Comparing Mozambique and South Africas Demographics

Comparing Mozambique and South Africas Demographics Period Live births per year Deaths per year Natural Increase per year Crude Birth Rate (per 1,000 per year) Crude Death Rate (per 1,000 per year) Natural Increase (per 1,000 per year) Total Fertility Rate (over avge womans life) Infant Mortality Rate (per 100,000 live births) 1950–1955 629 000 295 000 + 334 000 43.3 20.3 + 23.0 6.50 96 1955–1960 697 000 297 000 + 400 000 42.5 18.1 + 24.4 6.50 91 1960–1965 774 000 310 000 + 464 000 41.6 16.7 + 25.0 6.30 87 1965–1970 808 000 312 000 + 496 000 38.2 14.7 + 23.5 5.70 84 1970–1975 909 000 317 000 + 592 000 37.7 13.1 + 24.6 5.47 77 1975–1980 980 000 319 000 + 661 000 35.8 11.7 + 24.1 5.00 71 1980–1985 1 052 000 307 000 + 745 000 33.9 9.9 + 24.0 4.56 61 1985–1990 1 086 000 299 000 + 787 000 31.1 8.6 + 22.5 4.00 53 1990–1995 1 073 000 332 000 + 742 000 27.5 8.5 + 19.0 3.34 51 1995–2000 1 082 000 450 000 + 632 000 25.1 10.4 + 14.7 2.95 56 2000–2005 1 111 000 645 000 + 466 000 24.0 13.9 + 10.1 2.80 59 2005–2010 1 074 000 746 000 + 328 000 21.9 15.2 + 6.7 2.55 55 In the table we can see the increase in population per year on average for 5 year spans Mozambique Period Live births per year Deaths per year Natural change per year CBR* CDR* NC* TFR* IMR* 1950-1955 331 000 220 000 111 000 49.4 32.8 16.5 6.60 220 1955-1960 359 000 219 000 140 000 49.1 30.0 19.1 6.60 201 1960-1965 392 000 222 000 170 000 48.6 27.5 21.1 6.60 185 1965-1970 430 000 230 000 201 000 48.0 25.6 22.4 6.60 172 1970-1975 474 000 236 000 238 000 47.2 23.5 23.7 6.58 158 1975-1980 534 000 247 000 288 000 46.9 21.7 25.3 6.53 146 1980-1985 584 000 272 000 313 000 45.9 21.3 24.5 6.44 143 1985-1990 586 000 283 000 302 000 43.6 21.1 22.5 6.33 143 1990-1995 640 000 293 000 347 000 43.4 19.9 23.6 6.12 134 1995-2000 739 000 301 000 438 000 43.3 17.6 25.7 5.85 115 2000-2005 844 000 326 000 518 000 43.3 16.7 26.6 5.52 99 2005-2010 869 000 341 000 528 000 39.4 15.4 23.9 5.11 88 *CBR = crude birth rate (per 1000); CDR = crude death rate (per 1000); NC = natural change (per 1000); IMR = infant mortality rate per 1000 births; TFR = total fertility rate (number of children per woman) Mozambique Loss of natural habitat About 80% of Mozambique’s population live in rural areas and depend on wood for cooking and for heating of water for domestic use, space heating and drying of foodstuffs.1This reliance on trees could spell disaster should population levels rise. Mangroves are being removed and converted into rice farms and salt pans, aquaculture and housing. Further offshore, corals are subjected to destructive fishing practices (e.g. use of fine mesh nets and dynamite). Â © WWF Illegal and unsustainable wildlife use, and human wildlife conflict In Mozambique like elsewhere in Africa and Asia, habitat loss is causing humans and wildlife to share increasingly smaller living spaces. Both sides are losing in the conflicts that ensue, such as in and around the Delta of the Zambezi River. There, crocodiles and hippos are coming face to face with humans increasingly often, while poaching and other illegal activities put species in jeopardy. In some places, such as Quirimbas National Park, there are concerns that current levels of resource use – e.g. sand oysters may not be sustainable, and are already leading to diminishing harvests of fish and other resources. For local people, this means reduced incomes and increased poverty in the long run. Pollution Off Mozambique’s coast, tankers carrying crude oil from the Arabian Gulf have resulted in contamination of the sea from spills and discharge of polluted ballast waters. In urban settings, rural sewage treatment is inadequate, exposing people to potential outbreaks of disease. Agriculture Poor farming practices and deforestation contribute to sedimentation of rivers that run to the sea, degrading seagrasses and coral reefs South Africa Water is perhaps South Africas most critical resource one of low abundance and growing needs. Tie that with problems of increased land use and population growth and you have several big reasons for concern. Lack of water South Africas freshwater supply is almost stretched to its limit. Less than 10% of South Africa’s rainfall is available as surface water, one of the lowest conversion ratios in the world. The country’s groundwater resources are equally limited. Despite regulations of river waters, in many catchments the need for water exceeds the supply and quality is often below standards. Given the projected growth in population and economic development, South Africa faces tough times in meeting water demands in the decades ahead. The shortfall in freshwater is tied to growing demands, but also to other issues such as loss of natural habitat and potentially climate change. Â © WWF-Canon / John E. NEWBY Destruction of natural habitats The land of the fine-leaved plants, the South African Fynbos, is one of the world’s most impressive botanical kingdoms a mind-boggling variety of plants that is richer than any other comparable sized area in Africa. An estimated 8,500 species of vascular plants, of which 70% are endemic (they are found nowhere else in the world), are reported here. But because the area has been heavily settled for several centuries, large swathes of natural vegetation, particularly in the lowlands, have been cleared for agriculture and urban development. Similar problems face the Namib-Karoo-Kaokeveld desert, a very distinctive and floristically rich ecoregion with highly diverse endemic plant communities. Here, poor land management, conversion of marginal lands for cultivation, dam construction, mining, and illegal extraction of selected succulents for black market trade, pose a suite of threats. Â © WWF Overfishing Along the West Coast of South Africa, there is persistent overharvesting of many commercially valuable species and products such as pilchard, anchovy and rock lobster. Further at sea, some