The Battle Of The Vietnam War - 1444 Words

me may say the war in Vietnam was fought over the topic of pride; others say it was a useless war that served no purpose. Regardless of the meaning behind it, we cannot forget the soldiers that lived through it and the hardships they faced afterwards. A soldiers hardships are felt through their body, mind, and soul. The Vietnamese war has impacted all veterans with physical scars, emotional breakdowns, or spiritual growth; these are the three mementos that are usually brought back from war and have everlasting effects on their everyday lives. The most common injury resulting from war, is physical injury. Flesh wounds, amputations, diseases; these can be categorized as physical injuries. A vital contributor to these injuries is a chemical called Agent Orange. â€Å"Agent Orange is derived from an herbi- cide called dioxin, which was used in Vietnam extensively in the areas that had foliage.† (Ybarra, Pg.126) This chemical was created with the intention of repelling insects from soldiers at war; however, it had long-standing effects on soldier’s bodies even after the war. Soldiers exposed to Agent Orange revealed similar symptoms, including; â€Å"reproduction and development effects, depression of the immune system, severe skin conditions such as chloracne, and cancers† (Palmer, Pg.174). Soldier ray quotes â€Å"I started getting worse and worse, big old rashes on my head, on my private parts, on my toes, on my ï ¬ ngers, everywhere.† This statement is consistent with the article, in thatShow MoreRelatedThe Battle Of The Vietnam War1613 Words   |  7 Pagesthat is taking to a battle ground were an estimated 2000 enemy troops are awaiting your arrival. You know you are heavily outnumbered but regardless you have a mission to complete. The lives of your subordinates sit in the brink as they are counting on your ability to make split second decisions, employ meticulously devised tactics, and give precise orders. These are the challenges Lieutenant General Harold â€Å"Hal† Moore faced on 14 Nov 1965 during the first battle of the Vietnam War This essay will outlineRead MoreThe Battle Of The Vietnam War Essay1431 Words   |  6 Pagesdiscussion of the Vietnam War was never far from people’s minds. This war would serve as an introduction to what war was to the home front. It was in the homes of America where so many had been previously sheltered from the realities of war. During previous conflicts, there had been a military censorship on all media that pertained to war. This would not be the case in Vietnam, it would be completely uncensored. The ability for reporters to provide a commentary on the war without censorshipRead MoreThe Battle Of The Vietnam War1848 Words   |  8 Pagesthat is taking to a battle ground were an estimated 2000 enemy troops are awaiting your arrival. You know you are heavily outnumbered but regardless, you have a mission to complete. The lives of your subordinates sit in the brink as they are counting on your ability to make split second decisions, employ meticulously devised tacti cs, and give precise orders. These are the challenges Lieutenant General Harold â€Å"Hal† Moore faced on 14 Nov 1965 during the first battle of the Vietnam War. This essay willRead MoreThe Vietnam War A Long And Hard Battle1069 Words   |  5 PagesHistorical Analysis two 4/20/2015 The Vietnam War a long and hard fought battle that lasted from November, 1954 and ended on April 30, 1975, but the United States didn’t get involved until June of 1965. (Vietnam War Statistics) The likely collapse of the South Vietnamese army and the fear for the spread of communism is why America joined in on this war, but joining the war was extremely controversial. Many people believe that the United States involvement In the Vietnam War should never have happened. IRead MoreAnalysis of We Were Soldiers Once and YOung: Ia Drang The Battle that Changed the War in Vietnam1968 Words   |  8 PagesDrang- the Battle That Changed the War in Vietnam, Shake Hands with the Devil and Fingerprints through Time- a History of the Guelph Police are three books that were written from the popular history perspective. The simple goal of these books were quite simple; they wanted to tell a story, educate their readers about true historical events that little knew about and to further ed ucate them. This was written in chronological order and gives us detailed back ground leading up to the battle and theRead MoreThe Vietnam War Of Vietnam952 Words   |  4 Pageswords that describe the Vietnam War. The Vietnam War had 240 days of combat in one year. World War II had forty days of combat in four years(Interesting Facts). That statistic shows how rough the Vietnam War was. The fighting was constant between the two sides. This war was fought over politics and had many gruesome battles. Before the Vietnam war, Vietnam was in a revolution because they did not want to be ruled by France. Vietnam wanted to be independent right after World War II ended in 1945. JapanRead MoreThe Battle Of Dien Bien Phu1256 Words   |  6 Pages213 From The Battle Of Dien Bien Phu To Vietnam War â€Å"It will be a war between an elephant and a tiger. If the tiger stand still, the elephant will crush him. But the tiger will never stand still. It will leap upon the elephant’s back, ripping out huge chunks of flesh and then will disappear back again into the dark jungle and slowly the elephant will blead to death† (PeriscopeFilm, 1962). After World War II, the world experiences one of the longest wars that have ever occurred inRead MoreHamburger Hill Shows the Reasons against the Vietnam War674 Words   |  3 Pagesabout the Vietnam War you think about Hamburger Hill. This battle was one of the hardest fought battles in the Vietnam War. The battle on Hamburger Hill had a very important role on why President Nixon implemented Vietnamization, a policy to reduce American ground combat and put the responsibility on the South Vietnamese Army. This battle is the reason why we shouldn’t have been in Vietnam War and why the American people should have honored the Vietnam veterans that fought in this unpopular war. ThroughoutRead MoreCauses and Consequences of the Battle of Dien Bien Phu1481 Words   |  6 PagesCauses and consequences of the battle of Dien Bien Phu Examine the causes and consequences and consequences of the battle of Dien Bien Phu, 1954, which affected the lives of the Vietnamese until the 1960s. Dien Bien Phu, 1954, was the final battle of the first Indo-China war. Lasting 55 days, the battle had French troops attempt to hold an armed camp against the Viet Minh, who greatly out-numbered them. Dien Bien Phu was situated in a valley in Northern Vietnam, surrounded by mountains. The FrenchRead MoreThe Vietnam War Of Vietnam1082 Words   |  5 PagesArturo Veloz Per.2 Military Science Staff STG. Ben Clark Oct. 14th The Vietnam War Protests , controversy, hippies , Woodstock and a whole lot of deaths. America s involvement in Vietnam was to hypothetically stop the spread of communism in southeast asia.The united states played a major role in Vietnam aiding the south. In 1961 President Kennedy sent a team to report on condition in Vietnam to dictate if the united states would provide future aid. â€Å"December 1961 White Paper† argued for an increase

