In the novel of Mice and Men show how Steinbeck represents the theme of loneliness Essay Example for Free

In the novel of Mice and Men show how Steinbeck represents the theme of loneliness Essay The name of the author of this novel is John Steinbeck. He wrote this novel in 1936 and it was published in 1937. The novel is set in a ranch, which is near the town of Soledad, California. Steinbeck got the name for his novel from a poem by Robert Burns called To a mouse, on turning her up in her nest with the plough. At the time this novel was written America was in the period of the Great Depression. This meant people could not find many permanent jobs and so had to travel around the country looking for work. This meant that the workers were sometimes away from their families for a long time and had to travel alone just to try make some money. This was a very bad period in the American history with a high rate of suicide and many people got bankrupt. Usually the workers would stay in a job for a few weeks after which they would travel to find another job, this meant they did not have much time to make friends and so often were very lonely. The main characters in of Mice and Men are George and Lennie. The story is based around them and their time at the ranch. Some of the other important characters are Slim, Curly, Curlys wife and Candy. This novel has many themes in it which include loneliness, the dreams of the workers and also apartheid and sexism. Some of the characters who are lonely are Curlys wife and Crooks. These two are lonely because first of all Crooks is as Black person and at the time Black people did not have the same rights as White people. This meant that Crooks had no one to talk to and usually had to spend time by himself. After a while of spending time completely on his own Crooks thinks that he could be going crazy and he really wants some company. I know this because in chapter four Crooks is talking to Lennie and he say, I seen things out here. I wasnt drunk. I dont know if I was asleep. If some guy was with me, he could tell me I was asleep, an then it would be all right. But I just dont know. This shows that Crooks has been on his own for too long, and now he is not even sure of what is real and what is not. Crooks does not have any dreams because he has been at the ranch for a long time and has seen many peoples dreams destroyed. Another person who is lonely is Candys wife. She is lonely because she is a woman and so none of the men really talk to her. Also because she is the only woman on the ranch she has no other women to talk to either. This means she gets very lonely, however she does try talk to the men sometimes, but this has a bad affect. This is because the men think she is some type of whore or a slut who is trying to manipulate or use them in some way. This is unfair on Curlys wife because they do not know her and all she wants is some company. Also Curlys wife is from the city and so does not know how to do the ranch work and so she usually has to stay in the house on her own. Candy does not like Curlys wife because he thinks she is a tart. The ranch in the novel is near a town called Soledad, however because there are no buildings or people very close to the ranch itself, people inside only have each other to talk to and because Curlys wife is the only female she has no one to talk to and so feels isolated. This is also the case for Crooks because he is the only Black person on the ranch. In the novel, George is a migrant worker who has been traveling around America doing odd jobs with his fellow companion Lennie. George is a small man with small strong hands, dark face and sharp restless eyes. From his description I can see that George is a clever and careful character. Lennie on the other hand is a big man with large pale eyes, and sloping shoulders. His movement had a bear like quality and the way he is described in the novel makes him sound like an animal. George and Lennie travel together because they are friends and have known each other a long time. Also it would be better then traveling alone, because they would have no other companions and so would be lonely. At the start of the novel George and Lennie are in a natural clearing a few miles away from the ranch. They have not got any money because they had to buy bus tickets and had to flee the last town because Lennie got into trouble. George and Lennie have a good friendship but at times it seems that it is a relationship between and father and son. George seems to take the roll of the father and Lennie the son. Even though George complains about Lennie and says that he would be much better off without Lennie, he still needs Lennie for companionship. I know this because in chapter one George says, God a mighty, if I was alone I could live so easy. I could go get a job a job an work, an no trouble. This shows that George sometimes does wish he is alone because Lennie is sometimes just too much trouble and he thinks that if he didnt have to look after Lennie then he wouldnt have all this money trouble. Although, even though he sometimes wishes that Lennie wasnt around he knows that he couldnt live without him. I know this because when Lennie tells George that he can leave if George wants him to and says he can go live in the hills. George apologizes to Lennie for shouting at him and tells him to stay with him. George and Lennie both share a dream. Their dream is to own a piece of their own land where they can live and feed themselves. This is the American dream. For George and Lennie the dream makes them think they are different to the other workers. George tells Lennie how most workers make some money then spend it all in some brothel or bar He then tells Lennie how they are different. He tells him how they have each other and they have a dream that they are working towards. For George and Lennie their dream is very important because it is a way they are getting through life. The dream gives them hope, and that is one human feature that always seems to make people believe that everything will be ok and they will be happy. John Steinbeck shows that their dream is an ideal because it is just too perfect. The dream is about George and Lennie having their own land on which they will have rabbits, a cow and grow vegetables. Also the ways Lennie describes the rabbits shows that it is just a fantasy. He says they will be all different colours, like yellow and green. The readers know that this is impossible and yet they sympathize with Lennie because of his child like innocence. In chapter four George is with the rest of the men at a brothel called Susys. Even though they have gone there to get some relief after the long day they have had, it is quite hypocritical of George to be going to this brothel because he says that he is not one of the men who just goes there and spends all his money. Although we are not told if he does spend any money there it is quite likely he does spend some. This means he is being a hypocrite. In chapter four Lennie goes into Crooks room without being invited. In this chapter Lennie is in Crooks control and when Crooks starts telling Lennie that George has left him and wont come back Lennie believes him and then gets angry. Crooks calms him down because Lennie can be very dangerous when he gets angry or upset. After a while Candy comes in and he and Lennie start telling Crooks about their dream and how it will come true. Even though George told them not to tell anyone they tell Crooks anyway because he is Black and they think it wont matter if he knows. Candy is an old man who has been at the ranch for a long time. He has been allowed to stay there because his hand was cut off in one of the machines at the ranch. At the ranch he works as a floor sweeper. Candy is lonely because he is considered just to be an old man and none of the workers really talk to him that much. He did have a dog which was very important to him because he was his only companion and he had owned the dog since it was a puppy, unfortunately for him the dog became too old and so had to be shot. Also it hurt him more because he was not able to shoot him and the dog was shot by someone else. Crooks is lonely because he is a Black person and on the ranch he is the only one. They do not let him stay in the barn with the rest of the workers and so he has no one to talk to. He only has his books and they are very important to him because they are a form of companionship. Crooks and Candy are both lonely because they have no one who they can really talk with and make friends with. In chapter four they have been left behind while the rest go to Susys cathouse because Candy is considered to be too old and Crooks is Black and so cannot go into many places. Candy gets involved in George and Lennies dream because after his dog gets shot, Candy over hears George and Lennie talking about it and asks them if he could be apart of it. He says he is willing to pay and pays much more ten both George and Lennie combined. This dream gives Candy new hope and therefore feels livelier. When Crooks first hears about the dream he is quite critical about it but the further he hears about it the more convinced he becomes. However he has seen too many peoples dreams broken and so he says he does not want to be apart of it. Steinbeck shows that without dreams people have no hope and without hope life seems to be worthless. He shows that people need dreams, however farfetched they are, so that they feel they have goals and something to look forward to. Crooks has a more realistic attitude towards dreams, he says in chapter four that dreams get destroyed and it ruins people lives. I can show this because he says, an every damn one of ems got a little piece of land in his head. An never a god-damn one of em ever gets it. This is proof that Crooks is more realistic and he knows how the world works. He knows that people never seem to make their dreams come true. Curlys wife is quite young and beautiful. She is lonely because she has no one to talk to. She married Curly because she was upset with her mother and so does not really love Curly. She is a trophy wife for Curly. In chapter four she is the one in charge of all the misfits. She knows this and so she behaves quite badly and is mean to Crooks. When Crooks tells her to get out she tells him to be quiet or she will get him hanged. She tells him that all she has to do is scream rape and he will be hanged. This shows that Curlys wife also has an evil side. In this novel Steinbeck is sexist to women. He does not even give Curlys wife a name, and makes her look like a tart. Also most of the other characters think she is a bad woman, George gives her names such as jail-bait and tart. Curlys wife also has a dream. Her dream is to become a star and become rich and famous. She is quite gullible, we know this because she tells Lennie about a man telling her he would take her to Hollywood and make her a star, but in reality he just wanted her. Curlys wifes loneliness leads to her to own death because she is so desperate to talk to someone she starts to talk to Lennie. Lennie has a childlike mind and so does not really understand her and they both talk about two different things, but for Curlys wife just being with someone is good enough. She then lets him stroke her hair and when Lennie does not let go, she starts screaming, this makes Lennie confused and frightened and so he suffocates her. The writer has shown loneliness in this novel through the actions the characters take and the things they say. Some of the similarities between the lonely characters are that, that both Crooks and Candy are treated differently. This leads to them wanting to get involved in George and Lennies dream. Also Curlys wife is similar to these two characters because she is a woman, but between the three characters she is the most powerful one. Lennie and Candy are similar because they are both coping with life through their dreams. The writer is saying that loneliness is a curse itself and people react in different ways to it. He is trying to say that humans cannot survive when they are lonely and sometimes can go crazy. The novel of Mice and Men is a tragedy and the writer shows that George and Lennies friendship is doomed from the start. He shows that even though they need each other they will never be successful with their dream. With Lennies death the dream is over for both George and Candy. Without Lennie George will have no companionship and so he will be the same as the rest of the migrant workers. George shot Lennie because even though Lennie did not realize it, he had committed a crime and taken a persons life. George knew that Lennie had gone too far this time and knew that he had no other choice. Also he did not want the others to find him because they would have made him suffer and George would not have been able to see that happen. I think that in some ways he did do the right thing because if he let the others find Lennie they would have put him through trials and tortured him, however maybe he should have let the justice system deal with the case instead of taking matters into his own hands. The theme of loneliness in this novel is a very good reflection of the social and economic settings of the 1930s. I think this because many of the issues it covers are typical of the 1930s, such as racism and sexism.