fish stocks have been over-harvested, and several species face local extinction. These dangerous trends follow improvements of fishing methods, increase in fishing effort and the establishment of fishing industries. Introduction of exotic species South Africas natural habitats are being colonized by alien species at great rates. Introduced species, particularly North American gamefishes such as largemouth bass and smallmouth bass, are pushing out indigenous species and threaten to lead some of them to extinction. Pollution A high level of traffic associated with crude oil transport from the Arabian Gulf has resulted in contamination from tankers spills and discharge of polluted ballast waters. Reference List http://en.wikipedia.org/wiki/Demographics_of_South_Africa http://en.wikipedia.org/wiki/Demographics_of_Mozambique http://wwf.panda.org/who_we_are/wwf_offices/mozambique/environmental_problems_in_mozambique/ http://wwf.panda.org/who_we_are/wwf_offices/south_africa/environmental_problems__in_south_africa/

How eukaryotic organisms came into existence

How eukaryotic organisms came into existence Living systems (LST) are self-organising systems that interact with the environment. Flows of information, energy and matter maintain these systems in order and balance. Miller (1978) defines LST as a set of related definitions, assumptions, and propositions which deal with reality as an integrated hierarchy of organizations of matter and energy. LST is as an excellent and powerful tool in aiding an individual to understand and interpret reality, especially its living part. However when it comes to intervention, design and change, the LST gives little or no guidance concerning what to do and what actions and approaches to select. So although the LST provides extensive amount of knowledge in regards to life and living systems nevertheless it mentions nothing to do with that knowledge. Multicellular organisms are thought to have evolved at least 1.7 billion years ago; organisms consisted of many or more than one cell which have interdependent cells (differentiated cells) that perform s pecialised functions in an organism. Examples of multicellular organisms are humans, plants and animals which can be seen by the naked eye. Cells are separated into two main classes primarily by whether they contain a nucleus. Prokaryotic cells (bacteria) lack a nuclear envelope whereas eukaryotic cells have a nucleus in which genetic material is split from the cytoplasm. In general prokaryotic cells are smaller and simpler than eukaryotic cells. In addition to the absence of a nucleus prokaryotic genomes are less complex and they do not contain organelles in its cytoplasm or cytoskeleton. In spite of all these differences, the same basic molecular mechanisms manage the lives of both prokaryotes and eukaryotes which indicate that all present-day cells have descended or evolved over time. The endosymbiotic theory explains and provides evidence of cell evolution which claims that bacteria cells evolved to animal and plant cells by phagocytosis through a process called endosymbiosis. [endo=inside; sym=together; bio=life]. Symbiosis describes the close relationship between two or more organisms of different species, where they are not always benefiting each member. The relationship of algae and fungi in lichens and of bacteria living in the intestines or on the skin of animals are forms of symbiosis. Some scientists believe that many multicellular organisms evolved from symbiotic relationships between unicellular ones and that the DNA-containing organelles within certain eukaryotic cells (such as mitochondria and chloroplasts) are the product of symbiotic relationships in which the participants became interdependent. A significant step in the breakthrough of the evolution of eukaryotic cells was the knowledge gained of membrane-enclosed sub-cellular organelles, allowing the progress of the complexity characteristic of these cells. The organelles are thought to have been acquired as a result of the relationship of prokaryotic cells eukaryotes. Studies show that the theory of endosymbiosis shows evidence that origin of mitochondria and chloroplasts which are organelles of eukaryotic cells are thought to have evolved from bacteria living in larger cells. Both chloroplast and mitochondria are similar to bacteria in size and like bacteria they reproduce by a process called binary fission. The American microbiologist Lynn Margulis formulated the endosymbiosis theory that mitochondria and chloroplasts evolved from prokaryotic bacteria. Although now an acknowledged theory and biologist, she and her theory were rejected by many biologists for a number of years, her breakthrough came due to her persistence, and vast amounts of research and data gathered by her and many other biologists over the last 30 years. The discovery of mitochondria having similarities in structures played a key role in making her theory widely accepted by the science world. According to her hypothesis these mitochondria and chloroplasts originated as separate prokaryotic organisms that were taken inside the cell as endosymbionts. Mitochondria evolved from aerobic bacteria (proteobacteria) and chloroplasts from photosynthetic bacteria (cyanobacteria). The contraction of aerobic bacteria would have provided an anaerobic cell with the ability to carry out oxidative metabolism. The acquisition of photosynthetic bacteria would have provided the nutritional freedom given by the ability to perform photosynthesis. The Endosymbiotic theory proposes that mitochondria and chloroplasts were once prokaryotic cells, living inside larger host cells. The prokaryotes were known to have been ingested in the larger cell but somehow escaping digestion. It is not known for the reason why they were ingested and interned but purely for advantageous reasons to the host cells which ingested them. The endosymbionts provided crucial nutrients to the host cell by