The Importance Of Capital Gearing Finance Essay

The Importance Of Capital Gearing Finance Essay Financing and investment are two major decision areas for a company. In the financial decision, the company concerns with determining the best capital structure. There are only two ways that a business can raise money debt or equity. With the right option, the business can minimize its cost and maximize company value. Bos and Fetherston (1993) described that determining debt and equity is an important financial decision faced by companies. The relationship between debt and equity is considered as capital gearing. Hence, in this report, the gearing ratio and its influence to WACC, company value and shareholder wealth will be assessed through the two major theories. Capital Gearing Capital gearing is a term describing the relationship between debt funding and equity funding in a company (Financial Management, 2007). The simplest formula for gearing ratio = (%) For example, ABC Ltd has  £1,000 of debt and  £2,500 of total assets. Thus, capital gearing of this company is: = 40% According to NGFL Wales Business Studies (2009), a company with high gearing is the one who has most of the funding coming from borrowing. It leads to reduced profits available to shareholders because of the increase in interest rate. Moreover, if interest rate increases, the financial costs of business will also go up, thereby total costs of business will rise. However, if a company has a high gearing, it is not really a bad thing. The company may need more money for their expansion activities, taking the opportunity to invest by borrowing at low rates. By using capital from borrowing, the company can take advantage of tax shields. A company with low gearing is the one who has most of the funding coming from investment of shareholders. It proves that the company is developing through reinvestment of profits, minimizing risk (NGFL Wales Business Studies, 2009). For example, in 2009, Apple Inc had Total debt/equity also known as gearing ratio at 0% (ADVFN, 2010). However, low gearing may indicate that the company is not aggressive enough to survive, and may not be seeking opportunities for growth (Pham, 2009). Thus, according to Accounting for Management (n.d.), the importance level of capital gearing is subject to various views. Effects upon WACC, company value and shareholder wealth Debt and equity Debt and equity are the two major sources of funds for a company. So, using of debt and equity proportions are the measurement tools for capital structure. (Glen and Pinto, 1998) In fact, cost of debt is generally less expensive than cost of equity. Nemethy (2010) provided two major reasons for that. Firstly, debt is a secured loan, which may be seized by the lender when the borrower cannot payment their loans. Meanwhile, equity is an unsecured loan because the shareholder cannot seize anything, they only have the right to vote at a shareholders meeting. Thus, an unsecured loan has to a higher interest rate than a secured loan. In other words, cost of equity is expensive than cost of debt. Secondly, Nemethy (2010) said that when the company issues debt in the form of bonds, they pay interest out to their investors, this interest has to be deducted by taxation. It is also called the debt tax shield. Conversely, when the company issues equity, they pay out dividends. These dividends represent corporate income, and they are subject to double taxation: one time by corporation and another time by shareholders. Thereby, the cost of debt is less than the cost of equity. With the two major reasons above, virtually all companies prefer to use debt than equity. However, the increase of debt leads to the increase of risks because when the company borrows money, they would be dependent on the lenders. UoS (2007) stated that a highly geared company may also experience difficulties in attracting fund from investors, who are not attracted by the risks involved in a high-geared company. At that time, the market price of the companys shares will fall. So, the company should choose debt or equity, and the influence of capital gearing to WACC, company value and shareholder wealth. We will assess this problem based on the two theories. The traditional view Modigliani and Miller The traditional view The traditional view of capital structure theory, based on observation and intuition, suggests that an optimum capital structure exists (Cornelius, 2002). In other words, the capital structure of a company has effected on the cost of capital. The more debt in the capital structure of a company, the lower of WACC is. The weighted-average cost of capital (WACC) represents the overall cost of capital for a company, incorporating the costs of equity, debt and preference share capital, weighted according to the proportion of each source of finance within the business (Cornelius, 2002). The formula to calculate WACC: WACC = [ x ] + [ x ] For example, a company has an issued share capital of 1,000 ordinary  £1 shares. The company wants to buy two machines with the price of a machine as  £1,000. As mentioned above, cost of debt is generally less expensive than cost of equity, so, we can assume that cost of debt = 15% and cost of equity = 20%. To buy two machines, the company needs to have  £1,000 for the second machine. There are two options for the company. Option 1: Issuing share (ungeared company) It means that the company will have 2,000 shares in total with  £1 per share. â‚ ¬Ã‚ ¢ Total equity = 2,000 x  £1 =  £2,000 = Total assets = 0% = 20% x = 20% Option 2: Borrowing (geared company) In this option, the company has  £1,000 from initial issuing shares and  £1,000 from borrowing with 15% of interest. â‚ ¬Ã‚ ¢ Total debt = Total equity =  £1,000 Total assets = Total debt + Total equity = 1,000 + 1,000 =  £2,000 = = 0.5 or 50% = [15% x ] + [20% x ] = 0.075 + 0.1 = 0.175 or 17.5% It is clear that when the gearing capital of a company increases, its WACC will decrease. According to Watson and Head (2006), the market value of a company is equal to the present value of its future cash flows discounted by its WACC. Market value of a company = Thus, when