course of its business strategy by selling off existing operations to invest and enter what management deemed more profitable business sectors. De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s entry into the health and fitness sector focused on the inherent weakness in this growing segment which was dominated by smaller local and regional operators. The unified nature of its market positioning under a large public company added luster to its entry as the company focused on upscale market imaging and demographics. Its Greens division profited from this positioning in terms of what the public perceived as quality management decisions that were overseeing this middle market demographic entry. The facilities are new, well planned and not lacking in the latest equipment and techniques. The ability of the company to focus economic clout on facilities and equipment provided consumers with a unified and identifiable brand it could trust. The preceding resulted in a membership roster of 78,000 in the De Vere Hotel, Village Leisure and Greens divisions. 2001 The companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s move to hotels and health and leisure facilities represented the acquisition of real estate which the company either developed through the construction of new facilities or purchased via existing operations such as the Cavendish Hotel for Ãƒâ€šÃ‚ £60 million which it purchased in December of 2000. These build outs and acquisitions have the effect of strengthening the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s balance sheet from the gain of developed properties as well as the revenue derived from these operations. In addition, memberships generate a continuous revenue stream as well as a base for marketing promotions and other activities. The companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s upscale market approach left its core business less susceptible to economic swings as a result of the relative demographic stability of the upper income profile. The company increased the number of hotel rooms under the De Vere brand to 4,303 units, representing a 10.8% increase, and generated an operat ing profit of Ãƒâ€šÃ‚ £49.7 million as opposed to the Ãƒâ€šÃ‚ £46.5. 2001 represented the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s first full year under its new operating structure and core businesses (De Vere, 2001). The company considered a sale of its Greens division, however the events of September 11th in the United States caused the Board to rethink its position in light of the looming economic uncertainty. The global economic slowdown that followed flattened the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s earnings and slowed the development of new facilities as well as market expansion in a tight travel and entertainment sector. Table 2 De Vere Group Plc Operating Highlights 2001 (De Vere Annual Report. 2001) 2001 Ãƒâ€šÃ‚ £m 2000 Ãƒâ€šÃ‚ £m % change Turnover 273.8 232.5 +17.7% Operating Profit 49.7 46.5 +7.1% 2002 The company managed to fair quite well in 2002 with strong performances throughout the GroupÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s divisions in its upscale market niche. One example is the increase of 1.4% and 0.7% in the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s De Vere Hotel and Village Hotels Leisure Clubs, respectively. The preceding compares against industry declines of 2.9% in the countryÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s provincial market. (De Vere, 2002) The foregoing attests to managementÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s decision to target the upper income segment of the market in a defensive move against market downturns, and as a marketing move at higher profits due to disposable incomes. The preceding helped both of the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s hotel brands to outperform the market. The companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s positioning and long-standing sponsorship of the Ryder Cup positioned it in the premium category further adding to the brandÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s worth. In the tough climate that impacted the business as well as consumer travel and leisure markets in 2002 as a result of the aftermath of 9/11, the De Vere Group still managed to grow by 1.8% in a receding market. More importantly the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s stock share price managed to maintain a steady moderate upward swing during the global recession earning it the reputation as a stellar performer. The soundness of the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s decision to build of new facilities along with acquisitions of existing upscale hotel properties saw the value of its tangible assets rise to Ãƒâ€šÃ‚ £848.473 million, and with investments standing at 6.804 million the De Vere GroupÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s fixed assets totaled Ãƒâ€šÃ‚ £855.277 million. Table 3 De Vere Group Plc Operating Highlights 2002 (De Vere Annual Report.2002) 2002 Ãƒâ€šÃ‚ £m 2001 Ãƒâ€šÃ‚ £m % change Turnover 293.9 273.8 +7.3% Operating Profit 51.9 49.7 +4.2% 2003 At the end of 2003 the De Vere Group had 21 De Vere Hotels representing 3,310 rooms, an increase over the 2002-year end total of 3,298. More impressively, the preceding was accomplished in a receding market. The value of the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s fixed assets increased from Ãƒâ€šÃ‚ £855.277 to Ãƒâ€šÃ‚ £869.214, with tangible assets rising to Ãƒâ€šÃ‚ £859.114 (from Ãƒâ€šÃ‚ £848.473), and investments increasing to Ãƒâ€šÃ‚ £10.100 from Ãƒâ€šÃ‚ £6.804.(De Vere, 2003) 2003 saw the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s stock price leave its hover between 500 and 400 ranges and move into the solid 600 category at year end. The stock performance demonstrated public confidence in the progress of the company, as well as the steady progression of successful openings and operating results in a tough industry sector. The company accepted the resignation of Paul Dermody who stepped down from the role of Chief Executive, a role which he occupied for three and a half years after forty years of service w ith the company. Carl Leaver was appointed to his post from Whitbread Plc where he was the Managing Director for Travel Inn as well as a prior position of Operations Director for MarriottÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s Country Club golf resort hotels. (De Vere, 2003) Table 4 De Vere Group Plc Operating Highlights 2003 (De Vere Annual Report.2003) 2003 Ãƒâ€šÃ‚ £m 2002 Ãƒâ€šÃ‚ £m % change Turnover 312.2 293.9 +6.2% Operating Profit 54.7 51.9 +5.4% 2004 2004 saw a strengthening of the hotel market in the United Kingdom after three years of decline or stagnant growth. The strengthening of the travel and leisure segment of the market permitted the company to increase the average room rates by 2.0% to Ãƒâ€šÃ‚ £84.81 (De Vere, 2004). The effectiveness of De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s market positioning in the upscale segment of the market (demographics), along with the consumer perception of superior service and an effective marketing campaign were the underlying reasons attributed to the foregoing. The preceding was demonstrated by the 80% occupancy rate at the acquired De Vere Cavendish hotel, which was purchased in 2001. The foregoing improvements in occupancy rates included the Village Hotels and Leisure Clubs which demonstrated occupancy rates of 80% compared to the industry average of 67.8%, with an increase, on average, of 5.1% in room rates to Ãƒâ€šÃ‚ £55.10 (De Vere.2004). Fixed assets totaled Ãƒâ€šÃ‚ £860.817m, against Ãƒâ€šÃ‚ £859.114m recorded in 2003, and investments accounted for Ãƒâ€šÃ‚ £10,243m compared with Ãƒâ€šÃ‚ £10.100m in 2003, for a total of Ãƒâ€šÃ‚ £871,060 for 2004 (Ãƒâ€šÃ‚ £869.214 for 2003). (De Vere, 2004) 2004 marked the year that Guinness Peat Plc tendered its offer for 25% of the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s issued share capital which was soundly rejected by the shareholders of which just 0.55% voted in favor. (Bloomberg, 2004) An examination of the De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s asset, earnings and stock price points to a company that had successfully implemented a new direction in its core business and positioned itself in the upscale hotel and leisure industry categories. After just four short years the company had earned a stellar reputation for quality and service and had grown to 21 De Vere hotels and 13 Village Hotels Leisure Clubs. Membership sales at Greens totaled 68,400 individuals and this division had turned profitable in 2003. GJ Greenall increased sales by 6.9% to Ãƒâ€šÃ‚ £28.8 and signed a new agreement with Bacardi International through 2012 with a higher margin clause. In all instances the company either met or exceeded its goals and returned shareholder confidence in achieving results in adverse market conditions marked by 2000 through 2003. Guinness PeatÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s Partial Cash Offer for 25% of De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s issued share capital represents an occurrence where the nuances of the offer require close examination as to GuinnessÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ intent. Table 5 De Vere Group Plc Operating Highlights 2004 (De Vere Annual Report.2004) 2004 Ãƒâ€šÃ‚ £m 2003 Ãƒâ€šÃ‚ £m % change Turnover 321.8 312.2 +3.1% Operating Profit 57.6 54.7 +5.4% 2.3 Guinness Peat Plc 2.3.1 Background on the Company Although headquartered in London, the Guinness Peat Group Plc is one of New ZealandÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s premier companies, listed on the London, Australian and New Zealand stock exchanges. With a market capitalization of Ãƒâ€šÃ‚ £690.9 million the company has the financial resources to fund its investment strategies, which include holdings in financial services, manufacturing (thread and foods), building as well as raw materials (aluminum).