An Argument Against Same-Sex Adoption Essay - 2924 Words

The audience I am attempting to persuade throughout my argument is to people in the academic community, especially people in the psychology department who would be familiar with the mental affects same-sex adoption might evoke. I would also address this argument to people outside of the academic community who are unaware of the causes same sex adoption could potentially have on the children involved, in order to gain support for my side of the issue. Adoption has always been an institution that mainly focuses on the children they take care of and their well being. Recently, adoption has been a serious issue in society, and each year less and less children from foster homes are being assigned to permanent homes. However, the dilemma our†¦show more content†¦Although many may argue that homosexuals can in fact provide the same environment, I still feel that homosexual relationships are not truly permanent and for the most part are not a good situation for a child to be exposed to. As Cal Thomas, a columnist for the Boston Globe states, â€Å"According to the 2003-04 Gay/Lesbian Consumer Online Census, which surveyed the lifestyles of roughly 8,000 homosexuals, only 5% of those who describe themselves as in a current relationship say their relationship has lasted more then 20 years† (Boston Globe, 21). As this statistic shows, the majority of openly gay citizens who describe themselves as being in a relationship see the relationship end before twenty years. Although twenty years is a long period of time, it is also important to think that the relationships these homosexuals describe are not as much of a commitment as marriage, and involve no vows. In other words, relationships can end at any time, whether it be a year or twenty years. Furthermore, Thomas goes on to record that â€Å"The Bell and M.S Weinberg test found that more than 40% of white gay men had 500 or more partners, and 28% admitted 1,000 or more sex partners† (Boston Globe, 21 ). This statistic further shows the problematic conditions same-sex parents would provide for a child. If almost 40% of white gay men, a majority in theShow MoreRelatedCommentary of Adam Liptak ´s Article Regarding Gay Marriage and Child Rearing716 Words   |  3 PagesMarriage, Find Three Arguments are Better than One why a heterosexual relationship is better for raising children in. The Utah law that would have allowed same sex couples to marry was recently shot down. Liptak goes on to explain why he agrees with the bill not being passed. The article states that this was important in â€Å"holding up and encouraging man-woman unions as the ‘preferred’ arrangement in which to raise children† (Liptak, 2014, para. 12). This discrimination towards same sex couples wantingRead MoreIts Time for Legalization of Same Sex Adoption Around the Country1352 Words   |  6 Pagessuccess of the children, and future generations. How can we say that when thousands of childr en are in foster care to this day? To confront this problem states must realize that adoption to homosexuals is a great opportunity, not by just giving children homes, but also allowing them to experience the lifestyle that same-sex patents present. In addition, the government has to realize that religion should not play a role in whether or not gays should be able to adopt as a couple. People always say theyRead MoreMarriage: Is It Just for a Man and a Woman? Essay1139 Words   |  5 PagesIs America being taken over by same-sex couples who are seeking the same right to marry that heterosexual couples enjoy, or is that just the way the media is portraying it? The fact is that in the United States between 2006 and 2008, 4.6% of females and 2.8% of males ages 18 to 44 reported that they were homosexual or bisexual. The purpose of this essay is to examine the arguments for and against the right of same-sex marriage in the United States. Is marriage just for a man and a woman? The fou rteenthRead MoreGay Marriage Should Be Legal1311 Words   |  6 Pagesargue that allowing homosexuals to wed will go against there religious beliefs, but not allowing them to marry is a huge violation of rights protected by the Constitution. Stance: Same sex marriage should be legal, it is inhumane to not allow someone to have such a trivial right. Thesis: Banning same sex marriage is directly against the constitution violating the unalienable right to the pursuit of happiness. Preview of main points: Not allowing same sex marriage is stripping the rights of individualsRead MoreAdoption to the Homosexuals Couples Essay1410 Words   |  6 Pagesthe success of the children, and future generations. How can we say that when thousands of children are in foster care to this day? To face this problem states must realize that adoption to homosexuals is a great opportunity. Not by just giving children homes, but allowing them to experience, the lifestyle that same-sex parents contribute. In addition, the government must consider that religion should not play a role in whether or not gays should be able to adopt as a couple. People always say theyRead MoreShould Gay Adoption Be Legalized?935 Words   |  4 Pagesexactly how same sex couples feel when they are attempting to adopt children. Adoption isn’t just about finding children for families, but it’s about finding families for children. The traditional definition of raising a family is one man and one woman raising their children together, which is why gay adoption has been a struggle for many gay couples. It is prejudice to deny homosexuals the right to adopt and have a family. As society evolves and cultural perspectives expand, gay adoption deserves toRead MoreLegalizing Same-Sex Marriage Essay1238 Words   |  5 Pagesone. The idea of marriage is something that is bestowed upon us and something that we look forward to ever since we were children, but what about those who what to get married to the same sex. How is that possible? As you know, everything changes at some point or another, this includes marriage. That is why same-sex marriage should be legalized. It has come to a point where the idea or a â€Å"normal† marriage has to change in order to fit in with a constantly changing society. Throughout history weRead More Same-Sex Marriage and Religious Liberties: Essay1558 Words   |  7 Pagesof same-sex marriage has a long-standing history of opposition from religious circles. Some argue against the legalization of same-sex marriage based on their interpretation of the Bible’s stance against homosexuality (Dobson, O’Brien). Other opponents argue against the practice based on universal tenets of moral behavior, fundamental beliefs that are said to underpin our country’s existing laws and should not be eroded (George, Finnis, Friedman). Increasingly, however, the arguments against same-sexRead MoreThe Equality of Marriage1021 Words   |  4 PagesMarriage Equality is legal action on marriage of same-gender couples. On the other hand, did you know that marriage equality has been discriminated and continues to be an issue amongst society all over the world? Many people oppose the issue while others fight to ensure equality. The homosexual community does not have the same access to rightful benefits equal to the way heterosexual couples do. Responsibilities and legal benefits are offered by marriage to protect the couples’ families. MarriageRead MoreThe Issue Of Gay Marriage1191 Words   |  5 PagesThe Declaration of Independence. What he meant was there are rights that are given to us as human beings and cannot be taken away by the government. â€Å"Life, Liberty and the Pursuit of Happiness† are among those rights that are being suppressed against same sex couples. Their right to pursue happiness wit h their significant other is taken from them by the state. Psychologically and medically married couples are healthier in general because they have someone to share their good days and bad days with

Criminal Justice Sex Offender Strategies Essay - 1120 Words

Community corrections professionals use strategies to monitor sex offenders. The main three general categories of supervision are statutory mandates, treatment, and electronic monitoring devices. Due to the fact that sex offenders are the hardest to supervise, there needs to be effective strategies. This group is the hardest to supervise because a sexual act can occur at anytime and anywhere in a quick timeframe. Statutory Mandates The laws and sanctions that sex offenders must adhere to while under some type of community supervision, be it low or high risk level of recidivism, is to keep the community safe. Statutory mandates guide offenders away from recidivism. To help enforce community safety sex offenders must be registered†¦show more content†¦More outcome research of sex offenders in academic journals would greatly benefit accessibility, awareness and can be applied in monitoring them more effectively. Treatment Community corrections professionals keep in contact with the treatment facilities to stay informed on the offenders they are monitoring. This is used as one of the strategies to supervise offenders and keep the community safe. This is just one fundamental aspect of the whole treatment design. The idea of rehabilitation is an elusive concept when discussing sex offenders. Once the act has been committed and the offender has been deemed guilty he or she will always be registered as a sex offender even if rehabilitation is fully achieved. Relapses in therapy can occur any time and/or not work completely. Relapses may lead to reoffending if the criminal act is carried out again and can happen in a quick timeframe. This is why effective supervision is stressed upon. In order to address recidivism rates in this matter treatment needs to concentrate on the individuals criminogenic needs, and then be followed up by aftercare. The offender should complete all programs, like halfway houses/community residential treatment facilities. These facilities need to be empathetic, accepting, and genuine in nature for rehabilitation to occur. (Loftus, lecture) With the essentials for rehabilitation in mind the mandatory treatment in prison and sometimes in community supervision by giving the Show MoreRelatedSex Crime Essay1176 Words   |  5 Pages Sex Crimes â€Å"People are inclined to think that a sex offender is a sex offender – that they commit one type of crime (Okada.p.190).