Financial Analysis of Sainsbury PLC Essay Example for Free

Financial Analysis of Sainsbury PLC Essay This report will focus upon the financial performance over a two year period of a FTSE 100 company. It will seek to ascertain how well the company has performed by scrutinizing profitability, liquidity, efficiency, gearing ratios and working capital. In addition to the aforementioned points, it will dwell upon economic factors to discuss the impact they have had upon the performance of the business. The FTSE 100 started in the year of 1984 and was based upon the 100 largest companies on the London Stock Exchange, and it is seen as an emblematic indicator for the strength of the British economy (iforex, trading section). FTSE 100 companies represent about 81% of the market capitalization of the London Stock Exchange (Nationwide Building Society, glossary section). Within it lies a substantial contribution to the UK economy and the economic power of these firms mean they would have a fairly large ripple effect upon the nation’s economy should there financial performance reach a state of discontentment. Subject company and history The subject company for this report will be J Sainsbury Plc which was founded in 1869 by John Sainsbury and his wife, Mary Ann Sainsbury in London (Sainsbury Plc, history section). The organization has grown to be one of the UK’s most eminent supermarkets. Some of its remarkable aspects include launching TU clothing in 2004, launching Try Something New Today in 2005 to promote healthy eating, and becoming the world’s largest fairtrade retailer in the year 2010 (it is understood that almost one in every four pounds spent on fairtrade products is at Sainsbury), in 2012 the organization became the proud sponsor to the Paralympic games (this will be diligently examined later in the report to see what effect, if any it has had upon the company’s revenue) (Sainsbury Plc, history section). In an industry predominantly owned by Tesco (a market share of 29.9% as of January 2012 according to BBC Business News), Sainsbury has had to work hard to stay in competition. Its persistency has been a key component to its contrivance in the industry and other ventures to which Sainsbury has embarked upon, namely, its banking venture (a 50/50 venture with Lloyds TSB) which commenced trading on the 19th day of February 1997 (Sainsbury Bank plc). The firm lost its position as market leader in the year of 1995 to its rival Tesco and subsequently dropped to third in market share after ASDA experienced a 5% rise in profits (BBC, Business News section). As at March 31 2012, Sainsbury’s has a total number of 440 convenience stores and 572 supermarkets which is currently due to increase (Sainsbury, Store Portfolio section). The question is, how much has its expansionary policy supported its profits whilst maintaining equilibrium with costs? Profitability Within this report, diligent focus will be shown to the financial year of 2010 and the final year of 2011 as the profitability, liquidity, efficiency, gearing ratios and working capital is examined. The profit from disposal of properties in 2010 was  £27m and  £108m in 2011 which shows a dramatic appreciation in profit when compared. Moreover, the company also showed an increase in combined profit from  £585m in 2010 to  £640m in 2011 (Sainsbury, Income Statement 2011 section). This shows that the company’s overall performance has improved over the course of 12 months by 9.4%. Further to the aforesaid points, the greater percentage of revenue was derived from the sale of products and services, standing in at  £22,943m in 2011 (Sainsbury, Income Statement 2011 section). This shows an increase in product purchases and an increase in market share (an increase of 16.1%, Telegraph, September 2011) leading to more sales, demonstrating that the firm’s strategy has worked for the financial year when compared to the sales of 2010 of  £21,421m (Sainsbury, Income Statement 2010 section). Return on Capital Employed can be defined as follows: â€Å"Return on capital employed is a fundamental measure of business performance as it compares the operating profit with the total capital used to generate that profit.† (Black, 2009, p.212). For Sainsbury, this figure was 11% in the financial year of 2010 and 11.1% in the year of 2011 (Sainsbury, Annual Report 2011 section). Such a minor change doesn’t manifest a huge degree of progress. In the annual report for 2011 p4, the company does give an account for this and state that growth was lower than the previous year due to the cumulative effect of its accelerated investment in space growth which started June 2009. The company also holds seventh place for volume market share in the clothing industry and now has clothing sales growing faster than food, 17% to be exact with year on-year growth (Sainsbury, Annual Report 2011 section). Celebrity fashion icon, Gok Wan has been a huge support in inciting growth of the TU brand by launching a clothing range at Sainsbury in 2011 which has been the main source of sales boost. (gok wan, Sainsbury TU section). In addition to the appreciation of sales, the cost of sales rose from  £19,964m in 2010 to  £21,102m in 2011. Prominent contributing factors towards the rise in costs are the variation in Fiscal policy (Sainsbury’s, Directors report 2011 section) which increased the rate of VAT from 17.5% to 20% on the 4th day of January 2011 (HM Revenue and Customs, 2011) along with the increase of the company’s workforce due to its addition of 1.5 million square feet of space from 2011-2012 (The Independent, news section). As the profitability of the organization is scrutinized, it is important to look deeper into what has resulted in an increase in profit from the year 2010 to 2011. From an economic perspective, the Bank of England’s Monetary Policy Committee (hereinafter referred to as MPC) changed the discount rate to 0.5% on the 5th day of March 2009, positively influencing public spending and reducing the cost of borrowing (Bank of England, 2009). The concept upon the reduction in the cost of borrowing is that more customers have resorted to using credit to fund their purchases (According to a study conducted by Visa Vanquis, consumer spending on credit increased by 3% in September 2011 when compared with statistics for 2010). It is understood that the variation eluded to above has been of support to the company in its financial borrowing, enabling it to fund its expansion referred to in the above paragraph. The downside is that it has had a fundamental impact upon its banking venture namely, profits attained are not what they could be if the discount rate was higher, notwithstanding the fact that, the bank reported a 9% increase in profits in 2011 (This is money, news section) possibly due to the abovestated research on consumer spending. A higher base rate would mean higher priced loans leading to greater profits accrued (other factors being equal). Taking into consideration the above-mentioned point, the company had the opportunity to utilize the reduced interest rate in support of its expansion and other purchases to aid the loss of profit (due to low interest rates) from the sales of loans and credit cards. In criticism of the 0.5% base rate set by the MPC, Sainsbury’s Chief Executive stated it was the wrong decision to reduce it, the small businesses that supply Sainsbury were struggling to borrow and this of course had a substantial ripple effect upon the company’s financial performance (Daily Telegraph, news section). This gives a clear indication that the profit accumulated for 2011 could of been higher without the economic discontentment. It gives some direction to why the cost of sales were high due to the purchasing price of products from smaller businesses to which supply Sainsbury. Having analyzed the profitability of Sainsbury, its within good reason to compare this data with that of its main competition, namely, Tesco for which happens to be a pivotal comparison due to them standing within similar grounds in terms of business models and future company goals. Tesco UK gained  £56,910m in sales for the financial year 2010 and saw an increase for year 2011 with sales in at  £60,931m (Tesco, Annual Report 2011 section). There is a substantial difference in sales, however Tesco have 3,054 UK stores in comparison to Sainsbury’s combined 1,012 stores, in addition it has the greater market share (Tesco, storefinder section). Tesco’s Return on Capital Employed for 2010 stood at 12.1% and 12.9% for the financial year 2011 (Tesco, Annual Report 2011 section) and according to the directors report the company has set itself a target to increment this to 14.6% by 2014/15. This, together with its sales exhibits better performance than that of Sainsbury and epitomizes the comprehension to why the company holds the greatest share of the market. It shows clarity that Tesco did better with capital than that of Sainsbury, however Sainsbury used a large amount on expansion which the results of will be shown at a later date. Liquidity With liquidity being the second focal point, it is necessary to look at the credit facilities available to the organization in question. ‘Sainsbury has overall debt and credit facilities of  £3 billion at its disposal’, the principle element of Sainsbury’s core funding comprises of two long-term loans of  £1,069m due 2018 and  £840m due 2031, secured over property assets (Sainsbury Annual Report 2011). Further to the previous stated loans, the company has unsecured debt of  £180m and  £50m due between 2012 and 2015 along with  £190m of convertible bonds due July 2014 (Sainsbury Annual Report 2011). The Current Ratio for Sainsbury in the financial year of 2010 was 0.64 and 0.58 in the financial year 2011. A Current Ratio may be defined as a measure of an organization’s ability to pay its shortterm debts, ideally it should stand in at 2:1 (Atrill McAllen, 2008). The ratio for 2010 indicates that the company would be in a better position at paying off its obligations if they were due at that