Procter Gamble Company Merger Case Study

Procter Gamble Company Merger Case Study The project deals with the analysis of mergers and acquisitions in an FMCG sector. Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. This project deals with the merger of Procter Gamble and Gillette, acquisition of Balsaras hygiene and home product by Dabur and Acquisition of Nihar brand from HLL by Marico. The methodology deals with the various ways in which the data for this project was collected. Due to the limited scope of information and time constraints, secondary and not primary data sources has been used including journals, articles, reference sites, etc. The project guide proved very vital in the successful completion of my report. The next section deals with the individual introduction of both companies involved in the process of merger. It further includes the different terms of the merger and various synergies created through the merger. Furthermore the next section deals with scenario after the merger and analysis of financial statements of acquiring company post merger. Building a brand from scratch in the FMCG space can be quite an expensive exercise. Mature categories such as personal care or household products are already dominated by one or two strong incumbents and wresting market share away from them is quite a challenge. With growth rates in markets such as skin care, hair care and household products suddenly moving into high gear, companies also cannot afford to lose time on the trial-and-error method that usually accompanies new launches. Given this scenario, domestic players seem to view brand acquisitions and mergers as the quickest way to step into new categories and acquire a well-rounded product basket, without squandering their surpluses on brand-building expenses. Market shares apart, many of the buyouts have been motivated by the need to acquire better distribution reach whether within India or overseas. Introduction I. MERGER A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. A merger occurs when two or more companies combines and the resulting firm maintains the identity of one of the firms. One or more companies may merge with an existing company or they may merge to form a new company. Usually the assets and liabilities of the smaller firms are merged into those of larger firms. Merger may take two forms- Merger through absorption Merger through consolidation. Absorption: Absorption is a combination of two or more companies into an existing company. All companies except one lose their identity in a merger through absorption. Consolidation: A consolidation is a combination if two or more combines into a new company. In this form of merger all companies are legally dissolved and a new entity is created. In consolidation the acquired company transfers its assets, liabilities and share of the acquiring company for cash or exchange of assets. II. ACQUISITION A fundamental characteristic of merger is that the acquiring company takes over the ownership of other companies and combines their operations with its own operations. An acquisition may be defined as an act of acquiring effective control by one company over the assets or management of another company without any combination of companies. III. TAKEOVER A takeover may also be defined as obtaining control over management of a company by another company.Merger of Procter Gamble Company and Gillette CompanyAbout the merging companies: Procter Gamble Procter Gamble Company is asoap opera. PG was named 2008 Advertiser of the Year by Cannes International Advertising Festival. Effective July 1, 2007, the companys operations are categorized into three Global Business Units with each Global Business Unit divided into Business Segments according to the companys March 2009 earnings release. Beauty Care Beauty segment Grooming segment Household Care Baby Care and Family Care segment Fabric Care and Home Care segment Health and Well-Being Health Care segment Snacks, Coffee, and Pet Care segment PG has gone into an aggressive mode. It has launched two new variants on 2nd Dec 2009, one in the detergent segment, which is called Tide Naturals and also another one in skin care segment under the Olay brand. Gillette Company The Gillette Company is a globally focused consumer products marketer that seeks competitive advantage in quality, value-added personal care and personal use products. It is the world leader in the mens grooming product category as well as in certain womens grooming products. Although more than half of company profits are still derived from shaving equipmentthe area in which the company startedGillette has also attained the top spots worldwide in writing instruments (Paper Mate, Parker, and Waterman brands) and correction products (Liquid Paper), toothbrushes and other oral care products (Oral-B), and alkaline batteries (Duracell products, which generate almost one-fourth of company profits). Gillette maintains 64 manufacturing facilities in 27 countries, and its products are sold in more than 200 countries and territories, with more than 60 percent of sales occurring outside the United States. The Merger: On October 1, 2005, Procter Gamble finalized its purchase of The Gillette Company. As a result of this merger, the Gillette Company no longer exists. Its last day of market trading symbol G on theOral-B, among others, which have also been maintained by PG. The Terms of the Merger: Date of merger: The merger came into effect from July 1st, 2007. The new company formed : The Gillette Companys assets were initially incorporated into a PG unit known internally as Global Gillette. In July 2007, Global Gillette was dissolved and incorporated into Procter Gambles other two main divisions, Procter Gamble Beauty and Procter Gamble Household Care. Gillettes brands and products were divided between the two accordingly. The Share Swap Ratio : Under the deal announced, Procter Gamble will pay 0.975 share of its common stock for each share of Gillette common stock. On Wall Street, shares in Gillette closed up nearly 13%, while PG slid 2.1% after the announcement. The Management: Gillettes chief executive James Kilts is to join the board of the merged company, becoming PG vice chairman, while PG chief executive A.G. Lafley will remain chief executive of the merged company. Examining the merger: Type of merger: Procter Gamble being number one in consumer products went into acquiring and merging with other companies like, Germanys Wella AG hair care line in 2003 and it also acquired Clairol for its hair-care lines and Iams Co. for its pet foods. The merger in question; between Procter Gamble and Gillette is thus a merger where the acquiring company is expanding in size of operations and also product offerings. This is thus a horizontal merger. Operational Synergies of the merger: The merger of the two companies will create the worlds largest consumer products conglomerate. Both companies are strong, diversified companies, so one wonders what uncaptured synergies there could be here. PG is adept at taking innovations from one product and transferring it to another product, so there may be opportunities to improve existing Gillette products. In addition, the companies are stating that the merger will give them more negotiating power with the most powerful buyer of consumer products. The deal would give the company even more control over shelf space at the nations retailers and grocers, real estate that is at a premium. Executives at the companies said they believe theyll both be able to grow faster together than separately, with PG opening doors for Gillette in markets such as China and Japan while Gillette bringing PG some product segments that are growing faster than the companys overall current portfolio of products.The merger will make PG the worlds biggest household goods maker, pushing Unilever into second place Financial Synergies: The merger would create a company with revenues of more than Rs.2700 billion that would have even greater clout against mass-market retailers like Wal-Mart Stores Inc., which have been pressuring consumer product suppliers to keep costs low. Because of expectations from the deal, PG raised the annual revenue growth outlook to 5 to 7 percent, rather than its earlier target of 4 to 6 percent. The companies said they expected cost savings and synergies of about Rs.630 billion to Rs.720 billion US over three years. PG and Gillettes combined market capitalization of about Rs 8325 billion US, would be by far the largest in the FMCG sector. HR Synergies: As part of the cost-cutting that would follow the deal, the merger would result in the elimination of about 6,000 jobs, or 4 percent of the combined work force of about 140,000. It said most of the cuts would come from eliminating management overlaps and consolidation of business support functions. Gillettes chief executive James Kilts is to join the board of the merged company, becoming PG vice chairman, while PG chief executive A.G. Lafley will remain chief executive of the merged company. Scenario Post Merger: Procter Gamble is the worlds largest producer of household and personal products by revenue, with its products reaching 4 billion people worldwide and its product line includes 23 brands across beauty, healthcare, and food including Tide detergent, Pampers diapers, and Gillette razors, that generate over $1 billion in revenue annually, with the companys total revenue at Rs.3555 billion in 2009.In 2005, PG expanded its portfolio to include razors and blades as well as batteries with its acquisition of the Gillette Company.The companys 2010 first quarter net income fell 1% to Rs.148.95 billion (Rs.46.35 per share) as higher prices offset lower sales volumes and foreign exchange effects, beating analyst expectations of Rs.43.65 per share. Revenue fell 6% to Rs.891.45 billion, though organic sales rose 2%. One of the key areas of growth for the company is in emerging markets worldwide. Sales in developing nations have increased steadily from 20% of total revenue in 2002 to 32% in 2009.PG already owns large and growing market share in countries includingglobal economic downturn, PG has announced it will focus its growth strategy on emerging markets, opening almost all of its 20 new manufacturing facilities outside its established markets. Procter Gamble attempts to maintain its competitive edge by focusing on product innovation. To this end, PG spends almost twice as much on research and development spending Rs.90 billion in 2009 as its closest competitor, Unilever, spent about Rs.58.5 billion USD in 2008.Through itsConnect + Developinitiative, PG looks to bring in new product ideas from outside the company. Connect + Develop has led to the development of 42% of new PG products in recent years. In fiscal 2009, PGs Net sales fell 3% to Rs.3555 billion driven by a 3% decline in unit volume and a 4% decline in net sales from the rising