† Sex offenses receive an inordinate amount of special attention from the public as well as the criminal justice system. Is this because our system is a static reflection of the society/community they answer to? Sexual offense stories infiltrate every membrane of our society, from legal mores to norms, from social media to religion. Our system of justice can’tRead MoreSexual Assault Against Women Essay953 Words   |  4 Pagesdecades, sexual assault, rape, and child molestation has become the focal point of public concerns today. According to a 1993 National Crime Victimization Survey conducted by the U.S. Department of Justice, about 500,000 rapes or sexual assaults occur each year (Statistics, March 2010). The Department of Justice states that, â€Å"rape crimes have risen nearly three times as fast as the total crime rate†, although other studies have shown statistics that are in conflict with these numbers; due to the victimsRead MoreWomen in the Criminal Justice Sys tem1575 Words   |  6 PagesWomen in the Criminal Justice System The field of Criminal Justice, like so many of the employment fields within the United States, is a largely male-dominated field. In the minds of many individuals around the country, and around the world, the mention of the Criminal Justice field brings to mind the image of strong male law enforcement officials employed to both protect their respective communities and keep a sea of male criminals under the watchful eye of the law. It may, then, surprise manyRead MoreThe Law Of A Uniform Sentencing Guidelines1126 Words   |  5 Pageswhat punishment will be imposed upon the convict but also decides the deterrent effect it will have on potential sex offenders. In India, a uniform sentencing policy does not exist, as neither the legislature nor the judiciary has supplied any formal guidelines. However, the need for the same has been repeatedly recognized by both. For instance, the Committee on Reforms of Criminal Justice System (Malimath Committee) published its report in March 2003, stating the need for uniform sentencing guidelines:Read MoreSex Offenders And Gps :880 Words   |  4 PagesSex Offenders and GPS Tethering Summary: Sex offenders that were convicted, but not incarcerated are released back into the community. They have many hurdles to jump in order to prove the authority and even their neighbors that they have changed and will not reoffend. There are numerous limitations and controls for such offenders, and a few of them are GPS tethers, residence and employment restrictions, and regular mandatory registrations. Many of these policies were implemented after horrific eventsRead MorePublic Eye on Sexual Offenders Essay example3339 Words   |  14 PagesPublic Eye on Sexual Offenders In preparing for this essay it has been identified that sexual offenders are not a homogenous group of individuals and that this is an umbrella term used to describe a range of behaviours ranging from acts of voyeurism and exhibitionism, to more serious acts of pedophilia and rape. For the purpose of this essay I have chosen to focus on the more serious forms of sex offending which in my opinion, are the cause of much of the currentRead MoreThe London Metropolitan Police Act1599 Words   |  7 PagesAmericans technological communications were non-existent and transportation was limited, yet the population of America was drastically rising. The rapid growth of cities such as New York, Boston, and Philadelphia directly contributed to increased criminal activity. Not to mention the upcoming decades contained significant national changes: ethnic differences, political awareness, moral change, economic growth and decline, etc. During that era robberies, homicides, and assaults were prominent as wellRead MoreCommunity Policing and Community Justice Essay1134 Words   |  5 PagesCJ220 Criminal Justice and the Community Community policing is explained as a collaboration of community and the police working together to help identify and solve criminal activities. Additionally, the whole concept behind it is to promote public safety and to enhance the quality of life within the neighborhoods in which we reside in. Community policing is composed of two major components which are community partnership and problem solving. Community policing is a program that was initiallyRead MoreCriminal Profiling : An Investigative Tool1359 Words   |  6 Pagesforces such as the FBI and the police use criminal profiling as an investigative tool aimed at helping them identify or predict characteristics of criminals who are not yet identified. Criminal profiling as an investigation tool allows investigators to compile and establish the right description of the criminal implicated. Investigators can also use geographical profiling to establish the location of the criminal. The criminal profiling procedure is used by detectives to satisfy certain needs inRead MoreThe Theories Of Crime Causation Essay1414 Words   |  6 Pages Theories of Crime Causation Dolores Jackson Williams Colorado Technical University Juvenile offender 1. Biological theory states that the individual will have certain traits will be transmitted from parent to children through genetics and not from social learning. Along with the juvenile having similar facial characteristics, which some believe also predisposes them to criminal behavior (Palmerin, 2012). 2. Rational choice theory states that the person will make sensible and reasonable

Health Care Is A Public Health Issue - 1327 Words

Health care is a public health issue that continues to trouble different countries yearly. There is always a debate on whether health care is a human right issue or if it is just a luxury. Every year, it is always heard on the news about how a country is trying to improve their health care system, but there are always roadblocks that hinder the bill from passing. This paper will discuss about the best and worst parts of other countries’ health care systems, previous problems that the U.S health care had, the best and worst parts of the Affordable Care Act, and discussing a component of another countries’ health care that is being integrated with the U.S health care. All of the countries mentioned in Sick around the world had major benefits and downfalls associated with their healthcare. The United Kingdom’s best benefit was that the citizens pay $0 for any health care service, but since the health care is free, the citizens have a long waiting list for elective care. The best part about Japan’s health care is that it is cheap and everyone is three times healthier, but since the costs are so cheap, half of the doctors are in financial deficits. Then, Germany’s best asset of their health care is that not only does their health care cover regular medical costs, but also it covers holistic care. But, since the prices are lower, the doctors do not make as much money. Taiwan has a great benefit called a Smart Card that has every patient’s history to keep order between differentShow MoreRelatedUniversal Health Care : Universal Healthcare1615 Words   |  7 Pagesform of universal health care has spanned practically a centur y in the USA and has been the subject of political debate since the early part of the 20th century. Recent reforms remain an active and urgent political issue. Universal Health Care has been one of the leading public issues in America and in recent times this issue has risen to the fore, because of its increasing prevalence in the government, market, and civil sectors. In this essay, I will be looking at why this issue can and does affectRead MorePublic Policy Of Globalization On Canada Essay1692 Words   |  7 PagesPublic Policy of Globalization in Canada The government is what makes executive decision for the public policy. Society is influenced by our living and working conditions which shape health. The social determinants of heath shape material, psychosocial, and behavioral routes. However, stages of life like, genetics, early life, and cultural factors are some components that influence health. The Canadian welfare state shape public policies enhance the social determinants in Canada and the low qualityRead MoreTeen Pregnancy Essay1667 Words   |  7 PagesTeenage pregnancy has long been acknowledged as an important health, social and economic problem in the United States, one that creates hardships for women and families and threatens the health and well-being of women and their infants. Unintended pregnancies span across age, race and religion, with a specific negative impact among the teenage population. According to the Center for Disease Control (CDC, 2016) In 2015, a total of 229,715 babies were born to women aged 15†“19 years, for a birth rateRead MoreThe Impact Of Affordable Care Act1258 Words   |  6 PagesHealth care in America is a continuous fight and has become a daily hot topic with every news outlet. Even politicians use it to secure their role in congress. Sadly, as a powerful force of a nation the United States (U.S.) plays against and for other nations, the American people’s health care system is broken at the moment. There is continuous chatter about making improvement but nothing is being done to correct it. American public health is in a desperate state and a cry for help because as a nationRead MoreObama Secretary Representative Department And Prepare For An Appearance Before The House Health Committee1621 Words   |  7 Pagesbefore the House Health Committee, one must be able to exhibit a concise understanding for the department as the selected secretary representative. Through class discussions, it is possible to identify health care as one of the most important as pects in the public sector. With the committee also revolving around the overall welfare of our youth, makes this particular topic more delicate and demanding. In the public administration field, there is not only a priority for the public first but also anRead MoreNursing Shortage: Causes, Concerns, and Impacts1839 Words   |  7 Pagesexpected to offer direct patient care and manage nursing care. On the contrary, licensed practical nurses are also licensed by the states though their main function is to provide patient care under the supervision and guidance of a physician or registered nurse. Notably, the licensed practical nurses are required to complete approximately one-and-a-half of training. As practitioners assisting in regular care activities, nurse aides may carry out these activities in home care and hospital settings thoughRead MoreThe Health Care Expense Essay1059 Words   |  5 PagesThe Health Care Expense With congress recently addressing health care, people are interested in the ramifications of this momentous disillusion. Leading proponents of this cause crusade for change without examining the consequences. This year the American public will discover the real cost of universal health care through quality, expense, responsibility, and the role of private insurance. Quality of Care Quality is an issue most are reluctant to address. Currently H.R.3590 addresses theRead MoreHealth Of Public Health Nursing Essay1386 Words   |  6 PagesPublic health nursing focus on a community that the nurse identifies the health issues facing that population and try to figure out ways to find a solution to those health problems for the community s population. Although areas in public health such as having access and cost still pose a great problem, community based care has made an impact on the contemporary practice of nursing. One of the leaders of public health nursing was Lilian D. Wald. Lilian Wald was a nurse, social reformer, and advocateRead Morecare guid Essay1590 Words   |  7 PagesContemporary issues in health and social care Unit number: 24 Level: 5 Credit value: 15 Guided learning hours: 60 Unit reference number: A/601/1639 UNIT AIM AND PURPOSE This unit will provide learners with an understanding of methods used to bring information about contemporary health and social care issues to the public, progressing to examining how these methods can influence public opinion. Learners will also have the opportunity to explore a contemporary health andRead MoreA Brief Note On The Affordable Care Act1447 Words   |  6 PagesAccess to care is a distress to nurses today. In 2010, the Affordable Care Act was passed to help lighten restraints to access to care. With the multitude of legislation, guidelines, and rules enforced by bureaucracy offices, private division underwriters, and institutes, nurses are challenged concerning the intertwine fluxes of budget limitations and the ability to provide to proper quality of care. As a result of the limited access to adequate healthcare services, there are multiple problems that

Personal Narrative A Visit to Universal Studios and...