Anglo American Dissatation Free Essays

string(158) " plan was created to improve the relationship between the board and management, which could have helped reduce the conflicts of interests and agency problem\." Introduction Anglo American Plc is a mining conglomerate and is one of the largest companies within the mining industry. It originally started in 1917 as a gold mining company going by the name of Anglo American Corp; the name was created when the initial starting capital of ? 1million was raised from U. K. We will write a custom essay sample on Anglo American Dissatation or any similar topic only for you Order Now and U. S. sources (Forbes 2006). In 1999, following a major strategic review, Anglo American merged with Luxembourg headquartered Minorco to form Anglo American Plc, with its primary stock exchange listing and head office in London and secondary listings in Johannesburg, Switzerland, Botswana and Namibia (Anglo American 2012d). Anglo American â€Å"operates in Africa, Europe, South and North America, Australia and Asia† and is a global leader in the mining of both platinum and diamonds (Anglo American 2012c). They employ approximately 100,000 people (Anglo American 2012c) across the world, both in the mines and in local offices, with the majority of employees being based in South Africa, 79,000 (Anglo American 2011). Anglo American employs 10,000 people in South America, which is the second largest proportion of employees in the company, and employs 11,000 people in other countries across the globe (Anglo American 2011). South Africa produces the highest amount of revenue by origin, $17,855million in 2011, which accounted for 49% of the group’s total revenue for that year (Anglo American 2011). When comparing all the countries’ revenue for the year, South Africa has a very dominant position, as all the other countries have less significant revenues of $5,058million or lower (Anglo American 2011). This suggests that South Africa is the main country for production. They have a highly diversified mining portfolio, comprising of many metals and minerals. In 2011, Anglo American increased their shareholding to 85% in the world’s leading diamond company, De Beers (Anglo American 2012a), which accounted for 6% of the share of Anglo American’s operating profit in 2011 (Anglo American 2012c). The company employs 16,000 people in the diamond division, in North America and Africa, which is the second largest percentage of employees across the group (Anglo American 2011). Another subsidiary of Anglo American is Anglo American Platinum Ltd. AAP), of which they own 80% and employ 55,000 people, which is the largest proportion of employees across the company, 55% (Anglo American 2011). AAP is the main producer of platinum in the world, accounting for 40% of the global supply (Anglo American 2012c). Iron ore is the most predominant area of Anglo Americans operating activities with the largest share of the group’s profit in 2011 of 41%, $4520Million (Anglo American 2011). This is significant in comparison with the second high est area of operating profit, copper, which attributed to $2461Million, 22%, of the operating profit. Anglo American also produce metallurgical and thermal coal, nickel and other materials, which, although contribute to the company’s profits, are less significant in comparison to the more major operations of diamond, copper, iron ore and platinum. Anglo Americans main corporate aim is to, â€Å"be the leading global mining company becoming the industry’s largest employer, partner and investment of choice† (Anglo American 2012f). They believe a â€Å"sound strategy, sustainable development and good corporate governance are essential to achieve this goal†. (Anglo American 2012f) Methodology At the first meeting, the group decided that the company study was to be worked on two days a week and a table was drawn up in order to manage the time efficiently to ensure the deadline was met. The table comprised of a ‘plan’ and ‘achieved’ column for each date during the weeks leading up to the deadline of 14th December, see Appendix A. After the first meeting, the group went away to do some individual brief research on the given company in order to get background knowledge of Anglo American and so the in depth research for each section could be carried out at the next meeting. In order to make the most of the time given, the group was divided so that each of the main sections were researched thoroughly in order to give a more detailed report. The group followed the recommendations, allowing a third of the time to carry out research, a third on writing up the report and a third on editing and producing the final piece. After the research had been carried out on all sections, different members of the group began writing up different sections of the report using the information previously obtained. The group then looked over each other’s sections in order to make sure all relevant information was included, to check for grammar and spelling mistakes and to make sure enough references had been used. This was important to ensure all members had a good understanding of each section. Anglo American’s website and annual reports were the main source of information for the company study. The issues surrounding Anglo American during the past year allowed for many relevant news articles to be widely available for use within the financial management section. After the report had been completed, the group booked weekly sessions in the Techno booths with print outs of the completed report, to ensure all members of the group were familiar with all sections. The presentation was then brainstormed and the main points put on a PowerPoint, which then allowed for the presentation to be practiced over a couple of weeks prior to the deadline. Many rehearsals of the presentation were carried out to ensure it filled the time allocation required and it flowed well. Problems occurred with the methodology closer to the deadline, as members of the group had less spare time to work on the company study, due to other assignments being due in around the same time. Financial Accounting Corporate Governance As a global organisation it is crucial that Anglo American complies with the highest standards of corporate governance, to ensure any agency problems within the company are minimised and the company is well run. Anglo American aims to â€Å"direct and control its company in a transparent and accountable way. † (Anglo American 2012f). From the 2010 board effectiveness review, an action plan was created to improve the relationship between the board and management, which could have helped reduce the conflicts of interests and agency problem. You read "Anglo American Dissatation" in category "Essay examples" The action plan was to Increase contact between directors and management between board meetings and â€Å"Introduce more ‘free flowing’ informal discussions outside board meetings – the pre-board meeting dinners will be more ‘structured’ whilst retaining an informal style† (Anglo American 2011). In 2011, this action plan was reviewed and changes within Anglo American were made. The flow of management information to the Board was enhanced and the frequency of dissemination of this was improved. † â€Å"Structured board dinners also took place during the year where matters such as strategy were discussed† (Anglo American 2011). This shows good corporate governanc e by Anglo American as areas of the business which need work are being identified by the company and being acted upon accordingly to improve the effectiveness and control. The Anglo American board is chaired by Sir John Parker and consists of two executive and eight non-executive directors. 0% of this board it made up by women, this suggests that the Anglo American board could be more diverse. In the current business economy, â€Å"Regulators, politicians and shareholders are each stepping up pressure on companies for greater board  diversity  as part of a drive for better governance† (Robertson 2012). The Lord Davies Women on Boards report set a target of 25% minimum of board members to be female by 2015. Anglo American stated in their annual report their â€Å"intention to increase the representation of women on the Board from 20% to about 30% by 2013† (Anglo American 2011), which is two years below the national expectation. This is an example of good corporate governance by Anglo American as it is adhering to policies and targets which are not compulsory and also has disclosed in its annual statement, its future intentions to increase diversity in the boardroom. Anglo American also has a nomination committee which â€Å"aim is to build on the existing diversity of the board by identifying and nominating suitably qualified candidates† (Anglo American 2011). This is viewed as being good corporate governance by the company as Anglo American is making sure before directors are appointed that they are right for the job and the best candidate is chosen. To do this, they are considering both men and women for the job roles which is widening the talent pool. The Government passed the UK Bribery Act 2010, under this act the â€Å"defence  for a company against this liability is to prove that it had ‘adequate procedures’ in place to prevent bribery† (Wilkinson 2010). To comply with this act, Anglo American have implemented the necessary procedures to ensure that its business integrity policy operates effectively, so the risk of bribery is minimised as far as possible (Anglo American 2011). During the year, Anglo American developed enhanced guidelines on the acceptance and provisions for gifts and entertainment and provided specific guidance on the procedures to be followed where risks were considered higher. This is a good example of corporate governance as this would reflect positively for shareholders and potential investors, as new laws are being adhered to. In accordance with the UK Corporate Governance Code, Anglo American continue to propose the re-election of all its directors on an annual basis (Anglo American 2011), which ensures good corporate governance, as directors will always be of the highest quality possible. Within Anglo American â€Å"The Audit Committee plays a pivotal role in ensuring high standards of corporate governance and provides assurance to the Board on its reports to shareholders† (Anglo American 2011). In Anglo American, the audit committee comprises of four independent non-executive directors. The audit committee is also charged with reviewing the results of the key risk management process, â€Å"being involved in the risk management procedures of the company† (Anglo American 2011). However, to improve the governance in this area Anglo American could disclose the main risks to the company and the strategy it has in place to deal with these risks. The Audit committee is also responsible for the whistleblowing programme which the group has had in place for a number of years. It â€Å"is designed to enable employees, customers, suppliers, managers or other stakeholders, on a confidential basis, to raise concerns in cases where conduct is deemed to be contrary to our values† (Anglo American 2011). This shows good corporate governance as there is a programme which has been set up by the group where stakeholders, can report failures and discrepancies within the company, to independent non-executive directors. However, Anglo American could disclose the procedures which are to be followed when issues are reported. Within Anglo American, the board delegates certain responsibilities to a number of committees; these include the Remuneration committee, Nomination committee and Audit committee. In coherence with the UK combined code of corporate governance there â€Å"should be a formal and transparent procedure for developing policy on executive remuneration and fixing individuals director’s remuneration packages, no director should be involved in deciding their own remuneration† (FRC 2012). Anglo American’s remuneration committee seeks advice from external advisers Pricewaterhouse Coopers LLP, Linklaters LLP, Mercer Limited and Deloitte LLP, to help determine the director’s remuneration packages. Anglo American describes its policy as being â€Å"formulated to attract and retain high-calibre executives and to motivate them to develop and implement the Company’s business strategy in order to optimise long-term shareholder value creation† (Anglo American 2011). The remuneration mix is an important part of good corporate governance as it ensures that the company has an appropriate blend of basic and performance related pay as the remuneration committee will see as suitable. This will ensure that the directors will strive to achieve the main goal of increasing shareholder wealth. At the present time, director’s remuneration is calculated on the industry median for the mining sector and is adjusted by the director’s performance and experience. Anglo American could improve their corporate governance by setting director’s remuneration packages at the industry averages only. Within Anglo American, each executive director’s total remuneration consists of basic salary, annual bonus, long-term incentives and benefits. This ensures that an appropriate balance is maintained between fixed and performance-related remuneration (Anglo American 2011). However, the sheer value of some of the bonus packages is likely to affect shareholders wealth and the willingness for potential investors to invest. An article from the Telegraph explains that the chief executive of Anglo American was handed a 38 per cent increase in pay last year, with a total package worth ? 2. 17m, however the cash element of her annual performance bonus was increased by 134 per cent to ? 962,000. Never the less, at this time shares in Anglo American fell by 14 per cent over the course of 2011 (White 2012). This could be viewed as bad corporate governance by the company as despite the share price falling the chief executives pay has been dramatically increased. To help the directors ensure they have a meaningful stake in the performance of the company, in 2004 the remuneration committee devised a Bonus Share Plan (BSP), â€Å"which requires executive directors to invest a significant proportion of their remuneration in shares† (Anglo American 2011). This demonstrates good corporate governance, as it aligns the directors’ interests with that of the shareholders, reducing the agency problem. The bonus share plan also weakens independence of the directors within the company, as it is giving them greater interest within the company on a personal level. Training is offered to new directors in order to develop a comprehensive view of Anglo American’s company, continuous training is also available to directors throughout their employment. However, the governance could be improved by disclosing in the annual report the nature and the schedule of the training, so the stakeholders know what is being covered in the induction training. Within the annual report for Anglo American there is a statement of director’s responsibilities, which sets out what is expected of the directors. The board should present a balanced, true and fair view of the company’s position and prospects. Under company law the directors should not approve the accounts unless they are satisfied that they give a true and fair view of the affairs of Anglo American. This shows good corporate governance from the company as in the annual report it breaks down the directors responsibilities, however this could be improved by giving details to the users of the annual reports about what responsibilities each director has. A breakdown of the separation of roles between the chairman and director could also be disclosed in the annual report, which will ensure that one person is not given too much power which could prove to be very risky for Anglo American. The skills and knowledge of all the board members are summarised in the annual report, to give the shareholders and stakeholders an idea of their previous experience and the wealth of knowledge they bring to Anglo American, which shows good corporate governance by the company. Overall Anglo American shows good corporate governance with compliance to the UK combined code of corporate governance. The company has disclosed majority of information but could improve by disclosing the strategies in place, especially for the risk management prospective and its whistleblowing and training schemes. Stating the responsibilities of the chairman and chief executives would also ensure that corporate governance is being applied at a continuous high level. Stakeholders UK corporate law requires companies to be principally accountable to their shareholders. However, Anglo American believe that their shareholders’ best interests are served when the company makes sure all appropriate stakeholders are kept happy, not just the shareholders (Anglo American 2011). It is in all stakeholders’ best interests that the company not only survives, but flourishes long term, Anglo American therefore seek to be the partner of choice for its stakeholders by operating in a way that is acceptable to them all (The Times 2012a). Anglo American needs their stakeholders to support them in order to meet the organisations objectives’, for example treating staff well and respecting local communities, will make it easier to recruit new people necessary for growth. In the long term, this will create more value for shareholders. Employees are possibly the most important stakeholder for Anglo American, employing approximately 100,000 people around the world (Anglo American 2012c), however working within the mining industry has been voted one of the top ten most dangerous jobs (Korch 2012). To help protect this stakeholder group, Anglo American has adopted strict health and safety regulations which are outlined in the safety way, ensure that employee’s working conditions are as safe as they can possibly be. The safety way is a comprehensive framework of roles and responsibilities supported by a set of safety principles and mandatory safety standards† (Anglo American 2012b). The strategy outlines Anglo American’s risk-based approach to safety based on ten key factors that support effective safety management; leadership, risk management, culture, competence, assurance, monitoring, planning, standards, communications and learning (Anglo American 2012b). Employees in management positions are also seen as stakeholders within Anglo American, as they are esponsible for making key business decisions within the company and without the relevant information they will not be able to make reliable decisions. Unions are a very important stakeholder for Anglo American as they try to make the employees’ time whilst working for Anglo American as safe and as beneficial as possible. Previously, Anglo American have clashed with unions and issues have been raised, as seen in The Telegraph (2011), resulting in negative media interest and damaging the reputation of the company (White 2011). This, in turn, has a negative impact on all stakeholders within the company. In 2010, Anglo American received an â€Å"Employer incentive award for good performance† due to their â€Å"sound labour relations with trade unions, as well as the implementation and enforcement of sound occupational health and safety practices and initiatives† at the South African trade unions solidarity awards for 2010 (Anglo American 2012k). Examples of some of the trade unions that are recognised within Anglo American are The National Union of Metalworkers of South Africa, The National Union of Mineworkers, The United Association of South Africa and The Togetherness Amalgamated Workers Union of South Africa. Activist groups can be classed as stakeholders, as mining involves using the world’s natural resources and in some cases can lead to long term damage to the environment. Such groups are passionate about protecting the environment and if they feel that Anglo American are not protecting the environment enough, they put pressure on the company. On 28 Sep 2012, War on Want released an article discussing the miner’s strikes in South Africa and the poor working conditions of the employees (War on Want 2012). This could create negative publicity and disrupt operations, therefore affecting shareholder wealth. In response to these activist groups, Anglo American has recently developed a Socio-Economic Assessment Toolbox (SEAT) as a means of further improving the impact of its