(GPG, 2005) Its holdings are primarily in Europe as well as Australia and the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s small but experienced core of executives operate with a hands on attitude. The company is known for its selective investment strategy which it makes mostly in public companies. The preceding is for the purpose of enhancing share value through the influence of shareholders as well as announcements and topics at the acquired companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s meetings. Sir Ron Brierley is kno wn as an Ãƒ ¢Ã¢â€š ¬Ã‹Å"active investorÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ and some tend to label Guinness Peat as a corporate raider, however, he explains his strategy as akin to an entrepreneur who Ãƒ ¢Ã¢â€š ¬Ã…â€œÃƒ ¢Ã¢â€š ¬Ã‚ ¦stirs things up and adds value.Ãƒ ¢Ã¢â€š ¬Ã‚ (Sharechat,2001) Labeled as the Ãƒ ¢Ã¢â€š ¬Ã…â€œWarren Buffett of down underÃƒ ¢Ã¢â€š ¬Ã‚ (Sharechat, 2001) Sir BrierleyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s firm, Guinness Peat, has not performed nearly was well as his namesake whose yearly performance for 36 years has averaged 23.5%.(Sharechat, 2001) However, Guinness Peat has outperformed the capital markets wherever it has investment interests over the past nine years. When Sir Brierley took over the company in 1991 it totaled Ãƒâ€šÃ‚ £40 million ($60 million) in shareholder funds, a figure that now totals $1 billion. Sir Brierley has an active investor following of approximately 25,000 individuals who have stuck with his strategies almost from the beginning, thus providing the company wi th the clout it needs when the right deal presents itself. Lacking debt Guinness Peat is a sound investment company, further proven by Sir Brierley who takes no salary or feeÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s. Rather, Sir Brierley is the single largest shareholder in Guinness Peat and states that his interests are the same as the other shareholders, thus he strives to achieve gains on their behalf. In the past Guinness Peat tended to sit on its investments, engineering strategy and market changes to steer companies down more profitable paths. This hands on style has been somewhat modified under present circumstances as Sir Brierley has stated that when one notices that the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s strategy is changing Ãƒ ¢Ã¢â€š ¬Ã…â€œÃƒ ¢Ã¢â€š ¬Ã‚ ¦go sell your stock quick.Ãƒ ¢Ã¢â€š ¬Ã‚ (Sharechat,2001) He explains the preceding as protecting his investors and the company in that they minimize the downside, and by having investments spread across a number of industry sectors that Guinness is n ot over positioned in any one deal, thus if they do make a mistake the company will still be in a strong position. The preceding overview of Guinness Peat and Sir Brierley provides an understanding of the corporate philosophy and will be helpful in analyzing the De Vere Group offer. A company, as well as its leaderÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s reputation, is forged in past deals and how they ultimately faired in terms of investor and shareholder results. Prior to the De Vere offer, Guinness Peat reaped a large dose of negative publicity as well as a tarnished public and industry image. The company held a 16% interest in Inchcape, an international automobile dealer in the United Kingdom. The British press called Guinness a Ãƒ ¢Ã¢â€š ¬Ã‹Å"Ãƒ ¢Ã¢â€š ¬Ã‚ ¦troublemakerÃƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ (Sharechat, 2001) when the company made demands that Inchcape be sold off and $343 million returned to shareholders. The furor in the press resulted from Guinness having stakes in other vehicle deale rs, namely Ryland, Perry and Quicks. It was argued that these companies could possibly benefit from the sell off of InchcapeÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s dealerships thus seemingly representing a conflict of interest. Table 6 Guinness Peat Group Plc Holdings 2002 (hemscottinvestment analysis, 2002) Company Sector Holding (%) Market Cap (Ãƒâ€šÃ‚ £) Price (p) Div Yield (%) PE Forecast EPS Growth % Discount To Net Assets (%) Coats Textiles 21.3 356 50.5 6 10 na 43 Dawson Intl. Clothing 29.9 43 42 na 420 na 20 De Vere Hotels 8.3 387 348 3.2 13 6 29 Gowrings Restaurants Car Dealers 11 10 108 4.6 8.5 41 35 Nationwide Accident Car Repair Services 20.7 22 83.5 4.1 14 na 47 Quicks Car Dealer 21 39 96.5 5.2 11 10 20 Ryland Car Dealer 26.3 27 92.5 6 10 na 2 Stylo Clothing Retail 12.6 18 29.5 na 17 na 72 Tops Estates Property 4.7 81 180 2 12 17 54 And the preceding example is not an isolated case. The company is known as a share activist in the United Kingdom by attempting to halt the Deutsche Borse merger (Sharechat, 2001). Although the company has a less than 1% stake in the London Stock Exchange, it flexes its muscles in a manner that exceeds its clout as well as welcome. The British financial circles are well aware of the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s bloody battle with Coats Viyella. GuinnessÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ 12% holding in this company was leveraged to remove the board in favor of individuals more aligned with its thinking. The company also angered the British public by staging three raids on the family owned Young Brewery. Its 7.8% stake was utilized, as in other cases, to force management to either hear and or adopt some of its demands. These actions, while possibly in the interests of GuinnessÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ shareholders, has tarnished the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s reputation and thus tends to set management as we ll as shareholders on their heels when Guinness becomes involved. The Guinness Peat Offer In March of 2004 Guinness Peat made a Ãƒ ¢Ã¢â€š ¬Ã…â€œpartial cash offer to acquire 28.5 million shares of De VereÃƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ (Guinness Peat, 2004) based upon the following reasons as contained in GuinnessÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ Offer document: The cash offer entailed 415 pence per share, which at the time of the offer represented a premium on the stock closing of 22 March 2004 at 408 pence of 1.7%. As a 35% shareholder Guinness indicated that it would seek to utilize a more progressive and dynamic strategy to result in a release of the substantial value it indicated is hidden in the current corporate structure. The company stated that it would seek to accomplish the preceding by selling off the De Vere Hotel Division to yield the highest potential for its value which Guinness believed was occurring at that point in time. That Guinness Peat would oversee the preceding developments through its management. Guinness indicated that in order for the Offer to be successful that: Over 50% of the De Vere shareholders with voting rights need to approve the Offer And that the indicated acceptances would entail a minimum of 28.5 million shares The Guinness Partial Cash Offer stated that in the De Vere 2003 Annual Report that the company set this divisionÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s net asset value at around Ãƒâ€šÃ‚ £552 million. Guinness indicated that this figure included the liabilities of the De Vere Group headquarters which stood at Ãƒâ€šÃ‚ £26.2 million. Guinness indicated that this accounting methodology masked the asset value of the hotel group and represented an asset that could be sold off with the proceeds returned to shareholders. Guinness indicated in its Offer that the De Vere Hotel division was actually worth more as a private business in that the average price fetched by sale is 10.1 times the EV/EBITDA, as opposed to the market valuation of 8.7. The Offer also indicated that De Vere had under performed, in terms of share price appreciation, the hotel and leisure industry segment and that managementÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s strategies were not yielding maximum return on fixed assets. De Vere did not respond to the pre ceding Offer thus prompting Guinness Peat to extend a Ãƒ ¢Ã¢â€š ¬Ã…â€œFinal Partial Cash Offer to acquire 28.5 million shares of De Vere Group PlcÃƒ ¢Ã¢â€š ¬Ã‚ on 8 June 2004. (Guinness Peat, 2004) This Ãƒ ¢Ã¢â€š ¬Ã…â€œFinal Partial OfferÃƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ stated that: (Guinness Peat, 2004) De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s Board record of maximizing shareholder value has not been borne out by its record. The De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s Board has not disclosed a proper valuation of the De Vere Hotel division free of outside debt. The De Vere Hotel division has been seriously undervalued in terms of share price and that the present Board has not implemented corrective actions to address this shortcoming. And finally, that the De Vere Board refuses to address maximizing value for shareholders. This Ãƒ ¢Ã¢â€š ¬Ã…â€œFinal Partial OfferÃƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ recommended the following corrective measures as the plan to correct the foregoing: (Guinness Peat, 2004) Dispose of the De Vere Hotel division at a price in excess of Ãƒâ€šÃ‚ £550 million (before transaction costs), to avail the company (De Vere) of the present low interest rate which would help to structure such a sale, to return a substantial portion of the proceeds from such a sale (De Vere Hotel division), to the company shareholders, to ensure that in the future the De Vere Board utilizes a shareholder beneficial approach to operations. Throughout the Partial Cash OfferÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s extended by Guinness Peat, the same issue was tackled, a sell off of the De Vere Hotels division which has been under reported as a result of the companys headquarters debt being assigned in that segment of the financial reports. Guinness stressed in its Final Partial Offer that it was not seeking control of De Vere, simply to release undervalued assets to the benefit of shareholders through clear fiscal reporting and advantages for sale that exist in the present market. Guinness increased its share price offer to 430 pence which represented a premium of 5.4% over the 22 March 2004 closing price of 408 pence. The Final Partial Cash Offer was also rejected by De Vere shareholders as just 0.55% replied to the affirmative. 