US dollar. Organic sales, a closely watched figure which excludes the impact of acquisitions, divestitures, andforeign exchange, increased 2%, which is below its target organic sales range of 4-6%.Earnings for fiscal 2009 increased 11% to Rs.603 billion. In July 2009, CEO A.G. Lafley stepped down from his post after 29 years with Proctor Gamble.He was succeeded by current COO Bob McDonald.The company expects sales to be up 0 to 3% in fiscal 2010,with sales back up in the fall of 2009, fed by price cuts, new products, and value-focused promotions. PG divides its business into three Global Business Units (GBUs) that develop and produce products and its corporate group which handles the operation and administration of the company. Beauty (33% of 2009 sales, 36% of 2009 net income): The Beauty GBU includes all hair and skin products, medications, razors, electric shavers, and batteries. This business unit includes several product lines acquired when the PG bought consumer products company Gillette in 2005. Proctor Gambles global market share in blades and razors is 70%, primarily centered on its Mach3, Fusion, Venus, and Gillette brands.In June 2009, PG further expanded its mens grooming business with the acquisition of the high-end shaving company The Art of Shaving and the mens skin care line Zirh. Health and Well-Being (21% of 2009 sales, 24% of 2009 net income): The Health and Well-Being GBU provide oral care, feminine health, pharmaceuticals, snacks, coffee, and pet care products. In oral care, the company has the number two market share position at 20% globally.In potato chips, the companys Pringles brand holds a market share of approximately 10%. Household Care (46.8% of 2009 sales, 43% of 2009 net income): The Household Care GBU manufactures a wide range of products from laundry detergent to diapers. The companys baby care market share in 2008 was 29%. Business Growth and Divestitures Folgers Sale On June 4, 2008, PG sold its Folgers coffee unit toJ.M. Smucker Companyfor Rs.132.75 billion.As part of the deal, PG shareholders will receive a 53.5 percent stake in Smuckers and the company will assume Rs.15750 million of Folgers debt. Gillette Acquisition Procter Gamble acquired Gillette in 2005 for over Rs.2250 billion in its largest acquisition to date. In 2004, the last full year before the acquisition, Gillette generated over Rs.450 billion in sales, about Rs.270 billion of which came from razors and Duracell and Braun products and the remainder sourced from the Oral-B brand, which was moved into the Health Well-Being segment. A key piece of the acquisition beyond Gillettes product lines was its distribution network and supply chain. Gillettes distribution network and supply chain in emerging markets had been extremely successful for Gillette and, once acquired, has worked to complement PGs own distribution network. Sale of Pharmaceutical Unit In 2009 PG sold its pharmaceutical unit to Warner Chilcott Plc for Rs.139.5 billion in cash.The company expects to book a 43 cent per share earnings boost in Q2 of fiscal 2010 as a result of the sale.The deal allows PG to focus on its personal care, beauty, and household product divisions. In 2006, the company started winding down its discover-phase pharmaceutical products in favor of licensing late-stage compounds, and announced in 2008 it would exit the drug industry entirely. PG 2008 Net sales by Geographic Region(Post merger) PG has a well-established market presence in developed countries such as the United States and Western Europe and is looking to its presence in emerging markets. In fiscal 2009, 32% of total net sales came from developing nations,a figure that has increased steadily from 2002 when sales in developing nations accounted for only about 20% of total revenue (approximately Rs.360 billion). In China and Russia, PGs market share has been consistently increasing in the past five years as Procter Gamble has put an increased emphasis on establishing its products in those markets. In 2008, the companys distribution network reached 800 million people in China and 80% of the population in Russia. PG has created products designed specifically to target developing nations. The average Mexican spends about Rs.9000 a year on PG products, Chinese per-capita spending is only about Rs.135 and India per-capita spending Rs.45.Increasing sales in China and India to the levels in Mexico would add Rs.1800 billion in sales to the companys overall revenue. Research Development focuses both inside and outside the company In 2009, PG spent approximately Rs.91.8 billion on Research Development, nearly Rs.45 billion more than its closest competitor, Unilever.The two most important factors in PGs innovation process are its practice of consumer demand research and its Connect and Develop RD structure. First, when entering new markets, PG sets up in-home visits with consumers in order to fully understand the needs and desires consumers have for household and personal products. This way, PG gets directly to its customers and is able to cater to their needs. PG also incorporates consumers input into the RD process through its Connect and Develop initiative. Through Connect and Develop PG has an online interface set up where people can submit product ideas and provide input on topics that PG places on the web-portal. PG staff then sorts through the ideas and work with the most promising ones. This process is not responsible for the entire RD that PG does, but approximately 42% of new products in the last sev eral years were influenced by or originated from Connect and Develop. Tide Stain Release, a stain-removing detergent released in July 2009, has garnered 10% market share in the US as of November 2009.The Bounce Dryer Bar, an automatic laundry freshener released in August 2009, has captured 7% of the North American fabric sheet market as of November 2009. Commodity Prices A diversified consumer products manufacturer, PG depends heavily on a wide basket of global commodities for manufacturing its goods, the prices for which have risen nearly 50% since 2002. Nearly half of the companys cost of goods is directly related to commodity goods. The company has increased prices due to higher costs of oil and other raw materials. In its conference call, the company stated that it expected raw material costs to increase Rs.135 billion in 2009.The company has raised prices on Cascade dishwashing detergent, Iams pet food, and Gillette razors to counter the increasing cost of oil in the first half of 2008.PG instituted broad price adjustments in Q1 2010 to close widening price gaps in several businessesincluding North American laundry, tissue, andtowel, and several Eastern European markets. Competition Procter Gamble provides the broadest and biggest portfolio of products in the household and personal care industry with 24 billion-dollar brands. PG generates 43% more revenue than its closest competitor,LOreal, and Reckitt Benckiser. Here are somekey factsabout the two firms. Cincinnati-based Procter Gamble was established in 1837 and made its name selling soap and candles to U.S. government soldiers during the civil war. Boston-based Gillette spends around Rs.2700 million annually on advertising. In May the razor-maker paid a reported 40 million pounds (Rs.3393 million) to sign international soccer star David Beckham to a three-year deal as its global face. Procter Gamble employs a workforce of 110,000 worldwide and has a market capitalization of Rs.6345 billion. Gillette employs 29,400 employees worldwide and has a market capitalization of Rs.2025 billion. Gillettes profit beat market expectations last October after Hurricane Ivan spurred the buying of Duracell batteries. Limitations: Due to lack of data the financial statements analysis of Procter Gamble was not carried out. Conclusion Thus the acquisition and integration of Gillette was the largest and most successful in the history of Procter Gamble. PG acquired Gillette, which is best known for its shaving products, in 2005 for Rs.2565 billion. The merger between Procter Gamble and Gillette is a horizontal merger where the acquiring company is expanding in size of operations and also product offerings. The merger created various synergies like financial, operation and human resource synergies. After the merger Procter Gamble integrated systems in 26 countries, spanning five geographic regions, representing about 20% of sales. Gillette is a catalyst that makes PG a better brand-builder and a stronger innovation leader. There is no doubt that PG and Gillette are stronger together than alone, and both the companies together can deliver accelerated growth targets over the balance of the decade. Acquisition of Balsarashygiene and home product by Dabur About the merging companies: Dabur Company Dabur India Limitedis the fourth largest FMCG Company in India and Dabur had a turnover of approximately Rs.2,834 Crore Market Capitalisation of over Rs 10,000 Crore, with brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur has global presence in 50 countries; products are available in the markets of Middle East, South-East Asia, Africa, the European Union andAmerica. Dabur is an investor friendly brand as its financial performance shows. The companys growth rate rose from 10% to 40%. The expected growth rate for two years was two-fold. Theres a great sense of responsibility for investors funds on view. This is a direct extension of Daburs philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall. The company, through Dabur Pharma Ltd. does toxicology tests and markets ayurvedic medicines in a scientific manner. They have researched new medicines which will find use in O.T. all over the country therein opening a new market. Dabur Foods, a subsidiary of Dabur India is expecting to grow at 25%. Its brands of juices, namely, Real and Active, together make it the market leader in the Fruit Juice Category. Dabur Ranked AmongIndias Most Trusted Brands of 2007 By Economic Times-Brand Equity. Products of Dabur Ø Under health care products it has brands like Hajmola, Pudin Hara, Dabur Chyawanprash, Glucose D, Dabur Lal tail,etc. Ø In home care range consist of product like Odinil,Odomos,odopic,etc. Ø Under personal care range it has product like Vatika,Gulabri,Dabur Red Toothpaste,etc. Ø In food range it has brands like Real Active ,HOMMADE-range of ready made pastes, soups, coconut milk tomato puree Ø Dabur has guar gum plant,a natural gum used in foods industrial applications. Ø Dabur also produces ayurvedic medicines. Balsara Company The Balsara Group manufactures and markets its products, in India and Internationally. The Group has a domestic annual sales turnover of Indian Rs. 2 billion, and a rapidly growing international sales turnover of Indian Rs. 350 million. The Group is professionally managed, with manufacturing, sales, distribution and administrative facilities located throughout India, in addition