point in time. However due to the ratio for both years being under 1, it shows the company is not in a good position. Ironically however, having ascertained the available credit to the organization, this states otherwise. In comparison to its competition, Tesco had a current ratio of 0.73 in the financial year 2010 and 0.65 in the financial year 2011. This is somewhat similar with Sainsbury as there is only a gap of .2 in difference. Both companies figures look worrying, however the ability to turn stock into cash is another focal point to which will be later scrutinized. Having revisited the company’s balance sheet, its Net debt stood at  £1,549m in 2010 and  £1,814m in 2011 (an increase of  £265m). This difference quintessentially indicates that the company has been expanding over the course of a year. In the firm’s annual report for 2011 it shows the increment was due to rapid estate development (the addition of new Sainsbury Convenience stores) which was to an incontrovertible extent funded by the sale of leasebacks and advanced working capital (Sainsbury Annual Report 2011, p5). The appreciation in debt manifests the fact that Sainsbury hans’t cleared its existing debt, yet only continued to borrow more. Astonishingly however, the amount borrowed has been put to positive use in funding the expansion of the organization’s convenience stores. According to the Independent in March earlier this year, the company grew its market share of the convenience store market in 2011 with sales up 20% following the opening of 15 new stores. Further to the above-mentioned points, the company pursued further borrowing to enhance its profitability by expanding (proven to be a remunerative venture), enabling the firm to pay back its source of funding when required to do so. The idea of this long-term investment is that Sainsbury will gain a larger market share (forcing other less competitive companies to abdicate there share of the market) and increased profits both short and long-term. In criticism of the technique, the company should take into consideration the unforeseen changes in the market, namely demand for its products and services and of course future economic changes. How does it justify itself financially should there be a decrease in demand? The epitome lies with XL Airways, according to BBC News in 2008, the company hit financial discontentment after failing to secure further funding (up until that point it was in the process of expanding) due to unanticipated changes in the economy. Efficiency With regard to the organization’s efficiency, it is difficult to ascertain the overall effectiveness of performance without conducting in-depth research as it can be fairly arduous to gather enough data from ratio analysis. However, the business’s average inventory turnover (calculated by sales divided by inventories, Agyei-Boapeah, 2012) for the financial year 2010 was 30.5 (Sainsbury’s Income Statement 2010, p16), compared with 28.2 for the financial year 2011 (Sainsbury’s Income Statement 2011, p18) shows a minimal difference. The figures imply a poorer performance from the company in 2011, yet sales had subsequently increased in that year, furthermore, it was part of the organization’s goals to increment the sale of non food products which gives an account for the less frequent replacement of inventories (Sainsbury’s Income Statement 2011, p2; Sainsbury’s Annual Report 2011, notes 16). In order to gain a greater interpretation of the company’s efficiency its necessary to look at other ratios. Asset turnover (calculated by revenue divided by total assets, Agyei-Boapeah, 2012) for the financial year 2010 was 1.83 and 1.85 for the financial year 2011 (Sainsbury Group Income Statement 2011, p1). The higher the figure, the better. Having scrutinized these figures, it is clear to see a slight inclination in sales generated from assets for 2011. Although, the company has only seen a small contribution of profit accrued from the sale of assets. This may be understood by reviewing the firm’s growth policy once again and recalling that they have spent more on expanding and accumulating assets than selling assets (Sainsbury Annual Report 2011, p5). A comprehension of the above-mentioned points give clarity that the company’s management have conducted there duties efficiently. The prominence lies within sales performance and the ever growing multitude of stores to which the firm has within its ownership. The increased space exhibits a positive rate of expansion (15.9% according to Sainsbury Income Statement 2011, p2), furthermore, only a small percentage in change on the sale of assets and a lower inventory replacement. Further to the aforesaid point referring to replacement of inventories, it could be interpreted that as the firm sees a continuity of expansion, more goods are purchased through economies of scale (greater sized orders at lower prices, meaning less reordering) as is it the case that the company is introducing further non food products, namely televisions which aren’t everyday purchases. Yet of course it is likely to be the latter having previously identified company intentions (Sainsbury Annual Report 2011, p2). Finally it is prudent to take the ratios and compare them with that of Tesco. In the financial year of 2010, 20.8 was Tesco’s inventory turnover ratio and 19.2 in the financial year of 2011 (Tesco Annual Report 2011, p94). Again these figures represent an even poorer performance, but Tesco as do Sainsbury, sell a number of non food-products, 22% of sales are non-food products and the company is the UK’s largest non-food retailer (Tescopoly.org, Our Business section). Asset turnover for Tesco in the financial year of 2010 was 1.56 and 3.18 for the financial year 2011 (Tesco Annual Report 2011, p106). This shows some disparity in business efficiency and shows the company performed better in the year of 2011 when compared with 2010 and it also performed much better than Sainsbury (however it is mandatory to consider the company’s goals in comparison to that of Sainsbury). Asset Turnover comparison of Sainsbury with Tesco. Gearing Ratios The gearing ratios (Long-term liabilities) for Sainsbury on the 20th day of March 2010 were 32.86 compared with 30.79 on the 19th day of March 2011 (Telegraph shares, p1). This implies the company’s rate of borrowing to fund its activities was higher in the year of 2010 and as a result of the increase in profit for 2011 as eluded to above, activities were self-funded more often. The ratios referred to in the above paragraph doesn’t have the greatest of difference, meaning there was still a substantial amount funded by borrowed funds in 2011. A contribution to the high rate of borrowing is carefully examined by looking at the Office of National Statistics for 2010 and 2011. According to the Office of National Statistics, Consumer Price Index (hereinafter referred to as CPI) in the 12 months up to September 2010 saw a 5.2% increase in alcohol and tobacco products, a 5.1% increase in food and non-alcoholic beverages, 4.4% increase in communication and a 2.5% increase in other goods and services, including fuel (Office of National Statistics 2010/2011 Report, p1). Such increases may have caused customers to abstain from certain purchases or make less frequent purchases, this as a ripple effect would significantly impact upon the organization’s functioning. Ironically however, in 2011 CPI was at 5.2% in September, compared with 3.1% in September 2010 (Office of National Statistics 2011 Report, p1). A significant increase would anticipant further borrowing, yet this isn’t the case due to above-mentioned facts in this report. Sainsbury’s strategy to invest in expanding has given support to its profits for 2011 and enabled the business to reinvest these into its activities. This therefore negates the argument/concern over economic impact upon trading for 2011 and shows a return on investment when compared to company sales and profits with an amalgamated comparison of 2010/2011 financial performance (Sainsbury Income Statement 2011, p1-p5). Working Capital Management Moving on to the final focal point in this report, working capital. This is the measure of both a company’s efficiency and its short-term financial health (Agyei-bopeah, 2012). The working capital of the organization has seen a substantial increase in the financial year of 2011. The firm’s working capital increased by  £78m for 2011, which it states was primarily due to increased inventories which is  £110m higher than that at March 20th 2010 (Sainsbury Annual Report 2011, p1). An examination of ratios will help to ascertain the effectiveness of the firm’s working capital management, however it appeared difficult to derive this information from Tesco due to discrepancies to way in which data was laid out. Working Capital to Sales ratio can be calculated by taking working capital and dividing it by sales X 100 (Agyei-Bopeah, 2012). In the financial year of 2010 this figure was 1.5.7 and 1.2.8 for 2011. This manifests a less appreciated rate of performance for the year 2011, however the company did introduce a substantial number of non-food products. The company successfully managed to make cost savings of  £50m in the year 2011 (Sainsbury Interim Results 2011, p1). In an argument against this successful business practice, is it ethical for the company to pay farmers the minimal amount per gallon of milk to keep its customer want’s satisfied? Herein lies a problematic issue to which the organization faces in its ever growing desire to reduce costs. As a result it has led to pragmatism in critics of the firm’s fairtrade brand image and to what extent it coincides with the image. British farmers are forced to pay the price of supermarket price wars (The guardian, Saturday 2 July 2011, p48). With such concern over how much the firm should be saving on costs to attain a better position with working capital, it fails to take into consideration its ethos on fairtrade. It transpires to be the case that in order to make huge savings to support