activities, e. g. setting up training programmes for local communities (The Times 2012b). The contractors that work on the various sites across the globe are also seen as stakeholders within Anglo American, as they carry out the majority of the work on civil engineering projects, such as digging new mines. Contractors are important stakeholders in Anglo American as they have a lot of responsibilities when undertaking projects and if these are not carried out properly, then problems can arise. If quality standards were compromised, due to disillusioned contractors, then this could have health and safety consequences in the future. Contractor management is also an important consideration when using contractors as external stakeholders, for example local communities may accuse Anglo American of poor social performance associated with these contractors. This is the reason that the social impact of contractors on the local area is managed professionally. Customers are a vital stakeholder within Anglo American, but due to the nature of the industry, the majority of Anglo American’s customers are countries, â€Å"China is a key customer of Anglo American’s products† (Anglo American 2012m). Anglo American has many different key performance indicators (KPI), divided into investing in world class assets in the most attractive commodities, operating safely, sustainably and responsibly, employing the best people and organising efficiently and effectively (Anglo American 2011). One of the main operating KPIs is the work related fatal injury frequency rate (FIFR). FIFR is calculated as â€Å"the number of fatal injuries to employees or contractors per 200,000 hours worked† (Anglo American 2011). This information is most relevant to the employees of Anglo American, and the unions representing them, as they are the ones who are directly affected by the injuries of co-workers. The FIFR for 2011 shows a small increase in fatalities from 15 to 17, however, in 2009 there were over 50 fatalities which shows that Anglo American is implementing the correct strategies in order to minimise these fatalities. Despite the downward trend, Anglo American targets 0 fatalities, showing that Anglo American show a keen interest in their employees’ welfare. Another operating KPI is the lost time injury frequency rate (LTIFR), which is the amount of lost time from injuries (LTIs) per 200,000 hours worked (Anglo American 2011). An LTI is an injury which leaves the employee unable to perform their regular duties for a the period after the injury was incurred (Anglo American 2011). If Anglo-American have a higher FIFR or LTIFR than the industry average, it may put off possible employees from applying for a position, which could result in the company not being able to employ the most knowledgeable people, which can have a negative impact on shareholder wealth. Another operating KPI is greenhouse gas emissions which is measured in CO2 equivalent emissions (Anglo American 2011). Environmental activist groups, such as Greenpeace, are likely to be interested in this key performance indicator as greenhouse gases are very harmful to the atmosphere and have been linked with global warming. The annual report from 2011 shows a reduction in Greenhouse gas emissions than in 2010, signifying that Anglo American are moving in the right direction in terms of reducing their carbon footprint. Total water use is another operating KPI and includes water used for primary activities, which affect the people who live in the area surrounding the mine. Some of the regions that Anglo American work in, have sparse water supplies and therefore any water used by the company may result in less water for the local communities. Reducing this KPI is important to Anglo American, as if this is not managed it may put off potential employees within these communities from applying for a position within the firm, and may give Anglo American a bad reputation. The final key operating KPI is Enterprise Development, which is is defined as the number of companies supported and number of jobs sustained by companies supported by Anglo American enterprise development initiatives (Anglo American 2011). The stakeholder that is most closely linked to this key performance indicator would be the local community in which Anglo American operates. Results from this KPI show that Anglo American is currently supporting 38,681 businesses which is much higher than their target of 3,500 businesses (Anglo American 2011). A key KPI relating to employing the best people is voluntary labour turnover, which is the number of permanent employee resignations as a percentage of total permanent employees (Anglo American 2011). In 2011, the percentage of employees who resigned was 3% which shows a decrease of 2. 3% from the previous year (Anglo American 2011). This shows the company is striving to improve employee morale and employee working conditions. This KPI is important for the employees of the company, as it indicates the number of people who may have been unhappy within their work. An important employment KPI in recent times is gender diversity, which represents the percentage of women and female managers employed by Anglo American (Anglo American 2011). In 2011, the group managed to increase the percentage of female employees from 14% to 15% and the total number of female managers from 14% to 21%. This KPI can be linked to both the employees and unions of the company, as both want to make sure Anglo American has equal opportunities for both genders in order to create a harmonious working environment. The first â€Å"organising efficiently and effectively† KPI is asset optimisation, which is defined as the sustainable operating profit benefit from optimised performance of the asset base of the core businesses (Anglo American 2011). An asset optimisation strategy is comprised of asset management and asset monitoring and a well organised strategy can reduce avoidable maintenance and interruption times. Managers of Anglo American will be interested in an effective asset optimisation strategy, as it will allow them to make effective decisions with regards to the best method of maintaining and using the company’s assets. The other organising KPI is the supply chain, which is the â€Å"operating pro? t and capital spend bene? ts to Anglo American resulting from centralised procurement from core businesses† (Anglo American 2011). An effective method of managing the supply chain is by local procurement, as it saves transport costs by supplying across the world. Therefore, managers of Anglo American will be interested in this KPI as it allows the company to build relationships with key contractors/ suppliers that can produce mutually beneficial outcomes. The results for the most recent financial year show an improvement to the supply chain of $472 million from the previous year. In the annual report Anglo American also have a section of investment KPI’s, these include return on capital employed and underlying earnings per share. The results from the annual report show an increase in both KPI’s from 2010 to 2011, 24. 8% to 26. 5% and $4. 13 to $5. 06 respectively. Investment KPI’s are only relevant to shareholders. It enables shareholders to check how well Anglo American generates profit from the capital invested and provides them with a comparison to the previous year. Despite the fact that Anglo American has a fairly extensive list of key performance indicators, there are other factors that have not been accounted for that would benefit the company’s stakeholders. Antofagasta Plc. , another company within the mining sector, uses operational KPIs that state the volumes of the most important metals that has been mined during year and compared with previous years (Antofagasta 2011). Anglo American could create this form of KPI to ensure they increase the level of production for the most important materials each year, which would be useful to the majority of stakeholders as they would be able to see how much the company has expanded its’ production over the year. Contractors would be able to use this information to estimate how the level of production will increase over the following year to put aside enough resources in order to carry out any projects that Anglo American may have in the future. London Mining Plc. ave a KPI for number of employees trained, which gives the number of people who have undergone professional training within the year (London Mining 2011). Anglo American could use this as one of their KPIs to show whether the management have executed the relevant training schemes for employees. Customers would be the most likely stakeholder to benefit from this KPI, as if there is a high number of people that have been professionally trained, it implies that their staff are trained to the highest standard and will have the correct knowledge needed in order to carry out best practice. Employees would find this information useful to determine whether they might be entitled to be given professional training by the number of employees put on schemes within the year. hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh Financial Management Figure 1 shows Anglo American Plc. ’s share price performance over the period 1 January to 30 September 2012 and the FTSE All Share performance. After analysing, it can be seen that both share price, and average share price of the FTSE All Share, have considerably similar movements over the given period with Anglo American’s share price being more erratic. [pic] On 6 January, Anglo American shareholders approved the change of holding from 45% to 85% of De Beers at the company’s general meeting. During the meeting the chairman voiced his expectations for an increase in shareholder value due to the expertise and leadership of De Beers (Anglo American 2012a). This shareholder approval was expected to result in an increase in demand for shares, which is represented by the increase in share price between 9 January and 23 January. This movement in share price seems to be autonomous from the FTSE All Share which would aid our analysis of this particular period as the event is internal to Anglo American. On 26 January Anglo American released their production report for the 4th quarter in 2011. Initially, the share price dropped from ? 27. 37 on 26 January to ? 26. 35 on 30 January which could have been due to the decrease in diamond and platinum production. This area of production is what the company is best known for, so a decrease in production of these would initially deter investors and create doubt for shareholders. Between 30 January and 3 February the share price shot up by ? 2. 5 which signified that the shareholders had looked into the report further to see that the production of all other materials had increased, including nickel production increasing by 125% from the previous year (Anglo American 2012). From figure 1, it can be seen that this increase is reflected in the movement of the FTSE 100 which could suggest that there may be external factors also affecting Anglo American at this time. On 23 March, Anglo American sold a â‚ ¬750m 10 year euro bond which could have been due to funds being needed more within the company (Euroweek 2012). Investing in the euro bond may have been to help create or strengthen values of the company, especially within Europe at this particular time of the European Sovereign Debt Crisis. As shown on figure 1 between 23 March and 29 March the share price fell dramatically. This could be due to shares being sold by shareholders that primarily invested in Anglo American, as they supported the Eurozone. On 1 June, Anglo American re-entered the euro bond market which â€Å"several bankers speculated that they returned out of prudence† Euroweek 2012). The share price shot back up, which could have been caused from the amount of demand for the deal, this suggested investors were pleased to see Anglo American again. Anglo American was in talks with Peru on 29 June in relation to a potential local sustainable development to accompany a mining project in the region, and had proposed a $118 million investment (Guerra 2012). $36. 9 million of the investment was budgeted to install a pumping sys tem in to two of the country’s rivers (Guerra 2012). The fact they are supporting and helping Peru is a sign of good corporate social responsibility for shareholders and potential investors which resulted in a ? 0. 66 increase over 4 days. Between 10 August and 30 August, there is a noticeable decrease in the share price which would seem to be an internal factor as the FTSE All Share does not seem to follow suit during this period. An outside article was realised on the 10 August stating that Anglo American were dismissing claims that a shareholder spring was expected to occur which was broadcasted in the Telegraph (2012). The article in the Telegraph (2012) stated that shareholders had contacted Sir John Parker, Chairman of Anglo American expressing their dissatisfaction with the CEO, Cynthia Carroll. Sir John parker sided with the CEO which fuelled the shareholders to take their complaint to one of the company’s directors. This highlighted to the shareholders the lack of support they were receiving, which therefore could be the internal factor forcing the share price down. When comparing Anglo American with other companies within the mining industry, the movements in the FTSE share price are mirrored more closely by Antofagasta than Anglo American, which may suggest that their beta is closer to 1. [pic] Throughout the period analysed, the share price movements for Anglo American is quite volatile in comparison to the FTSE All Share. Between 2 April and 7 June, the movement in share prices between both Anglo American and The FTSE is extremely similar with Anglo American’s movement being more responsive. This could signify that external factors affecting the whole market have affected Anglo American the same way but at a more severe rate, this is shown by their beta of 2. 08, see Appendix C. With the FTSE having a perfect market beta of 1 the beta value of Anglo American is in perfect correlation with the movement of share prices, see Appendix B, as in the majority of places the movement is the same but double as volatile. With the beta value being considerably higher than 1, shareholders or investors are likely to be risk seeking rather than risk averse. The further away from 0 the beta value is, the lower the shareholder value, but the potential for a high return is there. As seen in the London Business School Risk Measurement Services publication the commercial betas for the 3 quarters up to September 2012 are of a similar value, see Appendix C, with the average being 1. 55. This is significantly lower than our calculated beta of 2. 08. However the â€Å"Risk Measurement Service uses estimates based on an analysis of variable factors, and is therefore no way guaranteed† (London Business School 2012), whereas the beta of 2. 8 was calculated based on weekly data taken from Thomson Analytics. Although the beta of 2. 08 is the less favourable one, it is the more accurate out of the 2 so will give a better indication of shareholder value and the risk an investor may take. Both betas are aggressive in relation to the market beta however the commercial calculation is less so. Unless a serious investor were to calculate the beta the mselves, using actual data for the company, they would be likely to base an investment decision on estimated inaccurate beta values. A shareholder’s decision to invest can be influenced by another confounding variable, the company’s investment rating. There are 3 main investment ratings that stakeholders use and rely upon these are Moody’s, Standard Poor’s (SP) and Fitch. Anglo American are rated on Moody’s with a long term investment rating of Baa1 and the equivalent long term rating on SP of BBB+ which is noted to be a lower medium grade of investment. SP define their BBB+ rating as the company having â€Å"adequate capacity to meet financial commitments, but more subject to adverse economic conditions† (Standard and Poors 2012). Although Anglo American’s ratings could be higher they seem to be in a good stable financial position and therefore an attractive investment for potential shareholders. The short term ratings for Anglo American are of a slightly better position than the long term ratings, with Moody’s being P-2, which implies they â€Å"have a strong ability to repay debt obligations† (Moody’s 2009). This shows the company is fairly liquid giving reassurance to shareholders because if the company was to enter default there would be a higher chance of shareholders getting a return. The SP credit rating for Anglo American was the same in 2011 as in 2012 with a long term rating of BBB+ and a short term rating of A-2 for both. This gives investors the security of Anglo Americans stable credit rating and in turn ability to pay off debt. Although investment ratings can be used to help determine whether to invest or not they should not be relied upon, as companies with the same rating do not have absolutely equal credit quality. It does not take into consideration external factors such as a change in money rates and it ignores the length of maturity. Dividends |2011 |2010 | | |($) |($) | |Interim dividend |28 |25 | |Recommended |46 |40 | |final dividend | | | |Total dividends |74 |65 | Anglo American has a clear dividend policy in which a base dividend will either be increased or maintained from year to year (Anglo American 2011). An interim dividend of 28 US cents per ordinary share was paid on 15 September 2011, and for the 2011 financial year â€Å"The Board proposes a final dividend of 46 cents per share, giving a total dividend for the year of 74 cents, a 14% increase† (Anglo American 2011) see figure 3. During the year the Group paid dividends of $818 million to company shareholders, which is a huge increase on the $302 million paid out in 2010, and $1,404 million in dividends to non-controlling interests. Based on shares eligible for dividends at 31 December 2011, this will result in an estimated distribution of $557 million of shareholders’ funds, of which $350 million will be distributed by the parent Company. The interim dividend for 2012 has increased by 14% to 32 cents per share, which continues their policy of a base dividend being slightly adjusted after discussion to ensure the maintenance of their investment grade rating (Anglo American 2012n). Dividends are proposed to be paid out in cash and not scrip issues therefore the $557 million will be shown on the balance sheet, therefore affecting cash flows. Anglo American have a fairly attractive dividend yield of 3. 32% in 2011, when compared with other mining companies within the FTSE 100, see Appendix D. From the four companies analysed the dividend yield has increased from 2010 to 2011, apart from BHP Billiton. This suggests that either companies are issuing a higher divided or the value of shares has dropped. In Anglo Americans case the share price has fallen over the given period, but the annual dividend has also increased. As a percentage of earnings the dividend for 2011 was 14. 51%, which had increased from 11. 97% in 2010. Considering the high capital investments that Anglo American commit themselves to, this is fairly good proportion of earnings attributable to shareholders. The optimum dividend policy would offer shareholders a constant, steady dividend paid at regular intervals now rather than later; this is exactly what Anglo American has to offer. However due to the Group’s aggressive investment plans for future growth, which includes three major projects; Barro Alto, Los Bronces and Kolomela, the constant regular dividend policy is likely to cease or at least come under discussion at board meetings. Shareholders have questioned the decision to invest money into these projects, CEO Cynthia Carroll has announced that the 3 projects and another one expected to commence in 2013 will contribute $6bn to dividend pay-outs. Although the expected change in dividend policy has undoubtedly caused controversy with shareholders, the company has proven that investment into new projects is necessary to maintain a high profit and continue to pay a regular dividend in the future (Vuuren 2011). Over the past few years Anglo American have had a strong, fairly positive balance of debt and equity, which has allowed them to have the flexibility to attain more finance when necessary. Net debt at 30 June 2012, including related hedges, was $3,124 million which was an increase of $1,750 million from the net debt at 31 December 2011. Net debt at 31 December 2011 comprised $12,873 million of debt, partially offset by $11,732 million of cash and cash equivalents (Anglo American 2011). However a dramatic net debt decrease of $6,010 million occurred from 31 December 2010 to 31 December 2011 which reflects strong operating cash flows and proceeds on the disposal of 24. 