WACC of the company decreases, assuming that other factors are constant, the market value of the company increases, in other words, the company value and shareholder wealth increase. The traditional view is usually represented as follows. According to UoS (2007), from all equity financing, WACC first declines because debt financing is cheaper. At higher level of debt (beyond X), cost of equity increases because of higher risks out weights the advantage of cheaper debt financing. Hence after X, the WACC will rise. X will be the optimal debt ratio, where the company will minimize its cost of capital and the company value is maximized. In conclusion, gearing capital is very important because it effects to WACC, company value and shareholder wealth of a company. Modigliani and Miller view In 1958, American academics France Modigliani and Merton Miller (MM), presented a radically different view of capital structure theory. They demonstrated that two companies with identical investments would have the same value, regardless of their gearing capital (Cornelius, 2002). As a result, there is no optimal capital structure for a company. MMs propositions can be presented as follows. MMs proposition (without tax) UoS (2007, p.274) argued that with the same size and the same level of business risks of two companies: one company was ungeared company, another one was geared company. The value of an ungeared company equals value of equity in an identical geared company plus value of borrowings in an identical geared company. Therefore, the only factors that influence the value of a company are risk and return. Returns required by shareholders as reward for risk, , will increase at a constant rate as gearing increases due to the perceived increased financial risk. The rising would exactly offset the benefit of the additional cheaper debt in order for the WACC to remain constant. Lenders have security for their debt so they will not feel at risk whatever the level of gearing; therefore, is constant (ACCA F9 Financial Management: Study Text, 2009). This can be shown as a graph. The WACC, the total value of the company and shareholder wealth are constant and unaffected by gearing levels. No optimal capital structure exists. For instance, there are two companies with the same size and the same level of business risk: one company was ungeared company, another one was geared company. One machine got back  £200 profit yearly. The data of the two companies as follows. Ungeared Company Geared Company Share capital  £1,000  £1,000 Debt  £1,000 Machines 1 2 EPS at  £200 profit level 0.20p 0.25p If the investor in an ungeared company borrows  £1,000 at 15% interest, after buying the second machine, that company has the profit =  £200 x 2 =  £400. â‚ ¬Ã‚ ¢ EPS = = 0.4 p After receiving dividends from ungeared company, that investor has to pay interest for the lender with 15% interest per  £1. Hence, the actual return that investor can receive = 0.4 [15% x 1] = 0.25 p. This is the same return as that expected by shareholder in geared company and it had been created entirely by the ungeared shareholder. Therefore, in this proposition, capital gearing does not effect to the WACC, company value and shareholder wealth. MMs proposition (with tax) Because interest is tax-deductible, the use of debt finance gives rise to a tax saving (Cornelius, 2002). In 1963, MM developed a second version to take account of taxation. MM argued that the value of a geared company was the value of ungeared company plus the present value of any tax shield generated by using debt finance. = + T With:: The value of geared company : The value of ungeared company : The market value of debt T: Corporate tax rate With tax, MM view can be represented as below. According to ACCA F9FM (2009, p.1111), remains constant whatever the level of gearing. Likely as MMs proposition without tax, increases as gearing levels increase to reflect additional perceived financial risk. Because interest on debt is tax-deductible, WACC will fall when gearing increases. And: = x [1 ] = + (1 T) ( ) : cost of equity in an ungeared company : cost of equity in a geared company : cost of debt , : market value of debt and equity in the geared company T: corporate tax rate For example, considering two companies, one ungeared and another geared, both of the same size and level of business risk. Ungeared Company Geared Company  £  £ EBIT 1,000 1,000 Interest (200) PBT 1,000 800 Corporation Tax @25% (250) (200) Dividends 750 600 Returns to the investors Equity 750 600 Debt 200 750 800 Suppose that the business risk of the two companies requires a return of 10% and the return required by the debt holders in geared company is 5%, locking at the table above, tax relief on debt interest (also known as tax shield) in geared company = 800 750 =  £50 For ungeared company Market value of ungeared company will be the market value of equity. It will be the dividend capitalized at the equity holders required rate of return. = 750/0.1 =  £7,500 = 10% For geared company Market value of the equity of geared company is determined by the equity shareholders analysis of their net operating income into its constituent parts and the capitalization of those elements at appropriate rates = [ ] = ] =  £4,500 Market value of debt is determined by the debt holders capitalizing their interest at their required rate of return. = =  £4,000 â‚ ¬Ã‚ ¢ Total market value of geared company = 4,500 + 4,000 =  £8,500 According to MMs proposition with tax, it has: = + T = 7,500 + (4,000 x 25%) =  £8,500 Cost of equity in a geared company: = = = 13.33% = 5% x (1 25%) = 3.75% â‚ ¬Ã‚ ¢ = 13.33% x + 3.75% x = 8.82% According to MMs proposition: = x [1 ] = 10% x [1 ] = 8.82% And = + (1 T) ( ) = 10% + (1 25%) (10% 5%) (4,000/4,500) = 13.33% as per the dividend valuation model above. Thus, under MM theory with tax, there is an optimal gearing level at 100% debt in the capital structure. This is not true in practice because companies do not gear up to 100%. In his research, Cornelius (2002) argued that, in the real world, companies do not raise their gearing ratios to such extreme levels because the high levels