chloroplasts and the mitochondria helping to have exploit oxygen from extracting energy. The endosymbionts were protected with in a safe environment inside the host cell which they lived for many millions of years. Charles Darwin (1809-1882) theory of natural selection which we know today from the famous quote of Survival of the fittest supports the endosymbiosis theory. Early eukaryotic cells gained an advantage over their neighbours, once mitochondria (high energy source), were ingested in larger host cells. Mitochondria and their hosts increasingly were relying more and more on each other to survive. Eventually, neither could succeed alone but as a force united they produced millions of descendents, establishing a whole new domain of life. Both organelles are surrounded by two or more membranes where the innermost of the membranes show differences in composition from other membranes of the cell. The composition is like that of a prokaryotes cell membrane, while the outer membrane may have formed from food vacuoles as the host cell devoured the prokaryote. The inner membrane of these mitochondria and chloroplasts contains enzymes and transport systems, showing more similarities to that of prokaryotes. The inner membrane of mitochondria has a larger surface area which arose due to the inner layer being folded into what is called cristae. This is turn means that there is more area for the respiratory reaction occur in the organelle. Mitochondria can be found in they cytoplasm of eukaryotic cells similar to shape and size to chloroplasts. The primary function of mitochondria is the production of ATP which is an energy source vital for the proper functioning and survival of the organelle. The outer membrane is a relatively simple phospholipid bilayer, ions, nutrients; ATP, ADP, etc. can pass through with ease. The matrix is where diffusion happens, this is a very slow process due to the folds of the cristae, the matrix is close to the inner membrane, resulting in the diffusion rate to the inner membrane complexes and transport proteins within a short time. Chloroplasts are only found in plants, with a similar function to that of mitochondria, where they both provide energy in the cell. There appearance is that of flattened discs, using a process called photosynthesis to extract carbon dioxide from the surrounding and converting and releasing as oxygen to form glucose, which is stored a starch a food source. Chloroplasts are complex organelles which differ to those of mitochondria, as chloroplasts have there a double membrane called the chloroplast envelope and membranes of thylakoids inside. Chlorophyll is vital and is found in thylakoids membranes in the chloroplast, it is a coloured pigment which converts light energy for photosynthesis. Thylakoids are fluid-filled sacs stacked up in the chloroplast to form structures called grana. Grana which are flat thin pieces of thylakoids membrane are linked together by lamellae. Mitochondria and chloroplasts both have their own DNA molecules. Their DNAs are not duplicates of nuclear DNA but their DNA is exclusive and vital to the mitochondrion or the chloroplast. Genes are carried by mitochondrial DNA; these genes are replicated each time the organelle divides, and the genes they encode are transcribed within the organelle and translated on the organelle ribosomes. Thus mitochondria and chloroplasts contain there own genetic systems, which are distinct and dissimilar to the genetic material of nucleus. Unlike the DNA in the nucleus, mitochondrial and chloroplast DNAs are exposed and circular similar to that of a prokaryotic cells DNA. Genes of the nucleus can not duplicate these. Each organelle has its own ribosomes; these ribosomes are different to those found in the cytoplasm of a cell. The proteins coded for by the mitochondrial genes are produced by mitochondrial ribosomes, and those coded for by the chloroplast genes are produced by chloroplast ribosomes. These ribosomes are more closely related to those of bacteria that those encoded by the nuclear genomes of eukaryotes. Bacteria show more similarities to these organelles as size is also a similarity. To conclude on the question on discuss how eukaryotic organisms came into existence, I believe that the evidence and information regarding the theory of endosymbiosis is reliable but not 100% valid as there are many counter arguments to Lynn Marguliss theory. Numerous studies of DNA show that in fact mitochondria and chloroplasts do not show many similarities that of prokaryotes. For instance neither mitochondria nor chloroplasts can survive in oxygen or outside of the cell indicating that the cell would have lost many vital genes on the way. However both mitochondria and chloroplast are similar in size to prokaryotes, they lack a normal nucleus found in eukaryotic cells but have circular DNA which lacks histones similar to that of eukaryotic cells. Also symbiosis supports the fact that the host cells became dependant on the organelles which it ingested and the lack of DNA within the nucleus and the organelles having their own DNA explains that they would have been independent cells. Both organelles reproduce by division in a process called binary fission, prokaryotic cells also reproduce the same way. On the other hand there are many questions still to be answered. How did the cell manage to reproduce in such a tight space and inside another cell? How did the DNA of the ingested cell pass into the hosts DNA, as the DNA should have been blocked as the host would have responded by degrading the foreign DNA and detect it as a virus. However this can be counter argued against as similarities in structure of both organelles can prokaryotic cells can be explained by their functions and processes and not through their structures. In photosynthesis both chloroplast and cyanobacteria convert carbon dioxide and water with light energy into glucose and oxygen. Nevertheless there is more