Financial Ratio Analysis of Sainsburys

Financial Ratio Analysis of Sainsburys A sustainable company needs effective planning and financial management. Ratio analysis is a useful tool to get the financial results and the companys development tendency. It can be divided into four parts. They are profitability, liquidity, efficiency and gearing. This report discusses the analysis of two companies, one is Sainsbury, and the other is Tesco. It is necessary to compare these companies from the data and information in 2011 and 2012, so that demonstrates the use of an appropriate range of ratios. Sainsbury is engaged in grocery and related retailing. It is separated three segments: Retailing (Supermarkets and Convenience); Financial services (Sainsburys Bank joint venture), and Property investments (The British Land Company PLC joint venture and Land Securities PLC joint venture). In 2012, this company has operated over 1000 stores comprising 572 supermarkets and 440 convenience stores (Sainsbury company information, 2013). In the current competitive food retail market Sainsbury has focused on its clear strength: providing shoppers with an easy alternative to the larger out-of-town supermarkets whilst maintaining a commitment to fresh quality foods (Sainsbury, 2012). Tesco has the biggest supermarket chain in the UK. It has over 280, 000 employees working with them (Tesco, 2012). It can maintain their market share and profit in the UK, they also use social network to maintain the relationship with the customer. It is the biggest and most profitable supermarket chain in Britain; it has 30 per cent of grocery market. Tesco has over 2200 stores in the whole United Kingdom (Tesco, 2012). It is a superb development of Tesco, it is from a smaller store to be a superstores. Sales of non-food is one of the key parts of their strategy, it contributes to the growth picture in the UK. Tesco is launching a low price strategy; they offer the lower price for the similar product compare to others competitors. By comparing Sainsbury and Tesco, it is easy to use financial ratio analysis to pinpoint the strengths and weaknesses. This report provides an analysis based on ratio calculation and then compares these companies data to help grasp the current performance of the companies and thus showing a financial snapshot of the companies position. Financial Analysis The following part will analysis the two companies performance in the criteria of profitability, efficiency, liquidity and gearing ratios. Ratios are important when companies need to compare the financial health of various businesses in order to understand the performance and position in the industry. Although some companies are relatively larger than the others such as comparing Tesco with Sainsburys, different scale of operations can be eliminated using the ratios for the same market (Atrill McLaney, 2008). Profitability The purpose of profitability ratio is to measure the degree of success towards business objectives in terms of profit (Atrill McLaney, 2008). It express the generated profit such as expenses, labour cost and sales revenue in relation to a companys business resource. Gross profit margin measures differences between cost of sales and sales revenue, in other words a measure of profitability in purchasing and selling before any other expenses are taken into account. The data shows that gross profit margin had a slight decrease from 5.50% (2011) to 5.43% (2012), although both gross profit and Revenue increased, it could mean that sales prices were lower or an increased on purchasing. Operating profit margin is the comparison of both outputs of businesses: operating profit and sales revenue. It is used to measure the profit from trading operations before interest payable expenses are calculated. The operating profit margin has also decreased from 4.03% (2011) to 3.92% (2012) indicating a change in 2 %. ROCE describes the relationship between operating profit and non-current liability. It has decreased from 10.06% (2011) to 9.50% (2012) by 6%. The results indicate that Sainsburys profitability has decreased by a small amount. Liquidity Liquidity ratios represent the ability of business to meet its short-term financial liabilities in one year time (Atrill McLaney, 2008). The purpose of using current ratio is to compare the assets of the company that will be turned into cash with current liabilities. Different businesses have different rate of ratios, supermarket such as Sainsburys and Tesco usually have relatively lower ratio than 1:1 since the companies are to sell FMCG and all sales are converted into cash immediately. The calculation shows that current ratio of Sainsburys increased by 12.07% from 0.58 (2011) to 0.65 (2012). This suggests that the company is more efficient at converting its assets into cash in comparisons with current liabilities. Acid ratio is similar to current ratio but is calculated excluding inventories therefore the changes from both ratio changes should reasonably be similar. Therefore the result also shows an increase of 12.9% from 0.31 (2011) to 0.35 (2012), it suggests that the business of Sainsburys became more liquid throughout 2011. Efficiency Efficiency ratio is use for assessing the extent to how well assets are being managed (Atrill McLaney, 2008). Inventories turnover period represents the average period of inventories are being held. Since maintaining inventories require higher cost, therefore it is advisable for businesses to have shorter inventories turnover period. The data suggests that Sainsburys inventory turnover period increased by about 1 day from 15 (2011) to 16 (2012), meaning it took longer for the company to sell its goods. The data may also suggest that an increased number of inventories take longer to sell. Moreover, competitor Tesco had inventory three times more than Sainsburys and it took them even longer to clear their goods. Gearing Gearing ratio is a measurement of contribution of long-term lenders to the companys long-term capital structure (Atrill McLaney, 2008). The higher gearing ratio the higher risk for businesses because a small increase in operation profit tends to increase greater amount of returns to shareholders, but small decline also result in greater decline. The gearing ratio of Sainsburys increased by 8.31% from 35.86 (2011) to 38.84 (2012). It indicates a higher risk than the previous year. Interest cover ratio measures the quantity of available operating profit to cover interest payable (Atrill McLaney, 2008). Calculation shows a decrease on interest cover of -1 time from 7.34 (2011) to 6.33 (2012). It indicates greater risk for lenders where interest payments might not be met. However, Tesco has a higher rate of interest cover; the reason may be due to their higher operating profit with less interest payable comparing with Sainsburys. Comparative Financial Analysis In the context of financial report, it is essential to compare ratios internally and externally. In terms of internal, the objective is to criticise whether Sainsburys performance has an improvement or deterioration and it is usually being measured over time such as one, five or ten years. Such comparison helps the company to detect trends for example the ways of how Sainsburys should control the flow of its stock or the amount of dividends which affect its stakeholders action. Comparing financial performance with other competitors within the same industry is also essential, because having comparable levels of performance is one of the major ways to survive in the market (Atrill McLaney, 2008). Analysing from both annual report of Sainsburys and Tesco, the profitability section indicates that Sainsburys had a decrease on both gross profit and operating profit margin while Tesco had an increase performance on profitability for gross profit margin by 4.05% ((8.48 8.15) / 8.15) and operating profit margin by 5.02% ((6.48 6.17) / 6.17). In other words it means Tesco is more capable at generating profit in 2011 / 2012, the reason is probably due to Tesco is a larger company than Sainsburys in terms of the number of stores at about 6 times more than Sainsburys and higher market share at 26.9% while Sainsburys had 14% during 2011 (Mintel, 2012). The previous annual report of 2010 / 2011 shows that the online checkout system helped increase Sainsburys sales by 20% (130,000 weekly orders) which was the strength of the company (Sainsburys, 2011a). However the sales decreased in 2012 which was also partially caused by online shopping. The financial damage was due to sales cannibalisation and charging delivery at low rate. The reason to that is because the trend towards online grocery shopping where more and more customers are shopping online (Guardian, 2013). Another weakness of Sainsburys causing it to lose shares to its competitor Tesco was because of lack in investment internationally, particularly in China (The Independent, 2012). Currently Tesco already has over 100 stores in China. Sainsburys did not fully understand the trends and operating environment comparing to its home competitors. In addition, Current Ratios are also needed to make comparisons between two companies because the current ratios provide us with the first slight of the financial strength of a company, but the current ratio analysis of different companies can be misleading in some case so that investors must be careful while evaluating a company on the bases of its current ratio (Atrill McLaney, 2008). The Liquidity section demonstrates that Sainsburys had a modest increase on current ratio by 12.07% ((0.65-0.58) / 0.58) while the current ratio of Tesco had remained intact. In spite of this, it can be seen from comparison that Tesco is the winner in the current ratio contest as it has more current ratios that is 0.67 in 2012 compared to Sainsbury where the result is 0.65. Consequently, Tesco has more money to afford the liabilities and deal with its bills better than Sainsbury. The reason of this is probably due to the number of operating profit for Tesco at about 4 times more than Sainsburys in 20 12, which was 3,985Â £m and 874Â £m respectively. In order to make an exact measure of financial leverage, demonstrate the degree to which a firms activities are funded by owners funds versus creditors funds, the gearing ratios are needed to be compared also (Atrill McLaney, 2008). According to the annual report of Sainsburys and Tesco, it can be shown that in this section, Sainsbury is doing better because its lower proportion of debts. The calculations demonstrate that the liability of Tesco shows more than approximately 73% of its debt is from borrowings while the loans of Sainsbury is lower than about 73% comparing with Sainsbury. Limitation Ratios provide an efficient and straight forward method to analyse the performance and position of businesses, however there are limitations companies should take into account. Firstly, all numbers are taken and are used from the financial statements; therefore the results of all ratios can only be based on the quality of the information. It indicates that intangible non-current assets such as the value of brand names and goodwill cannot be included into the balance sheet. Moreover, no businesses are identical therefore companies should be aware of differences in accounting policies, financial year ends between businesses and financing methods when carrying out ratio analysis especially during benchmarks. Secondly, inflation can affect the values of ratio analysis. Since balance sheet is made for the previous financial year, therefore the values of assets held could change in a period of time which results little relation to current values. Inflation can also affect the measurement of profit, it may show that the current prices does not reflect to previous expense, in that case profit may be overstated leading to inaccuracy. Thirdly, companies should only use ratios as an insight but not fully rely on it. The reason is due to the fact ratio cannot measure information such as differences in scale between businesses and capital employer, profit / sales used for measuring changes of company size over time. As ratio can only measure relative position and performance of a business. Conclusion Recommendations This report reveals the financial analysis techniques used to evaluate the financial performance of Sainsburys, and the evaluation of the companys position and performance. The result shows that Sainsburys overall performance in 2012 was similar to 2011 but with minor decrease which may affect shareholders / investors decision on whether or not to continue investing on the company. It is advisable for Sainsburys to increase dividends in order to keep its investors at a satisfy level. As the company is also the initiative to the Click Collect service, it should focus investment on improving its quality and differentiation from the competitors. In terms of pricing issue leading to decrease on profitability, there are two choices for Sainsburys. First is to keep the pricing at the same level because its market share has been increasing, or secondly to increase price to gain profit where the decision is depending on Sainsburys objectives.