of gearing may lead to higher risk of liquidation. Hence, for this proposition, there is no optimal gearing structure, in other words, WACC, company value and shareholder wealth do not depend on the level of capital gearing. The drawback of the two theories According to UoS (2007), both of the two theories may seem to be based on unrealistic assumptions. For traditional view, they ignored taxation, companies have complete choice between debt equity finance, and can change this decision quickly and without cost. It is impossible in the real world. The company could change their decision but it has cost and not quickly. For MM, it was built with assumptions that no transaction costs and individuals or corporations can borrow money at the same rate. In fact, individuals and companies cannot borrow at the same rate, since companies usually have a higher credit rating. Therefore, personal debt usually costs more than corporate debt and is riskier. Moreover, the theory does not mention the issue of bankruptcy costs and other agency costs, as well as personal income tax. Conclusion In conclusion, according to traditional view, gearing capital is very important because the changing of gear may lead to changes of WACC as well as company value and shareholder wealth. If gearing capital increases, WACC will fall. It leads to the increase of profits, in other words, company value will increases. Theoretically, there is an optimal capital structure, in which, the company will minimize its cost of capital and the company value is maximized. In fact, it hasnt found an optimal capital structure yet. Conversely, based on MM theory, it argued that the two companies with the same size and the same level of business risk would have the same value. It does not depend on their gearing. In other words, the level of capital gearing is not quite important for WACC, company value and shareholder wealth. Part B: Explain then critically compare and contrast two investment appraisal techniques indicating their merits and limitations in aiding the sound financial management of a company Introduction Nowadays, investing is very important for a company to survive. According to UoS (2007, p.63) an investment involves the outflow of cash at a point in time in order to obtain benefits in the future. Companies make these investment decisions in order to increase the value of the firm and maximizing shareholders wealth. However, funds are limited, thereby, companies cannot invest in all projects, they must choose between alternative investments. There are four commonly techniques for appraising capital investment projects. Payback Accounting rate of return (ARR) Net present value (NPV) also known as Discounted Cash Flow or DCF Internal rate of return (IRR) also known as Discounted Cash Flow technique In this report, we will look at payback and NPV as two investment appraisal techniques to find out how they can inform future projects, their merits and limitations, and which technique the company would prefer. Explanation of two investment appraisal techniques Payback Payback is the number of years required to recover the original cash flow outlay investment in a project (Brealey, Myers and Marcus, 2001). If the cash flows are constant, the formula is: Payback period = If the cash flows are not constant, the calculation must be in cumulative form. The payback is a commonly used method of evaluating investment proposals. Among alternative investments, the company should decide to invest in the project which payback period is shorter, in other words, this is a project which can recover the initial investment quicker (Ross et al., 2007). For example, ABC Ltd has two projects A and B which cash flows as follows. Year Cash flows from Project A ( £) Cash flows from Project B ( £) 0 (100,000) (100,000) 1 10,000 20,000 2 30,000 20,000 3 40,000 30,000 4 20,000 20,000 5 30,000 50,000 Using cumulative form, we have: Year Cash flows from Project A ( £) Cumulative ( £) Cash flows from Project B ( £) Cumulative ( £) 0 (100,000) (100,000) 1 10,000 (90,000) 20,000 (80,000) 2 30,000 (60,000) 20,000 (60,000) 3 40,000 (20,000) 30,000 (30,000) 4 20,000 0 20,000 (10,000) 5 30,000 30,000 50,000 40,000 It is clearly that after 4 years, project A has recovered all original investment and it will begin making the profit for the company from the firth year, so payback period of project A is 4 years. As for project B, after 5 years, the original investment has recovered and it also generates  £40,000 of profits, so the payback period of this project is: Payback period of project B = 4 + = 4.2 years Thus, following the rule of payback period method, ABC Ltd should invest into project A because payback period of project A is shorter than project B. It means that the company can recover the original investment quicker if they decide to invest into project A. Net present value (NPV) Based on Professional Management Education (2010), The net present value (NPV) method is the classic economic method of evaluating the investment proposals. It is discounted cash flow technique that explicitly recognizes the time value of money. It correctly postulates that cash flows arising at different time periods differ in value and are comparable only when their equivalents present values are found out. The formula to calculate NPV is: NPV = Initial Investment + = Initial Investment + With r is the rate of interest It should be made clear that the acceptance rule using the net present value (NPV) method is to accept the investment project if NPV is positive, to reject it if NPV is negative and consider accepting the project when NPV is zero. For instance, using the same data with example above, in additional, the original proposal of ABC Ltd uses a discount rate of 10%. Using discounted cash flow technique to the present value, we have: Year Cash flows from Project A ( £) Present value ( £) Cash flows from Project B ( £) Present value ( £) 0 (100,000) (100,000) (100,000) (100,000) 1 10,000 9,091 20,000 18,182 2 30,000 24,793 20,000 16,529 3 40,000 30,052 30,000 22,539 4 20,000 13,660 20,000 13,660 5 30,000 18,628 50,000 31,046 NPV NPV (A) = -3,776 NPV (B) = 1,956 > 0 Because NPV of project A is negative and that of project B is positive, in accordance with the acceptance rule, ABC Ltd should choose project B to invest because this project will bring more profits. Analyzing of two investment appraisal techniques Compare and contrast In every company, payback period and NPV are very important to evaluate the value of a proposed project before investing on it. Both of two investment appraisal techniques can measure the sustainability and value of long-term projects. From that, the company can make sound financial decisions. (DifferenceBetween.net, 2010) Regarding calculate technique, payback period is used to calculate a period within which the initial investment of a project is recovered (UoS, 2007). It is equal to the initial net investment divided by annual expected cash flows. For example, a company wants to invest  £10,000 in a new project and they expect to have annual cash flows of  £2,000, so the payback period of this project will be = 10,000/2,000 = 5 years. The shorter the payback period, the better investment is. A long payback period means that the investment will be locked up for a long time, thereby this project is relatively ineffective. Meanwhile, net present value (NPV) uses the time value of money to appraise long-term projects. According to UoS (2007), NPV uses the opportunity cost of capital to discount the flows of cash in and out, over the life of a project to give their value at the present day. NPV method focuses on the present value (PV) because NPV equates to the sum of present values of individual cash flows. For example, a project invests  £1,000 and it will bring cash flows of  £2,000 in the next year, so PV of  £2,000 = 2000/(1+0.1) =  £1,818 with discount rate of 10%. Thus, the NPV of this project = -1000 + 1,818 =  £818. When choosing between alternative investments, NPV can help to define the project with highest present value, and also apply the acceptance rule of NPV, if NPV>0 accept the investment, if NPV Ross et al. (2007) stated that NPV method removes the time element in weighing alternative investment, while payback period focuses on the time required to recover the initial investment. From that, payback period method does not assess the time value of cash, inflation, financial risks, etc. as opposed to NPV, which measures the investments profitability. In addition, although payback period method indicates the acceptable period of investment, it does not take into account what will happen after the payback period and their impact on total incomes of this project. But it is contrary to NPV. Thereby, NPV will provide better decisions than payback when the company makes capital investments. In fact, companies use more often NPV than payback period method. Merits and limitations Merits The most significant merit of payback period is that it is simple to understand and easy to calculate than other appraisal investment techniques (UoS, 2007). Comparing with NPV method, payback method uses fewer costs and less analysts time than NPV. For this method, an investor can have more favorable short term effects on earnings per share by setting up a shorter standard payback period. Professional Management Education (2010) believed that payback period can control investment risks because the longer it takes to recover the initial investment, the more uncertainties there will be during the recovery period. In addition, payback method focuses on the time to recover of the initial investment, so it gives an insight into the liquidity of the project. The shorter payback period, the higher liquidity is. On the other hand, Brealey et al. (2001) stated that NPV is more accurate and efficient as it uses cash flow, not earnings and results in investment decisions that add value. By discounting the flows, NPV can create the comparison between alternative investments, and then, making right capital decisions. NPV method is always consistent with the long-term objective of the shareholder value maximization. We can say that this is the greatest merit of this method. Limitations Payback Consider XYZ Ltd with two projects A and B. It has the same three years payback period, whose flows are as follows. Year Cash flows from Project A ( £) Cumulative ( £) Cash flows from Project B ( £) Cumulative ( £) 0 (100,000) (100,000) (100,000) (100,000) 1 20,000 (80,000) 50,000 (50,000) 2 30,000 (50,000) 30,000 (20,000) 3 50,000 0 20,000 0 4 30,000 30,000 100,000 100,000 Payback Period (Year) 3 3 Ross et al. (2007) stated that the first limitation of payback method is the timing of cash flows within the payback period. Looking at the table above, from year 1 to year 3, the cash flows of project A increase from  £20,000 to  £50,000, while the cash flows of project B decrease from  £50,000 to  £20,000. Because the large cash flow of  £50,000 comes earlier with project B, its NPV must be higher. However, as mentioned above, the payback periods of the two projects are identical. Thus, the problem with the payback period is that it does not consider the timing of the cash flows within payback period. It also shows that the payback method is inferior to NPV because NPV method discounts the cash flows properly. The second limitation is payment after the payback period (Ross et al., 2007). Lets consider projects A and B in the same three years payback period, project B is clearly preferred because it has a cash flow of  £100,000 in the fourth year. Thus, a problem here is that payback method ignores all cash flows occurring after the payback period. For the short-term orientation of the payback method, some valuable long-term projects may be rejected. NPV method does not encounter this problem because this method uses all the cash flows of the project. Because of the first two limitations, the payback method cannot maximize shareholders wealth. According to UoS (2007), the payback period method ignores inflation and discriminates against large capital-intensive infrastructure projects with long times, because it only focuses on the earliest time to recover the initial investment. Net present value (NPV) NPV is the true measure of an investments