2.3.4 Guinness Peat Offer Analysis GPGÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s (Guinness Peat) Partial Cash Offer was based on its interpretation of De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s financial reports that indicated the De Vere Group h eadquarters debt of Ãƒâ€šÃ‚ £26.2 million is why the DivisionÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s asset valuation for its hotels was only Ãƒâ€šÃ‚ £550 million. Guinness proposed shifting this debt thus freeing up the conditions for sale in a post recession market where the potential bidding for these premium properties would be driven to their true market value. The other assumptions utilized by Guinness Peat in proceeding with such an offer entailed their analysis that competitor firms would be eager to both rid themselves of De Vere in their competitive sector, but also strengthen their own positions through the acquisition of premium performing properties. Guinness PeatÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s Partial Cash Offer did not address the manner in which the Ãƒâ€šÃ‚ £26.2 million in headquarters debt will be structured, as well as the fact that this debt would represent a burden on the remaining performing divisions as the percentage of debt to revenues would increase dramatically. Said change in the debt to earnings ratios would drive De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s stock downwards under the reduced divisional format and further limit the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s ability to fund acquisitions for existing divisions or new opportunities. The Guinness Partial Cash Offer also failed to address that the sell off of De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s flagship brand name would erode the prestige of its remaining brands thus resulting in a further deterioration of their brand image and how this would impact upon the remaining divisionÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s ability to compete in a market which the company itself would have made stronger via a sale to key competitors. The Guinness Peat Partial Cash Offer also contained some striking advantages for GPG in that it would be able to gain control over this segment of De VereÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s assets and the dispensing of the sale proceeds thus regaining its Offer price plus profit in a relatively short span of time. The preceding, when coupled with the neg ative publicity that Guinness received in the British press for its handling of the Inchcape automotive dealership, Deutsche Borse merger with the London Stock Exchange, Coast Viyella boardroom blood bath and the three attacks on Young Brewery, created a climate of distrust on the ultimate motives of GPG. Guinness PeatÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s actions of 2004 could be gleaned from earlier resolutions to the De Vere Board in 11 January of 2001 when the company held its 10 percent stake. The following resolution was submitted to De Vere by Blake Nixon, the United Kingdom Executive Director for Guinness Peat. It proposed the following to be addressed at the upcoming annual meeting: (GPG, 2001) The return of up to Ãƒâ€šÃ‚ £50 million to shareholders via an off market tender offer for a total of up to 15% of the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s issued capital at a price limit of Ãƒâ€šÃ‚ £3.00 a share, To spin off Village Leisure and Greens as a separate public company, Nixon stated that the Board of De Vere had not done enough to maximize share value. Ultimately, Guinness PeatÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s Partial Cash Offer did not impress De Vere shareholders in terms of its proposition or its share price offer. Further, the preceding broad operating and financial considerations were not addressed and presented a concern to those investors who had or would not have recovered their initial share price investments from the sale distribution plan offered by Guinness Peat. As indicated, the remaining entity would be a substantially reduced company and the debt to earnings ratio would further dilute the market share price. This end result would have provided De Vere shareholders with an immediate cash compensation, but left them with a weakened company in a strengthening market. Guinness PeatÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s Partial Cash Offer did not specify the distribution terms and leaves one to think that based upon past history that GPG would recoup all of its initial investment in De Vere as well as reap the proportionate share of cash from the De Vere Hotel division sale for a handsome profit. The short-term benefit of this proposal did not appeal to the majority of De Vere shareholders for these as well as other reasons. Chapter 3 Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬Å" Literature Review Stakeholders Rahman and Jorg (2003) state that the Ãƒ ¢Ã¢â€š ¬Ã…â€œÃƒ ¢Ã¢â€š ¬Ã‚ ¦importance of the relationshipsÃƒ ¢Ã¢â€š ¬Ã‚ ¦companies have with stakeholdersÃƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ go beyond the historical understanding of this term. They bring into the stakeholder / company relationship the viewpoint that it is more than monetary, it also entails trust and a commitment to objectives that best serve the interest of the company and therefore its stakeholders as well. The word itself, stakeholder, was first utilized by Marion Doscher (Stewart et al, 1963) as described in a report to business subscribers. Since that time, the concept of a companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s stakeholders has evolved and become defined to mean those individuals and groups which the company has Ãƒ ¢Ã¢â€š ¬Ã…â€œÃƒ ¢Ã¢â€š ¬Ã‚ ¦unfair non-contractual effects.Ãƒ ¢Ã¢â€š ¬Ã‚ (Kelly et al,1997) British Prime Minister Tony Blair said that Ãƒ ¢Ã¢â€š ¬Ã…â€œWe need to build a relationship of trust not just within a firm but within societyÃƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ (Blair, 1996). TodayÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s understanding of stakeholders focuses on the relationship that companies have with this group. Rather than viewed as individuals and or groups to be managed, todayÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s corporate thinking see them as a Ãƒ ¢Ã¢â€š ¬Ã…â€œÃƒ ¢Ã¢â€š ¬Ã‚ ¦network-based, relational and process-oriented view of company / stakeholder engagementÃƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ (Rahman et al, 2003) Rahman and Jorg (2003) further expand upon the preceding by stating that the modern day relationship between the company and its stakeholders, is based upon Ãƒ ¢Ã¢â€š ¬Ã…â€œÃƒ ¢Ã¢â€š ¬Ã‚ ¦ mutuality, interdependence and power.Ãƒ ¢Ã¢â€š ¬Ã‚ (Rahman et al, 2003) The competitive nature of todayÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s business environment has created a climate whereby corporations operate in multiple countries, thus making their actions, performance and behaviors visible to broad groups of individuals and institutions. Will iamson (1993) indicated that trust in business is actually a matter of calculation, based upon self-interest as well as consideration for others, as well as oneÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s own reputation. Rahman et al (2003) bring up the point that operating a company in the interest of stakeholders can be inviting trouble as differing groups compete for control and thus there would not be a clear indication of which group has priority. In the instance of the Guinness Peat Ãƒ ¢Ã¢â€š ¬Ã‹Å"Partial Cash OfferÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢, Sternberg (1994) argues that operating a company in this manner Ãƒ ¢Ã¢â€š ¬Ã…â€œÃƒ ¢Ã¢â€š ¬Ã‚ ¦provides no guidanceÃƒ ¢Ã¢â€š ¬Ã‚ ¦as to how competing interests are to be ranked or reconciledÃƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ (Sternberg, 1994) And while the word Ãƒ ¢Ã¢â€š ¬Ã‹Å"stakeholdersÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ refers to anyone that has a stake in the well being of a company, in the context of the Guinness Peat Offer for De Vere, what one is really referring to are shareholders, a s stakeholders do not identify those who actually put up funds for their Ãƒ ¢Ã¢â€š ¬Ã‹Å"stakeÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ in the companyÃƒ ¢Ã¢â€š ¬Ã¢â€ž ¢s operations (Dunlap, 1996). Thus, in the context of this paper, stakeholders is a term that reminds business managers to be mindful of those groups and individuals who have a financial stake in the corporation. The preceding also means that those suppliers, employees and non-financial stakeholders also need to be considered in the context of business decisions and how these groups and individual will be affected by business decisions as well. (Rahman et al, 2003) Corporate Governance Shleifer and Vishny (1997) provide some clarity concerning what is corporate governance as they define it as Ãƒ ¢Ã¢â€š ¬Ã…â€œÃƒ ¢Ã¢â€š ¬Ã‚ ¦the ways in which suppliers of finance to corporations assure themselves of getting a return on their investmentÃƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ (Shleifer et al, 1997). Rahman and Jorg (2003) state that corporate governance concerns itself with holding a balance between social and economic goals as well as between communal and individual goals. The framework (corporate governance) encourages the efficient use of resources and also requires the managing of these resources. Bavly (1999) furthers the preceding by stating that Ãƒ ¢Ã¢â€š ¬Ã…â€œJust as every social structure has its own accountability system, in the classic market economy a company is held responsible in the marketplace.Ãƒ ¢Ã¢â€š ¬Ã‚ (Bavly, 1999) He goes on to add that one of the obligations of corporate governance is providing information to enable the shareholders of a company to un derstand how the capital they have invested is and has been put to use, as well as the financial standing of the company in terms of these resources. Carriere et al, (2002) poi