5% of Anglo-American Sur (Anglo American 2011). Anglo American is funded mainly by equity as shown by the debt and equity ratios in Appendix D. At 30 June 2012 for every $1 of capital invested by the shareholders $0. 655 is funded through debt, which is a slight improvement on the debt equity ratio of 0. 677 at 31 December 2011. The ratios indicate that the group should easily be able to generate enough cash to satisfy its debt obligations as the group has enough room to manoeuvre its current levels of finance. It is important that a company’s debt-equity ratio is not too high as this can lead to increased interest payments and an enlarged risk of damaging their credit rating. This is perhaps the reason that the group made efforts to decrease the debt-equity ratio from 31 December 2010 from which it was 0. 755. Anglo American has a sound equilibrium between debt and equity as seen by the gearing calculations in Appendix D. Over the past two years, the figure has increased gradually from 45. 71% at 30 June 2010 to 50. 30% at 30 June 2012, which could be due to an increase in long term liabilities. The market value of equity has also increased but at a slightly lower rate, causing the gearing ratio to increase steadily. However, the value of equity is based on the market value of the shares at 30 September 2012 for each of the three years to ensure a more accurate comparison, so when considering each year in turn, it would not show the true value of gearing. Figure 3 shows the comparison of the percentage of gearing compared with the percentage of gearing using the market value of equity. Both show a similar pattern with gearing gradually increasing over the two years, but a steeper incline for the gearing based on the share price at that year. This could be a result of the share price dramatically decreasing from 25. 26 at 30 September 2010 to 18. 17 at 30 September 2012, in turn giving a lower value of equity when using the market share price. Calculating the gearing using the share price at that time, rather than the market value today, shows the gearing in a way that the company would have wished to portray. Overall, it can be seen that the share price movements of Anglo American Plc. generally follow the market trend, signalling that external factors are the main influence on any change in share price. The erratic behaviour of Anglo American’s share price makes an investment in this company quite risky. For example a variation in the market share price due to a change in regulation is likely to have more of an effect on Anglo American as their beta value is 2. 8. To lower the risk they could strengthen themselves against external factors by introducing or improving their internal control systems, minimising their exposure to the external environment and in turn lowering their beta. The beta of Anglo American demonstrated by how the share price movement is generally the same as the market but exaggerated, which sh ows that it is an aggressive beta. When comparing with other companies in the mining sector Anglo Americans beta value is higher than most but not an anomaly, see Appendix C. All the companies within the mining sector in the FTSE 100 have a beta value higher than 1, making them all aggressive, risky investments, with Anglo American being one of the more risky options. Anglo American may seem quite risky when using the beta, however when considering this alongside the company’s gearing it could be considered as an attractive less-risky investment. Anglo American’s gearing is fairly average, but it could be improved by minimising the amount of debt that contributes to the company’s finance, also decreasing the debt equity ratio. Although the company may be seen as becoming increasingly highly geared, they are constantly investing in new projects to increase shareholder wealth in the long term, which makes the level of gearing more acceptable. Anglo American’s investment rating is fairly high on Moody’s credit rating table, which shows there are signs for improvement but also space for fault. The rating is based on many confounding variables, with Corporate Governance having a major influence on the overall rating. Although Anglo American has demonstrated fairly good corporate governance, there is still room for improvement in many areas. Another variable that could affect the rating is the dividend policy on offer to shareholders. Anglo American offer a very attractive policy with a base amount and regular payments, which is the optimum option for shareholders, as they know what to expect and when to expect it. After taking into account all aspects of the financial performance of the company, an investment in Anglo American would be recommended for a risk seeking investor expecting regular dividend payments. Anglo American is a worthy investment, as they have a number of new projects ined up for the future and have proven to have had huge success with previous projects, leading to satisfied shareholders. However, the value of Anglo American has declined over the period analysed, with the share price falling from 22. 29 to 18. 17, but this is forecast to increase over the near future due to all the projects recently invested in. If the global economy was to enter a double dip recession, Anglo American is not likely to be affected much by this, due to the strong commodity values and derivatives. Strategic Management Anglo American is currently one of the world’s top mining companies and has held this position for a number of years. Their main goal is to be the â€Å"leading global mining company, becoming the investment, partner and employer of choice† (Anglo American 2012f). A way in which Anglo American wish to become the global leading mining company is to outperform competition, by their structure of organising efficiently and effectively (Anglo American 2012l). They aim to achieve this from being more focused and performance orientated, and believes their Asset Optimisation (AO) programme will help to do this (The Times 2012). Anglo American wanted to enhance the health and performance of their operations, so designed an Asset Optimisation programme in order to achieve a holistic approach to this. It has allowed a more open working culture giving employees the encouragement to not only work together but contribute their own ideas to improve the business. A major contributor from the AO programme, that has added value across the group, is the development of the programme, in which it has been introduced into the day-to-day business of Anglo American. This programme has added value and strength to Anglo American as to date they have saved well over their target of $1 billion from their core operations and hope the strategy continues to present positive outcomes in the future (The Times 2012). To improve efficiency, each individual area of production is focused on lowering its costs, such as lowering excessive waste or managing the usage of natural resources. Water is vital to Anglo American in order to carry out their operations and also for the communities around them, especially as some areas are the most ater-stressed regions in the world. To reduce water usage, a 10 year strategy is in place which involves making projects water resilient, investing in new technology and building water infrastructure. By 2030, Anglo American hope to have reached the strategic objective of zero net water consumption. Not only does this strategy improve the efficiency of production, it also engages with stakeholders, which in turn benefits the co mmunity (Anglo American 2012l) and will reduce the agency problem between directors and the local population. Investment is a strong part of Anglo American’s strategy, and they feel that the investments they have made into large scale assets, with long life cycles, have given them a clear advantage through the low costs attached to them. The commodities that Anglo American specialises in are those that they believe hold the best returns over a long period of time, and even during the fluctuations that occur over an economic cycle. Anglo American also offers derivatives of their commodities which is a good strategic decision for them to take, in the sense that they are guaranteed a certain level of return for those derivatives. However if the demand and in turn the price dramatically rises for those commodities Anglo American could receive lower than the market value at that time. Therefore the option to offer derivatives not only allows for the opportunity of stability for an agreed amount of income, but also the threat to lose out on an increase of market value of that commodity. Operating safely, sustainably and responsibly is embedded in everything† (Anglo American 2012l) that Anglo American does. Employee safety is a huge part of any decision made by the company and they are persistent on reaching their goal of zero harm. The 5 years prior to Cynthia Carol becoming Anglo Americans CEO there was a total of nearly 200 fatalities, whereas the 5 years following her position as CEO the number of fatalitie s dropped to 77. This could be down to the change in strategy and how the importance and safety of employees was considered invaluable to Cynthia; this was demonstrated by her drastic decision in 2007 to close the Rustenburg mine instantly due to the risky nature of it (Carroll 2012). The health and wellbeing of employees was taken a step further when HIV/AIDS and general healthcare services were not only provided to employees but also their dependents, spouses and other stakeholders. This has been recognised as world class and has received a number of rewards for it, ‘The Business Excellence Award for Best Workplace Program’ being one of many (Engineering Mining Journal 2009). Minimising the effect that their operations have on the environment is something that Anglo American also considers in detail. Over the years Anglo American have received a number of awards that prove their commitment to the environment, in 2011 they received the three out of four awards at the ‘Three Nedbank Capital Green Mining Awards’. They were recognised for their rural research project at Sishen mine where management decisions were aligned with the long term sustainability objectives of the Taolo Gaetsewe District and the surrounding region (Nedbank 2011). Anglo American hope that this project will make a positive difference to community development, and in turn bring them closer together, building respectful associations within the society they work in (Anglo American 2012l). They believe that this strategy along with strong governance and solid risk management will create trust amongst the company and its stakeholders and fundamentally enable the delivery of long term returns to shareholders (Anglo American 2012l). Employing the best people is vital to the success of the company and also to achieving their main goal of becoming the leading global mining company. How effectively Anglo American operates depends on the people they employee which in turn contributes to the reputation they have with investors, partners and potential employees (Anglo American 2012l). To attract the best employees to the company, Anglo American; create a safe work place for all, have a clear strategy for success, offer stimulating work, are organised for effectiveness and efficiency and support employees in their career development (Anglo American 2012l). Not only does this strengthen the company, as employees have the help to progress and be motivated to progress and become the best employees, but it also offers opportunities for Anglo American to be the employer of choice. Although Anglo American has quite strong strategies in place, they should be aware of the external factors which are constantly changing that could affect these strategies or future strategies. Due to the many countries that Anglo American operates in, they need to constantly monitor each country to ensure they are aware of anything that could affect them, for example, a change in government may have a drastic effect on the way they operate in that country. This could be managed by strong internal controls and contingency plans to react to any change as quickly as possible. The minimum wage rate for each country is something that also needs to be monitored and adhered to as they differ dramatically between the countries Anglo American operate in. The minimum wage for Australia in 2011 was ? 10. 13 compared to Kenya which was ? 0. 61, which is a dramatic difference so is hard to monitor, but it is essential to ensure all the different countries regulations are adhered to (Wage indicator 2012). Governments have also started to impose super profit taxes, where mining royalties increased in Australia, Chile and South Africa. Companies are charged super profit taxes on revenue but now new legislation has been introduced where mining companies are charged on profits as well as revenue. To offset this, there are also discovery bonuses that Anglo American can be rewarded for, for finding natural resources within a country (Deloitte 2010). Anglo American should carefully consider the environment and the areas affected by their actions. There is a constant concern from the public, as appreciation of the environment grows along with the awareness of the harmful effects that mining can have on their surroundings (Australian Bureau of Statistics 2006). Activities at ground level constantly have an impact on the surrounding area, as bore holes, access tracks and sometimes even helipads are required. If the areas affected are left un-rehabilitated, this can have a long term effect on the environment (Australian Bureau of Statistics 2006). Anglo American has a strategy in place that is recognised internationally, and assists any mine-closure planning. It focuses on the provision for finance necessary and rehabilitation â€Å"for long term sustainability through addressing complex socio-economic, physical and bio-physical challenges† (Anglo American 2012e). Stakeholder relations are constantly upheld throughout any project that Anglo American carries out; this ensures they have constant feedback from the community, government bodies and any other stakeholders affected by their actions. Mining is always going to affect the environment and the local communities surrounding each project, but Anglo American has strong strategies in place to deal and cope with these affects to the best of their ability. It is important for Anglo American to value the importance of society. Employees, their communities, and the population of host countries are all part of the society that Anglo American should embrace. â€Å"Every year Anglo American spend a percentage of their pre-tax profit on social investment projects and spend time working with communities† (Anglo American 2012j). In 2011, Anglo American increased their Corporate Social Investment by 15. 8% to $128. 6 million. The Anglo American Group Foundation is their own venture that operates globally, offering grants to countries where projects are carried out (Anglo American 2012j). Education is a huge social aspect where grant funding is used; assisting the development of maths, science and literacy as well as higher education and ensuring teachers are of a good quality. Health is also considered an important aspect on which to focus grant distribution, and Anglo American have a holistic approach when it comes to HIV/AIDS as not only do they supply internal counselling and testing but have also donated $4 million to external HIV/AIDS projects (Anglo American 2012j). Anglo American has outstanding generosity and strategies in place when it comes to the society and has strong and thorough planning for any operation carried out to improve their relations with stakeholders. However â€Å"community projects require creative marketing strategies and comprehensive business plans, and an external project consultant could be useful here† (Engineering and Mining Journal 2012), to eliminate any bias, and to make society relations a major variable for any decisions made. A large proportion of Anglo Americans workforce and mining is carried out in Africa â€Å"with nearly 1 billion people, Africa accounts for over a sixth of the world’s population, but generates only 4% of global electricity† (Salaam 2007). Anglo American need a lot of electricity to carry out day to day activities and with the strain of electricity available throughout Africa it was essential for Anglo American to find an alternative energy source due their large consumption of 102. 9 million gigajoules in 2011 (Anglo American 2011). In order for this level of energy to be available to them Anglo American have constructed five platinum based fuel cells which not only provides them with the necessary power for productivity but also â€Å"provided a significant economic and environmental development opportunity for South Africa by facilitating the provision of clean, reliable and cost effective power† (Anglo American 2012g). Anglo American consider technology and carbon reduction to be linked very closely and aim to have technology capable of running cost efficient, carbon neutral mines in 20 years (Anglo American 2012g). Although Anglo American have the aim in place to achieve this, a strategic report on how they aim to achieve it and a breakdown of steps, costs and research would be useful. It would not only be useful to the company and employees carrying out the strategy, but also for stakeholders, especially the African population and government. It may even be possible for the project to be supported, and maybe even assisted by the local Government to push forward the time scale. Being a multi-national company, Anglo American has to comply with many laws from each country they mine in. As well as these, some countries have individual legislation, which varies in different areas of the countries, USA Canada (Garcia 2008). These can include environmental laws, e. g. water pollution, national laws e. g. minimum wages and safety laws. An example being that Anglo American has developed a safety and sustainable development committee in order to comply with South African safety law. This states that a company in South Africa must provide a committee with ambitions to â€Å"initiate, develop, promote, maintain and review measures to ensure health and safety† (Boshoff 2012). By having a safety committee they can try to minimise the lost time fatality rate and try to achieve their overall goal of zero fatalities within any Anglo American workplace. Anglo American has a sound collection of strategies in place to deal with external factors but it is also important for that they have strategies in place for internal factors. Figure 5 shows a value chain of Anglo American and allows for the internal factors that Anglo American could be affected by to be recognised. |Infrastructure: A multinational conglomerate with joint projects and subsidiaries. De Beers being the largest subsidiary of | |many. Extremely high capital investment, with lots of projects. Primary listing on LSE, secondary on JSE. | |Human Resources: Diversity among workforce across all levels of employment. Committed to International Labour Organisation. | |Development of talent remains a key priority. | |Technology: Research and develop their own technology. Link development of new technology with the ability for carbon | |reduction. | |Procurement: have a local procurement policy engaging local businesses in supply chain. Expect all suppliers to operate | |safely, sustainably and responsibly. Prefer suppliers who are engaged in China sourcing. | |Inbound Logistics: |Operations: Diamond, |Outbound Logistics: |Marketing and Sales: De Beers|Service: To maintain | |partner with Chinese |nickel, copper, iron |40% of worlds platinum|have their own diamond |the sites. Mines need | |suppliers to operate and |ore, thermal coal and |output. Own 85% of De |auction and shops. 70% of |to be maintained by | |maintain complex products|platinum mining. Beers, the global |platinum consum How to cite Anglo American Dissatation, Essay examples