its growth in working capital, the company must continuously force its suppliers to drive the price of their products down as other factors change (cost of production, economic variations, energy/fuel prices and the cost of raw materials). On a more positive note, the company has managed to increase its working capital from the financial year of 2010 to 2011, this indicates positive changes in its business activity and demonstrates that it has good working capital management. As a result of the increase,  £12m in debt was paid off in the year of 2011. Yet as this section happens to coincide with efficiency, it epitomizes the effectiveness of the company strategy for 2011. Conclusion Sainsbury has set itself a fair number of targets to which are laid out in the company annual report for 2011. One being to increase space growth of 15% in two years set in the year of 2009 (Sainsbury Annual Report 2011, p1). The company exceeded this target percentage by .9% (Sainsbury Annual Report 2011, p1) which indicates its able to meet its targets, yet it also indicates more capital was spent on expanding and possibly more than it intended. As eluded to in the above sections, Sainsbury’s decision to rapidly expand has proven to be a remunerative venture and shown a slight increase in company profits for short-term comparisons between the financial years 2010 and 2011 where sales have grown by 9.4% (Sainsbury’s Income Statement 2011, p1). Such developments in the business will only give adequate comparisons after a greater interval enabling the researcher to comprehend as to how much the accelerated growth has had on the firm. In addition to the company’s growth in size it saw a huge appreciation in demand for its clothing brand, TU. It is understood that since fashion icon Gok Wan introduced a range of clothing, sales saw a growth of 17% as a year on year comparison for 2011 (Sainsbury’s Media, Latest Stories, p1). It is likely that this will continue to grow and complement the company’s expansion. Further to the above points, the liquidity ratios of the company are poor at this point in time which is due to accelerated growth (therefore negates the argument of poor performance). However when the firm finishes its expansion it is highly likely that the ratio will improve which is subject to no further large projects. Further to information ascertained from the company Annual Report of 2011, the company should be capable of repaying its loans as of there due dates thanks to its increased number of stores accumulating further profit. In addition to aforementioned points in the beginning of the conclusion, Sainsbury’s have five focus areas, great food at fair prices, accelerating the growth of complementary non-food ranges and services, reaching more customers through additional channels and growing supermarket space (Sainsbury’s Annual Report 2011, p3). Having already acknowledged the prosperity of its space growth, this also happens to coincide with its focus on reaching customers through additional channels as 37 new convenience stores were opened in the latter part of 2010 to the beginning of 2011 (Sainsbury’s Media, Latest Stores section). Since analyzing the company gearing ratios and how much it has in long-term debts, it is clear to see it could be a perilous problem for Sainsbury. The firm has made an audacious decision to invest in expanding in the hope for substantial returns in the not to distant future, yet this is not guaranteed income. If demand falls for the company’s products and services or there is a problem to which later impacts upon its brand image (the company is disproved to be a fairtrade retailer for example) the firm may find itself being liquidated if it is unable to repay the loans. Points eluded to in the above paragraph are a matter of deep concern to the organization and from research administered it doesn’t transpire to be the case that the firm has a contingency plan to support them with potential depreciation in demand. A contingency plan and in addition, a contingency fund is something to which Sainsbury should take into the highest of consideration should one not have already been devised (yet it is unlikely this would be the case). It will be of support to the firm in planning for unforeseen changes. References In this report the following sources were dwelled upon for guidance in ascertaining facts, extracting data and for the purpose of comparison. Books Atrill, P., McAllen, E. (2008) Accounting and Finance For Non-Specialists. Sixth edition. Prentice Hall. Harlow. Datta, S. (2011) Economics, Making sense of the modern economy. Third edition. Profile Books. London N, Gregory Mankiw. (2001) Principles of Economics. Second Edition. Harcourt College Publishers. Images James Blake (2012) Sainsbury Supermarket. [image online] Available at: http:// www.jbiwebdesign.co.uk/website-marketing/7-marketing-tips-we-can-learn-from-sainsburys [Accessed: 12 December 2012]. Lecture Notes Agyei-Boapeah, H (2012). Financial Statement Analysis 2. Lecture notes distributed in the topic BMAIE001AZ2012/3 Managing Finance. Liverpool Hope University, Liverpool on 02 November 2012. Agyei-Boapeah, H (2012). Working Capital Management 1. Lecture notes distributed in the topic BMAIE001AZ2012/3 Managing Finance. Liverpool Hope University, Liverpool on 09 November 2012. Agyei-Boapeah, H (2012). Working Capital Management 2. Lecture notes distributed in the topic BMAIE001AZ2012/3 Managing Finance. Liverpool Hope University, Liverpool on 16 November 2012. Websites BBC News (2004) Sainsbury Loses Out To Rivals. [ONLINE] Available at: http://news.bbc.co.uk/1/ hi/business/3682544.stm [Accessed: 24 October 2012]. BBC News (2012) Tesco Market Share Dips Below 30%. [ONLINE] Available at: http:// www.bbc.co.uk/news/business-16817254 [Accessed: 18 October 2012]. BBC News (2008) Thousands Stranded By XL Collapse. [ONLINE] Available at: http:// news.bbc.co.uk/1/hi/7611639.stm [Accessed: 21 October 2012]. Bank Of England (2009) Statistical Interactive Database Official Bank Rate History. [ONLINE] Available at: http://www.bankofengland.co.uk/boeapps/iadb/Repo.asp [Accessed: 19 October 2012]. Guardian (2011) British Farmers Forced To Pay The Cost Of Supermarket Price Wars. [ONLINE] Available at: http://www.guardian.co.uk/environment/2011/jul/02/british-farmers-supermarketprice-wars [Accessed: 23 October 2012]. Gokwan (2011) Sainsbury Collection Press . [ONLINE] Available at: http://www.gokwan.com/ goks-video-blog/sainsbury-collection-press-launch/ [Accessed: 23 October 2012]. iforex (2012) FTSE 100. [ONLINE] Available at: http://www.iforex.com/ftse-100 [Accessed: 18 October 2012]. Independent (2012) Small Store Openings Boost Sainsburys Profits. [ONLINE] Available at: http:// www.independent.co.uk/news/business/news/small-store-openings-boost-sainsburysprofits-7579664.html [Accessed: 20 October 2012]. J Sainsbury (2012) About Us, Store Portfolio. [ONLINE] Available at: http://www.jsainsbury.co.uk/about-us/store-portfolio/ [Accessed: 25 October 2012]. J Sainsbury (2011) Annual Report 2011. [ONLINE] Available at: http://annualreport2011.jsainsbury.co.uk/downloads/pdf/sainsburys_ar11_note_26_notes_to_the_cash_flow_statements.pdf [Accessed: 18 October 2012]. J Sainsbury (2011) Financial Statements, Annual Report, Balance Sheet. [ONLINE] Available at: http://annualreport2011.j-sainsbury.co.uk/financialstatements/balancesheets.shtml [Accessed: 18 October 2012]. J Sainsbury (2011) Financial Statements, Annual Report, Cashflow. [ONLINE] Available at: http:// annualreport2011.j-sainsbury.co.uk/financialstatements/cashflow.shtml [Accessed: 18 October 2012]. J Sainsbury (2011) Financial Statements, Financial Review. [ONLINE] Available

Ian Lemke - Compare and Contrast Essay Example for Free

Ian Lemke Compare and Contrast Essay Compare Contrast In 1848, Cady Stanton gave her Declaration of Sentiments, pleading for the right to vote and fair treatment to be given to women, which was promised already in 1776. While the country was still young, John Adams wite, Abigail wrote him a letter requesting the rights of women be Included In the document he was having written. This was the Declaration of Independence. 30th of these selections have a common goal: they are being written with the purpose to gain women more rights. Even though they were written with the same purpose in mind, they are very different. The mood and layout of the articles are completely different, not to mention they had completely separate audiences Despite the obvious differences, they both hit home with their intended audiences. Abigail wrote her letter tor her husband alone. Him being a delegate to the First conunental congress, she had hopes In mind that she could give women the rights they deserve, that she could raise the status of women by leaving an impact on the founding document of the country. Using threats of rebellion, she asked him to Remember the ladies, and be more generous and avorable to them than your ancestors. Stanton, author of the Declaration of Sentiments, wanted to influence the opinions and gain support among the public as well as the leading government officials. Not solely expecting to win the tight tor equality, she had hoped she would make enough of an Impact that people would hear her voice and fight for a change in political structure. She fought for a change in the legal status of women. Using powerful statements like Women are civilly dead, as theyre denied voting privileges, and that marriage deprives women of their ndependence, she got a lot of attention and support from all sorts of places. ntortunately, despite their pleads being heard by the nation, it wasnt enough. Theres a big difference between being heard and making a difference, which they regrettably found out. They tried their best, and clearly left their mark on history but It took another 72 years before women were given their basic rights and freedoms. The saddest part is theres still prejudice everywhere you go , all we can do is keep fighting for a positive change and hope it comes soon!