evidence to sustain the endosymbiotic hypothesis; the evidence outweighs the questions and arguments against. Lynn Margulis theory of endosymbiosis is widely used and accepted by the scientists and science world of today and the more valid and important ideas of the origin and evolution of the cell are of creationists. Finally I agree with the argument that some eukaryotic cells have derived and evolved from prokaryotes and the theory of endosymbiosis seems valid and vital in the way we understand evolution of the cell today. (http://www.newciv.org/ISSS_Primer/asem14ep.html). (http://www.thefreedictionary.com/symbiosis) (http://dictionary.sensagent.com/multicellular+organism/en-en/) http://evolution.berkeley.edu/evolibrary/article/_0_0/endosymbiosis_06 http://www.ruf.rice.edu/~bioslabs/studies/mitochondria/mitorigin.html http://users.rcn.com/jkimball.ma.ultranet/BiologyPages/E/Endosymbiosis.html http://evolution.berkeley.edu/evolibrary/home.php

Abortion :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Every year in the United States 25% of all pregnancies results in an abortion, this adds up to over a million abortions a year. This clearly illustrates that there is problem of over aborting innocent fetuses in our society. I am a firm believer that abortion should be restricted, to minimize its use. I believe that our current society is using abortion as a form of contraceptive. I believe abortion does have its place, and should not be banned altogether. However I do believe when it is used form of birth control that it is being used incorrectly.   Ã‚  Ã‚  Ã‚  Ã‚  When examining the issue of abortion there are many questions to consider. What if the mother wants the baby, and the father doesn’t? What if the father wants the baby and the mother doesn’t? What if the decision is made to abort the fetus in the first trimester as opposed to the second or third trimesters? What if the mother was impregnated by an act of rape? What if going on with the pregnancy could cause harm to mother? All of these questions raised are touchy issues. All of these questions bring up good points for both sides of this debate.   Ã‚  Ã‚  Ã‚  Ã‚  Many people who are â€Å"pro choice† claim that the mother has a right to privacy, and to deny them the decision to abort is going against this right. They believe that since this decision affects the women’s body, that this should be her private business. I really don’t like this argument. I believe that the right to privacy no longer exists when the decision effects more than the person involved in the decision. When a woman makes the decision to have an abortion it affects many people involved, rather than just the mother. The father is also greatly affected by this decision. The father should have equal say in this decision making process. In any case that the father wants to keep the child, the woman should not have the right to abort. This theory work both ways, if the mother wants to keep on with the pregnancy and the father wants to terminate it, by no means should the mother have to grant the father his wishes. I think John Stuart Mi ll’s harm principle supports my argument. Mill’s principle believes that a person has a right to do whatever they choose as long as they cause no harm, or the potential of harm to others.

Communication Essay -- Verbal and Non Verbal Communication

Today many people still lack the ability to communicate effectively with in interpersonal relationships. It is through cooperation and collaboration that effective communication occurs. By analyzing and studying the communication process we can improve our ability to communicate effectively between one another. To have a successful interpersonal relationship one must first interact with others, which is called interpersonal communication (Hybels and Weaver pg.156). Recognizing emotions in other is a very important first step to building a relationship. If you can’t feel what someone else is feeling then you can’t connect with them on a personal level and that can hinder your relationship process. Interpersonal communication is important because of the functions it achieves. Whenever we engage in communication with another person, we seek to gain information about them. We also give off information through a wide variety of verbal and non-verbal cues. Verbal communication has huge effects on many aspects of life, including interpersonal relationships. Speaking and telling our needs and wants verbally or non-verbally is a necessity for daily life. Verbal communication is organized by language; non-verbal communication is not. Most of us spend about 75 percent of our waking hours communicating our knowledge, thoughts, and ideas to others (Allis, 2002). However, most of us fail to realize that a great deal of our communication is of a non-verbal form as opposed to the oral and written forms. Non-verbal communication includes facial expressions, eye contact, tone of voice, body posture and motions, and positioning within groups. It may also include the way we wear our clothes or the silence we keep. In person-to-person com... ... We can do this by conflict resolution, which is negotiating to find a solution to the conflict (Hybels, 2007 pg202). Depending on how a conflict is resolved it can produce a positive or negative result. For example if two sisters are fight over a dress to wear on the weekend, they have two choices: one wear the dress and the other one does not, which leaves one sister unhappy (negative outcome) or neither of them wear it, so both are satisfied and neither of them are jealous of the other (positive outcome). It also helps to take a positive approach to conflict resolution, where discussion is considerate and non-confrontational, and the heart of the matter is on issues rather than on individuals. If this is done, then, as long as people listen carefully and explore facts, issues and possible solutions properly, conflict can often be resolved effectively.