That evening, we arrived back in Orlando, the city. I thought of satellites and how they can beam out messages and ideas into thousands of homes miles away. I walked through forbidden areas at night; deserted walkways, boarded shops, saw people in doorways, wrapped in blankets, everywhere was quiet. I sat in bars, trying to strike up conversations, but even the lonely mimicked the same story – I wanted to discuss, to find out if anyone felt as I did – about this madness, I wanted to find those who reject it all. I knew they were there - somewhere. That night I found nothing. The next day we drove along, boulevards lined with motels, peep shows and strip bars. We visited Universal Studious and Walt Disney. I wondered if these places were the centre, the final mental solution of the American Dream. If this is where it took its inspiration and ideology from and then siphoned it and injected it with mirror images of people who look human. Then sold it back intensely through schools, households and the media while destroying cultures, environments, onward pushing with this madness. Behind the smiles, the dreams, the fairy tales, lay corruption, violence and nightmares. These Walt Disney characters in their tomorrowland are the epitomy of it all, behind the ‘innocence’ and ‘purity’ – lay lies, lay children chained to tables, working for cents . Behind it all lay 400 years of butchering, and today, so some can achieve material dreams, millions of casualties. Even here, along theseShow MoreRelatedAn Evaluation of an on-Farm Food Safety Program for Ontario Greenhouse Vegetable Producers; a Global Blueprint for Fruit and Vegetable Producers51659 Words   |  207 Pagessafety program 61 Hypothesis and objectives 61 Introduction 61 OGVG industry profile 64 OGVG on-farm food safety program summary 68 Components of the OGVG on-farm food safety program 70 Documentation of practices 70 On-site visits 70 Microbiological sampling 73 Methodology 74 Case study data sources 74 Microbiological analysis methodology 75 Interview evaluation methodology 78 Survey methodology 80 Results 81 Microbiological analysis 81 Read MoreExploring Corporate Strategy - Case164366 Words   |  658 Pageshealth care funding systems, since ‘over-65s’ consume four times as much health care per head as those below 65. Combined with more expensive high-technology solutions and increasing patient expectations, this creates an unsustainable situation. Universal coverage systems (such as those in Spain and the UK) are slow or unable to introduce the latest treatments, while insurance-funded systems (such as in the USA) can afford the latest innovations but are unable to share the beneï ¬ ts with an increasingRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesLeaders 399 Case Incident 1 Leadership Mettle Forged in Battle 400 Case Incident 2 Leadership Factories 400 13 Power and Politics 411 A Definition of Power 412 Contrasting Leadership and Power 413 Bases of Power 414 Formal Power 414 †¢ Personal Power 415 †¢ Which Bases of Power Are Most Effective? 416 †¢ Power and Perceived Justice 416 Dependence: The Key to Power 416 The General Dependence Postulate 416 †¢ What Creates Dependence? 417 Power Tactics 418 Sexual Harassment: Unequal Power inRead MoreProject Mgmt296381 Words   |  1186 PagesProject Manager 338 Managing versus Leading a Project 339 Managing Project Stakeholders 340 Influence as Exchange 344 Task-Related Currencies 345 Position-Related Currencies 346 Inspiration-Related Currencies 346 Relationship-Related Currencies 346 Personal-Related Currencies 347 Well-Defined Requirements and Procedures 423 Extensive Training and Team-Building Activities 424 Well-Established Conflict Management Processes in Place 426 Frequent Review and Status Updates 426 Co-Location When Needed

Growing up in a World where Chasing Money is what Matters

Growing up we never really find out what the future holds in store for us while we live in a world where chasing dreams is a luxury and money is all that matters in a one sided world. Growing up in a world where chasing money is all that matters by men whose pockets, turn to barrels filled riches and the men who chase happiness are fools. What’s the level of getting a hefty paying career if the ease of my life I reckon upon it in misery and discontentment. Doctor, Lawyer, working in a corporate position as a CEO maybe even a scientist. Directing is my love and the drive that will keep me going even though it wasnt always like that for years before my first taste of engineering, I was depressed, frightened, and lost I didnt know what I wanted to make out. I didnt know what to do, I feel unmotivated doing school work or work out, I arrived at a massive amount of weight before I received it I was failing high school while weighing 350 pounds. I started drama in my sophomore yea r of high school, I fell in love with theater it became a big part of my life I loved witnessing how a person can immerse themselves and become a different person, animal, or even a thing. I had found a new determination in life I wanted to become an actor I wanted to be the next new name in shining lights winning Oscars and academy awards, but as time went along I saw acting wasnt really my thing. I was an okay actor and I knew I wouldnt cook it in Hollywood as an actor. Depression sets in my lifeShow MoreRelatedAnalysis Of The Poem The American Dream 1071 Words   |  5 Pagessuccessful by doing what you love. So my idea is supported by connecting to Sam Walton and Jay –Z profiles/interviews. The interview says no matter how hard you had it growing up, you can still conquer anything if you work hard enough and put your mind to it. This is the same as the visual image of the homeless person in the trunk this, tells the reader you can come from nothing and build and work towards your dreams and goals. My thesis is Jay –Z and Sam Walton has different views on what the AmericanRead MoreMy Dream Essay709 Words   |  3 Pages Growing up in Jersey City, life was harsh and difficult. Those difficulties transformed me into the person I am today. No one is more hardworking than my dad who worked an insane amount of hours almost everyday just so my brother and I can live a comfortable life. As a child I failed to understand the value of money and work ethic needed to become a billionaire. My dream was simple: make money, live on a beach, and not worry about a single thing. On April 26th, I missed school and visited my dad’sRead MoreChasing Halley s Comet : The Comet854 Words   |  4 PagesChasing Halley’s Comet Halley’s Comet crosses the Earth’s skies every 75 years. Samuel Clemens just so happened to be born following Halley’s comet, and in 1909, he predicted that he would go with Halley’s comet the next year. Clemens stated, â€Å"I came in with Halley’s Comet in 1835. Halley’s comet will be coming again next year, and I expect to go out with it† (Samuel Langhorne Clemens (Mark Twain) - Historic Missourians, n.d.). On April 21, 1910, one of the world’s most influential writers diedRead MoreThe One and The Only Jimmy Valvano Essay1015 Words   |  5 PagesThe One and The Only Jimmy Valvano â€Å"Never give up! Failure and rejection are only the first step to succeeding†. These were the words that the late Jimmy Valvano gave to his audience at the ESPY Awards on March 3rd 1993. The ESPY Awards are sponsored by ESPN each year for those recognized for their achievement in sports. Almost 21 years ago, â€Å"Jimmy V† as he was known gave his speech because he was not told to; rather, he gave his speech because he was qualified to influence a revolution. Jimmy ValvanoRead MoreWhat Is The Theme Of The American Dream In The Great Gatsby1508 Words   |  7 Pagesinitiative, every citizen of the United States would be flourishing with money and expensive things. This may have been true, but no matter how hard anyone worked they were always looking for the next best thing leaving everyone unsatisfied. F. Scott Fitzgerald makes this evident in â€Å"The Great Gatsby† through his descriptions and actions of the characters. In chapter one, Fitzgerald introduces readers to Tom and Daisy Buchanan. Growing up, Daisy was the beautiful, rich, â€Å"Golden Girl† and Tom was one ofRead MoreAnalysis Of Marshal Mathers 1546 Words   |  7 Pageshas succeeded against all odds, growing up in a multitude of broken homes in the ghettos of Detroit, and fighting to rise to the top of African-American dominated art form. Eminem was constantly bullied and victimized, being told that he did not belong just for being white and that he was not going to succeed. He has proven that with desire, drive, and dedication anyone can accomplish their greatest goals no matter their background. Eminem has suffered to get to where he is today. The theme of sufferingRead MoreFreedom And Family In My Antonia And The Underground Railroad1372 Words   |  6 Pageshave different ideas of just exactly what the American Dream is, they all know precisely what they want. For some, the American Dream sounds so enticing that they have traveled across the world to achieve their goal. They work hard to fit in and succeed, but, as in the case of Mr. Shimerda, are not always successful. One girl who was chasing the American Dream was Lena Lingard, a small farm girl from a poverty-stricken family. Lena had one thing on her mind, money. To her the American Dream was wealthRead MoreAl Capone: The King of Chicago Essay830 Words   |  4 Pages Chicago has always been known for its not so good reputation, but have you ever wondered where that reputation started. How guns, drugs, and prostitution came to be so closely associated with Chicago. Even the state Chicago resides in, Illinois, has been regarded as one of the most corrupt states in the country. All the things we have associate with Chicago were brought out be the famous gangster, Al Capone. Al Capone, whose life as a criminal began at a young age, made Chicago known for violenceRead MoreInnovation1610 Words   |  7 Pagesthe lifecycle of ideas to market closure. Savvy leaders shape the culture of their company to drive innovation. No one ever feels like they have time to spare. â€Å"People get so consume d with putting out fires and chasing short-term targets that most can’t even think about the future†. Giving up control when the pressure is greatest is the ultimate innovation paradox. That’s why iconic brands like 3M and Google give their employees about 10% free time to experiment with new ideas. The three companiesRead MoreEssay on Media Impacts and College Life1485 Words   |  6 Pagesfemale growing up in a media-crazed age, I am deeply troubled and affected by the medias support of the thin ideology. I am a classic example of the medias impact on females and the downward spiral of self-satisfaction. Being present in the center of college life, I am in the midst of the hormonal sea of students. Whether its at class or watching the sorority and fraternity kids run around during rush week, there is always chasing for approval between the sexes. A day doesnt go by where I dont