Three Women Writers: A Study in Virtue and Christianity of the 18th and

Three Women Writers: A Study in Virtue and Christianity of the 18th and 19th centuries The popularity of Toni Morrison's Beloved has recently awakened a mainstream interest in African-American literature. Writers, such as Maya Angelou and Langston Hughes, have also facilitated the infiltration of African American voices into popular culture. This website is devoted to three women who, like Morrison and Angelou, have aided in the formation and development of the African American literary tradition, but often remain unremembered in today's society. Phillis Wheatley, Harriet Jacobs, and Harriet Wilson have all made valuable contributions in the forms of poetry, narrative, and fiction to the early stages of a growing literary tradition. Although these women portrayed different viewpoints, utilized different writing styles, and wrote within different contexts many comparisons can be made amongst their work. Specifically this site focuses on the common themes of virtue and Christianity represented in the authors' work and in their lives. -------------------------------------------------------------------------------- Phillis Wheatley Wheatley was born in Africa in the early 1750's and was brought to Boston in 1761 as a slave. The Wheatley family, who was a prominent family in the Boston community, purchased her. The Wheatley's encouraged and taught her, and within sixteen months Phillis was reading and writing fluent English. At the age of fourteen she was writing poetry and hailed as a prodigy of her race. In 1773, Wheatley's first and only published volume, entitled Poems on Various Subjects, Religious and Moral was released. After the death of Mr. and Mrs. Wheatley, Phillis was left to support herself as a poet and sea... ...n she is free. But, in Our Nig, Frado is treated like a slave and feels confined by the Bellmonts, yet she is a free person. In this way, Wilson seems to complicate and combine these binaries. -------------------------------------------------------------------------------- Bibliography Bennett, Jr. Lerone. Before the Mayflower: A history of Black America. New York: Penguin, 1988. Jacobs, Harriet. Incidents in the Life of a Slave Girl. New York: Penguin, 1987. Shields, John, ed. The Collected works of Phillis Wheatley. New York: Oxford, 1988. Wilson, Harriet E. Our Nig; or, Sketches from the Life of a Free Black. New York: Vintage, 1983. Voices from the Gaps: Harriet E. Adams Wilson http://www.~engl.cla.umn.edu/Lkd/vfg/Authors/HarrietE.AdamsWilson Voices from the Gaps: Phillis Wheatley http://www.~engl.cla.umn.edu/Lkd/vgf/Authors/PhillisWheatley