to its international operations. In the Indian market, 60% of the Balsara Groups sales turnover of Indian Rs. 2 billion comes from Personal Hygiene Products (Promise, Babool and Meswak oral care ranges) and 40% is derived from Household Products (Odomos insect repellents, Odonil Air Fresheners, Sani Fresh toilet cleaners and Odopic dish washing products). Balsara has a wide national sales and distribution system that makes products available in 10, 54,000 retail outlets. The system is supported by a distribution network of 4 Zonal Offices, 13 Branches, 24 Regional Warehouses, and 1700 Distributors in 1500 towns. The mission of the Balsara Group of Companies is to be a leading provider of superior quality personal and household products, ingredients and packaging materials to consumers and customers on the Indian sub-continent and throughout the world. The Acquisition: On January 27, 2005 Dabur India today announced the acquisition of Balsara Hygeine and Home Care businesses for Rs. 143 crores and said it would look at more buyouts to capitalise on the consolidation in the sector. The company board of Dabur approved the acquisition of controlling stake in three Balsara group companies Balsara Hygiene Products, Balsara Home Products and Besta Cosmectics. With the acquisition of the Rs. 143-crore Balsara Group in an all cash deal, Dabur India will have oral care brands such as Promise, Babool, Meswak; mosquito repellents such as Odomos and household products such as Odonil and Odopic under its fold. Dabur India will acquire the entire promoters stake in the three companies 99.4 per cent in Balsara Hygiene, 100 per cent in Balsara Home Products and 97.9 per cent in Besta Cosmetics. The Terms of the Acquisition: Date of the acquisition: The merger came into effect from 1st April 2006. The new company formed : According to the deal Dabur will take full control of Balsaras entire brand portfolio which consists of oral care brands like Promise, Babool, Meswak; mosquito repellants like Odomos and household products like Odonil, Odopic. The deal also includes takeover of Balsaras operations consisting of three manufacturing facilities at Kanpur, Silvassa and Baddi and about 600 employees. Dabur India will also acquire the entire promoters stake in the three companies 99.4 per cent in Balsara Hygiene, 100 per cent in Balsara Home Products and 97.9 per cent in Besta Cosmetics. The Share Swap Ratio : Under the deal announced, Dabur India Ltd will acquire Balsaras hygiene and home product businesses in an Rs 143 crore all-cash deal. While Rs 120 crore will be funded through internal accruals, the balance Rs 23 crore will be raised through debt. Examining the Acquisition: Type of merger: The Rs 1,300-crore fast-moving consumer goods major Dabur India acquired Mum Procter Gamble Company Merger Case Study Procter Gamble Company Merger Case Study The project deals with the analysis of mergers and acquisitions in an FMCG sector. Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. This project deals with the merger of Procter Gamble and Gillette, acquisition of Balsaras hygiene and home product by Dabur and Acquisition of Nihar brand from HLL by Marico. The methodology deals with the various ways in which the data for this project was collected. Due to the limited scope of information and time constraints, secondary and not primary data sources has been used including journals, articles, reference sites, etc. The project guide proved very vital in the successful completion of my report. The next section deals with the individual introduction of both companies involved in the process of merger. It further includes the different terms of the merger and various synergies created through the merger. Furthermore the next section deals with scenario after the merger and analysis of financial statements of acquiring company post merger. Building a brand from scratch in the FMCG space can be quite an expensive exercise. Mature categories such as personal care or household products are already dominated by one or two strong incumbents and wresting market share away from them is quite a challenge. With growth rates in markets such as skin care, hair care and household products suddenly moving into high gear, companies also cannot afford to lose time on the trial-and-error method that usually accompanies new launches. Given this scenario, domestic players seem to view brand acquisitions and mergers as the quickest way to step into new categories and acquire a well-rounded product basket, without squandering their surpluses on brand-building expenses. Market shares apart, many of the buyouts have been motivated by the need to acquire better distribution reach whether within India or overseas. Introduction I. MERGER A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. A merger occurs when two or more companies combines and the resulting firm maintains the identity of one of the firms. One or more companies may merge with an existing company or they may merge to form a new company. Usually the assets and liabilities of the smaller firms are merged into those of larger firms. Merger may take two forms- Merger through absorption Merger through consolidation. Absorption: Absorption is a combination of two or more companies into an existing company. All companies except one lose their identity in a merger through absorption. Consolidation: A consolidation is a combination if two or more combines into a new company. In this form of merger all companies are legally dissolved and a new entity is created. In consolidation the acquired company transfers its assets, liabilities and share of the acquiring company for cash or exchange of assets. II. ACQUISITION A fundamental characteristic of merger is that the acquiring company takes over the ownership of other companies and combines their operations with its own operations. An acquisition may be defined as an act of acquiring effective control by one company over the assets or management of another company without any combination of companies. III. TAKEOVER A takeover may also be defined as obtaining control over management of a company by another company.Merger of Procter Gamble Company and Gillette CompanyAbout the merging companies: Procter Gamble Procter Gamble Company is asoap opera. PG was named 2008 Advertiser of the Year by Cannes International Advertising Festival. Effective July 1, 2007, the companys operations are categorized into three Global Business Units with each Global Business Unit divided into Business Segments according to the companys March 2009 earnings release. Beauty Care Beauty segment Grooming segment Household Care Baby Care and Family Care segment Fabric Care and Home Care segment Health and Well-Being Health Care segment Snacks, Coffee, and Pet Care segment PG has gone into an aggressive mode. It has launched two new variants on 2nd Dec 2009, one in the detergent segment, which is called Tide Naturals and also another one in skin care segment under the Olay brand. Gillette Company The Gillette Company is a globally focused consumer products marketer that seeks competitive advantage in quality, value-added personal care and personal use products. It is the world leader in the mens grooming product category as well as in certain womens grooming products. Although more than half of company profits are still derived from shaving equipmentthe area in which the company startedGillette has also attained the top spots worldwide in writing instruments (Paper Mate, Parker, and Waterman brands) and correction products (Liquid Paper), toothbrushes and other oral care products (Oral-B), and alkaline batteries (Duracell products, which generate almost one-fourth of company profits). Gillette maintains 64 manufacturing facilities in 27 countries, and its products are sold in more than 200 countries and territories, with more than 60 percent of sales occurring outside the United States. The Merger: On October 1, 2005, Procter Gamble finalized its purchase of The Gillette Company. As a result of this merger, the Gillette Company no longer exists. Its last day of market trading symbol G on theOral-B, among others, which have also been maintained by PG. The Terms of the Merger: Date of merger: The merger came into effect from July 1st, 2007. The new company formed : The Gillette Companys assets were initially incorporated into a PG unit known internally as Global Gillette. In July 2007, Global Gillette was dissolved and incorporated into Procter Gambles other two main divisions, Procter Gamble Beauty and Procter Gamble Household Care. Gillettes brands and products were divided between the two accordingly. The Share Swap Ratio : Under the deal announced, Procter Gamble will pay 0.975 share of its common stock for each share of Gillette common stock. On Wall Street, shares in Gillette closed up nearly 13%, while PG slid 2.1% after the announcement. The Management: Gillettes chief executive James Kilts is to join the board of the merged company, becoming PG vice chairman, while PG chief executive A.G. Lafley will remain chief executive of the merged company. Examining the merger: Type of merger: Procter Gamble being number one in consumer products went into acquiring and merging with other companies like, Germanys Wella AG hair care line in 2003 and it also acquired Clairol for its hair-care lines and Iams Co. for its pet foods. The merger in question; between Procter Gamble and Gillette is thus a merger where the acquiring company is expanding in size of operations and also product offerings. This is thus a horizontal merger. Operational Synergies of the merger: The merger of the two companies will create the worlds largest consumer products conglomerate. Both companies are strong, diversified companies, so one wonders what uncaptured synergies there could be here. PG is adept at taking innovations from one product and transferring it to another product, so there may be opportunities to improve existing Gillette products. In addition, the companies are stating that the merger will give them more negotiating power with the most powerful buyer of consumer products. The deal would give the company even more control over shelf space at the nations retailers and grocers, real estate that is at a premium. Executives at the companies said they believe theyll both be able to grow faster together than separately, with PG opening doors for Gillette in markets such as China and Japan while Gillette bringing PG some product segments that are growing faster than the companys overall current portfolio of products.The merger will make PG the worlds biggest household goods maker, pushing Unilever into second place Financial Synergies: The merger would create a company with revenues of more than Rs.2700 billion that would have even greater clout against mass-market retailers like Wal-Mart Stores Inc., which have been pressuring consumer product suppliers to keep