The Natural Insulation Materials Construction Essay

The Natural Insulation Materials Construction Essay This is usually the type of building that are considered alternative today, have their heredity in structures that humans have been constructing for centuries. The reason why these building techniques are gaining popularity in modern times is twofold. First, the old building techniques are far more eco-friendly than the majority structures we used to seeing; second, these structures are simple enough in nature that they can built cheaply and can be built without the aid of a lot of the heavy and expensive equipment which is normally related with most new construction. Currently words such as green, sustainable and alternative get used often in the construction industry, which make its pretty confusing and difficult to tell if any one particular method or material fall under one or many of these heading. The report will help identify, green alternative building method and materials which are less damaging to the environment than a similar practice used in conventional lumber-framed construction. The need to find alternative practices will encompass any building technique that can be done repeatedly without changing the environment in any noticeable way. The Importance of Finding alternative Materials As the world population continues to grow at an alarming rate, people are realizing that planet cannot sustain such continuous and exponential growth. With land being increasable limited and we are continually diminishing our natural resource such are timber, with majority of it being used to build homes. It is evident that we cannot continue to use our natural material at this rate to build our homes. With the awareness of these natural materials become increasing limited, has made the construction industry rethink their way and start to think more about sustainable construction. Using alternative material for 8building homes is much more environmental sustainable than conventional homes building. Depending on the type and amount of sustainable materials used, these types of alternative material can reduce the carbon footprint which is produce in building homes. According to the Worldwatch Institute, an independent organization that analyzes critical global issues, one-fourth of the worlds wood and one-sixth of its fresh water are used  in building construction. This situation will only become worse as the worlds population and more people continue to migrate toward cities. The greater demands also will add pressure on increasingly scarce essential resources, especially water. The Environment The environment has now become issues and with it being heightened news, the Governments and individuals have seem to take notice and now taking to make a change because we cannot continuing abusing the environment, this is not an option anymore. The chart below shows the proportion of CO2 emissions in the UK from buildings in use, the construction process (mainly due to the CO2 from the manufacture of building materials) and from all other sectors including industry, transport, agriculture etc. Buildings in use contribute about half of our CO2 emissions (and consume about half of our energy use). Figure 1 CO2 emissions The next chart shows where these emissions come from and with over half of our energy use and CO2 emissions from building use come from heating our buildings. Figure two Energy Waste. Government Action The UK government have stated that England must take action now, in order to make vast improvement to energy efficiency in both new and existing buildings. The government have set many ambitious goals, an example of one: they anticipate dramatic energy reductions to achieve its goal that all new homes in England will be carbon-neutral by 2016. World Business Council for Sustainable Development (2007) There are three main approaches to energy neutrality: Cut buildings energy demand by, for example, using equipment that is more energy efficient Produce energy locally from renewable and otherwise wasted energy resources Share energy create buildings that can generate surplus energy and feed it into an intelligent grid infrastructure. Efficiency gains in buildings are likely to provide the greatest energy reductions and in many cases will be the most economic option. A study by McKinsey estimated that demand reduction measures with no net cost could almost halve expected growth in global electricity demand. The Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report estimates that by 2020 CO2 emissions from building energy used can be reduced by 29% at no net cost World Business Council for Sustainable Development (2007) and a cost curve for greenhouse gas reduction, McKinsey Quarterly 2007 Number 1. Fox and Murrell (1989) state the fundamental ecology principle of renewable material, such as wood is sustainable source and are renewable however, for materials like metal, plastic, gravel and sand, stone-based materials such as cement, concrete and plaster, have been used cannot be used again, their consumption if the earth itself. (Berge, 1992) The extraction of certain raw material can be very destructive effects especially to the water table and wildlife habitats. Over usage of these materials can affect the availabilities of in the near future, cause environmental degradation, and contribute to global warming. Impact of the Construction The industry has a major impact on the environment, it affect are not only on the resources it consumes but also the waste it produces. The construction industry is accountable for producing a whole variety of different wastes, the amount and type of which depends on factors such as the stage of construction, type of construction work and practices on site. In Great Britain, over 90% of non-energy minerals is extracted and are used to supply the construction industry with materials. Furthermore, every year more than 70 million tonnes of construction and demolition waste has been produced in England and Wales The key is alternative basic materials because they have historically driven innovation in every industry, and could spur significant advances in todays housing. In order to gain acceptance, however, basic alternative materials must offer more benefits than the traditional materials or methods they replace. They must reduce costs, increase design flexibility, enhance sustainability, perform multiple functions, have superior performance characteristics, or meet a market niche. Another potential driver for adopting alternative basic materials is a shortage of existing natural materials or concerns about their long-term sustainability. Martà ­n(2005) states that in recent years, there has been a shortages of core natural resources; including lumber, steel, and gypsum, and this has driven construction costs higher. This volatility of supply and price motivates the industry to look for more sustainable solutions. Sustainability and resource shortages, in fact, will help to drive innovati ons in the future. The objective of alternative basic materials is to develop new materials that spur innovation by serving multiple functions, increasing cost-effectiveness and efficiency, and using more sustainable materials. In many cases, these technologies form building systems that enable other Concept Home principles such as integrated functions, floor plan flexibility, and improved production processes. Alternative basic materials consist of core technologies that manufacturers can use to create products or systems and composite systems that builders can purchase and use to build homes. Martà ­n(2005) Before considering the use of alternative materials, and before implementing into homes, practical issues must be considered, (Berge, 1992) say to be realistic to imagine a technology that functions in line holistic ideas, none-mainstream approach but also providing humanity with an acceptable material standard of living, basically Berge is trying to say there just be a balance between the Eco approach and what consumer want. Government Schemes and Regulation After The Stern Review (2006) which advised that the implications of climate change couldnt be avoided any longer and urgent action was required, the government took notice and started implementing changes to building regulations. In 2007, the Government introduced the  Code for Sustainable Homes  to help improve the energy efficiency and sustainability of houses, by setting target for all new houses to achieve a carbon rate of zero by 2016. This is a level 6 in the Code for Sustainable. Currently, the standards of the code are not mandatory for private house builders but there are intentions to incorporate them into the  Building Regulations over the next couple years, starting with changes to Part L in 2010. CAN I ADD MORE Constructing environmental friendly house To construct an environmental friendly houses are to focus on reducing the environmental impact of both its  construction  and its ongoing  operation. This is achievable at the design phase by selecting the correct material and the process. Environmental friendly houses and sustainable construction offer an exciting future for building houses. With the prospect of living in an environmentally efficient house that can generate its own power. Also reducing waste and running costs, safe in the knowledge that your house is not effecting but instead helping the environment. This is a positive step for a sustainable future. It is well documented the impacts that human activity has had on our planet and with the Office for Climate Change 2010, attributing 27% of the UKs total carbon emissions to household heating and electricity, house construction is an area where we can make a huge difference. Ecological impact During the