profitability. But, in practice, it still has some problems. The first limitation of NPV method is cash flow estimation (Professional Management Education, 2010). The NPV method is easy to use if forecasted cash flows are known. However, it is quite difficult to obtain the estimates of cash flows due to uncertainty. The second limitation of NPV is unrealistic assumptions (UoS, 2007). Under NPV method, there is a single market rate of interest for both borrowing lending and an individual can borrow or lend any amount of money at that rate. It is unrealistic, in practice, the interest rate for borrowing and lending is different and everyone has to follow the interest rate for each kind. For example, for Vietnam market in 2011, the interest rate for borrowing at 9% and for lending at 17% per year (Trading Economics, 2012). NPV also ignores transaction costs or taxes. Conclusion In a survey carried out by Graham and Harvey (2001), it was found that 74.9% of respondent companies use net present value (NPV) and 56.7% use payback period method when they appraise the investment projects. It means that in fact, NPV method is used more than payback period method. Techniques % Always or Almost Always Internal Rate of Return (IRR) 75.6 Net present value (NPV) 74.9 Payback period 56.7 Accounting rate of return 30.3 Source: Graham and Harvey, The theory and practice of corporate finance: Evidence from the Field, Journal of Financial Economics 60 (2001), based on a survey of 392 CFOs According to the survey of Graham Harvey (2001) and Sandahl (2003), payback period method is often used in small size companies. The major reason for this can be that payback period method is more simple, cheaper and easier to calculate. Small companies are only interested in the shortest time to recover initial investment because they often lack the source for fund. Moreover, the complexity of the other investment appraisal methods is always a barrier for the small company. However, net present value (NPV) is often used in medium and large size companies (Graham and Harvey, 2001). The major reason for this can be that these companies are interested in the profitability and time value of money than the payback period. They have the source of funds and consider maximizing shareholders wealth as their long-term objective.

Company Fairwood

The introduction, Section 1 , is followed by the Method section which describes how the research was conducted. The results of the research are presented in sections, Results and Discussion. The Conclusion is a summary of the results which were found. 1. 2. -aground about Fair-wood- Firewood pursuing a â€Å"customer first, people-oriented† concept, listen carefully to the needs of customers, close to the diet trend in product innovation and continuous improvement, committed to providing quality and price of popular foods. With the intention of service and convenience stores, o provide customers happy dining experience.To enhance the brand image and competitiveness, Firewood in November 2003 costing HOOK $ 15 million were 360 0 reforms big action, creating a new brand image, including the replacement of the trademark, as well as innovative operations, restructuring and upgrading in-store men us environment. Famous designer Mr.. Chin Yoking more Firewood design a â€Å"leap in to the sky humanoid doll† as the new brand logo, feeling energetic, highly motivated, so that customers feel young Firewood vitality, innovation and fun image. In addition, Firewood invited two internationally renowned interior designer Mr..Liana Chitin and Mr.. Moratoria Christine pass hand in hand surgeon for Fair-wood's branch redesign, renovation and every three years thereafter to inject new elements. Firewood is Hong Gong's first fast food chain stores invite professional composers creative background music, but the first implementation of a â€Å"comprehensive smoking† policy, entered into a new standard for the fast food industry in the branch. Firewood has always been â€Å"customer first†, has introduced innovative products, quality ingredients carefully selected to enhance food quality.Ace mix more than 30 kinds of products, including spices, â€Å"A living curry†, a record level Of rich and unique taste; taste tomato sauce and use provoke high gluten pasta boiled â€Å"Extra Virgin Olive Oil Pasta Series,† and â€Å"baked pig Grilled rice â€Å"and† corn Roil meal. † Other innovations include â€Å"point not even drop MS† series, â€Å"grilled thick-cut black dolphin†, Japanese Ramee, etc. , to creativity is committed to meet the needs of customers. Services, Firewood pioneered the â€Å"personal service† so there is a need of the customer to enjoy room service.In addition, also implemented in all outlets â€Å"Accessibility Services†, adding removable seats and ramps, provided on behalf of other intimate meal and room service. For the practice of â€Å"people-oriented† concept, the Group in addition to continue to recruit outstanding talents, nurture a caring culture, offers a number of benefits for existing employees, such as children's education fund, the purpose is to build a happy team, and create a fun dining experience, the â€Å"eat too Happy â€Å"mission to bring customers. Contribute to the community has always been one big happy corporate focus.Therefore, launched the â€Å"S 4 happy meal† campaign to benefit the needy, also held â€Å"Merry Fun Day† and â€Å"Charity Christmas party† to increase communication with community residents, promote social harmony and the spirit of helping each other, practice â€Å"Fresh happy, wonderful in† corporate mission. With â€Å"people† oriented We attach importance to communication between employees, care for each and every employee the ability to obtain satisfaction on the job, Establish continuous learning and improvement culture, providing a growing and learning space for every employee.Food was happy to be wonderful. † We are committed to creating fun dynamic work environment, with the establishment of â€Å"happy team†, the introduction of flexible working hours, to encourage employees to strike a balance in work and life, Our caring staff, payment of a special holiday gift, but also actively organize various recreational activities, such as: Merry giant sound, autumn barbecue, quarterly dinners, birthday parties, etc. From the establishment of happy team spirit and strengthen the sense of belonging to employees of the company. The opportunity to focus on individual play We passed a fair assessment, encourage employees to continue to learn and develop their potential and self-enhancement and, For outstanding employee reward and promotion opportunities, the fastest available 1. 