costs low. Because of expectations from the deal, PG raised the annual revenue growth outlook to 5 to 7 percent, rather than its earlier target of 4 to 6 percent. The companies said they expected cost savings and synergies of about Rs.630 billion to Rs.720 billion US over three years. PG and Gillettes combined market capitalization of about Rs 8325 billion US, would be by far the largest in the FMCG sector. HR Synergies: As part of the cost-cutting that would follow the deal, the merger would result in the elimination of about 6,000 jobs, or 4 percent of the combined work force of about 140,000. It said most of the cuts would come from eliminating management overlaps and consolidation of business support functions. Gillettes chief executive James Kilts is to join the board of the merged company, becoming PG vice chairman, while PG chief executive A.G. Lafley will remain chief executive of the merged company. Scenario Post Merger: Procter Gamble is the worlds largest producer of household and personal products by revenue, with its products reaching 4 billion people worldwide and its product line includes 23 brands across beauty, healthcare, and food including Tide detergent, Pampers diapers, and Gillette razors, that generate over $1 billion in revenue annually, with the companys total revenue at Rs.3555 billion in 2009.In 2005, PG expanded its portfolio to include razors and blades as well as batteries with its acquisition of the Gillette Company.The companys 2010 first quarter net income fell 1% to Rs.148.95 billion (Rs.46.35 per share) as higher prices offset lower sales volumes and foreign exchange effects, beating analyst expectations of Rs.43.65 per share. Revenue fell 6% to Rs.891.45 billion, though organic sales rose 2%. One of the key areas of growth for the company is in emerging markets worldwide. Sales in developing nations have increased steadily from 20% of total revenue in 2002 to 32% in 2009.PG already owns large and growing market share in countries includingglobal economic downturn, PG has announced it will focus its growth strategy on emerging markets, opening almost all of its 20 new manufacturing facilities outside its established markets. Procter Gamble attempts to maintain its competitive edge by focusing on product innovation. To this end, PG spends almost twice as much on research and development spending Rs.90 billion in 2009 as its closest competitor, Unilever, spent about Rs.58.5 billion USD in 2008.Through itsConnect + Developinitiative, PG looks to bring in new product ideas from outside the company. Connect + Develop has led to the development of 42% of new PG products in recent years. In fiscal 2009, PGs Net sales fell 3% to Rs.3555 billion driven by a 3% decline in unit volume and a 4% decline in net sales from the rising US dollar. Organic sales, a closely watched figure which excludes the impact of acquisitions, divestitures, andforeign exchange, increased 2%, which is below its target organic sales range of 4-6%.Earnings for fiscal 2009 increased 11% to Rs.603 billion. In July 2009, CEO A.G. Lafley stepped down from his post after 29 years with Proctor Gamble.He was succeeded by current COO Bob McDonald.The company expects sales to be up 0 to 3% in fiscal 2010,with sales back up in the fall of 2009, fed by price cuts, new products, and value-focused promotions. PG divides its business into three Global Business Units (GBUs) that develop and produce products and its corporate group which handles the operation and administration of the company. Beauty (33% of 2009 sales, 36% of 2009 net income): The Beauty GBU includes all hair and skin products, medications, razors, electric shavers, and batteries. This business unit includes several product lines acquired when the PG bought consumer products company Gillette in 2005. Proctor Gambles global market share in blades and razors is 70%, primarily centered on its Mach3, Fusion, Venus, and Gillette brands.In June 2009, PG further expanded its mens grooming business with the acquisition of the high-end shaving company The Art of Shaving and the mens skin care line Zirh. Health and Well-Being (21% of 2009 sales, 24% of 2009 net income): The Health and Well-Being GBU provide oral care, feminine health, pharmaceuticals, snacks, coffee, and pet care products. In oral care, the company has the number two market share position at 20% globally.In potato chips, the companys Pringles brand holds a market share of approximately 10%. Household Care (46.8% of 2009 sales, 43% of 2009 net income): The Household Care GBU manufactures a wide range of products from laundry detergent to diapers. The companys baby care market share in 2008 was 29%. Business Growth and Divestitures Folgers Sale On June 4, 2008, PG sold its Folgers coffee unit toJ.M. Smucker Companyfor Rs.132.75 billion.As part of the deal, PG shareholders will receive a 53.5 percent stake in Smuckers and the company will assume Rs.15750 million of Folgers debt. Gillette Acquisition Procter Gamble acquired Gillette in 2005 for over Rs.2250 billion in its largest acquisition to date. In 2004, the last full year before the acquisition, Gillette generated over Rs.450 billion in sales, about Rs.270 billion of which came from razors and Duracell and Braun products and the remainder sourced from the Oral-B brand, which was moved into the Health Well-Being segment. A key piece of the acquisition beyond Gillettes product lines was its distribution network and supply chain. Gillettes distribution network and supply chain in emerging markets had been extremely successful for Gillette and, once acquired, has worked to complement PGs own distribution network. Sale of Pharmaceutical Unit In 2009 PG sold its pharmaceutical unit to Warner Chilcott Plc for Rs.139.5 billion in cash.The company expects to book a 43 cent per share earnings boost in Q2 of fiscal 2010 as a result of the sale.The deal allows PG to focus on its personal care, beauty, and household product divisions. In 2006, the company started winding down its discover-phase pharmaceutical products in favor of licensing late-stage compounds, and announced in 2008 it would exit the drug industry entirely. PG 2008 Net sales by Geographic Region(Post merger) PG has a well-established market presence in developed countries such as the United States and Western Europe and is looking to its presence in emerging markets. In fiscal 2009, 32% of total net sales came from developing nations,a figure that has increased steadily from 2002 when sales in developing nations accounted for only about 20% of total revenue (approximately Rs.360 billion). In China and Russia, PGs market share has been consistently increasing in the past five years as Procter Gamble has put an increased emphasis on establishing its products in those markets. In 2008, the companys distribution network reached 800 million people in China and 80% of the population in Russia. PG has created products designed specifically to target developing nations. The average Mexican spends about Rs.9000 a year on PG products, Chinese per-capita spending is only about Rs.135 and India per-capita spending Rs.45.Increasing sales in China and India to the levels in Mexico would add Rs.1800 billion in sales to the companys overall revenue. Research Development focuses both inside and outside the company In 2009, PG spent approximately Rs.91.8 billion on Research Development, nearly Rs.45 billion more than its closest competitor, Unilever.The two most important factors in PGs innovation process are its practice of consumer demand research and its Connect and Develop RD structure. First, when entering new markets, PG sets up in-home visits with consumers in order to fully understand the needs and desires consumers have for household and personal products. This way, PG gets directly to its customers and is able to cater to their needs. PG also incorporates consumers input into the RD process through its Connect and Develop initiative. Through Connect and Develop PG has an online interface set up where people can submit product ideas and provide input on topics that PG places on the web-portal. PG staff then sorts through the ideas and work with the most promising ones. This process is not responsible for the entire RD that PG does, but approximately 42% of new products in the last sev eral years were influenced by or originated from Connect and Develop. Tide Stain Release, a stain-removing detergent released in July 2009, has garnered 10% market share in the US as of November 2009.The Bounce Dryer Bar, an automatic laundry freshener released in August 2009, has captured 7% of the North American fabric sheet market as of November 2009. Commodity Prices A diversified consumer products manufacturer, PG depends heavily on a wide basket of global commodities for manufacturing its goods, the prices for which have risen nearly 50% since 2002. Nearly half of the companys cost of goods is directly related to commodity goods. The company has increased prices due to higher costs of oil and other raw materials. In its conference call, the company stated that it expected raw material costs to increase Rs.135 billion in 2009.The company has raised prices on Cascade dishwashing detergent, Iams pet food, and Gillette razors to counter the increasing cost of oil in the first half of 2008.PG instituted broad price adjustments in Q1 2010 to close widening price gaps in several businessesincluding North American laundry, tissue, andtowel, and several Eastern European markets. Competition Procter Gamble provides the broadest and biggest portfolio of products in the household and personal care industry with 24 billion-dollar brands. PG generates 43% more revenue than its closest competitor,LOreal, and Reckitt Benckiser. Here are somekey factsabout the two firms. Cincinnati-based Procter Gamble was established in 1837 and made its name selling soap and candles to U.S. government soldiers during the civil war. Boston-based Gillette spends around Rs.2700 million annually on advertising. In May the razor-maker paid a reported 40 million pounds (Rs.3393 million) to sign international soccer star David Beckham to a three-year deal as its global face. Procter Gamble employs a workforce of 110,000 worldwide and has a market capitalization of Rs.6345 billion. Gillette employs 29,400 employees worldwide and has a market capitalization of Rs.2025 billion. Gillettes profit beat market expectations last October after Hurricane Ivan spurred the buying of Duracell batteries. Limitations: Due to lack of data the financial statements analysis of Procter Gamble was not carried out. Conclusion Thus the acquisition and integration of Gillette was the largest and most successful in the history of Procter Gamble. PG acquired Gillette, which is best known for its shaving products, in 2005 for Rs.2565 billion. The merger between Procter Gamble and Gillette is a horizontal merger where the acquiring company is