development and construction stages of house being built, a ecological assessment should be carried out that reduces its impact. Also the see if it is feasible to create new habitats in the form of green or living roofs. Materials Houses are constructed using a vast range of products and materials from a range of sources. For each one the industry must need to consider: The sustainability of the raw materials used. The lifespan of the material. Its performance characteristics as part of the building fabric. The energy use and waste generated from: The acquisition of raw materials. Processing. Transportation. Manufacture. The possibility for re-use or recyclability at the end of life. the-self-build-guide.co.uk(2009) Luckily, a lot of the legwork has been done for you on this one, with resources such as the BREs Green Guide, which provides environmental ratings for building materials and components. Material specific organisations like the Forest Stewardship Council (FSC) only certify timber taken from responsibly managed sources. You can find suppliers who use environmental management systems (EMS) to maximise the environmental efficiency of their businesses. EMS accreditation can be awarded through British Standards (BS) and the International Organisation for Standardisation (ISO). Alternative building systems improve on standard brick construction through their use of high performance materials and accurate construction techniques. Although many alternative systems involve the construction of buildings in-situ, in the same way that brick buildings are built, there are also many that are turning to off-site construction techniques to improve accuracy. Another benefit of off-site construction Alternative Natural Construction: Building Systems Alternative building systems improve on standard brick construction through their use of high performance materials and accurate construction techniques. Although many alternative systems involve the construction of buildings in-situ, in the same way that brick buildings are built, there are also many that are turning to off-site construction techniques to improve accuracy. Another benefit of off-site construction is that it can drastically reduce waste by up to 90% over traditional building methods. Mud brick Mud brick is a building material, which consists of clay-loam soil puddle with water, sometimes containing straw. The ideal soil requires clay content and the straw can be added to reduce drying and cracking. However, almost any soil can be adapted to make mud bricks; making it one of the most flexible and convenient building methods. It is most popular due to its simplicity, which is easily grasped by the layperson with limited experience, time or resources. If the design and construction are good, the building will last indefinitely. http://static.panoramio.com/photos/original/11435929.jpg Mud brick has several advantages over conventional fired clay or concrete masonry. The advantages include: Low in embodied energy Utilisation of natural resources and minimal use of manufactured products Good sound absorption characteristics High thermal mass A claimed ability to breath Suited to a wide range of soils Easily manufactured and worked Flexibility in design/colour/surface finishes Insulation properties similar to those of concrete or brickwork The disadvantages Mud brick building is very labour intensive Texts and magazines suggest it is possible to make 100 bricks per day per person, although that level of productivity comes with experience and fitness! Thousands of bricks are required for most dwellings. Only two or three courses of bricks can be laid at one time, because the courses need to dry out before more are added on top, to prevent the wall slumping or warping. The technique requires a lot of water, which can be a problem in dry areas. Although it is possible to make bricks in wet weather, a large undercover area is needed. Mud brick building is very labour intensive and quite tiring (the most exhausting part is mixing the soil and water). (BBC h2g2, 2003) Timber Wood is a very low carbon and sustainable material, it is important that the wood is ethically sourced and treated. There are types of wooden construction systems, they are: timber framing which is constructed completely on-site Structural Insulated Panels (SIP)- they are manufactured off-site and assemble on-site. Timber framing is a cost effective method of construction which is available , they can be used for buildings up to around seven stories high and can be highly insulated: level 4 or 5 of the Code for Sustainable Homes should be achievable. The drawbacks of timber farming are that construction time to build the walls to the specification at the suppliers. With the possibilities of dry rot or wood worm if the timber is not treated properly in the first place. Which mean that only certified companies can be used. SIPs, this method usages large sheets of plywood or chipboard (more or less) to sandwich to provide a stern insulting core, with these structurally sound panels then joined together to construct the building. SIPs are more expensive, are slightly less flexible in the buildings they produce, but are generally extremely well insulated and airtight: level 6 of the Code for Sustainable Homes is achievable.   The drawback of wood-clad panels is that they do not provide any thermal mass as part of their composition. Frechette (2009) http://www.greenhomebuilding.com/sip.htm, stats that when SIP it will burn, it has been demonstrated that they remain structurally sound for a lengthy period during a fire and do not emit fumes any more hazardous than those of wood products. Another possible concern is with insects or rodents nesting in the insulation since this can be an ideal habitat for them. One last concern is that a well-constructed SIP structure is practically hermetically sealed, which means that the  walls are not breathable; for this reason they require some sort of mechanical ventilation system for healthful habitation. Straw bale Construction http://hurricanecandice.files.wordpress.com/2009/04/straw-bale-home-1.jpg Brian Waite from straw bale house design states that the UK alone produces 4 million tons of surplus straw every year enough for 250,000 homes.  Straw must have the lowest embodied energy of any building material and is probably the cheapest and most sustainable. Straw-bales have an insulation U value much better than required by the building regulations as  well as excellent sound deadening properties which, together, give a living space an ambience that has to be experienced to be appreciated. Contrary to common perception straw-bales in a building, is not a fire risk, is not a vermin risk and are not short-term, but would compost back into the earth if and when required to do so. Straw in bales is so tightly bound that it doesnt contain enough air to support combustion, just add a (carbon neutral) breathing lime render/plaster and any fire regulation requirement is easily met. There is no nutritional value in straw and so it does not attract vermin, it is only voids that vermin like, so proper attention to detail is the only precaution needed. Lime rendered straw-bales breath so evening out fluctuations of humidity thereby creating a healthier environment. Straw bale construction is the use of compressed blocks (bales) of straw, either as fill for a wall cavity (non-load bearing) or as a structural component of a wall (load bearing.) In each case, the interior and exterior sides of the bale wall are covered (by stucco, plaster, clay, or another treatment.) The drawback of straw is that it requires special measures must be taken to provide nailing surfaces, since straw bales do not hold nails as well as wood and anchored to the foundations. The external weatherproof cladding will need to be good, as bales will rot badly if they get damp If straw bales are not available within a few hundred miles of your construction site, the cost of shipping them, along with the potential pollution from the transportation, must be taken into account. Views of the industry Straw bales may be plastered inside and out to provide thermal mass and, like standard construction, the walls must be protected from moisture Straw bale can be more resistant to termites and vermin than stick construction, but (as with any type of construction), elimination of cracks and holes is key Rammed Earth http://cdn.webecoist.com/wp-content/uploads/2009/01/rammed-earth-home.jpg Rammed earth walls (aka pies) are constructed by the compacting (ramming) of moistened subsoil into place between temporary formwork panels. When dried, the result is a dense, hard monolithic wall. Rammed earth is an ancient form of construction, usually associated with arid areas. There remain plentiful examples of the form around the world evidence that rammed earth is a successful and durable way of building. A few historical rammed earth buildings are to be found in the UK. Rammed earth construction is once again gaining in popularity for home builders looking for eco-friendly options.   With rammed earth, youre using the dirt under your feet (or from a local quarry) to build a house.   This is certainly a green practice since it usually makes use of local materials (local dirt!) and you dont need lumber, quarried stone, brick, etc. to be transported from long distances. Rammed earth construction has its pros and cons of course.   Lets take a look at the positives and negatives. A properly sited and designed rammed earth home is ideal for passive solar strategies, so it can be great for an off-the-grid house.   The thick, dense walls absorb the warmth from the sun all day and slowly release the heat into the interior of the house at night.   