Porter’s 5 Force Analysis

The Industry Handbook http://www. investopedia. com/features/industryhandbook/ Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www. investopedia. com/contact. spx Table of Contents 1) The Industry Handbook: Introduction 2) The Industry Handbook: Porter's 5 Forces Analysis 3) The Industry Handbook: The Airline Industry 4) The Industry Handbook: The Oil Services Industry 5) The Industry Handbook: Precious Metals 6) The Industry Handbook: Automobiles 7) The Industry Handbook: The Retailing Industry 8) The Industry Handbook: The Banking Industry 9) The Industry Handbook: Biotechnology 10) The Industry Handbook: The Semiconductor Industry 11) The Industry Handbook: The Insurance Industry 12) The Industry Handbook: The Telecommunications Industry 13) The Industry Handbook: The Utilities Industry 14) The Industry Handbook: The Internet Industry IntroductionIndustry analysis is a type of investment research th at begins by focusing on the status of an industry or an industrial sector. Why is this important? Each industry is different, and using one cookie-cutter approach to analysis is sure to create problems. Imagine, for example, comparing the P/E ratio of a tech company to that of a utility. Because you are, in effect, comparing apples to oranges, the analysis is next to useless. In each section we'll take an in-depth look at the different valuation techniques and buzz words used in a particular industry, complete a 5-forces analysis on the state of the market and point you in the direction of industry-specific resources. Page 1 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. Porter's 5 Forces Analysis If you are not familiar with the five competitive forces model, here is a brief background on who developed it, and why it is useful. The model originated from Michael E. Por ter's 1980 book â€Å"Competitive Strategy: Techniques for Analyzing Industries and Competitors. † Since then, it has become a frequently used tool for analyzing a company's industry structure and its corporate strategy. In his book, Porter identified five competitive forces that shape every single industry and market.These forces help us to analyze everything from the intensity of competition to the profitability and attractiveness of an industry. Figure 1 shows the relationship between the different competitive forces. Figure 1: Porter's five competitive forces This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 2 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. 1. Threat of New Entrants – The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include: o o o o o oExisting loyalty to major brands Incentives for using a particular buyer (such as frequent shopper programs) High fixed costs Scarcity of resources High costs of switching companies Government restrictions or legislation 2. Power of Suppliers – This is how much pressure suppliers can place on a business. If one supplier has a large enough impact to affect a company's margins and volumes, then it holds substantial power. Here are a few reasons that suppliers might have power: o o o There are very few suppliers of a particular product There are no substitutes Switching to another (competitive) product is very costly The product is extremely important to buyers – can't do without it The supplying industry has a higher profitability than the buying industry o o . Power of Buyers – This is how much pressure customers can place on a business. If one customer has a large enough impact to affect a company's margins and volumes, then the customer hold substantial power. Here are a few reasons that customers might have power: o o o o Small number of buyers Purchases large volumes Switching to another (competitive) product is simple The product is not extremely important to buyers; they can do without the product for a period of time This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 3 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. om – the resource for investing and personal finance education. o Customers are price sensitive 4. Availability of Substitutes – What is the likelihood that someone will switch to a competitive product or service? If the cost of switching is low, then this poses a serious threat. Here are a few factors that can affect the threat of substitutes: o o The main issue is the similarity of substitutes. For example, if the price of coffee r ises substantially, a coffee drinker may switch over to a beverage like tea. If substitutes are similar, it can be viewed in the same light as a new entrant. 5. Competitive Rivalry – This describes the intensity of competition between existing firms in an industry.Highly competitive industries generally earn low returns because the cost of competition is high. A highly competitive market might result from: o o o Many players of about the same size; there is no dominant firm Little differentiation between competitors products and services A mature industry with very little growth; companies can only grow by stealing customers away from competitors The Airline Industry Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly improved techniques for their design and construction.Following the World War II, the first commercial airplane routes we re set up in Europe. Over time, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry, therefore, certainly has progressed. It has also altered the way in which people live and conduct This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 4 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. business by shortening travel time and altering our concept of distance, making it possible for us to visit and conduct business in places once considered remote. For more on the airline industry, read Is That Airline Ready For Lift-Off? ) The airline industry exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, which will have far-reaching effects on the industry's trend towards expanding domestic and international services. In the past, the air line industry was at least partly government owned. This is still true in many countries, but in the U. S. all major airlines have come to be privately held. The airline industry can be separated into four categories by the U. S. Department of Transportation (DOT): ? ? ? ? International – 130+ seat planes that have the ability to take passengers just about anywhere in the world.Companies in this category typically have annual revenue of $1 billion or more. National – Usually these airlines seat 100-150 people and have revenues between $100 million and $1 billion. Regional – Companies with revenues less than $100 million that focus on short-haul flights. Cargo – These are airlines generally transport goods. Airport capacity, route structures, technology and costs to lease or buy the physical aircraft are significant in the airline industry. Other large issues are: ? ? ? Weather – Weather is variable and unpredictable. Extreme heat, cold, fog and sno w can shut down airports and cancel flights, which costs an airline money.Fuel Cost – According to the Air Transportation Association (ATA), fuel is an airline's second largest expense. Fuel makes up a significant portion of an airline's total costs, although efficiency among different carriers can vary widely. Short haul airlines typically get lower fuel efficiency because take-offs and landings consume high amounts of jet fuel. Labor – According to the ATA, labor is the an airline's No. 1 cost; airlines must pay pilots, flight attendants, baggage handlers, dispatchers, customer service and others. Key Ratios/Terms Available Seat Mile = (total # of seats available for transporting passengers) X (# of miles flown during period) This tutorial can be found at: http://www. investopedia. om/features/industryhandbook/ (Page 5 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. Revenue Passenger Mile = flown during the period) (# of revenue-paying passengers) X (# of mile Revenue Per Available Seat Mile = (Revenue) (# of seats available) Air Traffic Liability (ATL): An estimate of the amount of money already received for passenger ticket sales and cargo transportation that is yet to be provided. It is important to find out this figure so you can remove it from quoted revenue figures (unless they specifically state that ATL was excluded).Load Factor: This indicator, compiled monthly by the Air Transport Association (ATA), measures the percentage of available seating capacity that is filled with passengers. Analysts state that once the airline load factor exceeds its breakeven point, then more and more revenue will trickle down to the bottom line. Keep in mind that during holidays and summer vacations load factor can be significantly higher, therefore, it is important to compare the figures against the same period from the previous year. Analyst Insight Airlines also earn revenue from transporting cargo, selling frequent flier miles to other companies and up-selling in flight services. But the largest proportion of revenue is derived from regular and business passengers.For this reason, it is important that you take consumer and business confidence into account on top of the regular factors that one should consider like earnings growth and debt load. (For more about the consumer confidence survey, see Economic Indicators: Consumer Confidence Index. ) Business travelers are important to airlines because they are more likely to travel several times throughout the year and they tend to purchase the upgraded services that have higher margins for the airline. On the other hand, leisure travelers are less likely to purchase these premium services and are typically very price sensitive. In times of economic uncertainty or sharp decline in consumer confidence, you can expect the number of leisure travelers to decline.It is also imp ortant to look at the geographic areas that an airline targets. Obviously, more market share is better for a particular market, but it is also important to stay diversified. Try to find out the destination to which the majority of an airline's flights are traveling. For example, an airline that sends a high number of flights to the Caribbean might see a dramatic drop in profits if the outlook for leisure travelers looks poor. A final key area to keep a close eye on is costs. The airline industry is extremely sensitive to costs such as fuel, labor and borrowing costs. If you notice a trend of This tutorial can be found at: http://www. investopedia. om/features/industryhandbook/ (Page 6 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. rising fuel costs, you should factor that into your analysis of a company. Fuel prices tend to fluctuate on a monthly basis, so paying close attention to these costs is crucial. Porter's 5 Forces Analysis 1. Threat of New Entrants. At first glance, you might think that the airline industry is pretty tough to break into, but don't be fooled. You'll need to look at whether there are substantial costs to access bank loans and credit. If borrowing is cheap, then the likelihood of more airliners entering the industry is higher.The more new airlines that enter the market, the more saturated it becomes for everyone. Brand name recognition and frequent fliers point also play a role in the airline industry. An airline with a strong brand name and incentives can often lure a customer even if its prices are higher. 2. Power of Suppliers. The airline supply business is mainly dominated by Boeing and Airbus. For this reason, there isn't a lot of cutthroat competition among suppliers. Also, the likelihood of a supplier integrating vertically isn't very likely. In other words, you probably won't see suppliers starting to offer flight s ervice on top of building airlines. 