Impact of Culture on the Decision Making and the Role of Social Medi

Questions: 1. What is the Impact of Culture on the Decision Making while Purchasing Luxury Goods? 2. What is the Role of Social Media as a Promotional tool? Answers: 1. Impact of Culture on the Decision Making while Purchasing Luxury Goods Introduction Consumer behavior is influenced by various factors depending on the nature of goods. First of all, luxury goods need to be described. Luxury goods can be referred to the goods which are used in for comfort and extravagant living. However, it must be noted that the concept of luxury goods vary in case of each individual. It has been observed that luxury goods are high priced and designed for the niche market. For example, diamond jewelry, expensive cars etc are the examples of luxury goods. In 21st century consumption of luxury goods have been increasing across the globe (Luna Forquer Gupta, 2001). Hence, it is important to assess the major factors that influence the decision making of the consumers. This paper will focus on analyzing the important factors, especially the effect of culture on the consumer behavior of luxury goods. Factors Influencing Consumer Behavior Consumer behavior refers to the study of the consumers regarding their choice of goods and services depending on the psychology, social influences and other factors of the consumers. It has been found that environmental factors and individual attitudes are responsible for influencing the purchasing behavior of the customers. The individual factors include the personal preference, taste, knowledge, motivation, information search, cognitive skill, problem, lifestyle etc (Jamal Al-Marri, 2007). However, it has been observed that the environmental factors such as economic, demographic, political, social, cultural and technological factors are also responsible for influencing the consumer behavior regarding the purchase of different products. This paper will focus on analyzing the major impact of cultural factor for influencing the purchasing behavior of the luxury goods. Impact of Culture on Purchasing Behavior of Luxury Goods Purchasing behavior of the consumers has been significantly influenced by the cultural factors across the globe. The cultural factors are consisted of the norms, perception, value system, beliefs, mutually shared process for operation, unstated presumption, communication style etc. It has been found that cultural factors vary among different regions and nations. Hence, understanding the cultural factors influencing the purchasing behavior is a complicated issue. It has been found that the learned belief, customs, values system and perception plays a major role in shaping the need as well as evaluation of goods and services. Thus, the individuals develop a personal belief and perception which leads to particular attitude and it is responsible for influencing the choice of brands, quality etc. Culture is shared among the group of people within a group. This factor has been also found to be significant in case of purchase of luxury goods (Wiedmann, Hennigs Siebels, 2009). Human history has depicted that consumption of luxury goods have been a significant practice and the international market of luxury goods have encountered dramatic growth. Cultural factors have been playing an important role in consumer behavior. It has been observed that the sub cultural factors such as religion, gender, social status have significant impact on the purchasing behavior of luxury goods. For example, in India, Hindu widows have less access to the luxury goods. It has been found that the Hindu people from the Asian countries focus on consumption of luxury items at the time of marriage. Exchange of expensive gifts is found to be an important aspect of the Eastern culture at the time of wedding. Hence, it can be found that culture has been significantly influencing the purchasing behavior and consumption of the luxury goods (Luna Forquer Gupta, 2001). Additionally, another example can be cited which demonstrates that cultural factors has significant influence on the purchasing behavior of the luxury products. It has been found that one of the important cultural aspect of people from Thailand is extensive emphasize on the collectivism. Thailand has very low dimension of individualism and the people belonging to Thailand prefers to stay in group (Park, Rabolt Sook Jeon, 2008). Thai people give extensive importance to the close relationship and social bonding. These people feel secure by being connected among the social group. Women from Thailand are found to be very much social oriented. It has been observed that owning luxurious fashion products helps in representing the social status of Thai people. Owning a luxury brand assists in communicating the social status, prestige and success of that person. Additionally, it provides personal satisfaction to the owner as the person gets social admiration(Jamal Goode, 2001). Hence, the c ulture has significant importance on the purchasing behavior of the luxury brands which vary according to the social group or nation. One of the important subculture is gender. Market studies have indicated that women prefer to own luxury fashion brands in order to flaunt their social status. On the other hand, this trend is found to be less significant in case of men. It has been observed that purchasing of luxury fashion brand is predominant in case of women across the globe (Seong Hong, 2013). Iranian culture can be studied by applying the Hofstedes Dimension of Culture. Power distance index is an important cultural dimension. In Iran, power distance index has demonstrated that the power is distributed in unequally among men and women. The high level of power distance has resulted in uneven income distribution which leaded to significant inequality of wealth and power within the Iranian society. This aspect of culture is significant in case of consumption of luxury goods. It has been observed that Iranian men have greater access to the luxury goods in comparison to women(Teimourpour Heidarzadeh Hanzaee, 2011). Conclusion This paper has provided an insight to the impact of cultural factors on the purchasing behavior of luxury goods. Various sub cultural factors such as gender; religion etc has a significant impact on the consumer behavior. From this study, it can be concluded that purchasing behavior of the consumers is significantly influenced by the cultural factors. The examples of Thailand, India and Iran have demonstrated how culture influences the purchase of luxury goods. References Jamal, A., Al-Marri, M. (2007). Exploring the effect of self-image congruence and brand preference on satisfaction: the role of expertise.Journal Of Marketing Management,23(7-8), 613-629. doi:10.1362/026725707x2266 Jamal, A., Goode, M. (2001). Consumers and brands: a study of the impact of selfà ¢Ã¢â€š ¬Ã‚ image congruence on brand preference and satisfaction.Mrkting Intelligence Plan,19(7), 482-492. doi:10.1108/02634500110408286 Luna, D., Forquer Gupta, S. (2001). An integrative framework for crossà ¢Ã¢â€š ¬Ã‚ cultural consumer behavior.International Marketing Review,18(1), 45-69. doi:10.1108/02651330110381998 Park, H., Rabolt, N., Sook Jeon, K. (2008). Purchasing global luxury brands among young Korean consumers.Journal Of Fashion Marketing And Management: An International Journal,12(2), 244-259. doi:10.1108/13612020810874917 Seong, S., Hong, E. (2013). The Influence of Consumption Value and Attitude about Luxury Goods by Women on Consumption Behavior and Satisfaction.The Korean Journal Of Community Living Science,24(4), 517-536. doi:10.7856/kjcls.2013.24.4.517 Teimourpour, B., Heidarzadeh Hanzaee, K. (2011). The impact of culture on luxury consumption behaviour among Iranian consumers.Journal Of Islamic Marketing,2(3), 309-328. doi:10.1108/17590831111164822 Wiedmann, K., Hennigs, N., Siebels, A. (2009). Value-based segmentation of luxury consumption behavior.Psychology And Marketing,26(7), 625-651. doi:10.1002/mar.20292 2. Role of Social Media as a Promotional tool Introduction Contemporary world is increasingly becoming dependent on technology. Social networking is increasingly utilized by the retailers for enhancing the effectiveness of the marketing communication. Social media marketing has been described as a link between the consumers and brands which provide a personal communication channel focused on social interaction (Gong, 2013). In dynamic and extensively competitive business environment various organizations have been integrating social media in their marketing strategy for achieving competitive