This helps keep heating bills low in the winter, and these homes tend to stay cool in the summer as well.   Dirt is an easy-to-acquire material and while there are some requirements (not all dirt is going to have the right mix of sand and clay), you ought to be able to get it locally, so this tends to be an eco-friendly building material. Soil selection needs to be done carefully, and if you are able to use dirt from the building site, youll end up with some big holes you need to figure out how to work into the landscape. Though it might seem that a house made out of dirt would be cheap, rammed earth construction actually tends to cost 5 to 15% more than conventional construction (due to the labour-intensive process of creating the rammed earth forms). Its difficult to impossible to create rounded or sculpturally shaped walls the way you can with other materials.   Homes made with rammed earth construction are going to be boxy in nature.   Constructing a rammed earth house in the UK would probably require extra insulation, (its typical to add foam insulation to exterior walls and then cover it up with stucco) as rammed earth method is not suitable for colder climates Cob http://www.ranchomastatal.com/images/PicsTim100405009.jpg Another mud-hut style of building, but there are occupied cob houses around the UK that are anything up to 500 years old. Not bad for a mud hut. Cob houses are built from a mixture of earth, clay, sand and straw. The ingredients are mixed together with a little water until they form a paste-like substance. The paste is then slapped onto a stone foundation to form walls that are often around two foot thick, then more and more slapped on to form a monolithic structural building. The slap is usually built up in layers about 18 inches high to avoid slumping. The great thing about cob houses is that they can be built into more or less any shape you care to dream up: curves, vaults, domes etc. This can result in some pretty funky buildings. The drawback is that it is very labour intensive and the walls can take up to a year to fully set. Cob is a Cheap, sustainable and eco-friendly method of construction using local materials. This is as load-bearing method of construction and needs no framework. A cob house uses 60 per cent less timber than a stud frame building. a cob house typically uses 20 per cent less energy. Cob house are naturally energy-efficient to cool and heat, provided the builder takes care to insulate the ceiling, and attend to solar positioning advantages. Straw bales embedded into north walls make this truer. Heat tends to pass out through north facing walls. Straw bales tend to keep this heat in, better that only earth, which is more porous for air passage. Contractor do not like working with Cob material as it is time consuming and labour-intensive. It makes the need for community obvious, while demonstrating our inherent unified power. Cob has to breathe to dry out naturally after becoming wet. It used to be that the exterior walls were either left bare or lime rendered (which is expensive these days). Excessive moisture can give you a probleme, as the material needs some moisture (3-5% is considered good much higher than that and you might have rising damp). Cob generally exceeds the minimum u-values for a house. Cost benefits compared below Building system Cost ( £/m2)* Benefits Drawbacks Traditional brick block 800-1500 Well known, flexible, popular, robust, durable. Materials not eco-friendly, high waste, often poor performance. Timber framing 200-1000 Sustainable, cheap, fairly rapid, well known, good performance. Poor image, needs good planning. SIP 300-1300 Sustainable, excellent performance, rapid, can be fairly cheap. Poorly understood, few contractors, inflexible, needs good planning. Straw bale 80-1000 Very sustainable, good performance, can be very cheap. Misunderstood and could have low sale value, limited lifespan, needs very good planning. Rammed earth 500-1500*** Very sustainable, durable, good performance. Misunderstood and could have low sale value, needs insulating, easily water damaged, long build time. Cob 500-1500*** Very sustainable, durable, good performance, very flexible. Misunderstood, needs insulating, easily water damaged, long build time. Traditional Material Traditional Building Method and Materials used The majority of new homes in England and Wales are built using  traditional masonry construction. With most people in the construction industry are familiar with this method. This method has many advantages, such as a deep historical and psychological attachment to masonry construction, which has contributes to its persistence use as the main house building method in the UK. A national survey by MORI found that 61% of respondents would prefer to buy a newly built property of traditional block construction. Most building systems in England and Wales use a timber frame for the skeleton of the house , this is the core of most traditional method of construction, however manufacturing developments have moved many of these methods into the categorization of modern methods of construction discussed below. This is currently second most popular technique for new home construction in the UK and, according to the UK Timber Frame Association, is the fastest growing method of construction in the UK. Traditionally used in North America and Scandinavia, as those areas are rich in timber resources, it comes with some good environmental credentials. http://www.ajbuilding.co.uk/userimages/parsonagefarm3.jpg Before considering what type of alternative method or material to use, we need to understand how current building methods and materials are being used. Below is a basic method Once the excavation and installation of the foundations is completed, the bricklayers erect cavity walls that consist of an inner and outer skin. The inner skin is the main structural element, which supports internal floors and the roof structure. It is constructed using concrete blocks laid on beds of sand and cement mortar. The outer skin of the house is the first line of defence against the elements and provides the aesthetic element to the structure. This is constructed usually with brick, stone or block work, this can produces a number of finishes. The two skins are connected by steel wall ties and separated by a cavity that is partially or fully filled with insulation. Internal floors, they are constructed using timber joists, composite timber beams, or one of many precast concrete systems which are available. The roof is usually traditional cut timber or prefabricated truss construction. Traditional Material Concrete With environment and health issues, concrete are non-toxic stains and sealants can be used. They are Manufacturer of Portland cement contributes between 5-8% of carbon dioxide emissions and greenhouse gases, which means concrete is non-green material. It under goes a chemical process of limestone, it creates the same amount of carbon dioxide in weight, but concrete can be grounded and recycled for use in roads and pavements (Holistic Interior Designs,2007) Concrete is often used in the construction and constructing home and is there a need to find an alternative material to replace concrete. Traditional concrete contains material such as stone or other material with similar properties. Concrete is made from gravel, sand, cement and water through a chemical process, the concrete is next, poured into slabs for worktops and panels creating a stone like appearance. The traditional use for concrete are use walls, floors, fireplace surrounds, worktops, panels, wall finishes, concrete furniture, sinks and basins. It offers an exceptionally high lifespan up to 3 times that of alternate building materials The use of concrete has many advantages, Farrell (2009) summaries the advantages and disadvantages of concrete: which are stated below Advantages: Fire, moisture, insect, rot and rust resistant, Can be poured into form Absorbs and retains heat very well, Concrete is water resistant and will not warp, rust or rot. Concrete homes are less affected by flooding or by leaks from tanks or water pipes. Concrete walls between adjoining properties offer high levels of security and peace of mind to property owners. Disadvantages: Which are Poor insulation properties Concrete May Not Offer Pleasant Aesthetic Embodied Energy of concrete manufacture creates very high levels of carbon emission. Origin Extraction of the raw materials in very large quantities has a negative impact on the local surrounding environments. Transportation of raw materials over long distances accounts for further release of carbon dioxide levels into the atmosphere Bricks There are now more environmentally friendly alternatives to traditional concrete on the market, made with hemp or carbon neutral concrete. Traditional concrete should be the last choice. Which will be explain later chapter. Are Bricks Green or Not? (Proefrock, 2007) asks what is brick made of, which is just clay and water and that is it, there are no complex chemicals, no exotic compounds, no imported components. Brick are effectively just a manufactured clay stone with a special shape. It breaks down into earth since it comes from earth. (Proefrock, 2007) Clay mining is comparatively benign, compared to ore mining for metals, which requires far more material to be extracted and processed to produce the finished product. Clay is not a resource that is in short supply, which makes it a more attractive material to use, as well. The main reason brick is not an even greener building material is that it takes a lot of energy to make a brick. However, the extra energy is relative. (Proefrock, 2007) Finding alternative Insulation sustainablebuild.co.uk (2010) state: insulation is a key component of sustainable building design. A well insulated home reduces energy bills by keeping warm in the winter and cools in the summer, and this in turn cuts down carbon emissions linked to global climate change. In regard to energy efficiency, investing in high levels of insulation materials when constructing houses is a cost-effective method of saving energy, rather than investing in expensive heating technologies. It is important to choose the correct type materials in the context of whole building design. Insulation materials are used in roofs, walls and floors. Alternative methods that have solid walls structures from cob and adobe cannot be insulated, Cob and Adobe already offers good thermal mass to compensate. Houses that construction with Timber frame require wall insulation in the form of batts (pre-cut sections that are designed to fit between stud walls), rolls or boards. Other types of construction methods such as brick or concrete insulate with spray foam, loose fill or rolls. Insulation materials work by resisting heat flow, measured by an R-value (the higher the R-value, the greater the insulation). This R-value varies according to material type, density and thickness, and is affected by thermal bridging, unwanted heat flo