Thursday, December 19, 2019

Gang s And Management Challenges Facing Corrections Essay

Gang s in the Correctional Setting There are many supervisory and management challenges facing corrections, due to the proliferation of the gang problem, presently within our prisons today. It is critically important for upper management, in the correctional field, to be held as responsible stewards, of the all resources available to them to combat this problem. (Saint Leo University, 2016). These actions are necessary, to deter the increasing glut of criminal activities, which gang behavior inevitably brings to prisons like a spreading cancer in the system. The gang problem is a dominate force within the correctional system, and steps to minimize its impact upon the daily lives of both prisoners and staff alike must be continually addressed. Swanson and Taylor touched on this trend in the correctional setting, when they discussed that much of this problem is contributable due to the boom in worldwide communication, resulting from the use of newer technology. This form of contraband, is in the form of cellphones, smar tphones, and their subsequent ability for the inmate to control gang enterprises by tapping into the internet. Increased technology results in smaller sizes of smartphones each year, and this outside benefit makes detection increasingly more difficult for officers within prison who utilize more of a community policing model to curtail criminal actions (Swanson, C., Territo, L., Taylor, R, 2012). Strategies and Policies on Gangs Numerous strategies orShow MoreRelatedLeading Group Challenges1610 Words Ã‚ |Ã‚ 7 PagesLeading Group Challenges * Police, courts and corrections are part of criminal justice organizations. Each of these organizations face challenges every day and the leaders of these agencies must deal with these challenges (Duelin, 2010). The types of criminal justice leaders range from police chiefs and sheriffs to prison superintendents, and heads of government, state, or local task forces. 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Wednesday, December 11, 2019