advantage. This paper will focus on analyzing how social media has been contributing in enhancing the effectiveness of the marketing strategy of a business firm (Bampo, Ewing, Mather, Stewart Wallace, 2008). Role of Social Media as Promotional Tool Social media can be described as an internet application developed on the basis of web 2.0 and permits the exchange of user created contents. Social media is considered to be one of the most popular medium for social interaction for sharing personal contents. Initially, social media provided a web based platform to the individuals for connecting with acquaintances. But, presently the social media has been providing an opportunity to learn about various companies and the products sold by those firms (Kuppuswamy Narayan, 2010). Hence, the retailers and marketers are emphasizing on utilization of the social networking sites to communicate effectively with the target audience. The major purpose of the promotional activities is to communicate with the target market and make them aware of the brand or product. Promotional activities can be conducted through various promotional tools such as direct marketing, public relations, sales promotion and advertising. Now, social media has been usi ng as one of the most important channels for publishing advertisements and communicating the promotional activities to develop a healthy relationship with the customers (Zhang, Jansen Chowdhury, 2011). First of all, the number of internet users is growing rapidly across the world along with number of social media users. People from different age groups are registering in the popular social media networks such as Face book, Twitter, LinkedIn etc (Di Pietro Pantano, 2012). Presently, the business organizations are focusing on publishing online advertisements on the social networking sites. While the users of social media will sign in to the site, they will get to know about the present activities of the brand. For example, when a particular brand is offering discount it can be published through the online advertisements (Zeng, Huang Dou, 2009). Various brands are found to be utilizing social media for fostering brand awareness. Social media has immense potential to reach wide range of population. Additionally, it is not very expensive and increasing number o companies are brands are adopting social media promotional tools in order to enhance the effective communication with the target market and improving the customer service (Melanthiou Fantis, 2010). For example, various fashion brands have created their face book pages and just giving a like on the page will help in getting information regarding that particular brand. The users will get to know about their latest collection, upcoming events and discounts. Additionally, various brands conduct online quizzes and competitors for the social media users. For instance, the users can be asked to upload their picture wearing the dresses of that particular brand. At the end, the photographer which will receive highest number of votes will be selected for the best prize (Wolny M ueller, 2013). This is an innovative idea for communicating with the target market and making them engaged. In this way, the company will able to meet its marketing objectives. Research studies have provided significant evidence regarding the effectiveness of social media as a promotional tool. One of the important aspects is, the social networking site has enabled the users to access their profile from anywhere. Additionally, the activities of an individual on the social media can be viewed by others. Hence, this has provided extensive opportunity for the brands to connect with large number of audience (Gonzalez, Claro Palmatier, 2014). It is evident that social media is the new element of the promotional mix and it has enabled the companies to directly reach the consumers in an easier manner (Thongsuk, Haruechaiyasak Saelee, 2011). Influence of Opinion Leaders Opinion leader is referred to the distinguished individual or the organizations which has the potential to influence the public opinion relating a particular matter. Use of the social media as the promotional mix has been providing ample opportunities for interacting with wide range of audience and it has helped the organization in increasing the effectiveness of marketing communication. Integration of social media into the marketing strategy of a firm helps in obtaining a platform for the opinion leaders to communicate with the target market. The other communication channels were less effective compared to the social media. The opinion leaders will have to put less effort to reach large number of consumers. Additionally, various creative approaches can be adopted by the opinion leaders to utilize social media as one of the important promotional tools. Hence, it can be stated that adoption of the social media will contribute in strengthening the influence of the opinion leaders. For example, if a renowned actress promotes a brand as opinion leader, she will be able to reach large number of people conveniently and it will easily influence the psychology of the consumers (Thackeray, Neiger, Hanson McKenzie, 2008). Conclusion This study has helped in gaining insight regarding the utilization of social media a promotional tool. It has been found that social media is very effective to communicate with large number of consumers. The efficient new hybrid element of promotional mix helps the organization or the brand to interact with the target market for fostering brand awareness with less effort and minimum expenditure. Additionally, it has been observed that the social media provides a platform for the opinion leaders in order to strengthen their influence on consumers. References Bampo, M., Ewing, M., Mather, D., Stewart, D., Wallace, M. (2008). The Effects of the Social Structure of Digital Networks on Viral Marketing Performance.Information Systems Research,19(3), 273-290. doi:10.1287/isre.1070.0152 Di Pietro, L., Pantano, E. (2012). An empirical investigation of social network influence on consumer purchasing decision: The case of Facebook.J Direct Data Digit Mark Pract,14(1), 18-29. doi:10.1057/dddmp.2012.10 Gong, W. (2013). Factors influencing perceptions toward social networking websites in China.International Journal Of Internet Marketing And Advertising,8(1), 54. doi:10.1504/ijima.2013.056585 Gonzalez, G., Claro, D., Palmatier, R. (2014). Synergistic Effects of Relationship Managers' Social Networks on Sales Performance.Journal Of Marketing,78(1), 76-94. doi:10.1509/jm.11.0431 Kuppuswamy, S., Narayan, P. (2010). The Impact of Social Networking Websites on the Education of Youth.International Journal Of Virtual Communities And Social Networking,2(1), 67-79. doi:10.4018/jvcsn.2010010105 Melanthiou, Y., Fantis, S. (2010). Using social networks as a promotional tool for higher education institutions.International Journal Of Technology Marketing,5(4), 303. doi:10.1504/ijtmkt.2010.039733 Thackeray, R., Neiger, B., Hanson, C., McKenzie, J. (2008). Enhancing Promotional Strategies Within Social Marketing Programs: Use of Web 2.0 Social Media.Health Promotion Practice,9(4), 338-343. doi:10.1177/1524839908325335 Thongsuk, C., Haruechaiyasak, C., Saelee, S. (2011). Classifying Business Types on Twitter Based on User Influential Analysis.AMR,403-408, 3719-3723. doi:10.4028/www.scientific.net/amr.403-408.3719 Wolny, J., Mueller, C. (2013). Analysis of fashion consumers motives to engage in electronic word-of-mouth communication through social media platforms.Journal Of Marketing Management,29(5-6), 562-583. doi:10.1080/0267257x.2013.778324 Zeng, F., Huang, L., Dou, W. (2009). Social Factors in User Perceptions and Responses to Advertising in Online Social Networking Communities.Journal Of Interactive Advertising,10(1), 1-13. doi:10.1080/15252019.2009.10722159 Zhang, M., Jansen, B., Chowdhury, A. (2011). Business engagement on Twitter: a path analysis.Electronic Markets,21(3), 161-175. doi:10.1007/s12525-011-0065-z

Polaroid free essay sample

In late March 1996, Ralph Norwood, the recently appointed treasurer of Polaroid Corporation, reflected on several matters of concern about the firm’s debt policy that would require his attention in the coming months. One immediate concern was Polaroid’s outstanding $150 million, 7. 25 percent notes, which were due to mature in January 1997. Investment bankers, keenly interested in garnering advisory and underwriting business from Polaroid, had sought to present proposals for refunding the issue. However, Norwood felt that any refunding decision should be part of a larger review of the firm’s financial policies. Accordingly he undertook a review of the firm’s overall debt policy, focusing primarily on the mix of debt and equity and on the maturity structure of the debt. He also sought to consider issues of control, the establishment of any special advisory relationships, and the use of new financial instruments. In recent years Polaroid’s share price had traded in a narrow range, reflecting small sales and earnings growth. However, a new plan to exploit aggressively the existing Polaroid brand, introduce product extensions, and enter new emerging markets (such as Russia) had been proposed to spur the firm’s performance. The restructuring plan was spearheaded by Gary T. DiCamillo, the first outsider appointed chief executive officer (CEO) in the firm’s history. DiCamillo had only recently joined the firm in November 1995. Norwood believed the plan would reinvigorate the company without materially increasing its operating risk. With important changes in the works, Norwood felt it essential that his financial policies afford Polaroid the necessary funding and flexibility to pursue the initiatives of the new CEO. This case was written by Professors Robert Bruner and Susan Chaplinsky as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. Copyright  © 1997 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an email to [emailprotected] edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. Rev. 12/01. Version 1. 