expanding in size of operations and also product offerings. The merger created various synergies like financial, operation and human resource synergies. After the merger Procter Gamble integrated systems in 26 countries, spanning five geographic regions, representing about 20% of sales. Gillette is a catalyst that makes PG a better brand-builder and a stronger innovation leader. There is no doubt that PG and Gillette are stronger together than alone, and both the companies together can deliver accelerated growth targets over the balance of the decade. Acquisition of Balsarashygiene and home product by Dabur About the merging companies: Dabur Company Dabur India Limitedis the fourth largest FMCG Company in India and Dabur had a turnover of approximately Rs.2,834 Crore Market Capitalisation of over Rs 10,000 Crore, with brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur has global presence in 50 countries; products are available in the markets of Middle East, South-East Asia, Africa, the European Union andAmerica. Dabur is an investor friendly brand as its financial performance shows. The companys growth rate rose from 10% to 40%. The expected growth rate for two years was two-fold. Theres a great sense of responsibility for investors funds on view. This is a direct extension of Daburs philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall. The company, through Dabur Pharma Ltd. does toxicology tests and markets ayurvedic medicines in a scientific manner. They have researched new medicines which will find use in O.T. all over the country therein opening a new market. Dabur Foods, a subsidiary of Dabur India is expecting to grow at 25%. Its brands of juices, namely, Real and Active, together make it the market leader in the Fruit Juice Category. Dabur Ranked AmongIndias Most Trusted Brands of 2007 By Economic Times-Brand Equity. Products of Dabur Ø Under health care products it has brands like Hajmola, Pudin Hara, Dabur Chyawanprash, Glucose D, Dabur Lal tail,etc. Ø In home care range consist of product like Odinil,Odomos,odopic,etc. Ø Under personal care range it has product like Vatika,Gulabri,Dabur Red Toothpaste,etc. Ø In food range it has brands like Real Active ,HOMMADE-range of ready made pastes, soups, coconut milk tomato puree Ø Dabur has guar gum plant,a natural gum used in foods industrial applications. Ø Dabur also produces ayurvedic medicines. Balsara Company The Balsara Group manufactures and markets its products, in India and Internationally. The Group has a domestic annual sales turnover of Indian Rs. 2 billion, and a rapidly growing international sales turnover of Indian Rs. 350 million. The Group is professionally managed, with manufacturing, sales, distribution and administrative facilities located throughout India, in addition to its international operations. In the Indian market, 60% of the Balsara Groups sales turnover of Indian Rs. 2 billion comes from Personal Hygiene Products (Promise, Babool and Meswak oral care ranges) and 40% is derived from Household Products (Odomos insect repellents, Odonil Air Fresheners, Sani Fresh toilet cleaners and Odopic dish washing products). Balsara has a wide national sales and distribution system that makes products available in 10, 54,000 retail outlets. The system is supported by a distribution network of 4 Zonal Offices, 13 Branches, 24 Regional Warehouses, and 1700 Distributors in 1500 towns. The mission of the Balsara Group of Companies is to be a leading provider of superior quality personal and household products, ingredients and packaging materials to consumers and customers on the Indian sub-continent and throughout the world. The Acquisition: On January 27, 2005 Dabur India today announced the acquisition of Balsara Hygeine and Home Care businesses for Rs. 143 crores and said it would look at more buyouts to capitalise on the consolidation in the sector. The company board of Dabur approved the acquisition of controlling stake in three Balsara group companies Balsara Hygiene Products, Balsara Home Products and Besta Cosmectics. With the acquisition of the Rs. 143-crore Balsara Group in an all cash deal, Dabur India will have oral care brands such as Promise, Babool, Meswak; mosquito repellents such as Odomos and household products such as Odonil and Odopic under its fold. Dabur India will acquire the entire promoters stake in the three companies 99.4 per cent in Balsara Hygiene, 100 per cent in Balsara Home Products and 97.9 per cent in Besta Cosmetics. The Terms of the Acquisition: Date of the acquisition: The merger came into effect from 1st April 2006. The new company formed : According to the deal Dabur will take full control of Balsaras entire brand portfolio which consists of oral care brands like Promise, Babool, Meswak; mosquito repellants like Odomos and household products like Odonil, Odopic. The deal also includes takeover of Balsaras operations consisting of three manufacturing facilities at Kanpur, Silvassa and Baddi and about 600 employees. Dabur India will also acquire the entire promoters stake in the three companies 99.4 per cent in Balsara Hygiene, 100 per cent in Balsara Home Products and 97.9 per cent in Besta Cosmetics. The Share Swap Ratio : Under the deal announced, Dabur India Ltd will acquire Balsaras hygiene and home product businesses in an Rs 143 crore all-cash deal. While Rs 120 crore will be funded through internal accruals, the balance Rs 23 crore will be raised through debt. Examining the Acquisition: Type of merger: The Rs 1,300-crore fast-moving consumer goods major Dabur India acquired Mum

Efficient Market Hypothesis (EMH) History and

Efficient Market Hypothesis (EMH) History and PART 2 EFFICIENCY MARKET HYPOTHESIS Introduction In order to better understand the origin and the idea behind the Efficient Market Hypothesis (EMH), an overview of the EMH, The Random Walk Model, different degrees of information efficiency and the implications of efficient markets for investors are studied in the paper. Efficient Market Hypothesis The efficiency concept is one of the most essential concepts for investment management and analysis. Market efficiency basically revolves around three related assumptions on proper- allocation efficiency, informational efficiency and operational efficiency. Efficiency in allocation is a vital characteristic of a strong market wherein the allocation of capital is done in a proper way so that it benefits all the participants and helps in promotion of economic growth and status. Efficiency in operation is another crucial parameter which is used commonly by economists to determine and analyzes how resources are utilized in the market to benefit operational activities in the market and industry. Efficiency in information helps to determine the actual market value of shares based on its intrinsic value. The Information efficiency signifies that reflection on all available information pertaining to the security’s price must be used to determine the security’s observed market price. (Hossain,Rahman, 2006) The introduction to the idea of market efficiency was given by Bachelier (1900) and later it was termed as efficient market by Fama (1965) Fama (1970) further went on to state the vital conditions/ assumptions for maintaining efficiency: Provision of no transactional costs during the trading of securities; All information is freely available to all the participants in the market, and Agreement of all of them on the implications of the information relating to the current price and future distribution of prices of each security He identified three forms of informational efficiency, which are the weak form(underdeveloped), the semi-strong form(developing) and the strong form efficiency(developed). Forms of Market Efficiency Weak-Form Efficiency Weak form efficiency market implies that it is an efficient market which reflects all its market information accurately and does not provide profit for the investor based on past records or rates. This past records stands invalid for the market. Fama (1970) stipulates in his theory that no investor can avail greater returns when the market is weak-form efficient. Example African economy has a weak efficiency market wherein the means to attain gains on investment is narrow based on past investment experience. Example trading test, auto correlation test and run test. Semi-Strong Form Efficiency Semi Strong Form Efficiency market indicates that market is efficient and it reflects all public information. It says that the stocks are absorbant of all new information and incorporates it by adjusting to it. It is partly like the weak form efficiency market wherein the stocks rate are based upon new information that is released after the stocks are bought. So making it difficult for the market to be predictable. Fama (1970) explains the semi-strong form efficient market as the one where share price not only reflect on all information regarding its past and historic prices, but also includes additional public information which is later on integrated with the shared price and adjusted to reveal the true share value. This also implies that an investor will not be able to use the public information for the generation of gains in the evolving stock market. Event tests and time series/ regression tests are some examples. Strong Form Efficiency The Strong form efficient market relies on both public as well as private information wherein the stock prices are based and reflected upon. So an average investor cannot make much profit more than others also when he is given the new information. It incorporates both the weak form and semi strong form of market efficiency. Private information concerns the information that is not yet published or known only to the security analysts/ fund managers. The new public and private information is then incorporated into the share price to represent its true share value. This makes it even more difficult for the investor to assess share values. Examples are insiders, exchange specialists, institutional money managers and analysts who have access to new information. Fundamental analysis and technical analysis This analysis makes use of analysing and evaluating the financial statements, health of the business, efficiency of the management and their competitive advantages, while also examining the competition in the market. When applied on forex and futures market it uses production, interest rates, earnings, GDP, employment, manufacturing, housing and management analysis. While technical analysis predicts the future of market based on past prices, volume and market information. This is useful for behaviour economics and quantitative analysis. Both these methods of analysis contradict the premise and study made on efficiency market theory which states that study of market with accuracy cannot be determined by any method. Implications of EMH Market efficiency has some prominent implications concerned with both authorities and investors, which are mentioned below: When a market is efficient they must 1. Not worry about analysis on their investments, but concentrate rather on developing a diversified portfolio to get rewarded for their investments. 