Method to Detect and Mitigate Data Breach in Mobile Devices - Samples

Question: Discuss about the Method to Detect and Mitigate Data Breach in Mobile Devices. Answer: Introduction The detection and mitigation of data breaches in mobile devices is not an easy task. Some advanced tools and techniques are required to use to get rid of this problem. However, before start discussion about mitigation of data breaches, it is important to discuss about commonly encountered data breaches by users and how they put impact on their mobile devices. After analysis, some essential data breaches are found related to mobile devices such as Spyware, Mobile Botnets, Ad and Click Fraud, Dead Apps and IoT Malware. In next segments of this report I would like to focus on these data violations in detail and also highlight methods to resolve this problem with literature reviews (Hamblen, 2017). Common Data Breaches in Mobile Devices Following is detail discussion about data frauds in mobile devices: Spyware It is one of the vulnerable data breaches in mobile devices. Spyware software is used by hackers to access corporate network, databases and computer systems. Moreover, it is also used to find out ways to infect mobile devices. It is found by experts that this software can be operated both on iOS and Android devices. Pegasus is a common example of spyware that is used by cyber-criminals to hack iPhone or iPad for harvesting data (Doug Olenick et al., 2017). Mobile Botnets Today, new malware has potential to convert hosts of mobile devices into botnet which is controlled by hackers and owner of mobile device does not have any knowledge about this. This is really dangerous that without any notice of mobile user his or her data is stolen by hackers. According to analysis it is found that the first target of botnets was Android devices (Porter, 2012). At that time, hackers used proxy IP addresses to mask ad-clicks and to generate revenue from those clicks. After this data breach of botnets, some other data breaches were also found such as Hummingbad that infected more than 10 million Android based operating systems. Under this attack, users detail was obtained without knowledge of them and sold to others. Ad and Click Fraud It is also a harmful type of data frauds that is conducted in mobile devices and as well as on other devices. This fraud has become a matter of concern for every user because heavy losses are encountered due to this vulnerable attack. It is a way to get internal access of network of an organization by hackers. By doing this, attackers send SMS phish to mobile users with a link and document attachment, when user clicks on link then a malicious app automatically download into his mobile that can damage boot files and database resides into that device. Moreover, it is also possible that attackers can access hold of mobile device without authorization and can steal login credentials (Leitner, 2017). Dead Apps Dead Apps in mobile devices have also become a main concern of data frauds. It is necessary for users of mobile devices to update and monitor their mobile apps regularly. If those are apps are no longer supported by Google or Apple stores then delete them. Hackers take advantage of dead apps to harm your devices in any potential way. That is why supporter companies of these devices do not explore list of apps that further require no updates because hackers will try to misuse these apps. Therefore, it will be better that users keep themselves aware about these concerns. IoT Malware IoT malware data breach is related to Internet of Things. There are many packages of IoT malware have come into market that are putting influence on mobile devices. Indeed, IoT is connection of smartphones and other telecommunication devices. That is why it is for hackers to use IoT malware to attack on mobile devices to fulfill their hacking purposes (The ChannelPro Network, 2017). Therefore, above discussed ways are highly vulnerable that are used by cyber-attackers to implement data breaching in mobile devices. After this whole discussion, it is cleared that detection tools of breaching must be used properly both at developers and users basis. Before moving forward towards discussion of these methods, literature review is required to assess regarding prevention of mobile devices from data breaches. Literature Review about Mitigate Data Breaches in Mobile Devices According to analysis, it is found that some researchers prefer to implement information security strategy to get rid of this problem of data breaches in mobile devices. This security strategy will help to utilize mobile devices in a secure way by providing awareness to users that what kind of tools must be used to get rid of problem of data breaches and how mobile can keep secure from unknown virus attacks (Wang, 2005). According to Ernust and Young (2012), with the advancement of technologies, risks of its security and privacy are also increasing day by day. Therefore, without a proper planning and strategy, the detection and prevention is not possible. Information security strategy helps to reduce all threats regarding security and privacy of data. The established IS strategies consists of prevention, detection, response and compartmentalization and deception (Sveen, 2009). The prevention is the most common security strategy for protecting information assets from virus attacks. He re firewall is the best example of prevention which is in-built in operating systems for protecting computer systems and mobile devices from external attacks (Ahmad et. al. 2012). Next essential strategy of information security is detection and its aim is to identify malicious behavior of intrusion or attacks on data. Here IDS i.e. Intrusion Detection Systems are highly preferred to use by security experts. These systems allow users to perform continuous scan of their devices to detect security irregularities (Cavusoglu et al. 2005). Response strategy is one of the effective IS strategies. According to Ahmad (2012), after detecting an attack, this strategy provides guidance to users regarding implementation of appropriate security countermeasures (The ChannelPro Network, 2017). Both detection and response strategies are corresponding to each other because without response there is no meaning of detection. Most of the response strategies mostly refer to recovery and reaction. Further more, isolation strategy also plays an important role in detection and mitigation of data breaches. The main of aim of isolation is to trap intruders in a controlled zone of network of mobile devices to assess their actions. This strategy is basically known as deception strategy (Hu et al. 2011). From above discussion it is cleared that how information security strategy can be helpful to maintain security against data breaches in mobile devices and as well as on other computer systems. That is why it will be better for users of mobile devices to focus on proper implementation of these strategies to control issues of data frauds. Further, I would like to discuss some commonly used detection and mitigation methods of data breaches. Besides these security strategies, these methods are easy to use (Rouse, 2017). Methods for detection of Data Breaches in Mobile Devices First essential method of detection and mitigation of data breaches is usage of anti-virus. Anti-virus software is easily available online and can be downloaded into mobile devices. Anti-virus software solution has potential to detect and mitigate malware from devices with one click. After configuration of this software, antivirus starts scan of whole system, detects bugs and gives alert messages to users about fixing of bugs. But it is necessary for user to get advanced and powerful antivirus that can properly perform this action (Wood, 2012). Next essential method for mitigation of data breaches is use of encryption methods. If networks of mobile devices will be encrypted then it will be difficult for hackers to hack data from these networks that is sent and received by mobile users. This technique of encryption and decryption is known as cryptography (Cheng, Liu and Yao, 2017). It is a protected technique to resolve problem of data breaches and there is requirement to use a decryption key to decrypt the data which is not easily accessible to users. Furthermore, software updates or patches are also preferred to use for detection and mitigation of data threats. An operating system without security patches and updates is considered weak and hackers can easily control devices of users and can access information from databases. Before, implementing security patches, it is necessary to know that security patches take time to implement then it is necessary to get guidance from senior experts. Besides these above discussed methods, regular updates of software that are installed on mobile devices, are also required. These updates increase level of security in mobile devices by making it more powerful against vulnerable attacks. It is responsibility of users to be aware about these regular updates. Next important method for detection and mitigation of data breaches in mobile devices is to provide proper knowledge to users about technicality and security standards about mobile devices. By doing this, users will be aware about major attack s and will make their system more secure. Moreover, by knowing about security standards, users will measure security and privacy of their devices and if any problem will occur then they can make use tools and techniques properly. In this way, by using above discussed software solutions, mitigation and detection of data frauds both can be done easily. While using all these methods, users should have proper knowledge about its implementation, otherwise they can take help of professionals. Besides this, developers should be aware about new type of data breaches, virus attacks and should develop advanced tools and techniques to resolve this problem (Anderson, 2017). Conclusion To sum up, I can say that today data breaches are getting advanced and to get protection from these attacks better tools and techniques are necessary to use. Therefore, it will be better for users to be aware about these problems and try to get better prevention by using above discussed information security strategies and methods. Not only mobile devices but also other devices should be protected by using these detection and mitigation tools. References Ahmad, A., Maynard, S. B., and Park, S. 2012. "Information security strategies: Towards an organizational multi-strategy perspective," Journal of Intelligent Manufacturing), pp 1-14. Hu, Q., Xu, Z., Dinev, T., and Ling, H. 2011. "Does deterrence work in reducing information security policy abuse by employees?," Communications of the ACM(54:6), pp 54-60. Wang, G. (2005). "Strategies and Influence for Information Security," Information Systems Control Journal (1). Wood, A. (2012). "BYOD: The Pros and Cons for End Users and the Business," Credit Control (33:7/8) 12//, p 68. Cheng, L., Liu, F. and Yao, D. (2017). Enterprise data breach: causes, challenges, prevention, and future directions. Rouse. (2017). Avoiding data breaches through mobile encryption. [online] Available at: https://searchmobilecomputing.techtarget.com/tip/Avoiding-data-breaches-through-mobile-encryption [Accessed 18 Nov. 2017]. Leitner, S. (2017). Preventing Data Breaches with Mobile Device Security. [online] Blog.goptg.com. Available at: https://blog.goptg.com/blog/2015/09/03/preventing-data-breaches-with-mobile-device-security [Accessed 18 Nov. 2017]. Doug Olenick, O., Masters, G., Report, S. and Abel, R. (2017). Lost devices leading cause of data breaches, report. [online] SC Media US. Available at: https://www.scmagazine.com/lost-devices-leading-cause-of-data-breaches-report/article/530198/ [Accessed 18 Nov. 2017]. The ChannelPro Network. (2017). Mobile Device Security: Startling Statistics on Data Loss and Data Breaches. [online] Available at: https://www.channelpronetwork.com/article/mobile-device-security-startling-statistics-data-loss-and-data-breaches [Accessed 18 Nov. 2017]. Porter, M. E. (2012). "WHAT IS STRATEGY?," Harvard Business School Publication Corp., pp. 156-157. Sveen, F. O., Torres, J. M., and Sarriegi, J. M. (2009). "Blind information security strategy," International Journal of Critical Infrastructure Protection (2:3), pp 95-109. The ChannelPro Network. (2017). Mobile Device Security: Startling Statistics on Data Loss and Data Breaches. [online] Available at: https://www.channelpronetwork.com/article/mobile-device-security-startling-statistics-data-loss-and-data-breaches [Accessed 18 Nov. 2017]. Hamblen, M. (2017). One-fifth of IT pros say their companies had mobile data breach. [online] Computerworld. Available at: https://www.computerworld.com/article/3048799/mobile-wireless/one-fifth-of-it-pros-say-their-companies-had-mobile-data-breach.html [Accessed 18 Nov. 2017]. Kroll.com. (2017). Data Breach Prevention Tips - Data Security Best Practices | Kroll. [online] Available at: https://www.kroll.com/en-us/what-we-do/cyber-security/prepare-and-prevent/cyber-risk-assessments/data-breach-prevention-tips [Accessed 18 Nov. 2017]. Anderson, R. Year.(2017). "Why information security is hard-an economic perspective," Computer Security Applications Conference, 2001. ACSAC 2001. Proceedings 17th Annual, IEEE2001, pp. 358-365.