5 years promoted from junior positions to store management.Improve job training We offer a complete range of diverse classroom and professional skills training, Encourage employees to lifelong learning, constantly absorbing new knowledge and enhance their professional skills, their talents, through continuous improvement and learning, get more rapid growth and rumination, For employees to make clear promotion ladder, clear and viable career deve lopment prospects.The award-winning Firewood received the following recognition and certainly in talent development and staff training: ERP â€Å"Manpower Development Scheme† Excellent Employer Award Distinguished Family-Friendly Employers â€Å"Caring† International Day of the 18 districts caring employer Training spirit – â€Å"Fresh happy, live a wonderful, Firewood† Training of personnel is the most important one Firewood ring, â€Å"continuous learning, development and self-enhancement potential and† is the goal of our velveteen team.To this end, the Group is committed to organizing in service training program for potential employees to provide diversified learning opportunities to equip individuals can play an unlimited potential. To help employees meet the challenges ahead, we have designed different job training, aspiring to broaden their horizons and enhance the confidence of employees to participate in order to absorb the required knowled ge, Prepare for future promotion.Promotion ladder We through various training courses to provide advancement opportunities or staff to learn more about food production, customer service, expertise in- store health management, improve management capabilities. Promotion ladder courses ; 360 c comprehensive management course ; youth Management Course ; shop management training Skills upgrading training ; sales skills ; meal catering English response to training SF posts ; job skills certification To explore the potential of staff and the development of personal self- director.Every year we held: ; internal competition: [trials] most tip of the ring, some fighting Chefs ; provide scholarships to potential employees omelet management capabilities outside the course of professional organizations Value-added training To have caused to enhance the professional skills of the staff arrangements involved in cognitive Professional Certificate courses, including: ; catering computer unit certifi cate courses ; minority employees Cantonese training courses ; Health Manager ; Diploma in Business Management 2.Why we choose this company? We chose this business because it's a well-known catering enterprises, of which a fast food store location is adjacent to our school sites, when we were n the field to collect data, can more convenient, and easy to collect detailed and the accuracy Of the data, so finally be able to successfully complete the report. 2. 1. Aim Firewood aims to establish a â€Å"happy team† so happy, happy employees will bring customers and dedication to bring customers a pleasant dining experience.Group and staff work closely together, with the practice of â€Å"eating too happy ; be wonderful† corporate mission. 2. 2. Operating guideline The management advocates balance between work and life, the introduction f flexible working hours, while employees hold different types of activities to strengthen employees' sense of belonging to the Group. Group offers comprehensive in-service training programs for staff to enhance their professional skills and further develop their talents.The Group also provides a lot of opportunities for promotion and attractive incentives to reward performance excellence. 2. 3. Pros & Cons Firewood is a large chain of fast food restaurants. Pros are with â€Å"people† oriented, â€Å"eating too happy to be wonderful,† focuses on individual play opportunity and improve job training. T need to improve the way people with disabilities to buy fast food, they can not require the help of other people can buy the fast food. The Fast Food Shop of the environment and facilities, can to facilitate disabled access.The Fast food shop of the equipment, so that they can easily enjoy better food in the shop. They really provide to a fast food shop accessible services. 3. Suggestion Human resources are one of the Group's core assets. Labor shortage is one of the main challenges that the industry is curre ntly facing and it is increasingly difficult to recruit experienced staff. To tackle this issue, Firewood has to step up efforts to attract talented workers by offering comprehensive staff development programs. 4. Method 4. Secondary source Some internet resources from Google together with data from recent reports from Government of Hong Kong were used as references. Online information was found with the most common Google tools. Their opinions and support provided valuable data for this report. There are 4 articles cited in the report. The 4 articles were useful to make the report easy to understand. It contains the questionnaire. Elect the internet search to finish my questionnaire. 4. 2 Primary sources 5. 2. 1 Subjects 20 local Hong Kong people were selected to answer the questionnaires.The respondents were aged from 20-50. No young children were interviewed, because most of them depend on their parents. Most are student in ours class Holmes Institute University. 4. 2. 2 Question naire The development of the questionnaire was multistage process in which a general theme was first given to each group. Each group brainstormed the theme to find a suitable subtitle for each member. Then, a first draft of the questionnaire was developed with some basic information. The basic information was found the internet.