3. Power of Buyers.The bargaining power of buyers in the airline industry is quite low. Obviously, there are high costs involved with switching airplanes, but also take a look at the ability to compete on service. Is the seat in one airline more comfortable than another? Probably not unless you are analyzing a luxury liner like the Concord Jet. 4. Availability of Substitutes. What is the likelihood that someone will drive or take a train to his or her destination? For regional airlines, the threat might be a little higher than international carriers. When determining this you should consider time, money, personal preference and convenience in the air travel industry. 5. Competitive Rivalry.Highly competitive industries generally earn low returns because the cost of competition is high. This can spell disaster when times get tough in the economy. Key Links ? ? ? Federal Aviation Administration – Get the latest regulation news, airport delays , etc. AviationNow. com – Information and news on the airline/aerospace industry. AirWise. com – Airport and aviation news This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 7 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. The Oil Services Industry There is no doubt that the oil/energy industry is extremely large.According to the Department of Energy (DOE), fossil fuels (including coal, oil and natural gas) makes up more than 85% of the energy consumed in the U. S. as of 2008. Oil supplies 40% of U. S. energy needs. (Visit the U. S. Department of Energy's Energy Sources information page for more insight. ) Before petroleum can be used, it is sent to a refinery where it is physically, thermally and chemically separated into fractions and then converted into finished products. About 90% of these products are fuels s uch as gasoline, aviation fuels, distillate and residual oil, liquefied petroleum gas (LPG), coke (not the refreshment) and kerosene. Refineries also produce non-fuel products, including petrochemicals, asphalt, road oil, lubricants, solvents and wax.Petrochemicals (ethylene, propylene, benzene and others) are shipped to chemical plants, where they are used to manufacture chemicals and plastics. (For more insight, read Oil And Gas Industry Primer. ) There are two major sectors within the oil industry, upstream and downstream. For the purposes of this tutorial we will focus on upstream, which is the process of extracting the oil and refining it. Downstream is the commercial side of the business, such as gas stations or the delivery of oil for heat. Oil Drilling and Services Oil drilling and services is broken into two major areas: drilling and oilfield services. ? Drilling – Drilling companies physically drill and pump oil out of the ground. The drilling industry has always be en classified as highly skilled.The people with the skills and expertise to operate drilling equipment are in high demand, which means that for an oil company to have these people on staff all the time can cost a lot. For this reason, most drilling companies are simply contractors who are hired by oil and gas producers for a specified period of time. (For related reading, see Unearth Profits In Oil Exploration And Production. ) In the drilling industry, there are several different types of rigs, each with a specialized purpose. Some of these include: o Land Rigs – Drilling depths ranges from 5,000 to 30,000 feet. o Submersible Rigs – Used for ocean, lake and swamp drilling.The bottom part of these rigs are submerged to the sea's floor and the platform is on top of the water. o Jack-ups – this type of rig has three legs and a triangular platform which is jacked-up above the highest anticipated waves. This tutorial can be found at: http://www. investopedia. com/fe atures/industryhandbook/ (Page 8 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. o Drill Ships – These look like tankers/ships, but they travel the oceans in search of oil in extremely deep water. (For more information on the drilling industry, check out on the Rigzone website. ) ? Oilfield Services – Oilfield service companies assist the drilling companies n setting up oil and gas wells. In general these companies manufacture, repair and maintain equipment used in oil extraction and transport. More specifically, these services can include: o Seismic Testing – This involves mapping the geological structure beneath the surface. o Transport Services – Both land and water rigs need to be moved around at some point in time. o Directional Services – Believe it or not, all oil wells are not drilled straight down, some oil services companies s pecialize in drilling angled or horizontal holes. The energy industry is not any different than most commodity-based industries as it faces long periods of boom and bust.Drilling and other service firms are highly dependent on the price and demand for petroleum. These firms are some of the first to feel the effects of increased or decreased spending. If oil prices rise, it takes time for petroleum companies to size up land, setup rigs, take out the oil, transport it and refine it before the oil company sees any profit. On the other hand, oil services and drilling companies are the first on the scene when companies decide to start exploring. Oil Refining The refining business is not quite as fragmented as the drilling and services industry. This sector is dominated by a small handful of large players. In fact, much of the energy industry is ruled by large, integrated oil companies.Integrated refers to the fact that many of these companies look after all factors of production, refinin g and marketing. For the most part, refining is a slow and stable business. The large amounts of capital investment means that very few companies can afford to enter this business. This handbook will try to focus more on oil equipment and services such as drilling and support services. Key Ratios/Terms BTUs: Short for â€Å"British Thermal Units. † This is the amount of heat required to increase the temperature of one pound of water by one degree Fahrenheit. This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 9 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. om – the resource for investing and personal finance education. Different fuels have different heating values; by quoting the price per BTU it is easier to compare different types of energy. Dayrates: Oil and gas drillers usually charge oil producers on a daily work rate. These rates vary depending on the location, the type of rig a nd the market conditions. There are plenty of research firms that publish this information. Higher dayrates are great for drilling companies, but for refiners and distribution companies this means lower margins unless energy prices are rising at the same rate. Meterage: Another type of contract that differs from dayrates is one based on how deep the rig drills.These are called meterage, or footage, contracts. These are less desirable because the depth of the oil deposits are unpredictable; it's really a gamble on the driller's part. Downstream: Refers to oil and gas operations after the production phase and through to the point of sale, whether at the gas pump or the home heating oil truck Upstream: The grass roots of the oil business, upstream refers to the exploration and production of oil and gas. Many analysts look at upstream expenditures from previous quarters to estimate future industry trends. For example, a decline in upstream expenditures usually trickles down to other are as such as transportation and marketing.OPEC: The Organization of Petroleum Exporting Countries is an intergovernmental organization dedicated to the stability and prosperity of the petroleum market. OPEC membership is open to any country that is a substantial exporter of oil and that shares the ideals of the organization. OPEC has 11 member countries. Output quotas placed by OPEC can send huge shocks throughout the energy markets. Below is a chart of the world's top exporters of petroleum. OPEC members are denoted by â€Å"*†. Indonesia and Qatar are also members, but they don't make the top twelve. Top World Oil Net Exporters, 2006 Country 1) Saudi Arabia* 2) Russia Net Exports (million barrels per day) 8. 65 6. 57 This tutorial can be found at: http://www. investopedia. om/features/industryhandbook/ (Page 10 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. 3) No rway 4) Iran* 5) United Arab Emirates* 2. 54 2. 52 2. 52 2. 20 2. 15 2. 15 1. 85 1. 68 1. 52 6) Venezuela* 7) Kuwait* 8) Nigeria* 9) Algeria* 10) Mexico 11) Libya* 12) Iraq* 1. 43 Source: Energy Information Administration Analyst Insight Analysts and investors often disagree on specific investment decisions, but one thing that they do agree on is their approach to analyzing energy companies. A top down investment approach is almost always the best strategy. We will go through the top down steps below. For more insight, read A Top-Down Approach To Investing. ) Economics/Politics The oil industry is easily influenced by economic and political conditions. If a country is in a recession, fewer products are being manufactured, not as many people drive to work, take vacations, etc. All of these variables factor into less energy use. The best time to invest in an oil company is when the economy is firing on all cylinders and oil companies are making so much money that using excessive amoun ts of energy themselves has little effect on their bottom line. Some analysts believe that rather than analyzing energy companies, you should just predict the trend in energy prices.While more analysis is needed for a prudent investment than simply looking at price trends in oil, it's true that there is a strong correlation between the performance of energy companies and the commodity price for energy. Supply and Demand Oil and gas prices fluctuate on a minute by minute basis, taking a look at the historical price range is the first place you should look. Many factors determine the price of oil, but it really all comes down to supply and demand. Demand typically does not fluctuate too much (except in the case of recession), but supply shocks can occur for a number of reasons. When OPEC meets to determine oil supply for the coming months, the price of oil can fluctuate wildly.Day-to-day This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 11 o f 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. fluctuations should not influence your investment decision in a particular energy company, but long-term trends should be followed more closely. You can find the latest energy supply/demand statistics at the Energy Information Administration. Rig Utilization Rates Another factor that determines supply is the rig utilization rates; its close relationship to oil prices is not a coincidence. Higher utilization rates mean more revenue and profits.For drilling companies, it is important to take a close look at the company's rig fleet, because older rigs lack the ability to drill in remote locations or to bore deep holes. Some other factors to consider are the depth of water that the offshore rigs can drill in, hole depth and horsepower. Higher quality rigs will have higher utilization rates, especially during weak periods. This w ill lead to higher revenue growth. Sometimes this is a double-edged sword; while higher utilization is better, a company that is at its capacity will have difficulty increasing revenues further. Contracts The contracts through which an oil services company is paid also play a large role in supply. Pay close attention to the dayrates, as falling dayrates can dramatically decrease revenues.The opposite is true should dayrates rise. This is because many of the drillers' costs are fixed. Financial Statements After these wide scale factors have been considered, it's time to get down to the nitty gritty – the financials. And when it comes to the financials, the same old rules apply to oil services companies. Ideally, revenues and profits will be growing consistently, just as they do in any quality company. It's worth digging deeper to see if there are any one-time events that have dramatically increased revenues. Also, the P/E ratio and PEG ratios should be comparable to others wit hin the industry. On the balance