Tuesday, December 3, 2019

Role of Sexual Politics in Louise Mallards Possession of Self Assertion Essay Example

Role of Sexual Politics in Louise Mallards Possession of Self Assertion Paper Louise Mallard, Kate Chopping The Story Question: Discuss the role of sexual politics in Louise mallards possession of self assertion. Answer: Kate Chopin is a very famous American writer of the nineteenth century. She was an independent woman who did not confine to the socio-political bonds of the society. Chopping short story The Story of an Hour published in 1894 is about a woman who receives the news of the death of her husband and the sense of freedom that she experiences after his death. The protagonist of the story The Story of an Hour, We will write a custom essay sample on Role of Sexual Politics in Louise Mallards Possession of Self Assertion specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Role of Sexual Politics in Louise Mallards Possession of Self Assertion specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Role of Sexual Politics in Louise Mallards Possession of Self Assertion specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Louise Mallard is suffering from heart trouble when she gets to know that her husband has died in a rail accident. She experiences turmoil of emotions as she becomes familiar with the idea that there will not be anyone who will control her life from now. Her feelings changes from the storm of grief to the monstrous JOY that she feels as she realizes she is an independent woman from now on, and she herself would be responsible for her life and the only person she would live for now would be only herself and no one else. Lawrence l. Bereave in his essay, Fatal Self- Assertion in Kate Chopping The Story of an HOLE says that Louise is an immature, egoistic and a victim of her own self assertion. He says that the reason why Louise experiences the Joy is because she would finally be able to live for herself and have her independent identity. Since she was not suffering from a bad married life, so according to him, there is no gender politics involved in the self assertion of Louses identity. He says that the story is not about marriage or society but only about Louise Mallard and her identity crisis. The argument that Bereave gives in his essay is a title incomplete, saying that Louise was suffering only from an identity crisis would be wrong to say since the whole idea that she needs self assertion tells us that she was going through self effacement in her married life, and this forces us to ask why was she going through this effacement in her life; is it only because of her own self or is there something more to it like the social and marital bonds, and was she happy in her married life, or her husband dominated her in such a way that is became practically impossible for her to live as an independent individual. Saying that it was only her own identity crisis would actually make us neglect all these possibilities of her monstrous JOY. The point that is very much evident with the close reading of the text is that, Louise Mallard is a subject to the masculine discourse of the story. She is introduced as Mrs Mallard and referred to as she for most of the narrative, only once is she called by her own name and that too by her sister, Josephine. As she sits in her room and drinks the very elixir of life, she experiences a new life coming into her, and she realizes that she has now no one who would control her. She was not ouch upset cause of her husbands death but she was actually looking forward to what lies ahead of her. All this shows that she is defined as a selfless woman who is attached or rather affiliated to Presently Mallard as his wife, someone who does not have her own social status and who surely lacks self identity. This feminist reading of the text shows to us the reasons of her facing self effacement in her married life and hence her need for self assertion. It can also be argued that Louise lack of self was just her own issue and the social norms or her marital life did not play a role in it. N only happen when she knows that her identity is at stake because she must have had experienced individuality before her marriage, this probably means that she was satisfied with herself before her marriage and she knew what it is be like an independent woman, but after her marriage this disappeared and she lost the control of herself. Also the whole idea that she starts her self-asse rtion and the possession of herself only after the death of her husband tells us that she was in a way not satisfied with her marriage life and the whole crisis of her lack of identity is because of her husband and her marred life. It very clearly shows us that Presently death gives her a glimpse of a new life that she was always looking for also gives us a reason to think that she was not being able to be herself in the discourse of her married life. We are thus getting closer to the view that the sexual politics of her husband played a dominant role Louses self assertion, but to say that she was facing self crisis only because of her household would be wrong to say. That would suggest that Louise was having a bad married life and that Mr Mallard was not a loving husband. The story in fact states the opposite, it clearly says that Mr Mallard was a gentle and kind husband who loved her truly and it also says that even she loved him. It again forces us to ask the question that if her married life is so perfect then why she feels Joy after the death of her husband. Thus the whole issue of identity crisis becomes problematic because it is not only because of her own self but it is also related with her familial bounds. Maybe Chopin is suggesting that all marriages, even the kindest ones, are inherently oppressive. Louise, who readily admits that her husband was kind and loving, nonetheless feels Joy when she lives that he has died, probably because she was oppressed by her husband. We can thus see that the sexual politics plays an important role in Louses experience of the monstrous JOY, but there lies an internal irony in the text, from her emotions to her self-assertion, the reasons are ambiguous. But it would be incorrect to say that her identity crisis is only because of herself. The self assertion and the urge to be independent is intermingled with the sexual politics that she faced in her marriage life, because had they been separate, she would not wait for her husbands death to assert herself. Had Mr Mallard been an understanding husband, he would have understood that she is an independent woman who needs not to be controlled by anyone else and hence she would be feeling Joy after his death. Thus, we can see that Louise Mallard sufferings and the need for self assertion was not only because of her identity crisis but also because of the gender politics that she was facing in her married life. Chopin makes her an independent woman who was oppressed by the social bonds and wanted to break free from them. Louise comes out to be a self searching woman who wants to find her individuality, which her married life is meow not allowing her to do. No doubt she was in search of a self, and she wanted to be independent but that doesnt completely means that she was dissatisfied with her married life. She wanted to be known Louise, an independent woman, and not as someones wife and that is probably the reason why she felt that she had a possession of herself after her husbands death, and not because of her bad marriage life. Hence, the reason why she was experiencing happiness after the death of her husband is mainly that she would be able to be herself finally, that she