2. Adopt to the policy of buy and hold after establishing their portfolios as making frequent changing by shifting from one securities group to another would raise for them unwarranted transaction costs. Other implications are based on the fact that changes in price are random and cannot be predicted, investors are smart enough to not get fooled by the financial reports circulated and lastly the timing of security issues are not crucial. Investors must pay more attention to construct and hold diversified and efficient portfolios rather than taking to fundamental and technical analysis. This approach will definitely benefit them in the long run. Empirical Evidences for anomalies The empirical evidence lists some of the significant ‘anomalies which contradict the efficient market theory as listed below: The January Effect It is often noticed that the stock returns raise high abnormally in the first week of January which is defined as the January effect wherein most of the investors opt to sell some of the stocks befor the year end and later claim for a capital loss to evade tax and then go on to make their reinvestments later on. (Rozeff and Kinney, 1976) Size Effect The Size Effect is the small firm’s tendency, which holds a small capital market, to outweigh and surpass the market of larger companies and rise as an underdog over the long term. (Banz, 1981) and (Reinganum, 1981) Weekend Effect This is a notable phenomenon wherein the stock returns are observed to be comparatively lower on Mondays as against those on the preceding Fridays. ( French, 1890).. Value Effect The value effect related to the nature of stocks that hold low cost, earnings ratio to outdo other alternative portfolios of stocks which have higher cost, earnings ratio. Empirical Evidences from Developing Countries Despite huge empirical studies conducted in order to test and validate the Efficient Market Hypothesis in developed countries which witness a flourishing financial market, the pertinent studies on weak efficiency markets are limited in countries like Africa. Most developing and underdeveloped countries suffer a setback due to the problem of thin trading (Mlambo and Biekpe, 2005). Fisher (1966) who first identified this bias due to thin trading on his observation on correlation of return index, stated that the security’s price that are recorded are not similar to their respective underlying values based on theory as when a share trade fails, the recorded price remains the closing price as per the last share trade. It is also stressed that reasons like transactional costs, delay in operations and illiquidity of the market are crucial in determining a concrete statistical evaluation of the study. Bibliography Cohen, W. W., 1996. Learning trees and rules with set valued features. s.l.:s.n.vol1. Fama, E., 1970. Efficient Capital markets: A review of theory and empirical work. 1ed. s.l,American Economic Review. Fisher, R. A., 1966. The design of experiments. 8ed. New York: Hafner publishing. Mikhail, M. W. R., 2004. Do security analysts exhibit persistent Differences in Stock picking ability. s.l.Journal of financial economics. Reiter, S. W. P. F., n.d. Scientific conversations in financial economics. Burlington: Ashgate publishing company.

Physics of Magnets :: physics science magnet

Magnets are one of the fundamental items in physics. This page is designed in order to provide a general overview of magnets and their uses as well as an in depth look into certain aspects of magnetism. We all know certain situations where magnets are used, hanging things on a refrigerator for example. But other applications are much more useful in our society. They are used in all kinds of speakers, and in many computer parts including hard drives and floppy drives ( for recording and reading purposes). Perhaps a more common use that goes unnoticed is the magnetic strip on credit and debit cards. These have a certain magnetic makeup, that is why you are to keep them away from other magnets. Magnets are also used in many motors, in such items like a dishwasher, DVD and VHS players, and a pager or cell phone vibrator. Magnets are all dipoles, that is they all have both a north and a south pole. No known magnetic monopoles exist. Looking at magnets from a basic point of view, opposites attract and similars repel. Magnetic field lines always move from the north pole to the south pole, we will discuss this later. Some of the major contributors to magnets are men like Hans Christian Oersted, James Clark Maxwell, William Scoresby, Michael Faraday and Joseph Henry. Hans Christian Oersted experiment with a wire carrying a current and a compass led to much of what we know about Magnetic Fields. James Clark Maxwell discovered relationships between electricity and magnetism many of which are used in the Electromagnetic Theory. More information on the relationship between magnets and electricity can be found here. William Scoresby used the Earth's magnetic fields to produce powerful magnets. Michael Faraday and Joseph Henry are reported to have simultaneously discovered electromagnetic induction, which is the effect whereby the relative motion of a magnet and an electric coil produced a current. There are three types of magnets. Permanent, temporary, and electromagnets. Permanent magnets are the most common ones. Once they are magnetized they stay so (although they can lose much of their magnetic force). They can be metals found in nature. Temporary magnets hold the properties of a magnet while in a magnetic field, but lost these properties once the field goes away. An example of this would be a paper clip that is charged and can act like a magnet for a short while. Electromagnets are wires wrapped around a metal center(usually iron).

The Other Caste :: Essays Papers

The Other Caste For some professions the need for standardized higher education is obvious. We wouldn't want our doctors to have learned their craft by simply reading books and practicing on patients in their kitchens. Neither would we feel comfortable crossing a bridge or inhabiting a building designed by someone with a passionate interest in architectural engineering but who had not been subjected to rigorous testing of his or her own abilities. There are many professions, however, for which the unconsidered demand for a degree is unnecessary and creates an artificial class distinction. More importantly, the most qualified people for the job are often not even considered. My mother greatly influenced my views on this subject. She dropped out of high school when she was a freshman but she personified the self-motivated pursuit of knowledge. When she wanted to learn something, she read everything she could find on the subject. She then put her newfound knowledge to practical application until it because a new skill. Her library contained books on subjects as varied as horticulture, philosophy, stonemasonry, interior design, and architecture. She knew the Latin name of every plant in her extensive gardens. She knew more about heath and nutrition on a budget than the dietician at the assisted care facility where she worked, earning just over minimum wage. She eventually did get her GED but because she didn't have a degree in any of her areas of expertise she was poorly paid and sometimes perceived as uneducated. I saw this same prejudice all the years I worked for the Forest Service. They employ people with degrees and people without. Degree holders have the opportunity to advance professionally and become permanent employees. Those with no degrees are consistently paid lower wages and kept in a temporary status though they often do the same work as the permanent employees and return to work year after year. My Forest Service job required three things: being able to hike all day, not getting lost in the woods, and an appreciation that my repetitious acts were insuring future forests. A college degree was irreverent but I often had to train people with no aptitude or knowledge of the forest and watch them move ahead of me professionally because they had the degree. In Mark Salzman's book, Lost in Place most of the learning he writes about took place outside or even in spite of his formal schooling. The Other Caste :: Essays Papers The Other Caste For some professions the need for standardized higher education is obvious. We wouldn't want our doctors to have learned their craft by simply reading books and practicing on patients in their kitchens. Neither would we feel comfortable crossing a bridge or inhabiting a building designed by someone with a passionate interest in architectural engineering but who had not been subjected to rigorous testing of his or her own abilities. There are many professions, however, for which the unconsidered demand for a degree is unnecessary and creates an artificial class distinction. More importantly, the most qualified people for the job are often not even considered. My mother greatly influenced my views on this subject. She dropped out of high school when she was a freshman but she personified the self-motivated pursuit of knowledge. When she wanted to learn something, she read everything she could find on the subject. She then put her newfound knowledge to practical application until it because a new skill. Her library contained books on subjects as varied as horticulture, philosophy, stonemasonry, interior design, and architecture. She knew the Latin name of every plant in her extensive gardens. She knew more about heath and nutrition on a budget than the dietician at the assisted care facility where she worked, earning just over minimum wage. She eventually did get her GED but because she didn't have a degree in any of her areas of expertise she was poorly paid and sometimes perceived as uneducated. I saw this same prejudice all the years I worked for the Forest Service. They employ people with degrees and people without. Degree holders have the opportunity to advance professionally and become permanent employees. Those with no degrees are consistently paid lower wages and kept in a temporary status though they often do the same work as the permanent employees and return to work year after year. My Forest Service job required three things: being able to hike all day, not getting lost in the woods, and an appreciation that my repetitious acts were insuring future forests. A college degree was irreverent but I often had to train people with no aptitude or knowledge of the forest and watch them move ahead of me professionally because they had the degree. In Mark Salzman's book, Lost in Place most of the learning he writes about took place outside or even in spite of his formal schooling.