sheet, investors should keep an eye on debt levels.High debt puts a strain on credit ratings, weakening their ability to purchase new equipment or finance other capital expenditures. Poor credit ratings also make it difficult to acquire new business. If customers have the choice of going with a company that is strong versus one that is having debt problems, which do you think they will choose? To do a test for financial leverage, take a look at the debt/equity ratio. The working capital also tells us whether the company has enough liquid assets to cover short term liabilities. Rating agencies like Moody's and S&P say 50% is a prudent debt/equity ratio. Companies in more stable markets can afford slightly higher debt/equity ratios.If profits are of the utmost importance, then the statement of cash flow is a close second. Oil companies are notorious for reporting non cash line items in the This tutorial can be found at: http://www. investopedia. com/fe atures/industryhandbook/ (Page 12 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. income statement. For this reason, you should try to decipher the cash EPS. By stripping away all the non-cash entities you will get a truer number because cash flow cannot be manipulated as easily as net income can. (For further reading, see Advanced Financial Statement Analysis. ) Porter's 5 Forces Analysis 1. Threat of New Entrants.There are thousands of oil and oil services companies throughout the world, but the barriers to enter this industry are enough to scare away all but the serious companies. Barriers can vary depending on the area of the market in which the company is situated. For example, some types of pumping trucks needed at well sites cost more than $1 million each. Other areas of the oil business require highly specialized workers to operate the equipment and to make key d rilling decisions. Companies in industries such as these have higher barriers to entry than ones that are simply offering drilling services or support services. Having ample cash is another barrier – a company had better have deep pockets to take on the existing oil companies. 2. Power of Suppliers.While there are plenty of oil companies in the world, much of the oil and gas business is dominated by a small handful of powerful companies. The large amounts of capital investment tend to weed out a lot of the suppliers of rigs, pipeline, refining, etc. There isn't a lot of cut-throat competition between them, but they do have significant power over smaller drilling and support companies. 3. Power of Buyers. The balance of power is shifting toward buyers. Oil is a commodity and one company's oil or oil drilling services are not that much different from another's. This leads buyers to seek lower prices and better contract terms. 4. Availability of Substitutes.Substitutes for the o il industry in general include alternative fuels such as coal, gas, solar power, wind power, hydroelectricity and even nuclear energy. Remember, oil is used for more than just running our vehicles, it is also used in plastics and other materials. When analyzing an energy company it is extremely important to take a close look at the specific area in which the company is operating. Also, companies offering more obscure or specialized services such as seismic drilling or directional drilling tools are much more likely to withstand the threat of substitutes. (For more on oil substitutes, see The Biofuels Debate Heats Up. ) 5. Competitive Rivalry. Slow industry growth rates and high exit barriers are a particularly troublesome situation facing some firms.Until quite recently, oil refineries were a particularly good example. For a period of almost 20 years, no new refineries were built in the U. S. Refinery capacity exceeded the product demands as a result of conservation efforts followin g the oil shocks of the 1970s. At the same time, exit barriers in the This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 13 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. refinery business are quite high. Besides the scrap value of the equipment, a refinery that does not operate has no value-adding capability.Almost every refinery can do one thing – produce the refined products they have been designed for. Key Links ? ? ? Department of Energy – Get the latest regulation news and statistics. You name it, this site has it. ODS-Petrodata – Both free and fee-based data on rig counts and other key figures in the oil services industry. Rigzone. com – News and statistics on the oil and gas industry. Precious Metals The precious metals industry is very capital intensive. Constructing mines and building produ ction facilities requires huge sums of capital. Long-term survival requires heavy expenditures to finance production and exploration. Technology has played a big role in the computer and internet industry, but t has also greatly changed the mining industry. Gold is the most popular precious metal for investors. As you may know, gold is a commodity, and, as such, the price for gold fluctuates on a daily basis in the commodity markets. While there is a lot of overlap between the basics of mining gold and silver, the primary focus of here is on the gold market. Silver is less valuable than gold, and, as such, it is usually discovered either by accident or as a byproduct of gold/lead/copper mining. Gold prices are influenced by numerous variables that include fabricator demand, expected inflation, return on assets and central bank demand. Gold is strongly pegged to supply-and-demand patterns.In general, low prices result in low production, and high prices result in high production. Mark et forces determine price. A company's attempt to control costs is critical to maintaining financial health and production levels in the face of declining gold prices. (For related reading, see Does It Still Pay To Invest In Gold? ) The metals industry is not vertically integrated like other industries such as oil and energy. In the metals industry, the companies that mine the gold typically do This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 14 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. ot refine it, and refiners rarely sell it directly to the public. The industry encompasses three types of firms: 1. Exploration. These companies have very little in the way of assets. They explore and prove that gold exists in a particular area. The only major assets owned by exploration firms are the rights to drill and a small amount of capital, which is needed to conduct drilling and trenching operations. 2. Development. Once a gold deposit is discovered by exploration companies, they either try to become development firms, or they sell their gold find to development firms. Development firms are those operating on explored areas that have prove to be mines.The only real difference between development and exploration is that, for development firms, their area has proved to be a gold deposit. 3. Production. Producer firms are full-fledged mining companies that extract and produce gold from existing mines; this production can range from a hundred thousand ounces to several million ounces of gold production per year. Each operator in the supply chain has its own strengths and weaknesses. Some companies do well at extracting the metal from the earth, some refine, while others smelt and transform the commodity into a finished product. Most gold that is mined today is used for jewelry, perhaps because of its beauty, or perhaps because it doesn't rust or corrode.Other uses for gold include tooth filings, electronics manufacturing and collectibles, but these make up a very small portion of overall demand. Unlike other industries, companies in the mining industry come in all shapes and sizes. Much of the production is done by large blue chip companies, but the exploration side of the industry is full of junior companies looking to hit a home run with a large gold find. The mining industry has plenty of opportunities for speculators and others for income investors. (To learn more, read Getting Into The Gold Market. ) Key Ratios/Terms Mine Production Rates: Serious gold investors follow the Gold Survey very closely, published by Gold Fields Mineral Services. Each year, it lists the worldwide mine production statistics.Increasing production rates means more supply, which ultimately means a lower price for gold – if demand remains stable. Scrap Recovery: Another statistic published in the Gold Sur vey, scrap This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 15 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. recovery refers to the worldwide supply of gold from sources other than mine production. This includes recovered old jewelry, industrial byproducts, etc. Throughout the 1990s, more than 15% of the world's gold supply came from scrap recovery. Futures Sales by Producers As you probably know, gold trades in the futures markets.Gold producers are constantly monitoring the prices in the futures markets because it determines the price at which they can sell their gold. The Gold Survey lists statistics on producer sales. If producers are selling an increasing amount in the futures market, it could mean that prices will fall very soon. By purchasing futures contracts the producer â€Å"locks-in† a price. Therefore, if the price of gold falls in future months, it won't affect the producer's bottom line. Conversely, if prices continue to rise after the producer locks in, they won't be able to capitalize on the higher prices. Bullion: This denotes gold and silver that is refined and officially recognized as high quality (at least 99. 5% pure). It is usually in the form of bars rather than coins.When you hear of investors or central banks holding gold reserves, it is usually in the form of bullion. Ore: This refers to mineralized rock that contains metal. Gold producers mine gold ore and then extract the gold from it using either chemicals, extreme heat, or some other method. There are different types of ores, of which the most common are oxide ores and sulphide ores. Analyst Insight The price of gold fluctuates on a minute-by-minute basis, so taking a look at the historical price range is the first place you should look. Many factors determine the price of gold, but it really all comes down to supp ly and demand. Demand typically does not fluctuate too much, but supply shocks can send prices either soaring or into the doldrums.The difference between production costs and the futures price for gold equals the gross profit margins for mining companies. Therefore, the second place you want to look is the cost of production. The main factors to look at are the following: ? ? Location – Where is the gold being mined? Political unrest in developing nations has ruined more than one mining company. Developing nations might have cheaper labor and mining costs, but the political risks are huge. If you are risk averse, then look for companies with mines in relatively stable areas of the world. The costs might be higher, but at least the company knows what it's getting into. Ore Quality – Ore is mineralized rock that contains metal.Higher quality ore will contain more gold, which is usually reported as ounces This tutorial can be found at: http://www. investopedia. com/featur es/industryhandbook/ (Page 16 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. ? of gold per ton of ore. Generally speaking, oxide ores are better because the rock is more porous, making it easier to remove the gold. Mine Type – The type of mine a company uses is a big factor in production costs. Most underground mines are more expensive than open pit mines. Cost of Production The cost of production is probably the most widely followed measure for analyzing a gold producer.The lower the costs, the greater the operating leverage, which means that earnings are more stable and less volatile to changes in the price of gold. For example, a company that has a cash cost around $175/ounce is, for obvious