7. 405 Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e 406 VI. Management of the Corporate Capital Structure 31. Polaroid Corporation, 1996  © The McGraw? Hill Companies, 2003 Case 31: Polaroid Corporation, 1996 THE EARLY YEARS Polaroid Corporation was founded in 1937 by Edwin Land, who had dropped out of Harvard College to pursue ideas on the polarization of light. The early years of Polaroid reflected the characteristics of Land: inventive, determined, and single-minded. The first instant camera was produced in 1948 and from that moment 90 percent of the company’s efforts were dedicated to the development of the field. Within four decades, sales of the firm grew from $142,000 to over $1 billion, largely on the basis of Land’s interest and oversight of the research effort in instant photography. Significant breakthroughs included instant black-and-white film (1954), instant color film (1960), and the SX-70 camera and film (1972) which freed the user from having to coat the developing picture. In 1977 the firm’s sales exceeded $1 billion for the first time, though this achievement was offset by increasing pressures from the sales force for new sources of growth, in the form of cheaper products. Internally there had been major efforts to develop products beyond instant photography: document copiers, and an instant movie camera and film. The movie project debuted in 1977 as Polavision, an instant motion picture technology. Unfortunately, sales languished largely because of the advent of video-camera technology. In 1979, the directors wrote off the inventory of Polavision products and effectively exited from the business. In 1980, Edwin Land stepped down as CEO of the firm; he retired from the board in 1982 and a year later sold his Polaroid stock in a public offering. RECENT FINANCIAL PERFORMANCE The two most notable events of the past decade were prompted by the actions of others. In 1976 Eastman Kodak Company introduced an instant camera and film product that threatened Polaroid’s dominance of the instant-photography field. Polaroid sued Kodak for patent infringement, and 10 years later in 1986 was awarded the largest patent judgment in history, some $900 million. Meanwhile, few significant new products were developed during this time. In 1988, with no large shareholder like Edwin Land to protect the firm and expecting the proceeds from the Kodak patent judgment, Polaroid received an unsolicited tender offer from Shamrock Holdings. Shamrock proposed to pay the shareholders an extraordinary dividend from the Kodak proceeds, and to manage the company more tightly. Polaroid’s management wanted to reinvest the proceeds in the business. To fend off the takeover threat, the firm conducted a leveraged recapitalization which involved the innovative use of an employee stock ownership plan (ESOP). The leveraged recap dramatically increased the firm’s debt to capital ratio from zero in 1988 to 56 percent in 1989. Shortly thereafter, the firm began a program of steady share repurchases. Despite the repurchase program, long-term debt to capital fell to 42 percent by 1995. Exhibit 1 gives a 10-year summary of the financial characteristics of the firm. Over the past 10 years, the firm’s share price growth had lagged the growth in the broad market indexes. From 1986 to 1995, Polaroid’s compound annual sales growth rate was 3. 6 percent in nominal terms, and after adjusting for inflation, virtually zero. Earnings losses appeared in 1988, 1993, and 1995, and were associated with both declines in operating Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e VI. Management of the Corporate Capital Structure 31. Polaroid Corporation, 1996  © The McGraw? Hill Companies, 2003 Recent Financial Performance 407 profit, and restructuring costs (consisting of both severance payments and write-offs). The sales and earnings results reflected the growing maturity of the instant photography market in the United States and the absence of major new-product introductions. Consistent with the perceived maturity of their market segment, Polaroid’s price-earnings (P/E) ratio of 12. 1 fell well below the market’s P/E of 15. 2 in 1995. The concerns over profitability and the lack of strong sales growth in cameras and film were also echoed in the comments of analysts following the firm. One analyst described Polaroid’s challenge: Instant photography is a razor blade business. Cameras are sold at low margins to encourage film sales. The company’s instant film sales are its primary margin product. Expanding the â€Å"installed base† of camera enhances the opportunities to sell film. The â€Å"burn rate† of film on newly purchased cameras, as might be expected, is highest and trails off in a reasonable predictable pattern thereafter. This correlation allows the company to make reasonable estimates of film unit sales volume. It also, obviously, means that there is a strong emphasis on selling cameras. 1 The patents the company held protected it from any significant competition domestically in the field of instant photography. In international markets, Polaroid’s only competitor was Fuji, who had a film and instant-camera product it marketed in Europe and Japan. However, even in Japan, Polaroid enjoyed a dominant market share. Thus, in the consumer market, Polaroid’s strength for instant photography was unrivaled. In the commercial market, Polaroid’s sales derived primarily from the use of instant photography for identification purposes (e. g. , ID badges), and other applications in medicine and law enforcement. Increasingly the expansion of digital imaging threatened to erode the firm’s base of users, as customers shifted from instant photography to digital solutions. In recent years, Polaroid’s Commercial Group accounted for approximately half of its total sales and one-third of instant-film sales. 2 In the digital area, Polaroid faced stiff competition from many wellcapitalized technology companies, such as Xerox, 3M, and Sony. To date, Polaroid’s development efforts in digital imaging had entailed heavy start-up costs. Norwood acknowledged many of the same concerns, but felt that the analyst community had taken a shortsighted view of Polaroid’s potential. Echoing its past, the firm continued to be â€Å"engaged primarily in one line of business, the design, manufacture, and sale of instant photographic imaging products worldwide,†3 with photographic products accounting for 90 percent of the firm’s revenues in 1995. Norwood said, â€Å"The basic business is low growth; but it’s an incredible annuity. † Second, sales to international markets had strong growth potential. In many emerging-market countries, no infrastructure existed to develop 35-mm film. With rising standards of living worldwide, there was a large untapped market for instant photography, and Polaroid’s cameras were in high demand. Exhibit 2 illuminates the growth in international revenues. The percentage mix of U. S. versus international sales had almost precisely reversed from 1993 to 1995. This reversal reflected steady growth in the international segment of between 3 and 8 percent per year. In contrast, sales 1 Duff Phelps Credit Rating Report, Polaroid Corporation, Duff Phelps, Inc. , November 18, 1996, page 2. Polaroid—Company Report, Prudential Securities, December, 4, 1996, page 4. 3 Polaroid Annual Report 1995, page 44. 2 Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e 408 VI. Management of the Corporate Capital Structure 31. Polaroid Corporation, 1996  © The McGraw? Hill Companies, 2003 Case 31: Polaroid Corporation, 1996 in the United States had fallen 2 percent in 1994 and 12 percent in 1995. Sales to Russia alone accounted for 9 percent of total sales in 1995. Exhibits 3 and 4 give the latest year’s income statement and balance sheet for Polaroid. CURRENT FINANCING AND FUTURE OUTLOOK Against this backdrop, Norwood assessed the current and future financing requirements of the firm. One important issue for consideration was the extent to which the financing of the firm would be impacted by the plans of the new CEO. Gary DiCamillo was appointed Polaroid’s chairman and CEO following a successful term as president of Black Decker’s PowerTools unit. At Black Decker, DiCamillo was viewed as an energetic leader, whose efforts were instrumental in developing a line of new products that helped to revive Black Decker’s brand name. DiCamillo brought similar energy and plans to Polaroid. Shortly after his arrival, he announced a major restructuring of the firm, to reduce the workforce by some 2,500 positions (roughly 20 percent), and to reduce expenses by more than $150 million annually. In particular, he terminated the production of the Captiva camera, and curtailed several major research and engineering programs, emphasizing instead projects having the greatest potential for commercialization. Finally, he sharply reduced corporate overhead costs. The effect of this restructuring was to trigger a special charge to earnings in 1995 of $247 million caused by the severance and early retirement programs, and by the write-down of equipment and inventory. As a result, Polaroid reported a net loss of $140. 2 million, compared with 1994 earnings of $117. 2 million. In February 1996, DiCamillo announced a new management structure built around three core areas: Consumer, Commercial, and New Business. The purpose of the new structure was to focus the organization more effectively on customers’ imaging needs, and to integrate product development responsibilities within each group. DiCamillo wrote: Both the restructuring and reorganization reflect my conviction that we can grow our core photographic and emerging electronic imaging businesses. I believe we can leverage our considerable brand power, technological expertise, and global distribution reach to create new growth opportunities and revitalize our instant photography business. 