Today’s Society That Effect Teenagers

There are many things in today's society that effect teenagers. Throughout high schools students mindset are not very stable and they are willingly to follow the crowd. These messages can come from not only other students but from music videos,magazine advertisement television commercials, talk shows and sports. When you were a little kid, your parents usually chose your friends, putting you in playgroups or arranging playdates with certain children they knew and liked. Now that you're older, you decide who your friends are and what groups you spend time with. It's natural for people to identify with and compare themselves to their peers as they consider how they wish to be (or think they should be), or what they want to achieve. People are influenced by peers because they want to fit in, be like peers they admire, do what others are doing, or have what others have. Teenagers face many acts that pressure them to act or try to look a certain way. Peers are a powerful force in the life of a teenager. Negative peer pressure can persuade a teenager or child to shoplift, drink alcohol, take drugs, smoke cigarettes, cheat at school, vandalize property, bully other students, skip school and participate in racist and discriminatory behavior. When it seems like everyone else is doing something-dressing a certain way or acting a certain way-teens feel a tremendous pressure to go along with the crowd and be like everyone else. Most teenagers don't want to stand out as being different. Everyone wants to fit in. No one has to say anything to a student but just observing their peers will create peer pressure to be like them. Teen magazines have a high impact on the mindset of the teens and they seem to be very influenced by the information that is provided. For example,a magazine that is personally one of my favorites seventeen a world wide magazine has a section thats dedicated for tips on teen dating. They no longer give the right message of how you should wait for the right person to come along to take the plunge but instead they teach you how to attract the â€Å"hottest† guy and how to keep him. All this talk puts a lot of pressure on the teen girls to have a guy who's in which leads to other problems such as disease,pregnancy, and even rape. Although their are many things that pressure teenagers in negative ways,there are also positive things that are being held and can be done in the world today. So many things such as girls/boys convention, clubs, and Internet logs can be formed to help shape teenagers mindset in positive ways so they can grow into young adults that are needed in the future. the person they need to be. All teenagers face some kind of peer pressure whether it's something extreme as doing drugs to fit in or as little as picking on the class dork. Either way the outcome of peer pressure is never good and a small helping hand can change not only a single person's entire life but a society. † we are the future,so why not start preparing for tomorrow. â€Å"