Rumors, Deception and Compare and Contrast Essay Topics College

Rumors, Deception and Compare and Contrast Essay Topics College If you'll write a comparative essay, you want to get a notion of the impacts of unique aspects to the result you will get at the conclusion of the writing activity. It's possible to choose one based on your field of study and individual interests. For instance, you may assist the reader see a meaningful connection between both subjects. You don't need to discuss major issues and changes in education in case you don't want. What is Actually Going on with Compare and Contrast Essay Topics College There are many sources from where it is possible to gather information on your subjects but make certain that you always go with facts. Finding the perfect topic isn't the hardest job in the planet, all you need to do is to take a few factors into account. Since you may see, the topics are broken up into multiple categories so it would be simpler that you select one. You may use the suggested topics as inspiration for y our own, or you could simply decide to write about one you enjoy the most. The Ultimate Compare and Contrast Essay Topics College Trick Don't forget that you have to make it sound appealing and original, as nobody would want to complete the text that's dull or old news. In a lot of sections of text's primary body you are going to demonstrate different contrast or compare points. What remains unchecked needs to be addressed in the contrast paragraphs. The above mentioned compare and contrast essay topics are only a few of many topics you are able to decide to go over in your essay. You ought to be very careful as you select a compare and contrast essay. Compare and contrast essays are among the most fascinating essay types. You may just buy compare and contrast essay on the website. While you're just beginning to compose essays, you shouldn't struggle attempting to produce something to discuss. The important reason many writers fail is they don't go further. Therefore, wi thout the suitable guidance, young women and men wind up destroying their fruitful lives. You have to select a topic that you truly feel comfortable with. You may also choose 1 topic at this time and begin practicing. You should research your topic to select three claims. You're not restricted to anything, and you may decide on any compare and contrast writing topics you're passionate about. The Compare and Contrast Essay Topics College Trap College is a time for students to concentrate on courses that are unique to the student's career objectives. Students write much better papers when they have some great examples in front of those. They can typically understand the structure with just a short amount of instruction. College students are our very first category. You can begin with the form of topic you pick for your compare and contrast essay. You don't need to be very detailed in your essay, but be certain you check whatever you write about. You may also order a fully written compare and contrast essay and alleviate the quantity of work you must do. If you decide to compose a funny comparative essay then you have to have good humor. When you compose an essay on moral topics, describe the issue from various points of view, showing either side of the exact problem. Philosophical topics may be controversial since many things have more than 1 explanation for it, therefore it isn't simple to decide on the truth. The nature of the topic needs to be told here. Writing a great essay might be a bit of cake if you are feeling inspired. Nonetheless, the top-notch writers who are a part of the Elite Essay Writers team have a larger potential of supplying you with a high-quality paper. Writing is a skill that someone can learn. Writing tips can help you organize the outline and compose the essay.