Economic Policy Essay -- essays research papers

Economic Policy in Recent U.S. History In the highly materialistic world that we live in, success is generally measured in financial terms. The same is true in politics, where the success of a politician, especially the President, is measured by how well the economy did during his term in office. It is specifically measured by how well they bring down unemployment, grow the economy and fight inflation. Two basic modes of thought on the subject have pervaded public policy since World War II: supply-side and demand-side economics. Demand-side economics is generally known as Keynesianism, named after the English economist John Maynard Keynes. He believed that governments should force interest rates down by printing money and lending it from the central bank at a discount. This would put more money in consumers\\\' hands and encourage them to spend and consume more, thus creating an incentive for investment. This helped to solve some of the problems, but in the long run it is extremely inflationary, because with the increase of the money supply it becomes devalued. Keynesianism also calls for the government to spend more to try to help the economy grow. Keynesianism was a short-term solution to the problem and could only do so much for the economy before inflation caught up with it, and took it into recession. On the other hand we have supply side economics, which works on more of a long-term basis. It basically attempts to stimulate economic growth, which would reduce inflation, and raise the standard of living. Supply side proponents say that by reducing government regulations and taxation, this will stimulate more economic growth, and market equilibrium will be reached on it’s own, without government impositions. Keynesianism was popular until the late 1970’s during a period of ‘stagflation’, where both unemployment and inflation were rising together. Policymakers realized that they could not solve this problem with Keynesian ways of thought. When Reagan came into his Presidency he was faced with an economy that was in recession; the prime interest rate was 15Â ½ percent, the unemployment rate was over 7 percent and inflation was running close to 14 percent a year. Reagan and his advisors took a conservative approach to solving the problem and looked to supply-side, or ‘trickle down’ economics to accomplish their goal of bringing the country out of this... ...ngress in fact adopted the tax reductions, and a set of spending reductions was incorporated into the First Congressional Budget Resolution. The budget process for 1982 was never completed, however, and the 1981-82 recession intervened. The net result of these efforts has been that tax rates are lower now than in 1980, but not lower than rates in 1979. The reductions in aggregate federal expenditures relative to GNP, however, have not materialized. Indeed, during the first three years of the Reagan administration, federal spending as a percentage of GNP increased to historically high peacetime levels. Because the decline in the rate of growth of tax revenues has not been matched by a decline in the growth of expenditures, the government\\\'s budget deficit in real terms has also reached unprecedented peacetime levels. The 1983 deficit was almost 6 percent of GNP. Projected deficits for 1985 and 1986 exceed 4 percent of GNP. These levels are of the same order of magnitude as those reached during the Great Depression of the 1930s. Without a reversal of the tax reductions or significant real spending cuts, the projected deficits will not fall below 3 percent of GNP until 1989.

Human Cloning :: miscellaneous

Human Cloning Science fiction authors have for many years instilled in us the fantastic idea of great armies of cloned men and women, fighting mindless battles for the betterment of human kind. Perfect beings created under the microscope of fantasy to accelerate the evolutionary process, a brave new world, of disease free and identical people. But is there truly an application for human cloning in our 21st century society? Some scientists argue that one could use the cloning process to grow a twin sister for a dying child to allow for an organ donor, a perfect match. A noble idea, if one values a human life as highly as cattle headed for a slaughter house. And what of the dangers involved? A few years ago the world’s eyes turned to the scientific presses, hot with the new discovery that cloning was possible. Dolly the sheep was born, the first successful case of cloning the scientific world had seen. But what we didn’t see is that there were 276 failures before the successful case was achieved. Are we willing to gamble 276 human lives for the research of a non – applicable science? The thought of a perfect being is intriguing. The model child with the blue eyes you never had and the perfectly straight – without having spent three hours in a salon – blond hair that everyone thinks you have. It seems a popular notion that once one genetic modification has been achieved, others will follow. And even if the technology for a bouncing blue eyed catalogue selection is only a gleam in the scientific eye, the possibility of having a three year old Britney Spears is conceivable. The excitement of this sentiment unfortunately masks the reality of it, in that creating a homogeneous race poses a real threat to freedom, the very essence of humanity. At this stage in the development of the cloning process, each cloned Being is viewed as a subject. Dolly was a media spectacle, a lost lamb under the millions of gawking eyes. If a human is cloned, it is highly unlikely that he or she will not be swept up into a similar fate. And under the eyes of the media, not to mention the person who funded the â€Å"subject†, that child will be forced to grow up under a rock of obligatory expectations. Every action and emotion could indeed be shaped and cultivated to suit the perceptions of an idealised person.

Essay --

Service delivery is one of the most challenging tasks that face many organizations today. This is even worse in cases where factors such modality of fulfillment of a given service, challenges inherent in it and productivity measurements are not properly understood. My company deals with a complaint resolution service. This is a service product that is delivered directly to clients who depend on it for the purpose of redress concerning misunderstanding or disagreements as far as the company’s products are concerned. Customer dissatisfaction is highly dangerous for the existence and prosperity of any given business as it may make the business to collapse so easily. It is upon this concept that the company operates with a view to ensuring that all customer related misunderstandings are dealt with swiftly and compassionately so that clients do not feel neglected or misunderstood. Complaint resolution, as hard as it is, is a very delicate interaction between the client and the company agents. This means that it should be handled carefully by taking into account the key requirements that it deserves. The requirements for complaint resolution are many and generic. They include patient and credence, feedback and time, customer inclusion and respect, record and documentation among others. First, and most obviously, patient of the highest level is needed. This is recommended in the cases where an agent is involved in a complicated case that may need more time to handle in one hand, and urgency on the other. In addition, any company agent is required to be patient with controversial clients who may not give room for explanations as to what could be the remedy of a given misunderstanding. Patient is also recommended as the best way of... ...ining and continual financial support. Even though it is difficult to measure the productivity of this service product, customer complaint resolution, parameters like increase and decline in customer-related claims is a perfect gauge of its performance. Concisely, it is suffice to say that customer complaint resolution is highly necessary for any business. This is because any customer dissatisfaction may of consequences to the survival and prosperity of the company. As a result, all customer-related complaints should be dealt with swiftly and compassionately by taking into account all the key requirements that underpin the exercise lest any deviation cost the company dearly. On the same note, this service should be carried procedurally by taking into account all the recommended steps involved in order to ensure quality customer service delivery in the company.

