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. 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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%

Chaos Theory Studying and Developments

Introduction Chaos theory is a mathematical domain, with applications in various areas of study including economics, biology, philosophy, engineering and physics (Krist 12).Advertising We will write a custom research paper sample on Chaos Theory Studying and Developments specifically for you for only $16.05 $11/page Learn More Chaos theory determines inherent behaviour and characteristics of dynamical entities that are predominantly sensitive to initial conditions, an occurrence known as the butterfly effect. Any slight change in initial conditions such as errors in mathematical computation produces divergent results for such dynamical systems (Krist 14). Such a scenario makes it difficult to generate long-term predictions in general. The future of dynamical systems largely depends on initial conditions without involvement of random factors or elements (Krist 17). This makes the systems unpredictable. Such scenarios qualify as deterministic chaos. Chaoti c tendencies manifest in several natural systems. For instance, weather patterns are usually chaotic and unpredictable. For instance, mathematical model and Poincare maps help to achieve such results (Krist 23). A chaotic dynamical system must possess several characteristics. The system must conform to the reality surrounding the immediate conditions. It must integrate all topological factors and circumstances. The system must have dense periodic orbits. There must be conditions that act contrary to established original conditions. Chaos theory explains the rationale of chaotic events in the world. This theory explains why certain things happen the way they do. Discussion Henri Poincare initially proposed chaos theory in 1880s. He discovered that there were orbits that did not show consistency in their characteristic behaviour. Mathematicians formulated a large portion of this theory (Krist 27). Early theorists called it ergodic theory. Later studies centred on basic principles of p hysics. They majored on turbulence, astronomy, engineering, and tri-body problem. During early days of these studies, there was no clear understanding on the topic of inconsistent planetary movement. However, there was slight knowledge on the issue relating to turbulence in the movement of liquids (Skiadas 35). Researchers had knowledge on alternate movements in radio circuits. However, they did not have any theory to explain these occurrences. The subsequent developments presented an opportunity for them to expound on their earlier studies (Skiadas 41).Advertising Looking for research paper on philosophy? Let's see if we can help you! Get your first paper with 15% OFF Learn More The studies gained acceptance after scholars realized that linear theory could not account trends observed in various experiments (Skiadas 44). The area of study encompassed minor incidents that proved irrelevant in earlier theories. The studies accelerated with the advent of the electronic co mputer. The mathematical inferences in the theory were difficult to solve using manual procedures. Therefore, computers simplified the work involved in solving such procedures (Skiadas 44). Edward Lorenz contributed in the development of knowledge through extensive research on climatic trends and manifestations. Edward used a digital computer to simulate data. He achieved this by adding cumulative data to produce successive results (Skiadas 45). He realized that the digital computer produced varying results. He rightly attributed these results to the accuracy of the computer. However, critics argued that these inferences were minute and inconsequential. Lorenz had established relationship between minute changes and eventual outcomes. This discovery proved that atmospheric experiments lacked the capacity to generate accurate climatic predictions (Skiadas 47). Chaos theory provided a clear roadmap for understanding and determining weather patterns over certain duration. It presented p ossibilities for various forms of research and understanding on natural chaotic situations. Through it, complex situations acquired meaning and sense (Williams 63). Scientists use it to investigate natural occurrences with a view to gather inferential data that helps to derive accurate deductions. Chaos theory is useful in understanding chaotic situations that influence the quality of human existence (Williams 65). However, the initial theory could not offer conclusive solutions to natural chaotic events. It had several loopholes that increased its vulnerability to inaccuracy. It affected the quality of life and changed people’s perception on things that occurred around them (Williams 71). Chaotic tendencies manifest in various occurrences such as electric circuits, laser equipments, and fluid reactions. Natural manifestations of chaotic behaviour include weather patterns, trends in the solar system, ecological changes, and molecular activity (Williams 75). Chaos theory influ ences various areas of modern existence. For instance, it is instrumental in the ongoing research related to epilepsy. Chaos theory continues to influence various aspects in contemporary life situations. For instance, movies and literature show the influence of this development on modern life. The study of chaos theory has affected various aspects of social life. The theory has intensified the development of modern technologies that are necessary for improved and better living. Therefore, people understand various aspects that define modern living (Williams 77).Advertising We will write a custom research paper sample on Chaos Theory Studying and Developments specifically for you for only $16.05 $11/page Learn More The theory shaped lives of people during the period it conceptualized. People understood the various natural occurrences and their effects on human existence. Through this development, people directed more attention to things that seemed irrel evant. For instance, people took keen interest on minor climatic changes that manifested in daily life. Such understanding was critical for enhancing constructive discourse on matters that related to human existence (Williams 78). The theory catapulted scientific discourse to new heights. Its formulation contributed to the business success. Many business enthusiasts capitalized on its development to initiate innovative business ventures that experienced monumental and unprecedented success (Vierling 21). The contributions occasioned by the development of this theory were instrumental in determining the course of history. Subsequent scholars formulated advanced theories based on the initial principles and rationale of this theory. Various fields of study continue to draw inspiration from the basic principles of this theory. With the advent of advanced technology, society has benefited from this development. Technology enables the advanced exploitation of basic theoretical principles embodied in the theory (Vierling 24). Modern life would be different without chaos theory. It would be difficult for people to understand the events that manifest in daily life situations. Absence of this theory would affect people’s perception of natural occurrences that define daily lives in modern world (Vierling 26). For instance, it would be difficult for people to make sense of events that are beyond human understanding. Such events influence the way people conduct themselves in reaction to natural occurrences. The contributions of this area of knowledge are numerous and immeasurable (Vierling 27). Without this knowledge, the world would rank lower in areas of social and technological advancements. Conclusion It is very important that we study this theoretical discourse. By understanding it, we acquire knowledge on how minute events influence bigger events that shape modern living. By studying this theory, we fathom the various developmental stages that have shaped and determined modern technological advancements. Therefore, it consolidates various efforts that resulted into deeper understanding of natural occurrences (Vierling 34). By studying this theory, we appreciate the role of science in enhancing development and advancing favourable innovations. Chaos theory explains the rationale of chaotic events in the world. This explains why certain things happen the way they do. Developments around this area continue to influence modern trends in science and technology. The advancements of chaos theory remain a critical influence on contemporary life.Advertising Looking for research paper on philosophy? Let's see if we can help you! Get your first paper with 15% OFF Learn More Works Cited Krist, Gary. Chaos Theory. London: Jove Books, 2001. Print. Skiadas, Christos. Chaos Theory: Modelling, Simulation and Applications. London: World Scientific, 2011. Print. Vierling, Matthew. Chaos Theory: A Novel of Psychological Suspense. New York: Universal Press, 2003. Print. Williams, Garnett. Chaos Theory Tamed. London: Joseph Henry Press, 1997. Print. This research paper on Chaos Theory Studying and Developments was written and submitted by user Cl0ud9 to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Mise En Scene in Manhattan essays