Kaufmans Organizational Elements Model Essay -- Kaufman Models Essays

Kaufman's Organizational Elements Model Introduction Every organization, whether it is an educational setting or a business setting, has the same basic principle. Each shapes and molds different ideas and ingredients to produce a good or service to deliver to external clients in the community or society. The success of the organization depends on the client satisfaction and the usefulness of what was delivered (Quality Management Plus, 30). Roger Kaufman’s Organizational Elements Model distinguishes between the different elements that make up an organization’s work. Each organizational element relates to one another. They have a building block effect where each element depends on the one before it in order to exist. The "organizational efforts (inputs and processes) contribute to organizational results (products and outputs) and these contribute to societal consequences and payoffs (outcomes)" (Strategic Planning in Education, 23). What is the Organizational Elements Model? Roger Kaufman’s Organizational Elements Model (OEM) consists of five parts: inputs, processes, products, outputs, and outcomes. Every organization, whether it be an educational or business setting, is made up of these five elements. The OEM is a framework for organizations to relate organizational efforts, organizational results, and societal payoffs or consequences (Cost-Consequence Analysis, 90). The OEM may also be divided into two different levels. The first level shows "What Is" and the second level shows "What Should Be". Input Process Product Output Outcome What Is What Should Be SOURCE: Adopted from Kaufman 1992, 1995; Hinchcliff 1995 The OEM can help organizations identify what i... ... p22-26, Nov-Dec 1997. Kaufman, Roger and Watkins, Ryan. "Cost-Consequence Analysis." Human Resource Development Quarterly, v7 n1 p87-100, Spr 1996. Kaufman, Roger and Keller, John M. "Levels of Evaluation: Beyond Kirkpatrick." Human Resources Development Quarterly, v5 n4 p371-380, Win 1994. Kaufman, Roger. Strategic Planning Plus: An Organizational Guide. Sage Publications, Inc.: Newbury Park, California, 1992. Kaufman, Roger, and Mayer, Hanna, and Rojas, Alicia M. Needs Assessment: A User’s Guide. Educational Technology Publication: Englewood Cliffs, New Jersey, 1993. Kaufman, Roger and Zahn, Douglas. Quality Management Plus: The Continuous Improvement of Education. Corwin Press, Inc.: Newbury Park, California, 1993. Kaufman, Roger and Stone, Bruce. Planning for Organizational Success: A Practical Guide. John Wiley & Sons, Inc.: New York, 1983.

Homelessness in Ireland Essay

What is Homelessness The Housing Act 1988 defines a homeless person as somebody who has no reasonable accommodation to live in or lives in a hospital, institution or night shelter because of a lack of home. Human Dignity Issue Shelter is a basic human need, yet throughout the word there a people looking for a place to live with dignity. Being homeless is more than just not having a roof over your head – it usually means that a person’s security and belongings needs are also not met. You can become homeless for many different reasons. These could include: * Being evicted * Losing your job * Health problems * A disaster such as fire or flooding In 2009 there were up to 4,000 people reported to be homeless. 800 of them were children and two hundred of these children were under the age of 12. Abraham Maslow, an American psychologist, designed a pyramid to explain the basic needs required to protect human dignity. In this pyramid he not only names shelter as a basic human need but also names the need for security. Security needs include the need to be safe and protected when if homeless, is broken. To protect human dignity the local authorities have to take action. Duties of Local Authorities towards Homeless People While the 1988 Act does not impose a duty on housing authorities to provide housing to people who are homeless, it does clearly give responsibility to the local authorities to consider the needs of homeless people and expands their powers to respond to those needs. For example authorities may house homeless people from their own housing stock or through arrangement with a voluntary body. (Simon Community, St Vincent de Paul) The Act also enables the local authority to provide a homeless person with money to source accommodation in a non -governmental institution. In addition to the provisions relating to direct responses to people presenting as homeless, Section 10 of The Act enables local authorities to provide funding to voluntary bodies for the provision of emergency accommodation and long term housing for people who are homeless. The 1988 Act requires that local authorities carry out recurrent assessments of the number of people who are homeless in their administrative area, as part of their housing needs assessment. The Health Service Executive (HSE) has responsibility for the health and in-house care needs of homeless people. In terms