Dumex Web Site

The Danone Dumex Web site located at is the online presence of Dumex (Malaysia) Sdn. Bhd.. , a Malaysian health food company operating since 1958. The Web site serves as a company brochure and features company news, the company's products, tips on various health-related topics like nutrition, advice, and child development, as well as health news and recipes. Strengths The site is presented in a clutter free way. It's easy to see what the whole site has to offer, so the user does not get lost.The content also allows for returning visitors, or visitors who go back to the site for updates and new information. The New This Month, and Featured This Month section, not only encourages returning visitors, it also highlights the things that they haven't seen since their last visit, so that they won't have to go through material they've seen before. Also, the site can be navigated easily. The menu bar at the left side of the page points the user to various areas of the Web site, from news, to recipes, to the company's products, to medical advice, etc.It's all there, near each other. The site encourages more user participation and interactivity with its contests. It provides the user with a meaningful experience by featuring user photographs, writings, experiences and advise. On the company side, it allows them to build a reputation and image of being an expert on health issues. By featuring health experts' advice and opinion, along with health-related news, they are positioning themselves in a way that they can be trusted with one's health. The site also offers a display case for all their products.Content-wise, the site features news and information that is valued highly by its target market. Since the product is for babies and pregnant mothers, their content is geared towards issues related to pregnancy and children. This makes it a one-stop resource for their customers, further consolidating their brand and company image. Weakness As a healthcare-related Web site, th e site should include language warning users that the site might have insufficient advice and implores users to seek further medical attention or to see their doctor.The disclaimer would put the user's best interest in mind specially if he's really sick, or have a condition that might need individual care. An example is the site's pregnancy teaser on the home page which says â€Å"Pregnant? Don't forget to exercise†. Colette Bouchez at WebMD writes that although exercise during pregnancy is not only recommended, it also have certain benefits for both mother and baby, the mother should be aware of some warning signs like vaginal discharges and bleeding, and stop exercising. This caution is not on the Dumex home page.As such, it is highly probable that while material on the site might have been checked and is reliable, it might adversely affect some people who follows medical, nutritional advise without consulting their doctors. Also, while the site has its products online, the re is no way to order their products on the site. * * * As a consumer, I need to be sure of what I'm purchasing. It has to give me value for my money. It has to deliver its promises. For me, I want to be an informed consumer, price is only secondary.Web sites like Dumex provides me with the necessary information that I would not normally see in other forms of advertisements. A good Web site should let me know about the product, for me to know its benefits, potential threats and how it fares against the competition. And I don't have to leave home to do it, it's all, literally, at the tips of my fingers. Aside from information, good product Web sites offer their customers other related information. That would keep me informed of the things I need to be aware of.In the case of Dumex, it also tells me how their products would fit my needs. Lastly, Web sites offer the convenience of purchasing at home, which would give me more time to do other more important things, and other perks like avoiding the long lines at the supermarket or horrendous traffic. Effects of IT Employment. Information technology makes it easier to do the tasks that would have been more difficult and time consuming without it, a prime example of which is the use of the word processor instead of the manual typewriter.According to Michael Handel at the SRI Institute, however, automation using I. T. may lead to unemployment. If you have computers that run certain processes or monitor certain activities running, then you don't need to hire somebody to do that for you (Handel, 2003). Privacy and Individuality. Information technology is also changing the way we live. With the advent of social networking sites like Friendster, Myspace and countless of others, it has been easier to find new friends and maintain relationships and contact (Dwyer, 2007) .IT, while making it easier to buy products and services and have them delivered to your doorstep without leaving your home, like a book from Amazon. Com, also raised privacy issues like hackers gaining access to your credit card information, or personal data. Even one's behavior patterns on the World Wide Web, like the sites being accessed, and the amount of time being spent on a particular site can be monitored. Co-workers, hackers, and family members may have their own personal motivation now have access to illicit computer programs to get such information from one's computer.(Rittenhouse, 2004). Computer Crimes. Computer crimes are on the rise and it may involved the unauthorized use of a computer (stealing passwords, or accessing another's computer via a backdoor program); spreading malicious computer programs like trojan, virii and worms; or an online version of stalking and harassment. The underlying premise is that computer crimes are done by people who lack respect for property and privacy of other people (Standler, 2002). Ironically, computer crimes are also being battled via I. T.Various Web sites have come up with online p rivacy tools, virus detection and deletion programs, tips on how to detect illicit computer activities, among others. Societal Solutions. One of the most widespread and easily-seen effect of I. T. on society is the way people get their news nowadays. Before, people have to rely on rumors and the next morning's papers, and eventually, the evening broadcast and breaking news on T. V. The thing is, people have to wait before they get the news. Now, all they have to do is to log on to various news Web sites to get the latest happenings, on a wider variety of topics.They can get news from Somalia, or news on the latest Britney happening. The problem with this is that there tends to be a lot of wrong news coming from unverified sources. An example of which comes from the the Virginia Polytech Institute and State University shooting a year ago. At that time, many students, checked out sites on the Internet, like Fark. Com, Facebook. Com and other social networking sites to get information on the shooting. But then, it happened that one unnamed student became suspected as the gunman when his own Facebook. Com profile showed pictures of him and his gun collection.The student became the subject of death threats, and hate campaign, until news came out that the real gunman was shot dead and the unnamed student's identity was verified (IDG News Service, 2007). Health Issues. Speaking of misinformation, the World Wide Web is full of it. While the Web has made it easier to obtain information on various topics like what to do when you're pregnant, how to make bombs, how to cook the best lambchops, it would be wise to check the reliability of the information presented first. Make sure that the site, or the writer of the article is authoritative on the subject matter.Take special care when it comes to one's health. As in the case of Dumex's Web site, take all information presented there with a grain of salt and a word of caution. While healthcare advice is plentiful on the Web, it might be best to consult one's physician if you're sick. Leslie Teach at Emory University puts it succinctly when she says that previously health-related videos, books, brochures were tediously edited and reviewed before released to the public, and that's not happening with Web sites. Health improvement, disease prevention, and information about diseases are the primary health-related information that are being accessed.Teach gives a number of criterion for evaluating health-related Web sites, including: ? a clearly stated purpose of the site; ? no evident bias; ? the site is not a disguised advertisement; ? all aspects of the subject are adequately taken up; ? the site provides accurate information, with documented sources. * * * Information technology is here to stay. In fact, the widespread and pervasiveness of this technology has made so many profound effects on our daily lives that it has become a part of our culture, and our psyche. As with other advances, it has its drawb acks.But the simple truth is, the benefits outweighs the dangers. And the disadvantages can be easily fought, with a little awareness, knowledge and a critical mind, one can be safe. References Bouchez, Colette. (2007). Exercise During Pregnancy: Myth Vs. Fact. WebMD. Com. Retrieved on 18 April 2008. Danone Dumex Web page. (2008). Retrieved on 18 April 2008. Dwyer, Cathy. (2007). Digital Relationships in the MySpace Generation: Results From aQualitative Study. Proceedings of the 40th Hawaii International Conference on System Sciences – 2007. Retrieved on 16 April 2008. Handel, Michael J. (2003). Complex Picture of Information Technology and Employment Emerges. SRI International. Retrieved on 18 April 2008. Rittenhouse, David. (2004). Information Technology Abuse — Privacy Issues. Retrieved on18 April 2008. Standler, Ronald. (2002). Computer Crime. Retrieved on 18 April 2008. Teach, Leslie. Evaluating Health-related Web Sites. Emory University. Retrieved on 18 Apr il 2008. Virginia Tech shooting shows benefits, pitfalls of social networking sites. (2007). IDG News Service. Retrieved on 19 April 2008.