Using the Spanish Verb Dar

Using the Spanish Verb 'Dar' Although the Spanish verb dar is most often translated as to give, it also is one of those verbs whose meanings or translations can vary widely with the context. Those meanings, however, are usually related to the concept of giving in a broad sense of the word. A common example would be a sentence such as El sol da luz. A literal translation of The sun gives light wouldnt be wrong- but most English speakers would be more likely to say something such as The sun sheds light or, more simply, The sun shines or The sun is shining. Everyday Figurative Uses of Dar Most often, when something other then give works as a translation of dar, the meaning can be figured out by thinking of giving in a general or figurative sense. Here are some everyday examples that are mostly easy to figure out if you know the meaning of the noun serving as an object of dar: El reloj dio las tres. (The clock struck three. Literally, the clock gives three.)Dieron golpes a mi hijo. (They hit my son. Literally, they gave blows to my son.)Te damos gracias. (We thank you. Literally, we give thanks to you.)Darse a conocer. (To make oneself known.)Me dio un abrazo. (She hugged me.)Dar la mano. (To shake hands.)Dar un paseo. (To take a walk.)Darse vuelta. (To turn.)Darse prisa. (To hurry.)Darse a la vela. (To set sail.)Darse a entender. (To suggest.)Darse de comer. (To feed.)Darse fin. (To finish.) Phrases Using Dar Dar is also used in a variety of phrases whose meaning isnt always so predictable. Here are some of the most common of them, along with sample sentences. When using the phrases in this list, alguien is replaced by reference to a person, while algo is replaced by reference to a thing. dar alcance: to catch up with. (Los agentes dieron alcance al ladrà ³n. The agents caught up with the thief.)dar algo a alguien: to give something to someone. (Dieron un carro a su hijo. They gave a car to their son.)dar con algo (o a alguien): to find something (or someone) (Di con mi lpiz en la escuela. I found my pencil in the school.)a alguien dar por (o en) (infinitivo): to decide to (verb) (Me di por (o en) salir. I decided to leave.)dar a lugar: to look over a place (La ventana da a la ciudad. The window overlooks the city.)dar luz, dar a luz: to give birth (Marà ­a dio luz a Jesà ºs. Mary gave birth to Jesus.)dar de cabeza: to fall on ones head. (Dio de cabeza en el gimnasio. He fell on his head in the gymnasium.)dar de narices: to fall flat on ones face. (La chica dio de narices. The girl fell flat on her face.)dar lo mismo: to make no difference. (Comià ³ mucho, pero lo mismo dio. She ate a lot, but it didnt make a difference.)darse a algo: to give or devote oneself (to something). (Se da a su trabajo. He gives himself to his work.) dar a alguien (o algo) por (adjectivo) o (participio): to assume or consider someone to be (adjective or participle). (La dieron por feliz. Doy la lucha por concluido. She was considered to be happy. I consider the fight to be over.)darse cuenta de: to realize. (Me di cuenta que ella estaba aquà ­. I realized she was here.) Conjugation of Dar Keep in mind that dar is conjugated irregularly, especially in the preterite form: yo di, tà º diste, usted/à ©l/ella dio, nosotros/nosotras dimos, vosotros/vosotras disteis, ustedes/ellos/ellas dieron. In the present indicative tense, the one most often used, the first-person singular form is doy (I give). Other irregular forms exist in the subjunctive and imperative moods. In many of them, the stem changes from d- to dier-. Key Takeaways Dar is a common verb whose literal meaning is to give, but it can be used in a wide variety of ways where its translation depends on context.Dar is also commonly used in phrases where its meaning isnt ready apparent.Dar is conjugated irregularly.