of funding, this means that local authorities are responsible for the costs of providing accommodation while the HSE Areas will provide funding for homeless persons’ care and welfare needs, including in-house care. Making a Difference There are many charities and voluntary organisations towards homeless people in Ireland such as: * Simon Community * The Salvation Army * St Vincent de Paul * Sonas Housing * The Peter McVerry Trust One of the biggest in known charities is Focus Ireland. Focus Ireland is a non-profitable organisation made specifically to help homeless people. Ireland, though a relatively modern country has many people, even children ‘sleep rough’ every night and it is our responsibility to help them. References www.cpa.ie www.theirishcentral.com www.whycare.ie www.focusireland.ie www.citizensinformation.ie en.wikipedia.com

Tesco V Walmart

BA. Honours Business Management BUSINESS MATTERS Business Issues: Tesco v Walmart TABLE OF CONTENTS Page 1. Introduction 3 2. Business Issues in the Retail Sector 3 3. Financial Health 5 3. 1 Tesco 5 3. 2 Walmart 7 4. Cultural Style & Leadership 9 4. 1 Tesco 9 4. 2 Walmart 10 4. 3 Ethical & Environmental Issues 12 5. Conclusions 12 6. References 13 7. Bibliography 14 1. Introduction In 2009 the grocery market in the United Kingdom was worth 146. 3 billion pounds, an increase of 4. 8% on the previous year [see Figure 1].Groceries account for fifty-two pence of every pound in retail spending [Newbold, 2010, online]. Figure 1: UK Grocery Market Performance 1998 – 2009 Source: IGD Research 2009 This report looks at contemporary business issues in the grocery sector and then compares the financial health, leadership, cultural style, ethical initiatives and environmental values of two of the biggest business names in the industry – Tesco and Walmart. 2. Business Issue sin the Retail Sector At the expense of small, specialist shops, supermarkets increasingly manage the supply chain from farm to shelf.Technological improvements in stock control and checkout scanning, for example, have lowered costs and attracted customers. Loyalty card schemes provide these superstores with an insight into consumer preferences, enabling them to better match products with customers. To increase efficiency and maintain competitiveness, supermarket chains have consolidated, resulting in a fewer number of giant companies. Consequently, manufacturers have become increasingly dependent on a small number of market outlets, giving these retailers tremendous leverage to negotiate lower prices.There is also severe competition with discounters such as Lidl. To better manage household budgets during the present credit crunch more British shoppers are shopping at these discount stores. Competition from these discounters has led the big chains to develop new strategies. For exam ple, Tesco has recently launched its new Discount range, in an effort to combat the rise of these popular, super-cheap supermarkets. Shoppers are not just attracted by low prices. The super centre or hypermarket approach means that one-stop shopping has become a reality for shoppers.Shopping at one of these large stores, possibly two to three times a week, has become a recreational event not a chore. With most shopping now done in malls or online, the traditional high street, with its parking charges, and traffic problems has suffered. There is no much talk about the dead heart of the city. To counter this trend, convenience stores [under 3000 sq feet and â€Å"opened all hours†] are increasing dramatically on the high street [see Figure 2]. With an increasing range of products and improved layouts, convenience multiples such as Spar represent the fastest growing part of the grocery market, with sales increasing by 12. %. They currently comprise 20. 5% of the total United Kin gdom food and grocery market [Tesco, 2009, online]. Figure 2: UK Convenience Stores, 2009 Source: IGD Research 2009 The large multiples have responded strongly in this market sector (e. g. Tesco Express) and have taken over some existing chains and petrol station forecourts. 3. Financial Health of Tesco & Walmart 3. 1 Tesco Tesco is the United Kingdom’s premier supermarket chain. It employs 440000 staff and operates in thirteen countries [Tesco, 2009, online]. Presently, it has a commanding, and increasing, 30. % share of the non-convenience UK grocery market [Figure 3].Figure 3: UK Supermarket Share In the financial year 2008-9, despite the economic downturn, Tesco had record profits of more than ? 3 billion, 10% more than the previous year. Total revenue rose to ? 59. 4bn, taking sales to more than ? 1billion a week for the first time. Consequently, shares in Tesco rose by 5. 5% [I. S. , 2010, online]. Figure 4: Tesco’s Profit & Loss Account 2005-2009| Year E nded 28 February| 2009| 2008| 2007| 2006| 2005| ? millions| Turnover| 59377. 0| 47298. 0| 42641. 0| 39454. | 33866. 0| Operating Profit| 3206. 0| 2791. 0| 2673. 0| 2280. 0| 1952. 0| Net Interest| -362. 0| -63. 0| -126. 0| -127. 0| -132. 