reasons, in a much better position than one whose cost is $275/ounce. The low-cost producer has much more staying power than the marginal producer. In fact, if the price o f gold declines below $275/ounce, the higher-cost producer would have to stop producing until the price goes back up. Producers usually publish their cost of production in their annual report; this cost includes everything from site preparation to milling and refining.It doesn't include exploration costs, financing, or any other administrative expenses the company might incur. Aside from looking at costs, investors should carefully look over revenue growth. Revenue is output times the selling price for gold, so it may fluctuate from year to year. Well-run companies will attempt to hedge against fluctuating gold prices through the futures markets. Take a look at the revenue fluctuations over the past several years. Ideally, the revenue growth should be smooth. Companies with revenues that fluctuate widely from year to year are very hard to analyze and aren't where the smart money goes. Debt Levels Investors should keep an eye on debt levels, which are on the balance sheet.High debt p uts a strain on credit ratings, weakening the company's ability to purchase new equipment or finance other capital expenditures. Poor credit ratings also make it difficult to acquire new businesses. (For related reading, see Debt Reckoning. ) P/E As a final caveat (beware), never analyze a precious-metals company based on the price-to-earnings ratio. In general, a high P/E means high projected earnings in the future, but all gold stocks have high P/E ratios. The P/E ratio for a gold stock doesn't really tell us anything because precious metals companies need to be compared by assets, not earnings. Unlike buildings and machinery, gold companies have large amounts of gold in their vaults and in mines throughout the world.Gold on the balance sheet is unlike other capital assets; gold is seen This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 17 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com â€⠀œ the resource for investing and personal finance education. as currency of last resort. Investors are therefore willing to pay more for a gold company because it is the next best thing to physically holding the gold themselves. There are a few valuation techniques that analysts use when comparing various precious metal companies. The most popular and widely used ratio is market capitalization per ounce of reserves (market cap divided by reserves).This indicates to investors what they are paying for each ounce of reserves. Obviously, a lower price is better. Porter's 5 Forces Analysis 1. Threat of New Entrants. Financing is a principal barrier to entry in the precious-metals industry, which is heavily capital intensive. Constructing mines, production facilities, exploration and development and mining equipment all require large sums of capital. This capital is required before the mine is in production. Therefore, favorable financing terms are extremely important. In short, long-ter m survival in the precious-metal market requires significant capital. 2. Power of Suppliers. The only supply-side issues that miners face deal with government regulations and rules.The supply of land is plentiful, but gaining approval and permits to mine the land can be difficult, especially if environmental risks are high. 3. Power of Buyers. Gold is a commodity-based business, so the gold from one company is not that much different from another's. This translates into buyers seeking lower prices and better contract terms. 4. Availability of Substitutes. Substitutes for the precious metals industry include other precious metals such as diamonds, silver, platinum, etc. These are worthy substitutes for gold, but they are not as widely accepted as gold. Gold has the advantage of being standard for a world currency, so a gold bar in the U. S. s worth the same as it is in Ecuador. As other forms of precious metals such as diamonds gain popularity, they may also become more threatening a s substitutes. 5. Competitive Rivalry. Gold companies don't compete on price, mainly because the prices are determined by market forces. But gold companies do compete for land. The backbone of a precious metals company is its reserves, and the only way to beef up reserves is to explore for good mining areas. Companies go to great lengths to discover gold deposits, and the discovery is on a first-come-first-serve basis. Key Links ? InfoMine. com – Get the latest news and statistics on mining companies. Mining USA – Here is more data and information on mining. This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 18 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. ? Mining Glossary – When you are analyzing a mining company you are bound to come across industry-specific terms you don't understand Automobiles Simila r to the invention of the airplane, the emergence of automobiles has had a profound effect on our everyday lives. The auto manufacturing industry is considered to be highly capital and labor intensive.The major osts for producing and selling automobiles include: ? ? ? Labor – While machines and robots are playing a greater role in manufacturing vehicles, there are still substantial labor costs in designing and engineering automobiles. Materials – Everything from steel, aluminum, dashboards, seats, tires, etc. are purchased from suppliers. Advertising – Each year automakers spend billions on print and broadcast advertising; furthermore, they spent large amounts of money on market research to anticipate consumer trends and preferences. The auto market is thought to be made primarily of automakers, but auto parts makes up another lucrative sector of the market.The major areas of auto parts manufacturing are: ? ? ? Original Equipment Manufacturers (OEMs) – Th e big auto manufacturers do produce some of their own parts, but they can't produce every part and component that goes into a new vehicle. Companies in this industry manufacture everything from door handles to seats. Replacement Parts Production and Distribution – These are the parts that are replaced after the purchase of a vehicle. Air filters, oil filers and replacement lights are examples of products from this area of the sector. Rubber Fabrication – This includes everything from tires, hoses, belts, etc. In the auto industry, a large proportion of revenue comes from selling automobiles.The parts market, however, is even more lucrative. For example, a new car might cost $18,000 to buy, but if you bought, from the automaker, all the parts needed to construct that car, it would cost 300-400% more. Over and above the labor and material costs we mentioned above, there are other developments in the automobile industry that you must consider when analyzing an automobile company. Globalization, the tendency of world investment and businesses to move from national and domestic markets to a This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 19 of 65) Copyright  © 2010, Investopedia. com – All rights reserved.Investopedia. com – the resource for investing and personal finance education. worldwide environment, is a huge factor affecting the auto market. More than ever, it is becoming easier for foreign automakers to enter the North American market. (To read more about this issue, see The Globalization Debate. ) Competition is the other factor that takes its toll on the auto industry; we will discuss this in more detail below under the Porter's 5 forces analysis Key Players In North America, the automobile production market is dominated by what's known as the Big Three: ? ? ? General Motors – Produces Chevrolet, Pontiac, Buick and Cadillac, among others.Chrysler – Chrysler, Jeep and Dodge. Ford Motor Co – Ford, Lincoln and Volvo. Two of the largest foreign car manufacturers are: ? ? Toyota Motor Co Honda Motor Co Key Ratios/Terms Fleet Sales: Traditionally, these are high-volume sales designated to come from large companies and government agencies. These sales are almost always at discount prices. In the past several years, auto makers have been extending fleet sales to small businesses and other associations. Seasonally Adjusted Annual Rate of Sales (SAAR): Most auto makers experience increased sales during the second quarter (April to June), and sales tend to be sluggish between November and January.For this reason, it is important to compare sales figures to the same period of the previous year. The adjustment factors are released each year by the U. S. Bureau of Economic Analysis. Sales Reports: Many of the large auto makers release their preliminary sales figures from the previous month on a monthly basis. This can give you an indication of the cur rent trends in the industry. Day Sales Inventory = Average Inventory Average Daily Sales The sales reports (discussed above) are released monthly. Most automakers try to make dealerships hold 60 days worth of inventory on their lots. Watch out This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 20 of 65) Copyright  © 2010, Investopedia. om – All rights reserved. Investopedia. com – the resource for investing and personal finance education. if sales inventory climbs significantly above 60 days worth. Sales fluctuate month-to-month, but you shouldn't see sustained periods of high inventory. Analyst Insight Automobiles depend heavily on consumer trends and tastes. While car companies do sell a large proportion of vehicles to businesses and car rental companies (fleet sales), consumer sales is the largest source of revenue. For this reason, taking consumer and business confidence into account should be a higher priority than cons idering the regular factors like earnings growth and debt load. For more about the Consumer Confidence Survey, see Economic Indicators: Consumer Confidence Index. ) Another caveat of analyzing an automaker is taking a look at whether a company is planning makeovers or complete redesigns. Every year, car companies update their cars. This is a part of normal operations, but there can be a problem when a company decides to significantly change the design of a car. These changes can cause massive delays and glitches, which result in increased costs and slower revenue growth. While a new design may pay off significantly in the long run, it's always a risky proposition. For parts suppliers, the life span of an automobile is very important.The longer a car stays operational, the greater the need for replacement parts. On the other hand, new parts are lasting longer, which is great for consumers, but is not such good news for parts makers. When, for example, most car makers moved from using rolled steel to stainless steel, the change extended the life of parts by several years. A significant portion of an automaker's revenue comes from the services it offers with the new vehicle. Offering lower financial rates than financial institutions, the car company makes a profit on financing. Extended warranties also factor into the bottom line. (To read more about this, see Extended Warranties: Should You Take The Bait? Greater emphasis on leasing has also helped increase revenues. The advantage of leasing is that it eases consumer fears about resale value, and it makes the car sound more affordable. From a maker's perspective, leasing is a great way to hide the true price of the vehicle through financing costs. Car companies, then, are able to push more cars through. Unfortunately, profiting on leasing is not as easy as it sounds. Leasing requires the automakers to accurately judge the value of their vehicles at the end of the lease, otherwise they may actually lose money. If you think about it, the automaker will lose money on the lease if they give the car a high salvage value.A car with a low salvage value at the end of the lease will simply be bought by the consumer and flipped for a profit. This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 21 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. Porter's 5 Forces Analysis 1. Threat of New Entrants. It's true that the average person can't come along and start manufacturing automobiles. Historically, it was thought that the American automobile industry and the Big Three were safe. But this did not hold true when Honda Motor Co. opened its first plant in Ohio.The emergence of foreign competitors with the capital, required technologies and management skills began to undermine the market share of North American companies. 