The Big Five Personality Traits - 867 Words

Of the Big Five personality traits, I scored highest on neuroticism. I compared myself to my friend. My friend scored highest on extraversion. I scored lowest on extraversion, whereas my friend scored lowest on agreeableness. I was somewhat surprised at my results that my friend received. However, I was not surprised by my results. I am a typically anxious person, so I knew I would probably score high on neuroticism. However, I thought my friend would score higher on agreeableness. I don’t agree with some of these because I believe that my friend falls a little higher on the agreeableness, while I believe we both fall a little higher on the openness scale. I also believe there is more to a person’s personality than that. There are several ways in which the uniqueness of each individual can be portrayed by just a few traits. A lot of times, trait psychologists use the Big Five to measure someone’s personality just because it’s a simple, convenient way to d o it. Another reason psychologists often use the Big Five to measure personality traits is because it seems to capture every possible trait that there could be in a person’s personality. According to the book, it’s easier to use the Big Five because it’s like a radio: would you rather have dozens of radio stations with decent sound or only a few radio stations with amazing sound quality? Of course, most people would want the option of having a few radio stations with the amazing sound quality. Therefore, traitShow MoreRelatedPersonality Traits Of The Big Five915 Words   |  4 PagesAs we all know, humans come in all shapes, sizes, and personalities. A big part of being an adult is entering the work field and finding a career. That’s where the â€Å"Big five† personality traits come in. The five traits that most employers base their tests off of are; neuroticism, extroversion, agreeableness, conscientiousness, and openness to experience. So the n ext time you take a pretest for employment would these would be good to keep in mind. Especially when determining if you’re a good fit forRead MoreThe Big Five Personality Traits1020 Words   |  5 PagesThe Big Five Personality Traits Kelly Wilson Benedictine University Organizational Behavior MGT 320-D2A5 Teresa Pavone November 06, 2015 The Big Five Personality Traits Personality traits reflect people’s characteristic patterns of thoughts, feelings, and behaviors. Motivation is a factor that is highly dependent upon personality and because of this, managers must be able to recognize and respond to the different traits. Personality has been studied extensively throughout the years andRead MoreBig Five Personality Traits808 Words   |  4 PagesBig five model †¢ Lewis goldberg proposed a five dimension personality model , nicknamed the big five /five factor theory. †¢ The Big Five model is a comprehensive, empirical, data-driven research finding. †¢ In psychology, the Big Five factors (Five Factor Model) of personality are five broad domains or dimensions of personality which are used to describe human personality. Big five factors are †¢ Factor I: Extraversion. †¢ Factor II: Agreeableness. †¢ Factor III:Read MorePersonality Traits Of The Big Five925 Words   |  4 PagesOne main goal of psychology has been established a model to describe and understand human personality. The five-factor model of personality is the most widely used model in describing personality types. The components of the Big Five are extraversion, openness, agreeableness, conscientiousness, and neuroticism. Each of these components have personality traits that are associated with them. Extraversion refers to the degree in which a person is active, energetic, talkative, and assertive. OpennessRead MoreBig five Personality Traits7561 Words   |  31 Pages------------------------------------------------- Big Five personality traits From Wikipedia, the free encyclopedia In  psychology, the  Big Five personality traits  are five broad domains or dimensions of  personality  that are used to describe human personality. The theory based on the Big Five factors is called the  Five Factor Model  (FFM)[1]  The Big Five factors are  openness,  conscientiousness,  extraversion,  agreeableness, and  neuroticism. The Big five has been preferably used, since it is able to measure different traits in personality withoutRead MoreThe Big Five Personality Traits Essay1617 Words   |  7 PagesIntroduction: The â€Å"Big Five personality traits† is also called as the FFM or five factor model which is a model formed on general language descriptors of personality. These descriptors are formed jointly utilizing a statistical method known as factor analysis which is stated as this model is not formed on the tests/experiments†. This broadly observed hypothesis recommended 5 wide dimensions, utilized by few psychologists to explain the psyche the personality of the human. These 5 elements are explainedRead MoreEssay on The Big Five Personality Traits997 Words   |  4 PagesReaction Paper #1 The â€Å"Big Five† Personality Traits Throughout our lives, we, as humans, encounter others that we may either have an immediate connection with, must discover more about the individual to determine the relevant connection, or simply, we just cannot manage to maintain a cordial relationship. What determines whether or not we can get along with someone else is defined by an individual’s personality. A personality is an array of â€Å"psychological† characteristics that makes each personRead MoreEssay THE BIG FIVE PERSONALITY TRAITS1629 Words   |  7 Pages The Personality Traits of a Manager Amelia Martin MOD 310: Issues in Management Week 5 September 17, 2014 A person’s personality trait can define who they are. Some can tell these traits by the way a person reacts to certain situations, personal or on the job. A person develop traits from the way they were raised and the environment that surrounded them. Everyone carries some type of personality trait, but no one carries any that are identical. Managers have personality traits just likeRead MoreBig Five Theory Of Personality Traits955 Words   |  4 PagesAmong the many established trait theories, the most widely known and used is the Big Five Theory of Personality Traits. It is a five-factor model composed of the broad personality traits of openness to experience, conscientiousness, extraversion, agreeableness and neuroticism. There are a variety of ways to assess one’s broad dimensions of personality in these five categories. One of which is Psych Central’s personality assessment that consists of fifty questions in which there is a statement ofRead MorePersonalit y Traits That Make Up The Big Five Traits1534 Words   |  7 Pagesthe five personality traits that make up the big five traits. Everyone in the world has theses traits in their personality but have a variation in how strong they are in them. After learning in greater detail about the two ends of the spectrums people can be at or in between we took the BFI to find out where we are on the bell curve for the big five traits. Then we compared our scores with four hundred and fifty-nine other female Luther students to determine our percentiles in the BFI traits. In