Wednesday, November 27, 2019

The KPCs Management Style

Introduction According to Christiansen (2003), effective management of organizations forms a basis for successful achievement of the set goals and objectives. Certainly, managers in these organizations are entrusted with various roles to enhance coherent implementation of the organizationsÃ¢â‚¬â„¢ development projects.Advertising We will write a custom essay sample on The KPCÃ¢â‚¬â„¢s Management Style specifically for you for only $16.05 $11/page Learn More As evidenced by Finch (2010), the roles of a manager are categorized into interpersonal, informational and decisional roles. Each of these categories has specific roles expected in managers to enhance coherent management of various processes within the organizations they manage. This paper discusses the roles of managers in organizations, with respect to the KPCÃ¢â‚¬â„¢s management style. In the interpersonal category, managers in social organizations should act as figureheads in such organizations. I n this case, managers should be able to perform various custom tasks of both legal and social categories. As suggested by Christiansen (2003), manager should able ensure the installation of law and order in the organizationÃ¢â‚¬â„¢s activities. As it was observed in KPC agency, its legal incompatibility posed many problems in its effective management of its various operations. Being incompatible with Higher Petroleum Council and the Ministry of Oil laws, KPC agency was unable to manage various strategic activities. Particularly, Leistner (2010) considers efficiency of managers as being facilitated by their compliance to the existing regulations and social norms within their organization. In the informational category, managers are held responsible for receiving and transmitting information within their organizations. More specifically, Finch (2010) considers the role of a manager in an organization as being to link the external environment to the internal organization in terms of in formation. In this case, all policies or actions required in the organization should be coordinated by the manager. More specifically Christiansen (2003) considers the manager as an information expert for his/her organization. As it was observed in KPCÃ¢â‚¬â„¢s case, the managers seemed uninformed and avoiding to take responsibilities of linking the company to the external environment. As a result, no significant development plans were made within the government agency, resulting into its high inefficiency, as the organization remained isolated from the external environment largely. In the decisional category, managers are required to be entrepreneurial by being able to allocate and supervise resources utilization efficiently. This forms an important part of managersÃ¢â‚¬â„¢ role, as it entails making of decisions for strategic development of the organizations they manage. In this case the manager should not make narrowed decisions without consulting his or her junior officials.Adve rtising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More As it was observed in KPA, the top administrators were avoiding making decisions with fear of being accountable of the outcome of the decisions they make. Further, the administrators in KPC agency were unable to plan for the organizationÃ¢â‚¬â„¢s utilization of its resources. Particularly, the lack of proper planning in this agency resulted into its losing various opportunities capable of enhancing its prosperity. As Bungay (2010) reports it is the absolute role of a manager in a social organization to lead the entire management fraternity in strategic decision making. Conclusion Generally, managers in social organizations are eligible to supervision of the overall utilization of the organizationÃ¢â‚¬â„¢s resources. More so, managers should figureheads for the organizations they manage to ensure legal and social issues are effectively addressed i n the organizations. Further, managers should be entrepreneurial in nature to ensure effective allocation of resources through strategic decision making. Marginalized decision making or failure to plan strategically results into inability to achieve the organizationsÃ¢â‚¬â„¢ overall goals and objectives, as evidenced in the KPC agency. References Bungay, S. (2010). The Art of Action: How Leaders Close the Gaps between Plans,Ã‚ Gaps and Results. Washington, DC: NB Publishing. Christiansen, J. (2003). Building the Innovative Organization: Management Skills thatÃ‚ Encourage Innovation. New Jersey: Palgrave McMillan. Finch, B. (2010). Effective Management Skills. New York: Wordsworth Publishers.Advertising We will write a custom essay sample on The KPCÃ¢â‚¬â„¢s Management Style specifically for you for only $16.05 $11/page Learn More Leistner, F. (2010). Managers at Work: Roles and Responsibilities. Chicago: John Wiley Sons, Inc. This essay on The KPCÃ¢â‚¬â„¢s Management Style was written and submitted by user Graysen Floyd to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Sunday, November 24, 2019

Founding Brothers Paper essays

Founding Brothers Paper essays Founding Brothers by Joseph J. Ellis Published by Alfred A. Knopf, a division of Random House, Inc., New York, in 2000 There have been many key and important events in our nations history, and many people who have contributed to the growth and development of this country. Though many have played a significant role in our countrys history, out of all the events and people, one group or generation allowed all that followed to take place, and is one of the most important components in our American history, our Founding Fathers. The novel Founding Brothers discusses the major events and interactions of these Founding Brothers. The most famous duel in American history and the focus of the beginning chapter of the novel was the Hamilton Burr duel. Burr challenged Hamilton to a duel after the two had quarreled for some time. Both participants of the duel died in New Jersey in 1804 on July 11th. I found this event interesting not because of its importance of a historical nature, but because it was interesting to think that two very well known men with political careers would duel to the death over a feud. The times were obviously very different back then; to think that if two people in politics today had a duel over a fight of words is outlandish. I found it interesting to see how these men interacted and to see their personalities, as I had never seen them as characters but only historical figures. Another significant event was the dinner that Jefferson hosted invited Hamilton and Madison. The dinner at Jeffersons was to be a place of negotiation between Hamilton and Madison over Hamiltons program, which dealt with the national and states debt. Madison agreed to allow Hamiltons program to pass and got Hamilton to see to getting the nations capital in Virginia. After this dinner Madison reevaluated Hamiltons plan and once again ...