2. Power of Suppliers. The autom obile supply business is quite fragmented (there are many firms). Many suppliers rely on one or two automakers to buy a majority of their products. If an automaker decided to switch suppliers, it could be devastating to the previous supplier's business. As a result, suppliers are extremely susceptible to the demands and requirements of the automobile manufacturer and hold very little power. 3. Power of Buyers. Historically, the bargaining power of automakers went unchallenged.The American consumer, however, became disenchanted with many of the products being offered by certain automakers and began looking for alternatives, namely foreign cars. On the other hand, while consumers are very price sensitive, they don't have much buying power as they never purchase huge volumes of cars. 4. Availability of Substitutes. Be careful and thorough when analyzing this factor: we are not just talking about the threat of someone buying a different car. You need to also look at the likelihood of pe ople taking the bus, train or airplane to their destination. The higher the cost of operating a vehicle, the more likely people will seek alternative transportation options.The price of gasoline has a large effect on consumers' decisions to buy vehicles. Trucks and sport utility vehicles have higher profit margins, but they also guzzle gas compared to smaller sedans and light trucks. When determining the availability of substitutes you should also consider time, money, personal preference and convenience in the auto travel industry. Then decide if one car maker poses a big threat as a substitute. 5. Competitive Rivalry. Highly competitive industries generally earn low returns because the cost of competition is high. The auto industry is considered to be an oligopoly, which helps to minimize the effects of pricebased competition.The automakers understand that price-based competition does not necessarily lead to increases in the size of the marketplace; historically they have tried to avoid price-based competition, but more recently the competition has intensified – rebates, preferred financing and long-term warranties have helped to lure in customers, but they also put pressure on the profit margins for vehicle sales. This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 22 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. (For further reading, check out Analyzing Auto Stocks. ) Key Links ? ? ? ? Ward's Automotive Reports – A popular publisher of automotive data.The Alliance of Automobile Manufacturers – Get the latest industry facts, developments, and technological innovations. Automotive Industries – A magazine covering several areas of the auto industry. US Council for Automobile Research – The umbrella organization of Daimler Chrysler, Ford and General Motors created to str engthen the technology base of the domestic auto industry. The Retailing Industry All businesses that sell goods and services to consumers fall under the umbrella of retailing, but there are several directions we can take from here. For starters, there are department stores, discount stores, specialty stores and even seasonal retailers.Each of these might have their own little quirks; however, for the most part the analysis overlaps to all areas of retailing. This section of the industry handbook will try to focus more on general retailers and department stores. (For background reading, see Analyzing Retail Stocks. ) Over the past couple decades, there have been sweeping changes in the general retailing business. What was once strictly a made-to-order market for clothing has changed to a ready-to-wear market. Flipping through a catalog, picking the color, size and type of clothing a person wanted to purchase and then waiting to have it sewn and shipped was standard practice. At the turn of the century some retailers would have a storefront where people could browse.Meanwhile, new pieces were being sewn or customized in the back rooms. In some parts of the world, the retail business is dominated by smaller family-run or regionally-targeted stores, but this market is increasingly being taken over by billion-dollar multinational conglomerates like Wal-Mart and Sears. The larger retailers have managed to set up huge supply/distribution chains, inventory management systems, financing pacts and wide scale marketing plans. Without getting into specific product categories within the retailing industry, the overall segments can be divided into two categories: ? Hard – These types of goods include appliances, electronics, furniture, sporting goods, etc.Sometimes referred to as â€Å"hardline retailers. † This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 23 of 65) Copyright  © 2010, Investopedia. com – Al l rights reserved. Investopedia. com – the resource for investing and personal finance education. ? Soft – This category includes clothing, apparel, and other fabrics. Each retailer tries to differentiate itself from the competition, but the strategy that the company uses to sell its products is the most important factor. Here are some different types of retailers: ? ? ? Department Stores – Very large stores offering a huge assortment of goods and services.Discounters – These also tend to offer a wide array of products and services, but they compete mainly on price. Demographic – These are retailers that aim at one particular segment. High-end retailers focusing on wealthy individuals would be a good example. Each of these has its own distinct advantages, but it's important to know how these advantages play out. For example, during tough economic times, the discount retailers tend to outperform the others. The opposite is true when the economy is t hriving. The more successful retailers attempt to combine the characteristics of more than one type of retailer to differentiate themselves from the competition. Key Ratios/Terms Same Store Sales: Used when analyzing individual retailers.It compares sales in stores that have been open for a year or more. This allows investors to compare what proportion of new sales have come from sales growth compared to the opening of new stores. This is important because although new stores are good, there eventually comes a saturation point at which future sales growth comes at the expense of losses at other locations. Same store sales are also commonly referred to as â€Å"comps. † Sales per Square Foot: Sales Square Footage Store space is considered to be a productive asset and the key to profitability. Successful companies generate as much sales volume as possible out of each square foot of store space.More recently, analysts have created modifications of this concept by looking at a re tailers' gross margin per square foot. Inventory Turnover: This ratio shows how many times the inventory of a firm is This tutorial can be found at: http://www. investopedia. com/features/industryhandbook/ (Page 24 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com – the resource for investing and personal finance education. sold and replaced over a specific period. Generally calculated as: Sales Inventory Cost of Goods Sold Average Inventory But, may also be calculated as: Although the first calculation is more frequently used, COGS may be substituted because sales are recorded at market value while inventories are usually recorded at cost.Also, average inventory may be used instead of the ending inventory to help minimize seasonal factors. This ratio should be compared against similar retail companies or the industry average. A low turnover might imply poor sales and, therefore, excess inventory. A high ratio implies either strong sales or ineffective buying from suppliers. (For related reading, see Consumer Confidence: The Consumer Confidence Index (CCI) is put out by the Consumer Confidence Board around the middle of each month. The Consumer Confidence Survey is based on a sample of 5,000 U. S. households and is considered to be one of the most accurate indicators of confidence. Increasing confidence means more spending and borrowing for consumers – a positive for retailers. To learn more about this measure, see Economic Indicators To Know: Consumer Confidence Index. ) Personal Income & Disposable Income: Every quarter, the Bureau of Economic Analysis releases the latest income data for U. S. citizens. There is a high correlation between retail sales data and the changes in personal income. (For more insight, see Economic Indicators: Personal Income and Outlays. ) Analyst Insight As we mentioned earlier, the store type and the strategy that retailers use plays a big role in how well the company perfo rms. The first thing to take a look at is what segment of the retail industry the company is situated in. Is the company a discounter? Department store? Specialty retailer?The retail category to which the company belongs also helps determine the following details about the company: ? Competitors – The number and size of direct competitors is important. Ideally, you want the company to have as little competition as possible, but this rarely happens. Determine who the direct competitors are and how they are all positioned in the market. A smaller regional discount store might find it tough to compete with new Wal-mart stores opening up every month. Take a look at the big picture, find out what differentiates the company from its competitors. Do they have better prices, service, or offer This tutorial can be found at: http://www. investopedia. om/features/industryhandbook/ (Page 25 of 65) Copyright  © 2010, Investopedia. com – All rights reserved. Investopedia. com â₠¬â€œ the resource for investing and personal finance education. ? ? higher quality goods than their competition? Grocery stores might find it hard to differentiate themselves from competitors: after all, an apple is an apple. Higher-end retailers, however, may have an easier time as they try to compete on service or quality. Size of the Market – Determining the overall size of the market gives us an indication of the potential for the market. If you had the choice between a company with a 25% share of a $10 million market or a 25% share of a $1 billion market, which one would you chose?Other Factors – Some analysts even go as far as evaluating the retail strategy that the companies use. For example, does the company have a fresh look? Are their stores clean, bright and fun to shop in? Swedish retailer Ikea has done an excellent job of designing their stores for visual appeal, and quite possibly it has equated to very strong sales. Also, what are the store demographics? Does the retailer appeal more to younger people (who don't have the money), or does it appeal to the parents (who do have the money). The performance of the economy as a whole obviously has a great impact on the retailing industry. Retailer profits have a close correlation with the overall performance of the economy.Looking at the trends for growth in gross domestic product (GDP), inflation, consumer confidence, personal income and interest rates are extremely important when thinking about investing in the retail industry. You might not think that your shopping habits are sensitive to interest rate fluctuations, but they are. While a 50-basis-point drop in interest rates might not give you the sudden inkling to go drop $1,000 at Macy's, for the economy as a whole, it has a big effect on spending patterns. (For more insight on this effect, see How Interest Rates Affe