Ways to Control Water Pollution Essays

Ways to Control Water Pollution Essays Ways to Control Water Pollution Paper Ways to Control Water Pollution Paper Essay Topic: Water pollution With major water reservoirs drying up in the Southeast, the Ignited States government is projecting that within the next five years over 38 of its states will face serious water shortages. And of the water that will remain, todays serious issues Will influence our future unless we find successful ways to control water pollution it will eventually disrupt life on our planet as we know if we do not. The sources of water pollution are varied? ranging widely from waste, excess, population growth, urban growth, increasing temperatures, and increasing flooding and drought. And each source requires an individual solution to develop a correct answer. Requiring responsibility and involvement in the problems of water pollution, every human who lives on this planet needs to become knowledgeable about their local water resources. Ways to control water pollution should be something everyone practices in order to combat harmful wastes which eventually end up in sewage treatment plants or landfills. Adequate water planning needs to be boldly approached regarding ways to control water valetudinarianisms, recycling, desalination, and stricter controls order to keep adequate water applies for our future generations. Over $300 billion dollars are estimated by our government for upgrading pipes in the United States to handle a newer and more reliable water supply system for the country. The days of cheap water are over. One way to control water pollution is to carefully observe which nutrients are needed on the yard before fertilizers are applied, wisely choosing alternatives methods. If fertilizers are applied, make sure they do not run off into nearby surface waters, also keeping any type of pet waste, leaves, litter, and plant residue out of storm drains or gutters. Planting trees and brushes to hold back flooding areas and slopes help maintain water in much needed areas, used throughout the world for not only ways to control water pollution but also to conserve natural wildlife habitats. The United States is not the only country struggling in ways to control water pollution. The country of Australia is in a 30-year dry spell, with the urban centers of sub-Sahara Africans population growth straining their natural reserve levels. And believe it or not, Asia has over 60% of the entire worlds population with only 30% of the worlds fresh water. What needs to happen to avoid environmental collapse on a world level is for developing and under- developed countries to work together for workable ways to control water pollution, utilizing methods to prevent any more environmental problems as industries grow. Strategies involving conservation methods are slowly becoming acceptable, with the worlds population realizing they do not have to be comfortless just because energy is being conserved. Advancing technology is helping these two ends Of the spectrum meet in a comfortable manner, with important ways to control water pollution involving forms of operation among global countries and their people. Ways to Conserve ; Preserve Water Quality By Barbara Keller-I-Scott, eh Contributor Everyone whos ever lived on Earth shares the same water molecules. The Earth on World Water Monitoring Day, September 18, 2010, contains the same number of molecules of water that it did on the first day it could be called Earth. Water cycles through plant and animal bodies, flows into streams, rivers, lakes and oceans, evaporates and falls again as rain and snow. Humans save water in reservoirs, and the Earth saves it in hidden aquifers, fed by the slow seepage of groundwater through soil and rock that cleanses it, to be drawn up again through wells and put back through sewers and septic systems. Not all water molecules are traveling in good company, but there are options on family, community, society and world scales for keeping clean water clean and cleaning up whats been polluted. Home * Most of the water that comes into your home through a municipal supply goes back Out through Sewers for treatment. You can make a big difference, though, by simply taking your car to a commercial car wash. These genuineness may be required to and probably do reuse water, clean it of chemicals before discarding it, and discard it into public water-treatment systems for further cleaning. If you must wash your car at home, do it on the lawn where the water can soak back into the ground. Do not let car-wash water run down the driveway into the storm drains, which are not treated and carry your soap and whatever was on your car straight into your own local rivers and lakes. Around Town * State and federal environmental departments can assist communities and groups of communities to analyze and protect the water resources they share. In 2005 the U. S. Environmental Protection Agency (EPA) reported on its National Estuary Program and what it taught them about Community- Based Watershed Management. From the experience of 28 coastal watershed regions on all three coasts, they concluded that the model of viewing a watershed as a shared resource could unite citizens and community leaders in funding, organizing, and executing programs to improve their own and their neighbors water quality. Nationwide * Under the National Pollutant Discharge Elimination System (NEEDS), just one of the programs authorized in the sass by the Clean Water Act, the U. S. EPA is empowered to regula te any pipe, ditch or other conveyance that discharges water into any U. S. Waterway. For the most part, these regulations are administered by the states, and include state regulation of discharges from federal facilities. Thanks to programs such as this, 21 SST-century American children may find it hard to picture major rivers too dirty to swim or fish in. Globally * Unfortunately, much of the world is still catching up on water quality, but most of the world is paying attention. Among the results of the 1992 United Nations Conference on Environment and Development (UNCLE) in ROI De Jeanine, Brazil, was the establishment of World Water Day. The UN has also declared an international Water for Life decade that began in 2005 for the purpose of bringing nations together to recognize that everyone shares the same water and passes it back and forth around the world. The U. N . s millennium goals include a focus on water resources. Conclusion Clearly, the problems associated with water pollution have disabilities to disrupt life on our planet to a great extent. Congress hassled laws to try to combat water pollution thus acknowledging theft that water pollution is, indeed, a serious issue. But the government alone cannot solve the entire problem. It is ultimately Upton us, to be informed, responsible and involved when it comes to outperforms we face with our water. We must become familiar with oarlock water resources and learn about ways for disposing harmfulnesss wastes so they dont end up in sewage treatment plantation cant handle them or landfills not designed to receive housemistresses. In our yards, we must determine whether disorientations are needed before fertilizers are applied, and look formativeness where fertilizers might run off into surface waters. Weave to reserve existing trees and plant new trees and shrubs to helicopters soil erosion and promote infiltration of water into the soil. Around our houses, we must keep litter, pet waste, leaves, and graspingness out of gutters and storm drains. These are just a few of the many ways in which we, as humans, have the ability combat water pollution. As we head into the 21 SST century,awareness and education will most assuredly continue to be the topmost important ways to prevent water pollution. If these measures arent taken and water pollution continues, life on earth will subversively. Gibbon environmental collapse is not inevitable. But the developers must work with the developing world to ensure that industrialized economies do not add to the worlds environmentalisms. Politicians must think of sustainable development Earthman economic expansion. Conservation strategies have to becomes widely accepted, and people must learn that energy use can beatifically diminished without sacrificing comfort. In short, with technology that curtailments, the years of global environmental mistreatment can begin to persevered.