4 To meet its various financing needs, Polaroid maintained a five-year $150 million working capital line of credit to be used for general purposes. This line was to expire in 1999. In 1994 and 1995 there had been no borrowings under this line. The company maintained international lines of credit to support the firm’s foreign currency balance sheet exposure. At the end of 1995, borrowings outside the United States were $160. 4 million. Additional unused borrowings under these lines of credit were $160 million. Polaroid’s long-term debt outstanding consisted of three issues: †¢ Notes: $150 million, 7. 25 percent notes due January 15, 1997, had been issued at a discount (to yield 7. 42 percent); $200 million, 8 percent notes were due March 15, 1999, 4 Quoted from Letter to Shareholders, Polaroid Annual Report 1995, page 3. Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e VI. Management of the Corporate Capital Structure 31. Polaroid Corporation, 1996  © The McGraw? Hill Companies, 2003 Current Financing and Future Outlook 409 and had been issued with a discount to yield 8. 18 percent. Both issues of notes were noncallable. †¢ ESOP Loan: The loan had been drawn in 1988 to establish Polaroid’s leveraged employee stock ownership plan (ESOP), as part of the leveraged recapitalization of the firm. Scheduled principal payments were made semiannually through 1997 when a final payment of $37. 7 million was due. The weighted average interest rate on the loan was 5. 2 percent, 4. 4 percent, and 3. 6 percent during 1995, 1994, and 1993 respectively. Special tax benefits to providers of ESOP loans accounted for the unusually low interest rates. †¢ Convertible Subordinated Debentures: $140 million, 8 percent convertibles due in 2001. These carried an annual interest rate of 8 percent, and were convertible to common stock at $32. 50 per share. These were redeemable by the company after September 30, 1998, or sooner if the stock price exceeded $48. 75 per share for 20 of 30 consecutive trading days. All of the debentures were held by Corporate Partners. 5 Virtually all of the firm’s debt was due within six years. As Ralph Norwood commented, â€Å"The weighted average maturity structure of our debt was about four years. All our borrowings would need to be repaid or refinanced in a relatively short time. † Exhibit 5 illustrates the estimation of Polaroid’s weighted average maturity of its debt. In addition to the scheduled debt repayments, Ralph Norwood reviewed other possible demands on the firm’s resources. He believed that capital expenditures would about equal depreciation for the next few years. Also, though sales might grow, working capital turns should decline, resulting in a reduction in net working capital in the first year, followed by increases later. Both of these effects reflected the tight asset management under the new CEO. While cash dividends would be held constant for the foreseeable future, the firm would continue with its program of opportunistic share repurchases, which had varied between $20 and $60 million per year. Exhibit 1 summarizes the firm’s share repurchase activity in recent years. Exhibit 6 gives a five-year forecast of Polaroid’s income statement and balance sheet. This forecast was consistent with the lower end of analysts’ projections for revenue growth and realization of the benefits of DiCamillo’s restructuring program. It assumed that the existing debt would be refinanced with similar debt. Major share repurchases were not presumed in the forecast. The forecast would need to be revised to reflect the impact of any recommended changes in financial policy. CONSIDERATIONS IN ASSESSING FINANCIAL POLICY In addition to assessing the firm’s internal financing requirements, Norwood also recognized that his policy recommendation would have an important role in shaping the perceptions of the firm by the bond-rating agencies and investors. 5 If the rights were fully exercised, the resulting stock would represent approximately a 9 percent stake in Polaroid. The company was currently attempting to negotiate the repurchase of the conversion rights from Corporate Partners. On March 29, 1996, Polaroid’s share price closed at $44. 00. The annualized volatility or â€Å"sigma† of returns on Polaroid’s shares over the previous 100 days was 17. 7 percent. The yield on six-year U. S. Treasury Notes was 6. 05 percent. Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e 410 VI. Management of the Corporate Capital Structure 31. Polaroid Corporation, 1996  © The McGraw? Hill Companies, 2003 Case 31: Polaroid Corporation, 1996 †¢ Bond Rating. Polaroid currently had a â€Å"split† rating where Standard Poor’s rated the firm’s senior6 long-term debt BBB and Moody’s rated it Baa3, (roughly equivalent to a BBB? in the Standard Poor’s system). Exhibit 7 presents the bond-rating definitions for this and other rating categories. BBB/Baa3 was an â€Å"investment-grade† rating, whereas the next rating grade lower (BB/Ba) was â€Å"noninvestment grade† and often referred to as â€Å"high yield or junk debt. † Some large investors (such as pension funds and charitable trusts) were barred from investing in noninvestment-grade debt. Many individual investors shunned it as well. For that reason, the yields on noninvestment-grade debt over U. S. Treasury securities (i. e. , spreads) were typically considerably higher than the spreads for investment-grade issues. Also, the ability to issue noninvestment-grade debt depended to a much greater degree on the strength of the economy, and on favorable credit market conditions than did investment-grade debt. Norwood said: You don’t pay much of a penalty in yield as you go from A to BBB. There’s a range over which the risk you take for more leverage is de minimus. But you pay a big penalty as you go from BBB to BB. The penalty is not only in the form of higher costs, but also in the form of possible damage to the Polaroid brand. We don’t want the brand to be sullied by the association with junk debt. For these reasons, Ralph Norwood sought to preserve an investment-grade rating for Polaroid. But where in the investment grade range should Polaroid be positioned? Exhibit 8 summarizes the bond ratings for a sample of Polaroid’s peer firms, which Norwood described as â€Å"large global consumer technology products companies,† and for a large sample of firms in general. Exhibit 9 gives financial ratios associated with the various rating categories. Although Norwood knew the ratings agencies looked closely at the debt to capital ratio (â€Å"debt capitalization†), he believed that the EBIT Coverage ratio was also a good measure of credit quality. Exhibit 10 gives Polaroid’s EBIT coverage ratios for the past 10 years. Norwood’s decision would require him to first choose a target bond rating. Thereafter, he would have to determine the minimum and maximum amounts of debt that Polaroid could carry to achieve the desired rating. Flexibility. Norwood was also aware that choosing a target debt level based on an analy†¢ sis of industry peers might not fully capture the flexibility Polaroid would need to meet its own possible future adversities. Norwood said: Flexibility is how much debt you can issue before you lose the investment-grade bond rating. I want flexibility, and yet I want to take advantage of the fact that with more debt, you have lower cost capital. I am very comfortable with our strategy and internal financial forecasts for our business; if anything, I believe the forecasts probably underestimate, rather than overestimate our cash flows. But let’s suppose that a two-sigma adverse outcome would be an EBIT equal to $150 million—I can’t imagine in the worst of times an EBIT less than that. Accordingly, Norwood’s final decision on the target bond rating would have to be one that maintained reasonable reserves against Polaroid’s worst-case scenario. 6 The convention in finance is that the â€Å"firm’s bond rating† refers to the rating on the firm’s senior debt, with the understanding that any subordinated debt issued by the firm will ordinarily have a lower bond rating. For instance, Polaroid’s senior debt had the split BBB/Baa3 rating, while its subordinated convertible bonds were rated BB/Ba. Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e VI. Management of the Corporate Capital Structure 31. Polaroid Corporation, 1996  © The McGraw? Hill Companies, 2003 Considerations in Assessing Financial Policy 411 †¢ Cost of Capital. Consistent with management’s emphasis on value creation, Norwood believed that choosing a financial policy that minimized the cost of capital was important. He understood that exploitation of debt tax shields could create value for shareholders—up to a reasonable limit, and that beyond the limit, costs of financial distress would become material, and cause the cost of capital to rise. One investment bank, Hudson Guaranty, presented Norwood with estimates of the pretax cost of debt and cost of equity by rating category. These estimates are given in Exhibit 11. The cost of debt was estimated by averaging the current yield-to-maturity of bonds within each rating category. The cost of equity (ke) was estimated by Hudson Guaranty using the Capital Asset Pricing Model. The cost of equity was computed for each firm using its beta and other capital market data. The individual estimates of ke were then averaged within each bondrating category. Norwood remarked on the relatively flat trend in the cost of equity within the investment-grade range. Hudson Guaranty replied that â€Å"changes in leverage within the investment-grade range are not regarded as material to investors. † It remained for Norwood to determine which rating category provided the lowest costs of capital. Current Capital-Market Conditions. Any policy recommendations would need to ac†¢ knowledge the feasibility of implementing those policies today as well as in the future. Exhibit 12 presents information about current yields in the U. S. debt markets. The current situation in the debt markets was favorable as the U. S. economy continued in its fifth year of economic expansion. The equity markets seemed to be pausing after a phenomenal advance in prices in 1995. The outlook for interest rates was stable, though any sign of inflation might cause the Federal Reserve Board to lift interest rates. Major changes in taxes and regulations were in abeyance, at least until the outcome of the presidential elections to be held in November 1996. CONCLUSION Ralph Norwood leafed through the analyses and financial data he had gathered for his recommendations. He reflected on the competing goals of value creation, flexibility, and bond rating. His plan would have to afford Polaroid low costs and continued access to capital under a variety of operating scenarios. This would require him to test the possible effect of downside scenarios on Polaroid’s coverage and capitalization ratios under alternative debt policies. He aimed to recommend a financial policy that would balance these goals and provide guidance to the directors and the financial staff regarding the target mix of capital and the maturity structure of the company’s debt. With so many competing factors to weigh, Norwood felt it unlikely that his plan would be a â€Å"perfect plan. † But then he remembered one of Gary DiCamillo’s favorite sayings: â€Å"If you wait until you have a 99 percent solution, you’ll never act; go with an 80 percent solution. † 412 167. 9 $132. 7 42. 3% 19. 6% $47. 38 615. 93 12. 1 15. 2 3. 01 1. 05 6. 88% 5. 49% 33. 00% Addns. to property plant and equip. Depreciation Book value LT debt/capital Market value LT debt/capital Selected Valuation Information (at years’ ends) Polaroid stock price SP 500 Index Polaroid average P/E (1) SP Industrials Average P/E (1) Polaroid market/book ratio Polaroid beta Yield on 30-Year T-bonds Yield on 90-day T-bills Total annual return on large co. stocks $32. 50 459. 27 13. 3 15. 5 1. 73 1. 05 7. 37% 4. 25% 1. 30% 146. 7 $118. 2 39. 6% 27. 5% $ 886. 8 747. 3 2,316. 7 566. 0 0. 0 864. 4 $2. 49 $0. 60 $33. 50 466. 25 15. 6 18. 4 2. 04 1. 15 6. 59% 3. 00% 9. 90% 165. 6 $100. 3 44. 0% 27. 8% $ 833. 6 718. 2 2,212. 3 602. 3 0. 0 767. 3 -$1. 10 $0. 60 46,806 0 $0. 0 138 $1,178. 8 1,066. 1 2,244. 9 2,059. 5 185. 4 44. 0 47. 9 -51. 3 1993 $31. 13 435. 71 14. 2 19. 8 1. 80 1. 15 7. 67% 3. 43% 7. 67% 201. 5 $89. 1 44. 1% 30. 5% $ 789. 0 657. 3 2,008. 1 637. 4 0. 0 808. 9 $2. 06 $0. 60 46,668 2,258 $63. 4 7 $1,145. 7 1,006. 6 2,152. 3 1,938. 5 213. 8 0. 0 58. 5 99. 0 1992 $26. 63 417. 09 12. 2 19 1. 69 1. 20 8. 14% 5. 38% 30. 55% 175. 8 $85. 5 37. 9% 26. 6% $ 695. 3 549. 4 1,889. 3 471. 8 0. 0 772. 9 $12. 54 $0. 60 48,919 1,151 $30. 6 0 $1,113. 6 957. 0 2,070. 6 1,824. 0 246. 6 0. 0 58. 4 683. 7 1991 $23. 38 330. 22 15. 6 14. 4 5. 63 1. 25 8. 61% 7. 50% -3. 17% 120. 9 $87. 2 48. 0% 25. 3% $ 609. 1 461. 0 1,701. 3 513. 8 348. 6 207. 7 $2. 20 $0. 60 50,070 2,040 $55. 6 0 $1,058. 3 913. 4 1,971. 7 1,687. 4 284. 3 0. 0 81. 3 151. 0 1990 $22. 88 353. 40 21. 8 12. 6 8. 01 1. 25 8. 45% 8. 11% 31. 49% 94. 5 $87. 4 56. 1% 28. 5% $ 642. 0 430. 9 1,776. 7 602. 2 321. 9 148. 8 $1. 96 $0. 60 52,110 19,525 $950. 6 0 $1,091. 8 812. 9 1,904. 7 1,600. 5 304. 2 40. 5 86. 2 145. 0 1989 $18. 38 277. 72 NMF 10. 8 1. 30 1. 25 8. 96% 6. 67% 18. 81% 127. 0 $81. 9 28. 5% 23. 4% $ 980. 0 433. 8 1,957. 2 402. 3 0. 0 1,011. 5 -$0. 34 $0. 60 71,635 0 $0. 0 9,717 $1,048. 3 814. 6 1,862. 9 1,689. 1 173. 8 151. 9 29. 0 -22. 6 1988 $11. 88 247. 08 14. 7 15. 3 0. 70 1. 20 8. 59% 5. 78% 5. 23% 116. 6 $75. 7 0. 0% 0. 0% $ 652. 6 359. 6 1,599. 4 0. 0 0. 0 1,048. 2 $2. 02 $0. 60 61,918 0 $0. 0 0 $1,009. 3 754. 6 1,763. 9 1,610. 1 153. 8 0. 0 15. 0 125. 2 1987 $33. 25 242. 17 16. 6 17. 5 2. 14 1. 10 7. 80% 5. 97% 18. 47% 82. 9 $71. 2 0. 0% 0. 0% $ 602. 4 357. 7 1,444. 6 0. 0 0. 0 960. 1 $1. 75 $0. 50 61,918 0 $0. 0 0 $964. 3 664. 9 1,629. 2 1,493. 5 135. 7 0. 0 18. 6 108. 2 1986 31. Polaroid Corporation, 1996 Notes: 1. P/E ratios are computed on earnings before restructuring charges, litigation award, and other extraordinary items. Sources: Polaroid Annual Report 1995, Value Line Investment Survey, Federal Reserve Bulletin, Standard Poor’s Current Statistics, Ibbotson Associates Stocks, Bonds Bills, Inflation 1995. $ 738. 5 691. 0 2,261. 8 526. 7 0. 0 717. 7 -$3. 09 $0. 60 Earnings per share Dividend per share 45,998 941 $30. 6 133 $1,160. 3 1,152. 2 2,312. 5 2,112. 2 200. 3 0. 0 46. 6 117. 2 1994 VI. Management of the Corporate Capital Structure Selected Balance Sheet Information Working capital Net property, plant equipment Total assets Long-term debt (LTD) Redeemable preferred stock Common stockholders’ equity 45,533 1,218 $40. 2 753 $1,019. 0 1,217. 9 2,236. 9 2,147. 7 89. 2 247. 0 52. 1 -140. 2 1995 Common shares, end of year (000s) Common shares repurchased (000s) Repurchase outlay ($ millions) Common shares issued (000s) Selected Income Statement Information Net sales U. S. International Total Operating expenses Profit from opns. before restructuring exp. Restructuring expense Interest expense Net earnings At fiscal year ended December 31 EXHIBIT 1 Ten-Year Financial Summary (in U. S. $ millions except per-share values and numbers of shares) Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e  © The McGraw? Hill Companies, 2003 Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e VI. Management of the Corporate Capital Structure  © The McGraw? Hill Companies, 2003 31. Polaroid Corporation, 1996 Conclusion 413 EXHIBIT 2 Information on International Revenues Mix of Polaroid Revenues (U. S. versus International) Percent of Total Sales 60 55 50 45 40 35 1986 1990 1995 U. S. Revenues (%) International Revenues (%) Source of graph data: Polaroid Annual Report 1995, pp. 48–49. Estimated Quarterly Polaroid Sales to Russia ($ millions) 1993 1994 1995 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Full Year 0 0 $10 m 10 $20 m $22 m 24 51 57 $154 m $38 m 35 74 49 $196 m Source: B. L. Landry, â€Å"Polaroid—Company Report† Morgan Stanley Co. October 25, 1996 Performance by Geographic Segment ($ millions, eliminations of interregional amounts not shown) 1993 1994 1995 Sales: U. S. Europe Asia Pacific, Canada, Latin and South America $1,609. 6 945. 2 524. 7 $1,656. 6 1,051. 7 531. 1 $1,498. 4 1,106. 9 602. 4 Profits/(loss): U. S. Europe Asia Pacific, Canada, Latin and South America $ 44. 1 43. 7 56. 8 $ 100. 8 81. 8 45. 2 $ (179. 4) 20. 6 24. 4 Assets: U. S. Europe Asia Pacific, Canada, Latin and South America $1,532. 7 556. 0 216. 9 $1,480. 5 613. 8 248. 1 $1,526. 1 669. 9 258. 4 Source: Polaroid Annual Report 1995, page 45. Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e 414 VI. Management of the Corporate Capital Structure  © The McGraw? Hill Companies, 2003 31. Polaroid Corporation, 1996 Case 31: Polaroid Corporation, 1996 EXHIBIT 3 Income Statement: Consolidated Statement of Earnings (in $ millions) Years Ended December 31 1995 Net sales United States International Total net sales 1994 $1,019. 0 1,217. 9 2,236. 9 $1,160. 3 1,152. 2 2,312. 5 Cost of goods sold Marketing, research, admin. Restructuring other. Total costs Profit/(loss) from operations 1,298. 6 849. 1 247. 0 2,394. 7 (157. 8) 1,324. 2 788. 0 0. 0 2,122. 2 200. 3 Interest income Other income Interest expense Earnings/(loss) before taxes Tax expense Net earnings/(loss) 8. 7 (0. 2) 52. 1 (201. 4) (61. 2) (140. 2) Source: Polaroid Annual Report 1995. 9. 7 (2. 7) 46. 6 160. 7 43. 5 117. 2 Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e VI. Management of the Corporate Capital Structure  © The McGraw? Hill Companies, 2003 31. Polaroid Corporation, 1996 Conclusion 415 EXHIBIT 4 Balance Sheet (in $ millions) 1995 Assets Current assets Cash and cash equivalents Short-term investments Receivables, less allowances Inventories Prepaid expenses and other Total current assets Gross property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Prepaid taxes—non-current Total assets Liabilities and Stockholders’ Equity Current liabilities Short-term debt Current portion of long-term debt Payables and acrruals Compensation benefits Taxes payable Total current liabilities Long-term debt Accrued postretirement benefits Accrued postemployment benefits Total liabilities Preferred stock Common stockholders’ equity Common Stock Additional paid-in capital Retained earnings Less treasury stock, at cost Less deferred compensation Total common stockholders equity Total liabilities and stockholders’ equity Source: Polaroid Annual Report 1995. 1994 $ 73. 3 9. 8 550. 4 615. 5 208. 5 1,457. 5 2,164. 4 1,473. 4 691. 0 113. 3 $2,261. 8 $ 143. 3 85. 6 541. 0 577. 4 141. 4 1,488. 7 2,043. 4 1,296. 1 747. 3 80. 7 $2,316. 7 $ 160. 4 39. 7 274. 9 197. 4 46. 6 719. 0 526. 7 257. 2 41. 2 $1,544. 1 0. 0 $ 117. 1 35. 9 275. 7 121. 4 51. 8 601. 9 566. 0 247. 2 37. 2 $1,452. 3 0. 0 $ $ 75. 4 401. 9 1,525. 8 1,205. 4 80. 0 717. 7 $2,261. 8 75. 4 387. 2 1,692. 1 1,174. 5 115. 8 864. 4 $2,316. 7 Bruner: Case Studies in Finance: Managing for Corporate Value Creation, 4/e VI. Management of the Corporate Capital Structure  © The McGraw? Hill Companies, 2003 31. Polaroid Corporation, 1996 EXHIBIT 5 Maturity Structure of Debt Debt Repayment ($ millions) 1996 1997 1998 1999 2000 2001 Total Debt Repayment (% of total) $ 39. 7 187. 8 0 200. 0 0 140. 0 $567. 5 Maturity (years) 7. 0% 33. 0 0 35. 0 0 25. 0 100%