Nursing Medicine Essay

Medical physicians and nurses have well-built passions about their range of contributions to the health of people. They are concerned with how expert ideas and welfares are to be weighed against the necessity to maneuver a system that works for the greater good of the public. Nurses and physicians work hand in hand for the cure and betterment of their patients; but what makes them different from each other? Some say it’s better to be a doctor for one has the capability to save lives; others say it’s more fulfilling to be a nurse because you not only help offer cure for the sick, you also give them genuine care. Moreover, applying and promoting caring values in the nurses’ practice is not only necessary to their own health as nurses, but its implication is also deeply tributary to finding meaning in their work. Upholding caring values in the nurses’ every day practice helps go above the nurse from a state where nursing is thought as just a job to that of a rewarding profession. While many people see medicine as a better profession than nursing, they don’t realize that nurses also encompass the competence and deep levels of character. The changes in the delivery systems of health care around the world have intensified nurses’ workloads and responsibilities. Nurses must know how to deal with patients’ increased acuteness and intricacy with regards to their health care condition. Regardless of such hardships, nurses are able to find ways to conserve their caring practice. Giving care to different individuals several hours a day is no easy job. This paper will enlighten people to what the nursing profession really is by discussing the theory of human caring. Jean Watson’s caring theory can be seen as essential to this aim. While the sole focus of medicine is to diagnose a patient and cure his/her disorder or disease, nursing entails giving care to the patient. Without care, the cure for the disease would be possible, but the illness would still linger because health would still not be attained without caring. The core of nursing is caring, while that of medicine is cure. This paper doesn’t imply that medicine does not include caring for patients. It’s just that nursing implies caring in a deeper, more attached way. The nursing profession involves working long hours with the sick, developing rapport in every possible way, and acknowledging every patient whatever their attitude or race may be. Nursing and caring have always been thought of as acting in unison. Most people choose nursing as a line of work because of their longing to care for other persons. Watson’s caring theory not only allows the nurse to live out the art of caring, it also seeks to offer compassion to ease families’ and patients’ suffering, and to support their dignity and healing. According to Watson (2001), the chief elements of her assumption are: the carative factors, the transpersonal caring relationship, and the caring moment or caring occasion. These fundamentals are described later in the paper, and will be exemplified and viewed in light of the nursing and medical profession. The caring theory or model can also be measured as an ethical/moral and philosophical foundation for professional nursing and a division of the vital focus for nursing at the corrective level. A replica of caring includes a call for both science and art; it provides a structure that intersects and embraces with science, humanities, art, spirituality, and a new magnitude of body, mind, and spirit. Nursing and medicine is developing openly as a core to human phenomenon of the nursing practice. Carative factors are viewed as a guide for the nursing core. Watson uses the word carative in contrast with medicine’s curative factors. She uses the carative factors for the reason of honoring the human magnitude of the work of nursing and the subjective experiences and inner life world of the patients that they serve. The carative factors have ten elements: faith-hope, humanistic-altruistic system of value, expressing positive and negative feelings, helping-trusting human care relationship, transpersonal teaching-learning, creative problem solving caring process, human needs assistance, supportive, protective and corrective physical, mental, societal and spiritual environment, and existential phenomenological spiritual forces. This however evolved into the caritas process which has a deeper spiritual magnitude and dimension which means to treasure and to give exceptional loving attention (Watson, 2001). Transpersonal Caring regards the harmony of life and relations that move in concentric circles of caring from a person, to others, to the society, to the world, to our planet, and to the universe. Transpersonal caring is established in a happening or actual caring instance. It shows concern for the life within. The patient is regarded as complete and as a whole, in spite of disease or illness (Watson 2003). The transpersonal nurse looks for a connection to embrace the soul or the spirit of the patient, by way of healing and caring (Watson 2003). Caring in the nursing career takes place each time a nurse to patient contact is achieved. Unlike in medicine, some doctors may look at a patient and just prescribe a drug, after that, their deal is finished. In contrast, the nurse seeks to enter the patient’s world in order to draw closer and know the patient as a caring individual, and that it is from this epistemology that the caring of nursing begins to unfold (Schoenhofer 2002). This caring makes a big difference to the well being of each patient. Caring may happen without curing, but curing cannot take place without caring (Watson 2003). It is with that conviction that nurses are concerned for patients in the anticipation that they add to the well being or cure of that patient. Hope may be the only support an ill person has to keep their optimism. Nurses care adequately to credit that hope and hold up for the patient. They have the vision that patient is complete and whole. The one being cared and one caring are unified (Watson 1997). It’s experiencing human being connection at a deeper level than a bodily contact (Watson 2003). This connection describes how the nurse goes further than an objective evaluation, presenting concerns toward the person’s deeper and subjective meaning concerning their own health care condition. The nurse’s caring realization becomes vital for the association and understanding of the other person’s point of view. This approach highlights the exclusivity of both the nurse and the person, and also the mutuality linking the two persons, which is primary to the bond. As such, the one cared-for and the one caring cooperate in connection in mutual search for wholeness and meaning perhaps for the sacred transcendence of suffering (Watson, 2001). The term transpersonal means to go further than an individual’s own ego and the here and now, while it allows him/her to arrive at a deeper spiritual connection in promoting the patient’s healing and comfort. Lastly, the objective of a transpersonal caring association corresponds to enhancing, protecting, and preserving the person’s humanity, dignity, inner harmony, and wholeness. According to Jean Watson (1988, 1999), a caring occasion is the moment (central point in time and space) when the patient and the nurse come as one in such a way that an instance for human caring is formed. Both persons, with their exceptional and phenomenal fields, have the likelihood to move toward together in a human-to-human contract. The one being cared for and the one caring for are predisposed by the actions and choices decided within the affiliation. For Watson (1988, 1999), a unique field correspond to the person’s frame of orientation or the entirety of human experience consisting of bodily sensations, feelings, spiritual beliefs ,thoughts, goals, environmental considerations, expectations and meanings of an individual’s perceptions, all of which are based upon one’s present moment, and one’s anticipated future. Not just a goal for the cared for, Watson (1999) insists that the nurse as well needs to be conscious of her own awareness and genuine attendance of being in a caring instant with his/her patient. Furthermore, in cooperation, the one cared for and the one caring can be predisposed by the caring moment throughout the actions and choices decided inside the relationship, thus, influencing and becoming a fraction of their own life history. The caring event becomes transpersonal when it permits for the occurrence of the spirit of both, then the occasion of the moment expands the restrictions of openness and has the capability to increase human capacities (Watson, 1999). Nursing can enlarge its obtainable role, long-lasting to make offerings to health care inside the contemporary model by developing its opening health strengths and caring healing that have always been in attendance on the edges (Watson, 1999). Nursing is a caring profession that is privileged as the spirit-filled, spiritual practice that it is. I deem it is a mission for a particular spiritual human being who cares about the spirituality of other persons. The humanistic nature of nursing is reflected in the caring replica. Caring is the innermost concept in the discipline of nursing. Caring may seem simple, but it entails these many aspects and it takes a lot of effort to render this, especially to people who we don’t even know. It’s easier to diagnose a patient and just prescribe some medications; it’s another story when you try to have a deep relationship with a patient while still upholding your profession. Doctors leave it to the nurse to care for the patients, because nurses are the ones who have an encounter with them 99% of the time. They are the ones who know the patients condition, even their emotions at times. Moreover, not all patients are considerate and thankful for a nurse’s efforts. Nurses must keep their moods up and not be affected by the ups and downs of their tiresome profession. At the end of the day, they still hold their faces up high and continue caring for every other patient they will be encountering in the future. Caring entails love and loving is not an easy thing to do. It is said that while a nurse enters into a patient’s room, a compelling field of expectation is produced. In this deeper, more stretched out way of thinking about the power, energy, and beauty of love, a caring moment (Watson, 1999b) becomes a vibrational field of cosmic love full of life that radiates mutuality and reciprocity, which transcends space, time, and physicality sustaining and confirming our humanity and our association with the Levinas. The infinity of the whole universe (Quinn, 1992). This ethic of caring and loving becomes the first philosophy for sustaining and facing the infinity of the nursing profession. If nurses follow this ethical order, nursing has a serious role in moving humanity in the direction of the omega point, ever closer to God and the unexplained blessed circle of loving, living, dying, trusting, and being. Lastly, a quote to ponder on the care illuminated by the nursing profession in contrast with that of medicine: â€Å"The heart is as broad as the sky, because it can embrace joy and pain side by side. † Even in the midst of hard to deal with patients, nurses still choose to care.