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Question: Discuss about the Opportunities making Business with Mobile Computing. Answer: Introduction Today, various changes are taking place in the living standards of people and also in business operations because of emergence of new technologies and development in smart phone devices. These dynamic technologies have put down significant effects on individual, business and societies. This report focuses on emergence of mobile in computing and its implications on society in details. Report provides the deep understanding and analysis about the aspects of mobile computing that creates various business opportunities for the organizations in the operating market (Aldridge, 2011). Project objective The objective of this project is to understand various aspects of the mobile computing which provide various business opportunities to the organizations for attracting the customers. It is recently observed that people are focused towards these technologies and the technologies have made them much dependent. It is also observed that mobile computing is beneficial for the business as it provides various opportunities to the organizations to achieve the growth in the business. So, the objective of this study is to analyze the opportunities of mobile technology and involve these resources in the daily business activities to the higher level (Bryman, 2015). Project scope The presented study has significant importance in the research topic of mobile computing. This is very crucial part in the current circumstances of the technological innovation and development and its propositions. The main objective of the project is to analyze and understand the opportunities with the mobile computing and its importance in the business. The study would make possible to understand the use of mobile computing devices in the various business functions. Along with this, the study would also provide benefits to increase the knowledge and understanding about various aspects of mobile computing and would assist in providing effective findings and conclusion for the project. Literature review In present time technology has become the most vital and efficient factor which include various people both in their personal and practiced lives. In all over the world technology has put down its roots in almost all the activities and sectors. Mobile computing is one of the advancement in technologies which changes the lifestyle of people allows them to think in a diverse manner by practicing the same in their real lives. Mobile computing Since mobile computing is one of the most important technological development which affect many people in all over the world. Mobile computing is considered as the equipment which allows the transfer of data, videos and voice, by the computer and other wireless equipments without use of wire or any of fixed substantial connection. Day to day activities can be easily carried because of enhance in the use of smart phones and tablets. Mobile hardware, and mobile software, mobile communications are the basic concepts of mobile computing (Ghanchi, 2016). It has been considered as the mobile computing technology provide the facilities to its users to access, generate, accumulate, procedure and communicate the useful information without any kind of hurdles. It assists the users to interact and exchange information in wide range of areas. Mobile computing is also considered as a platform of information management which allows the flow of information through wireless channels. Impacts of mobile computing on business There have been a lot of changes taking place in mobile sectors in past few years. New and upgraded technologies had made a great impact on the various business activities of the organizations. New phases of quick communication have been developed by use of mobile computing devices such as laptops, tablets, smart phones, I-pods etc and complete restoration of traditional mode of communication has taken place due to these devices. For the individuals and society, mobile technological solutions have become very important part in their daily routines. The mobile computing helps in combining communicational sources with wide range of internet which ultimately helps in bringing improvements in daily routine of people. However use of mobile computing has lead to increase in activities related to cyber crimes. Because of flexibility of easily transformation of information, risk related to security of sources has been increasing at an alarming rate. It has been considered that it is hazardou s to get connected with other devices as it may be the cause of mistreatment of private data. When the laptops, mobiles, or other devices are associated to Wi-Fi, these can easily be hacked and controlled by anyone and can misuse the confidential data stored in it. Opportunities from mobile computing By using smart phones and ease in access to thousands of apps, people are performing a lot of intensive activities on their mobile phones from any place and at anytime like banking transactions, payment of bills etc. Now days mobile phones have become a major part of day to day lives of people. According to a current global report, almost 60% of senior corporate expect that mobile computing will help in expanding their business at large scale which ultimately helps in getting success to their businesses (Kumar Yung-Hsiang, 2010). Mobile technologies help people to use data and resources of company without been attached to a single location. Mobile devices help the employees of a company to keep them in touch everywhere whether they are attending their meetings or working for a client etc. Mobile computing helps the companies in doing their business in an effective and different manner. New technologies not only attract customers but also help in reducing cost. It will make the team more attentive, more creative and more valuable in front of clients. Businesses now days are learning the most efficient and effective way of using mobile technologies in their business to enhance their productivity to get success in long term. Following are some important areas in which mobile technology can be useful: Networking / communication Mobile technologies help companies to have unbreakable and incessant level of connectivity between employees, vendors and customers. Employees can download applications like Facebook, LinkedIn, and Twitter etc on their mobiles which help them to connect with other colleagues. Mobile computing also helps in enhancing business benefits like direct communication with the customers and employees in the market. By the use of real-time communication, the organization can achieve various business benefits i.e. effective use of staff time, improved customer services, and greater range of the services and products which are delivered by the company. The benefits for the customers as well as business are as follows: Making effective presentations to the customers, and they are being able to download the information regarding product during the visit, By using mobile computing, customers are able to quote and interact regarding order processing, Checking stock level by the office network, Interacting with the other employees while traveling, senior managers can send or receive emails, response to the tenders, and deliver the trip report in timely manner (Frh, Kesch Plss, 2005). Development Due to the interactive nature of mobile computing and technology, organizations are able to share the information by this medium. By the mobile technology, the companies are able to get immediate response and feedback for the products and services from the end users. The speed and accessibility of the mobile computing have led to the faster research and development for the organizations in their business which is the crucial part for them to deal with the competition in the market. Along with this, it has also led to the product upgrade based on the customers requirements with the faster rate. In this way, customers or end users feel that they are connect with the companys business operations and they have important role in the development of the business (Chen Kamara, 2011). Marketing In the time of competition, mobile technology has provided new dimensions to each and every company in terms of advertising and promotion for the business across the world. Based on the business advertisements on the mobile phones by the variety of mobile marketing technologies, customers feel attractive towards the products and services. By the marketing technologies such as mobile website, SMS messaging, banner ads, mobile applications, IVR massaging, QR codes and much more. These advertisements can be used to reach the targeted and specific audience by the company. Consumers are able to read the information available on the website but they are seeking the information on the mobile device. Mobile devices now display the advertisements that are related to the information. By this customization, marketing is getting more effective as the potential customers always have mobile devices in their hand and the exposure of advertisements is increased. Based on the studies, it is observed that 97% of the mobile subscribers read an SMS message within 15 minutes of receiving it, and 84% response within 1 hour. Along with this, mobile is not just for the young people, but adults are also using the mobile technology for purchasing and shopping. Further, it is observed that almost 40% of the consumers are interested in receiving the mobile coupons for the various services (Fernando, Loke Rahayu, 2013). Commerce Mobile ticketing By the mobile computing, tickets can be booked and cancelled easily with the variety of technologies. Users are now able to use their tickets immediately by showing their phone at the venue. Mobile coupons, vouchers and loyalty cards- The mobile technology is useful in the allocation of the coupons, vouchers and the loyalty cards. These items can be characterized by the virtual token that is sent to the mobile phone of the customers. Customers present their mobile phone having one of these tokens while purchasing the products. By the mobile token, customers are able to take same benefits as they got in the traditional token (Tan, 2011). Content purchase and delivery The mobile content purchasing includes sale of ring-tones, games, wallpapers of mobile phones. The content purchase and delivery focuses into the purchase and delivery of the full-length music tracks, books, videos and more. Location based services By knowing the location of the mobile phone users, companies are able to provide location based services to them. The location based services include local discount offers, local weather, news or sports, traffic reporting and tracking and monitoring of people. Information services There is various information services which can delivered to the customers and mobile phone users in the same way as those are delivered on their computers. The information services include stock quotes, financial records, and national and international news and sports (Metz, 2013). Mobile banking In present time, banking and other financial institutions use mobile commerce so that they can provide facilities to the customers to access the account information and make transactions. Facilities in the mobile banking include transfer funds between accounts, process bill payments check bank balances and verify deposits and other many transactions (Brill, 2013). Benefits In the modern era, mobile technology is helpful in improving the services of the organizations that they provide to the customers. for instance, while meeting with the customers, company can access the customer relationship management system by the internet. This is helpful for the company to keep the details of the customers updated. Alternatively, company can be able to allow the customers to pay for the services and products without cash, check or swipe the credit or debit card. Further, by the mobile computing, companies are able to access the resources with the help of database or accounting system. For example, firm can set up new customers account, place an order online and check the prices and stock availability (Wakeman, 2012). Conclusion From the above discussion, it is observed that the adaptation of smart mobile device such as tablets, smart phones etc has drastically changed the living standards and various daily activities of individuals. It is also observed that that mobile computing is mostly used for the various business activities as it is helpful for the individuals by information system while they are not in their workplace. The above discussion shows that the mobile devices are helpful to stay connected with each other in all over the world at anytime. People get new opportunities to communicate with each other and to explore the outer world. So, the mobile computing has significant role in the modification business activities. References Aldridge, D., (2011). Business value from mobile computing. Retrieved on 12th August 2017 from https://www.nationmultimedia.com/business/Business-value-from-mobile-computing-30166464.html Brill, E. (2013). Mobile Computing: It's a Game Changer for Companies. Retrieved on 12th August 2017 from https://www.theatlantic.com/sponsored/ibm-mobile/mobile-computing-its-game-changer-companies/32/ Bryman, A., (2015). Social research methods. UK: Oxford university press Chen, Y. Kamara, J.M., (2011). A framework for using mobile computing for information management on construction sites: Automation in Construction. 20(7). pp.776-788 Fernando, N., Loke, S.W. and Rahayu, W., (2013). Mobile cloud computing: A survey: Future Generation Computer Systems. 29(1). pp.84-106 Frh, R., Kesch, D., Plss, S. (2005). Mobile Computing Business Opportunities and Business Models from the Perspective of an IT Service Provider. pp.117-15 Ghanchi, J. (2016). Mobile Computing: Biggest Challenges and Opportunities Lying Ahead. Retrieved on 12th August 2017 from https://www.logisticsit.com/blog/2016/02/05/mobile-computing-biggest-challenges-and-opportunities-lying/ Hawkins, J.C., Cinque, P.S., Shirai, G.T., Haitani, R.Y. and Gayed, N., Palm, Inc., (2010). Mobile computing device interface. U.S. Patent 7. 738. 912 Kumar, K., and Yung-Hsiang, L., (2010). Cloud Computing for Mobile Users: Can Offloading computation saves Energy. IEEE Computer Society. Laurila, J.K., Gatica-Perez, D., Aad, I., Bornet, O., Do, T.M.T., Dousse, O., Eberle, J. and Miettinen, M., (2012). The mobile data challenge: Big data for mobile computing research. In Pervasive Computing Metz, R., (2013). Five Opportunities for Mobile Computing. Retrieved on 12th August 2017 from https://www.technologyreview.com/s/511816/five-opportunities-for-mobile-computing/ Tan, T. (2011). Five Reasons Why Mobile Computing is Accelerating in Organizations. Retrieved on 12th August 2017 from https://www.industryweek.com/companies-amp-executives/five-reasons-why-mobile-computing-accelerating-organizations Wakeman, N. (2012). What are the biggest mobile computing opportunities. Retrieved on 12th August 2017 from https://washingtontechnology.com/Articles/2012/04/02/Mobile-opportunities-intro.asp