Exam 1 Assignment Example | Topics and Well Written Essays - 250 words

Exam 1 - Assignment Example Since property was communally owned, power remained to men as they controlled the property. With time, these societies shifted to agricultural activities but the position of women only deteriorated as work that is more productive resulted from farming. Spartan boys were enrolled in a rigorous education system sponsored by the state at age 7. This system referred to as the Agoge focused on military training throughout its socialization program. Women in Sparta were also raised in the same way as boys, only they were inactive in military. The Decalogue provides the society with a code of conduct that is supposed to honor the family, secure property, protect life, enhance trust, and define boundaries therefore securing a strong foundation for a productive social cohesion. They are remembered for their immense contribution in trade as they established it with the people that lived along the Mediterranean Sea. The Greeks actually received the alphabets from the Phoenicians as early as 15OOB.C. Aristotle’s most important contribution to the society was classifying the various branches of knowledge. He sorted the branches into psychology, education, logic, poetics, physics, and metaphysics. This laid the foundation of the sciences we know today. He also contributed ethics, a very important subject of philosophy. The Archimedes’ principle is probably the most known of his work. This defines the laws of floating bodies and is one of the basic laws through which shipbuilding, mining and metallurgy are founded. His original theories on levers, screws and the pulley system are responsible for forming a basis for

Managerial economics Essay Example | Topics and Well Written Essays - 1250 words

Managerial economics - Essay Example Mechanism of Demand Within a market framework, demand for any commodity or good or service is generally referred to as an amount which will be purchased at a particular price during a particular period of time. Now the law of demand can be also incorporated so as to analyze the relationship between price and quantity. In the domain of microeconomics or price theory it can be stated that the other things remaining constant (Cetaris Paribus) the quantity demanded of a commodity increases when its price decreases and decreases when its price rises (normal commodity and the exceptions of the law of demand are eradicated in this case and is not of relevance) (Arnold, 2010, p.56). So it can be stated that there exists a negative or inverse relationship between price and quantity. The negative association between price and quantity can be described as This negative relationship between price and quantity can be represented with the help of a linear demand curve by taking a smooth relation b etween price and quantity which can be depicted as follows: The above relationship can be depicted by the help of a two-dimensional graph with price and quantity axis. Fig. ... the quantity supplied rises with the rise in price and falls with the fall in price as in there is a direct relationship between price and quantity (Tucker, 2010Â  , p.57). The supply function is given by: The relation between price and quantity can be shown with a short mathematical exercise and a graph. Fig. 2 The Supply Curve (Tucker, 2010Â  , p.57). The diagram above it is the supply curve and it has a positive intercept which ‘a’ is taken from both the (2) and (4). The market equilibrium is said to achieve when the demand equals the supply curve and the intersection between the demand and supply curve gives us the equilibrium price on the vertical axis and quantity on the horizontal axis as depicted in the previous graphs. The answers to the questions can be explained with respect to diagrammatic framework which would be representing both demand and supply framework with equilibrium and the conditions deviating from the equilibrium. Fig. 3 The calculated Demand Cu rve Fig. 4 The calculated Supply Curve The calculated demand curve and the calculated supply curve are shown in the diagrams 3 and 4. Now the intersecting point of the demand and the supply curve would be giving us the equilibrium quantity of the pizzas in the market. In this particular case $ 6 is the equilibrium price and 81 quantities of pizza is the equilibrium quantity as at $ 6, 81 units of pizza are demanded and supplied and at this point there is no excess demand or excess supply existent in the market. The equilibrium condition can be depicted with the help of the following diagram: Fig.5 The market equilibrium and adjustment procedure In the above figure, the equilibrium price is $ 4 and the equilibrium quantity is given