Chinese Face Reading Essay

Picking up personality can be a very fun and adventurous process. Many cultural societies have many ways to do it and so many people to test; you’re never going to get the same results. One very interesting way of determining someone’s personality is Face Reading. This is a type of physiognomy that can show you your hidden personality, history, current situation, your future, even how well your health is. Face reading was developed from Ancient China by a man known as Mr. Guiguzi (481-221 B. C. ). Although it is one of many ways of measuring personalities, face reading has twelve ways of being used. The first method is called Fortune House, or also known as â€Å"Fude Gong†. This method shows whether your life is going smoothly or not. When reading someone’s face with Fortune House, the face should be round and smooth with no markings or scars that are out of the ordinary. If there happens to be any marks or scars, they will show any issues you have, such as illness, bad relationships, financial troubles, etc. The second method of face reading is Parents House, or â€Å"Fumu Gong†. It tells you whether you had a good or not so good childhood with your parents. This procedure reads the face by its forehead. If it is big, round and/or shinning, means the individual had an excellent relationship with his parents and had an enjoyable life as a child. However, if the forehead was ugly and/or damaged, then the person had a painful and difficult life when he/she was young. The next way is called Career House, or also known as â€Å"Guanlu Gong†. This method is somewhat similar to the Fortune House because it is searching for round and smooth features on a face as well. If your cheek bones stick out and have eyebrows that project, you will most likely have a better chance of having a successful career. House of Travel, or â€Å"Qianyi Gong†, would be another style of face reading someone. It is designed to examine how your travels from one place to another would be positive or negative. When you have a feature of scars or lines on your face, means you shouldn’t go anywhere at all. So whenever you would like to go out to eat at a restaurant and need to drive or take a bus, it might be safer to have a pizza delivered to where ever you are staying. Another method is Assets House (Tianzai Gong), which emphasizes the eyes as an indicator of your intelligence, temperament, and financial assets. If your eyes are set deep into your head, or if you are constantly looking high, you are considered an idiot. Narrow eye lids would represent impatience in an individual. Large pupils, clean and clear whites, and large eyes are favorable characteristics of a person’s Assets House. Health House (Jie Going) governs whether your body has excellent health or is ill. Wrinkles, stains, or other marks anywhere that is found shows that you need to go to the clinic for a checkup. However, having none of the disliked features on the face means you have nothing to worry about when it comes to your health. Any characteristic from the eyebrows and above will symbolize House of Siblings (Xiongdi Gong). This particular type of face reading decides your friendship with other people in your life. It also shows how well your genetic make-up is when the person was conceived. Thick, dark, long, and smooth eyebrows that are high above eyes tell the face reader that the subject is a brave, affectionate, and relaxed person. However, if your face shows the opposite of these facial features including scars and lines, you basically have completely different qualities. Life House (Ming Gong) will tell the person how easy or challenging your life would be. The level of difficulty in your life is determined by how close the eyebrows are to each other, and any dimples and/or marks. If smooth and shinny like the other face reading styles, shows a comfortable an easy journey in his/her life. Like the other face reading methods, House of Children (Ernu Gong) looks for smooth and round features for positive outlook in the individual. If the face seems to be gentle and round, shows that you have a successful love and sex life. Although, if you show moles or other disfeatures, you may have issues when it comes to sex and you may have a difficult time parenting your children in regards to their development and well-being. House of Marriage (Qigie Gong) shows the reader whether or not the man/woman’s marriage is going well. So fundamentally, when somebody has a gentle, smooth, and clean face, it indicates a happy marriage. A receding and/or scarred face with moles means you have a wife that you might wish to divorce. Wealth house (Caibo Gong), is quite different from most of the other Houses. This style of face reading is determined by the nose. If a nose that is large and round with nostrils that does not show and a straight bridge, then the person has excellent health, a positive attitude, and has a sufficient and satisfying amount of wealth. When the nose has certain deficiencies, the person will meet these three possible situations. If the subject is to have a crooked nose with unhidden nostrils, shows that they have a problem with their money, career, and personality. If it shows any blood vassals, indicates that he/she is on the verge of becoming bankrupt. And if the nose turns into a bloody red, it signals that tragedy and an unpleasant life will be stepping up to his/her door soon. Finally, the Popularity House (Nupu Going) is the house that governs your relationship with your friends and acquaintances, and what will come to be when you grow much older. When the face is round and smooth, then the individual is graced with popularity, and when the old age comes, you will have much support from others. But, if it is not round or smooth, you need to prepare yourself for supporting yourself instead of others helping. An excellent example of some of these face reading methods is a well known person, Quasimodo, also named as â€Å"The Hunchback of Notre-Dame†. He is a man with a face that most people would not be attracted, and is definitely unable to straighten his back. His facial features show how much his life is painful. They also show how he has had a rough and emotional time growing up when he was an infant. A disfigured face brings you nothing but negativity and misery in that person’s life. But having attractive facial features will always give you the upper-hand when reading an individual’s face. All the styles of face reading are determined by how smooth the face is, the amount of scars, lines, moles, shape of the nose, and wrinkles the face has. Each feature of the face tells about your past, what is happening now, and what is yet to come.

Best Candidate to be U.S. President Essay Example | Topics and Well Written Essays - 2000 words

Best Candidate to be U.S. President - Essay Example He has continued to make such significant and deep speeches and has even been combined it with solid character. One cannot ignore such an aspect of leadership because no matter how good a president's policies are, at the end of the day, he/she needs to communicate them to the public and convince them why those policies should be implemented. History has shown how leaders like Winston Churchill and Adolph Hitler were able to move crowds to action. Presidents with good oratory skills may motivate their citizens to work harder and contribute towards the development of their economy. (Somerset, 2008) Some of Obama's rivals have claimed that this is something that should not be considered since they feel that greater precedence should be given to policies. However, this argument holds no water because Obama has both aspects; oratory skills and concrete ideas. One of the most outspoken candidates and rivals to Obama; Clinton keep on claiming that Senator Obama has no experience in politics generally and in the United States parliament specifically. However this is very invalid statement because of the following reasons; First of all, Senator Obama has served for seven years as Illinois Senator. When one compares this to what President George W. Bush had before his election, this exceeds Bush's years by five. Even his main democratic rival has nothing on him. If voted into office, he will have three years more experience than her. It should also be note that the issue of experience has only been considered as a point by Hillary Clinton. No other presidential candidate has highlighted the issue of lack of experience aside from her. Racial issues Some stereotypes have argued that American citizens will never accept an African American for president. But this is a far cry from where the American State has emerged. Gone are the days when African Americans were considered as subordinate to the 'white' American. Those issues were addressed adequately in the 1964 Civil rights movements that saw the elimination of all discriminative issues. While one must not ignore the fact that race is still an issue in the US, it is highly unlikely that this will the main issue driving the election. Polls have shown that the racial issue carries a very small percentage among priority lists for voters. (Hutcherson, 2008) It should also be noted that there are also other issues in other presidential candidates that would cause potential sources of bias. For example, Hillary Clinton is also not your 'typical candidate' simply because she is a woman. The New Mexico Governor was happens to be a Latin American and still stood for the presidential race. Therefore proponents of this argument would eliminate almost all presidential candidates since there is something about them that renders them unconventional. The United States electorate is more interested in the best and most qualified person for the job and not how they look like. Such biases are more of side shows than the real deal. Bi partisanship Senator Barrack Obama is one leader who has the ability to reconcile two major differing parties or issues. The nature of the American State is that most individuals are quite opinionated yet democratic at the same time. There is no room for imposition of rules or policies without consultation and

Training and development in Human Resources Management (HRM) Essay

Training and development in Human Resources Management (HRM) - Essay Example On the similar context, development can be described as the process of attaining adequate knowledge as well as skills that might be utilised even in the future (Fitzgerald, â€Å"Training Versus Development†). Thus, development process prepares the human resources to take up further responsibilities in the future. Training and development program in an organization ensures that the skill development and up-gradation of its employees are carried-out in a structured process. It is essential for organizations in the current day context to properly train as well as develop their employees for the improvement of their business performances. This is because regular augmentation of the skills and proficiencies of the employees is necessary for developing innovative approaches for the production of new products and services in the organization (Haynes & Fryer, â€Å"Human Resources, Service Quality and Performance: A Case Study†). Thus, training and development of employees per forms an important role in the creation of innovation in the organization and also in bringing about positive organizational changes. Moreover, the training and development component of HRM plays a significant role in the succession planning of an organization. ... In the present research paper, the scope and dimension of training and development process will be attributed to a situation where the process is required to be implemented upon a newly recruited first line supervisor in a paper company, Jay Inc. The process will be imparted upon the newly recruited employee by the one previously holding the first line supervisor’s position and has now been promoted as store manager. The various required issues that will be essential for the promoted employee in order to impart training to the newly recruited employee will be discussed widely in this research paper. Job Analysis and Job Description Job analysis and job description are two of the most essential interconnected operations in an organization. Information about a job is collected through the process of job analysis, the findings of which are compiled in a job description. For the efficient creation of a job description, it is essential that the extent of information about the job i s kept large and wide. However, the information quality is the greatest determinant of the successful accomplishment of job analysis and job description. The collection process of information should be concentrated upon collecting realistic and accurate data. In this regard, the job incumbents are the most appropriate provider of information (American University of Beirut, â€Å"Job Analysis and Description†). Hence, in the case of Jay Inc, crucial information about the job details of first line supervisor can easily be gathered as the task has been provided to the employee who was in the same position, a few days earlier. The main task of the first line supervisors is to direct workers in the

European Penal System Essay Example | Topics and Well Written Essays - 3000 words