Police Report

Police Report Tomas Gonzalez, University of Phoenix CJA/304 February 26, 2013 Oscar N. Ruiz Police Report There are various types of communication used through the criminal justice process, considering the witness, prosecution, judge, and defense they all have their own element of communication to get their message across effectively and to prove their point. Communication for Prosecution and Defense The type of communication used by the prosecution or defense is typically more formal than informal and consists mainly of verbal communication.Non-verbal communication becomes more prevalent when arguing points in front of a jury. The prosecution may offer a deal or plea bargain to the defense in an effort to avoid the expense and time involved with a trial. If a deal is not offered or reached, it is likely that the case will go to trial. At trial, the judge governs the communication by either the prosecution or the defense. Each party may object to something said by the other and the j udge will rule on if the information is acceptable. The two parties will argue their case to the jury and in doing say may make use of non-verbal communication to try and sway the jury.I like to view it as the difference between an actor acting as though they have tripped (verbal communication) and someone such as Jerry Lewis or Jim Carey using their physical humor to exaggerate or enhance the trip (non-verbal communication). Communication for the Witness and Judge The Judge uses both oral and written forms of communication, written forms usually go to the juries which include instructional sheets on how to be a proper juror and written paper work between both prosecution and defense attorney which can be anything from a warrant to a bail amount.A judge also listens to the oral statements during the case to ensure the case is handled proper and asks questions or controls the prosecution or defense when needed. A judge may also give instructions to the jury during the case, such as a cknowledging a piece of evidence or dismissing one, or dismissing a statement that may contaminate the case and jury. The judge may also hold a person in contempt for acting out in a courtroom or delaying the case, the judge will also make opening and closing statements addressing all those in the courtroom.The Witness will be using oral forms of communication. A witness is a person that has knowledge of the case they are involved in. Their testimony can either help or hurt a defendant. Both the prosecution and defense have witnesses. Written and oral communications are used within the courtroom in the Minnesota v. Riff case. In this case the prosecution has many witnesses that have information implementing Riff for the crime. Once the prosecution asks their questions the defense then has their turn.The defense attorney asks the witnesses questions in regards to what they said when the prosecution asked them questions and they also ask the witnesses their own questions. The defense attorney tries to pick apart the witnesses stories to help his client. The witnesses for the defense team usually tell a different story from the prosecution witnesses. The prosecution then has their time to cross examine. The written communications that are usually presented are the statements that are gathered at the time of the incident.When witnesses are first questioned at the scene they give information such as; the time of the incident, exact details of what happened, and where it happened. Police Report S-3839410 BURGLARY ASSIGNMENT/ARRIVAL At 00:30, Officer Terry Schield was dispatched to investigate a burglary call at Marquette’s Market, which is on the corner of Main Street and First Street in Midtown, Minnesota. INVESTIGATION Officer Terry Schield began his investigation of the burglary and discovered the following: The rear door lock of Marquette’s Market had been smashed open with a heavy blunt object.The cash register drawer had been similarly smashed op en and was empty except for $7. 83 in coin and two checks (one for $10. 00 and the second for $5. 80) In the alley next to the store, Officer Terry Schield found a heavy hammer with fingerprints wiped clean. COMPLAINTANT’S STATEMENT Speedy Marquette the storeowner said that $910. 00 had allegedly been taken from the cash drawer of the register. The money had been placed in a tan cash bag labeled â€Å"Midtown State Bank†. The alleged burglary would have had to occur between 00:00 and 00:25. In the $910. 0 was a Canadian five-dollar bill. WITNESS’S STATEMENT Outside of the Marquette Market Officer Terry Schield found Soapy Waters, the janitor at Mickey’s Diner and Otis Ripple, the baker at Midtown Bakery. Mr. Waters stated that he had seen Ronnie Riff in the area at about 00:20. That Riff had been carrying a tan moneybag and had dropped two dollars from the bag. Riff was wearing blue jeans and a blue band jacket. Mr. Ripple the nightshift baker at Midtown Bakery stated that around 00:15 he had seen someone exit the market by the rear door.The person threw something into the side alley east of the store. Officer Terry Schield took Mr. Ripple to the location and Mr. Ripple found the hammer. When Officer Terry Schield asked to identify who was at the rear door of Marquette Market Mr. Ripple refused to identify the person he saw. Rusty Fender owner of Rusty’s Auto Body had to close his shop at 00:30 because he misplaced his hammer. He stated that at 00:00 he had seen Riff behind the Fenders Body Shop. Mr. Fender identified the hammer found in the side alley east of market as his.Melvin Strongarm stated he played poker with Riff the night of the alleged burglary and stated that Riff won $200. 00 that night. At 00:25, Betty Biddy nurse at Midtown Memorial Hospital and neighbor of Ronnie Riff stated she saw Riff toss away a tan bag. She stated the bag was labeled â€Å"Midtown State Bank. † The bag has not yet been found. C. S harp owner of Sharp’s Music Store stated Ronnie had purchased a guitar for $875. 00 from Sharp’s Music city. Riff paid cash and tried to include a Canadian five-dollar bill in the payment.Guido Concertino owner of the Midtown Dance Magic stated Riff practiced on the guitar worth $900. 00 at the â€Å"Midtown Dance Magic†. References: Rights of the Accused Minnesota v. Ronald Rif: A Criminal Mock Trial. (n. d. ). Retrieved from http://sharepdf. net/view/59954/minnesota-v-ronald-riff-a-criminal-mock-trial Wallace, H. & Roberson, C. (2009). Written and interpersonal communication: Methods for law enforcement (4th ed. ). Upper Saddle River, NJ: Pearson Prentice Hall.

Music’s power over the universe Essay

Throughout generations, freedom of expression has found its way to be the most convenient, and sometimes effective, way of people to convey their thoughts. Art has been a strong medium for people to say what they really feel, aside from words. With this premise, it is of no doubt that music as well has been a powerful tool over one’s mind and body. Music evolved on how generations changed through the years. More often than not, it has been a symbol of different ages, showing the rest on what they believe in. It has also been a catalyst of changes, whether to a large political scale or just a personal dilemma. Some people also consider music as a point of inspiration, as Plato quoted, â€Å"Music can instill self control among the young†¦Ã¢â‚¬ . But this is not always the case; music can also be a point of destruction to some. In essence, as music fits every generation that lives, it has become a human diary. It is a reminder of our past experience, whether success or failure. It cultivated our thoughts and disposition in life and continues to assume this role even in the future. Even history books acknowledge the lasting existing of this form of art. It has its own way of controlling our universe. Why such power is attributed to music? One thing to music is its versatility. Basically, it is hard to find a human being not being affected by music. Many people make money out of it, as well as many people spend money for it. It has served as a ladder to iconic artists through the years and even to some who almost played god. But music also served the hearts of those downtrodden, as their shield in time of life trials. Whatever ways music was used, its primary goal is to elate people to their own satisfaction or â€Å"happiness†. In his book, Psychology of Music, Carl Seashore shows us that music can actually govern a human behavior, intelligence, pain tolerance and health. Even science acknowledges the power of music to heal and to promote health. Horace Mann supports this thought in the 19th century. It can both affect one’s biological and its vitality (Morgan, 2008). Much social researches have also been devoted on how music represents most of the society’s perception from day-to-day life. These evidences show that music in one way or another control the being of the universe. People breathe life into this universe, and music gives people the reason for living. In much ways, music has been a long-standing way to comprehend the success and perils of humanity. Its control can be felt on how it influences the personalities of most people. However, this must not limit our big perception to music. In one way or another, even if it gives meaning to the human spirit, our feelings and behaviors are still governed by life circumstances. Pure human experiences are still the bases of music. Diserens and Fine explained that we tend to think music powerful because it jives to what we think and what we have experienced before. We find it powerful because it has puts words to our minds on feelings that we cannot explain. However, on the standpoint the music’s power can be a controlling force to the universe, this can be true. Music has gave more meaning to human existence, gave life to the strong feelings and ideas that are also brought about the human mind. Its existence from the earliest generations to the present shows us that people permit music to be part of their lives, to be their other speaking voice. Whether in spiritual or earthly form, music has intensified the reasons why this universe that we know must exist. References Diserens, C. M. , & Fine, H. (2008). A Psychology Of Music: The Influence Of Music On Behavior. New York: Kessinger Publishing, Llc. Morgan, J. E. (2008). Horace Mann: His Ideas And Ideals. New York: Kessinger Publishing, Llc. Plato. (2005). Plato Complete Works. Indianapolis, IN: Hackett Publishing Company. Seashore, C. E. (2008). Psychology Of Music. United States of America: Spencer Press.