Thursday, November 21, 2019

Budget Management Analysis Research Paper Example | Topics and Well Written Essays - 1500 words

Budget Management Analysis - Research Paper Example Thirdly, the research paper will state the primary stakeholders of the hospital and their views towards redesigning of the facility and its associated budget. In the last section, the research paper will state the risks involved in pursuing the redesigning of the facility and the risks of not redesigning the hospital. Facility redesign According to the studies conducted by Sawyer (2009), facility is the space whereby employees of an organization carry out their respective duties while design refers to the layout or the architecture of the mentioned space. Sawyer (2009) further stated that facilityÃ¢â‚¬â„¢s design is an integral component of the operations of an organization because it determines the results of the production process and it goes a long way in meeting employeesÃ¢â‚¬â„¢ needs. Designing of a facility is usually aimed at ensuring that there is smooth flow of information, and work material within an organizationÃ¢â‚¬â„¢s space to enable operations to proceed smoothly. Saw yer (2009) stated that a good design of a facility is usually able to integrate employeesÃ¢â‚¬â„¢ needs, work materials, as well as machinery in a single and effective system. The designing and redesigning of a hospital facility usually takes into consideration various factors such as safety within the facility, the ease of movement and communication, space utilization, material handling, and the impact on employeesÃ¢â‚¬â„¢ satisfaction and morale. ... he estimated budget for redesigning the facility is presented in the table below: Item Estimated cost($) ArchitectureÃ¢â‚¬â„¢s fee 1500 ConstructorÃ¢â‚¬â„¢s fee 2000 Construction materials 3000 Purchase of new items 4000 Total 10,500 It is assumed that the facility to be redesigned is the general ward that holds patients with less severe medical cases and therefore the facility does not entail numerous complexities. Moreover, the nursesÃ¢â‚¬â„¢ lounge is also located in this general ward. The construction fee is only $2000 and it includes the cost of labor. The amount is considerable small because the work involved will be less, as it will just involve a makeover. The hospital will separately purchase the construction materials listed by the constructor in order to avoid an excess or exaggerated budget arising from the inflated prices by the constructor. The materials will include things such as paints, timber, nails, pipes, cables, and cement, among others. Redesigning the facility will also involve putting in place new items that support the new design, and hence the $4000 budget, which will cover for items such as curtains, beddings that match with the new wall paintings. Other items that will be purchased include new computers, furniture, and communication systems that will be installed at the nursesÃ¢â‚¬â„¢ lounge. The total budget for the entire project will be $10,500, which is a considerable amount but it is likely to give the hospital good returns on their investment. Management goals that will be supported by the expenditure It is of essence to note that the redesigning of the facility was implemented because of a management decision that was earlier made. Therefore, redesigning of the facility supports certain management goals that also have an impact of the financial

Wednesday, November 20, 2019

Paraphrase Essay Example | Topics and Well Written Essays - 500 words - 7

Paraphrase - Essay Example This extends sources of the practitionersÃ¢â‚¬â„¢ knowledge to available historical data through existing publications (Hoffmann, Bennett and De Mar, 2010; Akobeng, 2005). Systematic review is also important to knowledge development for new research. Its analytical approach that plays the same role as formal literature review allows researchers to consolidate existing knowledge on a subject and to identify knowledge gaps for possible new studies. The reviews, with this respect, contribute to new research through informing research objectives, research questions, and research hypotheses. In addition, results of systematic reviews identify theories from related research that can be used in proposed or future studies. Effects of the reviews also extend to influence on research methodologies of new studies through elements such as selection of research methods and design, sampling strategy, and data collection strategy and tools. Ability of systematic reviews to identify weaknesses of pr evious studies also offer a basis for corrective measures and therefore helps to resolve such problems like bias in studies (Booth, Rees and Beecroft, 2010). Data extraction is a process by which data is collected from their sources and is organized into desired form for presentation to the audience. Examples of forms in which extracted data can be communicated are tables and graphs that facilitate understanding. Data extraction is a fundamental process in systematic reviews and helps in identification of elements of a research such as a studyÃ¢â‚¬â„¢s methods and design, sample and population, and applied treatment and mode of application. The process of data extraction is however largely subjective to a researcherÃ¢â‚¬â„¢s interest and opinion and therefore susceptible to bias (Cochrane Handbook, 2011; Petticrew & Roberts, 2006). Summary of studiesÃ¢â‚¬â„¢ findings is important to any form of analysis and

Sunday, November 17, 2019

Euthanasia Essay Example | Topics and Well Written Essays - 1500 words - 5

Euthanasia - Essay Example This paper analyses, critically, the arguments for and against Euthanasia. In the conclusion, I have given a personal opinion on my view of Euthanasia. The following are the main pros and cons of Euthanasia. One of the main arguments advanced in support of Euthanasia is the argument that Euthanasia is a morally right action because human beings have a right to self-determination, and for that reason, they should be allowed to choose their own fate (ProCon.org, n.d.). The proponents of Euthanasia contend that since human beings have the right to self-determination, denying euthanasia to the terminally sick patients who need and request for it is immoral and a violation of their right to self-determination. In law the issue of self-determination in regard to Euthanasia is a controversial issue, especially in the United States. Various courts in the United States have interpreted this issue differently. The following case demonstrates how the issue of self-determination in the United States constitution is a controversial issue. Year 1975, the 21 year old Karen Ann Quinlan was admitted in a hospital in a comma. The doctors at the hospital later declared Quinlan to be in a persistent vegetative state. After spending five months on a ventilator, QuinlanÃ¢â‚¬â„¢s parents requested that the ventilator be removed and that Quinlan be allowed to die peacefully. The doctors at the hospital, however, objected to Quinlan parentsÃ¢â‚¬â„¢ requests, and this made the parents to bring the matter to a New Jersey Superior Court. In the ruling, to the disappointment of QuinlanÃ¢â‚¬â„¢s parents, the New Jersey Superior Court denied the request of QuinlanÃ¢â‚¬â„¢s parents. When QuinlanÃ¢â‚¬â„¢s parents, however, took the matter to the New Jersey Supreme court, the Supreme Court reversed the ruling of the Superior Court and ruled that QuinlanÃ¢â‚¬â„¢s constitutional right to privacy included her right to be removed from the