European Penal System - Essay Example Government became a symbol of law enforcement and maintaining order. Offenders, if apprehended, will be judged through the penal system. Throughout European history, the plethora of apolitical uprising has challenged the European penal systems throughout the continent. These insurrections challenged the penal system in its law enforcement policies, judicial processes, protection of parties afflicted, and integrity. The European governments made amends to their rudimentary policies and strived to not make biased judgments on certain ethnic coterie. In this composition, the history of European penal systems and governments will be analyzed in how victims are treated after their spats with perpetrators. Also, in this essay, there will be analysis of past cases of government malfeasance toward victims and the flaws in European penal systems. A victim is 'a person who has suffered direct, or threatened, physical, emotional or pecuniary harm as a result of the commission of a crime; or in the case of a victim being an institutional entity, any of the same harms by an individual or authorized representative of another entity. Group harms are normally covered under civil and constitutional law, with hate crime being an emerging criminal law development, although criminal law tends to treat all cases as individualized.' (Hans Von Hentig) Scholars tried to understand the relationship the victim and the offender or 'the killer and the killed.' (Robert J. Meadow, pg. 15) Hans Von Hentig was a connoisseur in the early victimisation theory in the 1940s. He established a hierarchy of types of victims being afflicted. Hentig categorized them using personal factors linked with victimisation such as social, psychological, or biological reasons. A few of these categories will be utilised and elaborated upon in conjunction with certain relevant episodes in history. One group that has been particularly victimised is children. In Hentig's first type of victim are represented in the young. They happen to be easily victimised due to lack of maturity and their vulnerability. Hentig suggested that children are usually subject to violent crimes and sexual offenses. (Meadow, pg.13) Young women are docile and lack the physical strength to withstand an attack from a masculine offender. This is the case primary victimisation, a process in which one person is affected in crime. Domestic violence is also cases where primary victimisation occurs. The European Penal system made concessions against crime such as these and was not lackluster in prosecuting rapists, paedophiles, thieves, and murderers. Victimizers as such were put away from law abiding gesellschaft. The elderly can fall victims to such predators. The elderly represent the third type in Hentig's victim classification. Europe's penal system has made dire efforts to eradicate child trafficking. Those who peddle children for money or subjugate them as slaves are vehemently prosecuted. However, despite the efforts of European law officials who use litigation to mitigate child trafficking, it seems futile because children who are victimized are not convinced that the government is on their side. I commend the organizers of this meeting for recognizing the synergy between the prosecution of traffickers and the protection of victims,

High school Research Paper Example | Topics and Well Written Essays - 1000 words

High school - Research Paper Example There are various phases in a person’s development and growth which are more memorable than others. For some, high school life is the most endearing due to the new relationships and experiences that occur at the opportune time. As adolescents explore the world and develop strong bonds with friends and teachers, it is recognized that level and depth of relationships differ according to formal or informal structures (Chapter 4: School and Classroom Environment). With regard to student-teacher relationships, some students have formal relationships with teachers, and some of them have informal relationships with teachers. Formal relationships between students and teachers exist when communication patterns and lines of authority are clearly established and enforced. As defined, formal structures observe â€Å"sets of rules and regulations that define the relationships between people and tasks, and determine the distribution of power† (Capra 104). In formal relationships, there are evident boundaries and communication is made on a professional manner. The manner of speaking, words chosen, topics of conversation are formally structured and focus mainly on academic performance and progress of the student. Likewise, even the way professors dress or be addressed by title affects the way students apparently perceive relationships as strictly formal (Sebastian and Bristow).

Developing a Conceptual Framework is an Impossible Possibility Essay

Developing a Conceptual Framework is an Impossible Possibility - Essay Example According to the paper the financial statements of different companies must be able to satisfy the needs of a variety of users who mostly want to compare one company with another. When a standard is followed by all the companies, the financial statements become reliable for the users as they can safely compare all the companies and make important financial decisions. Accounting, therefore, entails a statement of accepted accounting rules. These rules form the structure of reference for the financial reporting. The conceptual framework forms the foundation for expansion of new accounting criteria and the assessment of those standards that are already in place. Further, it forms the basis for establishing which events should be accounted for and how the same should be released to the accountants. Functions of conceptual framework Conceptual framework lays out the objectives of the financial statements. Financial statements are meant to reflect the financial standing of institutions. Co nceptual framework of accounting therefore offers the foundation and the guidelines that should be followed to reveal the economic situation of an institution at a given period of time. Financial statements include the balance sheet, the income statements, statement of cash flow and the statement of shares holders’ equity. Conceptual framework also identifies the qualitative characteristics which establish the importance of the information in the financial statements. Financial statement reveals the financial situation of an institution; they are very important for the stakeholders of the institution. Shareholders and other interested parties in an institution are guided by the financial information of that institution From this discussion it is clear that the conceptual framework offers guidelines to framing of financial statements. Conceptual framework requires the financial statements of a company to provide a true and fair view. This means that all the information provide d in the financial statements must be free from fraud or material misrepresentation. The framework requires the financial statements to have four qualitative characteristics which ensure that they give a true and fair view of an entity’s financial position. Firstly, the statements need to be understandable which means that they must be free from any ambiguity that might mislead a user. Secondly, the financial statements need to be relevant. Information is relevant when it is able to influence the economic decisions of the users. It should be predictive in the sense that a user must be able to make reliable predictions about an entity’s future by using the information. It must also be confirmatory which is achieved when it confirms the previous predictions of users regarding an entity. Thirdly, the information needs to be reliable. Information that is free from material errors and bias is regarded as reliable. Reliable information is faithfully represented, neutral, pru dent, and complete and substance is given priority over legal forms of various elements.  

When an American Meets an Arab Essay Example | Topics and Well Written Essays - 1250 words - 1

When an American Meets an Arab - Essay Example Moreover, I also intend to evaluate these experiences of mine in the light of the knowledge and insights extended by the theorists like Hofstede and Hall. I would specifically like to narrow my personal experiences around the communication approaches and the accompanying differences that turned out into a mutually funny and humorous situation, when we had the first meeting with a group of US business delegates, at UAE. I worked as a junior manager with a UAE based Telecom Company. From the very start, it was obvious to me that our guests were not conversant with the Arab cultural orientation. Things were not so conducive on our side also. Most of our managers were expecting the Americans to be straightforward, task-oriented and punctual, based on the cursory experiences they had acquired on their short vacations to the US (Klein & Kuperman 2008). The meeting took place in a hotel and the initial interactions were marked by the customary exchange of pleasantries. Our team comprised of seven members with a senior manager acting as the team leader, while the American delegation comprised of six people, two of which were women. The meeting was meant to discuss the issues pertaining to a proposed technological collaboration between the two firms. The American head extended his hand to our senior manager and I must say his handshake was firm and strong. In contrast, our manager’s handshake was gentle and prolonged. It was obvious that the guest intended to end the handshake, but our manager kept on gently holding his hand for a few more seconds while exchanging courtesies. The consternation was quite obvious on the faces of our guest and the American delegates. To me who was aware that the Americans doubted the sexual orientation of my manager, going by his prolonged and gentle handshake, it was getting difficult to hold laughter.

OPPORTUNITIES AND CHALLENGES IN MOBILE SERVICES Research Paper

OPPORTUNITIES AND CHALLENGES IN MOBILE SERVICES - Research Paper Example Programs in the connected mesh do not interfere with each other, that interference general case for mobile media. Challenges and Opportunities Conflicts connected mesh conceives characteristics of mobile media. Consequently, the mobile systems bear from reduced flow, dead zones, as well as encouraging mobility is not enough. Characteristics of mobile systems may all appear awful at the start glimpse, but a new viewpoint, displays that some of them may be utilized in our favor, but with a new design (Verkasalo 2009). The propagation of mobile telephone boasts an opening to address their need of reliability when the node is a package, it is probable that not less than one close by node obtains, which can then proceed as a next step and drive the packet. This is in stark compare to the present conceive of mobile, where there is one designated by the next jump, and when he did not obtain the bundle, the preceding segment to retransmit. Property is called spatial diversity and has been re vised in the literature. The flow of mobile systems today is very awful, and we recount here the architecture round mobile mesh cipher can assist to advance throughput. Intuition that mesh cipher raises the flow of going, because cipher permits routers to compress the data conveyed given what is renowned in distinct nodes. Mobile users can now get access to data anytime and anywhere. Mobile advocating, retail, and the game are very well liked, and little by little affray between providers of mobile services becomes cruel (Allen 2003). Thus, some service providers to customize the content personalization expertise to its users. This item discovers the possibilities and trials in utilizing expertise personalization in m-commerce. The argument over the effectiveness of personalization and technological constraints and privacy inspire us to aim assemblies with mobile users, and discover the possibilities and trials of personalized mobile services. M-commerce is the buying and trading it ems and services by mobile devices. In supplement to retail, there are submissions for mobile advocating and mobile games. According to (Smura Kivi and Toyli 2010), only 16% of the half a billion Internet users were international mobile Internet users in 2001, and the percentage expanded to 57% of the 1.5 billion Internet users in 2007. Without a question, the m-commerce becomes relevant. Distribution of mobile submissions founded on these medium has become a "focal point" rudimentary services of the company. Recent improvement in mobile expertise space, for example international positioning schemes (GPS), mobile operators can work out the position of the mobile medium inside a couple of meters. Previous study contends that such likelihood with information of the position, the mobile conduit presents businesses with more intriguing agreements and sales possibilities that the world broad web conduit is doing (Verkasalo 2008). Using the benefits of mobile business, the inquiry of what lies deep in the minds of mobile mesh operators: what is this location, content will be delivered? With expanding clientele anticipations, without a question, the note is a universal set about is not strategic. Customers favor customized or even personalized services. Adaptation of the content on locations users (and even their preferences, enterprise goals and context) is required to accomplish enterprise possibilities in m-commerce.