Mise En Scene in Manhattan essays This past week I watched Woody Allens Manhattan and was blown away from his full use of the frame throughout the movie. This may be a bit of a biased view since I am a fan of nearly every movie Woody has made, but watching this movie with special attention to mise en scene made me feel reaffirmed on what a great filmmaker I think he is. I had read in the book, Woody Allen on Woody Allen that there is a clause in the studio's contract that says that this film must always be shown in letterbox format in any home video or broadcast. Having read this, it was obvious that he did not want anything cut from the picture and he was going to be using the full frame. IMDB.com states that this is his first and, to date, only film shot using the 2.35:1 anamorphic Panavision process. This movie is shot entirely in black and white. This combined with Gershwins score gives New York a fairytale-like quality in the film. Manhattan itself becomes a character in the movie. The title of the movie is taken off of a street sign that blinks Manhattan as we are first brought into the movie with Isaacs monologue over shots with no actors, just location shots further establishing New York City as a character. Several outdoor scenes are shot from long distance causing the actors to be seen really small on the screen and allowing the city itself to fill the frame. In many of these scenes, the characters themselves arent even centered in the frame, leaving the city to be the dominant thing our eyes are attracted to. In the scene where Isaac (Woody Allen) and Mary (Diane Keaton) are sitting on the park bench after walking and talking throughout the city, we see the two of them staged on the bench on the far right corner of the screen, in front of the 58th St. Bridge. Th e bridge is in the center of the frame and we also see that it is dawn and they have been up walking and talking all night. We have th...