Perception of Self and Others free essay sample

How do I see myself? I am skilled at making other people happy and doing whatever I can do to make people around me happy. I am skilled at listening to people and their problems and also I am skilled at making new friends. I have the ability to make people around me feel comfortable and friendly and I also have the ability to make people laugh. I have the ability to resolve arguments easily. I know things about others that make them happy. I am competent at doing things that make people feel friendly around me. I am also competent at stopping fights and making people to stop hating each other. One part of my personality is that I never fight with others. I always swallow my anger whenever I am angry at someone instead of releasing my anger. How do others see me? Other people believe that I am skilled at resolving issues. We will write a custom essay sample on Perception of Self and Others or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They feel friendly around me. Other people believe I have the ability to make anyone my friend. Other people believe I know things about their feelings and I can always make them feel happy and comfortable when they are around me. Other people believe that I am competent at stopping fights and making people to stop hating each other. One part of my personality is that other people believe that I am a super cool person and they always know that I will not get angry or fight with them no matter what happens. From both the lists it is clear that how I see myself and how others see me are two very similar lists. To conclude, it is clear that I am good at making friends and at resolving issues that other people are facing either between themselves or with me. The only difference in the lists is that people thing I never get angry but in actual I do get angry but I never show my anger and always keep it inside me. Who I am and how I know this? Well I am a genuinely nice person with whom everyone wants to hang out. I do not get angry at others and always try to make them smile. This trait has its advantages which are apparent but also has some disadvantages like people mostly tend to hurt me without even knowing it because when they hurt me, I tend not to let them see me angry or hurt but in fact I do the opposite and smile at them.

Moon Bounce essays

Moon Bounce essays I leave my words in front of you as sales manager of the newest, fastest growing, and most innovative company in the world; National Organization for Planetary Exploration (NOPE). I am submitting this paper today to make you more aware of the possibilities that lie before you. My team and I are giving people the opportunity to go where no normal man has ever gone before. We are giving people the opportunity to experience a feeling that is so unnatural and so unique and thrilling that they would be more than willing to do it again. We are proposing, with your approval, a trip to the moon. And documented below we have all the reasons and more why you should chose to see the entire world ride in luxury with us. Trips to the moon moved out of science fiction and into reality on July 20th in 1969. On that date, Apollo 11 landed on the Sea of Tranquility, extending the edge of human experience 400,000 km into space and to the surface of another planet. Many other landings have followed directly in Apollo 11s footsteps. Apollo 17 became the end of this beginning of human movement into the universe. It is now our turn to be able to bring this feeling to the world at an affordable price with respect to the circumstances. Take for example this that lays before you, just imagine: Seven and one half million pounds of pulsing, crackling thrust from five huge first stage engines, burning kerosene and liquid oxygen, first shook then lifted us toward space, turning night into day behind. In the midst of extraordinarily heavy vibration, forces of acceleration, built up slowly, at first, then gradually increasing until, just before the first stage burn ended, you reached four times Earth's gravity. Then, the first stage shut down, the rocket stack unloaded in the absence of thrust, the now useless first stage dropped away toward the Atlantic Ocean, and the second stage ignited to continue your upward and southeastward journe ...

What Goes Well with Chicken Soup

What Goes Well with Chicken Soup Lots of writers ask me how to get published in the bestselling, â€Å"Chicken Soup for the Soul† book series. That’s because I’m very lucky to be a frequent contributor. In the past few years, they’ve published 40 of my stories.    Submitting is simple. You go to their website: www.chickensoup.com, fill in your name, address, etc., and then just paste your story. Authors receive $200 plus 10 books per story. CSS editors receive over 5,000 submissions per book. The editors want stories, not essays. I keep the term â€Å"a Chicken Soup moment† etched in my brain. At this point, I’m acutely aware of when I’m experiencing a Chicken Soup moment. Or notice that someone else is. I was reading a friend’s Facebook post. On her FB page, she posted a beautiful picture of a Christmas decoration she kept up all year and wrote, â€Å"I hung these three angels from my dining room chandelier at Christmas two years ago and they have never left.† Her caption for her picture: â€Å"Angels Watching Over Me.† The instant I saw that, I e-mailed her, suggesting that was a perfect Chicken Soup moment. Your life is filled with Chicken Soup moments. You just have to see them. Those moments do not need to be huge, as in a miraculous medical recovery. You can find them in the simplest of experiences. Although I have had stories accepted about my spinal cord injury, simpler topics have included: â€Å"The Appointment,† about my husband falling apart when our dog got groomed for the first time, â€Å"Little Things Matter,† about not celebrating Valentine’s Day because we didn’t want to bother, â€Å"My Husband is on a Diet† about family humor, â€Å"Mud-dling Through,† about how I stopped to help an old dog get up from a mucky sandbar. I’m seeing a slight trend of CSS accepting more humor, as well as just a tiny touch of edginess. In â€Å"Chicken Soup for the Soul: Shaping the New You,† my humor story has the following dialogue. Last night he screamed from the bathtub, â€Å"I’ve got it!† I called out from the den, â€Å"Geez Bob. I hate to think what you mean In another book, â€Å"Think Positive,† I tell a story involving my husband having x-rays. The technician forgot to remove whatever they call those things that are placed over nipples so that nipples don’t show up as suspicious spots on the films. I have this dialogue: â€Å"What are people going to think if you’re wearing nipple buttons?† I grabbed his nipples and started yanking. A year ago, I would have edited those parts out before submitting. Although the editors have published my reprints, as long as the columns ran in a very small venue, they prefer originals. I retain rights to my stories. However I do agree to give permission to CSS to use my story in various venues. That’s part of the contract. This works in my favor. My stories have appeared in www.beliefnet.com, which is a huge inspirational website. Several of my works have been picked up, also via CSS, Your chances of acceptance are increased if you submit something unique. You can predict the most common topics. A terrific writer/friend submitted a story about finishing his first marathon for the book: â€Å"Runners.† He didn’t get accepted. He’s such a great writer, but one’s first marathon was likely the topic of plenty of stories for that book. CSS editors prefer diversity, and your life is full of it, trust me.