0| Profit Before Tax| 2954. 0| 2803. 0| 2653. 0| 2235. 0| 1894. 0| Profit After Tax| 2166. 0| 2130. 0| 1881. 0| 1586. 0| 1353. 0| * * Source: www. redmayne. co. uk Figure 5: Tesco’s Balance Sheet 2005-2009| Year Ended 28 February| 2009| 2008| 2007| 2006| 2005| ? millions| Intangible Assets| 4027. 0| 2336. 0| 2045. 0| 1525. 0| 1408. 0| Tangible Assets| 23152. 0| 19787. 0| 16976. 0| 15882. 0| 14521. 0| Fixed Investments| 321. 0| 309. | 322. 0| 480. 0| 423. 0|Total Fixed Assets| 32008. 0| 23864. 0| 20231. 0| 18644. 0| 16931. 0| Stocks| 2669. 0| 2430. 0| 1931. 0| 1464. 0| 1309. 0| Cash at Bank and in Hand| 3509. 0| 1788. 0| 1042. 0| 1325. 0| 1146. 0| Total Assets| 46053. 0| 30164. 0| 24807. 0| 22563. 0| 20155. 0| Total Liabilities| 33058. 0| 18262 . 0| 14236. 0| 13119. 0| 11501. 0| Net Assets| 12995. 0| 11902. 0| 10571. 0| 9444. 0| 8654. 0| Net Current Assets| n/a| n/a| n/a| n/a| n/a| Called Up Share Capital| 395. 0| 393. 0| 397. 0| 395. 0| 389. 0| Share Premium Account| 4638. 0| 4511. 0| 4376. | 3988. 0| 3704. 0| Other Reserves| 40. 0| 40. 0| 40. 0| 40. 0| 40. 0| Profit and Loss Account| 7865. 0| 6871. 0| 5693. 0| 4957. 0| 4470. 0| Shareholders Funds| 12938. 0| 11815. 0| 10506. 0| 9380. 0| 8603. 0| Source: www. redmayne. co. uk A balance sheet lists all a business' assets and liabilities, giving a â€Å"snapshot† of the its overall money value at a given time. The Tesco balance sheet [Figure 5] indicates that it is very healthy financially. It shows that net assets [total assets – total liabilities] have increased tremendously from ? 8654 million to ? 12,995 million.The profit and loss account [net profit, or loss, made] has almost doubled in the five years shown from ? 4470 million to ? 7865 million. Figure 6: Key Figures for Tesco 2005-2009| Year Ended 28 February| 2009| 2008| 2007| 2006| 2005| Earnings Per Share Growth (%)| 6| 22| 10| 16| n/a| Total Dividend (p)| 11. 96| 10. 90| 9. 64| 8. 63| 7. 56| Operating Margin (%)| 6| 6| 6| 6| 6| ROCE (%)| 13| 17| 19| 20| 18| Dividend Yield| 3. 60| 2. 70| 2. 20| 2. 60| 2. 50| Price / Earnings Ratio| 11. 40| 14. 60| 19. 90| 16. 50| 17. 60| Dividend Per Share Growth (%)| 10| 13| 12| 14| 11| Source: www. redmayne. o. uk Return on capital employed (ROCE) is a key measure of an industry's financial health and performance [Atrill and Melaney, 2004]. It is calculated as the earnings before interest and taxes (EBIT) divided by the difference between total assets and current liabilities.It shows whether an organisation is obtaining a decent profit for the amount of capital it owns. The higher the ratio, the better the company is. Tesco’ ROCE is down slightly but a return of 13% is still much better than any bank account interest rate and shows a ve ry effective investment of capital employed [Figure 6]. . 2 Walmart The USA based Walmart superstore chain is the biggest company in the world. Almost fifty years on since Sam Walton opened his first store, 90% of the US population is within fifteen miles of a Walmart [Luce, 2005]. With over 1. 3 million employees and sales at a quarter of a trillion, it is the biggest retailing success in history. With the goal of low prices, the average customer saves 15% shopping at Wal-Mart [Walmart, 2010, online]. Despite stiff competition, Wal-Mart's annual income from 1996 to 2006 increased steadily, as shown below in Figure 7.Figure 7: Walmart’s 10 Year Income For the fiscal year ending January 31, 2009, Wal-Mart brought in $405. 6 billion of total revenue [sales]. The income that the firm made after subtracting costs and expenses from the total revenue [net income] was $13. 6 billion [Foley, 2009, online]. Figure 8: Walmart’s Annual Report 2008-2009| | 01/01/2010| 01/01/2009| Revenue| $m| 405,607| 408,214| Pre-tax Profit| $m| 20,898| 22,579| EPS| $m| 3. 39| 3. 70| Dividend| $m| 0. 95| 1. 09| ROCE| 21. 00% Source: www. walmart. com| | | | |Even higher than Tesco, Walmart’s ROCE index of 21%, is indication of its great financial success. Walmart’s share price was hit by the recent economic recession but, as Figure 9 shows, has started to rise again. Figure 9: Walmart’s Share Price 2007-2010 Source: www. walmart. com In 1999 Asda was acquired by Walmart and in 2006 the company expanded even further internationally. They opened 537 new international stores, employing over 50,000 new employees. International revenues soared by 17. 4% to $7. 87bn, helped by store openings in markets such as Canada and Scotland [I. G. D. 2010, online]. Walmart’s market share continues to rise in the United States, but also in the United Kingdom and Mexico. In the midst of a global depression it is obvious that everyday low prices are a big consumer d raw. 4. Cultural Style ;amp; Leadership 4. 