Appeal to Review the Diabetes Assignment Essay Example | Topics and Well Written Essays - 250 words

Appeal to Review the Diabetes Assignment - Essay Example Let me first take this opportunity to sincerely thank you for being of great assistance to me during the entire course of taking Episodes of Nursing Practice. You had been very patient and inspiring, as a mentor, instructor, and counselor.I was obviously pleased to meet you yesterday, and I was very pleased with the information that helped to highlight the most important lessons about acute renal failure. The theories and knowledge that you provided made it easily to understand the minute threads as I pursue the course through home study. Based on our discussion yesterday about the recent assignment on diabetes, I respectfully thank you for giving me hope at possibly improving my mark. I blame myself first about the mark that was generated and relayed to me, thinking all that while that I did well during the semester. However, I honestly believe that I think I deserve to have a higher mark given the efforts, commitment and dedication that I applied to this course.I hope you will give a second look at my assignment and relay your feedback to enable me to address my weaknesses and be able to improve in my future academic courses. I am hereby uploading the assignment for your review and evaluation.You will remain to be one of my best instructors who have given me the needed support and guidance through these academic challenges. Your teaching style inspires me to continue my studies and to complete the program to enable me to achieve my personal and professional goals.

Alexander the Great--Vision beyond Conquests Essay

Alexander the Great--Vision beyond Conquests - Essay Example During the years of his fearless and ferocious life span, Alexander conquered almost a quarter of the earth’s total land surface area in a very young age. The world knows him only to be the war heroic icon; however, the actions and initiatives he had undertaken for the battles and the strategies he had framed for them reflect the political structure of the then western countries and the subsequent changes in the trends of administrative as well as cultural aspects in the past. This essay will focus on the merits and influence of the Great Alexander’s imperial majesty through an evaluation of events and incidents and their positive effects on the world history of politics and culture consisting of ancient European and West Asian provinces centered by the Roman regime. A comprehensive study of his warfare tactics and military surveillance strategy hopefully gives the best effect of the required material literature. The Making of a Conqueror Alexander, who was born to King Philip II of Macedonia and Princess Olympia in 356BC, was much luckier than a normal prince to see his father’s consecutive victories and continuous strive for administrative excellence. An otherwise wise Alexander was a genius in all the fields he had been trained by Aristotle, the great Greek philosopher. In his early teenage itself, he became a scholar of science, medicine, literature and philosophy, which later helped him in turning to a complete military think-tank. The incredible achievement streak of Alexander’s imperial life had a rather fantastic inception with his successful undertaking of his father’s army against the rebels of Thrace through a swift and successful power demonstration. Alexander’s thirst for supremacy over the entire European provinces then led him through conquering Greece and Illyria before he set his aim on Asia Minor. All through the battles fought against the powers across the southern belt of Asia Minor, Alexander had to face the resistance of the Greek army and entered the invincible Gordium. It is said that, â€Å"Alexander knew the legend that the man who could untie the ancient knot was destined to rule the entire world† (Alexander of Macedonia). Based on this fundamental approach, Alexander captured the power of Persia and began the expedition to the Asian mainland with an invasion through the Issus pass in northwestern Syria. The major credits from his philosophical abilities and the definite levels of leadership skills helped him unite and raise the morale of soldiers of the armies of all the countries he conquered. Marching towards the Persian Empire was not easy for him as expected with Darius’ mammoth number of soldiers blocking his way, but at the end of the Battle of Issus, success turned the Macedonian way. From then, the path became easy for him to Syria and Phoenicia except for a considerable amount of resistance from the city of Tyre, which he eventually defeated and c ontinued the expedition towards Egypt. The Spiritual Line The entry to Egypt was in fact the most specific period of Alexander’s time, as he had a spiritual route to the Egyptian culture. The passionate natives even believed him to be the divine ruler descended as their God’s own son. According to certain findings, â€Å"Alexander no doubt won great popularity with the Egyptians by conducting proper,