The Curse by Andre Dubus - Story Analysis Research Paper

The Curse by Andre Dubus - Story Analysis - Research Paper Example The curse entails about a rape case, which was witnessed by the character, Mitchell. It concentrates more about his opinions and views concerning the rape case and portrays how it generally affects him both socially and psychologically. Mitchell his hunted with guilt for what occurred has he did not do anything to help. He struggles with conflicts that hunt him internally, as he tries to manage the empathetic emotions. In this aspect fear, for being hurt or injured in the situation prevents him from intervening and the culture code make him question his essence of protection to a woman as a man. The story questions on aspect of manhood, action and inaction. After analysis of our fist character Mitchell, we consider the other essential characters in the story, which are the motorcyclists. The author describes them as egocentric, in human and inconsiderate people who acted in self-interest. He shows how passionate they were as they first entered into the bar, â€Å"their eyes were qui ck, alert as wary animals, and they spoke loudly, with passion, but their passion was strange and disturbing, because they were only chatting, bantering (the curse, p.274) We also have a clear outline of the people present in the bar, the author describes Bob, he described him as a black-haired man who is too big compared to Mitchell Hayes, the author states that Mitchell " looked from the door, past Bob to the empty space of floor at the rear; sometimes people danced there, to the jukebox" (pg.273). The story also analysis on the women and their views and their reactions towards the rape case, in the society, in â€Å"the curse† we have three women involved, we have the rape victim, Mitchell wife, and Mitchell stepdaughter. He states on how he met his wife "One night she came into the bar with two of her girl friends from work. She made sixdollars an hour going to homes of invalids, mostly what she called her little old ladies, and bathing them" (pg.276). The author expounds that after Mitchell gives a clear outline of the rape case to his wife Susan, she says that he did the right thing, Mitchell his portrayed as Susan’s â€Å"little old ladies†. Mitchell does not want to become just â€Å"a good witness† he fills that he ought to have done something. Mitchell feels he himself will be at trial for what he did not do to assist the young woman. In this page, we are able to known about women attitudes and the categories in which Mitchell wife and stepdaughter view the rape case. In the next part of the story, we are able to analyze on struggle that Mitchell went through during the rape period. Mitchell had to submit, like the girl and just watch what was going on. Victimization of Mitchell by the motorcyclists, psychologically affected him. Both the girl and he were considered as victims in the story. Mitchell could not fight the five strong men and to the author explanation, it becomes a rape case to Mitchell. The author states that Mitchell "looked once at her sounds, then looked down at the duckboard he stood on, or at the belly or chest of a young man in front of him," (pg.273). In the next part of the story, the author states on the continuous condition of Mitchell. Mitchell becomes a storyteller, instead of being the hero, in his story telling, Mitchell leaves out the aspect of being the coward person who was not able to assist the victim this haunts Mitchell. The story also analysis the caring aspect of Mitchell to his customers, in the

Arts education interpretation activity Essay Example | Topics and Well Written Essays - 4000 words

Arts education interpretation activity - Essay Example ging from English proficiency to mathematics, however this fails to address the psychological and sociological problems that often serve as the catalyst for re-offending. In order to get to the root of what actually drives prisoner desire to continue a life of criminal behaviour, there needs to be more focus on establishing relationships with habitual offenders to alter these behaviours that pose risk and danger to the whole of society. This serves as the appropriate rationale for the development and launch of an arts education program. Art education, at is foundations, delivers on social justice by promoting social inclusion, establishing emotional intelligence for cultural diversity, and also promotes a desire within arts-educated individuals to continue pursuing life-long learning. Why is this? Arts education inspires a sense of social inclusion for those in the prison system who currently feel alienated and shunned from the rest of society (Kotler Trust 2013). Prisoners can be taught the fundamentals of higher education routinely, which would certainly build their competencies in mastering knowledge. However, only arts education maintains the potential to alter social attitudes and create important psychological connections between culture and the self, thereby inspiring an individual within the prison system to explore maximising their own potential. This proposed arts education pack is designed to build psych o-social strengths within conflicted and frustrated prison populations for long-term rehabilitative outcomes and removing risks from society from those prisoners unable to find appropriate cultural connections that motivate compliance with the social order. The term arts can be interpreted in many ways, including tangible renditions of sculpture, paintings, and music. For this arts education program, however, the intangibles of arts as it pertains to cultural awareness and cultural inclusion make up the foundation of how this education program will be