1 TESCO As a performance-driven organization, Tesco’s mission statement is â€Å"to create value for customers to earn their lifetime loyalty. † They are determined to strike up a close relationship with its customers. Consequently, Tesco endeavors to provide better, more innovative products and services than any of its competitors.It believes if you treat customers well and operate efficiently then shareholders’ will inevitably benefit by growth in sales, profits and returns [Enfield, 2009, online]. The customer/staff focus of Tesco is reflected in the far-sighted leadership of Terry Leahy, Chief Executive Officer. Representing a new era, Leahy adapted a more participative style of leadership, where employees are given a voice in the decision-making process. Terry Leahy, Tesco CEO The organizational structure is now simple and flat with fewer levels in the management hierarchy.There are fewer formal rules, more decentr alization and shared decision making throughout the organisation. Leadership roles are delegated to best informed and capable individuals in the organization to ensure that the company operates effectively. As values and beliefs develop, so does commitment to the organization and this is much more productive than a formal hierarchy (Miner 2002). The organic structure suits the pressure to be innovative – given its flexibility it can respond to environmental variations quickly (Salaman 2001, p. 106). 4. 2 WALMARTMuch of Wal-Mart's success is due to a strong and all-encompassing, corporate culture, originally developed by Sam Walton. At the core of this culture is a relentless push for the lowest prices. This penny-pinching is achieved using state of the art technology and by its â€Å"plus one† policy, which demands that suppliers lower their prices or increase the quality on every item every year. In â€Å"The Wal-Mart Effect,† Charles Fishman shows how the pric e of a four-pack of General Electric light bulbs decreased from $2. 19 to 88 cents within five years [Fishman, 2006].Because of this culture, Wal-Mart no-frills headquarters are in Bentonville, Arkansas, not an expensive city like New York. Executives start work before 6. 30 am, never use limousines, always fly economy-class and often share hotel rooms with colleagues. The company offers basic wages and health care plans. It demands that hourly workers do overtime without pay. Store managers regularly work 70 hours per week. They are expected to pinch pennies wherever they can, even on things like the heating and cooling of the stores.In the winter stores are kept at 70 degrees Fahrenheit and in the summer, they stay at 73 [Seth and Randall, 1999]. In almost fifty years of operation, Wal-Mart has managed to keep these cultural components, as well as its enterprising spirit. Leadership Walmart’s present chairman, S. Robson Walton [son of the founder] is reported to have said i t is the job of leaders to â€Å"listen to customers, listen to customers, listen to customers† [Fishman, 2006, p32]. Choosing to be a humble-servant type of leader, Mr Walton has established a spirit of customer service throughout the whole company. S. Robson Walton,Walmart Chairman Like Tesco, Walmart believes that delegation and limited supervision increases efficiency. Additionally, if leaders trust workers then they will develop quality decision-making skills. Fewer managerial, supervisory jobs also reflect Walmart’s culture of saving money wherever possible. 4. 3 Ethical & Environmental Issues In response to increasing consumer awareness of environmental and ethical issues, the supermarket chains have adopted a range of initiatives. In 2008 Walmart introduced new Fair Trade certified coffee products which provide plantation workers with better wages and working conditions.Similarly, to benefit farmers growing Fair Trade cotton in Africa and India, Tesco was t he first supermarket to bring in Fair Trade cotton knitwear and is presently doubling its range of Fair Trade cotton school uniforms [Wiener, 2009]. Also, to support local producers, much of Tesco’s meat and vegetables come from farmers within the region. With environmental issues becoming mainstream, Tesco has recently promised to attach a carbon label to all its goods and install sophisticated new refrigeration techniques to reduce its consumption of climate changing hydro-fluorocarbons.Wal-Mart now claims it will power its US stores entirely using renewable energy [Walmart, 2010, online]. The introduction of clear labelling regarding fat and calorie content of products has allowed supermarkets to take advantage of the increased consumer awareness of health issues. In the case of a health scare [e. g. BSE], their sophisticated communications networks make product traceability very easy. 5. CONCLUSIONS In conclusion, the retail market has been completely transformed in recen t years by the large supermarkets.Whether your preferred criteria for financial success is square footage of retail space, sales, net profit or dividend growth, both Tesco and Walmart have reached heights that few others in the retail industry can hope to match. To counter the image that they destroy the environment and are enemies of society, both Tesco and Walmart have adopted a range of environmental, social and ethical programs. The so called â€Å"Walmark effect† may yet be seen as a force for the good.