Theory of Title Essay Example for Free

Theory of Title Essay The State of Arkansas was selected as the example state because of its proximity to surrounding states of Tennessee, Mississippi, Missouri, and Okalahoma and the frequency in which individuals change their residency between the surrounding States. The research examines the type of real estate transfer theory practiced in the State of Arkansas by reviewing relevant case laws, mortgage practices and supplementary materials dealing with contract law and collection of rents. The literature tends to suggest that Arkansas does that follow any particular lien theory and utilizes a combination of each of the three lien theories. The Outline I. Introduction II. General definitions of three theories governing title transfer in United States of America: a. Title theory. b. Lien Theory c. Intermediate theory IIIGeneral effects of theories in practice a. Effects for the lender b. Effects for the borrower IV. Transfer of title in the State of Arkansas a. Prevalent theory used in State of Arkansas b. Review of laws and regulation governing transfer of title in Arkansas . Throughout the United States the rate of housing foreclosures or mortgage defaults continues to rise at an alarming rate. This rise in foreclosures and mortgage defaults in many instances can be attributed to a weakening economy. Many individuals enticed by a strong economy freely entered agreements to purchase homes with little regard to the actual terms of their agreement. A picture of these individuals would usually find young adults in a two to three person household, who finally obtained the opportunity to live the American dream and took full advantage of that opportunity. For many of these individuals this may have been their first home purchase or with decreasing interest rates they believed they could finally afford to remodel their present home to be their dream home. These same individuals knew little about twists and turns of purchasing a home or mortgage finance laws. Many did not use lawyers and simply relied on the advice of the lenders, mortgage companies or real estate agents. Unfortunately, the economy failed to cooperate as those families with two person incomes dropped to one person incomes and those adjustable rate mortgages increased beyond household income. The end result is a slow housing market with individuals actually losing their homes in drastic numbers or selling their homes at reduced prices, which usually means a lost for the average home owner. It affects their ability to purchase a new home and decreases the amount of funds that will be available to local economies through the purchase of other consumer goods. Because our country has become so mobile, allowing individuals to move from place to place with ease, many individuals had no problem locating new areas in various states to call home. Examples of the easy mobility concept are individuals living in the State of Tennessee who find it extremely easy to purchase a home in Arkansas or Mississippi and maintain their jobs in Tennessee. In fact, with the growing pressure to leave the fast life and crime often found in large Metropolitan areas, individuals jumped at the opportunity when confronted with advertisements from small suburbs or rural cities which boosted of the quiet simple life to raise their families while only minutes away from the recreation, entertainment and lucrative employment opportunities of the Metropolitan cities. It was the dream of a life time that many simply could not pass up. Understanding mortgage finance laws of the State an individual intend to purchase a home or understanding mortgage lending theories is extremely necessary and important to any individual relocating to another state or those who have lived in a state and purchase their first home. Unfortunately, most individuals seeking to relocate assume and wrongly so, that the laws regarding mortgage finance are the same throughout the United States. They are unaware of the procedures or consequences involved in retaining their property should they become delinquent in their mortgage payments. When an individual moves from one state to another they subject themselves to the laws of the state in which they are doing business. However, in some states an individual may be able to specifically contract that the mortgage or contract may be governed by the laws of another state. This is seldom used for individual residential mortgages and used primarily in some commercial transactions that occur in another state. Mortgage laws in their new state may or may not be to their advantage and they should know the advantages and disadvantages before they decide on purchasing a home in their chosen state. This is also true for businesses financial institutions lending funds, and other entities crossing state lines to conduct business in other states, i. e. , purchasing businesses or other property or obtaining loans in other states to conduct business in the State of Tennessee. The general belief of the average individual is that once they purchase a home or obtain a mortgage, the title to the property is placed in the name of the borrower and that a lender simply obtains a lien on the property and can only foreclose on the property when and if the borrower is unable to make payments and then, and only when an action is filed in a court of law. This may or may not be true based on the laws and practices of the State in which the transaction originates. Thus, a review of the laws governing the state in which the individual intends to obtain its mortgage will prove extremely beneficial. However a greater benefit will be obtained if the home buyer seeks the services of a licensed attorney or a home buyer counselor. This senior project has chosen the state of Arkansas to review its laws regarding the transfer of title in real property. Arkansas was selected because of its proximity to the State of Tennessee and Mississippi and the ease in which residents move their residency from one state to the other. Thesis Statement) Individuals entering into financial agreements to obtain funds to purchase real property should always know which of the three theories of real property transfer is practiced in the state in which they intend to obtain a mortgage. Literature Review The purpose of this senior project is to first review the three general theories governing real estate transfers as practiced throughout the United States, and how they can affect the transfer of property from a lenders perspective and from a borrower’s perspective. The project will also review the present status of mortgage lending and home buying throughout the United States and how the theories of title transfer has affected the present market. The project uses the State of Arkansas as the example state for its review and analysis. The project will explore and review how the laws in the State of Arkansas’ differ from other states in the United States and review the effects of such laws on individuals and businesses doing business within the State of Arkansas. Determining what theory is utilized within a particular state when obtaining a mortgage or transferring real property will prove extremely beneficial and alleviate serious problems for both the lender and borrower, should problems arise regarding ownership of the property, or in foreclosure proceeding. Knowing ones rights will assist the homebuyer in understanding what can happen to their property if they should become delinquent in their mortgage payments and allow them an opportunity to attempt to save their property or their equity interest should a foreclosure action be filed against them. The review will also examine how the failure of borrowers to understand property transfer theories can have a devastating affect on their ability to retain ownership of the property during a foreclosure action. Information released from Foreclosure Data online and posted on October 19th, 2007 indicate that the growing number of mortgage foreclosures has begun to affect more than just residential homeowners, â€Å" in some residential blocks where ten to twelve homes in a twenty-five home block, have ‘bank owned’ for sale signs on their lawns. The rising rate of foreclosures throughout the United States provide justification for the idea of borrowers taking more responsibility in determining their rights and the potential consequences when entering mortgage contracts where ever they live. In order to understand what happens if default occurs residents must always be aware of the three basic theories practiced throughout the United States relating to transfer of title and then attempt to understand which theory is actually practiced in the state in which they desire to purchase real property. This is especially relevant as many state fail to practice a single theory and combine several theories to develop a single procedure for dealing with property transfer in their state. For the most part title theory of a particular state is determine by case law, even in situations where states have adopted statues defining how title transfers will be conducted in their state. General Definitions of title transfer theories Following a broad adoption of English pure title theory by the American States, three theories of title have evolved. According to the Restatement Third of Property and (Mortgages), the evolution of title theory from the English common law has served to reduce the rights of the mortgagee under the ‘pure’ or original title theory of England. The pure title theory worked a defeasible conveyance of the fee to the mortgagee, which obtained legal title, the right to possession, and the right to collect the rents and profits. (2) This evolution included the development to (a) lesser title theory, (b) lien theory, and (c) intermediate theory. While the three theories are useful for comparisons, implementation of the theories is by no means standard. The practical effect of the theories has been minimized because in many jurisdictions the harshness of pure title theory has been removed by statue or by case law or in many instances the drafters of mortgages have learned to achieve the advantages of the alternative theories at the time the mortgage documents are prepared and signed. According to Sandy Gadow, an escrow expert, and a member of the American Land Title Association, in a title theory state, the borrower does not actually keep title to the property during the loan term. The seller gives the buyer/borrower a deed to the property but when the borrower signs the mortgage for the loan the borrower gives the title back to the mortgage holder. The lender then holds title to the property, as security only, until all loan payments have been made. During that time the borrower has the right to possession of the property, and the lender delivers the deed back to the borrower only after the loan obligation has been satisfied. (3) In most states the instrument used is known as a trust deed. The lender actually maintains ownership of the property until the debt is paid in full. The process is quite different in a lien title state. The Restatement (third) of Property, section 4. 1 (1997) indicates that in a lien theory state, the buyer holds the deed to the property during the mortgage term. The buyer promises to make all payments to the lender and the mortgage becomes a lien on the property, but title remains with the buyer. The lender’s lien is removed once the payments of all loan payments have been completed. (id 2) The two theories are similar in that they allow the borrower to actually possess the property but differ regarding actual ownership of the property. In a title theory state the borrower actually owns the property with the lender retaining the deed only for security whereas in a lien theory the buyer retains the deed and the lender retains a lien on the property. The third theory, the Intermediate theory can be considered a compromise theory between the title theory and the lien theory. Again, according to Sandy Gadow, an escrow expert, and a member of the American land Title Association, â€Å"the title remains with the borrower, but the lender may take back title to the property if the borrower defaults on the loan. † (Id at 3). An Arkansas Law review article in 1992 examines the effects of conflict of laws, and indicates that in an intermediate jurisdiction the mortgage is a lien until default, as it would in a lien theory state. Upon default, legal title passes by operation of law to the mortgagee and with the title comes the right to possession, rents and profits. (4) In her article, Sandy Gadow argues that â€Å"Foreclosure proceedings in a lien theory state may be more difficult for the lender than a title theory state, due to the fact that the buyer is holding title to the land and not the lender. † ( Id at 3). The theory prevents the lender from entering onto the property and taking possession of the property at will. The lender is forced to take legal steps to regain ownership of the property. The theory actually gives the borrower more time before they are forced to give up the property, and they also can continue to maintain possession of the property and keep any rents collected as a result of their ownership until a legal foreclosure action is completed. Today, mortgagees customarily profit from interest. Possession by the mortgagor is commonplace in title theory states, although some states still hold that possession remains with the ortgagee as an incident of legal title. Another real estate treatise reports that title theory mortgagees can take possession of the mortgaged property upon default and before foreclosure. (6) A borrower to a mortgage should always concern themselves with which theory will give the greatest ownership interest in their property and allow them to retain in terest in the property as long as possible. Any theory that immediately transfers the right to possession, fee simple ownership and any other legal rights from the borrower back to the lender are not in the best interest of the borrower. The literature thus far appears to suggest that a lien theory state would provide the better advantage to a borrower in that the borrower usually retains a right to ownership and possession until foreclosure is accomplished in a court of law. Many states within the United States adopt a lien theory when transferring property. However, like Arkansas, these same states do not exercise a hard and fast rule on the use of a title transfer theory. However, most states can be grouped in one of the three title theory categories. In general throughout the United States, approximately of the fifty states only sixteen states follow a lien theory, with the remaining thirty four (34) states being described a title theory states. More specifically of the six states that share a boundary with the State of Arkansas, which include: Texas, Oklahoma, Missouri, Tennessee, Mississippi and Louisiana, five of the six states are described as practicing a title theory in property transfers, and only one of those states, Louisiana is described as following the lien theory in title transfers. In Arkansas, in the case of Bank of Oak Grove V. Wilmot State Bank, a case considered as an authority on Arkansas Mortgage law, the court refused to adopt a particular theory on the formalities of what the court termed the â€Å"broad and undefined a principle as lien versus title theories of mortgages†. (5) In general Arkansas courts do not appear to have frequently discussed title theory since a search of Westlaw for â€Å"title theory in Arkansas† produces only Bank of Oak Grove v. Wilmot. However, several cases align themselves and follow the decision of the Bank of Oak Grove case and its findings. Such cases cite the bank of Oak Grove case as an endorsement of title theory use in the State of Arkansas. Fully discerning the nature of Arkansas’ theory of title requires a discussion of whether a mortgage is merely a lien (lien theory) or whether it passes owner-type interest and powers to the mortgagee. A survey of Arkansas mortgage case law reveals two tracks of cases supporting different conclusions about whether a mortgage is only security for a debt. As early as 1856, equity held that a mortgage is only security for a debt. (7) By 1866, the Arkansas Supreme Court established that â€Å"now in both law and equity† a mortgage is mere security for a debt, and removed the presumption that a mortgagee takes possess if there is no proof other wise. (8) Eighteen years after Trapnall, the court said that the legal estate in mortgaged property passes to the mortgagee and that possession follows the egal title; the same was said 45 years after Trapnall in a 1911 case, Whittington v. Flint. (9) If it follows that legal title not only delivered possession but also delivered what a 1988 Arkansas Federal court interpreting Arkansas law called the incidents of possession (rents, profits and what appears as beneficial interests), Arkansas would have been a title theory state. The Arkansas Supreme Court has not overturned these cases, and the Arkansas Attorney General was citing the case as late as 1998. 10) After Wilson, the Arkansas Supr eme Court held that â€Å"in equity† a mortgage is only a security interest, and that the mortgagor is entitled to deal with the land as its owner, entitled to rents and profits and alienation as long as he is in possession and he and takers under him do not impair the rights of the mortgagee. (11) The 1959 update of a key Arkansas mortgage title treatise follows that a mortgage is a mere security interest. The mortgagors were treated as owners in a 1980 case that characterized an absolute deed held for security purposes as an equitable mortgage, finding that the father who purchased the real estate was the mortgagee and holding that the divorcing son and daughter-in law must split the property. This inferred that the son and daughter-in-law were mortgagors and in effect owners of joint property. (13) The lack of clarity on some points suggests that mortgagors should not rely on the formalities of title theory in the State of Arkansas. Possession, Redemption and Rents as they relate to title transfer in Arkansas Better understanding Arkansas law requires discussions about possession, redemption and rents. The custom in Arkansas is that the mortgagor takes possession, but case law suggests that possession may be based on the terms of the agreement or interest rather than accruing automatically to the holder of legal title. More recent opinions mitigate towards possession being retained by the mortgagor. Similarly, the Arkansas Attorney General opined that the 1980 Nelson court took a â€Å"common sense approach† holding that the mortgagor retains a possessory interest that makes him â€Å"at least the equitable owner. † (14) This suggests a conclusion that possession can be devised by the contract language, which can grant immediate possession or possession upon default. Not withstanding the language, mortgagees are likely to intend that possession be in the mortgagor, and mortgagees are likely to want to avoid mortgagee in possession status and the duties that derive from it. To preserve its collateral, the mortgagee should include clauses providing for (1) appointment of a receiver; and (2) right to enter and inspect. A power of sale clause may be advisable; however, the Arkansas Code implies a power of sale in every mortgage of real property. (15) Arkansas does not follow title or lien theory or intermediate theory as the latter is described by secondary sources. Like title theory, the mortgagee appears to secure legal title. The more recent cases appear to treat the mortgagor as the owner as would be the case under lien theory. Arkansas appears to practice its own brand of intermediate theory in which the incidents of possession follow actual or constructive possession. Drafting may govern possession and rents in Arkansas law. The literature and case law indicates that the custom in Arkansas is that the mortgagor takes possession, but case law suggests that possession may be based on the terms of the agreement or intent rather than accruing automatically to the holder of legal title. In the case of Whittington (1884) and Wilson (1911 held that legal title passes to the mortgagee and with it possession, unless there is a reservation of the right to occupancy. Id 9) Trapnall held in 1866 that there is no presumption that the mortgagee takes possession. (Id. 8) Most recent opinions mitigate towards possession being retained by the mortgagor. The First Federal case addressed the incidents of possession, saying that in a â€Å"garden variety mortgage,† the borrower has â€Å"retained all of the incidents of possession including the right to rents, profits, and crops,† and he may do with them as he pleases until the mortgagee takes possession, at which point these incidents pass to the mortgagee. Similarly, the Arkansas Attorney General opined that the 1980 Nelson court took a â€Å"common sense approach† holding that the mortgagor retains a possessory interest that makes him â€Å"at least the equitable owner. † (Id 14) Neither opinion states that the mortgagor and mortgagee can not agree otherwise. This suggests a conclusion that possession can be devised by the contract language, which can grant immediate possession or possession upon default. In comparing the cases, it may be helpful to note the references to the language of the agreements, and consider that the language of Arkansas mortgages has varied greatly. Whittington states that â€Å"possession follows the legal title, unless controlled by stipulations in the deed, or by the apparent intention of the parties. † (Id. 9) It is an old case that may have succumbed to the presumption that Trapnall dismissed. American Jurisprudence publishes in its form book what it titles the Arkansas-Mortgage and the Arkansas-mortgage-Traditional form. The traditional form is more in the form of a sale agreement stating that mortgagee â€Å"does grant, bargain, sell, and convey to mortgagee, and to its successors and assigns forever† the mortgaged property to have and to hold the same to mortgagee, and to its successors and assigns forever. † It then provides the conditions under which the â€Å"sale† shall become null and void. (16) Notwithstanding the language, mortgagees are likely to intend that possession be in the mortgagor, and mortgagees are likely to want to avoid mortgagee in possession status and the duties that derive from it. It is evident that despite the rules and statues individuals seeking to obtain a mortgage will need to be mindful of what the law is and if they desire that something different needs to occur on any matter, if the issue is addressed in the contract agreements and agreed to by both parties, the courts will upon the original intent of the parties entering the contract. Treatment of Rents in Mortgage transfer In understanding actual practice regarding ownership interests one must also review and discuss how rent is treated in the State of Arkansas.